SHIVANI VANASPATI LIMITED
ANNUAL REPORT 2001-2002
Your Directors have pleasure in presenting the 10th Annual Report together
with the Audited Accounts of the Company for the financial year ended 30th
Due to absence of profit for the financial year ended 30th June 2002 your
Directors are not in a position to recommend any dividend.
The Company got the Sales Tax Exemption w.e.f. the date of commercial
production i.e. 6th July, 1997. It was subsequently withdrawn from 1st
August 1999. The Company has neither collected and Sales Tax from the
customers nor deposited with Sales Tax Authority since the Company expects
Sales Tax Exemption with retrospective effect from 1.08.1999. On 8.1.2002
the Hon'ble High Court of Orissa dismissed the writ petition filed by the
Company challenging the withdrawal of Sales Tax Exemption granted earlier
by the Govt. of Orissa. The Company has filed a review application on
14.01.2002 before the Hon'ble High Court of Orissa against the said
judgement and the matter is subjudice. Based on the appeal made before the
Hon'ble Commissioner of Commercial Tax, Orissa, Cuttack on 17.01.2002 u/s.
22(1), 32(1) & 33(1) of SICA, 1985, the Hon'ble Commissioner took a
judicious view and upheld the petition of the Company on 02.02.2002
directing not to take any coercive action against the Company till the BIFR
disposes the case. Due to delay in the hearing of review petition which has
already been filed before the Hon'ble High Court of Orissa, the Company
moved to the Hon'ble Supreme Court of India, New Delhi by filing a Special
Leave Petition (SLP) on 25.02.2002 to get justice immediately. The Hon'ble
Supreme Court advised the petitioner to complete the review application
matters pending before the Hon'ble High Court of Orissa before pursuing the
matter before the Apex Court. Accordingly the Company withdrew the SLID as
advised by the Apex Court on 12.03.2002. The review petition is now
subjudice before the Hon'ble High Court of Orissa. After dismissal of writ-
petition on 8.01.2002 the suppliers of raw materials have stopped supplying
the raw materials on the fear that Sales Tax Authorities may attach the
same at any point of time. Hence the production of the Company has been
suspended since March 2002. The management of the Company is exploring
various options to recommence the production activities and is very
optimistic about the same.
Mr. Narayan Dass Jhawar and Mr. Madhusudan Jhawar retire by rotation from
the Board of Directors at the ensuing Annual General Meeting and being
eligible offer themselves for re-appointment.
Mr. Jitendra Kumar Mohanty has resigned from Directorship of the Company
w.e.f. 26th June 2002.
Mr. Ghanshyam Dass Jhawar has resigned from the Executive Directorship of
the Company w.e.f. 31st August, 2002. He will continue on the Board as a
On withdrawal of nomination by IFCI Ltd., Mr. H.S. Tyagi ceased to be the
Director of the Company w.e.f. 17.10.2001.
Following Directors are the members of the Audit Committee of the Board of
Directors of the Company.
1. Prof. S.C. Kuchhal, Chairman of the Committee
2. Mr. Jyotindra Mohanty
3. Mr. Brij Mohan Jhawar, Managing Director
Your Company has always followed the philosophy of conducting its business
with due compliance of Laws, rules, regulations and sound internal control
system and procedures. The Company will implement the mandatory requirement
of Corporate Governance Code as prescribed by Securities and Exchange Board
DIRECTOR'S RESPONSIBILITY STATEMENT:
The Board of Directors of your Company state:
I. THAT in the preparation of the Annual Accounts, the applicable
Accounting Standard has been followed along with proper explanation
relating to material departures.
II. THAT the Directors had selected such Accounting Policies and applied
them consistently and 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 at the end of the financial year and of the profit or loss of the
Company for that period.
III. THAT the Directors had taken proper and sufficient care for the
maintenance of adequate Accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
IV. THAT the Directors had prepared the Annual Accounts on a going concern
M/s. Samantaray & Co., Chartered Accountants, Cuttack, Auditors of the
Company hold office until the conclusion of the ensuing Annual General
Meeting and are eligible for re-appointment.
INFORMATION PURSUANT TO SECTION 217 OF THE COMPANIES ACT 1956:
A. CONSERVATION OF ENERGY:
Energy conservation, as far as coal and electricity are concerned, has been
maximized by adopting appropriate modification in the machinery &
equipments. Efforts are underway for further improvement in the matter.
B. TECHNOLOGY ABSORPTION:
Since the technology adopted by the Company is modern and sophisticated, it
has been practically found that oil loss is minimum with an acceptable
standard of quality product.
C. FOREIGN EXCHANGE EARNING AND OUT-GO:
PARTICULARS OF EMPLOYEES U/S. 217(2)(A) OF THE COMPANIES ACT, 1956:
Information required under section 217(2)(A) of the Companies Act, 1956
(Particulars of Employees) Rules, 1975 is not applicable to your Company as
no employee is covered within the meaning of this provision.
Industrial relations with the workers and staff of the Company remained
cordial during the financial year.
Your Directors place on record their sincere appreciation of the
cooperation and assistance extended by IFCI Ltd., State Bank of India,
IPICOL and the Govt. of Orissa. The Board of Directors also wishes to place
on record their appreciation of the cooperation of the shareholders and
employees of the Company at all levels for their sincere efforts and
For and on behalf of the Board of Directors
CUTTACK (Prof. S.C. KUCHHAL)