Annual Accounts for the Year 2017-18
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{ZXoeH$ _ÊS>b Board of Directors AÜ`j Ed§ à~ÝY {ZXoeH$ Chairman & Managing Director lr gw[a§Xa nmb ~§gb Shri S.P. Bansal {ZXoeH$JU Directors lr amOrd H$mÊS>nmb Shri Rajeev Kandpal lr_Vr àdrU Jwám Smt. Parveen Gupta lr gË`oÝÐ Hw$_ma Shri Satyendra Kumar ñdV§Ì {ZXoeH$ Indenpendent Director lr gVre garZ Shri Satish Sareen H$ånZr g{Md Company Secretary Hw$. gw_moZm _Oy_Xma Ms. Sumona Majumdar boIm-narjH$ Auditors _¡gg© EM.gr. ~moWam EÊS> Egmo{gEQ²>g M/s. H.C. Bothra & Associates, MmQ>©S>© boImH$ma, O`nwa Chartered Accountants, Jaipur ~¢H$g© Bankers ñQ>oQ> ~¢H$ Am°\$ BpÊS>`m State Bank of India n§OrH¥$V H$m`m©b` Registered Office Or-229, grVmnwam Am¡Úmo{JH$ joÌ, G-229, Sitapura Industrial Area, Q>m|H$ amo‹S>, Tonk Road, O`nwa-302022 Jaipur-302022 1 AZwH«$_{UH$m Contents AÜ`jr` ^mfU 5 Chairman's Speech {ZXoeH$m| H$m à{VdoXZ 9 Directors' Report H$m°nm}aoQ> JdZ]g à_mU nÌ 69 Corporate Governance Certificate g_o{H$V {dÎmr` {ddaU na {Z`§ÌH$ Ed§ _hmboIm 71 Comments of the Comptroller & narjH$ H$s {Q>ßn{U`m± Auditor General on Consolidated Financail Statements g_o{H$V {dÎmr` {ddaUm| na ñdV§Ì boIm 73 Independent Auditors Report on narjH$m| H$m à{VdoXZ Consolidated Financial Statements g_o{H$V {dÎmr` pñW{V {ddaU 110 Consolidated Balance Sheet g_o{H$V bm^ Ed§ hm{Z H$m {ddaU 112 Consolidated Statement of Profit & Loss g_o{H$V {Q>ßn{U`m± 116 Consolidated Notes EH$b {dÎmr` {ddaU na {Z`§ÌH$ Ed§ _hmboIm 169 Comments of the Comptroller & narjH$ H$s {Q>ßn{U`m± Auditor General on Standalone Finacail Statements ñdV§Ì boIm narjH$m| H$m à{VdoXZ> 171 Independent Auditors' Report {dÎmr` pñW{V {ddaU 196 Balance Sheet bm^ Ed§ hm{Z H$m {ddaU 198 Statement of Profit & Loss {Q>ßn{U`m± 202 Notes gm±^a gmëQ²>g {b{_Q>oS> H$m dm{f©H$ à{VdoXZ 253 Annual Report of Sambhar (ghm`H$ H$ånZr) Salts Limited (Subsidiary Company) 2 H$mnm}aoQ> CX²Xoí` CORPORATE OBJECTIVES ÑpîQ> VISION * Z_H$ Ed§ ~«mo_rZ CÚmoJ Ed§ g_~Õ CËnmX _| àYmZ * Be a dominating player in salt and bromine industry & allied products. CËnmXZ hmoZm& bú` MISSION * AÀN>r {H$ñ_ Ho$ _yë` d{Y©V CËnmXm| H$m * To produce/supply good quality of salt & value added products. CËnmXZ/Amny{V© H$aZm& * Z_H$ Ed§ g_~Õ CËnmXm| Ho$ CËnmXZ Ho$ * T o a c c e l e r a t e t h e p r o c e s s o f modernization/mechanization of `ÝÌrH$aU/AmYw{ZH$sH$aU H$s à{H«$`m H$mo J{V XoZm& manufacture of salt and allied products. * gmd©O{ZH$ {dVaU àUmbr Ûmam H$_Omoa V~Ho$ H$mo * Make available quality iodized salt to JwUdÎmm nyU© Am`moS>rZ Z_H$ CnbãY H$amZm& weaker sections through public distribution system. * òmoVm| H$m à^mdr Cn`moJ H$aZm& * Efficient utilization of resource. * {hÝXþñVmZ gmëQ²>g {b{_Q>oS>/gm±^a gmëQ²>g {b{_Q>oS> * Increase the market share of HSL/SSL Ho$ ~mOma A§e _| d¥{Õ H$aZm& 3 AÜ`jr` ^mfU Chairman Speech 59dt dm{f©H$ gmYmaU g^m _| At the 59th Annual General Meeting _{hbmAm| Ed§ gÁOZm|, Ladies and Gentlemen, _¢ AmnH$s H$ånZr H$s 59dt dm{f©H$ gmYmaU g^m _| I welcome you all to the 59th Annual General AmnH$m ñdmJV H$aVm hÿ±& AmnH$s H$ånZr Ho$ H$m`m] na {ZXoeH$m| Meeting of your company. The Directors’ Report H$m à{VdoXZ, Am¡a {dËVr` df© 2017-18 Ho$ A§Ho${jV boIm on the working of your company and the Ed§ CZ na boIm narjH$m| H$m à{VdoXZ AmnHo$ g_j h¡, AmnH$s Audited Accounts for financial year 2017-18 and AZw_{V go BZH$mo n{R>V _mZ boVm hÿ±& also the Auditors’ Report thereon have been with you. With your permission, take them as read. _¢ CnbpãY`m|, ~mYmAm| Ed§ ^mdr H$m`m] Ho$ gå~ÝY _| I would like to underline a few salient features _w»` {d{eîQ>VmAm| na ~b XoZm Mmhÿ±Jm… regarding the achievements, constraints and tasks ahead: 1. ~mOma Ñí` {dYmZ… 1. Market scenario: AmnH$s H$ånZr Ûmam XmoZm| ~«mo_rZ g§`§Ìm| Ho$ {bE H$ƒm Your company has continued its efforts for _mb CnbãY H$amZo Ed§ Z_H$ Ho$ CËnmXZ H$mo ~‹T>mZo Ho$ development of new and abandoned salt pans {bE ~oH$ma n‹S>o VWm Z`o n¡Zm| Ho$ {dH$mg Ho$ {b`o {ZaÝVa for enhancement of salt production and generate à`mgaV ahr& ImamKmo‹S>m _| _¡½Zr{e`_ ŠbmoamBS> VWm the raw material for running our two bromine _ÊS>r BH$mB© _| N>moQ>o ñVa na I{ZO Z_H$ H$m CËnmXZ ^r plants. The production of Magnesium Chloride àmaå^ hmo J`m& AmnH$s H$ånZr df© 2017-18 _| 309 at Kharaghoda and small level production of rock salt at Mandi unit has also commenced. _¡. Q>Z ~«mo_rZ, 3650 _¡. Q>Z _¡½Zr{e`_ ŠbmoamBS> 5 31848 _¡. Q>Z H$ƒm Z_H$ Ed§ 46 _¡. Q>Z I{ZO Z_H$ Your company was able to sale 309 MT of H$m {dH«$` H$a gH$s& Bromine 3,650 MT of Magnesium Chloride 31,848 MT of raw salt and 46 MT of Rock salt in FY 2017-18. 2. {dÎmr` {d{eîQ>VmE§… 2. Financial Highlights: JV df© Ho$ ã`mO H$mo à^m[aV H$aZo H$s gaH$mar Zr{V _| Due to change in Government’s policy on n[adV©Z Ho$ H$maU AmnH$s H$ånZr H$mo ~«mo_rZ Ho$ CËnmXZ interest charging in previous years, your _| d¥{Õ Ed§ _¡½Zr{e`_ ŠbmoamBS> H$m CËnmXZ àmaå^ hmoZo company have received benefit other than na A{V[aŠV bm^ àmá hþAm& H$ånZr H$m bm^ JV df© Ho$ enhanced production of bromine and commencement of production of Magnesium 40.42 bmI H$s VwbZm _| ~‹T>H$a 183.55 bmI ahm& Chloride, company’s profit has increased to Rs. 183.55 df© 2017-18 Ho$ Xm¡amZ JV df© Ho$ 595.66 H$s Hw$b Lakhs in comparison to previous year profit of {~H«$s H$mo ~‹T>mH$a 692.72 bmI H$a gH$s& Rs 40.42 Lakhs. During the year 2017-18, turnover of the company has increased to Rs. 692.72 Lakhs from Rs 595.66 in the previous year. 3. {Z`m©V… 3. Exports: {dÎmr` df© Ho$ Xm¡amZ H$moB© {Z`m©V Zht {H$`m J`m& There was no export during the financial year. 4. Am¡Úmo{JH$ gå~ÝY… 4. Industrial Relations: {dËVr` ~mYmAm| Ho$ ~mdOyX AmnH$s H$ånZr _| Am¡Úmo{JH$ In spite of financial constraints, industrial g§~§Y gm¡hmЩnyU© aho& relations in your company remained cordial. 5. àgma J{V{d{Y`m§… 5. Expansion activities: AmnH$s H$ånZr H$s _¡½Zr{e`_ ŠbmoamBS> H$m CËnmXZ Your company is planning to expand the ~‹T>mZo VWm I{ZO Z_H$ H$m CËnmXZ H$aZo H$s `moOZm h¡& production of Magnesium Chloride and commence the production of rock salt. 6. _hËdnyU© gyÌnmV Ed§ ^mdr Ñ{îQ>H$moU… 6. Significant initiatives and future outlook: H$ånZr H$s à_wI Ed§ J¡a à_wI J{V{d{Y`m| _| gwYma Ho$ The following initiatives have been taken to {bE {ZåZ H$X_ CR>mE JE…- improve company’s core and non-core activities: (A) Z_H$ H$m CËnmXZ … (a) Salt Production H$ånZr Zo Z_H$ Ho$ CËnmXZ Ho$ {bE AZNw>E d¥hX Company is making efforts for utilizing the _yb^yV T>m±Mo H$s Cn`moJ Ho$ ^r à`mg H$a ahr h¡, untapped huge infrastructure for production of {Oggo XmoZm| ~«mo_rZ g§`§Ìm| H$mo A{YH$V_ j_Vm _| salt, which shall ensure sufficient quantity of MbmZo Ho$ {bE n`m©á _mÌm _| {~Q>Z© gw{ZpíMV bittern for running of both Bromine plants at optimum capacity. hmoJm& (~) ~«mo_rZ g§`§Ì bJmZo Ho$ {bE `moOZm… (b) Planning for Installation of Bromine Plants H$ånZr Ho$ 900 _¡. Q>Z à{V df© j_Vm Ho$ Xmo g§`§Ì Company is having two plants operational with Mmby h¢ VWm H$ånZr H$s g§`§Ìm| H$mo AÚVZ H$a production capacity of 900 MT per annum and CËnmXZ j_Vm _o d¥{Õ H$s `moOZm h¡& company is planning to update and enhance the production capacity of plants 6 (g) 1 bmI Q>Z à{Vdf© H$s Z_H$ n[aîH$aU embm H$s (c) Installation of Salt Refinery of 1 lakh TPA: ñWmnZm… 1,00,000 _¡. Q>Z H$s Z_H$ YwbmB© gh The installation of Salt Washery-cum Refinery of n[aîH$aU embm H$s ñWmnZm H$m H$m`© {ZînmXZ Ho$ 100,000 MT is under execution and efforts are on VhV h¡ VWm erK« g_mnZ Ho$ {bE à`mg Omar h¡& for early completion. (X) _¡½Zr{e`_ ŠbmoamBS> Ho$ CËnmXZ H$s j_Vm _| (d) Expansion of capacity of production of d¥{Õ… Magnesium Chloride: amOñd àm{á Ho$ Adga H$mo XoIVo hþE S>r ~«mo_rZoQ>oS> Having regard to the scope of revenue {~Q>Z© Ho$ CnMma Ho$ {bE H$ånZr H$s _¡½Zr{e`_ generation from treatment of De-Brominated ŠbmoamBS> Ho$ CËnmXZ _| d¥{Õ Ho$ {bE A{V[aŠV Bittern your company is planning to install g§`§Ì bJmZo H$s `moOZm h¡& additional plants to enhance the production of Magnesium Chloride.