S & S Industries & Enterprises Ltd Directors Report.
S&S INDUSTRIES AND ENTERPRISES LIMITED
Your Directors have great pleasure in presenting the FIFTH ANNUAL REPORT of
your Company and the Audited Statement of Accounts for the year ended 31st
Your Directors are pleased to recommend for your consideration, payment of
DIVIDEND @ 16% on 1,27,67,020 Equity Shares of Rs. 10/- each. Your
Directors have been constrained to maintain the Dividend at the same level
as that of the previous year as a measure of prudence and in order to
conserve the resources for the future.
2. INCOME TAX PROVISION
Your Directors have been advised that no tax liability would devolve on
your Company during the year under review, in view of the various tax
reliefs available under the Income Tax Act, 1961 and the Rules framed
thereunder from time to time.
3. EXPORT HOUSE
Your Directors are pleased to inform that your Company has attained during
the year under review the coveted status of an EXPORT HOUSE, effective from
1st April 1995. This recognition is sure to enhance the image of your
Company in the International market, besides entitling it to special
concessions and benefits provided by the Government of India.
During the year under review, your Company achieved a Total turnover of
Rs87.01 Crores (including sales during trial operations) as against
Rs.63.56 crores in 1994-95 recording an increase of 37% over the previous
year. Profit after tax at Rs.6.21 crores during the year compared to
Rs.4.86 crores in 1994-95 also showed a significant increase.
Exports Sales in the AQUA-TECH DIVISION rose to Rs.19.11 crores from
Rs.11.03 crores in the previous year. This increase of nearly 73%, deserves
to be recognised as a creditable achievement particularly considering the
extremely difficult situation that prevailed in the Aquaculture Industry
arising out of the Supreme Courts Interim Order on the operations of
Aquaculture Units coupled with the social problems and the wide-spread
disease attack throughout the coast line of India. However, with prudent
and scientific Management, your Company was able to sustain its Export
activities and your Companys cultured Shrimps continue to be well received
in the Overseas Markets particularly in Japan, Middle East, Europe and USA.
The operations of your Companys AQUA CONSULTANCY DIVISION were at a IGW
key during the year as new Aquaculture Projects could not be taken up due
to the Supreme Court Order referred to above. Your Directors hope that the
position would improve soon.
In the AGRO-TECH DIVISION, the Refinery Plant witnessed a remarkable growth
during the year in terms of production and sales. With enhanced Capacity
Utilisation, 14188 MT of high quality Edible Oils were produced during the
year generating a turnover of Rs. 60.35 Crores compared to Rs. 48.79 Crores
achieved in 1994 - 95.
VENDEE - the unique Automatic Edible Oil Vending Machine introduced by your
Company is now a household name in India and attained geographical
expansion of its coverage with 250 outlets in operation serving the
consumers at large. During the year under review, your Company has also
introduced new generation Vending Machines offering a wider choice for the
During the year under review, your Company successfully commissioned the
most modem 200 TPD Seed Processing- cum-Solvent Extraction Plant with
effect from 1st March 1996 to ensure continuous supply of quality Crude Oil
to the Refinery. The operations of this new Seed Processing Plant have now
been stablised during the Current year.
The Agricultural Extension Services programme for Oil Seed cultivation and
development which acts as a Catalyst for the performance of the AGRO TECH
Division has been further strengthened during the year under review and
more areas are being brought under Oil Seed cultivation in the current
The ENVIRO-TECH DIVISION performed reasonably during the year with increase
in turnover from Rs.0.58 Crores to Rs.0.90 Crores by the sale of Water
related consumer durables and Project executions. Your Directors are
hopeful that the performance of this Division will further improve in the
years to come.
Your Directors are pleased to report that during the year under review, the
new MINERAL WATER Plants at Mumbai and Hyderabad commenced operations, and
these two, together with the Plant at Arcot commissioned during the
previous year generated a turnover of Rs.1.26 Crores. Encouraged by the
customer acceptance and overwhelming support, your Company is taking all
steps to popularise its A4UA COOL brand of Mineral Water to capture a
sizeable market share in the coming years.
Your Company during the year under review, pioneered the concept of
Automatic Vending of Mineral Water with the introduction of Water Vendee.
Your Company has already installed 12 WATER VENDEE Outlets in the city of
Madras through a Franchisee network generating a turnover of Rs. 2.49
Crores during the year under review. Your Company is planning to extend the
coverage of WATER VENDEE in the current year to other major centres in
4. FUTURE PROSPECTS
Sensing that the International demand for the cultured Shrimps is ever
increasing, your Company has already taken up the Project for the expansion
of Water Spread Area of the Shrimp Farm. Work on this Project, though
delayed due to legal issues, is nearing completion and is expected to go
into commercial operations during 1997.
Your Company has been allotted a command area of nearly 25000 Ha. by the
Governments of Karnataka, Andhra Pradesh and Tamil Nadu for the Cultivation
of Oil Palm. During the current year, your Company has already started
importing Oil Palm sprouts and has commenced Nursery operations also. Your
Company is sure to play a significant role in the field of Oil Palm
cultivation and manufacture of Palm Oil and other down stream products in
India leading to import substitution and possible reduction in the prices
of Edible Oils.
Your Company is constantly evaluating proposals for expansion and
diversification of its activities with several Project Proposals currently
under study and Proposals would be brought before the Members for approval,
once the details are finalised.
Simulataneouly several steps have been initiated to prepare your Company
for taking on the challenges of the future in an environment of rapid
growth. The services of two reputed Companies in the field of Information
Technology have been commissioned to develop and implement an integrated IT
solution covering the entire operations of the Company. HRD activities
within the Company have also been strengthened with specific emphasis on
Training and Development to prepare the Companys personnel for the future.
5. FIXED DEPOSITS
Your Company had one unclaimed Deposit amounting to Rs.15,000/- as at
6. SUBSIDIARY COMPANY
M/s. S&S Finance And Investments Limited became a fully owned Subsidiary of
your Company with effect from 2nd February 1996 and a Statement pursuant to
Section 212 of the Companies Act, 1956 together with the Audited Accounts
of the Subsidiary Company are attached hereto.
During the year under review, Mr V S Rao has been appointed as a Director
of the Company effective from 28th November, 1995 as a Nominee of
Industrial Development Bank of India and he shall be a Non-retiring Non
Messrs V. Karthikeyan, T.K. Srinivasan and N.B.Danuvala, Directors of your
Company retire by rotation and are eligible for reappointment. Necessary
Resolutions have been set out in the Notice convening the Annual General
Meeting for consideration and approval by the Members.
Mr. A.R. Santhanaknshnan was appointed as Managing Director of the Company
for a period of five years with effect from 18th October 1996 and the
remuneration and the perquisites payable to him were approved by the
Members at the General Meetings held on 23rd October 1991 and 1st November
1994. Since the present term of his Office as Managing Director expires on
17th October 1996, the Board of Directors have reappointed Mr. A.R.
Santhanakrishnan for a further period of five years on the increased
remuneration in line with increased responsibilities. Since the payment of
increased remuneration to the Managing Director requires the approval of
the Members, necessary Resolutions have been set out in the Notice
convening the Annual General Meeting for consideration and approval.
Considering the current level of growth achieved by your Company, projected
increase in the activities and the setting up of various
Expansion/Divisification activities on the anvil, it is proposed to
increase the borrowing powers of the Board of Directors of the Company from
the present limit of Rs.25.00 Crores to Rs.50.00 Crores over and above the
paid up capital and free reserves of the Company. Consequent to the
increase in the borrowing powers and raising of loans to meet the
requirements, the Board of Directors need to be further authorised and
empowered to create charges/mortgages in favour of the Lenders. Both the
increase of Borrowing powers, and the creation of charges/mortgages require
the prior approval of the Members pursuant to Section 293 (1) (d) and 293
(1) (a) respectively of the Companies Act, 1956 and necessary Resolutions
have been set out in the Notice for consideration and approval.
The Auditors of the Company M/s.R.Subramanian & Co. Chartered Accountants,
Madras, retire and are eligible for reappointment. You are requested to
appoint Auditors for the current year.
Information required under Section 217 (2A) of the Companies Act, 1956 read
with the rules framed thereunder is furnished in the annexed Statement 1.
11. DISCLOSURE WITH RESPECT TO CONSERVATION OF ENERGY ETC.
The particulars with respect to conservation of Energy etc. pursuant to
the Companies (Disclosure of particulars in the Report of Board of
Directors)Rules, 1988 are set out in the annexed Statement ll hereto and
forms part of this Report.
12. INDUSTRIAL RELATIONS
The Industrial Relations during the year under review in all the Divisions
Your Directors wish to place on record their appreciation of the whole-
hearted support and co-operation received from the various Departments of
the Central and State Governments, the Companys Bankers viz., State Bank
of India, Oriental Bank of Commerce, Indian Bank and The Vysya Bank
Limited, Industrial Development Bank of India, Unit Trust of India, LIC
Mutual Fund, GIC Mutual Fund, other Foreign and Indian Institutional
Investors. Your Directors wish to thank the Shareholders, Customers,
Dealers and Vendors of the Company for their continued support and
confidence. Your Directors also wish to place on record their special
appreciation of the efforts of the employees at all levels.
ANNEXURE TO THE DIRECTORS REPORT
INFORMATION PURSUANT TO COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT
OF BOARD OF DIRECTORS) RULES 1988
A) CONSERVATION OF ENERGY
a) Most of your Companys operations are not power-intensive. However, your
Company continues to put in sustained efforts to improve Energy generation
and utilisation, by closely monitoring the production processes and by
carrying out preventive maintenance of transformers and generators
periodically. Appropriate further investments would be made as and when the
b) Based on the experience gained, plans are already under implementation
for reduction of Consumption and for Conservation of Energy. Energy Audits
have been taken up in all the Divisions and the recommendations will be
implemented in the current year.
c) With the implementation of the proposals now under valuation,. energy
consumption is likely to reduce significantly in stages resulting in
reduction in cost of production of Edible Oils and Extraction of Raw Oil.
d) Power consumption and other related details in respect of the Edible Oil
Refinery and Solvent Extraction Plant are furnished in the prescribed Form
A annexed hereunder.
Particulars relating to Conservation of Energy in respect of
Refining of Edible Oils and Extraction of Raw Oil.
A. POWER & FUEL CONSUMPTION
Current Year Previous Year
Units 14,03,828 13,74,510
Total Amount (Rs. in Lacs)
i) Demand Charges 4.75 4.55
ii) Amount for units
consumed 33.41 19.94
Total 38.16 24.49
Rate per Unit 2.72 1.78
b) Own generation
i) Through diesel generator
Units 1,63,432 81,760
Litres of diesel oil 49,005 26,655
Units Per litre of Diesel Oil 7.72 3.07
Cost of diesel (Rs. in Lacs) 4.62 2.12
Cost per unit 2.83 2.59
2. Husk (Specify Quantity & where used)
i) Husk in the boiler for steam generation:
Quantity (M.T.) 4,688 4,701
Total Cost (Rs. in lacs) 6.44 6.75
3. Other/internal generation Thermic fluid and Hexane as medium and diesel
for generation of heat energy
i. Thermic Fluid 81,975 84,926
Quantity (Ltrs.) 6.44 6.75
Total Cost (Rs. in Lacs) 7.85 7.95
Quantity 15,951 Nil
Total Cost (Rs. in Lacs) 2.00 Nil
Average Rate 12.55 Nil
B. CONSUMPTION PER UNIT OF PRODUCTION
Unit (in M.T.) (in M.T.)
Products Edible Oils
Production (M.T.) 61,210 12,278
Electricity (units) 96.68 118.60
Husk (M.T.) 0.29 0.30
1. Specific areas in which R & D was carried out by the Company: The
following R & D work is being carried out in the various Divisions of the
- Augumentation of Shrimp production by Disease prevention
- Microbiological studies on Soil and Water
- Bacterial control using natural herbal microbial products
- Indigenisation of Feed
- Differential Stocking Density and analysis of growth pattern.
- Performance of Hybrid Oil Seeds in Rainfed / Irrigated land as a separate
- Development of low cost alternatives for water treatment particularly for
conversion of saline water into drinking after.
2. Benefits derived
In the Aqua-tech Division, the R & D effort is expected to help detect in
advance disease problems which are likely to be encountered and assist the
growth of species, improve natural food production & contain the Feed
Conversion Ratio for optimising the Farm Productivity.
In the other Divisions, the benefits of R & D efforts are expected to
accrue to the Company in the coming years.
3. Future plans of action:
Your Company plans to strengthen the R & D work with a view to
progressively improve the operations and achieve higher productivity at
4. Expenditure on R & D
The expenditure incurred on R & D has been charged under the respective
revenue heads in the Profit & Loss Account and are not separately grouped.
TECHNOLOGY ABSORPTION, ADAPTATION & INNOVATION
1. Efforts, in brief, made towards technology absorption, adaptation and
innovation: The technology input received from the overseas Company for the
Shrimp Hatchery Project has been fully absorbed and adapted to suit Indian
2. Benefits derived as a result of the above:
The benefits have already started accruing in the form of enhanced
production and productivity levels.
3. In case of imported technology, (Imported during the last 5 years
reckoned from the beginning of the financial year) the following
information may be furnished:
The Company has not entered into any long term technical collaboration.
However, it had technical services / consultancy agreements as per details
1. Name of the exporter
M/s. HANAQUA INTERNATIONAL CORPORATION, M/s. SYSTEMS AQUACULTURE
TAIWAN MANAGEMENT INC., PHILIPPINES.
2. Details of technology imported
Supply of technical know-how/ consultancy Supply of technical know-how/
for the Shrimp Farm. consultancy for the Shrimp
3. Year of import
1991 - 92 1992 - 94.
4. Has the technology been fully absorbed
5. If not fully absorbed, areas where this
has not taken place and reasons thereof.
Not applicable. Not applicable.
C) FOREIGN EXCHANGE EARNINGS AND OUTGO
1. Your Company during the year under review exported Shrimps to Europe,
USA, Middle East and South East Asian countries. The value of Exports
increased from Rs.1219.13 lakhs during the previous year to Rs. 1910.64
lakhs during the year under review. Efforts are being made to diversify
into Export of Agro products, Mineral Water and Spring Water and also gain
entry into several other new markets.
2. Your Company, during the year under review, earned Rs.1910.64 lacs and
expended Rs. 32.05 lacs in Foreign Exchange.
(on behalf of the Board)
Place : Madras
Dated : 10th July, 1996.
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