harshvardhan chemicals minerals ltd Directors report

HARSHVARDHAN CHEMICALS AND MINERALS LIMITED ANNUAL REPORT 2001-2002 DIRECTORS REPORT Your Directors present the 21st Annual Report along with Audited Accounts of the Company for the year ended 31st March, 2002. FINANCIAL RESULTS Year Ended Year Ended 31.03.2002 31.03.2001 Turnover 10257202 27419830 Profit/(Loss) before Interest & Depreciation (16018437) (5986181) Profit/(Loss) for the year (28238309) (17896857) DIVIDEND In view of the losses, your directors have not recommended any dividend for the financial year under review. OPERATIONS The operations of the Company were continued to adversely affected by depressed marketing conditions & un-remunerative prices and the plant of the Company remained closed from 7th September 2000 to 10th November 2001 and again closed since 19th February 2002. Thus during the year under report, the operations were suspended for the major part of the year. However after having good monsoon, the Company will resume the operations in the near future. Turnover for the year under review comes to Rs.102.57 Lacs (274.20 Lacs). Loss before Interest and depreciation stood of Rs.160.18 Lacs as against loss of Rs.59.86 Lacs during the preceding year. During the year your company manufactured 7870 MT (Previous Year 6779 MT) Sulphuric Acid, 1504 MT (1539 MT) Oleum 65% and 1590 MT (1794 MT) Oleum 23% and SSP production was NIL (307 MT). BIFR REHABILITATION SCHEME As reported earlier, on the revised revival package submitted by the Company through Operating Agency (ICICI), the Honble Board for Industrial & Financial Reconstruction (BIFR) has published the Draft Rehabilitation Scheme (DRS) and heard objections/suggestions on the scheme envisaging One Time Settlement (OTS) wen 40% sacrifices in Term Loan principal from Term lending Institutions/Banks and 50% sacrifice in working capital outstanding with Bank and waiver of all types of interest outstanding on account of objections raised by Term Lending Institutions for down payment of Rs.51 Lacs made to Allahabad Bank by the Company inter alia the mode of Payment to Allahabad Bank, the Final Rehabilitation Scheme has yet to been sanctioned and as such no effect was given in the Companys accounts for the sacrifices and reliefs as Stipulated in the scheme. No interest has been provided for during the current year in view of the relief envisaged in the DRS. DIRECTORS Dr. R.S. Chouhan, the Director of the company retire by rotation and being eligible, offer himself for re-appointment. AUDIT COMMITTEE To Provide assistance to the Board in fulfilling the Boards over sight responsibilities, an Audit Committee, has been constituted as a sub committee to the Board consisting of Mr. V.S.Rathora-Executive Director, Dr. B.P.Tiwari & Shri G.K. Sharma - Non Executive Directors. DIRECTORS RESPONSIBILITY STATEMENT Pursuant to Section 217(2AA) of the Companies Act, 1956. your Directors, confirm the following: i) In the preparation of the Annual Accounts, the applicable amounting standards have been followed. ii) Your Directors have selected such accounting policies and applied them consistently and made judgements and estimate that are reasonable and prudent as to give true and fair view of the State of Affairs of the Company at the end of the financial year end of the Loss of the Company for the year. iii) Your Directors have 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/detecting fraud and other irregularities. iv) Your Directors have prepared the attached Statements of Accounts for the year ended 31st March, 2002 as a going concern basis. PARTICULARS OF EMPLOYEES The particulars of employees as required under section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 are not applicable as none of the employees drew remuneration beyond the limits specified. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION ETC. A statement giving information regarding conservation of energY, technology absorption and foreign exchange earning and outgo required under section 217 (1) (e) of the Companies Act, 1956 is annexed to and form part of this report. FIXED DEPOSITS During the year under review, your company has not invited any fixed deposits from public. In terms of provisions of Section 58A of the Companies Act, 1956, read with the companies (Acceptance of Deposits) Rules, 1975. AUDITORS The Shareholders are requested to appoint statutory auditors M/s. R.Surana & Co., Chartered Accountants for the year and fix their remuneration. The notes to the accounts referred to in the Auditors Report are self explanatory and therefore, do not call for any further comments. ACKNOWLEDGEMENTS The Company has always received the necessary support and guidance from the financial Institutions led by the ICICI Ltd., Allahabad Bank and Honble BIFR and your Directors would like to place on record their sincere appreciation for the same. Your Directors are pleased to record their appreciation for the hard work put in by the employees at all levels during the difficult times through which the company is passing. For and on behalf of the Board Udaipur, 31st August, 2002. V.S.RATHORE AJEET SINGH PIPLODA EXECUTIVE DIRECTOR MANAGING DIRECTOR ANNEXURE TO THE DIRECTORS REPORT Information as per Section 217 (i) (e) read with the 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, 2002. A. CONSERVATION OF ENERGY: (A) Energy & Conservation measures taken: The captive power plant which generates, power out of heat available from the Acid Plant has been installed. The Company has taken steps to conserve the energy like shutting off idle equipment, Installation of adequate capacitors and Increasing awareness amongst the employees, provision for natural daylight and verification. (B) Additional Investments and proposals, if any being implemented for reduction of energy: The management considered the existing facilities for consumption as Well as reduction adequate and at present, there is no proposal for additional investments for these. (C) Impact of the measures (a) and (b) above for reduction of energy consumption and on the cost of production of goods: Although there has been a saving in terms of energy, but on account of closure of the plant, it is difficult to assess the exact impact of the measures taken above. (D) Total energy consumption and energy consumption per unit of production in respect of the companys products: Details are provided in FOrm A B. TECHNOLOGY ABSORPTION: (a) Research and Development (R&D): The company undertakes on a continuous basis various development activities of new products and processes, cost reduction devices. Improvement in quality and performance etc. As there is no separate R&D cell, It is difficult to quantity the amount incurred on R&D. (b) Technology Absorption, Adoption and Innovation: The company has not acquired any Indigenous Imported technology. C. FOREIGN EXCHANGE EARNING AND OUTGO: Foreign Exchange earning : Rs. Nil Foreign Exchange outgo : Rs. Nil FORM A A. POWER & FUEL CONSUMPTION 1. ELECTRICITY UNIT 2001-2002 2000-2001 (A) Purchased Unit KWH 478820 591000 Total Amount Rs. 3033212 3319020 Rate/Unit Rs./KWH 6.33 5.62 (B) Own Generation Through Diesel Generator Units (KWH) Nil Nil Units per litre of diesel oil Rs./KWH Nil Nil Cost per unit of diesel oil Rs./KWH Nil Nil Through Steam Turbine Generator (from by-product steam of S.A. Plant) Unit KWH 183700 154650 Total Cost Rs. 349030 293825 Cost/Unit Rs./KWH 1.90 1.90 2. FURNACE OIL Quantity KL Nil Nil Total Amount Rs. Nil Nil Average Rate Rs./KL Nil Nil B. CONSUMPTION PER UNIT OF PRODUCTION Electricity 1. Single Super Phosphate KWH - 53 2. Sulphuric Acid KWH 70 70 3. Oleum 23% KWH 75 75 4. Oleum 65% KWH 80 80