KALINGA CEMENT LIMITED
Your Directors have pleasure in presenting the 13th Annual Report together
with the Audited Accounts and Cash Flow Statement for year ended 31st
The operating results during the period have shown a net profit of Rs.
51.77 lakhs which represents a significant increase (on an annualised
basis) over the previous period. The production and sales have shown
substantial improvements during the period under review.
The accumulated losses in the Balance Sheet represent only the unabsorbed
depreciation of earlier years; however until these are fully covered, the
Company is constrained against declaring any Dividend. Accordingly, your
Directors regret their inability to declare any Dividend for this year.
PRODUCTION & SALES
Particulars 1995-96 1994-95
(12 months) (6 months)
Cement Production (MT) 29873 11420
Sales (MT) 30565 13196
Production during the period under review has shown an increase by 33% over
the previous period and it is hoped that the trend of higher capacity
utilisation will continue in the financial year 1996-97.
EXPANSION & FUTURE OUTLOOK
The Capital Expenditure plan for expansion of capacity is almost complete
and a substantial part of the expanded capacity is expected to be
commissioned in the current year.
1. Cement Manufacturing Capacity: Augmentation of cement manufacturing
capacity is underway with only the main mill awaiting delivery. All the
Drive systems, Venting systems and Pollution control Equipment are in
transit. The main mill is expected to be delivered within the next few
2. Marketing: The company has been conducting vigorous marketing efforts,
in anticipation of the expanded production. This strategy has paid off and
most of the production has already been booked for sale; now areas of
market thrust have included the N.E. India destinations and expansion of
the neighboring Bihar Market.
3. Mining: Development of the existing Mines and the removal of overburden
from the recently purchased land is almost complete and the current year
should witness expanded activity from the Mining sector. Planned mining
and handling equipment are already in place.
Members will be pleased to learn that the Company's efforts to acquire
mining lease rights over newer areas have been successful and mining lease
execution orders over an additional area of 161 hectares have just been
received from the State Government.
During the period, Industrial relations continued to be extremely cordial &
healthy. Your Directors expect that the same cordial relations will be
maintained in the years to come. It is hoped that Company's unstinted
efforts to improve both production and productivity will receive the whole
hearted support of all section of employees. Your Directors wish to record
their appreciation of the performance and co-operation of all sections of
employees towards the efficient working of the Company.
Shri R. K. Rath (IAS Retd.) and Shri B. R. Sengupta, directors of the
company retire by rotation and are eligible for re-election.
M/s. S. N. Adlakha & Co., Chartered Accountant, the Statutory Auditors of
the company, retire at the conclusion of this Annual General Meeting and
are eligible for re-appointment.
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
AND OUT GO:
As required under section 217(1)(a) of the Companies Act,1956 read with
Rule of the Companies (Disclosure of particulars in Report of Board of
Directors) Rule, 1988 the particulars relating to the conservation of
energy, technology absorption and foreign exchange earnings are as follows:
I. Conservation of energy: Your company continued to give priority to
conservation of energy and proposals are being implemented for reduction of
II. Foreign exchange earnings and out go: The company has not used any
foreign exchange during the period ended 31st March, 1996. However, modest
beginnings have been accomplished in exports through Merchant Exporters.
Approximate earnings of foreign exchange on this count are Rs.3.60 lakhs.
PARTICULARS OF EMPLOYEES
The particulars required pursuant to the provisions of section 217(2A) of
the Companies Act,1956 read with the Companies (Particulars of Employees)
Rule, 1975 as amended by the Companies (Amendment) Act, 1988 the name &
other particulars of employees of the company who were in receipt of
remuneration of not less than Rs. 3,00,000/- p.a. during the period ended
31st March, 1996 or not less than Rs. 25,000/- per month during the period
under review was nil.
The Board expresses its gratitude for the valuable guidance and assistance
provided by the Financial Institutions viz. IPICOL, IDBI, OSFC and
Company's Banker Punjab National Bank whose continued support enabled the
Company to function effectively.
Place : Bhubaneswar
Dated : 2nd September, 1996.