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BSI Ltd.

BSE: 507070 Sector: Others
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BSI Ltd. (BSI) - Director Report

Company director report

BSI LIMITED DIRECTORS' REPORT To The Members BSI LIMITED Your Directors have pleasure in presenting the Fifty Fourth Annual Report alongwith Audited Accounts of the Company for the year ended 31 st March,1998. DIVIDEND In view of the above position, the Directors are unable to recommend any dividend for the period under report. OPERATIONS Inspite of sincere efforts put in by the management, the operational results of the company are unfavourable during the year. SOLVENT EXTRACTION PLANT AND REFINERY Out of total export of Soya Meal from India, about 60% of the export is made to South East Asian countries. Due to drastic crash in their currencies, the demand from these countries dwindled by 75% resulting in poor demand for Soya Meal from India. This led to the crash of Soyameal price in India from US $ 275 to US $ 185. The poor demand for Soyameal and damage to Soya crops, due to untimely rains and hailstorm resulted in a disaster for the Soya industry in India. As was the trend in the industry, we also were forced to stoP the Production iq our units. During the year, the Soya Division processed 8436 MTs of oil bearing material. SUGAR FACTORY WORKING Due to non availabity and irregular supply of Sugar cane, Sugar Factory did not operate at full capacity. The excellent price for Gur in the market and our inability to make sugarcane payment in time encouraged the cultivators to divert their sugar cane for production of Gur. This affected the supply of Sugar cane to our plant. Hence we could only crush 69,579 MTs of sugar cane during the financial year 1997-98. RESEARCH AND DEVELOPMENT FARM The research farm continued to produce quality seeds for sugar cane and soya bean. When properly blended with outside purchases it helps improve recoveries. However due to unfavourable agriculture conditions all of our efforts proved futile and we could not get the desired results. REAL ESTATE ACTIVITIES The low cost housing scheme launched by BSI REALTORS a partnership firm in which your Company is a major partner holding 95 % of the capital could not take off due to poor market condition of Real Estate activities. The market price of the properties had drastically come down in Mumbai, which had also adversely effect our real estate activities. TRADING OPERATIONS During the year also, your company could not do large trading operations due to non-availability of bank limits and disparity in the trade. MANGO BONDS Due to the restrictions imposed by SEBI, we had stopped collecting applications under the various schemes Launched by the company for Mango Plantation Bonds. REFERENCE TO BIFR - In view of the Company becoming a Sick Industrial Company within the meaning of Sick Industrial Companies (Special Provisions Act, 1985, reference has been made to the Board of Industrial and Financial Re- Construction IBIFR) and the same has been registered on 17 th June,1998. SUBSIDIARY The Annual Report of the subsidiary company viz. BSI Securities International Ltd. is annexed to the Balance Sheet of the Company in accordance with the provision of Section 212 of the Companies Act,1956. However, inspite of our best efforts, it has not been possible for the other subsidiary companies viz. BSI Global Pte. Ltd. and BSI Mauritius Ltd. to finalise their Annual Accounts for the year ended on 30.06.1997 and 31.03.1998 respectively. Hence the copies of the Balance Sheet and Profit and Loss Accounts for the respective years have not been attached with the Annual Accounts of this Company. The same shall be circulated to the Members of the Company as soon as their accounts are finalised and become available to the Company. FIXED DEPOSITS The total Fixed Deposits of the Company stood at Rs. 280.76 Lacs as on 31 st March, 1998. There were no over due deposits other than unclaimed deposits amounting to Rs. 59,000/-. INDUSTRIAL RELATIONS Your Company has endeavoured to maintain best of Industrial relations. Some problems have, however arisen due to severe financial crunch. lndustrial Relations in all the units continued to remain cordial throughout the year. The Directors express their sincere appreciation of the valuable services rendered by the workers, staff and Executives of the Company. DlRECTORS Shri C.R. Trivedi, Shri Ranjit Vithaldas, and Sint. Bharti N. Wadhwana have resigned from the Directorship of the Company within the year under report. The Board wishes to place on record its appreciation of the valuable contribution received from Shri C.R. Trivedi, Shri Ranjit Vithaldas and Smt. Bharti N. Wadhwana, during their tenure as Directors of the Company. Shri Yatin N. Wadhwana resigned from the Executive Directorship of the Company. However, he continued to be a Director on the Board. The Board places its warm appreciation to the services rendered by Shri Yatin N. Wadhwana as an Executive Director (Commercial) of the Company. Shri Kiran N. Wadhwana is due to retire by rotation and being eligible, offer himself for re-appointment. The Board recommends his re-appointment . AUDITORS M/s Tarapore & Company, the Auditors of the Company, retire at the conclusion of the ensuing Annual General Meeting and being eligible. they have offered themselves for re-appointment. A certificate under Section 224 (lB) of the Companies Act, 1956 has been obtained from the Auditors. The observations in the Auditors Report are dealt with in Notes to Accounts at appropriate places and being self- exPlanatorY need no further explanation. COMPANIES DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988 The particulars of conservation of Energy, Technology Absorption and Foreign Exchange Earnings and outgo as required to be given in accordance with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules,1988, are given in the annexure attached. PARTICULARS OF EMPLOYEES The particulars of employees as required to be given under Section 217(2A) of the Companies Act,1956 are given in the annexure hereto and form part of the Report. ACKNOWLEDGEMENTS Your Directors wish to place on record their whole-hearted co-operation received from the Bankers, Financial Institutions, Central and State Government Authorities during the year under review and we look forward to their continued support in the future also. On behalf of the Board Place: Bhopal Yogesh N. Wadhwana Dated: 25th November,1998 Chairman & Managinq Director ANNEXURE A TO THE DIRECTORS' REPORT FORM- B Form for disclosure of particulars with respect to Absorption RESEARCH AND DEVELOPMENT I. Different varieties have been under trial for its adoption. Il. Use of bio-fertilizer like Phosphate solublizing bacteria, Azatovactor and Rhizobium for minimizing the expenditure on the fertilizers. Ill. Drip Irrigation System in operation to take care of scarcity of water on 450 acres of land. IV. Quality seed production of Sugar Cane on own farms for distribution among the farmers in the command area of the factory. V. Different yield of soya varieties introduced to harvest minimum unit area. Vl. Seed production of different crop introduced to serve the local farms. FUTURE PLAN OF ACTION I. Appropriate steps have been taken for installing full fledged laboratory for soil and crop tests with tissue culture ll. Water "harvesting" and harnessing on the farm by adopting appropriate water conservation practices. Ill. Preparation of vermiculture from filter press mud and agriculture wastes. IV. To have sustainable forest and horticulture crops on uncultivable areas. V. Full use of mechanisation on the farms. ADOPTION AND INNOVATIONS Vl. Intercropping sugar cane crop. Vll. Changing the culture of planting sugar cane from Jan/Feb to Sep/Oct. Vlll. Seed production of different crops. The focal point of all above is to raise yield per unit area and serve the local community. On behalf of the Board Place : Bhopal Yogesh N. Wadhwana Dated : 25th November,1998 Chairman & Managing Director