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1994
SWASTIK NITRO AROMATICS LIMITED.
DIRECTORS' REPORT
The Directors hereby present their Fifth Annual Report and the audited
Statement of Accounts for the year ended 31st March, 1994.
Operations:
As the members are aware, the company was setting up a Nitrobenzene
manufacturing unit of 6000 MT per annum. Due to fund constraints, internal
disturbances and its consequential impact on implementation, additions of &
modifications in some critical equipments, unforeseen bottlenecks during
mechanical testing & commissioning linked with teething troubles during
start-up, prospectus projections to commission this project in August, 1993
was not materialised. The project was trial commissioned on July 10, 1994 and
your company has produced Nitrobenzene of excellent quality during
commissioning. As on 31st October, 1994, your Company had incurred approx.
Rs. 5.27 crores towards implementation of this Project. Your Company had
recruited sufficient technical & administrative personnel for start-up of
this unit.
Present Status & Future Prospects:
To enhance the viability of the project, the management has reviewed the
production facilities and feels it necessary to expand the plants installed
capacity from 6000 MT per annum to 900 MT per annum. The management expects
to implement this expansion scheme within 3 months with marginal capital cost
increment by making some additions/standby arrangements, debottleneckings &
engineering improvements in existing set-up, which will result in better
yield & more viability of the project. This expansion scheme is recommended
to be implemented during this shutdown to take advantage of the idle period
needed to make necessary arrangements & tie-up for restarting the plant at
expanded capacity .
Due to various reasons mentioned herein, the plant is under shut-down for
stabilising the operations and your Company is in the process of preparing
revised cost of project and its means of finance for submission in
Institution/Bank to avail their approval & further assistance towards it
under their relevant funding schemes.
The directors expect that regular commercial production will be restarted at
expanded capacity from next financial year and are optimistic about company's
future because of lower cost of production & better quality due to innovative
technology.
Fixed Deposits:
Since your company has not accepted any deposits from the Public, no
information is required to be furnished thereon.
Insurance:
All the properties (fixed assets) of the company have been adequately
insured.
Directors:
Mr. Murlidhar B. Somani and Mr. Kirit T. Gadhia, Directors, retire by
rotation at the ensuing Annual General Meeting of the Company and being
eligible, offer themselves for reappointment.
Mr. Tulsidas G. Gadhia, Jt. Managing Director, has resigned as Joint Managing
Director w.e.f. 1.12.94. However, he will continue to be a Director of the
Company. The Board places on record services rendered by him as Joint
Managing Director of the Company.
Mr. Suresh B. Sheth has been appointed by the Board, as Joint Managing
Director of the company w.e.f. 3.12.94, for a period of 3 years. The
resolution to this effect is being moved at the ensuing Annual General
Meeting for your approval.
Employees and Other Particulars :
There are no employees in the company drawing salary of Rs. 1,44,000/- p.a.
and employee for full year and drawing salary of Rs. 12,000/- per month and
employed for the part of the year.
In terms of Section 217 (1) of the Companies Act, 1956 (as amended) and the
Companies (disclosure of particulars in the report of Board of Directors)
Rules, 1988, the Directors furnish hereunder the additional information as
required.
(A) Conservation of Energy Since the project to manufacture Nitrobenzene was
in implementation stage and no worthwhile manufacturing activities have
commenced till the date of this report, there is nothing to be drsclosed in
respect of conservation of energy. However, in designing, engineering and
execution of the project, energy optimisation schemes and pollution control
features have been incorporated.
(B) Technology Absorption: The technology agreement with consulting Technical
Director, Mr. Suresh B. Sheth, includes providing technology and provision of
training, which has assisted the company in absorption of the technology from
pilot plant scale to commercial scale alongwith exchange of information on
improvements in technology for manufacturing Nitrobenzene.
(C) Foreign Exchange Earning and Outgo: Since the project for the manufacture
of Nitrobenzene was in implementation stage and no worthwhile manufacturing
activities have commenced till the date of this report, there is nothing to
be disclosed in respect of foreign exchange earnings, which might have been
possible by export of the product. However, it would be pertinent to note
that the technology innovated and adopted by your company for manufacturing
Nitrobenzene is being demonstrated for first time in our country thereby
resulting in saving of foreign exchange to the extent which would have been
paid to any foreign collaborator for technology transfer/collaboration.
Auditors:
M/s. Nahta Jain & Associates, Auditors of the company hold office until the
conclusion of the ensuing Annual General Meeting and are eligible and
recommended for reappointment. The company has received consent from them to
the effect as per Statutory provisions.
Acknowledgements:
The Directors place on record their grateful appreciation for the assistance
and co-operation received from the Gujarat Industrial Investment Corporation
Limited Banks, Government Agencies, consultants, vendors, well-wishers,
staff, etc. alongwith Investors in our Public Issue for their overwhelming
response during the year under review.
For and On Behalf of Board of Directors
Chandratan B. Somani
Chairman & Managing Director
Place: Ahmedabad
Date : 3rd December, 1994.
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