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Chakan Vegoils Ltd.

BSE: 519459 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Chakan Vegoils Ltd
NSE 05:30 | 01 Jan Chakan Vegoils Ltd

Chakan Vegoils Ltd. (CHAKANVEGOILS) - Director Report

Company director report

CHAKAN VEGOILS LIMITED ANNUAL REPORT 1999-2000 DIRECTORS' REPORT To the Members. Your Directors present herewith the Eighth Annual Report with the Audited Statement of Accounts for the period ended on 30th September, 2000. CHANGE IN THE FINANCIAL YEAR OF THE COMPANY After obtaining necessary approval, Company had extended its current financial year to end on 30th September, 2000, comprising the period of eighteen months commencing from 1st April, 1999 to 30th September, 2000. As such the financial results under report are for eighteen months and thus are not strictly comparable with the figures of the previous year. REVIEW OF OPERATIONS As reported in the Director's Reports of previous year, historical low edible oil prices in the international market has swept the edible oil industry, which resulted into substantial working losses. On 30th April, 1999 due to fire at Kurkumbh Plant, the entire stock of bagasse was totally destroyed and finished goods, raw materials, spares were badly damaged. The loss incurred due to fire was around Rs. 4/- Crores. The Production was severely affected. This added with slowdown of the Economy affected the overall working of the Company, which resulted into Company incurring substantial losses. EROSION OF THE ENTIRE NET WORTH During the financial period ended on 30th September, 2000 the Company has incurred huge losses of around Rs. 23/- Crores, resulting into the erosion of entire Net Worth of the Company. As such the Company has become a Sick Industrial Company within the meaning of Section 3(1) of the Sick Industrial Companies (Special Provisions) Act, 1985. Accordingly the necessary steps are being taken for filing reference U/s 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 to Hon'ble BIFR. DIVIDEND Considering the losses suffered by the Company during the period under Report, your Directors do not recommend payment of Dividend. FINANCE During the period under Report ICICI Ltd. exercised its option to convert part of the Term Loan into Equity Shares o[ the Company. Accordingly in January, 2001 the Company allotted Equity Shares to ICICI Ltd. of an amount of Rs. 2,10,12,040/- at par. The Company also proposes to allot Equity Shares at par to Mr. Nitin Lunkad of an amount of Rs.4,92,28,000/- on Preferential allotment basis. Necessary resolution to this effect has been recommended for your approval. This will help the Company to augment the long term resources of the Company. PUBLIC DEPOSITS The Company has not accepted any deposits from the Public during the year under Report, under Section 58A of the Companies Act, 1956. DIRECTORS Mr. Mohanlal Lunkad, Directors retires by rotation and being eligible offers himself for reappointment. During the period under report, Mr. Kamlesh Lodha was appointed as the Additional Director of the Company by the Board of Directors. Necessary resolution for his appointment as the Director of Company has been recommended for your approval. During the period under Report Mr. Ashok M. Lunkad, Mr. Subhash M. Lunkad, Mr. Vijay M. Lunkad and Mr. Anil B. Dharamshi resigned as the Directors of the Company. The Board of Directors do place on record their sincere thanks for the contribution made by them during their tenure as the Directors of the Company. AUDITORS The Auditors, M/s. R C. Doshi, Chartered Accountants, will retire at the conclusion of the forthcoming Annual General Meeting. They have expressed their willingness to continue for the current year. You are requested to reappoint them. AUDITORS' OBSERVATION The observation made by the Auditors read with Notes to Accounts are self explanatory. PERSONNEL Your Directors wish to place on record their appreciation of the contribution made by the employees at all levels. Information as per Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975, is not furnished, since no employee received the remuneration beyond the limits prescribed therein. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO Information required in respect of Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and outgo in terms of Section 217(1) (e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 is given in Annex. 'A' and forms a part of this Report. DIRECTOR'S RESPONSIBILITY STATEMENT Pursuant to the provision of Section 217 (2AA) as amended by the Companies (Amendment) Act, 2000 the Directors hereby state : a) that while preparing the annual accounts for the period ended 30th September, 2000, the applicable accounting standards had been followed along with proper explanation relating to material departures. b) 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 loss of the Company for that period. c) 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. d) that the Directors had prepared the annual accounts on a going concern basis. APPRECIATION The Directors acknowledge the valued cooperation and continued support extended by the various Departments of Central and State Government and Municipal Corporations, Local Authorities, Bankers of the Company, Financial Institutions, Customers, Suppliers, staff members, for their valuable contribution and support. By Order of the Board of Directors, For CHAKAN VEGOILS LIMITED PLACE: PUNE NITIN M. LUNKAD DATE : 01/03/2001 CHAIRMAN & MANAGING DIRECTOR ANNEXURE 'A' TO THE DIRECTORS' REPORT Information pursuant to section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosures of Particulars in the Report of Board of Directors) Rules, 1988 : B. TECHNOLOGY ABSORPTION : Research and Development : 1) Specific areas in which R & D carried out by the Company - Nil. 2) BENEFIT DERIVED FROM THE ABOVE R & D - Nil. 3) FUTURE PLAN OF ACTION - Nil. 4) EXPENDITURE ON R & D : 1999-2000 1998-99 a) Capital (Rs.) NIL NIL b) Recurring (Rs.) NIL 20,000 c) Total (Rs.) NIL 20,000 d) Total R & D Expenditure as a Percentage of total turnover NIL NIL TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION : 1. Efforts in brief made towards technology absorption and innovation: Nil. 2. Benefits derived as a result of the above efforts : Nil. 3. No imported technology is used by the Company. By Order of the Board of Directors, For CHAKAN VEGOILS LIMITED PLACE: PUNE NITIN M. LUNKAD DATE : 01/03/2001 CHAIRMAN & MANAGING DIRECTOR