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Niraj Petrochemicals Ltd.

BSE: 500454 Sector: Industrials
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Niraj Petrochemicals Ltd. (NIRAJPETRO) - Director Report

Company director report

NIRAJ PETROCHEMICALS LIMITED DIRECTORS' REPORT TO The Member, Niraj Petrochemicals Ltd. Your Directors hereunder present the Tenth Annual Report together with the audited Accounts and the Report of the Auditors for the year ended 30th September 1997. 1. REVIEW OF OPERATIONS: During the year the company could not manufacture Maleic Anhydride (last year 104.1 M.T.) as the plant was shut down during the whole year because of non availability of working capital limits which resulted in non- operation of the plant. The Calcium Carbonate division continues to be shut down and the technical modifications which were envisaged earlier for revival of the plant are not carried out during the year on account of dispute with financial institutions and banks in resolving the outstanding financial issues like the payment of over due Principal and interest. 2. REFERENCE TO BIFR: As already informed the Company has become sick and the BIFR appointed Industrial Development Bank of India, Bombay as Operating Agency which is making necessary steps to assess the worth of the plant and thus planning to revive the plant. The management is hoping the restarting of the plant soon after receiving the revival package. 3. FUTURE PROSPECTS: Maleic Anhydride is well accepted as one of the most important raw material in as per chemicals and food industries apart from major use in the plastic industry. The export orders/ enquiries are encouraging and your Directors are optimistic about the turnaround prospects after the revival package is sanctioned and adequate working capital is made available. The Maleic Anhydride price in the international market is very encouraging. 4. CONSERVATION OF ENERGY/TECHNOLOGY ABSORPTION, FOREIGN EX-CHANGE EARNING AND OUTGO: The prescribed details as required under Section 217 (i) (e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the report of Board of Directors) Rules 1988 are given in the Annexure I which forms part of this Report. 5. ENVIRONMENT: There were no operations as the plant was shut down during the year and hence the summary of maintenance of the air, water and other environmental standards as prescribed in relation to the actuals are not given. 6. FIXED DEPOSITS: The Company has not accepted any fixed Deposits from the public during the year. 7.DIRECTORS: Sri Mathew Thomas retires by rotation at the ensuing Annual General Meeting. Sri. K.S. Purohit ceased to be a Director on 21.3.1997 due to resignation by him for the directorship from the Company Board. Sri S. Rajendran ceased to be a Director on 20-5.1997 due to resignation by him for the directorship from the company Board. Your Directors wish to place on record their appreciation of the services rendered by them during their tenure of office. 8. AUDITORS: M/s. D.S.P. Reddy & Co. Chartered Accountants,Hyderabad auditors of the Company retire at the conclusion of the ensuing Annual General Meeting and being eligible are recommended for reappointment. They have furnished certificate stating that their appointment if made will be within the limits laid down Under Section 224 (IB) of the Companies Act, 1956. 9. EMPLOYEE RELATIONS: The employee relations during the year continued to be cordial. Your Directors wish to place on record the appreciation for valuable services rendered by employees at all the levels They were no employees whose remuneration exceeds the limits prescribed under sec. 217 (2A) of the Companies Act, 1956 read with the Companies (particulars of Employees) Rules 1975. 10. ACKNOWLEDGEMENT: The Members of the Board express their sincere thanks to the IDBI, ICICI, IFCI, Bankers and all others for their continued guidance help cooperation, assistance and support extended to the Company. FOR AND ON BEHALF OF THE BOARD (G.SIVAPRASAD REDDY) Chairman & Managing Director Place: Hyderabad Date : 28.02.1998. ANNEXURE FORM -B FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO TECHNOLOGY ABSORPTION I Research and Development: ] ] 1. Specific areas in which ] R & D Carried out by the Company ] No research and Development ] activities are carried 2. Benefits derived as a result ] during the accounting of the above R & D ] year under review ] 3. Future plan of action ] ] 4. Expenditure on R & D ] a) Capital Expenditure ] b) Recurring Expenditure ] c) Total Expenditure ] d) Total R & D Expenditure as ] a percentage of total turnover ] II. Technology Absorption, Adaptation and Innovation: 1. Efforts made towards technology absorption, adaptation and innovation: The company has adequately absorbed technology imported from LURGI GmbH, Germany for Maleic Anhydride Plant. 2. Benefits derived as a result of the above efforts: Quality of Maleic Anhydride produced in our plants is comparable with international standards. III. Information relating to the technology imported during last 5 years a) Technology No Technology has been imported for Calcium Carbonate Plant. For Maletic Anhydride Plant Technology imported from LURGI GmbH, Germany. b) Year of import 1992-93 c) Has technology been fully absorbed? Yes d) If not fully absorbed, areas Not Applicable where this has not taken place reasons therefor and future plans of action. FORM C FOREIGN EXCHANGE EARNINGS AND OUTGO 1. Activities relating to exports, initiatives taken to increase exports, development of new exports for products and services and export plans. NIL 2. Total Foreign exchange used and earned: a) Total foreign exchange used(including cost of raw NIL materials stores, spare parts and other expenditure (Previous year and dividend remittance in foreign currency) Rs. 19.65 lacs) b) Total foreign exchange earned NIL