regent chemicals ltd Directors report

REGENT CHEMICALS LIMITED ANNUAL REPORT 2002-2003 DIRECTORS REPORT TO THE MEMBERS Dear Shareholders, Your Directors present the Twentyninth Annual Report together with the Audited Statement of the Accounts of the Company for the year ended 31st March, 2003. 1. FINANCIAL RESULTS (Rs. in lacs) Current Year Previous Year 31.3.2003 31.3.2002 Gross Profit / (Loss) (0.62) (0.87) Less : Interest 0.01 0.74 Depreciation 15.09 15.10 15.10 15.84 Profit / (Loss) for the year (15.72) (16.71) (333.06) (316.35) Balance carried forward to Balance Sheet (348.78) (333.06) In view of the losses incurred and accumulated losses of previous year. Directors regret their inability to recommend any dividend. REVIEW OF OPERATIONS The plant continues to remain shutdown since May, 1993. The Domestic demand of Peracetamol of remained stagnant throughout the year under review. The availability of Chinese material at cheaper rates compared to product manufactured locally did not allow the Company to recommence production. The Company continued to show losses since it had to incur fixed expenses like interest depreciation and other expenses. The loss incurred during the year under review after meeting all the expenses including interest and depreciation was Rs. 15.72 lacs as compared to Rs. 16.71 lacs in the previous year. FUTURE PROSPECTS As there is no manufacturing activities carried on by the Company, only fixed expenses are being incurred. Since there is excess supply situation in the market, it is not profitable to restart the production of paracetamol unless demand is domestic as well as export market is reviewed. At present, the Company is facing severe liquidity crunch. Your management is exploring all the possibilities to put the Company on the right track. DIRECTORS Shri S. M. Charaniya a Director of the Company, retires by rotation at the conclusion of the forthcoming Annual General Meeting and being eligible offers himself for re-appointment. AUDITORS Ms. N.G. Majithia & Company, Chartered Accountants, the Statutory Auditors of the Company hold office till the conclusion of the Annual General Meeting. The Board recommends, the re-appointment of M/s N.G. Majithia & Company, Chartered Accountants, as the Statutory Auditors of the Company. PARTICULARS OF EMPLOYEES The Company does not have any employee on its pay roll. Hence, particulars under section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of employees) Rules, 1975 as amended is not applicable to the Company for the year under review. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO. Information in accordance with the provisions of Section 217 (1) (e) of the Companies Act, 1956 read with Companies (Disclosure of the particulars in the report of Board of Directors) Rules 1988 for the year ended 31st March, 2003 is annexed to this Report. DIRECTORS RESPONSIBILITY STATEMENT a) In the preparation of the annual accounts, the applicable accounting standards have been followed alongwith proper explanation relating to material departures. b) Appropriate accounting policies have been selected and applied consistently and judgements and estimates made are reasonably and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2003 and of the Loss of the Company for the year ended 31st March, 2003. c) 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; d) the annual accounts have been prepared on a going concern basis. EMPLOYEES Due to suspension of production activities, the Company has retrenched all the employees of the plant. Necessary retrenchment compensation was paid to all the employees concerned. ACKNOWLEDGEMENTS Your Directors express their sincere gratitude to the Companys Financial Institution, Bankers and Shareholders for their support and co-operation. For and on behalf of the Board A.H. DAWOODANI Chairman Place : Mumbai Date : 30th August, 2003 Registered Office: Prem Industrial Estate, Sant Sarvata X Road No.1, Mustafa Bazar, Byculta Mumbai - 400 010. ANNEXURE FORMING PART OF THE DIRECTORS REPORT PURSUANT TO SECTION 217 (1)(e) OF THE COMPANIES ACT, 1956 READ WITH THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES 1988. FORM - A Form for disclosure of particulars with respect to Conservation of Energy. Current Previous Year Year 2002-2003 2001-2002 A. POWER & FUEL CONSUMPTION 1) ELECTRICITY a) Purchased unit in (000 kwh) NIL NIL Total amount (in Rs.) NIL NIL Rate/unit (in Rs.) NIL NIL b) Own Generation i) Through Diesel Generator Unit (in 000 kwh) NIL NIL Unit per litre of Diesel Oil NIL NIL Cost per Unit NIL NIL ii) Through steam turbine generator Unit (in 000 kwh) NIL NIL Unit per litre NIL NIL Cost per Unit NIL NIL 2) COAL Quantity (M.T.) NIL NIL Total Cost NIL NIL Average Rate NIL NIL 3) FURNANCE OIL / L.D.O Quantity (in K. litres) NIL NIL Total Amount (Rs.) NIL NIL Average Rate (Rs. per K.L) NIL NIL 4) OTHER INTERNAL GENERATION Quantity NIL NIL Total Cost NIL NIL Rate / Unit NIL NIL FORM B FORM OF DISCLOSURE OF PARTICULARS WITH RESPECT TO ABSORPTION OF TECHNOLOGY, RESEARCH AND DEVELOPMENT RESEARCH AND DEVELOPMENT The Company at present does not have a separate in-house R&D department. However, efforts are being made to review the existing processes of manufacturing and to have a separate R&D department. No expenditure on R&D have been incurred during the year. TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION 1) The Company has not entered into collaboration with any overseas parties. No technology absorption has been undertaken during the year under review. With respect to innovation efforts are being made for simplifying methodology of operations. 2) In case of imported technology (Imported during the last five years reckoned from the beginning of the financial year) following information may be furnished. a) Technology imported NIL b) Year of import NIL c) Has technology been fully absorbed NIL d) If not fully absorbed areas where this has not taken place, reasons therefore and future plan of action NIL FOREIGN EXCHANGE EARNINGS AND OUTGO 1) Total foreign exchange earned (Rupees in lacs) NIL 2) Total foreign exchange used (Rupees in lacs) NIL For and on behalf of the Board, A.H. DAWOODANI Chairman Place : Mumbai Date : 30th August, 2003