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Solar Farmachem Ltd.

BSE: 524360 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Solar Farmachem Ltd
NSE 05:30 | 01 Jan Solar Farmachem Ltd

Solar Farmachem Ltd. (SOLARFARMACHEM) - Director Report

Company director report

1994 SOLAR FARMACHEM LTD. DIRECTORS' REPORT TO THE MEMBERS Your Directors have pleasure in presenting the 13th Annual Report and Audited Statement of Accounts for the year ended 31st March. 1994. Introduction The year witnessed further liberalisation of industrial policy by the Government of India. The industrial production picked up generally. However, for Pesticide Industry, the weather conditions were not very conducive. Although the South-West Monsoon was about normal, the rain fall was not evenly spread. The pesticides season for Kharif crops commenced with great hopes but ended rather sluggishly. Thereafter the Rabi season did not witness the desired growth pattern. As a result of this the funds flow in the Agricultural Sector was seriously affected leading to poor market recoveries. Your Company has shown a substantial increase in operations and profits. However, it is below the expectations of your Directors and the projections, due to the above mentioned reasons. Given herebelow are the financial results Financial Results The total income for the year was 52.38% higher than the previous year. The operating profit was Rs. 170.37 Lacs as compared to Rs. 132.89 Lacs in the previous year, aincrease of 28.2% The profit after Tax was Rs. 76.11 Lacs as compared to Rs. 42.5 Lacs in the previous year, an increas of 79.08% over the previous year. Dividend Your Directors recommend 15% Dividend on enhanced equity capital subject to deduction of tax. The Equity shares issued during the year 1993-94 will be entitled for dividend on pro-rata basis. 13th ANNUAL REPORT REVIEW OF OPERATIONS Operations for the year under report registered substantial increase in annual turnover whigh rose from 17.39 Lacs to Rs.1245.52 Lacs, an increase ot 52.38%. Operating profit for the year at Rs.170.37 was 8.2% above last year's profit of Rs.132.89 Lacs reflecting substantial improvement in margins. he Shareholders may note that the new plants were operational during the ye.ar but the full impact of heir working will be withnessed only during the current year due to the sluggish market conditions in he latter half of the previous year as mentioned above. R & D RECOGNITION The Directors are happy to inform them embers that the Company's R&D Center which was inaugurated a year ago has received recognition as an Approved In- house R & D Center from the Department of Science & Industrial Research, Ministry of Science & Technology, Government of India. This will enable the Company to accelerate the development of new products. The Centre has already developed a few products which can be manufactured in the plant level by installing the balancing equipments and for which there is an existing market. Your Directors have already initiated necessary action in this regard. Future Prospects The current year's market trend is good and the addition of new products is expected to pay rich dividends in the second half of the current financial year. Considering the above facts, your Directors expect superb results during the current year. Exports During the year under review the Company has exported goods worth Rs.36.08 Lacs. The Company has sizeable export inquiries on hand and expects good export business during the current year. Directors Shri Pankaj Kadakia, Director of the Company, who retires by rotation and being eligible offers himself for re-appointment. Auditors M/s Prakash R. Muni., Chartered Accountants, are the retiring Auditors of the Company. They being eligible have shown their willingness to be re-appointed. The Board recommends their reappointment. Auditors Report and the Notes forming part of the Accounts are self-explanatory and as such the Directors have not dealt with the same in their report. Employees There are no employees falling wit,hin the purview of the provisions of Section 217 (2A) of the Companies Act, 1956. Fixed Deposits The Company has not accepted any deposits from public during the year under review. Industrial Relations The Solar family has always maintained good human relationship and this has continued both with staff and workers. The Board would like to place on record their appreciation for the hard work and excellent team spirit of the employees. Safety & Health The Company carries out a regular health check-up of all the plant workers. This policy of giving utmost importa-nce to health and safety has enabled one more year of accident-free operations. Safety programmes will be enhanced to keep up this record on larger operations also. Disclosure Particulars regarding conservation of energy, Research & Development etc, pursuant to the Comp Rules 1988 are set out in the Statement annexed to this report forming its part. Acknowledgements Your Directors wish to place on record their sincere appreciation to the Bankers, Memb Customers and Well-Wishers for their confidence and co- operation. ANNEXURE TO DIRECTORS' REPORT Particulars required under the Companies (Disclosure of Particulars in the report of Board of Directors Rules 1988 and forming part of the Directors' Report for the accounting year ended 31st March 1c 1. Conservation of Energy (a), (b) and (c): The Company made investments in the procurement and installation of Falling F Evaporator and Agitated Thin Film Evaporators. This has not only contributed to savings in Ene for distillation process but it has also resulted in savings in the consumption of solvent. (d) Total energy consumption and energy consumption per unit of production: PARTICULARS 31.03.94 31.03.93 Power & Fuel Consumption. 1. Electricity: (a) Purchased Units 1,96,863 2,31,593 Total Amount 8,09,803 6,08,900 Average Rate/Unit (Rs.) 4.11 2.850 (b) Own generationThrough Diesel Generator Units 11,937 8,152 Units per Litre of Diesel oil 2.15 2.20 Average cost/unit (Rs.) 3.30 3.21 2. Others: L. D. Oil Quantity (Litres) 10,100 19,200 Total Cost 75,545 1,07,314 Average Rate/Unit (Rs. per Litre) 7.48 5.59 For and Qn behalf of the Board HARSHAD L. VYAS CHAIRMAN & MANAGING DIRFCTOR PLACE: VALSAD DATE : 23rd Auqust 1994.