Mar 31, 2014
The Members,
The Directors hereby present the Twenty ninth Annual Report of the
Company for the period 1st October, 2013 to 31st March, 2014.
SUMMARISED FINANCIAL RESULTS
(Rs. in Lacs)
During the period ended
31.03.2014 30.09.2013
Sales and other income 0.00 18.79
Profit/Loss before amortisation, -6.57 8.42
and depreciation
Less: Amortisation 0.00 0.00
Depreciation 0.00 0.00
Profit/Loss before Tax -6.57 8.42
YEAR UNDER REVIEW
During the current period under review Company''s Modified
Rehabilitation Scheme was cleared by the Hon''ble Board of Industrial
& Financial Reconstruction. Having settled all the Institutional Dues
in the previous year itself we have now embarked on the path of
settling the statutory dues in a phased manner. Simultaneously we are
working full throttle on the refurbishing and repair of the plant and
equipment which have since been installed post relocation. Clearances
from various agencies are being reactivated and the plant should get
energized from the local utility soon. Most of the repair and trial
work is being done through temporary power connection and in-house
captive power.
OUTLOOK FOR THE CURRENT YEAR
Machines and equipments which have been virtually idle for over nine
years take some doing to get them up and going. And this exercise would
eat into the better part of the current year before we could take up
any serious trial runs. Market-wise we do not see any major impediment
in re-establishing ourselves. Our initial feelers in the PCB market and
also to our old customers has met with encouraging results. DIVIDEND
In view of carry forward losses, no dividend payout for the period
under review is being recommended.
DIRECTORS
During the period since last report, Mr. R.K. Mehra, one of the
promoter directors passed away on 08.11.2013. At the outset your
Directors would like to record their deep appreciation for the valuable
services and guidance rendered by Mr. Mehra during his tenure as
Director of the Company. Your Directors also record condolences on the
passing away of Mr R. K. Mehra and the Linaks'' family offers its
commiserations to his grieved family.
Further during the period since last report, Mr. Pradeep Kumar resigned
from the Directorship of the Company w.e.f. 30.05.2014. Your Directors
would like to record their deep appreciation for the valuable services
and guidance rendered by Mr. Pradeep Kumar during his tenure as
Director of the Company.
Moreover, Mr. Siddharth Singh and Dr. Gautam Singh are persons, who
have been longest in the office since the last appointment of Directors
and in terms of the provision of the Companies Act as determined by lot
the terms of their offices are liable to retire by rotation at the
forthcoming Annual General Meeting. However, they are eligible for
their reappointment.
AUDITORS
You are requested to appoint auditors for the block of three years
2014-15 to 2016-17, pursuant to the provisions of Section 139 of the
Companies Act, 2013 and the Rules made thereunder, and fix their
remuneration. The retiring auditors M/s S.R. Gupta & Co., Chartered
Accountants, Kanpur are eligible for reappointment and have given their
consent and also furnished certificate as required under the Companies
Act.
ACCOUNTS AND COMMENTS IN THE AUDITORS'' REPORT
The points referred to by the Auditors in their report are self-
explanatory and/are covered in Note on Accounts, especially Note No.
3(i) to (iv) of the Notes on Accounts.
SECRETARIAL COMPLIANCE CERTIFICATE A copy of the Secretarial Compliance
Certificate issued by M/s Rajeev Kumar & Co., Company Secretaries,
Lucknow in whole-time practice pursuant to the Proviso to Section
383A(1) of the Companies Act, 1956 is annexed hereto and forming part
of this report. CORPORATE GOVERNANCE
Your Company has already implemented the requirement of Clause 49 of
the Listing Agreement i.e. Corporate Governance. As required a
Management Discussion and Analysis Report and Directors'' Report as
well as Auditors'' Certificate on Corporate Governance are given
alongwith this report.
AUDIT COMMITTEE
The Audit Committee is being restructured after the demise of Mr. R.K.
Mehra and resignation of Mr. Pradeep Kumar. The Committee performs such
functions as are required in terms of Clause 49 of the Listing
Agreement with the Stock Exchanges.
DEMATERIALISATION OF THE SHARES OF THE COMPANY
Trading in shares of the Company has been made compulsory in
dematerialised form w.e.f. 28.09.2000 by all investors as per
directives given by SEBI. Equity Shares of the Company of nominal value
of Re.1/- each are available for dematerialisation under new ISIN
INE028C01027 with CDSL and NSDL.
INFORMATION UNDER SECTION 217 OF THE COMPANIES ACT, 1956:
A. Information in respect of Conservation of Energy, Technology
Absorption and Foreign Exchange Earning and Outgo:
Information pursuant to Section 217(1)(e) of the Companies Act, 1956
read with the Companies (Disclosure of Particulars in the Report of the
Board of Directors) Rules, 1988 relating to conservation of energy,
technology absorption and foreign exchange earning and outgo are as
under:
a. Conservation of Energy:
Due to high power diversity factor in the PCB fabrication process your
Company has opted for fully captive modular generation in units of 125
KVA each. This is providing flexibility of usage thereby keeping the
power consumption low. Other ongoing measures like Power factor
improvement, use of new breed of low wattage high luminescence fittings
etc. have been carried out.
b. Technology Absorption:
i. Research and Development (R&D)
Since the Company does not have any R & D department or have carried
R&D activities, the information in this regard is Nil. However, we do
lot of reverse engineering to develop our own formulations and machine
control circuits.
ii. Technology Absorption, Adaptation and Innovation
MLB technology has been absorbed.
c. Foreign Exchange Earning and Outgo:
Foreign exchange earning and outgo during the year under review were
equivalent to Rs. NIL (previous year Rs. NIL).
B. Particulars of Employees
None of the employees of the Company was in receipt of a remuneration
of Rs. 500000/- or more p.m. if employed for a part of the year under
review or Rs.6000000/- or more p.a. if employed throughout the said
year, the particulars of which are required to be given pursuant to the
provisions of Section 217(2a) of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules 1975.
C. DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956, with respect to Directors'' Responsibility Statement, it is
hereby confirmed:
(i) that in the preparation of the accounts for the financial period
ended 31st March, 2014, the applicable accounting standards have been
followed alongwith proper explanation relating to material departures;
(ii) 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 financial year and of the
profit or loss of the Company for the year under review;
(iii) 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;
(iv) that the Directors have prepared the accounts for the financial
period ended 31st March, 2014 on a Âgoing concern'' basis.
ACKNOWLEDGEMENT
Your Directors record their appreciation to its team of employees for
their unstinted and single minded devotion to the task at hand.
For and on behalf of the Board of Directors
Place: Lucknow (U.B. Singh) (Anil Kumar Singh)
Date : 30th May, 2014 Director Managing Director
Mar 31, 2012
To The Members
The Directors hereby present the Twenty sixth Annual Report of the
Company for the year ended on 31st March 2012.
SUMMARISED FINANCIAL RESULTS
(Rs. in Lacs)
During the year ended
31.03.2012 31.03.2011
Sales and other income 4.01 11.06
Profit/Loss before amortisation. (-) 28.76 (-) 54.18
and depreciation
Less: Amortisation 0 0.00
Depreciation 77.90 78.84
Profit/Loss before Tax (-)106.66 (-) 133.02
YEAR UNDER REVIEW
During the current year we settled the principal OTS dues of IDBI'
PICUP and UPFC and partially that of SBI. The OTS LOI of SB1 was
received as late as Feb 2012 with a payment schedule stretching upto
October 2012 hence it could only be cleared partially. After receiving
the No Dues Certificates from the Institution we would submit a
modified scheme to the hon'ble BIFR for approval. This should happen
sometime in the third quarter of the coming financial year. Meanwhile
we have commenced the maintenance and refurbishing work on the
equipments which were idle for a very long time. All in all we moved on
the charted course during the year without any major hiccups.
OUTLOOK FOR THE CURRENT YEAR
As reported last year India has become a huge player in the European &
US PCB market during the last couple of years and today there are at
least half a dozen units with 100 Crore plus turnover. This trend is
holding inspite of all the slow downs and hope to afford us a smooth
re.entry once we recommence our production.
DIVIDEND
In view of continued losses' no dividend payout for the year under
review is being recommended.
DIRECTORS
Mr. R.K. Mehra and Mr. Siddharth Singh are persons' who have been
longest in the office since the last appointment of Directors and in
terms of the provision of Section 255 of the Companies Act' 1956 as
determined by lot the terms of their offices are liable to retire by
rotation at the forthcoming Annual General Meeting. However' they are
eligible for their reappointment.
AUDITORS
You are requested to appoint auditors for the current year and fix
their remuneration. The retiring auditors M/s S.R. Gupta & Co.'
Chartered Accountants' Kanpur are eligible for reappointment and have
given their consent and also furnished certificate as required by
Section 224(1B) of the Companies Act' 1956.
ACCOUNTS AND COMMENTS IN THE AUDITORS' REPORT
The points referred to by the Auditors in their report are self.
explanatory and are covered in note no. 3 (i) to (ix) of the Notes to
Accounts.
CORPORATE GOVERNANCE
Your Company has already implemented the requirement of Clause 49 of
the Listing Agreement i.e. Corporate Governance. As required a
Management Discussion and Analysis Report and Directors' Report as well
as Auditors' Certificate on Corporate Governance are given alongwith
this report.
AUDIT COMMITTEE
The Audit Committee is Comprising of three independent directors'
namely Mr. Pradeep Kumar. Dr. Gautam Singh and Mr. R.K. Mehra. The
Committee performs such functions as are required in terms of Clause 49
of the Listing Agreement with the Stock Exchanges.
DEMATERIALISATION OF THE SHARES OF THE COMPANY
Trading in shares of the Company has been made compulsory in
dematerialised form w.e.f. 28.09.2000 by all investors as per
directives given by SEBI. Accordingly the Equity Shares of the Company
are available for dematerialisation under ISIN 1NE028C01019 with CDSL
and NSDL.
INFORMATION UNDER SECTION 217 OF THE COMPANIES ACT. 1956:
A. Information in respect of Conservation of Energy' Technology
Absorption and Foreign Exchange Earning and Outgo:
Information pursuant to Section 217(l)(e) of the Companies Act' 1956
read with the Companies (Disclosure of Particulars in the Report of the
Board of Directors) Rules' 1988 relating to conservation of energy'
technology absorption and foreign exchange earning and outgo are as
under:
a. Conservation of Energy:
Due to high power diversity factor in the PCB fabrication process your
Company has opted for fully captive modular generation in units of 125
KVAeach. This is providing flexibility of usage thereby keeping the
power consumption low. Other ongoing measures like Power factor
improvement' use of new breed of low wattage high luminescence fittings
etc. have been carried out.
b. Technology Absorption:
i. Research and Development (R&D)
Since the Company does not have any R&D department or have carried R&D
activities' the information in this regard is Nil. However' we do lot
of reverse engineering to develop our own formulations and machine
control circuits.
ii. Technology Absorption' Adaptation and Innovation
MLB technology has been absorbed.
c. Foreign Exchange Earning and Outgo:
Foreign exchange earning and outgo during the year under review were
equivalent to Rs. NIL (previous year Rs. NIL).
B. Particulars of Employees
None of the employees of the Company was in receipt of a remuneration
of Rs. 500000/. or more p.m. if employed for a part of the year under
review or Rs.6000000/. or more p.a. if employed throughout the said
year' the particulars of which are required to be given pursuant to the
provisions of Section 217(2 A) of the Companies Act' 1956 read with the
Companies (Particulars of Employees) Rules 1975. '
C. DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the
Companies Act. 1956' with respect to Directors' Responsibility
Statement' it is hereby confirmed:
(i) that in the preparation of the accounts for the financial year
ended 31st March' 2012' the applicable accounting standards have been
followed alongwith proper explanation relating to material departures;
(ii) 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 financial year and of the
profit or loss of the Company for the year under review;
(iii) 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;
(iv) that the Directors have prepared the accounts for the financial
year ended 31st March' 2012 on a 'going concern' basis.
ACKNOWLEDGEMENT
Your Directors record their appreciation to its team of employees for
their unstinted and single minded devotion to the task at hand. We are
also grateful to the financial institutions for their patience and
according OTS.
For and on behalf of the Board of Directors
Place: Lucknow (R.K. Mehra) (Anil Kumar Singh)
Date: 30th July' 12 Director Managing Director
Mar 31, 2010
The Directors hereby present the Twenty Fourth Annual Report of the
Company for the year ended on 31st March 2010.
SUMMARISED FINANCIAL RESULTS
(Rs. in Lacs)
During the year ended
31.03.2010 31.03.2009
Sales and other income 9.75 15.48
Profit/Loss before amortisation, (-) 7.96 (-) 7.71
and depreciation
Less: Amortisation 0.00 14.14
Depreciation 78.84 78.99
Profit/Loss before Tax (-) 86.80 (-)100.84
YEAR UNDER REVIEW
This year held out the hope for successful conclusion of the extremely
long drawn out SAC formation by the Government of U.P. thereby removing
the last bottleneck. Little did we realise what was in store for us.
First quarter of the current year saw the resignation of the designated
SAC chairman a major setback. The exercise for substitute nominations
to SAC got further complicated by the decision of the CMs secretariat
to wait for suitable candidates to become available rather than
identifying them from the panel. We again knocked at the doors of the
CM for intervention through a request letter from CII, Northern Region
Chairman in September 2009. Action still pending .
The above non-progress came-up for discussion before the Honble BIFR
bench and our OA conveyed the reasons for tardiness. The Board took a
dim view of the state of affairs and has directed the State Government
Agencies to accelerate matters without delay.
In view of the endless wait and procedural stalemate we have decided to
proactively seek independent settlement with each of the Institutions
separately beginning with those who were in principle agreeable in the
first place. The hitherto pursued option of simultaneous back-to-back
OTS ensured that the Investors exposure was covered by the
simultaneous release of secutity in their favour. In the proposed
alternative we would have to look for ways to overcome the lack of
recourse to the OTS funding entities and the same is being worked out
by us.
OUTLOOK FOR THE CURRENT YEAR
PCB industry worldwide entered a negative cycle post Sub Prime
Recession early 2009 and it is only now that signs of recovery have
started to sprout. India, was never really affected because of its
robust domestic demand and low export dependence. Our post revival
business plan is focused more on quick-turn-around pilot production
niche . The past trend of pre-recession Globalization giving way to
post-recession emphasis on reverse innovation puts
Annual Report 2009-2010
the onus of initiative on countries like India. Hence a good
opportunity for the prepared PCB shops in India.
DIVIDEND
In view of continued losses, no dividend payout for the year under
review is being recommended.
DIRECTORS
Mr. Siddharth Singh and Mr. Pradeep Kumar are persons, who have been
longest in the office since the last appointment of Directors and in
terms of the provision of Section 255 of the Companies Act, 1956 as
determined by lot the terms of their offices are liable to retire by
rotation at the forthcoming Annual General Meeting. However, they are
eligible for their reappointment.
AUDITORS
You are requested to appoint auditors for the current year and fix
their remuneration. The retiring auditors M/s S.R. Gupta & Co.,
Chartered Accountants, Kanpur are eligible for reappointment and have
given their consent and also furnished certificate as required by
Section 224(1B) of the Companies Act, 1956.
ACCOUNTS AND COMMENTS IN THE AUDITORS REPORT
The points referred to by the Auditors in their report are self-
explanatory and are covered in the Notes to Accounts. However, as
regards point no. 2 of the Auditors Report and point nos. (ix)(a) and
(xi) of the Annexure to the Auditors Report are concerned your
Directors have to state as under:
a. Reg. Point no. 2 of the Auditors Report for non-providing of
Interest on Term and Working Capital Loans from financial institutions
and bank, it is hereby submitted that on the Companys Negotiated
Settlement proposal, Honble BIFR has issued Letter dated 16.01.2004 to
this effect. Moreover, interest on unsecured loan from M/s Kala
Holdings Pvt. Ltd. (an NBFC) has not been provided due to pending
dispute. Further, interest an funded CST and UPTT and statutory dues of
PF & ESI has also not been provided as the company has sought extention
of relief in pending DRS before Honble BIFR.
b. Reg. Point no. (ix)(a) of the Annexure to the Auditors Report- It
is submitted that the Companys Negotiated proposal has not yet been
finalized by BIFR and it could not arrange funds. Hence, during the
year under review, due to paucity of funds, the Company could not make
timely payments of the Provident Fund dues and Gratuity Premium.
c Reg. Point no. (xi) of the Annexure to the Auditors Report-
It is submitted that consequent upon the Company becoming a sick
industrial undertaking within the meaning of Section 3(l)(o) of the
Sick Industrial Companies (Special Provisions) Act, 1985, your
Directors made a reference under SICA to BIFR in Nov98. A Negotiated
Settlement proposal is under active consideration of Honble BIFR and
still awaiting decision of State Government after the recommendations
of Settlement Advisory Committee on concessions and waivers are
received.
CORPORATE GOVERNANCE
Your Company has already implemented the requirement of Clause 49 of
the Listing Agreement i.e. Corporate Governance. As required a
Management Discussion and Analysis Report and Directors Report as well
as Auditors Certificate on Corporate Governance are given alongwith
this report.
AUDIT COMMITTEE
The Audit Committee is Comprising of three independent directors,
namely Mr. Pradeep Kumar, Mr. R. K. Mehra and Dr. Gautam Singh. The
Committee performs such functions as are required in terms of Clause 49
of the Listing Agreement with the Stock Exchanges.
DEMATERIALISATION OF THE SHARES OF THE COMPANY
Trading in shares of the Company has been made compulsory in
dematerialised form w.e.f. 28.09.2000 by all investors as per
directives given by SEBI. Accordingly the Equity Shares of the Company
are available for dematerialisation under ISIN INE028C01019 with CDSL
and NSDL.
INFORMATION UNDER SECTION 217 OF THE COMPANIES ACT, 1956:
A. Information in respect of Conservation of Energy, Technology
Absorption and Foreign Exchange Earning and Outgo:
Information pursuant to Section 217(l)(e) of the Companies Act, 1956
read with the Companies (Disclosure of Particulars in the Report of the
Board of Directors) Rules, 1988 relating to conservation of energy,
technology absorption and foreign exchange earning and outgo are as
under:
a. Conservation of Energy:
Due to high power diversity factor in the PCB fabrication process your
Company has opted for fully captive modular generation in units of 125
KVA each. This is providing flexibility of usage thereby keeping the
power consumption low. Other ongoing measures like Power factor
improvement, use of new breed of low wattage high luminescence fittings
etc. have been carried out.
b. Technology Absorption:
i. Research and Development (R&D)
Since the Company does not have any R&D department or have carried R&D
activities, the information in this regard is Nil. However, we do lot
of reverse engineering to develop our own formulations and machine
control circuits.
ii. Technology Absorption, Adaptation and Innovation
MLB technology has been absorbed.
c. Foreign Exchange Earning and Outgo:
Foreign exchange earning and outgo during the year under review were
equivalent to Rs. NIL (previous year Rs. NIL).
B. Particulars of Employees
None of the employees of the Company was in receipt of a remuneration
of Rs. 200000/- or more p.m. if employed for a part of the year under
review or Rs.2400000/- or more p.a. if employed throughout the said
year, the particulars of which are required to be given pursuant to the
provisions of Section 217(2A) of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules 1975.
C. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956, with respect to Directors Responsibility Statement, it is
hereby confirmed:
(i) that in the preparation of the accounts for the financial year
ended 31st March, 2010, the applicable accounting standards have been
followed alongwith proper explanation relating to material departures;
(ii) 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 financial year and of the
profit or loss of the Company for the year under review;
(iii) 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;
(iv) that the Directors have prepared the accounts for the financial
year ended 31st March, 2010 on a going concern basis.
ACKNOWLEDGEMENT
Your Directors record their appreciation to its team of employees for
their unstinted and single minded devotion to the task at hand. We are
also grateful to the financial institutions for their constructive
support and assistance.
For and on behalf of the Board of Directors
Place: Lucknow (R.K. Mehra) (Anil Kumar Singh)
Date: 29, July 2010 Director Managing Director
Mar 31, 2009
The Directors hereby present the Twenty Second Annual Report of the
Company for the year ended on 31st March 2009.
SUMMARISED FINANCIAL RESULTS
{Rs. in Lacs)
During the year ended
31.03.2009 31.03.2008
Sales and other income 15.48 17,29
Profit/Loss before interest, (-) 7.71 (-)2.37
amortisation and depreciation
Less: Interest 0.00 - 0.03
Amortisation 14.14 12.16
Depreciation 78.99 78.99
Profit/Loss before Tax (-) 100.84 (-)93.55
YEAR UNDER REVIEW
The new Chief Secretary advised us to gel a request letter addressd to
the Honble Chief Minister from the Chairman NR of C1I highlighting the
need for expeditious action in activating the SAC in-order to get the
revivable units up and running. This letter of request was received in
CMs office in September 2008 and from October onwards things started
moving. Some delay did ensue because of the posting of new Principal
Secretary Finance also happening at the same time.
A retired Justice of Allahabad High Court has been identified and
nominated as the Chairman of the SAC. Nomination of the second member
is in process. Appointment of the Chairman got finalized by the end of
February 2009. So by all estimates the SAC should be activated by the
second quarter of the coming financial year.
OUTLOOK FOR THE CURRENT YEAR
World PCB Markets continuing buoyancy has been hampered by the Global
Financial meltdown. Consequently die FDIs and MAs in PCB sector have
also received a set back during the current period. Hopefully the end
of the tunnel is in sight and over the next year things should be back
to normal.
DIVIDEND
In view of continued losses, no dividend payout for the year under
review is being recommended.
DIRECTORS
During the year under review Mr. Y.S. Kapadia resigned from the
directorship of the Company w.e.f. 29.12.2008. Your Directors take this
opportunity to place on record their deep appreciation for the valuable
services and guidance rendered by Mr, Kapadia during his tenure as
Director of the Company.
Mr. Udayan Singh and Mr. R.K. Mehra are persons, who have been longest
in the office since the last appointment of Directors and in terms of
the provision of Section 255 of the Companies Act, 1956 as determined
by lot the terms of their offices are liable to retire by rotation at
the forthcoming Annual General Meeting. However, they are eligible for
their reappointment.
AUDITORS
You are requested to appoint auditors for the current year and fix
their remuneration. The retiring auditors M/s S.R, Gupta & Co.,
Chartered Accountants, Kanpur are eligible for reappointment and have
given their consent and also furnished certificate as required by
Section 224(1B) of the Companies Act, 1956.
ACCOUNTS AND COMMENTS IN THE AUDITORS REPORT
The points referred to by the Auditors in their report are self-
explanatory and are covered in the Notes to Accounts. However, as
regards point no. 2 of the Auditors Report and point nos. (ix)(a) and
(xi) of the Annexure to the Auditors Report are concerned your
Directors have to state as under:
a. Reg, Point no. 2 of the Auditors Report for non-providing of
Interest on Term and Working Capital Loans from financial institutions
and bank, it is hereby submitted that on the Company" s Negotiated
Settlement proposal, Hon ble B1FR has issued Letter dated 16.01.2004
to this effect. Moreover, interest on unsecured loan from M/s Kala
Holdings Pvt. Ltd. (an NBFC) has not been provided due to pending
dispute.
b. Reg. Point no. (ix)(a) of the Armexure to the Auditors Report- It
is submitted that during the year under review. due to paucity of
funds, the Company could not make timely payments of the Provident Fund
dues and Gratuity Premium.
c. Reg. Point no. (xi)of the Annexure to the Auditors Report- It is
submitted that consequent upon the Company becoming a sick industrial
undertaking within the meaning of Section 3(l){o) of the Sick
Industrial Companies (Special Provisions) Act, 1985, your Directors
made a reference under SICA to BIFR in Nov98. A Negotiated Settlement
proposal is underactive consideration of HonbleBIFR and awaiting
decision of State Government after the recommendations of Settlement
Advisory Committee on concessions and waivers are received.
CORPORATE GOVERNANCE
Your Company has already implemented the requirement of Clause 49 of
the Listing Agreement i.e. Corporate Governance. As required a
Management Discussion and Analysis Report and Directors Report as well
as Auditors Certificate on Corporate Governance are given alongwith
this report.
AUDIT COMMITTEE
The Audit Committee is Comprising of three independent directors,
namely Mr. Pradeep Kumar, Mr. R.K. Ralhan and Dr. Gautam Singh. The
Committee performs such functions as are required in terms of Clause 49
of the Listing Agreement with the Stock Exchanges.
DEMATERIALISATION OF THE SHARES OF THE COMPANY
Trading in shares of the Company has been made compulsory in
dematerialised form w.e.f. 28.09.2000 by all investors as per
directives given by SEBI. Accordingly the Equity Shares of the Company
are available for dematerialisation under ISIN INE028C01019 with CDSL
and NSDL.
INFORMATION UNDER SECTION 217 OF THE COMPANIES ACT, 1956:
A. Information in respect of Conservation of Energy, Technology
Absorption and Foreign Exchange Earning and Outgo:
Information pursuant to Section 2I7(l)(e) of the Companies Act, 1956
read with the Companies {Disclosure of Particulars in the Report of the
Board of Directors) Rules, 1988 relating to conservation of energy,
technology absorption and foreign exchange earning and outgo are as
under:
a. Conservation of Energy:
Due to high power diversity factor in the PCB fabrication process your
Company has opted for fully captive modular generation in units of 125
KVAeach. This is providing flexibility of usage thereby keeping the
power consumption low. Other ongoing measures like Power factor
improvement, use of new breed of low wattage high luminescence fittings
etc. have been carried out.
b. Technology Absorption:
i. Research and Development (R&D)
Since the Company does not have any R&D department or have carried R&D
activities, the information in this regard is Nil. However, we do lot
of reverse engineering to develop our own formulations and machine
control circuits.
ii. Technology Absorption, Adaptation and Innovation
MLB technology has been absorbed.
c. Foreign Exchange Earning and Outgo:
Foreign exchange earning and outgo during the year under review were
equivalent to Rs. NIL {previous year Rs. NIL).
B. Particulars of Employees
None of the employees of the Company was in receipt of a remuneration
of Rs. 200000/- or more p.m. if employed for a part of the year under
review or Rs.2400000/- or more p.a. if employed throughout the said
year, the particulars of which are required to be given pursuant to the
provisions of Section 217(2A) of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules 1975.
C. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956, with respect to Directors Responsibility Statement, it is
hereby confirmed.
(i) that in the preparation of the accounts for the financial year
ended 31st March, 2009, the applicable accounting standards have been
followed alongwith proper explanation relating to material departures;
(ii) 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 financial year and of the
profit or loss of the Company for the year under review;
(iii) 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:
(iv) that the Directors have prepared the accounts for the financial
year ended 31" March, 2009 on a going concern basis.
ACKNOWLEDGEMENT
Your Directors record their appreciation to its team of employees for
their unstinted and single minded devotion to the task at hand. We are
also grateful to the financial institutions for their constructive
support and assistance.
For and on behalf of the Board of Directors
Place: Lucknow (R.K. Mehra) (Anil Kumar Singh)
Date: 30, July 09 Director Managing Director
Mar 31, 2004
The Directors hereby present the Eighteenth Annual Report of the
Company for the year ended on 31 st March 2004.
SUMMARISED FINANCIAL RESULTS
(Rs. in Lacs)
During the year ended
31.03.2004 31.03.2003
Sales and other income 146.32 264.69
Profit/Loss before interest, (-) 107.98 (-) 96.07
amortisation and
depreciation
Less: Interest 0.34 238.48
Amortisation 17.85 17.65
Depreciation 83.12 83.72
Profit/Loss before Tax (-) 209.29 (-) 436.12
YEAR UNDER REVIEW
Your Directors would like to inform you that, due to the fall out of
UCCs failure to deliver on their promise for fresh fund infusion, the
fall back alternative of M/s. Crescendo Music System Pvt Ltd. was put
up before IDBI and the Honble BIFR was also suitably informed. IDBI
initiated their due diligence exercise of collecting background
information on the company, their financials and directorship etc. A
meeting between the financial advisor of Crescendo and the CGM, IDBI,
Delhi was held in mid May 2004 wherein. Crescendo made their intentions
known. M/s Crescendo, have also proposed to do a One Time Settlement
with State Bank of India, who in the earlier approved Scheme were
continuing with their exposure to your Company. A meeting with the
Financial Advisor of Crescendo and the Officials of the State Bank of
India, at Lucknow is slated for sometime in mid July 2004. After which
a joint meeting with all the participating Institutions would be held
and the final proposal would be put up for consideration of all
concerned and upon concurrence from them, the same would be put up to
the Honble BIFR for their approval. Looking at the present situation
we feel that the NS proposal would come to its final conclusion by the
end of the second quarter of the current fiscal.
Due to fall out of UCC and in turn the delay in implementation of the
NS Proposal, the year under review has received a severe set back.
This delay has further aggravated the working capital paucity, as the
company has not been able to avail any new or additional limits from
their Bankers, State Bank of India, who are also part of the settlement
nor any fresh liquid infusion of funds by UCC. In the absence of fresh
liquid infusion the last fiscal i.e. year ended 31.03.2004, was barely
a holding on operation with two fold objective of:
a. Retaining Key export customers.
b. Retaining production engineers and technicians.
Over sixty percent of operational staff has been laid off and all the
bulk domestic customers from Telecom and Energy Meter Segment have been
dropped. The latter step was unavoidable, as these customers demanded 6
months long credit which is not sustainable in the absence of fresh
infusion.
This holding on operation resulted in lower production and turnover in
the year-ended 31.03.2004. We have done a turnover of Rs. 145.62 lacs,
and the production has been at 1490.257 square meter comprising of
1279.88 square meter of DSPTH PCB and 210.38 square meter of Multi
layer PCB.
Due to uneconomical pricing the company moved out of the existing bulk
market that was the energy meter segment and started foraying into new
areas like automation, controls, etc. This was also one of the reasons
for business contractions.
OUTLOOK FOR THE CURRENT YEAR
The market outlook for the current year is bound to be better than last
year as your company has moved away from volume and low value added
segment to high value added market segment. Thus. your company is
ready to take on the new and more reliable and less volatile market
segment of instrumentation, automation, defence, etc.
Secondly, the companys efforts at increasing export business has also
met with success as your Company has been able to identify some new
customers in Europe, but everything hinges on the early and successful
implementation of the financial package which is under final stages of
implementation with the financial institutions.
DIVIDEND
In view of the continued losses, no dividend payout for the year under
review is being recommended.
DIRECTORS
During the period after last report there was no change amongst the
directorships of the Company. Mr. R.K. Mehra, Mr. Siddharth Singh and
Mr. Pradeep Kumar are persons, who have been longest in the office
since the last appointment of Directors and in terms of the provision
of Section 255 of the Companies Act, 1956 as determined by lot the
terms of their offices are liable to retire by rotation at the
forthcoming Annual General Meeting. However, they are eligible for
their reappointment.
AUDITORS
You are requested to appoint auditors for the current year and fix
their remuneration. The retiring auditors M/s S.R. Gupta & Co.,
Chartered Accountants, Kanpur are eligible for reappointment and have
given their consent and also furnished certificate as required by
Section 224(1B) of the Companies Act, 1956.
ACCOUNTS AND COMMENTS IN THE AUDITORS REPORT
The points referred to by the Auditors in their report are self-
explanatory and are covered in the Notes to Accounts. However, as
regards point no. 2 of the Auditors Report and point nos. (ix)(a) and
(xi) of the Annexure to the Auditors Report are concerned your
Directors have to state as under:
a. Reg. Point no. 2 of the Auditors Report for non-providing of
interest on Term and Working Capital Loans from financial institutions
and bank, it is hereby submitted that on the Companys Negotiated
Settlement proposal, Honble BIFR has issued Letter dated 16.01.2004 to
this effect.
b. Reg. Point no. (ix)(a) of the Annexure to the Auditors Report- it
is submitted that during the year under review, due to paucity of
funds, the Company could not make timely payments of the Provident Fund
dues and Gratuity Premium.
c. Reg. Point no. (xi) of the Annexure to the Auditors Report- It is
submitted that consequent upon the Company becoming a sick industrial
undertaking within the meaning of Section 3(1 )(o) of the Sick
Industrial Companies (Special Provisions) Act, 1985, your Directors
made a reference under SICA to BIFR in Nov98. A Negotiated Settlement
proposal is under active consideration of Honble BIFR.
CORPORATE GOVERNANCE
Your Company has already implemented the requirement of Clause 49 of
the Listing Agreement i.e. Corporate Governance. As required Management
Discussion and Analysis Report and Directors Report together with
Auditors Certificate on Corporate Governance are given alongwith this
report.
AUDIT COMMITTEE
The Audit Committee is Comprising of three independent directors,
namely Mr. Pradeep Kumar, Mr. R.K. Ralhan and Dr. Gautam Singh. The
Committee performs such functions as are required in terms of Clause 49
of the Listing Agreement with the Stock Exchanges.
DEMATERIALISATION OF THE SHARES OF THE COMPANY
Trading in shares of the Company has been made compulsory in
dematerialised form w.e.f. 28.09.2000 by all investors as per
directives given by SEBI. Accordingly the Equity Shares of the Company
are available for dematerialisation under ISININE028C01019 with both
CDSL and NSDL.
INFORMATION UNDER SECTION 217 OF THE COMPANIES ACT, 1956:
A. Information in respect of Conservation of Energy, Technology
Absorption and Foreign Exchange Earning and Outgo:
Information pursuant to Section 217(l)(e) of the Companies Act, 1956
read with the Companies (Disclosure of Particulars in the Report of the
Board of Directors) Rules, 1988 relating to conservation of energy,
technology absorption and foreign exchange earning and outgo are as
under:
a. Conservation of Energy:
Due to high power diversity factor in the PCB fabrication process your
Company has opted for fully captive modular generation in units of 125
KVA each. This is providing flexibility of usage thereby keeping the
power consumption low. Other ongoing measures like Power factor
improvement, use of new breed ot low wattage high
luminescence fittings etc. have been carried out.
b. Technology Absorption:
i. Research and Development (R&D)
Since the Company does not have any R&D department or have carried R&D
activities, the information in this regard is Nil. However, we do lot
of reverse engineering to develop our own formulations and machine
control circuits. ii. Technology Absorption, Adaptation and
Innovation MLB technology has been absorbed.
c. Foreign Exchange Earning and Outgo:
Foreign exchange earning during the year under review were equivalent
to Rs. 7.54 lacs (previous year Rs. 25.85 Lacs). The total outgo in
foreign currency amounted equivalent to Rs. 0.25 lacs on Revenue A/C
(previous year Rs. 14.85 Lacs).
B. Particulars of Employees
None of the employees of the Company was in receipt of a remuneration
of Rs. 200000/- or more p.m. if employed for a part of the year under
review or Rs.2400000/- or more p.a. if employed throughout the said
year, the particulars of which are required to be given pursuant to the
provisions of Section 217(2A) of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules 1975.
C. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 2I7(2AA) of the Companies
Act, 1956, with respect to Directors Responsibility Statement, it is
hereby confirmed:
(i) that in the preparation of the accounts for the financial year
ended 31 st March, 2004, the applicable accounting standards have been
followed alongwith proper explanation relating to material departures;
(ii) 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 financial year and of the
profit or loss of the Company for the year under review;
(iii) 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:
(iv) that the Directors have prepared the accounts for the financial
year ended 3 1 st March, 2004 on a going concern basis.
ACKNOWLEDGEMENT
Your Directors record their appreciation to its team of employees for
their unstinted and single minded devotion to the task at hand. We are
also grateful to the financial institutions for their constructive
support and assistance.
For and on behalf of the Board of Directors
(Udayan Singh) (Anil Kumar Singh)
Director Managing Director
Place: Lucknow
Date : 27.07.2004
Mar 31, 2003
The Directors hereby present the Seventeenth Annual Report of the
Company for the year ended on 31st March 2003.
SUMMARISED FINANCIAL RESULTS
(Rs. in Lacs)
During the year ended
31.03.2003 31.03.2002
Sales and other income 264.69 751.93
Profit/Loss before interest, (-) 57.51 16.67
amortisation and depreciation
Less: Interest (-) 238.48 (-) 243.84
Amortisation (-) 54.41 (-) 17.85
Depreciation (-) 83.72 (-) 81.08
Profit/Loss before Tax (-) 436.12 (-) 332.10
YEAR UNDER REVIEW
The Directors will like to inform you that, due to the delay in
implementing the Negotiated Settlement, the year under review has
received a severe set back. Negotiated settlement is delayed on account
of inordinately long time taken in the legal vetting of various
tripartite agreements and approval of the draft mortgage deed. This
delay has further aggravated the working capital pancity, as the
company has not been able to avail any new or additional limits from
their Bankers, State Bank of India, who are also part of the
settlement.
The market in the year under review also remained depressed and in fact
a major segment of yester years namely telecommunications saw PCB
requirement dip to abysmal levels which had a very negative impact on
the market per se, as it became a buyers market and the PCB pricing saw
a further erosion. The regression in demand saw the rise of unhealthy
competition where PCB manufacturers started using credit as a
competitive tool further straining our finances.
Due to uneconomical pricing the company moved out of the existing bulk
market that was the energy meter segment and started foraying into new
areas like automation, controls, etc. This was also one of the reasons
for business contractions.
Your Directors would further like to inform you that the NS proposal
is now in its final stages of negotiation and almost all jagged edges
have been smoothened. It is expected that the same shall be implemented
by the end of the second quarter of the current fiscal year. The
business in the current year will surely look up once the fresh funds
are tied up because in the fiscal year under review the company has
cultivated a new crop of customers.
OUTLOOK FOR THE CURRENT YEAR
The market outlook for the current year is bound to be better than last
year as your company has moved away from volume and low value added
segment to high value added market segment. It has moved with Ministry
of Defence for approval as well has submitted samples for approval of
higher layer count PCBs to various existing and new customers. Thus,
your company is ready to take on the new and more reliable and less
volatile market segment of instrumentation, automation, defence, etc.
Secondly, the companys efforts at increasing export business has
also met with success as your Company has been able to identify some
new customers in Europe, but everything hinges on the early and
successful implementation of me financial package which is under final
stages of implementation with the financial institutions.
DIVIDEND
In view of the continued losses, no dividend payout for the year under
review is being recommended.
DIRECTORS
During the period, since the last report, Mr. R.K. Ralhan has been
appointed by IDBI as their nominee in substitution of Mr. R.S. Shukla
w.e.f. 13.09.2002, who shall continue as Director of the Company at the
pleasure of IDBI. Mr. J.B. Shah was appointed as a Director as an
addition to the Board w.e.f. 25.10.2002, who has since resigned w.e.f.
18.08.2003. Further, Mr. Suresh H. Shah has been appointed as a
Director as an addition to the Board w.e.f. 18.08.2003. In accordance
to me provision of Section 260 of the Companies Act, 1956, the term of
Office of Mr. Suresh H. Shah, as a Director, is liable to termination
at the form coming Annual General Meeting. A notice has, however, been
received from a member pursuant to Section 257 of the said Act
proposing the candidature of Mr. Suresh H. Shah for his appointment as
a Director liable to retire by rotation.
Moreover, Mr. Atul Kumar Singh has resigned from the Directorship of
the Company w.e.f. 27.06.2003. Your Directors take this services and
guidance rendered by Mr. R.S. Shukla, Mr. Atul Kumar Singh and Mr. J.B.
Shah during their respective tenures as Directors of the Company.
Dr. Gautam Singh and Mr. Udayan Singh are persons, who have been
longest in the office since the last appointment of Directors and in
terms of the provision of Section 255 of the Companies Act, 1956 as
determined by lot the terms of their offices are liable to retire by
rotation at the forthcoming Annual General Meeting. However, they are
eligible for their reappointment.
AUDITORS
You are requested to appoint auditors for the current year and fix
their remuneration. The retiring auditors M/s S.R. Gupta & Co.,
Chartered Accountants, Kanpur are eligible for reappointment and have
given their consent and also furnished certificate as required by
Section 224(1B) of the Companies Act, 1956.
ACCOUNTS AND COMMENTS IN THE AUDITORS REPORT.
The points referred to by the Auditors in their report are self-
explanatory and are covered in the Notes to Accounts. However, as
regards the point no. 2 of the Auditors Report and 17 & 20 of the
Annexure to the Auditors Report is concerned your Directors have to
state as under.
a. Reg. Point no. 2 of the Auditors Report for non-providing of
compound & penal Interest on loans from financial institutions, it is
hereby submitted that the Company has submitted a Negotiated Settlement
proposal wherein all interest including penal & compound interest is to
be waived off. However, as calculated in the previous balance sheet,
the Simple Interest on Term Loans has been charged for the year under
review. The implementation of the approved NS Proposal has been delayed
as various tripartite agreements and Mortgage Deed, being vetted by
institutions, has till date not been finalised by them.
b. Reg. Point no 17 of the Annexure to the AuditorsReport-It is
submitted that during the year under review, due to paucity of funds,
the Company could not make timely payments of the Provident Fund dues.
c. Reg. Point no 20 of the Annexure to the AuditorsReport-It is
submitted that consequent upon the Company becoming a sick industrial
undertaking within the meaning of Section 3(l)(o) of the Sick Industrial
Companies (Special Provisions) Act 1983, your Directors made a
reference under SICA to BIFR in Nov98 and the Company has implemented
the BIFR approved rehabilitation scheme with the revised cut off date of
31.03.2000.
CORPORATE GOVERNANCE
Your Company has already implemented the requirement of Clause 49 of
the Listing Agreement i.e. Corporate Governance w.e.f. the date of
implementation i.e. 31st March, 2003. Pursuant to Clause 49 of the
Listing Agreement, a Management Discussion and Analysis Report and
Directors Report on Corporate Governance are given alogwith this
report
AUDIT COMMITTEE
An Audit Committee Comprising of three independent directors viz Mr.
Y.S. Kapadia, Mr. Pradeep Kumar and Mr. Atul Kumar Singh was formed in
compliance with the requirement of Clause 49 of the Listing Agreement
with Stock Exchanges. However, the Gxnmittee has been reconstituted
w.e.f. 18.08.2003 and is now consisting of Mr. Pradeep Kumar, Mr. R.K.
Raman and Dr. Gautam Singh. The Committee will have such functions as
are required in terms of Clause 49 of the Listing Agreement with the
Stock Exchanges.
DEMATERIALISATION OF THE SHARES OF THE COMPANY
Trading in shares of the Company has been made compulsory in
dematerialised form w.e.f, 28.09.2000 by all investors as per
directives given by SEBL Accordingly the Equity Shares of me Company
are available for dematerialisation under ISIN INB028C01019 with both
CDSL and NSDL.
INFORMATION UNDER SECTION 217 OF THE COMPANIES ACT, 1956
A.Information in respect of Conservation of Energy,Technology
Absorpation and Forgine Exchange Earnings and Outgo:
Information pursuant to Section 217(l)(e) of the Companies Act, 1956
read with the Companies (Disclosure of Particulars in the Report of the
Board of Directors) Rules, 1988 relating to conservatinn of energy,
technology absorption and foreign exchange earning and outgo are as
under:
a. Conservation of Energy :
Taking advantage of high power diversity factor in the PCB fabrication
process your Company has opted for fully captive modular generation in
units of 125 KVA each. This is providing flexibility of usage thereby
keeping the power consumption low. Other ongoing measures Use Power
actor improvement, use of new breed of low wattage high luminescence
fittings etc. have been carried out.
b. Technology Absorption :
i. Research and Development (RAD)
Since the Company does not have any R & D department or have carried
R&D activities, the information in this regard is Nil. However, we do
lot of reverse engineering to develop our own formuulations and machine
control circuits.
ii. Technology Absorption,Adaption and Innovation
MLB technology has been absorbed.
c Forgine Exchange Earnings and Outgo;
Foreign exchange earning during the year under review were equivalent
to Rs. 23.83 lacs (previous year Rs. 20.91 Lacs). The total outgo
foreign currency amounted equivalent to Rs. 14.85 lacs on Revenue A/C
(previous year Rs. 103.79 Lacs).
B. Particulars of Employees
None of the employees of the Company was in receipt of a remuneration
of Rs. 200000/- or more p.m. if employed for a part of the year under
review or Rs.2400000/- or more p.a. if employed throughout the said
year, the particulars of which are required to be given pursunat to the
provisions of Section217(2A) of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules 1975.
Directors Responsibility Statement
Pursuant to the requirement under Section 217(2AA) of the
Companies Act, 1936, with respect to Directors Responsibility
Statement, it is hereby confirmed:
(i) that in the preparation of the accounts for the financial year
ended 31st March, 2083, the applicable accounting standards have been
followed alongwith proper explanation relating to material departures;
(ii) that the Directors have selected such accounting policies and applied
them consistently and made judgments sad 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 financial year and of the profit
or loss of the Company for the year under review;
(iii)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, 1936 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
(iv)that the Directors have prepared me accounts for the financial year
ended 31st March, 2003 on a going concern basis.
ACKNOWLEDGEMENT
Your Directors record their appreciation to its team of employees for
their unstinted and single minded devotion to the task at hand. We are
also grateful to the financial institutions for their constructive
support and assistance.
For and on behalf of the
Board of Directors
Place: Lucknow
Date: 18.08.2003
(UdayanSmgh) (Anil Kumar Singh)
Director Managing Director
Mar 31, 2002
The Directors hereby present the Sixteenth Annual Report of the
Company for the year ended on 31st March 2002.
SUMMARISED FINANCIAL RESULTS
(Rs. in Lacs)
During the year ended
31.03.2002 31.03.2001
Sales and other income 751.93 723.83
Profit/Loss before interest 10.67 16.18
amortisation and depreciation
Less: Interest (-) 243.84 (-) 268.76
Amortisation (-) 17.85 (-) 17.85
Depreciation (-) 81.08 (-) 73.79
Profit/Loss before Tax (-) 332.10 (- )344.22
DIVIDEND
In view of the continued losses, no dividend payout for the year under
review is being recommended.
DIRECTORS
During the period, since last Annual General Meeting, there has been no
change amongst the Directorships of the Company. Mr. Y.S. Kapadia and
Mr. Pradeep Kumar are persons, who have been longest in the office
since the last appointment of Directors and in terms of the provision
of Section 255 of the Companies Act, 1956 as determined by lot the
terms of their offices are liable to retire by rotation at the
forthcoming Annual General Meeting. However, they are eligible for
their reappointment.
AUDITORS
You are requested to appoint auditors for the current year and fix
their remuneration. The retiring auditors M/s S.R. Gupta & Co.,
Chartered Accountants, Kanpur are eligible for reappointment and have
given their consent and also furnished certificate as required by
Section 224(1B) of the Companies Act, 1956.
ACCOUNTS AND COMMENTS IN THE AUDITORS REPORT.
The points referred to by the Auditors in their report are
self-explanatory and are covered in the Notes to Accounts. However, as
regards the point no. 2 of the Auditors Report and 17 & 20 of the
Annexure to the Auditors Report is concerned your Directors have to
state as under:
a. Point no.2 of the Auditors Report regarding non- providing of
compound & penal Intt. on loans from financial institutions it is
hereby submitted that the Company has submitted a Negotiated Settlement
proposal wherein ali interest including penal & compound intt. is to be
waived off. However, as calculated in the previous balance sheet, the
Simple Interest on Term Loans has been charged for the year under
review. The NS Proposal is at an advanced stage of negotiations with
IDBI, Operating Agency of BIFR and the other participating
institutions. Company expects the acceptance of the said proposal hence
no provision for compound & penal Intt. is made.
b. Point no 17 of the Annexure to the Auditors Report- It is
submitted that during the year under review, on few occasions, due to
paucity of funds, the Company could not make timely payments of the
Provident Fund dues, which have since been paid in the current year.
c. Point no 20 of the Annexure to the Auditors Report- It is
submitted that consequent upon the
Company becoming a sick industrial undertaking within the meaning of
Section 3(1)(o) of the Sick Industrial Companies (Special Provisions)
Act. 1985, your Directors made a reference under SICA to BIFR in Nov98
and the Company has implemented the BIFR approved rehabilitation scheme
with the revised cut off date of 31.03.2000.
CORPORATE GOVERNANCE:
The Board has already taken initiative to comply with the requirement
of Clause 49 of the Listing Agreement i.e. Corporate Governance
although the date of implementation in case of your Company is 31st
March, 2003.
AUDIT COMMITTEE:
An Audit Committee Comprising of three independent directors viz Mr.
Y.S. Kapadia, Mr. Pradeep Kumar and Mr. Atul Kumar Singh has been
formed in compliance with the requirement of Clause 49 of the Listing
Agreement with Stock Exchanges. The Committee will have such functions
as are required in terms of Clause 49 of the Listing Agreement with the
Stock Exchanges within the stipulated time.
DEMATERIALISATION OF THE SHARES OF THE COMPANY:
Trading in shares of the Company has been made compulsory in
dematerialised form w.e.f. 28.09.2000 by all investors as per
directives given by SEBI. Accordingly the Equity Shares of the Company
are available for dematerialisalion under ISIN-INE028C01019 with both
CDSL and NSDL.
INFORMATION UNDER SECTION 217 OF THE COMPANIES ACT. 1956:
A. Information in respect of Conservation of Energy, Technology
Absorption and Foreign Exchange Earning and Outgo:
Information pursuant to Section 217(1)(e) of the Companies Act, 1956
read with the Companies (Disclosure of Particulars in the Report of the
Board of Directors) Rules, 1988 relating to conservation of energy,
technology absorption and foreign exchange earning and outgo are as
under:
a. Conservation of Energy:
Taking advantage of high power diversity factor in the PCB fabrication
process your Company has opted for fully captive modular generation in
units of 125 KVA each. This is providing flexibility of usage thereby
keeping the power consumption low. Other ongoing measures like Power
factor improvement, use of new breed of low wattage high luminescence
fittings etc. have been carried out.
b. Technology Absorption:
i. Research and Development (R&D).
Since the Company does not have any R&D department or have carried R&D
activities, the information in this regard is Nil. However, we do lot
of reverse engineering to develop our own formulations and machine
control circuits.
ii. Technology Absorption, Adaptation and Innovation MLB technology is
under absorption.
c. Foreign Exchange Earning and Outgo. Foreign exchange earning
during the year under review were equivalent to Rs. 20.21 Lacs
(previous year Rs. 29.60 Lacs). The total outgo in foreign currency
amounted equivalent to Rs. 103.79 Lacs on Revenue A/C (previous year
Rs. 104.43 Lacs)
B. Particulars of Employees:
None of the employees of the Company was in receipt of a remuneration
of Rs. 200000/- or more p.m. if employed for a part of the year under
review or Rs.2400000/- or more p.a. if employed throughout the said
year, the particulars of which are required to be given pursuant to
the provisions of Section 217(2A) of the Companies Act, 1956 read with
the Companies (Particulars of Employees) Rules 1975.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to the requirement under Section 217(2A.A) of the Companies
Act, 1956, with respect to Directors Responsibility Statement, it is
hereby confirmed:
(i) That the preparation of the accounts for the financial year ended
31st March, 2002, the applicable accounting standards have been
followed along with proper explanation relating to material departures:
(ii) 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 financial year and of the
profit or loss of the Company for the year under review;
(iii)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;
(iv) That the Directors have prepared the accounts for the financial
year ended 31st March, 2002 on a going concern basis.
ACKNOWLEDGEMENT:
Your Directors record their appreciation to its team of employees for
their unstinted and single minded devotion to the task at hand. We arc
also grateful to the financial institutions for their constructive
support and assistance.
For and on behalf of the Board of Directors.
(UDAYAN SINGH) (ANIL KUMAR SINGH)
Director Managing Director
Place: Lucknow
Date : 30.07.2002
Mar 31, 2001
The Directors hereby present the fifteenth" Annual Report of the
Company for the year ended on 31st March 2001.
SUMMARISED FINANCIAL RESULTS
(Rs. in Lacs)
During the year ended
31.03.2001 31.03.2000
Sales and other income 723.83 50.72
Profit/Loss before interest (-) 1.67 (-) 106.08
and depreciation
Less: Interest (-)268.76 (-)221.01
Depreciation (-)73.79 (-)44.32
Profit/Loss before Tax (-)344.22 (-)371.41
YEAR UNDER REVIEW
Your Directors are pleased to inform that your Company achieved a
turnover of Rs.7.24 crores, the highest ever since its inception and
more than twice the total business done in the 111 three years.
However, BIFR scheme envisaged a turnover of Rs. 16.5 crores during
2000-01 and the Companys achievement was only 44% of their benchmark
mainly because a few critical assumption regarding the market did not
hold during this period- this was especially so in regard to the timing
of Telecom Equipment Orders being released by MTNL and BSNL. As a
result of the above shortfall the Companys cash accruals were way
below the projections. Although, we did not have any operating cash
loss and had a positive EBDITA (Earning Before Depreciation, Interest,
Tax and Amortisation) but the volumes were far too low to address the
interest dves of the Institutic Since the Bank kept debiting its
interest dues on WCTL & FITL the Company could not make Lease Rent
payments to
PIC UP for the last two quarters. A revised proposal has been given to
the Operating Agency-IDBI, which includes conversion of the interest
default of post scheme implementation into equity. This proposal is in
abeyance pending finalization of the equity partner.
OUTLOOK FOR THE CURRENT YEAR:
Domestic Market has picked up and Electronic energy Meter segment is
emerging as the new growth engine. Our projections for Rs. 16 crores
turnover for the current year have factored this upswing. TARGETS FOR
2001-02
Quarter DOMESTIC EXPORTS Total in
Number Rs. Lac
MLB IN M2 PS IN M2 MLB IN M2 PS IN M2
ONE 200 4000 0 800 215
TWO 300 7000 50 1050 400
THREE 750 8500 50 1200 450
FOUR 1500 9500 200 1600 550
The Companys first quarters performance of this year has been 46%
higher than the corresponding period last year. The Companys New CC
Limits are yet to be released by SBI otherwise we would have crossed a
turn over Rs. 3 crores this quarter. This processing delay at the Bank
is caught in the usual web of Transfer/Postings/ Delayed
Responses/Inertia/.. .etc. As things stand today it should get released
by the middle of August thereby hampering the Companys current
quarters growth too. DIVIDEND
In view of the continued losses, no dividend payout for the year under
review is being recommended. DHtECTORS
During the year under review IDBI nominated Mr. R.S. Shukla, their
AGM, as Director on the Board of the Company in terms of their loan
agreement, which have been noted by the Board on 25.01.2001. Further,
Mr. Siddharth Singh has been appointed as a Whole-time Director of the
Company at the Board Meeting held on i 2i7.07i0ilnasianiaddition to
theiiBoardjiIn laccordance to the provision of Section 260 of the
Companies Act, 1956, the term of Office of Mr. Siddharth Singh, as a
Director is liable to termination at the forth coming
Annual General Meeting. A notice has, however, been received from a
member pursuant to Section 257 of the said Act proposing the
candidature of Mr. Siddharth Singh for his appointment as a Director
liable to retire by rotation.
Mr. R.K. Mehra and Mr. Atul Kumar Singh are persons, who have been
longest in the office since the last appointment of Directors and in
terms of the provision of Section 255 of the Companies Act, 1956 as
determined by lot the terms of their offices are liable to retire by
rotation at the forthcoming Annual General Meeting however, they are
eligible for their reappointment.
AUDITORS
You are requested to appoint auditors for the current year and fix
their remuneration. The retiring auditors M/s S.R. Gupta & Co.,
Chartered Accountants, Kanpur are eligible for reappointment and have
given their consent and also furnished certificate as required by
Section 224(1B) of the Companies Act, 1956. ACCOUNTS AND COMMENTS IN
THE AUDITORS REPORT.
The points referred to by the Auditors in their report are
self-explanatory and are covered in the Notes to Accounts. However, as
regards the point no. 2 of the Auditors Report and 17 & 20 of the
Annexure to the Auditors Report are concerned your Directors have to
state as under:
a. Point No- 1g, of Notes on Account referred by the auditors in their
report regarding foreign exchange transactions are self explanatory
and has been accounted for as per Standard Accounting Practice, and
b. Point no. 4 of notes on Accounts referred by the Auditors in their
report regarding non providing of compound & penal interest on loans
from financial institutions it is hereby submitted that a proposal for
waiver of penal & compound interest is pending with IDBI, Operating
Agency of BIFR. Company expects the acceptance of the said proposal
hence no provision for compound & penal interest is made.
c. During the year under review, on few occasions, due to paucity of
funds, the Company could not make timely payments of the Provident Fund
dues, which have since been paid in the current year.
d. Consequent upon the Company becoming a sick industrial undertaking
within the meaning of Section 3(l)(o) of the Sick Industrial Companies
(Special Provisions) Act, 1985, your Directors made a reference under
SICA to BIFR in Nov. 1998 and the Company has implemented the BIFR
approved rehabilitation scheme with the revised cut off date of
31.03.2000. CORPORATE GOVERNANCE: The Board has already taken
initiative to comply with the requirement of Clause 49 of the Listing
Agreement i.e. Corporate Governance although the date of
implementation in case of your Company is 31st March, 2003.
AUDIT COMMITTEE:
An Audit Committee Comprising of three independent directors viz
Mr.-Y.S. Kapadia, Mr. Pradeep Kumar and Mr. Atul Kumar Singh has been
formed in compliance with the requirement of Clause 49 of the Listing
Agreement with Stock Exchanges. The Committee will have such functions
as are required in terms of Clause 49 of the Listing Agreement with the
Stock Exchanges within the stipulated time.
DEMATERIALISATIuN OF THE SHARES OF THE COMPANY:
Trading in shares of the Company has been made compulsory in
dematerialised form w.e.f. 28.09.2000 by all investors as per
directives given by SEBI. Accordingly the Equity Shares of the Company
are available for dematerialisation under ISIN- INE028C01019 with both
CDSL and NSDL.
INFORMATION UNDER SECTION 217 OF THE COMPANIES ACT, 1956:
A. Information in respect of Conservation of Energy, Technology
Absorption and Foreign Exchange Earning and Outgo:
Information pursuant to Section 217(l)(e) of the Companies Act, 1956
read with the Companies (Disclosure of Particulars in the Report of the
Board of Directors) Rules, 1988 relating to conservation of energy,
technology absorption and foreign exchange earning and outgo are as
under:
a. Conservation of Energy:
Taking advantage of high power diversity factor in the PCB fabrication
process your Company has opted for fully captive modular generation in
units of 125 KVA each. This is providing flexibility of usage thereby
keeping the power consumption low. Other ongoing measures like Power
factor improvement, use of new breed of low wattage high luminescence
fittings etc. have been carried out.
b. Technology Absorption:
i. Research and Development (R&D).
Since the Company does not have any R&D department or have carried R&D
activities, the information in this regard is Nil. However, we do lot
of reverse engineering to develop our own formulations and machine
control circuits. ii. Technology Absorption, Adaptation and Innovation
MLB technology is under absorption.
c. Foreign Exchange Earning and Outgo.
Foreign exchange earning during the year under review were equivalent
to Rs. 29.60 Lacs (previous year Rs. Nil). The total outgo in foreign
currency amounted equivalent to Rs. 104.43 Lacs on Revenue A/C
(previous year Rs. 11.07 Lacs).
B. Particulars of Employees:
None of the employees of the Company was in receipt of a remuneration
of Rs. 50000/- or more p.m. if employed for a part of the year under
review or Rs.600000/- or more p.a. if employed throughout the said
year, the particulars of which are required to be given pursuant to the
provisions of Section 217(2A) of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules 1975. Directors
Responsibility Statement: Pursuant to the requirement under Section
217(2AA) of the Companies Act, 1956, with respect to Directors
Responsibility Statement, it is hereby confirmed:
(i) That in the preparation of the accounts for the financial year
ended 31st Iviarch, 2001, the applicable accounting standards have been
followed alongwith proper explanation relating to material departures:
(ii) That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that were
responsible and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of financial year and of the
profit or loss of the Company for the year under review;
(iii) 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;
(iv) That the Directors have prepared the accounts, for the financial
year ended 31st March, 2001 on a going concern basis.
ACKNOWLEDGEMENT:
Your Directors record their appreciation to its team of employees for
their unstinted and single minded devotion to the task at hand. We are
also grateful to the financial institutions for their constructive
support and assistance.
For and on behalf of the Board of Directors
(Anil Kumar Singh)
Managing Director
Place: Lucknow (Udayan Singh)
Date: 27.07.2001 Director
Mar 31, 2000
The Directors hereby present the fourteenth Annual Report of the Company
for the year ended on 31st March, 2000.
SUMMARISED FINANCIAL RESULTS
(Rs. in Lacs)
During the year ended
31.03.2000 31.03.1999
Sales and other income 50.72 60.94
Profit/Loss before interest (-)106.08 (-)189.40
and depreciation
Less:Interest 221.01 301.66
Depreciation 44.32 59.69
Profit/Loss before Tax (-)371.41 (-)550.75
YEAR UNDER REVIEW
Your Companys rehabilitation case came up for hearing on April
1, 1999 and the scheme.was sanctioned by BIFR in its third hearing on
October 5, 1999. Thanks to the initiative taken by the operating agency
and other participating Institutions, we could get a very rapid-passage
through BIFR, just six months - something that does not happen very
often in rehabilitation cases. Subsequent formalities and the mandatory
waiting period took us into the third week of December before the first
installment could be released by IDBI. We commenced trial runs from
January and commercial operation from the middle of February 2000. For
a unit, which had been virtually closed for over a year, we were able
to accelerate startup activities and recommission the plant in record
time. We have been able to win back a good number of our domestic
customers and our order commitment book at the end of the year stood at
over a crore. Orders and orders thick and fast would decide how soon we
could resurrect the unit financially. We have made a fair beginning,
which augurs well for future and there is every reason to believe that
we would turn the corner in the coming year.
OUTLOOK FOR THE CURRENT YEAR:
In order to meet its debt servicingcommitments and be in line with BIFR
Scheme your Company must achieve a turnover of Rs. 16.5 Crores.
Interpolating quarter wise the levels to be achieved are Ql: Rs. 1.5
Crores; Q2 Rs.2.5 Crores; Q3: Rs.6 Crores & Q4: Rs.6.5 Crores. Even at
Rs.6.5 Crores stated for the last quarter, the company would be
utilising only 75% of its installed capacity. The targets are well
within striking range and the focus would be on delivery of PCBs of
consistent quality at short notice and always on time, which would keep
the orders flowing in unhindered.
DIVIDEND
In view of the continued losses, no dividend payout for the year under
review is being recommended.
DIRECTORS
During the year under review nominations of Mr. Ravindra Kacker and
Mr. Dhruva Choudhary as Directors were withdrawn by PICUP and IL & FS,
respectively which were noted by the Board on 18.10.99 and 28.01.2000.
Your Directors take this opportunity to place on record their deep
appreciation for the valuable services rendered by Mr. Ravindra Kacker
and Mr. Dhruva Choudhary during their tenure as Directors of the
Company. Dr. Gautam Singh and Mr. Udayan Singh are persons, who have
been longest in the office since the last appointment of Directors and
in terms of the provision of Section 255 of the Companies Act, 1956 as
determined by lot the terms of their offices are liable to retire by
rotation at the forthcoming Annual General Meeting however, they "are
eligible for their reappointment.
AUDITORS
You are requested to appoint auditors for the current year and fix
their remuneration. The retiring auditors M/s S.R. Gupta & Co.,
Chartered Accountants, Kanpur are eligible for reappointment and have
given their consent and also furnished certificate as required by
Section 224(1B) of the Companies Act, 1956.
ACCOUNTS AND COMMENTS IN THE AUDITORS REPORT
The points referred to by the Auditors in their report are
self-explanatory and need no further clarification/ explanation.
However, so far as point no. 20 of the annexure to the Auditors Report
is concerned regarding Company beconiing sick industrial undertaking
within the meaning of Section 3(l)(o) of the Sick Industrial Companies
(Special Provisions) Act. 1985, your Directors made a reference under
SICA to BIFR in Nov. 1998 and the Company is now implementing the BIFR
approved rehabilitation scheme. The matter of revised Cut off date of
31.3.2000 moved by the Operating Agency and agreed by all participating
institutions is before the BIFR for their concurrence.
IN FORMATION UNDER SECTION 217 OF THE COMPANIES ACT, 1956:
A. Particulars of Employees :
In compliance of the^provisions under Section 217(2A) of the Companies
Act, 1956 read with the Companies (Particulars of Employees) Rules
1975, no employee of the Company was in receipt of a remuneration of
Rs. 50000/- or more p.m. if employed for a part of the year under
review or Rs.600000/- or more p.a. if employed throughout the said
year. B. Information in respect of Conservation of Energy, Technology
Absorption and Foreign Exchange Earning and Outgo: Information1
pursuant to Section 217(l)(e) of the Companies Act, 1956 read with the
Companies (Disclosure ofvParticulars in the Report of the Board of
Directors) Rules, 1988 relating to conservation of energy, technology
absorption and foreign exchange earning and outgo are as under:
a) Conservation of Energy:
Taking advantage of high power diversity factor in the PCB fabrication
process your Company has opted for fully captive modular generation it|
units of 125 KVA each. This is providing,flexibility Bf usage thereby
keeping the power consumption low. Other ongoing measures like Power
factor improvement use of new breed of low wattage nigh luminescence
fittings etc. have been carried out.
b) Technology Absorption:
i) Research and Development (R&D). Since the Company does not have any
R & D department or have carried R&D activities, the information in
this regard is Nil. However, we do lot of reverse engineering to
develop our own formulations and machine control circuits.
ii) Technology Absorption, Adaptation and Innovation MLB technology is
under absorption.
c) Foreign Exchange Earning and Outgo. Foreign exchange earning during
the year under review were equivalent to Rs. Nil (previous year
Rs.24.26 Lacs). The total outgo in foreign currency amounted equivalent
to Rs. 11.07 Lacs on Revenue A/C (previous year Rs.7.72 Lacs).
Y2K COMPLIANCE
The Company has successfully managed Y2K transition without any
disruption. All critical I.T. Systems covering business applications,
process control, plant automation and other areas are Y2K compliant.
ACKNOWLEDGEMENT:
Restarting a factory closed for over a year within eight weeks of
receiving the first infusion is a task that can only be accomplished
through stupendous teamwork among highly motivated individuals.
Individuals with never-say-die enthusiasm and unflagging spirit of men
possessed. And possessed we must have been to take the Herculean task
head on and your Directors record their admiration and gratitude for
the exemplary zeal displayed by its family of employees. Thanks are
also due to the Financial Institutions and State Government Agencies
who maintained a positive stance all through and we hope to get their
continued support and encouragement in the long and arduous trek to
recovery, which has just begun.
For and on behalf of the Board of Directors
Place: Lucknow
Date: 28.07.2000 (Anil K. Singh)
Managing Director
(Udayan Singh)
Director
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