shree acids chemicals ltd Directors report

SHREE ACIDS AND CHEMICALS LTD. ANNUAL REPORT 1999-2000 DIRECTORS REPORT To, ALL THE MEMBERS Your Directors present the Twentieth Annual Report alongwith the audited accounts of your Company for the year ended 30th June, 2000. OPERATIONS The Company continued to face liquidity problem throughout the year. There is long delay in payment of subsidy/ concession on SSP by the Govt. of India. Subsidy payment have not been made for about last one year pending some investigations against the SSP industry. As a result the production of Fertilizer Division during the current year has declined. The general economic slow down and continuous recession in the paper industry affected the overall operations of the Paper Division. As a result of all these factors overall sales of the Company declined by 15% as compared to previous year. The Company incurred a net loss of Rs.877.12 lacs during the year under review. REFERENCE TO BIFR During the year under review, your Company has become a Sick Industrial Company within the provisions of Sick Industrial Companies (Special Provisions) Act, 1985. The necessary reference was filed before BIFR. In accordance with the directions of BIFR, the Company has submitted a rehabilitation scheme to the Operating Agency which is under their active consideration. DIVIDEND In view of the losses, your Directors regret their inability to recommend any dividend for the period. CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUTGO As required by the Companies (Disclosure of Particulars in the Report of the Directors) Rules, 1988, a statement showing the information relating to Conservation of Energy, Research and Development, Technology Absorption and Foreign Exchange Earning and Outgo is attached as Annexure. DIRECTORS During the year under review, IFCI has withdrawn the nomination of Mr. M. S. Murthy as its Nominee Director. Mr. G. K. Sohbti and Mr. O. P. Vaish, Directors of the Company resigned from the Board during the year under review. The Board of Directors wishes to place on record its sincere appreciation for the valuable services rendered by Mr. M. S. Murthy, Mr. G. K. Sohbti and Mr. O. P. Vaish to your Company. Mrs. Kum Kum Mittal, Director of the Company, retire by rotation and being eligible offer herself for re- appointment. INDUSTRIAL RELATIONS The overall industrial relations in the organisation remained cordial throughout the year. The Directors are pleased to place on record their sincere appreciation of the valuable contributions made during the year by the employees at all levels. YEAR 2000 (Y2K) COMPLIANCE The rollover to the year 2000 in respect of financial accounting system and other business IT systems being used by the Company was smooth, without any disruption. PARTICULARS OF EMPLOYEES There was no employee of the Company whose particulars are required to be included in the Report under Section 217 (2A) of the Companies Act, 1956 as amended. STATUTORY AUDITORS The auditors M/s. K. L. Chandak & Co., retire at Annual General Meeting. Your Directors recommended their re- appointment for the current year. The Auditors in their report have referred to Notes No.4,10 and 13 of Schedule 14. Explanations contained in the notes and accounts are self- explanatory and may be treated as information/explanation submitted by the Board as contemplated under Section 217 (3) of the Companies Act, 1956. ACKNOWLEDGEMENTS Your Directors take the opportunity to offer their sincere thanks to various departments of Central and State Governments, the industry association, Financial Institutions led by the IFCI and the Companys banker Punjab National Bank for their valuable assistance from time to time. for and on behalf of the Board of Directors Place: Delhi Sandeep Mittal Ravi Mittal Dated: 15.11.2000 Jt. Managing Director Managing Director ANNEXURE PARTICULARS AS REQUIRED UNDER COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES,1988 AND FORMING PART OF DIRECTORS REPORT FOR THE YEAR ENDED 30TH JUNE, 2000 I. CONSERVATION OF ENERGY The Companys Sulphuric Acid Plant operations involve high steam generation which is partly utilised in the paper plant and balance is leftout in the atmosphere. The Company also uses steam in GSSP Plant to reduce the furnace oil consumption. The Steam Turbine is being installed for power generation from surplus steam. II. TECHNOLOGY ABSORPTION AND RESEARCH AND DEVELOPMENT i) The Companys plant are based on indigenous technology which has been fully absorbed. ii) Company does not have research & development section. However, steps are being taken from time to time for: a) Reduction in raw material consumption and use in more indigenous raw material/captive pulp. b) Improvement in cost effectiveness.