Shri Bhagavati Bright Bars Ltd. के निदेशक की रिपोर्ट

Mar 31, 1998

The Directors have great pleasure in presenting their Seventh Annual Report and the Audited Accounts of the Company for the Financial year ended on 31st March 1998.

FINANCIAL RESULTS :

The Financial Results of the company for the year ended on 31st March 1998 as compared to previous year are summarised below.

1997-98 1996-97 Amount Rs. Amount Rs.

Profit Before Interest, Dep. & Taxation 1,22,52,319 1,23,86,106

Less : (i) Interest & commission. 45,42,808 48,54,025

(ii) Depreciation. 17,81,596 17,78,977

Profit Before Tax 59,27,915 57,53,104

Provision for Taxation - -

Profit After Tax 59,27,915 57,53,104

SKIPING OF DIVIDEND :

Eventhough the company has registered a very good performance for the year, in view of the expansion programme, the directors feel that it would serve the interest of the company better if the surplus accumulated is ploughed back in to operations of the company to ensure long term strength and stability the directors, therefore do not recommend any dividend for the year.

OPERATIONS :

The Company recorded an impressive performance even in adverse market situation during the year under review. Domestic turnover, at Rs. 2102.56 lacs represents an increase of 4.08%. Export Sales has been reduced from Rs. 69.10 to Rs. 57.03 lacs during current year due to sluggish market.

FINANCE :

Interest payments and repayment of principal to the term landing Institutions and Banks were met in time and in full during the year under review.

ENVIRONMENTAL PROTECTION :

The Company continues to attach permanent importance to the conservation and improvement of the environment.

PUBLIC DEPOSITS :

During the year under review, the company has accepted fixed deposits from its employees, Members and Directors which is exempted from the purview of sec. 58 A of the Companies Act, 1956, As there was no deposits unclaimed or unpaid by the Company after the date on which it has become due for payment or renewal on 31st March 1998 the information regarding such deposits are not furnished.

INSURANCE :

All Insurable assets of the Company are Insured.

FOREIGN EXCHANGE EARNING & OUTGO :

The Company has neither any earnings nor any outgo of Foreign Exchange during the year.

INDUSTRIAL RELATION :

The Employer-Employee relation were cordial throughout the year under review. The Company's performance owes much to their efforts.

A. CONSERVATION OF ENERGY :

Energy conservation is high priority area for the company. Our continued efforts to reduce and optimise the use of energy consumption has shown positive results better controls are planned to achieve further reduction in energy consumption.

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Mar 31, 1997

The Directors have great pleasure in presenting their Sixth Annual Report and the Audited Accounts of the Company for the Financial year ended on 31st March 1997.

Financial Results

The Financial Results of the company for the year ended on 31st March 1997 as compared to previous year are summarised below.

1996-97 1995-96 Amount Amount Rs. Rs.

Profit Before Interest, Depreciation & Taxation 1,23,86,106 94,46,335

Less : (i) Interest & commission. 48,54,025 40,51,992 (ii) Depreciation. 17,78,977 13,42,000

Profit Before Tax 57,53,104 40,52,343 Provision for Taxation - - Profit After Tax 57,53,104 40,52,343

* Skiping of Dividend

Eventhough the Company has registered a very good performance for the year, inview of the expansion programme, the directors feel that it would serve the interest of the company better if the surplus accumulated is ploughed back in to operations of the Company to ensure long term strength and stability the directors, therefore do not recommend any dividend for the year.

* Operations

The Company recorded an impressive performance during the year under review. Domestic turnover, at Rs. 2020.19 Lacs represents an increase of 39.64% as against previous year's sales. Export sales increased from Rs. 5.71 to Rs. 69.10 Lacs this year.

The Company has also undertaken expansion project for increase in installed capacity of Bright Bars, Installation of 7" Rolling mill & Automatic Rolling Mill out of which the Company has already started a commercial production for expanded capacity of Bright Bars & 7" Rolling Mill. For Automatic Rolling Mill division the Company has already invested a sum of Rs. 232.90 Lacs during this financial year and expect to complete the entire expansion project by the end of this financial year.

* Finance

Interest payments and repayment of principal to the term landing Institutions and Banks were met in time and in full during the year under review.

* Environmental Protection

The Company continues to attach permanent importance to the conservation and improvement of the environment.

* Directors

Shri Kurjibhai N. Vekaria and Shri Niranjankumar S. Vekaria Directors of the company retires from the office by rotation in accordance with provisions of Articles of Association of the company and applicable provisions of the Companies Act, 1956, and being eligible offer themselves for re-appointment.

* Particulars of Employee

No Employee was in receipt of remuneration exceeding the limits prescribed under section 217(2A) of the Companies Act, 1956 read with The Companies (Particulars of Employee) Rules 1975.

* Conservation of Energy, Technology absorption, Foreign Exchange earnings and outgoes

Details of Energy conservation, and research and development activities undertaken by the Company along with the information in accordance with the provisions of section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of particulars in the report of Board of Directors) Rules, 1988, are given in Annexure "A" to the Director's Report.

The Company has neither any earnings nor any outgo of Foreign Exchange during the year.

Disclosure as per Clause 43 of the Listing Agreement with Stock Exchanges

Clause 43 of the Listing Agreement executed with the Recognised Stock Exchanges requires comparision of the projections made in prospectus issued during the year and actual performance, the details is as under:

Profitability Projections Actual

Total Income 3266.52 2095.01

Profit after tax 194.94 57.53

Earning per share 3.35 1.15

Explanations :

The decrease in Total Income, Profit & EPS is due to delay in implementation schedule of Automatic Rolling Mill, However the Company has already started commercial production of Bright Bars, Wire Products & CTD Bars as stated in prospectus.

* Auditors

Auditors M/s. Harish Mehta & Co. Chartered Accountants hold office until the conclusion of ensuing Annual General Meeting and having furnished the required certificate u/s 224(1b) of the Companies Act, 1956, are eligible for reappointment.

Necessary resolution for their appointment is proposed as an ordinary resolution pursuant to applicable provisions of the Companies Act, 1956, The Directors recommends their reappointment.

* Public Deposits

During the year under review, the company has accepted fixed deposits from its employees, Members and Directors which is exempted from the purview of sec. 58A of the Companies Act, 1956, As there was no deposits unclaimed or unpaid by the Company after the date on which it has become due for payment or renewal on 31st March, 1997, the information regarding such deposits are not furnished.

* Insurance

All Insurable assets of the Company are Insured.

* Industrial Relation

The Employer-Employee relation were cordial throghout the year under review. The Company's performance owes much to their efforts.

A. CONSERVATION OF ENERGY

Energy conservation is high priority area for the company. Our continued efforts to reduce and optimise the use of energy consumption has shown positive results better controls are planned to achieve further reduction in energy consumption.

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Mar 31, 1996

The Directors have great pleasure in presenting their Fifth Annual Report and the Audited Accounts of the Company for the Financial year ended on 31st March 1996.

* Skiping of Dividend

Considering the actue need of the funds for the future requirements. Your Directors regrets their inability to recommend any Dividend and hence skip the Dividend for the year 1995-96.

* Public Issue of Equity shares

During the Year under review the company has came out with public Issue of 27,50,000 Equity shares of Rs.10/- each for cash at par aggregating to Rs.275.00 Lacs. The company received good response from the investors and public issue was over subscribed, by 2.53 times. The Equity shares of the company are listed in time with Rajkot, Ahmedabad, Vadodara and Bombay Stock Exchange.

Once again your directors take this opportunity to express their gratitude towards the Investors for their valuable support in making the public issue of the company a grand success.

* Operations

During the year under review the company achieved the production of Bright Bars & Rolled Product 6193.697 and 3908.103 tonnes respectively which was marginally higher by 382.029 & 3234.813 tonnes for Bright Bars & Rolled product respectively over the previous year.

* Finance

Interest payments and repayment of principal to the term landing Institutions and Banks were met in time and in full during the year under review.

* Environmental Protection

The Company continues to attach permanent importance to the conservation and improvement of the environment.

* Directors

Shri Kurjibhai N. Vekaria and Shri Niranjankumar S. Vekaria Directors of the company retires from the office by rotation in accordance with provisions of Articles of Association of the company and applicable provisions of the Companies Act, 1956, and being eligible offer themselves for re-appointment.

* Rights cum Public Issue of securities

In view of the fund requirement of the Company and to meet the growth opportunities and forward integration programme, the company intends to issue "Securities" upto Rs.10/- Crores for which you shall be kept fully awares at appropriate time in the near future and your whole hearted support is expected by way of subscriptions to the said issue. The proceeds of the issue is planned to be invested in the expansion of the Present Project.

* Particulars of Employee

No Employee was in receipt of remuneration exceeding the limits prescribed under section 217 (2A) of the Companies Act, 1956 read with The Companies (Particulars of Employee) Rules 1975.

* Conservation of Energy, Technology absorption, Foreign Exchange earnings and outgoes

Details of Energy conservation, and research and development activities undertaken by the Company along with the information in accordance with the provisions of section 217 (1) (e) of the Companies Act, 1956, read with the Companies (Disclosure of particulars in the report of Board of Directors) Rules, 1988, are given in Annexure "A" to the Director's Report.

The Company has neither any earnings nor any outgo of Foreign Exchange during the year.

Disclosure as per Clause 43 of the Listing Agreement with Stock Exchanges

Clause 43 of the Listing Agreement executed with the Recognised Stock Exchanges requires comparision of the projections made in prospectus issued during the year and actual performance, the details is as under:

Profitability Projections Actual

Total Income 2672.61 1467.49 Profit after tax 167.35 40.52 Earning per share 3.35 1.00

Explanations:

1. The variation between the projections & actual is attributable to delay in Public Issue.

2. Projections in Prospectus were based on the assumption that the funds in the Public Issue will be utilised from 1st January 1995 onwards while the Public issue funds were available in end of July 1995.

3. Additional bank borrowing for 1995-96 which is under consideration by the bank.

4. Due to delay in implementation schedule for automatic rolling mill the company has not achieved targetted results.

5. However the company has already started commercial production for Bright Bars, wire Products and CTD bars as stated in prospectus dated 21.04.1995.

* Auditors

Auditors M/S Harish Mehta & Co. Chartered Accountants hold office until the conclusion of ensuing Annual General Meeting and having furnished the required certificate u/s 224 (1b) of the Companies Act, 1956, are eligible for reappointment.

Necessary resolution for their appointment is proposed as an ordinary resolution pursuant to applicable provisions of the Companies Act, 1956, The Directors recommends their reappointment.

* Public Deposits

During the year under review, the company has accepted fixed deposits from its employees, Members and Directors which is exempted from the purview of sec. 58 A of the Companies Act, 1956, As there was no deposits unclaimed or unpaid by the Company after the date on which it has become due for payment or renewal on 31st March, 1996, the information regarding such deposits are not furnished.

* Insurance

All Insurable assets of the Company are Insured.

* Industrial Relation

The Employer-Employee relation were cordial throughout the year under review. The Company's performance owes much to their efforts.

* Appreciation

Your directors take this opportunity to express their sincere thanks for the continued financial support and valuable guidance and assistance provided by the various departments of Central and State government, Financial Institution, Bankers and Business organisation. The Board also wish to place on record its warm appreciation for dedicated services rendered by the employees of the company.

Your directors are also grateful to the investing public for the confidence reposed to the company and are confident that your company will continue to receive such cooperation from all in future also.