akzo nobel chemicals india ltd Directors report
AKZO NOBEL CHEMICALS (INDIA) LIMITED
ANNUAL REPORT 2010-2011
DIRECTORS REPORT
Dear Shareholders,
We have pleasure in presenting the 21st Annual Report and the Audited
Statements of Accounts of your Company for the year ended 31st March 2011.
FINANCIAL RESULTS
This Year Previous Year
(Rupees in (Rupees in
Thousand) Thousand)
Turnover 6,02,217 7,26,803
Other Income 80,273 70,487
Gross Profit 1,53,964 1,86,323
Less: Depreciation 11,585 12,016
Less: Provision for
Taxation 54,427 59,000
Less: Deferred
Tax Credit (3,103) (410)
Net Profit 91,055 1,15,717
Add: Balance brought
forward from previous
year 10,99,115 9,83,398
Balance carryforward
to next year 11,90,170 10,99,115
DIVIDEND
In order to conserve the reserve position of the Company, dividend has not
been recommended for the year ended 31st March 2011.
COURSE OF BUSINESS
In view of economic slowdown during previous year, the performance of your
Company for the year 2010-11 was impacted and Net Sales were reduced by
19.75% compared to previous year.
Profit before Tax is reduced by 18.32% compared to the previous year mainly
due to the pressure of raw material prices and change in sales mix. Company
could keep its Net Profit after Tax intact at Rs. 91.06 Million.
Factory operations were safe and there was no lost time incident. Also,
production efficiency was better and expenses of the Company were under
control. It proves that we are benefiting from our on-going focus on
customers, costs and cash.
ORGANISATION AND HUMAN RESOURCES
We believe the future belongs to those smart enough to challenge it. We
believe that real progress belongs to those who not only think with
courage, but also have the courage to deliver on the thought. Tomorrows
answers, delivered today. What drives us is knowing that what is good for
our customers today is not necessarily good enough for them tomorrow. What
excites us is asking the unasked question. What inspires us is seeing the
opportunity others cannot. What unites us is the intelligence to deliver
where others have not. This benefits our customers because we sustain their
future competitiveness and meet the consumers unspoken needs.
Employees are fully involved in accomplishing the vision of the Company,
which states Significantly Grow the Business by being Low Cost Producer,
Market Leader and Global Player. Our employees conduct business activities
with a spirited enthusiasm to achieve global standards. Our employees are
motivated and perform with excellent teamwork.
Information regarding employees in accordance with Section 217(2A) of the
Companies Act, 1956 is given in the Annexure B of this Report.
HEALTH. SAFETY AND ENVIRONMENT
Safety, Health and Environment remain our top priority. Awareness training
is regularly imparted to employees on Fire Fighting, First Aid and On-Site
Emergency Plan. Statutory Rules and Regulations for Safety, Health and
Environment are strictly observed.
CONSERVATION OF ENERGY. TECHNOLOGY ABSORPTION. FOREIGN EXCHANGE EARNINGS
AND OUTGO
The information regarding Energy conservation measures, technology
absorption and foreign exchange earnings and outgo as required by the
Companies (Disclosure of Particulars in the Report of Board of Directors)
Rules, 1988 are set out in a separate statement attached hereto (Annexure
A) and forming a part of the Report.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956 the Directors to
their best of knowledge and belief confirm that:
i. In the preparation of the Annual Accounts, the applicable accounting
standards have been followed;
ii. Appropriate accounting policies have been selected and applied
consistently and judgements and estimates made are 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 financial year ended on that date;
iii. Proper and sufficient care has been taken 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. The Annual Accounts have been prepared on a going concern basis.
DIRECTORS
Mr. Heinrich Aldenhoven resigned from the directorship of the Company
w.e.f. 18th January, 2011. The Board wishes to place on record its sincere
appreciation for the valuable contribution rendered by him during his
tenure as a member of the Board.
Mr. Paul Radlinski resigned form the directorship of the Company w.e.f.
18th January, 2011. The Board wishes to place on record its sincere
appreciation for the valuable contribution rendered by him during his
tenure as a member of the Board
In accordance with the Articles of Association of the Company Mr
Rajasekaran Guha retires by rotation at the ensuing Annual General Meeting
and being eligible has offered himself for re-appointment.
AUDITORS
M/s. B S R & Co., Chartered Accountants, Pune, the Statutory Auditors of
the Company will retire from the office of the Auditors and being eligible
offer themselves for reappointment. Their remuneration for the current year
is to je fixed by you.
APPRECIATION
Your Directors wish to acknowledge and thank the Central and State
Governments, Bankers and Shareholders for continual support extended to the
Company for better performance.
The Directors also acknowledge the valuable contribution of Akzo Nobel
Chemicals International B.V. through continued technological assistance.
For and on behalf of Board of Directors
Amit Jain Shrikant Kulkarni Rajasekaran Guha
Chairman Managing Director Director
Place: Gurgaon
Date : 5th September 2011
ANNEXURE A TO THE DIRECTORS REPORT
[Particulars as per Companies (Disclosure of Particulars in the Report of
Board of Directors) Rules, 1988 and forming part of the Directors Report
for the year ended 31st March, 2011]
A. CONSERVATION OF ENERGY
(a) Energy Conservation measures taken:
Various energy saving measures have been taken by the Company at all
levels. Also more emphasis was given to increase awareness towards best
energy saving practices. Energy Conservation committee is working to
explore potential for energy saving. Audits were conducted at site to check
the efficiency of equipments and operations related to energy utilization.
(b) Additional investment and proposals, if any, being implemented for
saving of energy: All investments proposal at factory are evaluated taking
into account the energy savings aspects as relevant.
B. TECHNOLOGY ABSORPTION
(a) Research & Development
(1) Specific areas in which R & D is carried out by the Company : NIL
(2) Benefits derived as a result of the above R&D : NIL
(3) Future plan of action : NIL
(4) Expenditure on R & D : NIL
The technology used by the Company has be developed and upgraded from time
to time by the Companys parent Akzo Nobel Chemicals BV. Hence, iiparate
R&D expenditure by the Company is not considered necessary.
(b) Technology Absorption, Adaptation, Innovation
(1) Efforts towards technology absorption, adaptation and innovation:
Process optimisation trials were taken which have shown promising results.
This will result in reduction of process effluent, improving Cycle times
and saving in raw materials.
(2) Benefits derived as a result of above efforts:
Above efforts have resulted in increase in yield, reaction efficiency,
reduction of batch times and cost reduction.
INFORMATION ON IMPORTED TECHNOLOGY
(Imported during the last 5 years from the beginning of the financial year)
(a) Technology Imported Nil
(b) Year of import N.A.
(c) Technology absorption N.A.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO
31 March 2011 31st March 2010
(Rs 000) (Rs 000)
Expenditure in foreign currency 273,786 319,579
Earnings in foreign exchange 50,342 87,966
For and on behalf of Board of Directors
Amit Jain Shrikant Kulkarni Rajasekaran Guha
Chairman Managing Director Director
Place: Gurgaon
Date : 5th September 2011
FORM - A
(See Rule 2)
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY
A. POWER AND FUEL CONSUMPTION 2010-2011 2009-2010
ELECTRICITY
a) Purchased
Units (KWH) 1903830 1901161
Total Amount (Rs.) 11018820 9602230
Rate per Unit (Rs.) 5.79 5.05
b) Own Generation Through
Diesel generators
Units (KWH) 7023 6657
Units per Itr. of diesel oil 2 1.82
Cost per unit (Rs.) 21.94 19.25
B. CONSUMPTION PER UNIT Unit Current Previous
OF PRODUCTION Year Year
ELECTRICITY KWH/Ton
Product: Polymerisation
Initiators of Product 2033 1862.27