| The Directors have pleasure in presenting the NINTH ANNUAL REPORT
together with the Audited Statement of Accounts for the year ended 31st
March, 1998.
FINANCIAL RESULTS :
Year Ended Year Ended
31st March, 1998 31st March, 1997
Sales 22,78,54,867 21,55,44,688
Other Income 15,07,988 14,60,348
Total Income 22,93,62,855 21,70,05,036
Total Expenditure 22,91,37,291 21,25,17,077
Profit before providing
Depreciation and interest 83,69,977 2,84,49,431
Depreciation 38,43,146 36,07,966
Interest 45,26,831 2,48,41,465
Profit before Taxation 2,25,564 44,87,959
Provision for Tax -- 10,00,000
Profit after Tax 2,25,564 34,87,959
Balance brought forward
from last year 2,22,39,988 1,87,52,029
Amount available for Appropriation 2,24,65,552 2,22,39,988
OPERATIONS :
The year under report witnessed unsatisfactory for Indian Industry as a
whole. The crisis in South East Asia has also affected Indian economy
which resulted into overall decline in rate of growth of Industrial
Production to 4.2% compared to 7.1% in last year. Consequently, there
was adverse effect on automobile industry. The company's 80% of the
production is absorbed on consumption by the Automobile Industry. The
year under review was not particularly favourable to the company due to
overall recession being witnessed by the automobile industry as a whole. The company had to reduced its prices in view of ongoing recession and depressed market conditions, which started around January, 1996. There was expectation and hope for improvement of demand in Auto industry, however the same was not fulfilled. In fact production of heavy and medium commercial vehicles dropped by 38% and Light Commercial vehicles by 24%. The car industry registered negative growth of 2% and two wheeler industry had small growth of 3%. Hence bearing industry as a while suffered severe set back, first on reduced prices and next on volume. Under the adverse circumstances, the company has managed to have turnover of Rs.22.78 lakhs compared to previous year turnover of Rs.21.55. Lakhs.
The company has envisaged a capital expenditure project of Rs. 140.00
crore for which land has been acquired at Ahmedabad to put up additional capacity to manufacture Ball and Taper Roller,
The company is taking steps to boost its market share by approaching
OEM (Original Equipment Manufacturers) and also Railways, Defence Department for this bulk requirement.
DIVIDEND :-
In view of negligible profit, the Directors do not recommend any dividend for the year under Report.
DIRECTORS :-
During the year under report Mr. Sanjiv M. Gupta and Mrs. Sunayana R.
Vora have resigned as Directors of the Company. The Board expresses
its appreciation for valuable guidance and co-operation received by the
Company from them, time to time during their tenure as Directors.
Mr. Dhirajlal H. Vora and Mr. Pravin B. Kamdar, Directors of the
company retire by rotation and, being eligible, offer themselves for
reappointment.
FINANCE :-
The Company has approached Financial Institutions and OBC and Non
Resident Indian for the placement of 60,00,000 Equity Shares of the
Company on Private Placement Basis for which the necessary approval of
the members was already obtained in the 8th Annual General Meeting of
the Company.
The purpose of raising the resources through the above source is to
finance the working capital, requirements and also to finance the capital expenditure programme of the company.
In view of depressed market condition in Ball bearing Industry the
company has also approached their Bankers/Financial Institutions for
reschedulement in repayment of financial facilities granted by them.
The NCD on private placement are due for Redemption on 30th November,
1998. The same has been decided to be extended for a further period of
18 months as per the terms of the issue.
In view of applications made to Banks and Financial Institutions for
waiver of Interest, no interest has been provided in the accounts.
With reference to item No.11 under Notes forming part of Accounts, the
company has not given effects in Revised Account of relevant year,
since the matter is pending with Income Tax Authorities.
AUDITORS :-
M/s. S. M. Bhat & Co., Chartered Accounts, Mumbai retire as Statutory
Auditors of the Company at the conclusion of the ensuing Annual General
Meeting and being eligible offer themselves for reappointment. The
members are requested to appoint Auditors for the current year and fix
their remuneration. The present auditors has furnished a certificate
regarding their eligibility for re appointment as Company's Auditors
pursuant to Section 224 (1B) of the Companies Act, 1956.
PARTICULARS OF EMPLOYEES :
The information in accordance with the provisions under Section 217(2A)
of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 is not applicable as no employee of the Company,
during the year under report, was drawing salary as mentioned in the
said provision.
INFORMATION REGARDING CONSERVATION OF ENERGY ETC.
Information as required u/s 217(1)(e) of the Companies Act 1956 as may
be applicable, is annexed hereto.
INDUSTRIAL RELATIONS :
Industrial relations at the plant of the Company at Surendranagar
remain cordial. Directors wish to convey their appreciation for the
contribution made by the employees at all level.
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