RAGHUNATH COTTON & OIL PRODUCTS LIMITED
To the Shareholders
Your Directors have pleasure in presenting the 8th Annual Report of the
Company together with the audited statements of accounts for the year ended
31st March, 1994.
The company maintained progressing trend in its operations and achieved a
comparatively better turnover and profitability during the year under review,
with the result the earlier accumulated losses have completely been wiped
off. Since the profits earned have been fully adjusted against the earlier
losses, the company could not declare any dividend this year. The company
works out different strategies to improve it's operational and marketing
efficiency and expects a still better performance during the ensuing year.
The company is continuously registering increase in turnover during the last
three years and there was an increase of 21% sales during the year under
review as compared to the previous year. Consequent to the improvement
undertaken in the refinery section during the last year, the production in
refinery was increased and this accounted for the fall in manufacturing
expenses and fuel consumption as compared to the previous year. Due to
monsoon failure, the cotton crop during the year showed poor results and
touched all time high price. Since cotton seed processing became
unremunerative during the year the process was restricted to the extent
desirable in the cotton seed processing section and the company mostly
undertook crude oil processing in the refinery to circumvent the seasonal
imbalances in the seed supply. As oil refining in the refinery proved to be
profitable, the company plans to continue and enhance the refinery operations
depending on the market conditions.
As far as extraction sales, the demand for extractions and their prices in
the global market have comparatively declined in the year under review and
the company was not encouraged to export its extractions since the domestic
price realisation of the extractions was better than that of the export
front. Hence there was a decline in export sales during this year.
The company plans various strategies to improve and enhance its capacity
utilisation by entering into long term contract with various giant companies
for supply of edible oils to their requirement. Besides the company
envisages expansion of its retail outlet to bring more value addition to the
products and maximise the turnover. With all this, the company is confident
of achieving better turnover and profitability, so as to declare dividend to
the shareholders in the ensuing year.
Smt. G. Jayalakshmi, Director of the company will retire by rotation in the
ensuing Annual General meeting, in terms of article 116 of the company's
Articles of association and being eligible offers herself for reappointemnt.
Dr. T. Venkataswamy, Chairman of the Company, resigned from the board on
March 31, 1994. The Board has placed on record its appreciation of the
advice and guidance and Co-operation received from Dr. T. Venkataswamy.
Sri K. Sudhakar, Chartered Accountant, retires at the conclusion of the
forthcoming Annual General Meeting. The observations found in his audit
report have been adequately dealt with in the notes to the accounts. As he
expressed his inability to continue to hold office for the forthcoming year,
it is proposed to appoint Sri Ch. Venkateswarlu as Auditor for the next year.
Particulars of Employees:
There were no employees in respect of whom particulars as required under
section 217(2A) of the Companies Act, 1956 and the rules framed thereunder
are to be furnished.
Companies (Disclosure of Particulars in the Report of Board of Directors
The statement pursuant to 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 is given in the annexure forming part of this report.
Your Directors are grateful for the continued cooperation and support the
company is enjoying from its Bankers, Financial institutions, Customers and
For and on behalf of the Board
Maddipadu K.V. RAMANAIAH G. VENKATESWARLU
November 25, 1994 Director Managing Director
DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY
A. Power and fuel consumption:
1. Electricity : 1993-94 1992-93
a) Purchased Units (Kwh) 15,35,190 23,50,616
Total amount (Rs) 40,50,138 53,35,535
Rate/Unit (Rs. per Kwh) 2.64 2.27
b) Own Generation:
i) Through diesel generator:
Units (Kwh) 1,17,700 1,19,129 Units per litre of Diesel Oil (Kwh)2.12 2.10
Cost per Unit (Rs) 2.73 2.79
ii) Through Steam Turbine -- --
(F Grade Coal used in Boiler)
Qty. (Tonnes) 965.045 4,057
Total Cost (Rs) 16,26,850 18,29,505
Average Rate(Rs. per Tonne) -- 450,95
DISCLOSURE OF PARTICULARS WITH RESPECT TO ABSORPTION R&D CARRIED OUT BY THE
1. Specific areas in which R&D carried out by the Company : Nil
2. Benefits derived as a result of the above R&D : Not applicable
3. Expenditure on R&D : Not applicable
Technology absorption, adaptation and innovation:
1. Efforts made: No technology has been imported. Efforts are being made to
keep abreast of the technological developments and innovations relating
to the company's line of products and to bring about development in the
products of the company for better quality and cost effectiveness.
2. Benefits derived: With improved quality and lesser process loss company
achieved reduction in cost of production.
3. Technology imported: Nil