SOLAR FARMACHEM LTD.
TO THE MEMBERS
Your Directors have pleasure in presenting the 13th Annual Report and Audited
Statement of Accounts for the year ended 31st March. 1994.
The year witnessed further liberalisation of industrial policy by the
Government of India. The industrial production picked up generally. However,
for Pesticide Industry, the weather conditions were not very conducive.
Although the South-West Monsoon was about normal, the rain fall was not
The pesticides season for Kharif crops commenced with great hopes but ended
rather sluggishly. Thereafter the Rabi season did not witness the desired
growth pattern. As a result of this the funds flow in the Agricultural Sector
was seriously affected leading to poor market recoveries.
Your Company has shown a substantial increase in operations and profits.
However, it is below the expectations of your Directors and the projections,
due to the above mentioned reasons. Given herebelow are the financial results
The total income for the year was 52.38% higher than the previous year.
The operating profit was Rs. 170.37 Lacs as compared to Rs. 132.89 Lacs in
the previous year, aincrease of 28.2%
The profit after Tax was Rs. 76.11 Lacs as compared to Rs. 42.5 Lacs in the
previous year, an increas of 79.08% over the previous year.
Your Directors recommend 15% Dividend on enhanced equity capital subject to
deduction of tax. The Equity shares issued during the year 1993-94 will be
entitled for dividend on pro-rata basis.
13th ANNUAL REPORT
REVIEW OF OPERATIONS
Operations for the year under report registered substantial increase in
annual turnover whigh rose from 17.39 Lacs to Rs.1245.52 Lacs, an increase ot
52.38%. Operating profit for the year at Rs.170.37 was 8.2% above last year's
profit of Rs.132.89 Lacs reflecting substantial improvement in margins. he
Shareholders may note that the new plants were operational during the ye.ar but the full impact of heir working will be withnessed only during the
current year due to the sluggish market conditions in he latter half of the
previous year as mentioned above.
R & D RECOGNITION
The Directors are happy to inform them embers that the Company's R&D Center
which was inaugurated a year ago has received recognition as an Approved In-
house R & D Center from the Department of Science & Industrial Research,
Ministry of Science & Technology, Government of India. This will enable the
Company to accelerate the development of new products. The Centre has already
developed a few products which can be manufactured in the plant level by
installing the balancing equipments and for which there is an existing
market. Your Directors have already initiated necessary action in this
The current year's market trend is good and the addition of new products is
expected to pay rich dividends in the second half of the current financial
Considering the above facts, your Directors expect superb results during the
During the year under review the Company has exported goods worth Rs.36.08
Lacs. The Company has sizeable export inquiries on hand and expects good
export business during the current year.
Shri Pankaj Kadakia, Director of the Company, who retires by rotation and
being eligible offers himself for re-appointment.
M/s Prakash R. Muni., Chartered Accountants, are the retiring Auditors of the
Company. They being eligible have shown their willingness to be re-appointed.
The Board recommends their reappointment. Auditors Report and the Notes
forming part of the Accounts are self-explanatory and as such the Directors
have not dealt with the same in their report.
There are no employees falling wit,hin the purview of the provisions of
Section 217 (2A) of the Companies Act, 1956.
The Company has not accepted any deposits from public during the year under
The Solar family has always maintained good human relationship and this has
continued both with staff and workers. The Board would like to place on
record their appreciation for the hard work and excellent team spirit of the
Safety & Health
The Company carries out a regular health check-up of all the plant workers.
This policy of giving utmost importa-nce to health and safety has enabled one
more year of accident-free operations. Safety programmes will be enhanced to
keep up this record on larger operations also.
Particulars regarding conservation of energy, Research & Development etc,
pursuant to the Comp Rules 1988 are set out in the Statement annexed to this
report forming its part.
Your Directors wish to place on record their sincere appreciation to the
Bankers, Memb Customers and Well-Wishers for their confidence and co-
ANNEXURE TO DIRECTORS' REPORT
Particulars required under the Companies (Disclosure of Particulars in the
report of Board of Directors Rules 1988 and forming part of the Directors'
Report for the accounting year ended 31st March 1c
1. Conservation of Energy
(a), (b) and (c): The Company made investments in the procurement and
installation of Falling F Evaporator and Agitated Thin Film Evaporators. This
has not only contributed to savings in Ene for distillation process but it
has also resulted in savings in the consumption of solvent.
(d) Total energy consumption and energy consumption per unit of production:
PARTICULARS 31.03.94 31.03.93
Power & Fuel Consumption.
Units 1,96,863 2,31,593
Total Amount 8,09,803 6,08,900
Average Rate/Unit (Rs.) 4.11 2.850
(b) Own generationThrough Diesel Generator
Units 11,937 8,152
Units per Litre of Diesel oil 2.15 2.20
Average cost/unit (Rs.) 3.30 3.21
L. D. Oil
Quantity (Litres) 10,100 19,200
Total Cost 75,545 1,07,314
Average Rate/Unit (Rs. per Litre) 7.48 5.59
For and Qn behalf of the Board
HARSHAD L. VYAS
CHAIRMAN & MANAGING DIRFCTOR
DATE : 23rd Auqust 1994.