CLARISIS ORGANICS LIMITED
ANNUAL REPORT 2002-2003
Your Directors are placing before you the 15th Annual Report and the
Audited Accounts for the financial year ended 31st March, 2003.
Salient features are reproduced below:
Particulars Year Ended Year Ended
31st March,2003 31st March,2002
Rs in lacs. Rs in lacs.
Profit before Interest, 33.59 -162.71
Depreciation and Income Tax
Less: Depreciation 90.42 85.29
Finance Charges 8.72 55.48
Net Loss 65.55 303.48
Add/(Loss): Balance brought Forward 726.78 441.31
Less: Transferred from Capital Reserves 0.00 18.01
Net Deficit carried Forward 792.33 726.78
A. 2002-2003 IN RETROSPECT
There has been an decline in turnover by 31.87% to Rs. 1081.81 lacs as
against Rs. 1588.07 lacs in the year 2001-02. The company incurred loss of
Rs. 65.54 lacs. against the loss of Rs.303.48 lacs of previous year.The
year under review was a difficult year, but the company has identified two
new products for exports thru merchant exporters and has exported products.
The following major factors affected the financial performance of the
company during the year:-
1. The company had a labour strike for two months hence there was no
production activity in those months.
2. Demand for Mono Chloro Benzene, Ortho Dichloro Benzene, was not good due
to recessionary trend prevailing during the year.
3. Due to non-availability of adequate margins on main products and no
production activity for two months the Company incurred the cash loss.
B. NEW PROJECTS
1. The company has undertaken 124 Tri Chloro Benzene expansion for which
necessary capital equipments has been purchased.
2. The Company during the year has successfully commissioned the 245 Tri
Chloro Aniline project.
3. The Company has invested in 124TCB and 245TCA projects, which are for
largely for exports.
1) The company has exported 124 Tri Chloro Benzene and 245 Tri Chloro
Aniline thru merchant exporters.
2) Value Added Products
The company has also strategies to enter into the production or conversion
of product into high value added products based on finished product
available to improve the profitability of the company during the coming
3) Future Prospects
The company is continuing its strategy, which was implemented in previous
a. Expanding existing facilities through debottlenecking activities
resulting in reducing per unit cost of products.
b. To continue developing high value added products based on company's
c. To improve profitability through process efficiencies and conservation
of energy to reduce product costs.
d. To improve the financial cash cycle to lower financial costs.
While the company is passing through challenging times, your Directors are
quite confident that they will continue to adjust to the changes of the
industry to ensure consolidation and future growth for maximizing and
improving the performance in the coming years.
The Company's Auditors M/s. C.R. Shah & Co. Chartered Accountant, Vadodara,
retire at the conclusion of the forthcoming Annual General Meeting and are
eligible for re-appointment.
The company has restructured its organization to meet the challenges and to
take advantage of the opportunities existing in the industry. There was a
labour strike which took place in August 02 and which lasted for till
September 02. (i.e. almost two months.) We take this opportunity to inform
that inspite of the challenges faced by the Company the company has been
able to overcome through sincere and dedicated efforts of all employees of
the company who are committed to see the company consolidate its operations
and are willing to contribute to these efforts. We would like to show our
special appreciation to all our employees in their endeavor for their
company and its performance.
Information pursuant to Section 217 (1)(e) of the Companies Act, 1956 read
with the Companies (Disclosure of Particulars in the Report of the Board of
Directors) Rules, 1988 is given in Annexure and forms part of this report.
Information of employees pursuant to Section 217 (2A) of the Companies Act,
1956 is Nil
Your Directors wish to place on record their sincere appreciation for the
co-operation and support extended to the company by the State and Central
Government, Financial Institutions, State Bank of India. The Board of
Directors also wishes to place on record their deep sense of appreciation
for the dedicated services rendered by the Officers and employees of the
Pursuant to Section 217(2AA) of the Companies Act as amended by the
Companies (Amendment) act, 2000, the Directors confirm that:
I. In the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanations relating to
II. Appropriate accounting policies have been selected and applied
consistently and have made judgements and estimates that are reasonable and
prudent, so as to give a true and fair view of the state of affairs of the
company as on 31st March 2003 and of the profit of the Company for the year
ended 31st March, 2003
III. 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.
IV. The annual accounts have been prepared on a going concern basis.
No hazardous emissions are let out in the atmosphere. The water as well as
chemical effluent discharge from the plant is fully treated to meet the
stipulated norms of Pollution Control Board.
The disclosure of particulars is NIL.
FOREIGN EXCHANGE EARNING AND OUTGO.
During the year there was no earning of foreign exchange.
On behalf of the Board of Directors
CLARISIS ORGANICS LIMITED
Ashok V. Patel Visubhai B. Patel
Jt. Managing Chairman
Place : VADODARA
Date : 17th June, 2003
ANNEXURE TO DIRECTOR'S REPORT
The Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988.
A) Conservation of Energy
The company has been giving utmost priority to conservation of various
forms of energy used in the manufacturing process. Energy Conservation
measures taken is:
* The Company is maintaining high level of efficiency in the operation of
steam generating equipment.
* The company is updating its existing process to better utilize the heat
available in the Plant to reduce steam consumption in the Plant.
* During the year the company received the award from Ministry of Energy
(Gujarat) for conservation of Electricity.
Total energy consumption and energy consumption per unit production:
I. Power and Fuel Consumption
a) Purchased Units (lacs) 1,050,100 13,12,994
b) Total Amount (Rs.) 5,426,553 69,71,504
c) Rate/Unit (Rs.) 5,16 5.31
2. Bio- Coal
a) Quantity (M.T) 2266.04 1712.81
b) Total Amount (Rs.) 4,134,404 31,54,632
c) Average Rate (Rs.) 1,824 1,842
3. Furnace Oil
a) Quantity (M.T) - 210.372
b) Total Amount (Rs.) - 20,96,120
c) Average Rate (Rs.) - 9,963
II. Consumption per unit of production
[Products- MCB,2,5DCNBODCB,124TCB, 245 TCA]
[Pr.Year- MCB,NB, 2,5DCNBODCB,124TCB]
a) Electricity (Unit/M.T) 231.95 177.99
b) Furnace Oil/BioCoal(M.T) 0.500 0.261
B) Technology Absorption and Research and Development
Main Areas of emphasis include
- Development of products based on companies finished product for value
- Improvement of existing product/process, efficiency
Due to the changing market conditions, competitive conditions prevailing in
the local market; greater emphasis is being placed in the areas of product
& process developments & export.