ANNUAL REPORT 1998-99
Your Directors have pleasure in presenting their report together with the
Accounts for 9 months period ended June 30, 1999.
The period under review was significant one for your Company. The plant
operations stabilised during the period and achieved several milestones in
terms of production, cost and quality. This trend is continuing in the
current year and with the expected firming up of pulp prices the operating
performance for the current year is expected to be better.
With increasing global competition and keeping in mind the need for meeting
the challenges of the market economy, it has become imperative to align the
different strengths and synergies within the Group. This, as per the
Group's strategy, could be achieved by integrating the pulp business of the
Company with the Writing and Printing Paper Business of the Group. The
Scheme of Arrangement to give effect to these proposals would be put forth
to you for consideration and approval. This proposal, your Directors are
confident, would be beneficial to the interests of the shareholders. Post
the Scheme of Arrangement your Company would cease to be a manufacturing
company and would become an Investment Company.
Due to paucity of operating profits for the period under review your
Directors thought it prudent not to recommend any dividend on equity shares
for the financial year.
Your Company continued to accept Public Deposits during the period under
review. The outstanding deposits as on June 30, 1999 were Rs.708.51 lakhs.
As required under Section 212 of the Companies Act, 1956, the Statement and
Accounts of Subsidiary Company viz., BILT Chemicals Limited are attached
Mr A K Kelappan has ceased to be Executive Director with effect from 1st
October/ 1999 and continues to a Director on the Board and is liable to
retire by rotation.
During the period under review, Mr M.M.Kapur, representative of UTI
resigned from the Board and Mr. R Subramanian has been appointed as
Additional Director with effect from 28.06.1999. The tenure of Mr. R
Subramanian being Additional Director comes to an end at the ensuing AGM. A
notice has been received intending to appoint Mr R Subramanian as Director
of the Company.
M/s.Hemant Luthra, N Santosh Reddy, C.P.Mapa, Directors of your Company are
retiring at the ensuing Annual General Meeting and are eligible for re-
Your Company had maintained adequate levels of raw material inventory
during the period under review. Farm Forestry measures are also being
continued as a long term strategy and is expected to bear fruit in the
years to come. Post the proposed restructuring, these efforts would be
M/s M.R.Devineni & Co., Chartered Accountants, Auditors of the Company
retire and are eligible for reappointment. A Special Resolution pursuant to
Section 224-A of the Companies Act, 1956 has to be adopted for this
The Auditors' comments in para 2(d),(e),(f) and (g) of their report read
with Notes 2(e), 11,13,14, and 15 are considered to be self explanatory.
The Company has complied with the Accounting Standards 6 and 10 on
capitalising the project and the related expenditure. The Investments held
by the Company are strategic in nature and hence the Company has decided to
value them at cost.
Your Company had taken all steps and achieved Y2K Compliance in all its
utilities and processes. Contingency plans have been made to meet any kind
Industrial relations were cordial during the period under review.
PARTICULARS OF EMPLOYEES
Information pursuant to Section 217 (2-A) of the Companies Act, 1956 is
annexed hereto and forms part of this Report. Information regarding
employees seconded from Ballarpur Industries Limited does not form part of
PARTICULARS IN RESPECT OF CONSERVATION OF ENERGY, ETC.
Pursuant to Section 217(1)(e) of the Companies Act, 1956, as required by
the Companies (Disclosure of particulars in the Report of Board of
Directors) Rules, 1988, Your Directors are pleased to furnish the required
information in the Annexure hereto which forms part of the Report.
Your Directors convey their sincere thanks to all the Shareholders,
Ballarpur Industries Limited, the State Government of Andhra Pradesh,
Financial Institutions and Banks for the co-operation extended to he
By Order of the Board
A.K.KELAPPAN GAUTAM THAPAR
Director Managing Director
Place: New Delhi
Date : 27-10-1999.
ANNEXURE TO DIRECTORS' REPORT
Energy Conservation Measures Taken-Specific Measures taken during the year
Reduction in power consumption by system improvement & effective load
engagement in own power plant.
FORM - B
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO TECHNOLOGY ABSORPTION,
RESEARCH & DEVELOPMENT
1.Specific areas in which R & D Carried out by the Company
Optimization of different bleaching sequence to improve final whiteness
of the pulp optimization of wood mix ratio for increasing the yield.
2 Benefits derived as a result of above R & D
Cost saving inputs improvement in Pulp quality.
3 Future plant of action
4 Expenditure on R & D
Technology Absorption, Adaptation & Innovation:
1.Efforts made in brief towards Technology absorption improvement of pulp
In house R & D technology has been successfully absorbed for the
improvement of pulp
2 Benefits derived as a Result of the above
Further improvement in quality of pulp
3 In case of Imported Technology (imported during the last 5 years reckoned
from the beginning of the financial year)
b.Year of Import
c.Has Technology been fully absorbed
d.If not fully absorbed areas where this has not taken place, reasons
therefor and future plan of tin
C. Foreign Exchange Earnings and Outgo
a. Activities relating to exports, initiatives taken to increase
b. Total foreign used Rs 103.20 lacs
c. Foreiqn Exchange earned Rs.231796 lacs