maya agro products ltd Directors report

MAYA AGRO PRODUCTS LIMITED, ALLAHABAD DIRECTORS REPORT TO THE MEMBERS Your directors have pleasure in presenting the 7th Annual Report together with the Audited Accounts for the year ended March 31, 1998 (Amount Rs. In Lakh) 1997-98 1996-97 FINANCIAL RESULTS Operating profit before interest, depreciation and tax 360.47 322.19 Less: Interest 154.58 129.56 Gross profit before depreciation and tax 205.89 192.63 Less: Depreciation 60.49 59.65 Profit before tax 145.40 132.98 Less: Tax - - Profit after tax 145.40 132.98 Add:Balance brought forward from last Account 7.54 4.56 Profit available for appropriation 152.94 137.54 Transfer to General Reserve 140.00 130.00 Balance carried forward 12.94 7.54 DIVIDEND Keeping in view of the scenario of oil industry, inflationary condition prevailing in the market and funds requirement for working capital needs, your directors have decided to plough back the resources to maintain its production level and accordingly they have not recommended any dividend for the year 1997-98. OPERATIONS The performance of the company during the year under review has improved in terms of production and sales inspite of the severe market competition and the inflationary trends in the prices of oil. The company has been able to maintain its growth by way of consistent efforts for maintaining quality production, effective utilisation of resources and innovative marketing strategies. Your directors plan to change the Packing Mix of the products in order to improve its profitability further. INDUSTRIAL RELATIONS Industrial relations continues to be cordial and harmonious during the year under review. The company treats its work-force to be its most valuable asset. FIXED DEPOSITS The Company has not accepted any fixed deposit under the provisions of Section 58A of the Companies Act, 1956. DIRECTORS As per provisions of the Articles of Association of the Company, Mr.Samir Ghosh and Mr.Deepak Mitra who are liable to retire by rotation at the ensuing Annual General Meeting, being eligible, have offered themselves for re-appointment. AUDITORS M/s. Amit Ray & Company, Chartered Accountants, retire at this Annual General Meeting but being eligible, offer themselves for re-appointement. The Company has received the certificate from Auditors that they are qualified under section 224(1) of the Companies Act, 1956, if re-appointed, to act as Auditors of the Company for the Year 1998-99. The observation of the Auditors in their report is appropriately dealt with in Schedule of Notes forming part of the Accounts. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO A. CONSERVATION OF ENERGY The existing plant and machinery are designed for modern technology and they have inbuilt energy efficient features. The consumption of electrical energy per unit of production is comparable with the industry in same line. The particulars of consumption are given below: 1. Power and fuel consumption Electricity Purchased (Units) 54,66,798 Total amount (Rs.) 2,06,90,278 Rate per unit (Rs.) 3.78 2. Consumption per unit of production per tonne of Vanaspati Refined Oil Electricity 370 70 Furnace Oil Nil Nil Rice Husk (Kg.) 346 250 B. TECHNOLOGY ABSORPTION The company has not used any imported technology for its products. However, the company has developed and improved in-house process technology for better use of product mix. C. FOREIGN EXCHANGE EARNING AND OUTGO There is no foreign exchange earnings and outgo during the year under review. PARTICULARS OF EMPLOYEES There is no employee in the company whose particulars are required to be given pursuant to section 217 (2A) of the Companies Act, 1956. ACKNOWLEDGEMENTS Your Directors place on record their appreciation of the continued assistance and co-operation extended to the company by the Government Authorities, Industrial Development Bank of India, United Bank of India, Bank of Baroda, shareholders of the company, the dedicated employees and all others who are continuing to assist your company. For and on behalf of the Board MANMOHAN MITRA Managing Director Place : Lucknow Date : 27th September, 1998