RATTAN VANASPATI LIMITED
ANNUAL REPORT 2003-2004
Your Directors have pleasure in presenting the 13th Annual Report together
with the Audited Accounts for the year ended on 31st March, 2004.
FINANCIAL HIGHLIGHTS (Rs. In lacs)
As on As on
Operating & Other Income 5470.36 6368.96
Profit before Interest & Depreciation (-) 91.47 45.01
Loss before Depreciation & Tax 539.80 325.25
Less : Depreciation 86.95 90.53
Loss : before Taxation 626.75 415.78
Loss : Provision for Taxation Nil Nil
Net Loss 626.75 415.78
Add Balance from Previous Year 2426.85 2011.07
Loss carried to Balance Sheet 3053.60 2426.85
Due to non-availability of Profits, the Directors express their inability
to recommend any dividend.
During the year under review, the company had achieved the turnover of
Rs.54.71 crores as compared to Rs. 63.68 crores in the previous year. The
total production of Vanaspati was 11871 MT in the current year as
against 15316 MT in the previous year. The production declined due to
discontinuance of Dalda production by Hindustan lever Ltd. from June, 2003.
Your company made alternate arrangement with M/s Ruchi Soya to manufacture
Ruchi Brand vanaspati with effect from list August, 03, to keep the factory
running The demand of vanaspati remained stagnant, and vanaspati industry
is continuously facing poor utilisation of capacity The steep increase in
price of imported crude palm oil was not fully absorbed by the market.
The vanaspati industry continued facing mismatch of Demand and Supply. The
installed capacity being almost three times of demand created unhealthy
competition and eroded the margins. The entire vanaspati industry remained
in red due to throat cut competition.
Your company remained fully dependent on production of Dalda for Hindustan
Lever Ltd, in absence of working capital funds. Unfortunately Hindustan
Lever Ltd. sold its vanaspati business to some U.S. party. Consequently,
Hindustan Lever discontinued production of vanaspati in our plant from
June, 03. With great efforts your management made tie up with M/s Ruchi Oil
and Vanaspati Ltd. to manufacture their brands for a period of 8 months
i.e. Aug., 03 to March, 04. Ruchi has also quit on 31.3.04 and plant is
lying closed since than. The management is trying hard to find some party
for sale/lease/management transfer of the plant in absence of working
REFERENCE WITH BIFR:
The company had been declared sick company under the provisions of SICA
vide order of BIFR dated 20th April, 01. AAIFR vide its order dated
29.10.01, set aside the order of BIFR and dismissed the Reference. The
company filed Writ on 6.13.02 against order of AAIFR in Delhi High Court
which is pending. The company also made Reference with BIFR on 4.1.02 on
the basis of annual accounts for the yeas ended 31.3.01, but BIFR dismissed
this Reference being time barred. Company filed Appeal with AAIFR against
order of BIFR which is pending. Company again filed third Reference with
BIFR on the basis of annual accounts for the year ended 31.3.02 which was
also dismissed by BIER being time barred. Company' Appeal against this
order of BIFR is also pending with AAIFR.
The company has not accepted any fixed deposits within the meaning of
section 58A of the Companies Act, 1956 and the rules made thereunder during
the year under review.
Sh. H.S. Chhabra, retired by rotation and was not re-appointed in the
Annual General Meeting. Sh. Virender Talwar resigned from Directorship
w.e.f. 17.7.04 due to preoccupation.
Sh. S.K. Jain resigned form Whole time Director w.e f 30.1. 2004, but he
remains as non working Director. Sh. R.B. Jain was appointed as a Whole
time Director w.a.f 1.2.2004. The Audit Committee has since been
reconstituted and now comprised of three Directors as its members i.e. Sh.
P.B. Jain, Sh. R.K. Gupta, and Sh. S.K. Jain.
M/s. R.N. Bail & Co., Auditors of the company retired and were re-
appointment. The observations contained in the Auditors Report are self
explanatory read with Notes on accounts, and therefor no separate comments
are called for.
PARTICULARS OF EMPLOYEES:
Particulars of employees pursuant to section 217 (2A) of the Companies Act,
1956 read with companies (Particulars of employees) Rules, 1975, are nil.
CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION, FOREIGN EXCHANGE EARNING
The information in accordance with the provisions of Section 217(1)(e) of
the Companies Act, 1956 read with the Companies (Disclosure of Particulars
in the report of Directors) Rules, 1998 is given in Addendum to this
LISTING OF SHARES WITH STOCK EXCHANGES:
The Equity shares of the company are listed on Ahmedabad, Delhi, Kanpur and
Mumbai Stock Exchanges. Due to tight liquidity position of the company, the
listing fee of Ahmedabad and Mumbai stock exchanges not paid since 1997-98
and for Delhi and Kanpur not paid since 1996-97.
As required under section 217(2AA) of the Companies act, 1956, your
Directors confirm that in the preparation of the annual accounts:
i) the applicable accounting standards have been followed alongwith proper
explanation relating to material departures;
ii) such accounting policies have been selected and applied consistently
and reasonable and prudent judgements and estimates made, 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 the profit/loss of the company for that period;
iii) proper and sufficient care has been taken 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;
iv) the annual accounts have been prepared on a going concern basis.
The Directors place on record their deep appreciation for the cooperation
and support extended by the Pradeshiya Industrial & Investment Corp. of
U.P. Ltd. (PICUP), IFCI Ltd., Bankers, Hindustan Lever Ltd., and Ruchi Soya
Group. The Directors also wish to place on record their deep appreciation
for dedicated services and contribution provided by employees of the
Company. The C&F Agents and distributors are also to be thanked for their
continuous support provided by them to the Management.
FOR AND ON BEHALF OF THE BOARD
Place: NOIDA R.B. JAIN P.B. Jain
Date : 25.4.2005 Director Managing Director
ADDENDUM TO DIRECTOR'S REPORT
(In Compliance to Section 217(1) of the Companies Act, 1956)
A. CONSERVATION OF ENERGY:
a. Energy Conservation measures taken:
1. Soft Water used in boiler for steam production.
2. Steam condensation recovery unit installed to reduce steam consumption.
3. Heat recovery system provided in boiler.
b. Additional Investment, Proposals if any for reduction of Consumption of
c. Total Energy consumption and energy consumption per unit of
production(as per Form A of the Annexure in respect of industries specified
In the schedule thereto): Please refer form A.
TECHNOLOGY ABSORPTION: N.A.
FOREIGN EXCHANGE EARNINGS & OUT GO:
Current Year Previous Year
1) Foreign exchange earning NIL NIL
2) Foreign exchange outgo 669.38 3557.38
A. POWER & FUEL CONSUMPTION Current Year Previous year
(a) Purchase Units (lacs) 13.54 17.84
Total/Amount(Rs./lass) 87.64 88.70
Average Rate/Unit (Rs.) 6.47 4.98
(b) Own Generation
(I) Through Diesel Generator Unit/lass 2.25 5.49
Unit per Ltd. of diesel oil 3.36 3.31
Average rate/ Unit (Rs.) 5.90 5.27
Quantity (MT) 3181 5251
Total Cost (Rs./lacs) 47.65 77.22
Average Rate per MT (Rs.) 1497.80 1470.62
B. CONSUMPTION PER UNIT OF PRODUCTION:
Electricity Consumed units/MT 137 152
Husk Consumed Kg/MT 268 343
MANAGEMENT DISCUSSION AND ANALYSIS:
Due to continuous losses in the previous years, your Company have closed
operations of its plant. The efforts are being made to sell the plant and
machinery of the Company.
Management of Risk:
The risk Management. process is to evaluate various risks associated with
the business and to introduce suitable mechanism to effectively reduce such
risks. The Company's plant is already closed.
Internal control systems:
The internal controls of the Company are centralised at the top management
level and the company is not having proper system of internal checks.
Management relations with employees remained cordial.