you are here:

Amrit Corporation Ltd.

BSE: 507525 | NSE: | Series: NA | ISIN: INE866E01026 | SECTOR: Vanaspati & Oils

BSE Live

Nov 26, 16:00
812.95 19.45 (2.45%)
Volume
AVERAGE VOLUME
5-Day
103
10-Day
231
30-Day
338
16
  • Prev. Close

    793.50

  • Open Price

    775.05

  • Bid Price (Qty.)

    786.15 (3)

  • Offer Price (Qty.)

    815.00 (1)

NSE Live

Dec 27, 11:22
NT* 0.00 (0.00%)
Volume
No Data Available
0
  • Prev. Close

    -

  • Open Price

    -

  • Bid Price (Qty.)

    - (0)

  • Offer Price (Qty.)

    - (0)

Amrit Corporation is not listed on NSE

Annual Report

For Year :
2018 2016 2015 2014 2013 2012 2011 2010 2009

Director’s Report

ANNUAL REPORT 2005-2006 DIRECTOR'S REPORT To The Members, Your Directors have pleasure in presenting the 65th Annual Report on the business and operations of the Company together with Audited Accounts of your Company for the financial year ended 31st March, 2006. FINANCIAL HIGHLIGHTS The summarized financial results of the Company for the year under report are as under: (Rs. in lacs) 2005-06 2004-05 Sales & other income 48,361.60 48,603.14 Operating Profit (EBIDTA) 2,524.22 1,620.53 Interest 575.42 599.82 Extra-ordinary income - Profit on sale of land 393.94 238.94 - Income from sale of Paper Brands/Trade Marks 603.52 - Gross Profit (PBD) 2,946.26 1,259.65 Depreciation 623.66 546.59 Profit before tax (PBT) 2,322.60 713.06 Provision for - Current Tax 182.10 73.00 - Deferred Tax 679.32 152.07 Net. Profit for the year after tax (PAT) 1,461.18 487.99 Prior period adjustments 0.41 - Balance brought forward from previous year 1,258.13 1,204.52 Profit available for appropriation 2,719.72 1,692.51 Appropriaiions: - Proposed Dividend on (a) Equity Shares 192.80 128.53 (b) 15% Preference Shares (Interim Dividend) 3.01 - (c) Preference Shares @15% including - 77.02 accumulated dividend for past years (d) Corporate Dividend Tax 27.46 28.83 - General Reserve 200.00 200.00 - Preference Share Capital Redemption Reserve 40.50 - Balance carried forward 2,255.95 1,258.13 DIVIDEND Your Directors are pleased to recommend dividend @15% on the Equity Shares of Rs. 10/- each for the year ended 31st March, 2006. An interim dividend @15% for the period from 1st April, 2005 to 28th September, 2005 (i.e. up to the date of redemption) was paid at the time of redemption of the Preference Shares of Rs.10/- each on 28th September, 2005. OPERATIONS Your Company has made tremendous progress in its operations during the year ended 31st March, 2006 and has recorded impressive growth in the profitability. The sales & other income during the year under review was Rs.48,361.60 lacs as against Rs.48,603.14 lacs during the previous year. Record operating profit (EBIDTA) of Rs.2,524.22 lacs excluding the profit from land sale and sale of paper brands/trade marks, has been achieved as against Rs. 1,620.53 lacs in the previous year reflecting an increase of 56%. The growth during the year was primarily driven by better margins in the paper business and better realization from land sale in the Gagan Enclave township developed by the Company: * The improvement in performance of the paper business was despite various odds faced due to higher fuel & input costs, increased distribution costs due to highly volatile petro prices, etc. Your Company plans to manufacture speciality and other papers having higher growth potential which coupled with the modernization of pulping and paper making facilities will enable the Company to further improve the operating performance & input use efficiencies and post robust growth in the coming years; * As regards edible oil operations, though this segment recorded lower margins during the year mainly due to dumping of cheap Sri Lankan imported vanaspati in the Indian market, the company expects good growth in other outsourced FMCG products, namely, rice, salt etc. on the backdrop of strong revival of FMCG markets and increased consumption in India. The fresh policy measures at the Government level will mitigate to a large extent the impact of Sri Lankan Vanaspati in the current year in view of quota restrictions & import through canalizing agency; * The dairy segment is expected to post good growth on the back of strong growth planned by McDonalds' for its restaurants and the demand growth in other third party processing arrangements with Mother Dairy, PCDF, etc: * The Company's initiatives in the fast growing real estate sector have been rewarding as the 'Gagan Enclave' township developed by it at Ghaziabad is perceived as one of the best colonies in the area. The outlook for real estate business remains strong because of healthy demand growth of housing. The Company is taking further initiatives to involve fully into this business, which will be a separate business segment from the financial year 2006-07 onwards. The detailed performance of various businesses of the Company for the year ended 31st March, 2006 has been stated in the Management Discussion & Analysis Report which appears as a separate statement in the Annual Report. RESTRUCTURING SCHEME Members are aware that the several businesses carried on by your Company have different business dynamics and growth drivers. The nature of risk and competition involved in each of these businesses is distinct from others. Each of the businesses has tremendous growth and profitability potential and they require focussed leadership and management attention. As a part of the long term business planning and growth strategy, it is proposed to restructure/reorganize the businesses by way of segregation/consolidation into separate legal entities having distinct management focus. A composite Scheme of Arrangement between Amrit Banaspati Company Ltd. (ABCL), ABC Paper Ltd. (ABC Paper) and Amrit Enterprises Ltd. (AEL) and their respective shareholders has been proposed pursuant to the provisions of Section 391/394 of the Companies Act, 1956 which provides for: - Demerger of paper business of ABCL into ABC Paper - Demerger of edible oils business of ABCL into AEL and reorganization of the share capital of AEL; and - Reorganisation of the share capital of ABCL in the light of the aforesaid de-merger. The remaining businesses namely dairy and real estate shall continue to remain with the Company. The detailed terms of the proposed restructuring/ reorganization including the swap ratios and vesting of the assets/liabilities of the respective businesses, are set out in the Scheme of Arrangement which would be issued to the shareholders and others in accordance with the relevant provisions of the Companies Act, 1956. JOINT VENTURE The Lignin Precipitation System (LPS) Project of pollution control put-up in a joint-venture company, namely, M/s. Greencone Environs Pvt.Ltd., made significant progress during the year. The LPS project has been implemented and the commercial production commenced. Both the partners, i.e. your Company and Granit of Switzerland have brought in their equity contribution. Greencone has been sanctioned financial assistance in the form of term loan and working capital facilities by State Bank of India. The project is getting stabilized and is expected to achieve the optimum scale of operations shortly. FINANCE (a) Preference Shares: 4,05,000 - 15% Redeemable Cumulative Preference Shares of Rs.10/- each have beer redeemed on the due date of redemption on 28th September, 2005 and redemption proceeds together with the dividend upto the date of redemption have been paid to all the preference shareholders. (b) Term Loan: Punjab National Bank has sanctioned term loan of Rs.1,175 lacs for various capital expenditure schemes being implemented at Company's Paper Unit and Food Unit. (c) Fixed Deposits: As on 31st March, 2006, your Company had Fixed Deposits of Rs. 511.51 lacs. There were no outstanding deposits as on 31st March, 2006. There was no failure in making repayment of the fixed deposits on maturity and interest due thereon in terms of the conditions of your Company's Scheme. ANNUAL GENERAL MEETING The Registrar of Companies U.P. & Uttranchal, granted extension of time upto 27th. December, 2006 for holding the 65th Annual General Meeting of the Company. SUBSIDIARY COMPANY Messrs ABC Paper Limited has became a wholly-owned subsidiary of the Company during the financial year under review. The statement pursuant to Section 212 of the Companies Act, 1956 and the Audited Accounts of M/s. ABC Paper Ltd. are annexed to this Report. As a part of the Restructuring Scheme, the Company has transferred/assigned the paper brands/trade marks to the Subsidiary for a consideration of Rs.603.52 lacs. CONSOLIDATED FINANCIAL STATEMENTS As required pursuant to the Accounting Standard-91, the Consolidated Financial statements are annexed and form part of the Annual Report and Accounts. COST AUDIT The Central Government has directed cost audit to be carried out every year in respect of Vanaspati and Paper. The cost audit is in progress and the reports will be submitted to the Central Government. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS & OUTGO: The information relating to conservation of energy, technology absorption and foreign exchange earnings & outgo as required under Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 is given in Annexure which from part of this Report. PERSONNEL Cordial relations were maintained throughout the year in all the Units of the Company. The Directors express their appreciation for the contribution made by the employees to the operations of the Company during the year. The particulars of employees as per Section 217(2A) of the Companies Act, 1956 are set out in the Annexure which forms part of this Report. However, as per the provisions of Section 219(1)(b)(iv) of the said Act, the report and accounts are being sent all the members of the Company excluding the aforesaid information. This statement shall be made available for inspection by any member during working hours for a period of 21 days before the date of the Annual General Meeting. Any member interested in obtaining such particulars may write to the Company Secretary at the Registered Office of the Company. DIRECTORS The Board of Directors was strengthened with the induction of Shri Vikram Bajaj and Shri Pavan Khaitan, as Additional Directors on 3rd March, 2006. Both Shri Vikram Bajaj and Shri Pavan Khaitan retire at the ensuing general meeting of the Company and being eligible offer themselves for re- appointment. Shri Pavan Khaitan has also been appointed as Managing Director of the Company on 3rd March, 2006. In accordance with the provisions of the Companies Act, 1956 and Articles of Association of the Company, Shri K.R. Ramamoorthy, Shri L.M. Suri and Shri Praveen Kumar retire by rotation and are eligible for re-appointment. AUDITORS M/s V. Sahai & Co., Chartered Accountants, Statutory Auditors, retire at the forthcoming Annual General Meeting and being eligible, offer themselves for reappointment. DIRECTORS' RESPONSIBILITY STATEMENT As required under section 217(2AA) of the Companies Act, 1956, your Directors confirm: (i) That in the preparation of the annual accounts, the applicable accounting standards has been followed; (ii) That the accounting policies selected and applied are consistent and the judgements and estimates made 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 and of the profit or loss of the company for that period; (iii) That proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. (iv) That the annual accounts have been prepared on a going concern basis. CORPORATE GOVERNANCE A Report on Corporate Governance along with a Certificate from the Auditors of the Company regarding compliance of the conditions of Corporate Governance pursuant to Clause 49 of the listing agreement with stock exchanges is annexed and forms part of the Annual Report. ACKNOWLEDGMENT Your Directors convey their sincere thanks to the various agencies of the Central Government, State Governments, Banks and other concerned agencies for all the help and cooperation extended to the Company. The Directors also deeply acknowledge the trust and confidence the shareholders and investors have placed in the Company. Your Directors also record their appreciation for the dedicated services rendered by the workers, staff and officers of the Company. For and on behalf of the Board New Delhi N.K. BAJAJ Sept. 27, 2006 Chairman & Managing Director STATEMENT CONTAINING PARTICULARS PURSUANT TO THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988 AND FORMING PART OF DIRECTORS' REPORT I. CONSERVATION OF ENERGY (a) Energy conservation has been an important thrust area in all the Units of the Company and is continuously monitored. Various on-going measures for conservation of energy include (i) use of energy efficient lighting and better use of natural lighting (ii) reduction of energy loss, (iii) replacement of outdated energy intensive equipment and (iv) revamping of steam lines to reduce leakages. (b) The Company it continuing the system of regular energy audit. Energy conservation is an ongoing process and new areas are continuously identified and suitable investments are made, wherever necessary. (c) The adoption of energy conservation measures has helped the Company in its drive to improve efficiency, reduction in cost and reduced machine down-time. POWER & FUEL CONSUMPTION Edible Oils Paper Dairy Products 2005-06 2004-05 2005-06 2004-05 2005-06 2004-05 1. ELECTRICITY (a) Purchased Unit (lacs KWH) 68.17 69.99 84.86 182.03 - - Total amount (Rs.lacs) 282.33 291.47 378.89 719.81 - - Rate/Unit (Rs./KWH) 4.14 4.16 4.46 3.95 - - (b) Own generation i) Through Diesel Generator Unit (lacs KWH) 0.20 0.85 - 0.10 16.17 15.36 Unit/Ltr. of Diesel Oil 2.91 3.19 - 3.60 3.21 3.29 Cost/Unit (Rs./KWH) 8.56 6.18 - 5.96 8.40 6.52 ii) Through Steam Turbine/ Generator - - - - - - Unit (lacs KWH) - - 340.91 244.52 - - Cost/Unit (Rs./KWH) - - 3.24 3.19 - - 2. COAL (Specify quality and where used) Quantity (Tonnes) - - - - - - Total cost (Rs.lacs) - - - - - - Average rate (Rs.) - - - - - - 3. FURNACE OIL Total quantity - - - - 343.55 314.33 Total cost - - - - 56.90 43.92 Average rate/Ltr. - - - - 16.56 13.97 4. OTHERS (a) Rice Husk (for Boiler) Quantity (Tonnes) 17,493 14,917 44,539 32.657 - - Total cost (Rs.lacs) 299.42 264.32 845.20 541.07 - - Rate/Unit (Rs.MT) 1,712 1,772 1,898 1.657 - - (b) HSD (for Boiler) Quantity (K.Ltr.) - 84 - - - - Total amount (Rs.lacs) - 16.61 - - - - Rate/Unit (Rs./K.Ltr.) - 19,730 - - - - 5. CONSUMPTION/TONNE OF PRODUCTION: Production (Tonnes) 57,122 57,491 42,583 40.625 5,784 5,613 Electricity/Tonnes (KWH) 119 123 1,000 1.050 279 273 Others - - - - - - II. TECHNOLOGY ABSORPTION Research and Development: (a) The Company has developed its own technology base in all its operations. The R & D centres have been set up in all the manufacturing units which carry out research work in several areas including material and process developments towards efficiency improvements, quality improvements, capacity optimization, waste reduction etc. Apart from process improvements, the research and development also aims at finding equivalent substitutes of various inputs and packaging materials to have cost savings without compromising quality. The Paper Unit has entered into a joint-venture arrangement with Messrs Granit Rocherche Development S.A. of Switzerland for implementation of Lignin Precipitation System project to reduce the pollution load, through a joint-venture company, Messrs Greencone Environs Pvt. Ltd. Test marketing of the lignin recovered in the process is going on. The lignin can be used in many applications in the chemical industry. (b) The Company has derived benefits of product diversification, cost reduction and better quality as a result of the above efforts. (c) The research and development is an on-going exercise and suitable efforts will continue to be made in future. (d) The expenditure on R & D has been as follows: (Rs. in lacs) 2005-06 2004-05 (i) Capital - - (ii) Recurring 3.79 5.12 (iii) Total 3.79 5.12 (iv) Total R&D expenditure as a percentage of turnover 0.01% 0.01% Technology absorption, adaptation and innovation: The Company has not directly imported any technology for its products. However, for the Lignin Precipitation System project put-up in a joint- venture company, namely, Greencone Environs Pvt.Ltd., Sailakhurd, the technology has been developed by the JV partner, Messrs. Granit Rocherche Development S.A. of Switzerland. III. FOREIGN EXCHANGE EARNINGS & OUTGO Particulars with regard to foreign exchange earnings & outgo appear on page 56 of the Annual Report and Accounts. For and on behalf of the Board New Delhi N.K. BAJAJ September 27, 2006 Chairman & Managing Director

Director’s Report