1. DIRECTORS REMUNERATION :
(Rupees 000s) (Rupees 000s)
Salaries and allowances
paid to Wholetime Director 3,542 3,274
Contribution to Provident Fund 164 168
Superannuation Fund 204 209
Perquisites 299 260
(a) Includes remuneration of Mr. R. Ragunath who has been appointed as
Managing Director effective 1st February, 2004. This is subject to
approval of Central Government.
(b) Computation of net profits in accordance with Section 198 of the
Companies Act, 1956 and the commission payable to Directors.
(Rupees 000s) (Rupees 000s)
Net Profit after taxation (36,318) 34,021
Directors Remuneration 4,209 3,911
Directors fees/Commission 91 350
Book deficit on fixed assets
sold, scrapped, etc. (net) 5,106 66,213
Provision for diminution in value of
investments and excess of cost over
fair value of current investments (net),
included in miscellaneous expenses. 194 113
Taxation for the year (7,135) 20,796
Net profit for Section 198 of
the Companies Act, 1956 (33,853) 125,404
Commission to Non-Wholetime Directors at 1% Nil 1,254
Commission payable for the year restricted to Nil 240
3. Estimated amount of contracts remaining to be executed on Capital
Account and not provided for Rs. 14.44 (000s) [Previous year Rs. 52.49
4. Contingent Liability:
- Claims against the Company not acknowledged as debts Rs. NIL
[Previous year Rs. 2.37 (000s)].
- Bills discounted not matured Rs. 242.66 (000s) [Previous year Rs.
5. The Companys Bankers have given guarantees amounting to Rs. 7.32
(000s) [Previous year Rs. 3.32 (000s)]. Guarantees are secured by
counter guarantees given by the Company.
6. The Company operates in Single Business Segment of Manufacturing
of Soaps & Detergents for Brand Owners, pursuant to the processing
agreement with M/s. Hindustan Lever Ltd., for manufacturing goods on
job work. In line with the changes in the demand profile for products
manufactured by the Company and also the on going restructuring and
streamlining of the manufacturing facilities and operations, the unit
has achieved the capability to manufacture Soaps & Detergents including
Soaps, Soap Noodles, Detergent Bars/Cakes and Scouring Bars from the
same manufacturing facilities.
7. Disclosure of movement of provisions : (Rupees 000s)
01/04/2004 Additions Deductions 31/03/2005
Leave Encashment 1,753 134 599 1,288
Gratuity 14,021 - 5,476 8,545
TOTAL 15,774 134 6,075 9,833
8. In line with AS-28, an impairment Rs. 4,231 (000s) was taken for
the drop in estimated net realizable value of fixed assets held for
9. No dues to small scale industries as on 31st March, 2005 and the
The above information has been determined to the extent such parties
have been identified on the basis of informations available with the
Company. This has been relied upon by the Auditors.
10. EARNING PER SHARE (EPS): 2004-2005 2003-2004
a) Weighed average number of shares 51,366,177 51,366,177
b) Net Profit/(Loss) after Tax and before
Exceptional Item (Rupees000s) (7,581) 34,021
c) Net Profit/(Loss) after Tax and after
Exceptional Item (Rupees000s) (36,318) 34,021
d) Basic and Diluted Earnings Per Share (Rupees) (0.15) 0.66
- Before Exceptional Item
e) Basic and Diluted Earnings Per Share (Rupees) (0.71) 0.66
- After Exceptional Item
11. INSTALLED ANNUAL CAPACITY (TONNES) : 2004-2005 2003-2004
a) Soaps & Detergents including Soap/Soap Noodles, 45,000 45,000
Detergent Bar/Cakes & Scouring Bar
b) Detergent Powder 15,000 15,000
c) Fatty Acids 30,000 30,000
Notes : 1. Licensing of capacities is not applicable.
2. All capacities are expressed on triple shift basis.
3. The Installed Capacities are as per the certificate given by the
Technical Officer-in-Charge on which the Auditors have relied, being a
12. i) Disclosure of transactions between the Company and M/s.
Hindustan Lever Ltd. who is a major shareholder of the Company holding
32.9% of the capital.
a) Sales 52,150 263,987
b) Processing Income 160,996 252,630
c) Purchase of Raw Materials/Fixed
Assets/Stores & Spares 43,988 168,506
d) Compensation Claim - 56,882
e) Sale of Fixed Assets 6,650
f) Outstanding dues from M/s. Hindustan
Lever Ltd. as.on 31.03.05 (13,512) 23,638
ii) Key Management Personnel
Mr. R. Ragunath - Managing Director
The remuneration of key managerial personnel has been disclosed in Note
No. (2) above.
13. Balance sheet abstract and Companys general business profile as
required in terms of the Part IV of the Schedule VI of the Companies
Act, 1956 is attached herewith.
14. Previous years figures have been regrouped wherever necessary.