kalyani refineries ltd Directors report

KALYANI REFINERIES LIMITED ANNUAL REPORT 2004-2005 DIRECTORS REPORT Dear Members, Your Directors have pleasure in presenting the Sixteenth Annual Report together with the Audited Balance Sheet, Profit & Loss Account and Cash Flow Statement for the period ended 31st March 2005. Financial Results (Rs. in Lakhs) Period ended Particulars 31-03-2005 31-03-2004 Sales Income 85.48 129.89 Profit before interest & depreciation (11.80) (13.05) Interest - - Depreciation 67.18 67.54 Profit/Loss for the year (78.98) (80.60) Provision for taxation/deferred tax 4.59 0.023 Profit/Loss after tax (83.58) (80.62) Surplus b/f from the P.Y (1531.97) (1451.34) Surplus carried to B/S (1615.55) (1531.97) Review and Prospectus: The Company achieved turnover during the period ended 31st March 2005 Rs.8548345 and incurred loss Rs.7898933/-. Directors: During this year Sri. V.V.S. Ram Narasimha Rao, Director retires by rotation and being eligible offers himself for reappointment. Employee Particulars: None of the employees is in receipt of remuneration exceeding the limits prescribed under the Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975. Additional information as required u/s. 217(1)(e) of the Companies Act, 1956: (a) Conservation of Energy: The Company is monitoring the consumption of energy and is identifying measures for conservation of energy. (b) (i) Technology Absorption: No technology either indigenous or foreign is involved. (ii) Research & Development (R&D): No R&D has been carried out. Deposits: The Company has not accepted/invited any fixed deposits from the public in terms of Section 58A of the Companies Act, 1956. Directors responsibility statement: i) That in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures; ii) That the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the sate of affairs of the Company at the end of the financial year and/of the Profit or Loss of the company for that period; iii) The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; iv) The Directors had prepared the annual accounts on a going concern basis. Auditors: M/s. Mogili & Sridhar & Co., Chartered Accountants are eligible for appointment as Auditors from the conclusion of this meeting and up to the conclusion of the next Annual General Meeting. Corporate Governance Report: It is annexed as a seperate part of the Report on Corporate Governance. Personnel: The relations between the management and the staff were very cordial throughout this year. Your Directors take this opportunity to record their appreciation for the CoOperation and loyal services rendered by the employees. ACKNOWLEDGEMENTS Your Directors gratefully acknowledge with thanks the constructive guidance and support extended by Banks and Government Agencies. For and on behalf of the board of Kalyani Refineries Limited Sd/- Sd/- Place: Hyderabad V.V.S. Ram Narasimha Rao V.V. Subba Rao Date : 28-08-2005 Managing Director Chairman MANAGEMENT DISCUSSION AND ANALYSIS The Company is the manufacturer of oil products such as Castrol oil, Rice Bran oil, Sun Flower Refined oil etc. The main raw material of the products is Soyabeen seed and caster cake. The availability of raw material is depending upon crop production. The cost of production is based upon the procurement cost of the raw material. Your company is taking suitable measures to attain high turnover and high yield in compete with competitors. Financial position: The Company was referred to BIFR in 2004 and also submitted the OTS proposal to IDBI and Canara Bank leader of the consortium. Bank of Baroda, Lakshmi Vilas Bank being the members of the consortium. Canara Bank already approved the proposal for OTS as leader of the consortium. Lakshmi Vilas Bank also approved the OTS and clearance from Bank of Baroda is awaited. The proposal with IDBI also cleared for the OTS and arrangement for the payment has to be made. For and on behalf of the board of Kalyani Refineries Limited Sd/- Sd/- Place: Hyderabad V.V.S. Ram Narasimha Rao V.V. Subba Rao Date : 28-08-2005 Managing Director Chairman