Annual Report 1999-2000
SADHANA NITRO CHEM LIMITED
Ladies & Gentlemen,
I am glad to welcome you all at the 27th Annual General Meeting of your
The Directors' Report and the Audited Annual Account for the year 1999-2000
are already with you for quite sometime and with your permission, I, take
the same as read.
Uncertain market conditions and high degree of competition has exerted
tremendous pressure on the chemical industry and your company also has its
share. The turnover of your company during 1999-2000 was Rs.3407 lacs as
against Rs.3443 lacs in the Previous Year.
In the year under review, the growth of the company was hard hit on two
counts, firstly there has been decline in sales and secondly there has been
ongoing price erosion. Due to sluggish market, your company has to absorb
the cost escalation due to increase in price of several raw materials and
The marketing thrust to push the share of high value added product in the
overall turnover resulted in change in product mix favourably.
Intense commitment and untiring efforts in improving the productivity and
efficiency at all levels alongwith stringent cost control on overheads has
contributed in partially offsetting the adverse impact of above factors.
The new activities in the field of Information Technology such as designing
of websites, hiring out space for websites and providing various E-Commerce
related services are in the development stage it will require efforts and
gestation time before it starts contributing.
The profit after tax for the year under review was at Rs.186.74 lacs
(Previous Year Rs. 153.82 lacs).
Your company was able to maintain its operating performance in the wake of
Your directors have announced an interim dividend of Rs. 2.50 per equity
share which has already been paid to the members on 20th April, 2000. It is
recommended to consider the said interim dividend as final dividend for the
Quality is no more an issue pertaining to,technical department. It embraces
in its fold the total organisation system. You will be glad to know that
the practices and procedures adopted by your company enabled it to achieve
ISO-9002 Quality System Certification from Bureau of Indian Standards. I am
sure you all will join me in congratulating the employees at all levels
whose dedicated and sincere efforts were core to this achievement.
Your company has already taken appropriate strategic steps for re-
organising and restructuring its operations for deriving benefits of
synergy and optimum utilisation.
You will be glad to note that the R & D Laboratory of your company has been
strengthened further with the addition of highly sophisticated imported
equipments. It is also heartening to note that a well equipped analytical
laboratory has been set up at factory.
Your company has identified and developed, in its own R&D processes for
several new chemical intermediates for its future diversification. Under a
chalked out project implementation programme your company has successfully
commercialised the first phase of the project. The negotiations for sales
tie up are in progress with foreign parties.
The restructuring on its completion, will result in the benefits in form of
optimum utilisation of capacities and cutting down some of the operating
costs. Besides it will open avenues of growth by creating infrastructures
which can be used as multipurpose plant for manufacturing several high
value chemical intermediates having applications in agrochemicals,
pharmaceuticals and plastic additives. This will provide inherent strength
and foundation for future growth.
The turnover of your company during the first four months of the current
year has been at Rs.1130 lacs compared to Rs.1353 lacs in the Previous
I am quite sure that your company will continue its efforts in aiming at
improving the overall performance and consequently the shareholders value.
I on behalf of myself and other directors on the Board, wish to thank you
all for the trust and confidence reposed in us and for sparing your
valuable time in participating in the meeting.
Mumbai D.T. Javeri
Date: 30th August, 2000 Chairman