The Directors present their 18th Annual Report together with the
accounts for the financial year ended 31st March 1999.
The highlights of the operating results for the year are summarised
31st March 31st March
(Rs. in 000) (Rs. in 000)
Turnover & other income 107048 31156
Surplus (Deficit) before
Depreciation (6015) 515
Provising of Sales tax/Entry
tax for earlier yrs. 10173 -
Depreciation 1740 438
Profit/(Loss) for the year (17928) 77
PERFORMANCE AT A GLANCE
During the year under review the production was possible only in the
last 5 months and could do processing of 12044 MT of Soyabean &
refining of 1871 MT oil. Due to adverse conditions of export market
and massive imports of oil, the margins were under strain. In the
first six months production could not be carried out due to the dispute
between the company and the sales tax department. Due to this the
company could not beg any contact for Job work and due to limited
resource the full production capacity also could not beg utilised
during the balance period.
Company has made a reference to the BIFR under Sick Industrial
Companies (Special Provision). Act 1985 on 24.8.98 and the Company has
been declared a sick company by Hon. BIFR on 5.3.99 and Industrial
Development Bank of India has been appointed operating Agency under sec
17 (3) of the SICA. to examine the viability and prepare a viability
M/s IDBI has already submitted the Draft rehabilitation scheme to the
FUTURE OUT LOOK :
During the first seven months of the year the capacity utilisation was
12% only due to shortage of working funds. The company has operated
its plant during Nov.99 & Dec.99 (till date) at about 80% capacity by
making alternate arrangement of working capital and inspite of
depressed condition of the market due to massive imports of oil, has
been able to achieve break even point due to various technical
modifications and if the Govt action of increase in import duty on
edible oils materialises, the future is definitely better.
Conservation of Energy, Technology Absorption & Foreign Exchange
Earnings and out go :- The relevant data is given in the Annexture
forming part of this report.
Shri V.C. Chaturvedi has joined the Board of the Company in April 99 as
nominee of BIFR and the company has been able to obtain valuable
Guidance from him.
Shri Bhagwan Das Kabra and Shri Venkatesh Kumar Kabra retires by
rotation and being eligible offer themself for-reappointment.
R.C. Baheti & Co., Auditors of the Company retire and being eligible
offer themselves for re-appointment.
PARTICULARS OF EMPLOYEES
Since no employee of the Company has been drawing more than Rs.
50,000/- pm or Rs. 6,00,000/- per annum during the period, section 217
(2-A) of the Companies Act is not applicable.
(A) CONSERVATION OF ENERGY
(i) Energy Conservation measures taken Company is monitoring the energy
consumption. Transmission losses of power and heat losses are
minimised by operating at high power factors and providing adequate
(ii) Additional investment and proposal, if any being implemented for
reduction of consumption of energy :-
No additional investment has been made. The conversion of boilers to
fluidised system has been deferred due to shortage of long-term finance
sources available with the company presently.
(iii) Impact of measure (i) & (ii) above for reduction of energy
consumption and subsequent impact on the cost of production of goods :-
The results of measures are under constant review and it is expected
that benefits will accrue to the company under normal course
(iv) Total energy, energy consumption and energy consumption per unit
RESEARCH & DEVELOPMENT (R & D)
Specific Areas in which R & D carried out by the Company :- improving
Benefits derived as a result of the above R & D :- Better consumer
Future plan of action :-
Reduction in the cost of Chemicals.
Expenditure on R & D :
a) Capital It has not been
b) Recurring accounted for
c) Total separately.
d) Total R & D
Expenditure as % of turnover.
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION :
i) No significant progress has been made for adoption of any
technology. Efforts were made for improving product quality.
ii) There was an improvement in the quality of the product manufactured
by the Company.
iii) No technology has been imported by the Company.
FOREIGN EXCHANGE EARNINGS & OUTGO :
Foreign Exchange Used Nil
earned directly Nil