Mar 31, 2010
The Directors are pleased to present herewith the Fifteenth Annual
Report on the business and operations of the Company together with
Audited Statement of Accounts for the year ended 31st March 2010. The
highlights for the year under review are follows: -
1. FINANCIAL INFORMATION:
The performance of the Company during the period under review is
summarized below: -
(RS.IN LAKHS)
PARTICULARS 2009-10 2008-09
Net Sales 4576.40 3518.78 .
Other Income - -
Interest and Financial
charges 98.90 116.25
Depreciation 8.88 9.50
Profit/(Loss) before taxes 178.52 175.19
Provision for taxes 41.40 43.88
Profit / (Loss) carried to
Balance Sheet 137.12 131.31
During the year under review, your Company has achieved a gross
turnover of of Rs. 4545.43 Lacs as against Rs. 3528.89 Lacs in 2008-09.
The Operational performance of the Company is discussed under
Management Analysis and Discussion Report.
2. DIVIDEND
Your Directors considered it prudent to conserve the resources of the
Company to sustain.its future growth and as such have not recommended
any dividend for the current financial year.
3. STATUS OF IMPLEMENTATION OF PROJECT
Initially the cause for farmers prefering to go for Jatropha plantation
is that it can be grown in non-agricultural lands which are left
uncultivated due to poor soil conditions and non-availability of water
sources. But now, as the Government of Andhra Pradesh as also other
states have started constructing several dams across the Perennial
rivers to prevent the wastage of water by allowing it to go into sea,
the water thus stored is being diverted to uncultivated lands. Most of
the areas relating to uncultivated lands are marked for Cultivation.
Thus, the prospects of the farmers being very promising with land value
having gone up by several times, has boosted their morale who are more
inclined to grow Commercial crops like Paddy, Chillis etc., besides
Plantations like Banana, Orange and other Citrus fruits. As they have
started working by developing the lands in this direction which is of
more remunerative when compared to Jatropha cultivation, there is an
escalation of cost of production due to non availability of jatropa
seeds. Hence, the prospects of hoping for more Jatropha Plantations are
bleak.
While at the same time the Bio diesel, (Petro Diesel) production is not
improving to the expected levels due to non-availability of Jatropha
Seed, the primary in-put to Bio Diesel manufacturing. The scanty
availability has caused an excess demand which has resulted in the
steep rise of seed price ranging between Rs.10 to 12 per
Kg as against a maximum price of Rs.6/- per Kg at the time of our
planning to go for this product through Public issue during year
2008-09. This has resulted in escalation of cost of production which is
not economical for the growth of the Company.
Meanwhile, as an alternative, your directors are contemplating the
propects of importing Bio crude oil from Countries like Malaysia and
other African countries where the Crude is available in surplus.
Already few manufacturers started importing Bio crude oil and are in
the process of transesterfication to produce Bio- Diesel as cost of
imports is much cheaper when compared to the present cost of oil
extracted from seeds .
In view of the above situation, as also taking into cognizance, the
views expressed by our subsidiary company ,M/s Jetro Petro Bio tech
Private Limited, it is worthwhile to consider the following proposals
and seek the approval from share holders of the company in this Annual
General Meeting:-
1. Recovery of the amount advanced to farmers through our Subsudiary
M/s.Jetro Petto Biotech Private Limited.
2. Advise to the machinery supplier to expediate the dispatch of
modified machinery, ie. Transecterfication plant in the first
instance.
3. Starting off trading operations of Bio diesel from available
sources so as to develop a good marketing network and start our own
outlets before, commencing our manufacture.
4. installation of esterficatdon Plant at the earliest and completion
before 31.03.2011.
4. CONSOLIDATED FINANCIAL STATEMENTS:
Yours Directors have pleasure in attaching the consolidated financial
statements pursuant to Clause 41 of the Listing Agreement entered into
with the Stock Exchange. These statements were prepared in accordance
with the Accounting Standard 21 prescribed by the Institute of
Chartered Accountants of India in this regard. The company has no
branches.
The Auditors Report to the Board of Directors does not contain any
qualifications.
5. FIXED DEPOSITS
The Company has not accepted any fixed deposits from the public within
the meaning of section 58A of the Companies Act, 1956.
6. SUBSIDIARY COMPANY:
The statement pursuant to Section 212 of the Companies Act, 1956,
containing details of subsidiary of the Company forms part of the
Annual Report. The name of the Subsidiary Company is "Jetro Petro
Biotech Private Limited".
7. STATUTORY DISCLOSURES: CONSERVATION OF ENERGY AND TECHNOLOGY
ABSORPTION:
In view of the nature of activities that are being carried on by your
Company, Rules 2A and 2B of the Companies (Disclosure of Particulars in
the Report of Board of Directors) Rules, 1988, concerning conservation
of energy and technology absorption, respectively are not applicable to
your Company. Your company is being a manufacturer of pesticides and
insecticides requires minimal energy consumption and every endeavor has
been made to ensure the optimal use of energy, avoid wastage and
conserve as far as possible.
FOREIGN EXCHANGE EARNINGS AND OUTGOINGS
Rs. In Lakhs
1. Total Foreign Exchange earned Nil
2. Total Foreign Exchange utilized Nil
RESEARCH AND DEVELOPMENT
During the year No amount was spent as Capital / Recurring Expenses
towards the Research and Development
8. DIRECTORS
- In accordance with the requirements of the Companies Act, 1956 and
the Articles of Association of the Company, Shri K.Balakrishna Rao and
Shri D.Shankar Directors retire by rotation and being eligible offer
themselves for re-appointment.
- Shri Ch. V.Varaprasad Rao was appointed as an Additional Director of
the company with effect from 31s1 January 2010, who holds office till
the date of Annual General Meeting. Shri.Ch.V.Varaprasad Rao was also
appointed as Wholetime Director of the Company in Board meeting held on
31st January 2010. The Board Recommends for his appointment.
9. AUDITORS
Sri T. Nehru, Chartered Accountant, Vijayawada, the Statutory Auditor
of the Company , retires at the ensuing Annual General Meeting and
being eligible, has offered himself for re-appointment.
10. AUDIT COMMITTEE
In accordance with Clause 49 of the Listing Agreement, the company has
constituted an Audit Committee, which consists of Three Independent and
Non Executive Directors of the company Viz. Mr D.Shankar, Mr
P.Narasimha Murthy and Dr K.Srihari Rao. The Audit committee functions
in terms of the role and powers delegated by the Board of Directors
keeping in view of the Provisions of Clause 49 of Listing Agreement and
Section 292A of the Companies Act 1956.
11. PARTICULARS OF EMPLOYEES
There are no employees in the organization coming under the provisions
of section 217(2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975 as amended.
12.DIRECTORS RESPONSIBILITY STATEMENT
In accordance with sub-section (2AA) of section 217 of the Companies
Act, 1956, the Directors of the Company state:
a. That in the preparation of the accounts for the financial year
ended 31st March 2010, the applicable accounting standards have been
followed along with proper explanation relating to material departures.
b. That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that were
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit of the Company for the year under review.
c. That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safe guarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
d. That the Directors have prepared the accounts for the financial
year ended 31s1 March 2010 on a going concern basis.
13 CORPORATE GOVERNANCE
A separate report on corporate governance along with Auditors
Certificate on its compliance is attached to this report.
14.MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A Separate Report of Management Discussion and Analysis as required
under the Provisions of listing agreement attached to this report.
15. ACKNOWLEDGEMENTS:
Your Directors wish to express their appreciation for the cooperation
and continued support received from the Companys Bankers. Your
Directors also take this opportunity to place on record their
appreciation for the dedicated services rendered by the executives,
managers, officers, employees and workers for the dedication and sense
of commitment shown by the employees at all levels and their
contribution towards the performance of the Company.
By Order of the Board
Sd/-
Place: VIJAYAWADA K.Balakrishna Rao
Date: 09.08.2010 Chairman
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