HARSHVARDHAN CHEMICALS AND MINERALS LIMITED
ANNUAL REPORT 2001-2002
Your Directors' present the 21st Annual Report along with Audited Accounts
of the Company for the year ended 31st March, 2002.
FINANCIAL RESULTS Year Ended Year Ended
Turnover 10257202 27419830
Profit/(Loss) before Interest &
Depreciation (16018437) (5986181)
Profit/(Loss) for the year (28238309) (17896857)
In view of the losses, your directors have not recommended any dividend for
the financial year under review.
The operations of the Company were continued to adversely affected by
depressed marketing conditions & un-remunerative prices and the plant of
the Company remained closed from 7th September 2000 to 10th November 2001
and again closed since 19th February 2002. Thus during the year under
report, the operations were suspended for the major part of the year.
However after having good monsoon, the Company will resume the operations
in the near future. Turnover for the year under review comes to Rs.102.57
Lacs (274.20 Lacs). Loss before Interest and depreciation stood of
Rs.160.18 Lacs as against loss of Rs.59.86 Lacs during the preceding year.
During the year your company manufactured 7870 MT (Previous Year 6779 MT)
Sulphuric Acid, 1504 MT (1539 MT) Oleum 65% and 1590 MT (1794 MT) Oleum 23%
and SSP production was NIL (307 MT).
BIFR REHABILITATION SCHEME
As reported earlier, on the revised revival package submitted by the
Company through Operating Agency (ICICI), the Hon'ble Board for Industrial
& Financial Reconstruction (BIFR) has published the Draft Rehabilitation
Scheme (DRS) and heard objections/suggestions on the scheme envisaging One
Time Settlement (OTS) wen 40% sacrifices in Term Loan principal from Term
lending Institutions/Banks and 50% sacrifice in working capital outstanding
with Bank and waiver of all types of interest outstanding on account of
objections raised by Term Lending Institutions for down payment of Rs.51
Lacs made to Allahabad Bank by the Company inter alia the mode of Payment
to Allahabad Bank, the Final Rehabilitation Scheme has yet to been
sanctioned and as such no effect was given in the Company's accounts for
the sacrifices and reliefs as Stipulated in the scheme. No interest has
been provided for during the current year in view of the relief envisaged
in the DRS.
Dr. R.S. Chouhan, the Director of the company retire by rotation and being
eligible, offer himself for re-appointment.
To Provide assistance to the Board in fulfilling the Board's over sight
responsibilities, an Audit Committee, has been constituted as a sub
committee to the Board consisting of Mr. V.S.Rathora-Executive Director,
Dr. B.P.Tiwari & Shri G.K. Sharma - Non Executive Directors.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956. your Directors,
confirm the following:
i) In the preparation of the Annual Accounts, the applicable amounting
standards have been followed.
ii) Your Directors have selected such accounting policies and applied them
consistently and made judgements and estimate that are reasonable and
prudent 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
iii) Your Directors have taken proper and sufficient care 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/detecting fraud and other irregularities.
iv) Your Directors have prepared the attached Statements of Accounts for
the year ended 31st March, 2002 as a going concern basis.
PARTICULARS OF EMPLOYEES
The particulars of employees as required under section 217 (2A) of the
Companies Act, 1956 read with the Companies (Particulars of Employees)
Rules, 1975 are not applicable as none of the employees drew remuneration
beyond the limits specified.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION ETC.
A statement giving information regarding conservation of energY, technology
absorption and foreign exchange earning and outgo required under section
217 (1) (e) of the Companies Act, 1956 is annexed to and form part of this
During the year under review, your company has not invited any fixed
deposits from public. In terms of provisions of Section 58A of the
Companies Act, 1956, read with the companies (Acceptance of Deposits)
The Shareholders are requested to appoint statutory auditors M/s. R.Surana
& Co., Chartered Accountants for the year and fix their remuneration. The
notes to the accounts referred to in the Auditors Report are self
explanatory and therefore, do not call for any further comments.
The Company has always received the necessary support and guidance from the
financial Institutions led by the ICICI Ltd., Allahabad Bank and Hon'ble
BIFR and your Directors would like to place on record their sincere
appreciation for the same. Your Directors are pleased to record their
appreciation for the hard work put in by the employees at all levels during
the difficult times through which the company is passing.
For and on behalf of the Board
Udaipur, 31st August, 2002. V.S.RATHORE AJEET SINGH PIPLODA
EXECUTIVE DIRECTOR MANAGING DIRECTOR
ANNEXURE TO THE DIRECTORS' REPORT
Information as per Section 217 (i) (e) read with the Companies (Disclosure
of particulars in the Report of Board of Directors), Rules. 1988 and
forming part of the Director's Report for the year ended 31st March, 2002.
A. CONSERVATION OF ENERGY:
(A) Energy & Conservation measures taken:
The captive power plant which generates, power out of heat available from
the Acid Plant has been installed. The Company has taken steps to conserve
the energy like shutting off idle equipment, Installation of adequate
capacitors and Increasing awareness amongst the employees, provision for
natural daylight and verification.
(B) Additional Investments and proposals, if any being implemented for
reduction of energy:
The management considered the existing facilities for consumption as Well
as reduction adequate and at present, there is no proposal for additional
investments for these.
(C) Impact of the measures (a) and (b) above for reduction of energy
consumption and on the cost of production of goods:
Although there has been a saving in terms of energy, but on account of
closure of the plant, it is difficult to assess the exact impact of the
measures taken above.
(D) Total energy consumption and energy consumption per unit of production
in respect of the company's products:
Details are provided in 'FOrm A'
B. TECHNOLOGY ABSORPTION:
(a) Research and Development (R&D):
The company undertakes on a continuous basis various development activities
of new products and processes, cost reduction devices. Improvement in
quality and performance etc. As there is no separate R&D cell, It is
difficult to quantity the amount incurred on R&D.
(b) Technology Absorption, Adoption and Innovation:
The company has not acquired any Indigenous Imported technology.
C. FOREIGN EXCHANGE EARNING AND OUTGO:
Foreign Exchange earning : Rs. Nil
Foreign Exchange outgo : Rs. Nil
A. POWER & FUEL CONSUMPTION
1. ELECTRICITY UNIT 2001-2002 2000-2001
Unit KWH 478820 591000
Total Amount Rs. 3033212 3319020
Rate/Unit Rs./KWH 6.33 5.62
(B) Own Generation
Units (KWH) Nil Nil
Units per litre
of diesel oil Rs./KWH Nil Nil
Cost per unit of
diesel oil Rs./KWH Nil Nil
Unit KWH 183700 154650
Total Cost Rs. 349030 293825
Cost/Unit Rs./KWH 1.90 1.90
2. FURNACE OIL
Quantity KL Nil Nil
Total Amount Rs. Nil Nil
Average Rate Rs./KL Nil Nil
B. CONSUMPTION PER
UNIT OF PRODUCTION
1. Single Super Phosphate KWH - 53
2. Sulphuric Acid KWH 70 70
3. Oleum 23% KWH 75 75
4. Oleum 65% KWH 80 80