મેટ્રિક્સ
 
 
આઈટીસી ભદ્રાકલમ ડિરેક્ટર્સ રિપોર્ટ, આઈટીસી ભદ્રાકલમ ડિરેક્ટર્સ દ્વારા રિપોર્ટ

આઈટીસી ભદ્રાકલમ

બીએસઈ: 500340  |  ઍનઍસઈ : ITCBHADRA  |  ISIN: INE076A01012  |  Paper

શોધો આઈટીસી ભદ્રાકલમ કનેક્શન
ડિરેક્ટર્સ રિપોર્ટ વર્ષાન્ત : Mar '01
The Directors present the Annual Report and Audited Accounts of the
 Company for the financial year ended 31st March, 2001.
 
 Financial and Operational Performance
 
 The year ended 31st March, 2001 was a year of turnaround for your
 Company, after its Rs. 675 crores expansion project commenced
 commercial production in April, 1998. The production facilities
 operated at a capacity utilisation of over 100% during the year.
 Despite the industry facing a global slowdown in demand, coupled with
 continuing over supply, total sales, during the year, increased to
 2,04,649 tonnes (Rs.611 crores) from 1.79,715 tonnes (Rs. 444 crores)
 in the previous year, with exports improving to 39,228 tonnes (Rs.
 94.41 crores) from 19,896 tonnes (Rs. 42.82 crores). The growth in
 sales, over the previous year, was 38% in terms of value and 14% in
 terms of volume.
 
 Your Company's products, bench-marked against global best-in-classs,
 have substantially substituted imported paperboards for premium
 packaging and value added graphic applications in the domestic market.
 The value added portion of sales grew to 15% from 8% in the previous
 year. This all-round improvement in performance enabled your Company to
 register a profit after tax of Rs.34.89 crores, from a loss of Rs.32.12
 crores in the previous year.  The financial results, summarised, are as
 under :
 
                                            Year ended        Year ended
                                            31.03.2001        31.03.2000
                                            (Rs.Lakhs)        (Rs.Lakhs)
 
 Gross operating profit                      11776.52          7757.38
 Less: Interest and finance charges           4184.65          6716.85
 Less: Provision for contingencies                -             200.00
 Profit/(Loss) before depreciation, 
 amortisation and taxation                    7591.87           840.53
 Less: Depreciation and amortisation          4102.59          4052.83
 Profit/(Loss) before taxation                3489.28         (3212.30)
 Less: Provision for taxation                    -                -             
 Profit/(Loss) after taxation                 3489.28         (3212.30)
 Surplus/(Deficit) brought forward 
 from previous year                         (15645.43)       (12433.13)
 Surplus/(Deficit) carried to Balance Sheet (12156.15)       (15645.43)
 
 In view of the unabsorbed loss of early years, your Board regrets that
 the Company is not in a dividend paying position.
 
 Exports
 
 As mentioned last year, quality paperboards from the new machine
 enabled a significant foray for your Company into international
 markets. Exports of your Company have doubled and now its products have
 a significant presence in Sri Lanka, Bangladesh, Malaysia. Iran and the
 United Arab Emirates (UAE).  Towards the end of the year, your Company
 also executed orders for high value products to discerning customers in
 China and South Africa, it is anticipated that your Company's
 international business, particularly for demanding applications, will
 grow steadily across all focussed markets.
 
 Foreign Exchange Earnings/Outflow
 
 Foreign exchange inflow during the year, through exports, was US$ 20.93
 million compared to US$ 9.97 million in 1999-2000.
 
 The foreign exchange outflow on raw materials, spares and consumables
 was US$ 20.85 million compared to US$ 19.17 million in the previous
 year. The outflow on capital goods, technology know-how / consultancy,
 repayment of foreign currency loans etc., was US$ 9.64 million against
 US$ 12.49 million in the previous year.
 
 Product Development
 
 Your Company, during the year/ developed superior products for critical
 applications like liquid packaging and premium quality graphic
 printing. The Company's strategy for creating and enhancing product
 differentiation through constant optimisation of functional and graphic
 quality of boards helped build goodwill and loyalty for its products
 both in the domestic and export markets.
 
 Projects
 
 In order to exploit the increasing demand for coated boards and improve
 efficiencies, your Company upgraded its first paper machine by
 installing a coater and carrying out certain modifications/additions at
 an outlay of Rs. 30 crores. The products from this machine, after its
 upgradation and trials, have been well received by customers.
 
 With the objective of further enhancing the mill's international
 competitiveness in terms of quality, cost and environmental management,
 your Company, during the year, also embarked on a project for
 modernisation and upgradation of the pulp mill, at an outlay of about
 Rs. 227 crores.
 
 Corporate and Financial Developments
 
 The programme for substitution of high cost long-term debt with low
 cost borrowing, initiated in the previous year, with assistance from
 the Holding Company, I.T.C. Limited, was successfully completed.  This
 has resulted in substantial savings in interest cost.
 
 Plantations
 
 The Farm Forestry Programme, under clonal plantation, continued to
 progress with nearly 25.90 lakh clonal eucalyptus saplings, adequate
 for planting 1480 hectares of land, supplied during the year to
 growers. The high rate of survival and growth of clonal plantations has
 led to improved productivity of wood biomass and higher returns to
 farmers, resulting in a growing demand for the clones. This programme,
 as mentioned last year, is strategical linked to your Company's
 competitiveness and is expected to become a major source of competitive
 advantage in the years to come.
 
 Fire Incident
 
 There was a fire incident, on 22nd March, 2001 at the Company's mill at
 Bhadrachalam, in the power generating equipment area. The fire was
 fully extinguished within an hour by the swift and concerted action of
 the managers and workmen. No one was injured. Following this incident,
 production in the mill was affected. The new paper machine representing
 60% of the production capacity was brought on stream within a day. The
 other paper machines were made operational during the period 24th to 31
 st March, 2001.
 
 The equipment (turbo generator), is expected to be fully functional by
 end-May, 2001. The restoration cost is estimated at Rs. 5 crores, which
 is partly recoverable from the Insurer. The loss on account of
 production stoppage, and other costs, is estimated at Rs. 2.25 crores.
 (Rs. 1.79 crores, up to 31st March, 2001).
 
 Subsidiary
 
 During the year, your Company's subsidiary BFIL Finance Limited (BFIL)
 has not contracted any fresh business and continues to focus on
 recoveries from its clients. During the year. BFIL collected Rs. 2.93
 crores and concluded negotiations for settlement of debt for a value of
 Rs. 3.76 crores. The proceeds, inter alia, were utilised for
 liquidation of bank debt to the extent of Rs. 1.24 crores. Focussed
 efforts on recoveries have enabled BFIL during the last four years to
 collect Rs. 83.25 crores, including property settlements from its
 debtors, and the proceeds have largely been utilised towards
 liquidation of its debt from Banks and Financial Institutions,
 aggregating Rs. 57.76 crores, and repayment of fixed deposits
 aggregating Rs. 15.71 crores.
 
 BFIL incurred a loss of Rs. 6 crores during the year ended 31 st March,
 2001. After taking into account the deficit of Rs. 82.85 crores from
 the previous year, the deficit at the end of the year was Rs. 88.85
 crores.  Taking into account BFIL's performance of debt recovery and
 the provision of a sum of Rs. 50 crores in previous years, no further
 provision is considered necessary in the accounts for the year ended
 31st March, 2001, towards your Company's exposure in BFIL aggregating
 Rs. 72.24 crores.
 
 Fixed Deposits
 
 Under the Company's fixed deposit schemes, 351 deposits, aggregating
 Rs. 42.68 lakhs, were unclaimed at the end of the financial year.
 Subsequently, 57 deposits, aggregating Rs. 6.87 lakhs, have been
 repaid/ renewed. The remaining depositors have been approached for
 instructions. Your Company stopped acceptance and renewal of fixed
 deposits in September, 2000.
 
 Employees
 
 Your Directors wish to place on record their appreciation of the
 contribution by employees at all levels.  In April, 2001 a settlement,
 revising the terms and conditions of service of unionised employees,
 was concluded in a cordial atmosphere. This settlement, for the period
 up to 30th September, 2003, lays stress on productivity of resources
 and rationalisation of manpower.
 
 Outlook
 
 With the new Paper Machine operating at more than its rated capacity,
 plans are under implementation to expand the value added segment in the
 domestic and international markets on the one hand and improve cost
 efficiencies on the other. The project for modernisation and
 upgradation of the pulp mil!  is a significant step in the direction of
 enhancing your Company's international competitiveness in terms of
 quality, cost and environmental management.
 
 In the immediate term, the current slowdown in the world economy is
 likely to impact the paperboards industry. Despite the global slow
 down, the Indian economy is slated to grow at a rate of 6% p.a. The
 growth rate for paperboards is expected to further accelerate with the
 growing sophistication of the Indian consumer and the resultant
 increase in the demand for high quality packaging for branded goods. On
 the strength of its assiduously developed quality products and superior
 cost efficiencies, your Company is confident of maintaining its market
 standing.
 
 The Company will endeavour to make available world class paperboard
 options to customers to enable them enhance the value of their
 offerings in a competitive marketplace. Your Company views the Asian
 region as an arena of opportunity and, with its experience and product
 knowledge, will focus on increasing its share in such segments which
 place the most exacting demands on product performance. The performance
 during last year has provided your Company a platform to enter such
 segments. In the coming year, your Company will focus on harnessing
 profitable business opportunities in these segments with its product
 and service excellence.
 
 The Company continues to evaluate the most appropriate approach to
 derive value from Information Technology applications and web-based
 business opportunities. The web site www.itcbpl.com, launched during
 the year, as a vibrant tool for channel enhancement, is being
 upgraded to make it more inter-active for existing and potential
 customers. Your Company is now engaged in value chain integration using
 internet as a means for interaction amongst customers and suppliers.
 Online ordering and real-time tracking of the order status would be
 some of the customer friendly features of this solution, Savings are
 expected to be realised in the areas of inventory management,
 logistics, transaction processing and administrative costs. Your
 Company is in discussion with solution providers of international
 repute to select the most appropriate solution to match its needs.
 
 Directors' Responsibility Statement in terms of Section 217 (2AA) of
 the Companies Act, 1956 Your Directors have :
 
 a. followed in the preparation of the annual accounts, the applicable
 accounting standards with proper explanation relating to material
 departure;
 
 b. selected such accounting policies and applied them consistently and
 made judgements and estimates that are reasonable and prudent so as to
 give a true and fair view of the state of affairs of your Company at
 the end of the financial year and of the profit of your Company for
 that period;
 
 c. taken proper and sufficient care for the maintenance of adequate
 accounting records in accordance with the provisions of the Companies
 Act, 1956 for safeguarding the assets of your Company and for
 preventing and detecting fraud and other irregularities; and d.
 prepared the annual accounts on a going concern basis.
 
 Corporate Governance
 
 a) Report on Corporate Governance
 
 Certificate dated 18th May, 2001 of the auditors of your Company,
 regarding compliance of the conditions of Corporate Governance as
 stipulated in Clause 49 of the listing agreement with stock exchanges,
 is enclosed as Annexure to this Report.
 
 b) Management Discussion and Analysis Report
 
 Aspects of Management Discussion and Analysis not covered herein, are
 dealt with in the Annexure to this Report.
 
 Directors
 
 Sri S. H. Khan was appointed an Additional Director on 8th September, 2000. In accordance with
 Section 260 of the Companies Act, 1956 and Article 98 of the Company's Articles of Association, he
 holds office until the date of the forthcoming Annual General Meeting and is eligible for election.
 
 Sri B. Mitter resigned from the Board with effect from 7th March, 2001;
 and Sri K. Vaidyanath was appointed Director with effect from 8th
 March, 2001 in the casual vacancy caused by the resignation of Sri
 Mitter. Unit Trust of India appointed Sri Ajeet Prasad as its nominee,
 with effect from 28th July, 2000 in place of Sri B. G. Daga. Industrial
 Development Bank of India withdrew the nomination of Sri S.
 Suryanarayanan from the Board with effect from 9th June, 2000.
 
 Your Directors would like to record their appreciation of the services
 rendered by Sri Mitter, Sri Daga and Sri Suryanarayanan during their
 tenure as Directors of the Company.
 
 Acknowledgements
 
 The Directors have pleasure in recording their appreciation of the
 assistance extended to the Company by various officials of the Central
 and State Governments and by members of the participating Financial
 Institutions and Commercial Banks.
 
 Other Information
 
 Information on Energy Conservation and Technology Absorption required
 to be disclosed under Section 217(1)(e) of the Companies Act, 1956.
 read with the Companies (Disclosure of Particulars in the Report of
 Board of Directors) Rules, 1988, as well as information required to be
 disclosed in accordance with Section 217(2A) of the Companies Act,
 1956, read with the Companies (Particulars of Employees) Rules, 1975,
 forming part of the Directors' Report for the year ended 31st March,
 2001, are enclosed as Annexures to this Report.
 
                                             On behalf of the Board
 
                                P. Dhobale        Managing Director
 Kolkata, 18th May, 2001        P. K. Talwar      Director-Finance
 
 Information under Section 217(1)(e) of the Companies Act, 1956 read
 with the Companies (Disclosure of Particulars in the Report of Board of
 Directors) Rules, 1988 and forming part of the Directors' Report.
 
                                                      Annualised Savings
 Energy Conservation                                       (Rs. lakhs)
 
 1. Replacement of old Pumps & Centri 
 cleaners/Pulper/Pulper Pumps in Paper Machine I             26.30
 
 2. Installation of mechanised unloading system in 
 place of manual unloading, at the Chipper House 
 thereby increasing throughput and reducing
 Kwh/tonne of chips produced                                  8.10
 
 3. Effective utilisation of winder pulper leading 
 to reduction in the running hours of Paper
 Machine IV Reel Pulper                                      25.00
 
 4. Replacement of old Vacuum Pumps in Paper Machine III      9.40
 
 5. Change in process requirements and improvements:         10.00
 
 a) Couch Pit Agitator and exhaust fan start and stop 
 through timer in Paper Machine IV
 
 b) Cleaning of Air Compressors/Air Dryers in Paper 
 Machine IV
 
 c) Using L.P. Back water instead of H.P. Back water 
 in Pulp Mill W.H.D.T.
 
 6. Replacement of old Pump in Pulp Mill 
 (Hypo-ll L.P. Back Water)                                   6.50
 
 7. Replacement of old energy inefficient Pumps in the 
 stock preparation area.                                     7.00
 
 8. Miscellaneous activities                                10.70
 
 Total                                                     103.00
 
 FORM B
 (Form for disclosure of particulars with respect to technology
 absorption)
 
 RESEARCH AND DEVELOPMENT (R&D)
 
 1. Specific areas in which R&D carried out by the Company
 
 - Use of high refractive index fillers;
 
 - Use of dual polymer retention system;
 
 - Introduction of engineered clays in premium products;
 
 - Usage of speciality coating binders;
 
 - Development of cigarette board for international customers;
 
 - Controlling effluent into the effluent treatment plant;
 
 - Using better hardwood species for better pulp 'strength;
 
 - Development of 38 site specific clones through genotype x environment
 interaction studies;
 
 - Development of intra and inter specific hybrids through controlled
 pollination between 'Bhadrachalam' clones of Eucalyptus and other
 Eucalyptus species;
 
 - Development of disease resistant clones;
 
 - Successful control of termite damage to Eucalyptus plantations.
 
 2. Benefits derived as a result of the above 
 
 - Substitution of fiber, and higher capacity levels;
 
 - Improved fiber and filler retention leading to increased productivity
 and reduced effluent load;
 
 - Superior printability and enhanced sheet/print gloss;
 
 - Better graphic reproduction, better rotogravure printability;
 
 - Higher strength pulp;
 
 - Better survival and growth of clonal plantations leading to increase
 in productivity of wood biomass and higher returns to farmers/growers.
 High yielding clones suitable for refractory sites/alkaline soils have
 been identified. Productivity of 'Bhadrachalam' clones is 3 to 5 times
 higher in , comparison to normal seed source plantations;
 
 - The carbon sequestered from Farm Forestry clonal plantations of the
 company is 27,000 tonnes, approximately. This activity is invaluable
 for protection and conservation of environment.
 
 3. Future plan of action      
 
 - Introducing speciality coating additives for improving printability;
 
 - Setting up new pulp mill for generating Elemental Chlorine Free pulp
 with higher brightness and strength;
 
 - Food packaging boards (Ovenable boards);
 
 - Continued enhancing of environment quality;
 
 - Development of compatible paper for ink-jet, laser/digital printing;
 
 - Efforts towards identifying superior and high yielding clones;
 
 - Efforts towards developing bamboo plantations;
 
 - Continue research on genetic improvement of Eucalyptus, Casuarina,
 Subabul, Bamboo and other pulpwood tree species.
 
 4. Expenditure on R&D
 
 (a) Capital  -  The R & D Unit connected with process and product 
                 technology is integrated with the Mill and no separate 
                 capital expenditure was incurred.
                 Capital expenditure incurred on plantations related
                 research activities was Rs. 8.62 lakhs.
 
 (b) Recurring - Rs. 2.75 lakhs
 
 (c) Total     - Rs.11.37 lakhs
 
 (d) Total R&D Expenditure as % of total turnover:
 
 - gross turnover             -   0.02%
 - net turnover               -   0.02%
 
 TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION
 
 1. Efforts, in brief, made towards technology absorption, adaptation
 and innovation
 
 - Installation of combi-blade coater on Paper Machine I
 
 - Installation of new drive system for Paper Machine I
 
 - Adaptation of Distributed Control System for Paper Machine I
 
 - Installation of new ESP (electrostatic precipitator)
 
 - Continuous training of human resources
 
 - Improvised low cost mist chambers (polypropagators) installed
 
 - Adoption of environment friendly biological method of termite control
 for Eucalyptus plantations.
 
 2. Benefits derived as a result of the above efforts, e.g. product
 improvement, cost reduction, product development, import substitution,
 etc.
 
 Product Improvement
 
 - New Distributed Control System enables tight control of quality and
 improved productivity
 
 - Capability of producing LWC boards on Paper Machine I
 
 - Improved aesthetics of the board
 
 - Improved package of practices for clonal plant production leading to
 better quality of plants.
 
 Cost Reduction
 
 - Reduced dependence on imported pulp
 
 - Reduced energy consumption
 
 - Increased fiber and filler retentions
 
 - Final success percentage of Clonal Plant production through mist
 chamber routes enhanced from 62 to 71 % leading to reduction in cost of
 production per plant.  
 
 Product Development
 
 - Blister compatible recycled and virgin fiber boards
 
 - Barrier coated boards
 
 - Saphire graphic (SBS) with superior brightness and whiteness levels
 
 - Coated liquid packaging board
 
 - Writing and printing paper with 100% recycled fiber import Substitution
 
 - New products introduced by the Company contributes to reduced imports
 by the customers.
 
 3. Imported Technology
 
 (a) Technology imported - nil
 
 (b) Year of import - not applicable
 
 (c) Has technology been fully absorbed? - not applicable
 
 (d) If not fully absorbed, areas where this has not taken place,
 reasons therefor and future plans of action - not applicable.
 
                                                On behalf of the Board
 
                                      P. Dhobale       Managing Director
 Kolkata, 18th May, 2001              P.K.Talwar       Director-Finance
 
 
 
સ્તોત્ર: રેલીગેર ટેકનોવા


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