GRAINTEC INDIA LIMITED
ANNUAL REPORT 2003-2004
Your Directors present the Seventeenth Annual Report together with Audited
Annual Accounts for the year ended 31st March, 2004
(Rs. In Lac)
1. FINANCIAL RESULTS 2003-04 2002-03
Gross Revenue (including Misc. Income) 6068.35 9183.97
Gross Profit / (Loss) 41.77 73.20
before Financial Charges and Depreciation
Financial Charges 41.69 43.79
Depreciation 291.47 290.70
Write Offs. 5.40 5.40
Income Tax Appropriations - -
Profit / (Loss) (179.69) (268.71)
During the year under review, the company achieved sales and other income
of Rs. 6068.35 Lacs as against Rs.9183.97 Lacs in the previous year,
showing a decrease of 34%. The profit before depreciation, interest and tax
was Rs. 41.77 Lacs as compared to Rs. 73.20 Lacs during the previous year.
During the year, company has continued its agreement with PEPSI for milling
of Basmati on custom basis.
3. FUTURE PROSPECTS:
To Augment its resources, during the year, your Company has signed an
agreement with Mahindra Intertrade Limited, Mumbai for milling and storage
4. SAFETY, POLLUTION CONTROL AND QUALITY CONTROL:
Your company is committed to achieve and maintain at all levels safety in
plant operations for which safety provisions have been made and are checked
periodically. The company has a well equipped laboratory to ensure quality
control of its raw material and products and stringent quality control
norms have been incorporated.
Sh. Vinay Mittal retires at the ensuing Annual General Meeting. Being
eligible for reappointment offers himself for himself for the same.
Sh. Ramesh Vangal, Director, resigned from the directorship of the Company
during the year under review and the Board accepted the same.
6. DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
(i) in the preparation of the annual accounts, the applicable accounting
standards have been followed ;
(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 at 31st March, 2004 and of the loss of the Company;for the
year ended 31st March, 2004.
(iii) properand 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 , and
(iv) the annual accounts have been prepared on a going concern basis.
The Shares of the Company are listed at Ludhiana Stock E :change
Association Limited and Delhi Stock Exchange Association Limited, the
Company has paid the listing fee to the aforesaid Stock Exchanges for the
financial year 2004-2005.
8. CORPORATE GOVERNANCE:
The company has in place a system of Corporate Governance. A separate
report on Corporate Governance forming part of the Annual Report of the
Company is attached herewith to. A Certificate from the Auditors of the
Company regarding compliance of conditions of Corporate Governance as
stipulated under the Corporate Governance Clause of Listing Agreements is
annexed to the report on Corporate Governance.
The Auditors, M/s Mehrotra Sharma & Associates, Chartered Accountants.
Chandigarh retire at the Gonctusipn of iorihcoming Annual General Meeting
and are eligible for re-appointment.
10. AUDITOR'S REPORT:
The Auditors Report on the Accounts is self - explanatory and requires no
Information pursuant to Section 217 (2A) of the Companies Act, 1956 read
with Companies (Particulars of Employees) Rules, 1975 is enclosed and forms
part of this report. Harmonious employer-employee relations prevailed
throughout the year.
12. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO:
Information as per Section 217(1) (e) read with Companies (Disclosure of
particulars in the report or' Board of Directors ) Rules, 1988 are annexed
hereto and form part of this report.
The Board of Directors of the Company has not recommended any dividend for
the year under review.
The Board of Directors expresses its gratitude to all India FIs, consortium
Bank Members, Govt. of Punjab, Central Govt. for continued valuable co-
operation and support to rehabilitate the Company.
For and on behalf of Board of Directors.
for GRAINTEC INDIA LIMITED
Place : Chandigarh (Pardeep Marwaha) (M.B.S. Sandhu)
Date : 31-07-2004 Director Executive Director
ANNEXURE TO THE DIRECTORS' REPORT
INFORMATION AS PER SECTION 217 (1) (e) READ WITH COMPANIES (DISCLOSURE OF
PARTICULARS IN THE REPORT OF BOARD OF DIRECTOR(S)) RULES, 1988 AND FORMING
PART OF THE DIRECTORS' REPORTS FOR THE YEAR ENDED 31ST MARCH 2004:
1. CONSERVATION OF ENERGY:
The company has over the previous year taken several steps to conserve
energy wherever possible. This continues to remain the thrust area with
studies, discussions and analysis being undertaken regularly for further
FORM - A:
PARTICULARS UNIT 2003-04 2002-03
A) POWER AND FUEL
a) Purchased (Units in Lac) 33.90 46.85
Total amount (Rs. in Lac) 143.71 174.44
Rate per unit (Rs.) 4.24 3.72
b) Own generation through
Diesel Generator (Units in Lac) 0.41 0.54
Total amount (Rs. in Lac) 2.30 3.28
Rate per unit (Rs.) 5.67 6.03
2. COAL (USED IN BOILER)
Total Cost (Rs. In Lac)
Average rate (Rs. / MT)
3. DIESEL (USED IN BOILER)
Quantity (K. Litre)
Total Cost (Rs. In Lac)
Average rate (Rs. / Litre)
B) CONSUMPTION PER UNIT OF PRODUCTION
1. Rice - -
Coal _ _
Other _ _
2. Product (Solvent Ext. Oils)
Coal _ _
Steam _ _
3. Product (Vanaspati)
Electricity _ _
Coal _ _
Diesel _ _
2. TECHNOLOGY ABSORPTION:
Efforts made in technology Absorption are furnished in Form- B AS UNDER:
FORM - B
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION:
1. Efforts made:
The products are checked with reference to the quality control on random
basis. In house laboratory has been maintained, where in various lots of
product are continuously passed through stringent quality control tests.
Efforts are also on to adopt more innovative measures for upgradation of
technology whereby much better quality product can be produced.
2. Benefits derived as results of the above efforts.
a) Wastage has been reduced considerably
b) Pollution control measures have been adopted as per the desirable norms.
3. Particulars of technology imported in the last five years.
a) Technology imported Nil
b) Year of Import Nil
c) Had technology been fully absorbed Nil
3. FOREIGN EXCHANGE EARNING AND OUTGO: (Rs. In Lac)
2003 -04 2002 -03
a) Foreign Exchange earned - -
(FOB value of exports)
b) Foreign Exchange used 1931.73 3568.07
(CIF value of imports &
expenditure in foreign