clarisis organics ltd share price Directors report

CLARISIS ORGANICS LIMITED ANNUAL REPORT 2002-2003 DIRECTORS REPORT Your Directors are placing before you the 15th Annual Report and the Audited Accounts for the financial year ended 31st March, 2003. FINANCIAL RESULTS Salient features are reproduced below: Particulars Year Ended Year Ended 31st March,2003 31st March,2002 Rs in lacs. Rs in lacs. Profit before Interest, 33.59 -162.71 Depreciation and Income Tax Less: Depreciation 90.42 85.29 Finance Charges 8.72 55.48 Net Loss 65.55 303.48 Add/(Loss): Balance brought Forward 726.78 441.31 Less: Transferred from Capital Reserves 0.00 18.01 Net Deficit carried Forward 792.33 726.78 A. 2002-2003 IN RETROSPECT There has been an decline in turnover by 31.87% to Rs. 1081.81 lacs as against Rs. 1588.07 lacs in the year 2001-02. The company incurred loss of Rs. 65.54 lacs. against the loss of Rs.303.48 lacs of previous year.The year under review was a difficult year, but the company has identified two new products for exports thru merchant exporters and has exported products. The following major factors affected the financial performance of the company during the year:- 1. The company had a labour strike for two months hence there was no production activity in those months. 2. Demand for Mono Chloro Benzene, Ortho Dichloro Benzene, was not good due to recessionary trend prevailing during the year. 3. Due to non-availability of adequate margins on main products and no production activity for two months the Company incurred the cash loss. B. NEW PROJECTS 1. The company has undertaken 124 Tri Chloro Benzene expansion for which necessary capital equipments has been purchased. 2. The Company during the year has successfully commissioned the 245 Tri Chloro Aniline project. 3. The Company has invested in 124TCB and 245TCA projects, which are for largely for exports. C. EXPORTS 1) The company has exported 124 Tri Chloro Benzene and 245 Tri Chloro Aniline thru merchant exporters. 2) Value Added Products The company has also strategies to enter into the production or conversion of product into high value added products based on finished product available to improve the profitability of the company during the coming years. 3) Future Prospects The company is continuing its strategy, which was implemented in previous periods: a. Expanding existing facilities through debottlenecking activities resulting in reducing per unit cost of products. b. To continue developing high value added products based on companys finished products. c. To improve profitability through process efficiencies and conservation of energy to reduce product costs. d. To improve the financial cash cycle to lower financial costs. While the company is passing through challenging times, your Directors are quite confident that they will continue to adjust to the changes of the industry to ensure consolidation and future growth for maximizing and improving the performance in the coming years. AUDITORS The Companys Auditors M/s. C.R. Shah & Co. Chartered Accountant, Vadodara, retire at the conclusion of the forthcoming Annual General Meeting and are eligible for re-appointment. PERSONNEL The company has restructured its organization to meet the challenges and to take advantage of the opportunities existing in the industry. There was a labour strike which took place in August 02 and which lasted for till September 02. (i.e. almost two months.) We take this opportunity to inform that inspite of the challenges faced by the Company the company has been able to overcome through sincere and dedicated efforts of all employees of the company who are committed to see the company consolidate its operations and are willing to contribute to these efforts. We would like to show our special appreciation to all our employees in their endeavor for their company and its performance. STATUTORY INFORMATION Information pursuant to Section 217 (1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 is given in Annexure and forms part of this report. Information of employees pursuant to Section 217 (2A) of the Companies Act, 1956 is Nil APPRECIATION Your Directors wish to place on record their sincere appreciation for the co-operation and support extended to the company by the State and Central Government, Financial Institutions, State Bank of India. The Board of Directors also wishes to place on record their deep sense of appreciation for the dedicated services rendered by the Officers and employees of the Company. DIRECTORS RESPONSIBILITY Pursuant to Section 217(2AA) of the Companies Act as amended by the Companies (Amendment) act, 2000, the Directors confirm that: I. In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanations relating to material departures. II. Appropriate accounting policies have been selected and applied consistently and have made judgements and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the company as on 31st March 2003 and of the profit of the Company for the year ended 31st March, 2003 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. ENVIRONMENTAL PROTECTION No hazardous emissions are let out in the atmosphere. The water as well as chemical effluent discharge from the plant is fully treated to meet the stipulated norms of Pollution Control Board. TECHNOLOGY ABSORPTION The disclosure of particulars is NIL. FOREIGN EXCHANGE EARNING AND OUTGO. During the year there was no earning of foreign exchange. On behalf of the Board of Directors CLARISIS ORGANICS LIMITED Ashok V. Patel Visubhai B. Patel Jt. Managing Chairman Director Place : VADODARA Date : 17th June, 2003 ANNEXURE TO DIRECTORS REPORT The Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988. A) Conservation of Energy The company has been giving utmost priority to conservation of various forms of energy used in the manufacturing process. Energy Conservation measures taken is: * The Company is maintaining high level of efficiency in the operation of steam generating equipment. * The company is updating its existing process to better utilize the heat available in the Plant to reduce steam consumption in the Plant. * During the year the company received the award from Ministry of Energy (Gujarat) for conservation of Electricity. Total energy consumption and energy consumption per unit production: 2002-2003 2001-2002 I. Power and Fuel Consumption 1. Electricity a) Purchased Units (lacs) 1,050,100 13,12,994 b) Total Amount (Rs.) 5,426,553 69,71,504 c) Rate/Unit (Rs.) 5,16 5.31 2. Bio- Coal a) Quantity (M.T) 2266.04 1712.81 b) Total Amount (Rs.) 4,134,404 31,54,632 c) Average Rate (Rs.) 1,824 1,842 3. Furnace Oil a) Quantity (M.T) - 210.372 b) Total Amount (Rs.) - 20,96,120 c) Average Rate (Rs.) - 9,963 II. Consumption per unit of production [Products- MCB,2,5DCNBODCB,124TCB, 245 TCA] [Pr.Year- MCB,NB, 2,5DCNBODCB,124TCB] a) Electricity (Unit/M.T) 231.95 177.99 b) Furnace Oil/BioCoal(M.T) 0.500 0.261 B) Technology Absorption and Research and Development Main Areas of emphasis include - Development of products based on companies finished product for value addition. - Improvement of existing product/process, efficiency Due to the changing market conditions, competitive conditions prevailing in the local market; greater emphasis is being placed in the areas of product & process developments & export.