WESTERN INDUSTRIES LTD.,
ANNUAL REPORT 2000-2001
Your Directors have pleasure in presenting the Sixth Annual Report and the
Audited Statement of Accounts for the year ended 31st March 2001.
Despite the adverse business conditions, your Company recorded an
impressive turnover of Rs.2003.00 lakhs compared with Rs.1601.66 lakhs in
the previous year. The net profit decreased from Rs.51.93 lakhs to Rs.45.18
Lakhs. The Company has added more veterinary products to its product line
and the production facilities have been geared up to core - up with the
increased production. The Company has also appointed super distributors, C
& F Agents and dealers in various states to sustain the increased volume of
Your company has started exports to Bangladesh this year and already made
exports to the tune of Rs.8070615.00 upto 31.03.2001 and expecting
substantial increase of exports in the next year.
Your Company has not invited any deposits from the public for the year
under review within the meaning of Section 58A of the Companies Act, 1956
and the rules made there under.
The observation of the auditors are explained, wherever necessary, in
appropriate notes to the accounts.
Smt. C. Bhagyalakshmi, Director of the Company will retire by rotation at
the ensuing Annual General Meeting and being eligible, offers herself for
During the year, Shri J.V.Babu Rao, Shri K.Seshnarayan and Shri B.Prabhu,
were appointed as Additional Directors of the Company by the Board in terms
of Section 260 of the Companies Act, 1956. They holds office till the
conclusion of the forth coming Annual General Meeting of the Company. The
Company has received notices in terms of Section 257 of the Companies Act,
1956 for appointment of Shri. J.V. Babu Rao, Shri. K.Seshnarayan and Shri
B.Prabhu, as Directors liable to retire by rotation.
At the Board Meeting held on 1st April 2001, Shri. K.Seshnarayan was
appointed as whole-time Director (Director Marketing) of the Company for a
period of 5 years with effect from 1st April 2001.
During the year, Shri S.Ravi Subramanyam resigned from the post of
Directorship of the Company. Your Directors place on record their
appreciation for the service rendered by Shri S.Ravi Subramanyam.
M/s Allamsetty & Co., Chartered Accountants, Auditors of the Company retire
at the Annual General Meeting and are eligible for re-appointment, Members
are requested to re-appoint them and to authorize the Board to fix their
As the shareholders may be aware, the securities and Exchange Board of
India (SEBI) has formulated a code of Corporate Governance to be
implemented by listed companies. Pursuant to this, the Stock Exchange,
Hyderabad, where the shares of your Company are listed, has introduced a
new clause 49 in the Listing Agreement providing the compliance with the
code. In the case of your company, the code would be required to be
implemented w.e.f. 1st April, 2002.
The Company is in the process of progressively implementing the various
compliance requirements of the code.
Through the Companies Act,2000 a clew section 292A has been introduced for
appointment of Audit Committee. Your Directors are happy to inform you
that, as a measure of good Corporate Governance, the Company had formulated
an audit subcommittee on 01.04.2001.
The Present composition of the Audit Committee is as follows
Shri. C. Balasubramanyam
Shri. J.V. Babu Rao
Shri. B. Prabhu
DIRECTORS RESPONSIBILITY STATEMENT AS REQUIRED UNDER SECTION 217 (2AA) OF
THE COMPANIES ACT, 1956:
In compliance of Section 217(2AA), as incorporated by the Companies
(Amendment) Act, 2000, in the Companies Act, 1956, your Directors confirm
a). That in the preparation of the accounts for the financial year ended
31st March, 2001 the applicable accounting standards have been followed
along with proper explanation relating to material departures.
b). That the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that were 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 profit or loss of the
Company for the year under review:
c). That the Directors have 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;
d). That the Directors have prepared the accounts for the financial year
ended 31st March 2001 on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE:
Information on conservation of Energy, Technology Absorption, Foreign
Exchange Earnings ;end outgo required to be disclosed under section 217(1)
(e) of the Companies Act, 1956, read with Companies (Disclosure of
particulars in the Report of the Board of Directors) Rules, 1988, are
provided as under :
a). Conservation of Energy: The Energy is being utilized optimumly.
b). Technology Absorption
i) Research and Development (R&D): The Company is making constant efforts
to improve the quality of its products.
ii) Technology Absorption: The Company is making all out efforts for
improving productivity and product quality and reducing consumption of
scarce raw materials and fuels.
c). Foreign Exchange Earnings & Out Go:
Foreign Exchange earnings : Rs.30,04,427.00.
Foreign Exchange Outgo : NIL
Your Directors are pleased to record their appreciation of the sincere and
dedicated services of the employees and workmen at all level.
Your company has no employees whose salary exceeds the limits prescribed
under section 217(2A) of the Companies Act, 1956. Hence the information
required under the said section, read with Companies (Particulars of
Employees) Rules 1975, has not been given in this report.
Listing Equity Shares of your Company continue to be listed during the year
under review at (a) The Hyderabad Stock Exchange Limited, 3-6-275,
Himayatnagar, Hyderabad -500029; (ii) The Stock Exchange, Mumbai, Phiroze
Jeejeebhoy Towers, Dalal Street, Fort Mumabi - 400001; (iii) The Madras
Stock Exchange Association Limited, Exchange Building, Post Box No. 183,
11, Second Line Beach, Chennai-600001. The Company had paid the Annual
Listing fees for the year 2000-2001 to the Hyderabad and Mumbai Stock
The Directors thank the Company's Banker's. Employees and officials of
concerned Government Departments for their cooperation and continued
support to the Company.
For and on behalf of the Board of Directors
Chairman & Managing Director.
Date : 23.08.2001