KARNATAKA CHEMICAL INDUSTRIES CORPORATION LIMITED
The Directors are hereby presenting the 17th Annual Report on the business
and operations of the Company together with the Financial Accounts for the
period ended 31st March, 1996.
CHANGE OF ACCOUNTING YEAR :
During the year the Company has changed its Accounting year by passing
necessary resolution and decided to maintain uniform accounting year as per
Income Tax Act. Hence, the end under reference the Company has prepared
its accounts only for 9 months i.e., from 1.7.1995 to 31.3.1996 and in
coming years the accounts will be maintained from 1st April to 31st March
OPERATIONAL RESULTS :
During the, year under reference, the Company has produced 280 MT. of
Copper Oxychloride as against 394 MT. of Copper Oxychloride in the previous
year. The Turnover for the 9 months under reference is Rs. 2,91,71,948/- as
against Rs. 3,36,81,348/- for the previous year. Net loss during the year
is Rs. 33,65,753/-. The loss is mainly attributable to liquidity problems
and inadequate Working Capital Facility coupled with the heavy fluctuation
in the Copper price in the International market and increase in the cost of
other raw materials resulting in higher cost of production which the
company could not able to pass it on to the customers in view of the
servere competition in the Industry. Apart from this there was substantial
power cut which hampered the production schedule. The impact in stopage to
production in the previous year due to labour un-rest was the main cause
for the Working Capital resulting in reduced capacity utilisation.
CURRENT YEAR PROSPECTS :
The Company is confident to achieve better results if it gets timely
assistance of working Capital from financial institution/s.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
AND OUTGO :
As required U/s 217 (1) (e) of the Companies Act, 1956 read with the
Companies (disclosure of Particulars in the reports of Board of Directors)
Rules 1988, Particulars relating to Conservation of Energy, Technology
Absorption and Foreign Exchange Exchange Earnings and Outgo to the extent
applicable are annexed.
As the Company has incurred Net Loss, your directors do not propose any
dividend for the period under reference.
PARTICULARS OF EMPLOYEES U/s 217 (2A) :
None of the employees of the Company during the period under reference were
in receipt of an aggregate remuneration of Rs. 3,00,000/- per annum or Rs.
25,000/- per month when employed for part of the year.
Mr. G.S. Ravikumar, Chartered Accountant, Bangalore retires and is eligible
In accordance with the provision of the Companies Act, 1956 and Articles of
Association of the Company Mr. Deepak A. Mehta and Mrs. Meera Kotak
retires by rotation and being eligible, offer themselves for re-
INDUSTRIAL RELATIONS :
Industrial relations was cordial throughout the year under review. Your
Directors appreciate the services and co-operation of employees at all
Your Directors place on record their thanks to various Govt. Authorities,
Banks and Auditors for their support/ guidance to the Company. They also
appreciate the sincere efforts of workmen, staff and executives of the
ANNEXURE TO THE DIRECTORS REPORT
In terms of section 217 (1) (e) of the Companies Act, 1956 (as amended) and
the Companies (Disclosure of particulars in the Report of Board of
Directors) Rules 1988, and forming part of the Directors' Report for the
period ended 31st March, 1996.
A. CONSERVATION OF ENERGY :
Energy conservation is being improved by bringing about greater awareness
among employees at all levels for minimum use of energy.
Power and fuel consumption
Unit 256,454 385,080
Total Amount 482,496 642,507
Rate/Unit (Rs.) 1.88 1.67
(b) Own generation
(i) Through diesel generator
Unit 55,440 62,262
Unit per ltr. of diesel oil 6.00 6.00
Cost/Unit (Rs.) 8.17 8.17
1. Furnace Oil/LDD
Quantity (K.Ltrs.) 68090 75410
Total amount 437,129 470,671
Average rate/K.Ltr.(Rs.) 6.42 6.24
B. Consumption per unit of production:
Standards Current Previous
(if any) year year
1. Copper Oxychloride (Kgs.) 279992 393452
2. Copper Sulphate (Kgs.) 5677 Nil
Electricity Consumed (Units) Nil 256454 385080
Furnace Oil/LDO (K.Ltr.) Nil 68090 75410
Coal (Specify quality Nil Nil Nil
Others (Diesel) (Ltr.) Nil 9240 10877
1. Even though the Company has installed capacity to produce Copper
Oxychloride and Copper Sulphate, the Company is mainly producing Copper
Oxychloride and the manufacturing of Copper Sulphate is negligible during
the year under reference. Both copper Oxychloride and Copper Sulphate is
produced in the two Units. Hence there is no biffurcation being made.
2. No standards has been fixed regarding utilisation of power in relation
to number of units manufactured.
B. TECHNOLOGY ABSORPTION :
a) Research and Development (R&D) :
(i) Specific areas in which R&D carried out by the Company : R&D studies
have been carrying out to reduce the cost of production by choosing cheaper
raw material other than the Copper Scrap which we are presently using.
(ii) Benefits derived as a result of the above R & D : If the costing
permits the company may switch over to such raw materials which are cheaper
than Copper Scrap. Till date no apparent benefits have been derived.
(iii) Future Plan of action : As stated in item No. 2 above
(iv) Expenditure on R&D: Rs. 52,302/-
(v) Total R&D Expenditure as a percentage of total Turnover : 0.18%
C. FOREIGN EXCHANGE OUTGO :
(i) Expenditure in foreign currency was Rs. 1.72 Lakhs as against previous
year figure of Rs. 1.58 lakhs.
(ii) Foreign Exchange outgo on account of import of raw material was Rs.
115.03 lakhs (CIF value of imports) as against previous year figure of Rs.
For & on behalf of the Board of Directors,
DEEPAK A. MEHTA
Place : Bangalore
Dated : 14th August, 1996