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Tinna Oils & Chemicals Ltd.

BSE: 519256 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
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Tinna Oils & Chemicals Ltd. (TINNAOILSCH) - Director Report

Company director report

1995 TINNA OILS & CHEMICALS LIMITED DIRECTORS' REPORT 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, 1995. 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 lacs. DIVIDEND 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. RIGHTS ISSUE 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 uncertainty. 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. GENERAL OUTLOOK 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. DIRECTORS 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 reappointment. 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. AUDITORS 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 reappointment. AUDITOR'S REPORT 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 explanation. 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 report. 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. ACKNOWLEDGMENT 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 fuel consumption. 2. Reuse of condensated water in Boiler Section resulted in saving in fuel consumption. 3. Effluent Treatment plant has been installed for reusing/ recycling of waste water for plantation purpose. FORM A 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 Produced. FORM B FORM OF DISCLOSURE OF PARTICULARS WITH RESPECT TO TECHNOLOGY ABSORTION TECHNOLOGY ABSORPTION 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 BHUPINDER KUMAR CHAIRMAN PLACE : NEW DELHI DATED : 26TH AUGUST, 1995.