RENCAL CHEMICALS (INDIA) LIMITED
To the Members,
Your Directors have pleasure in presenting the Twelfth Annual Report and
Audited Accounts for the year ended 31st March' 1999.
The Directors of the Company are pleased to inform you that despite
difficult Market Conditions, your company was able to maintain sales at a
reasonable level Various tringent cost reduction meaure have helped the
company in maintaining the operations profitability, though at a low level
In the absence of adequate profit for distribution, the Directors have
decided to skip the dividend for the year and conserve the resources for
During the four months ending 31st July' 1999 your company achieved a Sales
turnover of Rs. 12.72 Lakhs (Previous Year 196.64 Lakh). The Company is
hopeful of getting new orders in the current year which will increase the
turnover and profitability substantially.
EXPANSION / DIVERSIFICATION
The implementation of the project to manufacture Oil Field Chemicals is
under progress st our new site located at MIDC, Lote in Ratnagiri district.
We expect to commence commercial production in current financial year
itself This project is expected to make significant contribution to
company's operation on achieving the rated capacity.
We are pleased to inform you about the appointment of Dr. M.K.Saha as
Additional Director of our Company w.e f 13.8.99. Dr. M.K Saha is a well
known Polymer Scientist and he would brin8 in invaluable knowledge and
experience for contribution to our new Polymer Project and hence your
director recommends his appointment at the ensuing meeting .
DELISTING OF SHARES
Equity Shares of our Company are listed at Bombay, Ahmedabad and Madras
Stock Exchange. However they have never been traded at Ahmedabad and Madras
Stock Exchange, Hence our public issue. Hence, the Board of Directors have
decided to Delist the Share from these two Stock Exchange
Employee relation were cordial during the year. Employee at all level put
in their sincere effort for improving the Company's operation. lnformation
per Section 217 (2A) of the Companies Act 1956 is not furnished, since none
of the employees were in receipt of remuneration in excess of Rs.
3,00,000/- per annum or Rs 25,000/- per month.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTlON, ETC.
The information required under Section 217 (1) (e of the Companies Act.
1956 is appended hereto and form part of this report
AUDITORS AND AUDITORS REPORT
M/s. Krisnakumar Thakkar & Co., Auditors of the Company hold office until
the conclusion of the enuing Annual Ceneral Meeting. The Company has
received letters from them to the affect that their appointment, if made,
would be within the prescribed limits under Section 224(1-B) of the
Companies Act, 1956. Accordingly, the said auditors will be appointed as
auditor of the Company at the ensuing Annual General Meeting. The notes to
the accounts referred to in th Auditor' Report are self explanatory and,
thereofore, do not call for any further comments.
PLACE:NAVI MUMBAI For and on behalf of the board of Director
DATE: 30TH AUGUST,1999 R.D.Pade
Annexure to Directors report
Information under Section 217 (1) e) of the Companies Act, 1956 read with
Companies (Diclosure of Particulars in the Report of Directors) Rules 1988,
and forming part of the Directors' report for the year ended March 31,
1. CONSERVATION OF ENERGY
The Company has taken various steps of energy conservation such as
improving efficiency of Boiler and Chilling Plants, insulation of pipeline,
servicing of electric motors, increasing batchsizes etc. With the above
measure, there has been substantial reduction in energy consumption.
2. TECHNOLOGY ABSORPTION
The Company is continuously carrying out work for technology improvement,
which has led to better quality, improved yields and less effluents. The
Company has also set-up new R &D Centre, development of new products is
3. FOREIGN EXCHANGE EARNING & OUTGO
Not applicable as on foreign exchange transactions were involved.