| Your Directors present the 21st Annual Report along with Audited
Accounts of the Company for the year ended 31st March, 2002.
FINANCIAL RESULTS
Year Ended Year Ended
31.03.2002 31.03.2001
Turnover 10257202 27419830
Profit/(Loss) before interest & Depreciation (16018437) (5986181)
Profit/(Loss) for the year (28238305) (17896857)
DIVIDEND
in view of the losses, your directors have not recommended any dividend
for the financial year under review.
OPERATIONS
The operations of the Company were continued to adversely affected by
depressed marketing conditions & un-remunerative prices and the plant
of the Company remained closed from 7th September 2000 to 10th November
2001 and again closed since 19th February 2002. Thus during the year
under report, the operations were suspended for the major part of the
year. However after having good monsoon, the Company will resume the
operations in the near future. Turnover for the year under review comes
to Rs. 102.57 Lacs (274.20 Lacs). Loss before interest and depreciation
stood at Rs. 160.18 Lacs as against loss of Rs. 59.86 Lacs during the
preceding year. During the year your company manufactured 7870 MT
(Previous Year 6779 MT) Sulphuric Acid, 1504 MT (1539 MT) Oleum 65% and
1590 MT (1794 MT) Oleum 23% and SSP production was NIL (307 MT).
BIFR REHABILITATION SCHEME
As reported earlier, on the revised revival package submitted by the
Company through Operating Agency (ICICI), the Honble Board for
Industrial & Financial Reconstruction (BIFR) has published the Draft
Rehabilitation Scheme (DRS) and heard objections/suggestions on the
scheme envisaging One Time Settlement (OTS) with 40% sacrifices in Term
Loan principal from Term lending Institutions/Banks and 50% sacrifice
in working capital outstanding with Bank and waiver of all types of
interest outstanding on account of objections raised by Term Lending
Institutions for down payment of Rs. 51 Lacs made to Allahabad Bank by
the Company inter alia the mode of payment to Allahabad Bank, the Final
Rehabilitation Scheme has yet to been sanctioned and as such no effect
was given in the Companys accounts for the sacrifices and reliefs as
stipulated in the scheme. No interest has been provided for during the
current year in view of the relief envisaged in the DRS.
DIRECTORS
Dr. R. S. Chouhan, the Director of the company retire by rotation and
being eligible, offer himself for re-appointment.
AUDIT COMMITTEE
To provide assistance to the Board in fulfilling the Boards over sight
responsibilities, an Audit Committee has been constituted as a sub
committee to the Board consisting of Mr. V. S. Rathore - Executive
Director, Dr. B. P. Tiwari & Shri G. K. Sharma - Non Executive
Directors.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2 AA) of the Companies Act, 1956, your
Directors confirm the following:-
i) In the preparation of the Annual Accounts, the applicable accounting
standards have been followed.
ii) Your Directors have selected such accounting policies and applied
them consistently and made judgements and estimates that are reasonable
and prudent so as to give true and fair view of the State of Affairs of
the Company at the end of the financial year and of the Loss of the
Company for the year.
iii) Your Directors have taken proper and sufficient care 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/detecting fraud and other
irregularities.
iv) Your Directors have prepared the attached Statements of Accounts
for the year ended 31s1 March, 2002 as a going concern basis.
PARTICULARS OF EMPLOYEES
The particulars of employees as required under section 217 (2A) of the
Companies Act, 1956 read with the Companies (Particulars of Employees)
Rules, 1975 are not applicable as none of the employees drew
remuneration beyond the limits specified.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION ETC.
A statement giving information regarding conservation of energy,
technology absorption and foreign exchange earning and | outgo required
under section 217 (1) (e) of the Companies Act, 1956 is annexed to and
form part of this report.
FIXED DEPOSITS
During the year under review, your company has not invited any fixed
deposits from public in terms of provisions of Section 58A of the
Companies Act, 1956, read with the Companies (Acceptance of Deposits)
Rules, 1975.
AUDITORS
The Shareholders are requested to appoint statutory auditors M/s. R.
Surana & Co., Chartered Accountants for the year and fix their
remuneration. The notes to the accounts referred to in the Auditors
Report are self explanatory and therefore, do not call for any further
comments.
ACKNOWLEDGEMENTS
The Company has always received the necessary support and guidance from
the financial institutions ied by the ICICI Ltd., Allahabad Bank and
Honble BIFR and your Directors would like to place on record their
sincere appreciation for the same. Your Directors are pleased to
record their appreciation for the hard work put in by the employees at
all levels during the difficult times through which the company is
passing.
ANNEXURE TO THE DIRECTORS REPORT
Information as per Section 217 (i) (e) read with the Companies
(Disclosure of particulars in the Report of Board of Directors), Rules,
1988 and forming part of the Directors Report for the year ended 31st
March, 2002.
A. CONSERVATION OF ENERGY:
(A) Energy Conservation measures taken:
The captive power plant which generates power out of heat available
from the Acid Plant has been installed. The Company has taken steps to
conserve the energy like shutting off idle equipment, installation of
adequate capacitors and increasing awareness amongst the employees,
provision for natural daylight and ventilation.
(B) Additional investments and proposals, if any. being implemented for
reduction of consumption of energy.
The management considered the existing facilities for consumption as
well as reduction adequate and at present, there is no proposal for
additional investment for these.
(C) Impact of the measures (a) and (b) above for reduction of energy
consumption and on the cost of production of goods:
Although there has been a saving in terms of energy, but on account of
closure of the plant, it is difficult to assess the exact impact of the
measures taken above.
B. TECHNOLOGY ABSORPTION:
(a) Research and Development (R&D):
The company undertakes on a continuous basis various development
activities of new products and processes, cost reduction devices,
improvement in quality and performance etc. As there is no separate R&D
cell, it is difficult to quantify the amount incurred on R&D.
(b) Technology Absorption, Adoption and Innovation:
The company has not acquired any indigenous or imported technology.
C. FOREIGN EXCHANGE EARNING AND OUTGO:
Foreign Exchange earning: Rs. Nil
Foreign Exchange outgo: Rs. Nil
For and on behalf of the Board
Udaipur, 31st August, 2002. V. S. RATHORE AJEET SINGH PIPLODA
EXECUTIVE DIRECTOR MANAGING DIRECTOR | 