MANGALWEDHE SUN-SOYA LIMITED
Your Directors have pleasure in presenting their Fifth Annual Report on the
business and operations of the Company and the audited accounts for the
year ended 31st March 1996.
Your Directors regret to state that the operations for the year under
review have resulted in a loss of Rs. 64,61,923 as stated above.
As the members are aware that the incessant power cut in the State of
Karnataka had added fuel to the fire besides the shortage of raw material.
It is also pertinent to note that the amount the Company had realised from
the manufacturing activity was much less in the year under review as
compared to the previous year. Also the Company could not do any processing
activity resulting in no income from that part of the operations.
Incidentally, the role played by the vagaries of the weather such as poor
monsoon continuously for a period of three years which ultimately resulted
in the shortage of raw material.
Another factor which led to the poor performance of your company was the
unhealthy competition from the new entrants in the industry for procurement
of raw material.
Your Directors, however, wish to state that the Company was not an
exception in as much as the scenario of the entire solvent extraction
industry was in doldrums and the situation continues to be so as on the
date of the report.
Despite all the odds, your Directors have been striving hard to turn the
corner in the current year.
Sri Rajshekhar Mangalwedhe and Sri Gurlingappa B. Mangalwedhe retire by
rotation, being eligible, offer themselves for re-election.
The Auditors, M/s. B. R. Bhutada & Co., Sangli, will hold office till the
conclusion of the forthcoming Annual General Meeting. They have given their
consent to act as auditors of the Company, if appointed.
4. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS PURSUANT TO SECTION 217(1)(e OF THE COMPANIES ACT, 1956.
The Company's operations during the year under review have not resulted in
any foreign exchange inflow or outgo. The particulars prescribed by the
Companies Disclosure of particulars in the report of Board of Directors)
Rules, 1988 are furnished in the Annexure to this Report.
There was no employee who was in receipt of salary as prescribed under
Section 217(2A) of the Companies Act, 1956 and the Rules made thereunder,
thus not annexed hereto.
The Directors wish to place on record their appreciation of whole-hearted
and sincere cooperation, the Company has received from various departments
of Central and State Governments, Company's bankers, Financial
Institutions, Employees and the shareholders and look forward to their
ANNEXURE TO THE DIRECTORS' REPORT
DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY
A. POWER AND FUEL CONSUMPTION
1. Electricity Current Year Previous Year
Units 5,53,199 6,83,304
Total Amount (Rs.) 15,09,288 15,94,925
Rate/Unit (Rs.) 2.73 2.33
Units 2,45,940 2,03,79
Total Amount (Rs.) 8,70,191 5,70,762
Rate/Unit (Rs.) 3.54 2.80
Quantity (Tonnes) 2034 2235
Total Cost (Rs.) 14,13,851 14,52,686
Average Rate (Rs.) 695 650
B. CONSUMPTION PER UNIT OF PRODUCTION
Oil Seeds/Cakes processed (Tonnes) 13,197 15,318
Electricity - Units / Ton 60.55 57.91
For and on behalf of the Board of Directors
Rajshekahr S. Mangalwedhe
Place : Bijapur
Date : 20th June, 1996.