TO THE MEMBERS OF KOTHARI FERMENTATION AND BIOCHEM LTD.
The directors are pleased to present the 22nd Annual Report together
with the Audited Accounts for the year ended on 31st March 2012:
1. FINANCIAL RESULTS (Rs. in lacs)
MANUFACTURING 3524.90 2480.30
PROFIT BEFORE INTEREST
& DEPRECIATION 478.67 308.06
FINANCE CHARGES 103.44 29.94
DEPRECIATION 143.04 138.33
PROFIT BEFORE TAX 232.20 139.79
TAXES (Deferred Tax) 71.80 NIL
NET PROFIT/(LOSS) AFTER
TAX FOR THE YEAR 160.39 139.79
During the year, the capital expenditure incurred on balancing
equipments has resulted in better utilization of plant & machineries.
Various steps have been initiated for increasing production and
improving operating efficiencies.
The company achieved production of 8481 MT during 2011-12 as compared
to 6530 MT in previous year. Resultantly the turnover of the company
from manufacturing activities has Increased to Rs. 3524.90 Lacs during
the year 2011-12 as compared to Rs. 2480.30 Lacs during previous year.
The profitability of the company is Rs. 160.39 Lacs during the year
2011-12 as compared to profit of Rs. 139.79 Lacs during previous year.
Dividend for the year has not been proposed in order to plough back the
profit for the growth of the Company.
3. CURRENT YEAR''S OUTLOOK
The additional investment made in plant & machineries will result in
increase of production. Various steps have been taken for cost
reduction and improving operating efficiencies.
The Company Plan to Install additional Equipment in Plant and Machinery
which will result in increase of production as well as up-gradation of
the quality of the products.
In view of above it is expected that the production and profitability
of the company will substantially improve during the current year.
The State Excise department have increased the quota of molasses from
17352 MT per annum to 30720 MT per annum. Electricity connection load
have also been enhanced from 1700 KVA to 3000 KVA. This will result in
sufficient availability of resources and increase in production.
4. FIXED DEPOSITS
The Company has not accepted any deposit from public during the year
under review, which would fall under section 58-A of the Companies Act,
In accordance with the provisions of the Companies Acts, 1956 and the
Articles of Association of the Company, Mr.Prasanna Kumar Pagaria is
retiring from the Board by rotation and being eligible offers himself
6.CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The statement containing the necessary information under 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, is annexed to this report as Annexure-I.
Your company keeps harmonious relations with all its employees. No
employee is drawing salary more than the limits prescribed under
section 217 (2A) of the Companies Act, 1956, read with the Companies
(Particulars of Employees) Rules, 1975.
M/s Nahata Jain & Associates, Chartered Accountants, auditors of your
company retire at the ensuing annual general meeting and being eligible
offers themselves for re-appointment. The Board recommends their
appointment as auditors from the conclusion of this meeting to the
conclusion of next annual general meeting. The notes on accounts are
self-explanatory with regards to auditors'' observations.
9. COMPLIANCE CERTIFICATE FROM COST AUDITORS
Pursuant to section 233B of Companies Act, 1956 read with Cost Audit
Rules 2011, the Company will receive the Cost Audit Compliance Report
for the Financial Year-2011-12 from M/s HMVN & Associates, Cost
Accountants, Delhi and file the same with Govt. within stipulated time.
10. COST AUDITOR
The Board of Directors of your Company has recommended M/s HMVN &
Associates, Cost Accountants, Delhi to be appointed as a Cost Auditors
for the Financial Year-2012-13, subject to approval of the Central
Government under section 233B of the Companies Act, 1956.
11. LISTING OF SHARES
The company''s shares are listed at Stock Exchanges situated at Delhi,
Mumbai, Kolkata, Jaipur and Guwahati. The listing at Delhi and Mumbai
is continued, and the listing fee has been paid upto date. Action has
already been initiated for delisting of shares from stock exchanges at
Kolkata, Jaipur, and Guwahati. All the formalities have been complied
with in relating to delisting and as such the listing fee to these
Stock Exchanges were not paid.
12. CORPORATE GOVERNANCE
The provisions of clause 49 of the listing agreement relating to
corporate governance are applicable to the company. So there is a
separate section on Corporate Governance in the annual report of the
company, with a detailed compliance report on Corporate Governance.
11. MANAGEMENT DISCUSSION AND ANALYSIS
A report on Management Discussion and Analysis (MDA), which forms part
of this Report, inter-alia, deals adequately with the operations as
also current and future outlook of the Company.
12. DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Sec.217 (2AA) of the Companies Act, 1956 the directors
a) that in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
b) that the directors have selected accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the company at the end of the financial year 2011-12 and of the
profit or loss of the company for that year.
c) 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 for safeguarding the assets of the
company and for preventing and detecting fraud and other
d) that the directors have prepared the annual accounts on a going
Your directors place on record their sincere appreciation for the
wholehearted devotion and co-operation extended by the employees at all
levels, which has been a source of strength of the company.
The directors also wish to thank and deeply acknowledge the
cooperation, assistance and support extended by the shareholders, the
Dealers, vendors, bankers and financial institution of the Company.
For and on behalf of the Board
Pramod Kumar Kothari
Place : New Delhi
Date : 29th August, 2012