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Rattan Vanaspati Ltd.

BSE: 519469 Sector: Others
NSE: N.A. ISIN Code: INE330C01019
BSE 05:30 | 01 Jan Rattan Vanaspati Ltd
NSE 05:30 | 01 Jan Rattan Vanaspati Ltd

Rattan Vanaspati Ltd. (RATTANVANASPATI) - Director Report

Company director report

RATTAN VANASPATI LIMITED ANNUAL REPORT 2003-2004 DIRECTOR'S REPORT To, The Shareholders, 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 31.03.2004 31.3.2003 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. OPERATIONS: 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. PROSPECTS: 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 capital. 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. FIXED DEPOSITS: 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. DIRECTORS: 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. AUDITORS: 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 AND OUTGO: 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 report. 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. RESPONSIBILITY STATEMENT: 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. ACKNOWLEDGMENT: 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 Energy: NIL 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 ANNEXURE FORM-A A. POWER & FUEL CONSUMPTION Current Year Previous year 1. Electricity: (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 2. Husk: 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: Business scenario: 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. Human Resources: Management relations with employees remained cordial.