TEEM LABORATORIES LIMITED ANNUAL REPORT 2002-2003 DIRECTOR'S REPORT Your Directors have pleasure in presenting their EIGHTEENTH ANNUAL REPORT AND AUDITED STATEMENT OF ACCOUNTS of the Company for the year ended 31st March 2003. FINANCIAL RESULT 31st March 2003 31st March 2002 Rs. Rs. Operating Profit (-) 94,422 (-) 5,41,577 Less: Provision for taxation Nil Nil Less: Depreciation Nil Nil Profit/(Loss) for the year (-) 94,422 (-) 5,41,577 Add: Deficit from previous year 9,871,825 9,330,248 Balance carried forward 9,966,247 9,871,825 DIVIDEND The Board of Directors have not recommended any dividend. OPERATIONS : The Management successfully negotiated and settled all the DUES of Bank of Baroda against their claim of Rs.3.65 Crore In the Debt Recovery Tribunal. The Board also issued 2,50,000 shares to the short term lenders as per Special Resolution adopted at the previous Annual General Meeting. "the management is examining various options to enhance shareholder value by liquidating the Inventories which are losing their value and reducing Sundry Debtors. LISTING OF SHARES Equity Shares of the Company are listed with the Bombay Stock Exchange and the listing fees have been paid. DEPOSITORY SYSTEM Your Company's shares can now be traded only in demat form and necessary arrangements have been made with M/s. N. S. D. L. and M/s C.D.S.L. FIXED DEPOSITS There are no fixed Deposits. PARTICULARS OF EMPLOYEES There are no employees of the Company. As such no particulars are furnished under Section 217 (2A) of the Companies Act, 1956. AUDITORS M/s. Jitendra Chandulal Mehta & Co., the retiring auditors are eligible for reappointment DIRECTORS Smt. N. G. Mehta, Director, retires by rotation and being eligible offers herself for re-appointment DIRECTORS' RESPONSIBILITY STATEMENT As stipulated under Section 217 (2AA) of the Companies Ad, 1956, your Directors confirm as under. 1. In the preparation of the annual accounts for the financial year ended 31st March 2003, the applicable accounting standards have been followed and there has been no material departure. 2. The Directors had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the Financial Year and of the loss of the Company for that period. 3. The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. 4. The Directors had prepared the Annual Accounts on a "going concern" basis. ACKNOWLEDGEMENT The Board acknowledges the support given by the Shareholders and looks forward for their continued support. On behalf of the Board of Directors of TEEM LABORATORIES LIMITED Mumbai G.U. Mehta Dated : 07-08-2003 Chairman ANNEXURE I Particulars of the Conservation of Energy, technology absorption and foreign exchange and outgo s per Section 217 (1)(e) of the Companies Act, 1956 and the rules made therein and forming art of the Directors' Report for the year ended 31st March 2003 Conservation of Energy : A. Power fuel and water Consumption 2003 2002 1. Electricity a. Purchased Total Amount Nil Nil b. Own Generation I. Through Diesel Generator Nil Nil II. Through steam Turbine/Generator Units Nil Nil 2. Coal Nil Nil 3. Furnace Oil & LSHS Nil Nil 4. Water Nil Nil Quantity ('000M) - - Total Cost (Rs.) - - Rate/m (Rs.) E. CONSUMPTION PER UNIT OF PRODUCTION From the Records and other books maintained by the company, it is not possible to give the information required as per format for the Current and Previous years. SAFETY The Company continued to accord high priority to the Health and Safety of its employees and the safety of the community. Employees are adequately trained, equipped and instructed to perform their duties in a safe and effective way. II. Technology Absorption : Nil Nil III. Foreign Exchange Earnings: Nil Nil