ANNUAL REPORT 1999-2000
KERRY JOST ENGINEERING LIMITED
To our Shareholders
In spite of all our best efforts It has not been possible to sustain our
business economically due to poor business prospects, lack of orders and
non availability of funds for working capital, among other9. As such we
were forced to suspend manufacturing operations at our Ambattur factory in
Chennai with effect from 31st December 1999. It has been an unpleasant and
hard decision made under trying circumstances but it appeared to be the
only alternative as no further resources were available to continue
The optimistic situation that had been visualised just over a year ago did
not materialise but on the contrary the engineering industry particularly
suffered further setbacks. Moreover, the economic growth contemplated by
the current year's budget did not take place and the Company's operations
consequently were adversely affected.
As a result of the suspension there were obviously difficult situations,
the most important of which were how to deal with labour and our customers.
After protracted negotiations in the current financial year a settlement
has been arrived at with the workers whereby a mutually agreed figure of
compensation was paid to all the workmen resulting in an amicable
During this negotiating period no work was being done in the factory due to
the disrupted situation and it was therefore not possible to complete our
accounts within the statutory period. An attempt has also been made to
complete outstanding orders wherever possible.
Even though all attempts have been made to collect dues to the Company, a
significant amount still remains outstanding but efforts in this connection
As a result of these events the 1099 for the year amounts to Rs.133 lakhs.
The future course of action is yet to be determined but efforts to preserve
shareholders' value will be made.
It is unfortunate that unavoidable circumstances have brought the Company
to this situation and shareholders will be informed of further events as
they take place.
B. H . Reporter
Mumbai, 29th November, 2000.