TINNA OILS & CHEMICALS LIMITED
Your Directors have pleasure in presenting your this Fourth Annual Report
of the Company and the Statement of Accounts for the year ended 31st March,
REVIEW OF OPERATIONS
There has been a significant improvement in the overall performance of the
Company. The Company has recorded a 41 7% increase in turnover to Rs.
11031.35 lacs against Rs. 2133.30 lacs in the previous year. Gross profit
now stands at Rs. 788.55 lacs and net profit at Rs. 390.55 lacs for the
year 1994-95. After appropriations the retained profit stood at Rs. 329.51
Since this is the first full year of operations & keeping in view of
implementation of expansion and diversification of projects during the
year, the Board of Directors recommends to skip the dividend for the year
to plough back the profits to strengthen the working capital operations.
EXPANSION AND DIVERSIFICATION
As a part of our diversification plans, the Company decided to set up a
fully mechanized bulk cargo handling facility at Vizag at a project cost of
Rs 460.00 lacs. More than a million tonnes of agro products mainly oil seed
extractions are exported from the eastern ports. At present there are
severe bottlenecks in the loading rates at Indian ports, resulting
inordinate delays in loading the vessels. With this pioneering project, the
average loading rate will increase to 4000 MT per day and reduce handling
& wastages to negligible amount. These and other benefits will make the
Indian agro produce more competitive to international markets.
The Company has launched its consumer branded product SUNFIT & SOYAFIT and
plans to introduce other edible brands shortly. To meet its increased
demand the Company is proposing to expand its refinery capacity from 50
Tonnes per day to 100 Tonnes per day at a project cost of Rs. 240.00 lacs.
The aforesaid projects are in advanced stage of completion and the
operations are expected to commence very soon. The Board is confident that
the results of expansion and diversification will be felt in the improved
operational performance in the forthcoming year 1995-96.
The Company has earlier planned for a rights issue in the ratio of 3:10 at
a premium of Rs. 10/- to part finance the expansion and diversification
projects. However, due to policy changes by the RBI, the foreign currency
loans could not be tapped. Further the final sanction from SBI, the
appraising agency of the Term Loan was also delayed due to this
Now the Company is proposing to revise the terms of offer of rights issue
in consultation with the Lead Managers to the issue and is expected to open
the rights issue in October/November 95. The final sanction/administrative
approval from the consortium banks for the term loans is being received and
the letter of offer is expected to be completed shortly. The Company has
already received Rs. 215.00 lacs from promoters, their relatives or
associates towards the proposed rights issue, pending allotment.
WORKING CAPITAL FINANCE
The Company is receiving encouraging response on export front. The Company
has received firm export orders of over Rs. 13300.00 lacs for the export of
Deoiled cakes, sunflower oil and merchant exports of Rice, Wheat, Sugar
etc. Further export orders are in pipeline.
In order to meet its ambitious plans of targeted turnover of Rs. 22500.00
lacs during 1995-96 the Company may approach for increased working capital
finance from consortium banks and is positive to receive favourable
response from the banks.
The year under review saw momentous changes in the Indian Economy. The
Economic Reforms and Liberalisation policies of the Govt. of India have had
their impact on all aspects of the Oil Industry and Trade. The Govt. has
allowed import of oils with 30% import duty. In order to take advantage of
international prices the Company is having plans of import of seeds and or
oil to improve the operations margins.
Your Company recorded an export turnover of Rs. 6890.47 lacs (CIF) during
1994-95 constituting about 62.5% of the total turnover of the Company
despite highly competitive conditions abroad.
The application has been made to the concerned Govt. Authority for the
trading house status and expected to receive favourable consent shortly.
The Company continues its thrust on long term export strategy focussing on
providing internationally accepted quality & committed schedules.
In accordance with the requirements of Companies Act, 1956 and Article 140
of the Articles of Association of the Company Sri Nandlal and Sri Dilip
Kumar retire by rotation and being eligible, offer themselves for
reappointment. Sri Hemant Kumar Sekhri & Gautam Sekhri who were appointed
as Additional Directors on 31st May, 1995 and 26th August 95 respectively
retire at this meeting and being eligible offer themselves for
Sri. Ramesh Vasudeva Director of the Company has resigned From The Board of
Directors effective from 12th August, 1994 and Sri. D.P.L. Nanda and Capt.
Suresh Vasudeva, Directors of the Company resigned from the Board of
Directors with effect from 31 st March, 1995. The Board wishes to place on
record the valuable contribution and support extended by them during their
tenure as Directors of the Company.
Members will be required to appoint auditors for the Current Year and fix
their remuneration. M/s Rawla & Co., the retiring Auditors are eligible for
With reference to the observations made by the Auditors in their report,
the Directors wish to state that the notes forming part of the Company's
accounts are self explanatory and hence do not require any further
PARTICULARS REGARDING CONSERVATION OF ENERGY ETC
Information in accordance with the provisions of Section 217 (1) (e) of the
Companies Act. 1956 read with Companies (Disclosure of Particulars in the
report of Board of Directors) Rules, 1988. regarding conservation of
energy. technology absorption and foreign exchange earning and outgo is
given in the statement annexed (Annexure "I") hereto forming part of the
PARTICULARS OF EMPLOYEES
The information required u/s 217 (2A) of the Companies Act, 1956, read with
the Companies (Particulars of Employees Amendment Rules. 1988 is given in
the Statement annexed (Annexure "II") hereto forming part of the report.
Your Directors take this opportunity to place on record their appreciation
for the support and cooperation extended to the Company by Commercial
Banks. Financial Institutions. Business Associates, Shareholders and
Customers. Your Directors also wish to place on record their deep sense of
appreciation for the devoted services of the executives. staff and workers
of the Company for its success.
ANNEXURE TO DIRECTORS' REPORT
PARTICULARS REQUIRED UNDER THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE
REPORT OF BOARD OF DIRECTORS) RULES, 1988.
CONSERVATION OF ENERGY
ENERGY CONSERVATION MEASURES TAKEN
1. Installation of Economiser in Boiler Section has resulted in saving in
2. Reuse of condensated water in Boiler Section resulted in saving in fuel
3. Effluent Treatment plant has been installed for reusing/ recycling of
waste water for plantation purpose.
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSUMPTION OF ENERGY.
A. POWER AND FUEL CONSUMPTION
CURRENT YEAR PREVIOUS YEAR
Unit Value Unit Value
(in Rs.) (in Rs.)
1 Electricity purchased 1902.564 51,50,750 1181.705 31,96,233
(in 000 kwh)
Rate (in Rs.) 2.70 2.70
2. Coal (in MT) 437.760 6,12,142 1335.960 11,75,185
Rate/MT (in Rs.) 1,398.00 879.66
3. Bagasse (in MT) 5546.650 21,00,315 2772.370 7,87,666
Rate/MT (in Rs) 379.00 284.11
4. Wood (in M.T.) 2441.665 15,25,060 - -
Rate/MT (in Rs.) 625.00
5. Paddy Hush (in MT) - - 35.26 12,341
Rate/MT (in Rs) 350 00
6. LDO & Diesel (in ltr) 101515 7,21,439 26,069 1,30,871
Rate/Ltr (in Rs.) 7.11 5.02
B. CONSUMPTION PER UNIT OF PRODUCTION
Current Year Previous Year
Electricity 95 Units 193 Unit PER Mt of Raw/
Refined oil Produced
Coal/bagasse/paddy/ 419 Kg 676 kg PER MT of Raw/Refined
Husk/Wood Oil Produced
LDO & Diesel 14 Ltr 17 Ltr PER MT of Refined Oil
FORM OF DISCLOSURE OF PARTICULARS WITH
RESPECT TO TECHNOLOGY ABSORTION
1. The manufacturing process involves the use of integrated Extruder-
Expander System in the preparatory for better preparation of oil
bearing raw materials eliminating presence of fines and improvement in the
efficiency, quality as well as the rate of oil extraction.
2. The continuous process adopted to produce edible oil is of physical
refining with deodourisation & bleaching which is of superior and latest
technology compared to conventional batch or centrifugal neutralisation.
FOREIGN EXCHANGE EARNINGS AND OUTGO
This information is contained in Notes forming part of accounts.
ANNEXURE II TO DIRECTOR'S REPORT
Particulars of Employees as per Section 217(2A) of the Companies Act, 1956,
read with Companies (Particulars of Employees) Rules, 1975.
A) Employed throughout the year under review and were in receipt of
remuneration aggregating to not less than Rs. 3,00,000 p.a. - Nil
B) Employed for the part of the year and were in receipt of remuneration
aggregating to not less than Rs. 25,000 p.m. - Nil
For and on Behalf of the Board
PLACE : NEW DELHI
DATED : 26TH AUGUST, 1995.