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K S Oils Ltd.

BSE: 526209 Sector: Industrials
NSE: KSOILS ISIN Code: INE727D01022
BSE LIVE 15:10 | 22 May Stock Is Not Traded.
NSE 00:00 | 13 Jun Stock Is Not Traded.
OPEN 0.45
PREVIOUS CLOSE 0.43
VOLUME 314190
52-Week high 0.77
52-Week low 0.41
P/E
Mkt Cap.(Rs cr) 20
Buy Price 0.44
Buy Qty 160.00
Sell Price 0.45
Sell Qty 28700.00
OPEN 0.45
CLOSE 0.43
VOLUME 314190
52-Week high 0.77
52-Week low 0.41
P/E
Mkt Cap.(Rs cr) 20
Buy Price 0.44
Buy Qty 160.00
Sell Price 0.45
Sell Qty 28700.00

K S Oils Ltd. (KSOILS) - Director Report

Company director report

Dear Members

Your Directors are pleased to present the Twenty eighth Annual Report and AuditedStatement of Accounts for the Financial Period (Fifteen month period) ended on March 312014

(Rs. in Lacs)

1. Financial Highlights 2013-2014 2011-2012 2013-2014 2011-2012
(01/01/2013- 31/03/2014) (01/07/2011- 31/12/2012) (01/01/2013- 31/03/2014) (01/07/2011- 31/12/2012)
(15 Months) (18 Months) (15 Months) (18 Months)
Revenue From operations 100982 382330 101539 383051
Less: Excise Duty 98 236 98 236
Net Revenue from operations 100884 382094 101441 382815
Profit/Loss before Finance cost Depreciation
Exceptional Items and Taxes (32920) (17517) (34227) (20856)
Less: Finance Cost (Interest) 18041 44154 18042 44167
Profit/Loss before Depreciation Exceptional Items and Taxes (50961) (61671) (52269) (65023)
Less: Depreciation 7605 9549 7644 9651
Profit/Loss before Exceptional Items and Taxes (58566) (71220) (59913) (74674)
Less: Exceptional Items 93129 65010 91229 58510
Profit/Loss before Taxes (151695) (136230) (151142) (133185)
Less: Provision for Taxes - - - -
(a) Income Tax - - - -
(b) Tax for earlier year’s (685) 184 (685) 184
(c) MAT Credit Reversal - - - -
(d) Deferred Tax Adjustment 29 788 29 1213
Profit/(Loss) after Taxes (151039) (137203) (150486) (134581)
Add: Balance brought forward from the previous year (117068) 13619 (117068) 10781
Balance available for appropriation which the directors have appropriated as under to : (268127) (117068) (267463) (117668)
(i) Proposed Dividend - - - -
(ii) Tax on Dividend - - - -
(iii) Provision for interest on dividend 14 40 14 40
(iv) Provision for interest on dividend distribution Tax 7 22 7 22
(v) General Reserve - - - -
Total 21 62 21 62
Deficit carried forward to the Balance Sheet (268127) (117068) (267463) (117068)

Change in Financial Year

The financial year of the Company was extended by 3 month i.e. from 31/12/2013 to31/03/2014 with the approval of the Registrar of Companies. Hence the financial year ofthe Company under review cover a period of 15 months and is not comparable with theresults of the previous financial year 2011-2012 which was extended for 18 months.

During the year under review your Company’s total sales (Standalone) were Rs99982 Lacs (15 Months) as against Rs. 381510 Lacs for the previous year (18 Months). Theloss before finance cost depreciation exceptional items and taxes (Standalone) was Rs.32920 Lacs (15 Months) as against to the Loss of Rs. 17517 lacs for the Previous year(18 Months). The finance cost (Standalone) was Rs. 18041 Lacs (15 Months) as against toRs. 44154 Lacs for the previous year (18 Months). The company recorded of EPS (Earningper Share) of Rs. (32.98) for the period ended March 31 2014.

Division wise operational performance for the period ended March 31 2014 was as under:

A. Oil Division

1. Mustard Oil: During the period under review the Company’s mustard oilplant was utilized up to 1.85 % of its installed/available capacity; it processed 30469MT (Include 22705 MT Processed under Job work arrangement) of mustard seeds. Mustard Oilproduction stood at 9951 MT (Includes 7676 MT produced under Job work arrangement)against that of 157861 MT in the previous year recording a significant decrease of93.70% as compared to previous year.

2. Refined Oils : The Company’s refined oil plants utilized 3.98 % of itsavailable capacity and processed 28665 MT (Include 5909 MT Processed under Job workarrangement) of crude oil. Refined oil production stood at 26705 MT (Includes 5575 MTproduced under Job work arrangement) against that of 94484 MT in the of 71.73% over theprevious year recording a significant previous year.

3. De Oiled Cake (DOC): Solvent extraction plant utilized 9.37 % of itsavailable capacity during the year under review and processed 147518 MT (Include 28463MT Processed under Job work arrangement) of oil cake/seeds. During the year DOCproduction was at 132882 MT (Includes 25890 MT produced under Job work arrangement) asagainst 314073 MT during the previous year thus recording a decrease of 57.69% over theprevious year.

B. Vanaspati Division

Production of Vanaspati was at 426 MT against that of 3271 MT in the previous yeardecreasing 86.97 % as compared to previous year.

C. Power Division

During the year power generated through wind mills was 124521579 units as against200910809 units in the last year thus recording a decrease of 38.02% over the previousyear. Out of these units the Company has utilized 7118398 units for in houseconsumption and sold 13240050 units and generated Rs. 3864 Lacs as additional revenue.

Dividend

In view of the losses incurred during the year your Directors are unable to recommenddividend on equity Shares and Preference Shares for the year ended March 31 2014.

Current business outlook and plans

Demand for Edible oil during the year continues to be stagnant on account of arecessionary trend in the economy as well as new products in the Edible oil industry likeOlive Oil capturing market share however it is hoped that conditions may start improvingin the rest of the year so that with adequate working capital sourcing your Company isable to operate its plants at higher capacities and with higher margins. Until maximumutilization of Company’s plants is reached there are no plans for capacity expansionin the coming year.

Consolidated Accounts

As per the Listing Agreement with the Stock Exchanges Consolidated FinancialStatements have been annexed with the Financial Results of the Company.

Subsidiary Company

The Statement required under Section 212 of the Companies Act 1956 in respect of theSubsidiary Company is also appended to the Annual Report.

Manpower Development Process

The Company’s HR Division has finalized an Organization Structure that supportsthe vision and strategy of the Company. The organization structure is divided into fivebands: Strategic Operational Manager Executive and Support which have been furtherdivided into several levels. All K S employees are assigned a level under a particularband depending upon their role impact and criticality of job and the contribution to theCompany’s strategy.

Corporate Social Responsibility (CSR)

Your Company is committed to support CSR initiative and to contribute towards thewelfare and social upliftment of the Community.

Employees Stock Option Scheme (ESOP)

As the employees of the Company did not exercise the option under ESOP scheme thecompany cancelled/ withdrew the ESOPs granted under the Employee Stock Option Scheme.

Employees’ Particulars

The Company did not have any employee of the category mentioned in Section 217(2A) ofthe Companies Act 1956 read with the Companies (Particulars of Employees) Rules 1975.

Renewable Energy Initiatives:

All the 92 WTG’s of 78 MW in Madhya Pradesh Rajasthan Gujrat & Tamilnadu arerunning successfully & generating revenue for the company through the sale of power toSEB’s. Besides the company is utilising the energy generated by Rathedi (MadhyaPradesh) 30 WTGs equivalent to 24.9 MW for captive consumption. Under the scheme powergenerated from these WTGs is sold to MPTRANSCO (Madhya Pradesh Power Transmission CompanyLtd) and the company shall get credit against the purchase of units at its Guna Ratlamand Morena Plant thereby reducing Power cost of the three plants considerably.

Particulars of Conservation of Energy Technology Absorption and Foreign ExchangeEarnings and Outgo

As required under Section 217(1)(e) of the Companies Act 1956 read with the Companies(Disclosure of Particulars in the Report of Board of Directors) Rules 1988 theparticulars in respect of conservation of energy technology absorption and foreignexchange earnings and outgo are set out in Annexure ‘A’ to theDirectors’ Report.

Auditors

M/s Harbhakti & Co. Chartered Accountants have resigned due to internal reasons ondated February 13 2015. Afterward the Board of Directors in their board meeting held onFebruary 14 2015 had appointed M/s Ladha G.D. & Co. Chartered Accountant as thestatutory auditors of the Company and the same has been approved by the Members of theCompany in Extra-Ordinary General Meeting held on March 18 2015.

Further M/s Ladha G.D. & Co. Chartered Accountants auditors of the Companyshall retire at the end of ensuing AGM being eligible to offer themselves forre-appointment.

Deposits

Your Company has not accepted any deposits and as such no amount of principal orinterest was outstanding on the date of the Balance Sheet.

Corporate Governance

To comply with the conditions of Corporate Governance pursuant to Clause 49 of theListing Agreement with the Stock Exchange a separate section on Management Discussion andAnalysis and Corporate Governance together with a certificate from a Practicing CompanySecretary confirming compliance is included in the Annual Report.

Group for Inter-Se Transfer of Shares

The following is the list of entities constituting "Group" (within themeaning as defined in Monopolies and Restrictive Trade Practice Act 1969) for the purposeof disclosure as provided in clause 3 (1) (e) of the Securities Exchange Board of India(Substantial Acquisition of Shares and Takeover) Regulations 1997:

Sr. No. Name of Entity
1. Mr. Ramesh Chand Garg
2. Ramesh Chand Garg HUF
3. Smt. Sheela Devi Garg
4. Mr. Sourabh Garg
5. Sourabh Garg HUF
6. Smt. Meeta Garg
7. Garg Family Trust

Directors’ Responsibility Statement

To the best of their knowledge and belief and according to the information andobservations obtained by them your directors make the following statement in term ofSection 217(2AA) of the Companies Act 1956 -

1. that the preparation of the Annual Accounts the applicable accounting standardshave been followed along with proper explanation relating to material departures;

2. that the directors had selected such Accounting Policies and applied themconsistently and made judgments and estimates that are reasonable and prudent so as togive a true and fair view of the state of affairs of the company at the end of thefinancial year 2013-14 and of the profit or loss of the company for that period;

3. that the Directors had taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of this Act for safeguardingthe assets of the company and for preventing and detecting fraud and other irregularities;and

4. that the Directors had prepared the Annual Accounts on a going concern basisextended by customers investors bankers business associates vendors and variousgovernment agencies. The Directors also sincerely acknowledge the significantcontributions made by all the employees for their dedicated services to the Company.

For and on behalf of the board of Directors
Sd/- Sd/-
Ramesh Chand Garg Davesh Agarwal
Place: New Delhi Managing Director CFO and
Date: 01/08/2015 Executive Director

Acknowledgements

Your Directors place on record their appreciation of the support

Annexure "A" to Directors’ Report

Form A

Form for Disclosure of Particulars with respect to Conservation of Energy.

(Rs. in Lakh)

A) Power and fuel consumption 2013-14 2011-12
(01/01/2013- 31/03/2014) (01/07/2011- 31/12/2012)
(15 Months) (18 Months)
1. Electricity
(a) Purchase
Unit 8140128 15726028
Total amount (Rs.) 95507381 147761195
Rate/unit (Rs.) 11.73 9.40
(b) Own generation
Through diesel generator
Unit 400485 1502574
Unit per ltr. of diesel oil (Rs.) 3.56 3.57
Cost/unit (Rs.) 14.95 11.61
(i) Through WTG’s
Unit 7118398 13240050
Total Amount (Rs.) 33567370 61745572
Rate/Unit (Rs.) 4.72 4.66
* units generated through wind turbine has been credited against purchase of Units
2. Coal
Quantity (M.T.) 17581 55218
Total Cost (Rs.) 89385665 275145090
Average Rate (Rs.) 5084.18 4982.87
3. Furnace Oil
4. Others
B) Consumption per Unit of Production:
Product (with details) unit: Oil and Vanaspati Division
(Current year: 130802 MT Previous Year: 569689 MT)
Electricity 92.14 53.48
Furnace Oil - -
Coal 0.10 0.10
Others - -

FORM B

Form for Disclosures of particulars with respect to absorption.

TECHNOLOGY ABSORPTION

Research and development (R&D):

The Company is carrying out research work on mustard oil so that more value addedproducts could be introduced. The Company is also developing derivatives and additives ofmustard oil.

1) Specific area in which R&D carried out by the company:

During the year under review efforts were made in the following areas with theobjective of optimizing process systems and adopting parameters that ensure productimprovement and cost reduction:

• Till date the Company is in continuation of development of new cost effectiveprocess to produce pungent Mustard oil from expeller instead of producing the same fromtraditional Kollhu method. The Company is getting the expected results as well from theprocess and the Company has decided to stabilize the process in future as well.

• Upgradation of solvent plant to improve the quality of recovered oil.

• Development of company’s brands "Double Sher" and"Kalash" in order to expand market and increase consumption and promote them as"Heart Friendly Cooking Mediums".

• Reducing cost of materials effecting import substitution simplifying processesand achieving time savings.

Quality improvements and up gradation of raw material suppliers.

Quality Control.

• Reduction of emission of pollutants from chimney by installing pollution controlequipments.

Automation of packaging system.

2) Benefits derived as a result of the above R&D.

High quality value added and cost effective consumer preferred edible oilswere developed.

Reduction in cost of raw materials and packaging materials and reduction inproduct process time.

• Significant reduction in the emission of pollutants into environment.

• Improved quality of products and thereby strong market position.

3) Future plan of action

The Company will continue to pursue its R&D work on developing high qualityproducts to meet the ever changing consumer needs and on adding value to our existingproducts.

4) Expenditure on R&D:

Charged to the respective heads of accounts and not allocated separately.

A. Foreign Exchange Earning and Outgo of the Company:

b

A) Power and fuel consumption 2013-14 2011-12
(01/01/2013- 31/03/2014) (01/07/2011- 31/12/2012)
(15 Months) (18 Months)
a) Foreign exchange earning of the company:
Earning on FOB basis - 91
Interest on deposits with banks - -
Interest on loan to subsidiaries 187 354
b) Foreign Exchange Outgo:
i. CIF value of imports
a) Raw Material - -
b) Finished Goods - -
c) Capital Goods - -
ii. Expenditure in foreign currency
a) Interest on borrowing 143 165
b) Professional Fees 15 4
c) Others - 7
iii. Investment in Foreign Subsidiaries
a) As subscription amount for Shares therein - 686
b) Loan to Subsidiaries - -

 

For and on behalf of the board of Directors
Sd/- Sd/-
Ramesh Chand Garg Davesh Agarwal
Place: New Delhi Managing Director Chief Financial Officer and
Date: 01/08/2015 Executive Director