CHAND VANASPATI LIMITED
TO THE MEMBERS
Yours Directors are presenting 5th Annual Report on the Operations of the
Company along with the Audited Accounts for the 15 months ended June
30'1997. Your directors would also like to mention that the financial year
has been changed to 30th June instead of 31st March.
During the period the Factory remained under the physical possession of
PICUP and therefore no commercial activity was undertaken by the Company.
PERFORMANCE V/S PROJECTION: FOR THE YEAR ENDING MARCH,1996
i. % of output of installed capacity 70%
ii. Total income (Rs. Lakhs) 2813.49
iii. Net profit (Rs. Lakhs) 55.00 (95.96)
We could not achieve the projections made for the reasons explained above.
As informed to you in the last Annual General Meeting, the oil industry is
undergoing through a difficult phase and in these circumstances your
Directors do not forsee any substantial improvement in the Industry in near
future. Due to liquidity problem the Company could not pay loan
installments and interest to The Pradeshiya Industrial Investment
Corporation of U.P.Ltd., which had given a term loan of 150 Lacs and they
have therefore taken physical possession of all the assets including Land,
Building, Plant and Machinery of the Company on 27.5.96. In such
circumstances it is not possible to restart the operation without
liquidating the dues of PICUP. Due to worst condition prevailing in the
Capital Market it is not feasible to raise funds and liquidate,he dues of
PICUP except by selling the fixed assets of the company.
Your Directors wish to record their appreciation for the co-operation
received from the employees of the Company.
ENERGY,TECHNOLOGY AND FOREIGN EXCHANGE
-- NOT APPLICABLE
There are no employees receiving remuneration in excess of Rs. 25000/- per
month or Rs.300,000.00 per annum and there disclosure in terms of section
217 (2A) of the Companies Act, 1956 read with Companies (Particulars of
Employee's rules 1975) is not required.
Your Company has not invited any deposit u/s 58 A of the Companies Act.1956
during the year.
In accordance with the provisions of the Companies Act 1956 and Company s
Articles of Association Shri S.N.Gupta Rajiv God retire by rotation and
being eligible, offer themselves for re appointment. Your Directors
recommend their re appointment. Keeping in view the market recession and
the losses being suffered by the Company, your Managing Director has
foregone his right on the salary for the full financial year under review.
Mr.M. L.Gupta expired in the month of Feb'97. The vacancy caused due to
said demise is not considered necessary to be filled .
M/S TAS ASSOCIATES, Chartered Accountants, Auditors of the Company retire
at the conclusion of the ensuing Annual General Meeting and your Directors
recommend their re-appointment. The Company has obtained a Certificate
from the Auditors that their re-appointment if made, will be within the
limits specified u/s 224 (1-B) of Companies Act 1956.
Inview of the fact that the factory premises were under the physical
possession of PICUP, the Auditors did not have any access to the factory &
as such they have expressed their inability to report on the accounts.
By Order of the Board of Director
Place : New Delhi (CHAND GUPTA)
Date : 1st November 1997 Managing Director