Your Directors have pleasure in presenting the Fifty Fourth Annual Report
alongwith Audited Accounts of the Company for the year ended 31 st
In view of the above position, the Directors are unable to recommend any
dividend for the period under report.
Inspite of sincere efforts put in by the management, the operational
results of the company are unfavourable during the year.
SOLVENT EXTRACTION PLANT AND REFINERY
Out of total export of Soya Meal from India, about 60% of the export is
made to South East Asian countries. Due to drastic crash in their
currencies, the demand from these countries dwindled by 75% resulting in
poor demand for Soya Meal from India. This led to the crash of Soyameal
price in India from US $ 275 to US $ 185. The poor demand for Soyameal and
damage to Soya crops, due to untimely rains and hailstorm resulted in a
disaster for the Soya industry in India. As was the trend in the industry,
we also were forced to stoP the Production iq our units.
During the year, the Soya Division processed 8436 MTs of oil bearing
SUGAR FACTORY WORKING
Due to non availabity and irregular supply of Sugar cane, Sugar Factory did
not operate at full capacity. The excellent price for Gur in the market and
our inability to make sugarcane payment in time encouraged the cultivators
to divert their sugar cane for production of Gur. This affected the supply
of Sugar cane to our plant. Hence we could only crush 69,579 MTs of sugar
cane during the financial year 1997-98.
RESEARCH AND DEVELOPMENT FARM
The research farm continued to produce quality seeds for sugar cane and
soya bean. When properly blended with outside purchases it helps improve
recoveries. However due to unfavourable agriculture conditions all of our
efforts proved futile and we could not get the desired results.
REAL ESTATE ACTIVITIES
The low cost housing scheme launched by BSI REALTORS a partnership firm in
which your Company is a major partner holding 95 % of the capital could not
take off due to poor market condition of Real Estate activities. The market
price of the properties had drastically come down in Mumbai, which had also
adversely effect our real estate activities.
During the year also, your company could not do large trading operations
due to non-availability of bank limits and disparity in the trade.
Due to the restrictions imposed by SEBI, we had stopped collecting
applications under the various schemes Launched by the company for Mango
REFERENCE TO BIFR -
In view of the Company becoming a Sick Industrial Company within the
meaning of Sick Industrial Companies (Special Provisions Act, 1985,
reference has been made to the Board of Industrial and Financial Re-
Construction IBIFR) and the same has been registered on 17 th June,1998.
The Annual Report of the subsidiary company viz. BSI Securities
International Ltd. is annexed to the Balance Sheet of the Company in
accordance with the provision of Section 212 of the Companies Act,1956.
However, inspite of our best efforts, it has not been possible for the
other subsidiary companies viz. BSI Global Pte. Ltd. and BSI Mauritius Ltd.
to finalise their Annual Accounts for the year ended on 30.06.1997 and
31.03.1998 respectively. Hence the copies of the Balance Sheet and Profit
and Loss Accounts for the respective years have not been attached with the
Annual Accounts of this Company. The same shall be circulated to the
Members of the Company as soon as their accounts are finalised and become
available to the Company.
The total Fixed Deposits of the Company stood at Rs. 280.76 Lacs as on 31
st March, 1998. There were no over due deposits other than unclaimed
deposits amounting to Rs. 59,000/-.
Your Company has endeavoured to maintain best of Industrial relations. Some
problems have, however arisen due to severe financial crunch. lndustrial
Relations in all the units continued to remain cordial throughout the year.
The Directors express their sincere appreciation of the valuable services
rendered by the workers, staff and Executives of the Company.
Shri C.R. Trivedi, Shri Ranjit Vithaldas, and Sint. Bharti N. Wadhwana have
resigned from the Directorship of the Company within the year under report.
The Board wishes to place on record its appreciation of the valuable
contribution received from Shri C.R. Trivedi, Shri Ranjit Vithaldas and
Smt. Bharti N. Wadhwana, during their tenure as Directors of the Company.
Shri Yatin N. Wadhwana resigned from the Executive Directorship of the
Company. However, he continued to be a Director on the Board. The Board
places its warm appreciation to the services rendered by Shri Yatin N.
Wadhwana as an Executive Director (Commercial) of the Company.
Shri Kiran N. Wadhwana is due to retire by rotation and being eligible,
offer himself for re-appointment. The Board recommends his re-appointment .
M/s Tarapore & Company, the Auditors of the Company, retire at the
conclusion of the ensuing Annual General Meeting and being eligible. they
have offered themselves for re-appointment.
A certificate under Section 224 (lB) of the Companies Act, 1956 has been
obtained from the Auditors. The observations in the Auditors Report are
dealt with in Notes to Accounts at appropriate places and being self-
exPlanatorY need no further explanation.
COMPANIES DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS)
The particulars of conservation of Energy, Technology Absorption and
Foreign Exchange Earnings and outgo as required to be given in accordance
with the Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules,1988, are given in the annexure attached.
PARTICULARS OF EMPLOYEES
The particulars of employees as required to be given under Section 217(2A)
of the Companies Act,1956 are given in the annexure hereto and form part of
Your Directors wish to place on record their whole-hearted co-operation
received from the Bankers, Financial Institutions, Central and State
Government Authorities during the year under review and we look forward to
their continued support in the future also.
On behalf of the Board
Place: Bhopal Yogesh N. Wadhwana
Dated: 25th November,1998 Chairman & Managinq Director
ANNEXURE A TO THE DIRECTORS' REPORT
Form for disclosure of particulars with respect to Absorption
RESEARCH AND DEVELOPMENT
I. Different varieties have been under trial for its adoption.
Il. Use of bio-fertilizer like Phosphate solublizing bacteria, Azatovactor
and Rhizobium for minimizing the expenditure on the fertilizers.
Ill. Drip Irrigation System in operation to take care of scarcity of water
on 450 acres of land.
IV. Quality seed production of Sugar Cane on own farms for distribution
among the farmers in the command area of the factory.
V. Different yield of soya varieties introduced to harvest minimum unit
Vl. Seed production of different crop introduced to serve the local farms.
FUTURE PLAN OF ACTION
I. Appropriate steps have been taken for installing full fledged laboratory
for soil and crop tests with tissue culture
ll. Water "harvesting" and harnessing on the farm by adopting appropriate
water conservation practices.
Ill. Preparation of vermiculture from filter press mud and agriculture
IV. To have sustainable forest and horticulture crops on uncultivable
V. Full use of mechanisation on the farms.
ADOPTION AND INNOVATIONS
Vl. Intercropping sugar cane crop.
Vll. Changing the culture of planting sugar cane from Jan/Feb to Sep/Oct.
Vlll. Seed production of different crops.
The focal point of all above is to raise yield per unit area and serve the
On behalf of the Board
Place : Bhopal Yogesh N. Wadhwana
Dated : 25th November,1998 Chairman & Managing