shreeji phosphate ltd Directors report

SHREEJI PHOSPHATE LIMITED ANNUAL REPORT 2002-2003 DIRECTORS REPORT To The Members SHREEJI PHOSPHATE LIMITED The Directors have pleasure in presenting their 20th Annual Report together with the annual accounts of the Company for the year ended on 31st March, 2003. 1. FINANCIAL RESULTS: (Rs. in Lacs) 2002-2003 2001-2002 Total Turnover end other Income 876.14 842.88 Operational Profit / (Loss) 1083.48 336.01 Loss: Depreciation 71.64 71.64 Profit / (Loss) Before Taxation (1011.84) (407.64) Loss: Provision for Taxation 0.00 0.00 Profit / (Loss) Alter Taxation (1011.84) (407.63) Proposed Dividend - - Balance Carried to Balance Sheet (1142.25) (130.40) 2. OPERATIONS IN RETROSPECT The agricultural business remained affected too in the rabi Season also due to the weak monsoon. The sales of the company was affected in the current year. There ware almost draught like situation in the state of Guajarat, M.P. Rajasthan and Maharashtra has badly distributed the sale of fertilizer and the Company could not run the plant to its optimum level. In the current year the Board of the Company has worked hard to recover the dues from the debtors as well as tried to sell personnel property of the director in order to bring the liquidity in the business. Due to the weak monsoon since last 2-3 years it has disturbed the payment cycle as this products is ultimately supplied to farmer and when they could not make payment to dealers due to dealars due failrity of the business season since 4 - 5 times. Despite this the Company is planning to file civil sult against some of its parties and is quite confident of recovering the amount in any manner. In the current year the Company has disposed of its majority of investments as there were no chance of rise in price of the shares of the Company which were in heavy loss and also suspended at the Mumbai Stock Exchange. In the forthcoming year the Company has targeted sales of 50000 MT of SSP, provided there is good monsoon. The Company is taking necessary steps required in its plant to achieve this target without any technical / mechanical breakdown. The Board of Directors of its meeting has decided to issue and allot equity shares to creditors, Promoters, Directors. This will be in the form of preferential allotment of equity shares and shall have to be according to guidelines of SEBI and the Stock Exchange. The conversion of debts in to equity will reduced the burden of interest and debts and will also be broaden the Equity base. This will increase the profitability alongwith networth of the Company. This will help the Company to repay its entire term loan to Sicom as well as working capital loan to Charotar Nagrik Bahakari Bank Ltd. within short time. We have decided to take the opinion of expert technician for the condition of our Building and and Plant & Machinery as there are high acidic process in the plant. Due to Suplhuric acid many assets at the plant has been covered by rust. So we shall take the opinion and accordingly decide for the maintenance / replacement of the same. 3. DIVIDEND In view of loss, your directors do not recommend payment of any dividend to the shareholders. 4. DIRECTORATE : Shri R.C. Parwal who retires by rotation and being eligible offers himself for re-appointment. 5. DIRECTORS RESPONSIBILITY STATEMENT: In terms of Section 217(2AA) of the Companies Act, 1958, the Directors would like to state that:- i. In the preparation of the annual accounts, the applicable accounting standards have been followed. ii. The Directors have selected search accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent so 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 under review. iii. The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. iv. The Directors have prepared annual accounts on a going concern basis. 6. AUDIT COMMITTEE In compliance of Section 292A of the Companies Act. 1956 an Audit Committee has been constituted, comprising of Shir C.H. Chettarji, Shri D.M. Rao and Shri K.M. Trivedi, as Directors to perform Inter alias various functions as required to be performed in terms of the said provisions. 7. CORPORATE GOVERNANCE The Guidelines issued by SEBI in respect of corporate governance are applicable to the Company w.e.f. financial year 2002-03, necessary steps being taken to comply with the governance. 8. ENERGY, TECHNOLOGY & FOREIGN EXCHANGE Information in accordance with the provisions of the section 217 (1) (e) of the Companies Act, 1956 read with Companies (Disclosures of Particulars in the Report of Board of Directors) Rules, 1968 regarding conservation of energy, technology absorption and foreign exchange earning and outgo is given in the Annexure forming part of this report. 9. PARTICULARS OF EMPLOYEES As required under the provisions of section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 information is nor furnished as no employee is covered under the aside provision. 10. PUBLIC DEPOSITS There has been no unclaimed / unpaid deposits during the year under review. 11. AUDITORS M/s. Bharat Parikh & Associates, Chartered Accountants, Vadodars Auditors of the Company retire at the conclusion of this AGM and being eligible offer themselves for appointment. 12. ACKNOWLEDGEMENT : Your Directors also thank their assistance and co-operation. Your Directors also wish to place on record their appreciation for the support of Shareholders and devoted services rendered by this executives and employees at all levels. By order of the Board of Directors Dated : 9th August, 2003 K.M. Trivedi Place : Vadodara Chairman ANNEXURE TO DIRECTORS REPORT Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo. Section 217(1)(9) of the Companies Act, 1856. THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988. CONSERVATION OF ENERGY Form "A" Disclosure of particulars with respect to conversion of Energy. (To the extent applicable) A. POWER & FUEL CONSERVATION 2002-2003 2001-2002 1. ELECTRICITY a) PURCHASED: Unit NIL NIL Total Amount (Rs.) NIL NIL Rate / Unit NIL NIL b) OTHER GENERATION i) Through Diesel / Petrol Generation Unit 255262 300031 Total Amount in Rs. 4719794 4125428 Cost / Unit In Rs. 18.49 13.75 ii) Through Turbine/Generator NIL NIL 2. COAL NIL NIL 3. FURNACE OIL Quantity KL NIL NIL Total Amount (Rs.) NIL NIL Average Rate / KL Rs. NIL NIL 4. OTHERS By Product Stream in Tone N.A. N.A. L.P. Gas N.A. N.A. Quantity N.A. N.A. Total Amount N.A. N.A. Average Rate / MT N.A. N.A. B. CONSUMPTION PER UNIT OF PRODUCTION (Rs.) (Rs.) PARTICULARS PRODUCT UNIT 2002-2003 2001-2002 Electricity (KWH) CEMENT M.T - - Electricity (KWH) SINGLR SUPER M.T 57.29 50.30 PHOSPHATE TECHNOLOGY ABSORPTION Form "B" (See Rule 2) Disclosure of particulars with respect to Technology Absorption (To the extent applicable) A. RESEARCH AND DEVELOPMENT (R&D) 1. Specific areas in which R&D carried out by the Company. Nil 2. Benefits derived as a result of the above R&D Nil 3. Future plan of action Nil 4. Expenditure on R & D Nil B. TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATIONS 1. Efforts , in brief, made towards technology Absorption, Adaptation and Innovation. Nil 2. Benefits derived as a result of the above: Nil 3. Information regarding technology imported during last 5 years: (a) Technology Imported NO (b) Year of Import N.A (c) Has Technology been fully absorbed. N.A (d) If not fully absorbed areas where this has N.A not taken place, reasons therefore and future plans of action. C. FOREIGN EXCHANGE EARNING AND OUTGO Foreign Exchange Earned Nil Foreign Exchange Used Nil