The Directors of your Company have pleasure in presenting their
Twelveth Annual Report and Accounts for the year ended 31st March,
FINANCIAL RESULTS :
The Financial results for the Company under review are as follows :
Gross Profit Before Depreciation 7.97 13.49
Provision for Depreciation 82.57 76.14
Amortisation of Miscellaneous Expenditure 17.11 17.12
Profit/(Loss) before Taxation (91.72) (79.76)
Less : Provision for Taxation - -
Profit/(Loss) after Taxation (91.72) (79.76)
Profit Brought forward From previous year (5.46) 31.30
Available Surplus/(Deficit) (97.18) (48.46)
Surplus/(Deficit) Carried forward (97.18) (48.46)
At the very outset, your directors are glad to inform you that despite
difficult business environment prevailing in the pesticide Industry,
your Company could achieve reasonable growth in volumes and operating
margins by recording a turnover of Rs. 2266.68 lakhs (Previous year Rs.
2405.67 lakhs). This is to be viewed against the back drop of steep
price erosin and static sales growth in the pesticide industry. The
reasons for moderate performance is mainly due to further continuation
of adverse season for commercial crops, which not only had a negative
effect on the pesticide consumption but also resulted in poor yields to
the user segment. Inspite of poor Industry performance, your company
could increase its volumes through continuous efforts on market
penetration and widening distribution net work there by improving its
market share on food crops by launching new products and sustaining its
investment in marketing efforts on key Products.
During the year the Monocrotophos plant was to shutdown for 3 months
for installation of new equipment intended for manufacturer of
Quinolphos. The Trial runs have been carried out and commercial
production is expected to be commenced shortly.
Keeping in view the financial performance of the Company, yours
Directors do not recommend any dividend for this year also.
CAPITAL EXPENDITURE :
During the year review the company has incurred capital Expenditure of
Rs. 214.13 Lakhs.
FUTURE OUTLOOK :
Pesticide Industry today is witnessing certain positive change and is
passing through a transformation to a much better phase. There has been
major shakeouts of many units leaving only few players having strong
distribution net work in the market including your company who have
survived the turbulent times. Monocrotophos is also likely to improve
as some of the units in the industry have stopped or curtailed
production. Your company is re-orienting its strategies to take
advantage of this situation and it hopes to operate at its optimum
capacity. Plans are also on the anvil for introducing value-added
products so as to improve its performance. You company is constantly
endeavoring to improve its existing product portfolio and develop new
ones intandem with the customer's needs.
The current year started on a promising note with sales picking up.
Company's various initiatives like adding new products to the existing
product range, aggressive marketing initiatives supported by
improvement in supply chain management, various cost reduction measures
and focus on improving customer value would be able to sustain the
growth of the company and better its performance in the current year.
Y2K PROJECT :
Your company has successfully rolled over to the new millennium with
out any problem.
In accordance with the requirements of the Companies Act, 1956, Sri. P.
Bhaskara Rao and Smt. P. Durgamba retire by rotation and being
eligible, offer themselves for reappointment.
M/s. Love Lock & Lewes, Chartered Accountants, the Company's Auditors
retire at the conclusion of this Annual General Meeting. They have
intimated their willingness to accept the re-appointment and have
confirmed their eligibility under Section 224(1-B) of the Companies
PARTICULARS RELATING TO EMPLOYEES :
Information required under Section 217(1)(e) of the Companies Act, 1956
read with Companies (Particulars of Employees) Rules, 1975, are set out
in a separate statement attached hereto and forms part of this report.
INDUSTRIAL RELATIONS :
The industrial relations continue to be cordial during the year.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, EXPORTS & FOREIGN
EXCHANGE EARNINGS AND OUTGO AND PARTICULARS OF EMPLOYEES :
Your Company is not engaged in power intensive industry and the average
power consumption has been well within the norms. The requisite
information in terms of Companies (disclosures of particulars in the
report of Board of Directors) Rules 1988 are set out in a separate
statement attached hereto and forms part of report.
RESEARCH AND DEVELOPMENT-NOT APPLICABLE
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION
1. The present method is indigenous and advanced method is used to
upgrade the process.
2. Information required in case of imported technology (imported during
the last 5 years reckoned from the beginning of the financial year)
: Not applicable as there has been no import of technology.
FOREIGN EXCHANGE EARNINGS AND OUTGO
Earnings : Nil
CIF Value of imports : Rs. 25.30 Lakhs