SUN STAR CHEMICALS LIMITED
Your Directors have pleasure in presenting th Tenth Annual Report and
Audited Statements of Accounts of the Company for the Financial year ended
31st March, 1996.
The Directors recommend payment of Dividend for the year ended 31st March,
1996 at the rate of 15%. The dividend will be payable for the full year in
respect of all Equity Shares, except for the Right Equity Shares of Rs.10/-
each allotted during the year. The dividend on these Right Equity Shares
will be paid on a pro-rata basis for the period from the date of allotment.
2.0 PARTICULARS OF EMPLOYEES
A statement incorporating the particulars of employees as required under
subsection (2A) of Section 217 of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules, 1975 is not given since there
are no employees drawing monthly salary exceeding Rs.25,000/-.
3.0 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
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 the Companies (Disclosures of Particulars in the report of
Board of Directors) Rules, 1988 are set out in a separate statement
attached hereto and forming part of the report.
4.0 SAFETY AND ENVIRONMENT
Safety awareness continues to be a priority area for the Company and
efforts are directed to create safety awareness through constant education.
Adequate fire protection systems and proper pollution control devices have
been installed to control effluents generated. Development of a green belt
in and around factory is being developed.
The Company has kept its pace in tune with previous year performance and
achieved approximately Fifty percent growth over the last year. In keeping
its promise to boost Export Marketing the Company has since reached to the
level of nearly Rs.410 lacs mark and has stream lined its route through
commodities in Consumer Market. The late arrival of call money of its Right
Issue and liquidity crunch at Bank Finance Assistance has made us
vulnerable in meeting both ends of creation of Fixed Assets as Scheduled
and the out come of production items thereof so much to be much below the
targeted Sale amount but not affecting our Profitability to keep our
promise of Profitable deployment of Funds.
Your Company has achieved a turnover of Rs.843 lacs in 1994-95 and reached
upto Rs.1,259 lacs during the year 1995-96 resulting an overall Profit
before Tax to the extent of Rs.184 lacs as against Rs.296 lacs as targeted.
6.0 FUTURE PLANS
The Company in view of the difficult Fund position has rescheduled its
implementation mare and has already started production of its near product
line of Polymer Division and expects to complete the Project by the ensuing
month. Your Company has overcome all odds and tough competition in Market
bravely and is all set to take a leap in both domestic as well as Export
Market through its Judicious Mix of Investments in Manufacturing Technology
and Efficiency of value additions.
In accordance with the provisions of the Companies Act, 1956 and Company's
Articles Association, Shri P. M. Rathod and Shri R. S. Shanbaug retire by
rotation at the ensuing Annual General Meeting and, being eligible, offer
themselves for reappointment.
8.0 AUDITOR'S REPORT
With reference to the observation made in the Auditor's Report, the Notes
on Accounts are self-explanatory and therefore, do not call for any further
comments under Section 217(3) of the Companies Act, 1956.
M/s. R. R. Tibrewala & Co., Chartered Accountants and Statutory Auditors of
the Company, retire at the forthcoming Annual General Meeting and are
eligible for reappointment.
The Directors wish to place on record their appreciation for the support
received from all agencies including, bankers' of the Company. The
employees at all levels have contributed in large measure for the
development of the Company, during the year. The Directors look forward to
their continued support.
ANNEXURE TO THE DIRECTORS' REPORT
Additional information as per Section 217 (1)(e) of the Companies Act, 1956
read with the Companies (Disclosure of Particulars in the Report of Board
of Directors) Rules, 1988 for the year ended 31st March, 1996.
(A) CONSERVATION OF ENERGY :
Power and Fuel Consumption
This Year Previous Year
Purchased Units 1,18,870 4,14,200
Total Amount (Rs.) 3,56,002 3,19,474
Rate per units (Rs.) 2.99 2.80
2. Furnace Oil (LDO)
Quantity (KL) 46,500 86,455
Total Amount (Rs.) 3,10,377 5,69,176
Average Rate (Rs.) 6.67 6.58
(B) TECHNOLOGY ABSORPTION :
The required technology is being developed indigeneously and being absorbed
(C) FOREIGN EXCHANGE EARNING AND OUTGO.
For the Year For the Year
i) Earnings 4,09,76,053 NIL
ii) Outgo NIL NIL
For and on behalf of the Board
BHANUCHANDRA G. PATEL
Chairman & Managing Director
Place : Ahmedabad,
Dated : 4th September, 1996.