HARSHA ENGINEERS LTD 14TH DIRECTORS' REPORT FOR THE YEAR ENDED 31ST MARCH 2000. (Rs. in Lakh) 1999-2000 1998-1999 Profit Before Depreciation & Tax 839.09 665.90 Less : Depreciation 328.39 252.11 Profit for the year before taxation 510.70 413.79 Provision for Taxation 57.00 45.00 Profit after taxation 453.70 368.79 Add : Surplus brought forward from Previous Year 909.80 692.80 ------- ------- Profit available for appropriation 1363.50 1061.59 ------- ------- Appropriations : 1. interim Dividend and Tax thereon 102.35 60.85 2. Proposed Dividend and Tax thereon 22.50 40.94 3. General Reserve 50.00 50.00 4. Balance carried to Balance Sheet 1188.65 909.80 ------- ------- 1363.50 1061.59 ------- ------- REVIEW OF OPERATIONS During the year under review, your Company achieved sales turn over of Rs. 5126.50 lacs registering a growth of about 44% over the previous year. The profit before depreciation and tax has grown to Rs. 839.09 lacs from Rs. 665.90 lacs, an increase of 26%. The net profit has increased to Rs. 453.70 lacs from Rs. 368.79 lacs registering a growth of 23%. At the end of the year, Company's reserves stood at Rs. 1664.21 lacs and Book Value of Share stood at Rs. 551.23 per Share. DIVIDEND Your Directors are pleased to inform you that an Interim Dividend at 25% had been paid on 6th March, 2000 and further recommend a final Dividend of 5% for the year ended 31st March, 2000 on the Shave Capital of Rs. 368.81 lacs, making a total of 30% for the year ended 31st March, 2000. The Dividend will absorb Rs. 18.44 lacs. FIXED DEPOSITS The company has not accepted any deposits from the public during the year ended 31 st March, 2000. Y2K COMPLIANCE The Company has successfully managed Y2K transition without any disruption All critical IT. systems covering business applications, process control, plant automation and other areas are Y2K compliant. DIRECTORS In accordance with the provisions of the Companies Act, 1956 and the Company's Articles of Association, Shri Jitendra U. Mamtora and Shri Dhirajlal C. Bhatt retire by rotation at the ensuing annual general meeting. but being eligible for reappointment offer themselves for the same. TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION Continuous efforts are made towards Technology Absorption, Adoption and Innovation. The thrust areas have been in improving the quality of all the products and in increasing productivity through cost effective programs and value engineering techniques. This has enabled the company to introduce a wider range of products and compete effectively in the market. During the year under review, the company has implemented an ERP package. AUDITORS The company's auditors M/s C. P. Shah & Co., Chartered Accountants, Ahmedabad will retire at the conclusion of ensuing Annual General Meeting and offer themselves for reappointment. INDUSTRIAL RELATIONS Relations with the company's employees continue to be cordial. The company has a good track record of harmonious relations with employees. ACKNOWLEDGEMENTS Your Directors gratefully acknowledge the, contributions made by the employees towards the success of the Company. Your Directors are also thankful for the cooperation and assistance received from the Financial Institutions, Bakers, Collaborators, Central and State Government Departments and Local Authorities.