darshan oils ltd Directors report

DARSHAN OILS LIMITED ANNUAL REPORT 2002-2003 DIRECTORS REPORT TO THE MEMBERS Your Directors have pleasure in presenting the 21st Annual Report of the Company with the Audited Statement of Accounts for the year ended 31st March, 2003. WORKING RESULTS 2002-03 2001-02 Sales & other Income 4402.38 11856.29 Profit before Interest, Depreciation & Tax (-) 226.29 17.68 Less: Interest 348.46 251.20 Depreciation 173.76 140.48 Net Profit / Loss before Tax (-) 748.51 (-) 374.00 Less: Provision for exceptional Item 4.01 - Add: Deferred Tax (Reversal) 200.03 - Net Profit (Loss) for the year (-) 552.49 (-) 374.00 Add: Profit/Loss brought forward from last Account (-) 51.97 119.24 Profit/Loss (-) 604.46 (-) 254.76 Less: Transfer to General Reserves & others - (-) 202.79 Balance Carried over to Balance Sheet (-) 604.46 (-) 51.97 OPERATIONS Turnover during the year has decreased to Rs. 44.02 crores from Rs. 118.56 crores in the previous year 2001-02. The Company has incurred loss of Rs. 552.49 lacs during the year whereas Rs. 374.00 lacs in the last year Company has incurred losses due to disparity in the business and lack of working capital finance. Keeping in view the financial position of the Company, your Directors has not recommended dividend during tire year. SICKNESS OF THE COMPANY The company has become a sick industrial company within the meaning of Clause (o) of Sub-Section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 in this year for the first time. The Board of Directors of your company in its meeting held on 26.04.2003 has decided to make a reference to the Board for Industrial and Financial Reconstruction (BIFR) under section 15 of the said Act. CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION ETC. Details of energy conservation and research and development activities undertaken by the Company along with the information in accordance with the provisions of Section 217(1)(e) of the Companies Act. 1956 react with the Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 198S are given in annexure. PUBLIC DEPOSITS During the year 2002-03. Company has not acted deposits from the public. The Company has made repayments of deposits and there no outstanding deposits. DIRECTORS Pursuant to the provisions of section 256 of the Companies Act, 1956 S. Ravjeet Single and Shri Ravider Nath Goyal retires by rotation and being eligible, offer themselves for reappointment. Due to bad health of the company S. Gurbachan Singh, Managing Director has waived the remuneration payable to him by the company from 01.09.1002 onwards. DIRECTORS RESPONSIBILITY STATEMENT Pursuant to requirement under Section 217 (2AA) of the Companies Amendment Act, 2000 with respect to Directors Responsibility Statement, it is hereby confirmed. i) That in the preparation of the Annual Accounts for tile financial year ended 31.03.2003, the applicable accounting standards had been followed alongw with proper explanation relating to material departures; ii) That the directors had selected such accounting policies and applied them consistently and made judgements and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit or loss of the company for the year under review; iii) That the Directors had 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 and detecting fraud and other irregularities; iv) That the directors had prepared the accounts for the financial year ended 31.03.2003 on a going concern basis. PARTICULARS OF EMPLOYEES Particulars of employees pursuant to section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of employees) Rules, 1975, as amended, are not being furnished herewith since there is no employee who is getting remuneration as per the provisions therein. STOCK EXCHANGE LISTINGS Equity shares of your company are listed on U P Stock Exchange, Kanpur, The Stock Exchange, Mumbai, The Delhi Stock Exchange Association Limited, New Delhi, The Stock Exchange, Ahmedabad and Jaipur Stock Exchange Limited, Jaipur. The Company has paid annual listing fee to all the above Stock Exchanges for the year 2002-03. INDUSTRIAL RELATION The Industrial Relations continued to be cordial throughout the year. Your Directors wish to place on record their sincere appreciation for the team work with which the workers and officers of tile Company at all levels contributed. AUDITORS The Auditors, M/s Mital and Kumar, Chartered Accountants, retire at the ensuing Annual General Meeting and have confirmed their eligibility and willingness to accept the office in terms of Section 224 (1B) of the Companies Act, 1956, if re-appointed. The Board recommends their re- appointment. ACKNOWLEDGMENT Your Directors place on record their gratitude to Companys valued Customers, Suppliers, Dealers, Central and State Governments, Bankers and Members of the Company for their continued support and confidence in the Company. On behalf of the Board Place : ALIGARH Date : 26.04.2003 Gurbachan Singh Chairman & Managing Director ANNEXURE TO THE DIRECTORS REPORT Particulars required under the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules. 1988 A. CONSERVATION OF ENERGY (a) Energy Conservation Measures Takes; The SHE installed it the deacidification cum deodorisation section was overhauled and re-installed with improvements in the P & I system. It resided in achieving the Efficient Industrys Energy Standards. The heat transfer process vessels were thoroughly de-scaled and cleaned to result in efficient heat transfer in the process systems. Also, proper insulation and cladding with aluminium sheets was redone in order to avoid heat losses. (b) Proposal for reduction of consumption of energy: The experts are constantly being consulted and involved for suggesting various measures - to improve the process and systems to monitor and reduce heat and electrical energies, in the different application of the process. (c) Impact off the ma (a) & (b) above for reduction of energy consumption and consequent impact on the cost of production of goods; The above mentioned energy conservation measures which have already been taken alongwith the measures under implementation will yield substantial savings in energy consumption compared to the past years. These measures are also expected to result in reduction in other costs of production. B. TECHNOLOGY ABSORPTION The process of hydrogenation of vegetable oils and the post treatment of haul oils aril final deoderisation cum deacidefication was significantly and constantly improved. It resulted in better, uniform, granular perfect odour free vanaspati mainly under the brand name of "FIT VANASPATI". The product has been accepted at par with the reputed brands for its consistent desired quality and is widely acclaimed in the market at premium. G. FOREIGN EXCHANGE EARNINGS AND OUTGO: 2002-03 2001-02 (Rs.) (Rs.) (i) Foreign Exchange Earned NIL NIL (ii) Outgo of Foreign exchange Value of Imports on CIF basis a) Raw Material NIL NIL FORM "A" (SEE RULE 2) DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY A. POWER & FUEL CONSUMPTION CURRENT YEAR PREVIOUS YEAR 31.03.2003 31.03.2002 I. ELECTRICITY A. PURCHASED UNITS 805524 1195025 TOTAL AMOUNT (Rs.) 4326447 6956719 RATE / UNIT (Rs.) 5.37 5.82 B. OWN GENERATION THROUGH DIESEL GENERATOR UNITS 2956440 3122292 UNITS PER LTR OF DIESEL 4 4 COST/UNIT (Rs.) 4.17 4.04 2. STEAM COAL QUANTITY (MT) 162.765 1146.250 TOTAL COST (Rs) 322734 2487570 RATE PER UNIT 1982.82 2170.18 3. FURNACE OIL/L.D.O. QUANTITY (LTR.) 80300 165294 TOTAL. COST (Rs.) 1318397 2869298 RATE PER LTR. 16.42 17.36 4. OTHER INTERNAL GENERATION PADDY HUSK/DHAN KI BHUSI QUANTITY (MT) 4038.675 11892.610 TOTAL COST (Rs.) 4038675 11892610 RATE / UNIT (Rs.) 1000.00 1000.00 E. CONSUMPTION PER UNIT OF PRODUCTION PRODUCTION (MT) 11662.649 36674.560 ELECTRICITY 322.565 117.720 FURNANCE OIL /L.D.O. 0.007 0.005 COAL 0.014 0.031 HUSK / DHAN KI BHUSI 0.346 0.324 On behalf of the Board Place : ALIGARH Gurbachan Singh Date : 26.04.2003 Chairman & Managing Director