VIDHI INDUSTRIES LIMITED
Your Directors have pleasure in presenting their 46th Annual Report and
Audited Accounts for the year ended 31st March, 1996.
During the year under review, the company's performance improved in terms
of turnover and upgradation of quality. Turnover increased by 36% from Rs.
1558 lacs to Rs. 2141 lacs. The Company's product DECO Paper used in
manufacture of decorative and Industrial Laminates is widely accepted by
various manufacturers throughout the country. The company has the credit of
introducing DECO Paper which replace virgin base paper manufactured by
large scale paper mills upto certain extent because of the price/quality
advantage. The Company's other varieties of Deluxe Kraft Paper is in demand
despite the present adverse sccenario of paper industry. This is because of
continuous upgradation of quality and capacity to meet requirement of large
scale corrugate box convertors. Heavy depreciation of rupee, credit crunch
and increase in the raw material costs resulted in lower profitability. It
was therefore considered prudent to skip the dividend to conserve the
resources of the company to finance the increased working capital
You will be happy to note that the expansion programme has been completed
and the beneficial result started flowing. The technological superiority
of our products and process will keep your Company ahead of competition.
Looking to present power supply situation, your company is planning to set
up a WIND ENERGY PROJECT which will benefit by way of cut down in average
rate of electricity and tax incentives.
The zero discharge effluent treatment plant for both the paper machines is
working satisfactorily as per the norms laid down by Gujarat Pollution
The Company has successfully executed the order for supply of a 15 TPD
Paper Mill Plant amounting to Rs. 207 lacs to Bangladesh. The Export of
Paper Mill Plant to a neighbouring country by your company is the first
export in the Paper Industry on turn-key basis.
In view of the three year wage agreement signed with the labour, Industrial
relation continued to be cordial.
The Company has not accepted Fixed Deposit from Public during the year.
The company has made adequate arrangements for insuring its properties and
assets against fire and other probable risks.
Pursuant to Article 125 (1) of the Articles of Association of the Company,
Shri P. Krishnamurthy & Shri G.C. Shah retire by rotation at the ensuing
Annual general meeting and being eligible offer themselves for re-
M/s. V.M. Khandwala & Co., Chartered Accountants, present Auditors of the
Company retire at the conclusion of the ensuing Annual General Meeting.
They have furnished a certificate of eligibility for their reappointment
pursuant to Section 224 (IB) of the Companies Act, 1956. Members are
requested to appoint Auditors for the Current year and to authorise the
Board to fix their remuneration.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS &
As required by the Companies (Disclosure of particulars in the report of
Board of Directors) Rules, 1988 the relevant data are given in the
prescribed format as Annexure I to this report.
PARTICULARS OF EMPLOYEES
As required by the provisions of Section 217(2A) read with the Companies
(Particulars of employees rules, 1975) none of the employees was in receipt
of remuneration more than Rs. 25,000 per month or Rs. 3,00,000 per annum.
Your Directors place on record their appreciation for the dedicated
services offered by the Directors Shri P. Krishnamurthy and Shri G. C. Shah
and the officers, employees and workers at all levels during the year under
Your Directors also acknowledge with gratitude for co-operation and
financial assistance extended by UCO Bank during the year.
ANNEXURE - I
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
AND OUTGO SECTION 217(1)(e) OF THE COMPANIES ACT, 1956
THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF
DIRECTORS RULES, 1988.
(A) CONSUMPTION OF ENERGY:
I. POWER AND FUEL CONSUMPTION Current Year Previous Year
(a) Purchased Units 4020979 3875854
(b) Total Amount Rs. 10743439 9147440
(c) Rate/Unit Rs. 2.67 2.36
2. Coal Quantity (M.T. Tonnes) 4425 2648
Total Cost Rs. 6312 4879
Average Rate/Rs. 1426 1843
ii. CONSUMPTION PER UNIT OF PRODUCTION
Electricity Units / M.T. (KWH) 525 683
Coal Kg./MT 578 456
(B) TECHNOLOGY ABSORPTION:
I. RESEARCH AND DEVELOPMENT (R & D):
1. Specific area in which R & D carried out in the Company.
-- Technology upgradation.
-- Development and evaluation of alternate raw material with low cost base.
2. Benefit derived as a result of the above R & D.
-- Development of new product range.
-- Improvement in the Quality of existing products.
3. Future Plan of Action.
-- A special Kraft base paper required as an import substitute material for
use in a packaging industry utlising European Technology -- introduced for
the first time in India, being developed.
4. Expenditure on R & D.
-- The Company has incurred revenue expenditure to the tune of Rs. NIL
which works out to NIL % of the total turnover during the year under
II. TECHNOLOGY ABSORPTION, ADAPTION AND INNOVATION:
1. Efforts in brief made towards technology absorption adaption and
-- The Company has installed the power saving equipments in the pulp mill
and process and paper machinery to achieve quality improvement and cost
reduction of the product manufactured.
2. Benefits derived as a result of the above efforts.
-- High value addition.
-- Reduction in Pollution load.
-- Conservation of water.
-- Conservation of coal by utilising economiser in boiler.
3. Imported Technology -- NIL.
(C) FOREIGN EXCHANGE EARNINGS AND OUTGOINGS:
-- The Company have export sales during the year. Foreign exchange earning
during the year is Rs. 207 lacs under ACU arrangement.
-- Foreign exchange to the tune of Rs. 363 lacs was spent during the year
For and on behalf of the
Board of Directors
Place : Mumbai
Date : 29th June, 1996.