KUSUM AGROTECH LIMITED
Your Directors' have pleasure in presenting their Fourth Annual Report
together with the Audited Accounts of the Company for the financial year
ended 31st March, 1995.
Your Company started commercial production in its Solvent Extraction plant
on 1st April, 1994 and in its refinery from 1st November, 1991. the overall
availability of oilseeds during 1994-95 was low on account of cyclical and
climatic conditions. Prices of oilseeds were also higher resulting higher
cost of production. Your Company's performance during the very first year
of its operations were also affected due to high raw material cost and
adverse market conditions. In spite of adverse conditions in edible oil
industry, your Company has resulted turnover of Rs. 2,781 Lacs and Net
profit of Rs. 53 Lacs during the very first year of operation.
Your Company's brand "KUSUM" for refined soya and Mustard oil have gained
strong consumer support in all the markets of Rajasthan. The Company now
proposes to introduce the brand in other parts of Northern and Eastern
India. Your Company has marketed its products in bulk as well as in
consumer packs, response of which have been excellent.
The quality of the De oiled cake manufactured by your Company is one of the
best available and well accepted by international market. Your Company has
exported De oiled cake to Germany, Malaysia, Singapore and HongKong worth
Rs. 712 Lacs during the year.
Your Company's performance in the current year is satisfactory. The
turnover of the Company have increased to Rs. 1,786 lacs during the six
months ended 30th September, 1995 as compared to Rs. 991 lacs during the
corresponding period in the previous year. Future of the edible oil
industry is also going to improve due to increased production of Soyabean
seeds this season. The trade estimate of Soyabean seeds during the current
season is 40 Lacs tonnes against 35 Lacs tonnes during last season. This
will result in availability of oil seeds at cheaper prices. The Company
plans to undertake value added projects in its existing line of business
and is also diversifying into refined sunflower oil, which is expected to
be commissioned by early 1996.
Your Company is going to be amalgamated with Kusum Products Ltd. with
effect from 1st April, 1995, in pursuance of the approval of the members of
the Company. The matter is pending before Hon'ble Calcutta High Court for
Industrial Development Bank of India withdrew Sri S. P. Durve's nominations
from the Board of Directors of your Company subsequent to his retirement
from IDBI. Your Board would like to express its appreciation of the
services rendered by Sri Durve as a member of the Board. Smt. S. B. Chitre
has been nominated by IDBI as a member of the Report.
Sri Pramod Dugar and Sri D. K. Chhajer retire by rotation and are eligible
Your Company's Auditors M/s. R. Kothari & C,o., Chartered Accountants,
retire at the conclusion of the forthcoming Annual General Meeting and
offered themselves for re-appointment.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
/ OUTGO :-
(A) CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION
Your Company has already taken energy conservation measures wherever
possible. However effort to conserve and optimise the use of energy through
improved operational methods will continue.
a) Fuel efficiency of the oil fired boiler has been periodically checked
and necessary improvements made wherever required.
b) Fuel gases have been monitored periodically to determine fuel efficiency
of the boiler.
c) D.G. Sets have been periodically serviced and fuel efficiency checked.
d) Additional economiser has been provided in the Solvent Extraction Plant.
The existing condensers and economisers were periodically serviced.
A. Power & Fuel Consumption 1994-95
Total Amount 41,77,857
b. Own Generation:
Through Diesel Generator (Unit) 82,920
Total Amount 2,37,151
2. Fuel Qty. Total Cost Average Cost
Ltr. Rs. Rs.
1. L.D.O. 59390 3,75,345 6.32
2. L.S.H.S. 35685 2,13,396 5.98
3. R.F.O. 31411 1,72,760 5.50
4. F.O. 1257091 69,39,142 5.52
3. Others / Internal
Generation -- Not Applicable
(B) RESEARCH AND DEVELOPMENT:
The Company has no specific Research and Development Department. However,
the Company has fully equipped quality control department to check the
quality of different products manufactured.
(C) FOREIGN EXCHANGE EARNINGS AND OUTGO:
(Rs. in Lacs)
PARTICULARS OF EMPLOYEES:
There was no employee of the Company who received remuneration during the
year under review in excess of the limit prescribed under Section 217(2A)
of the Companies Act. 1956.
Your Directors wish to place on record their appreciation of the continued
support rendered by the shareholders, Consortium of Bankers, Financial
Institutions and valuable contributions made by the employees at all
On Behalf of the Board
Place : Calcutta
Dated : 10th November, 1995.