Vadilal Industries Limited
Vadilal Industries Limited
Vadilal Industries Limited
DIRECTOR'S REPORT
To,
The Members,
VADILAL INDUSTRIES LIMITED
Ahmedabad.
Depreciation and
Financial Expenses 2076.07 1434.95
Financial
Expenses (Net) 631.90 1196.87 749.22 1232.44
- Deferred Tax
charge/(release) (28.49) 72.00
- (Short) / Excess
Provision of Tax /
Deferred Tax of
earlier years (Net) (5.47)
(10.24)
Amount available
for appropriation 861.45 392.19
Appropriation:-
DIVIDEND:
ADDITIONAL DISCLOSURES:
The Company has always made continuous efforts to improve the process
of
manufacturing and to achieve quality and efficiency in each of
its
operations. This is evident from the award of ISO 9001:2000 to the
Company
conferred upon by Nemko AS, Certification Department, towards
Quality
Management System for its Processed Food Division situated at
Dharampur,
Dist. Valsad, Gujarat. The Company has also received award of
ISO
22000:2005 from Nemko AS, Certification Department, towards Food
Safety
Management System for the said Processed Food Division. The Company
has
already been awarded Two Star Export House Status by Joint Director
General
of Foreign Trade, Ministry of Commerce and Industry for export of
Processed
Foods Products.
The Company has received, for 2 years in a row i.e. in the year 2008
&
2009, 7 awards in both the years in the Great Indian Ice-Cream
Contest
organised by Indian Dairy Association (IDA).
FINANCE:
During the year under review, the Company has availed part of
additional
Term Loans sanctioned by Bank of Baroda, State Bank of India and Exim
Bank
towards part financing the expansion-cum-modernization of its
existing
manufacturing units. During the year under review, Rupee Term Loan
as
availed by the Company from BOB and SBI have been converted into
Foreign
Currency Loan (FCNRB).
The Company has repaid Working Capital Demand Loan to IDBI Bank Ltd.
and
the same has been renewed towards part of total Working Capital
Facilities.
The Company has also availed for the said purpose Working Capital
Demand
Loan of from Exim Bank. The Company has also availed the enhanced
Working
Capital Facilities from IDBI Bank Ltd., a Consortium Bank. The Company
has
also fully repaid the Working Capital facilities of Rs. 400 lacs
availed
from South Indian Bank Ltd. (SIB), a Consortium Bank, for which, the
charge
has been duly satisfied by way of modification.
The Company has duly repaid during the year under review the
unsecured
Short Term Loan availed by the Company last year from Development
Credit
Bank Ltd. (DCB). The Company has again received the unsecured Short
Term
Loan from DCB during the year under review and partly repaid to DCB.
The
Company has also availed Buyers' Credit Facility from IDBI Bank Ltd.
FIXED DEPOSITS:
SUBSIDIARY COMPANY:
CORPORATE GOVERNANCE:
RESPONSIBILITY STATEMENT:
c) that they have 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 the Company and
for
preventing and detecting fraud and other irregularities;
d) that they have prepared the Annual Accounts on a going concern
basis.
Vadilal Industries Limited 16
INSURANCE:
PARTICULARS OF EMPLOYEES:
AUDITORS:
2. Advance Income Tax which remain outstanding for a period of more than
6
months from the date it became payable, has been subsequently paid by
the
Company.
3. The company has not paid sales tax overdue for more than six months
due
to pending litigation / legal cases.
ACKNOWLEDGEMENT:
The Directors place on record the appreciation and gratitude for the
co-
operation and assistance extended by various departments of the
Union
Government, State Government, Bankers and Financial Institutions.
The
Directors also place on record their appreciation of dedicated and
sincere
services of the employees of the Company at all levels.
ANNEXURE A
a) Ice-cream Division
Like 2008, this year too VADILAL topped winners list by receiving 7
awards
After 2008, Vadilal has once again been honoured with 7 prestigious
awards
at THE GREAT INDIAN ICECREAM CONTEST - 2009 organised by INDIAN DAIRY
ASSOCIATION AND DANISCO. THE GREAT INDIAN ICE-CREAM CONTEST is a
national
competition aims at finding the best ice-creams of the country in
each
class and honour them with the recognition they deserve. In THE
GREAT
INDIAN ICE-CREAM CONTEST - 2009, in all 184 entries participated. Each
ice-
cream judged by panel of 25 judges on different parameters like
appearance,
flavour, texture and quality. All the recommendations and decisions
were
based on blind tasting, all the products were coded and company's
identity
was not revealed. Vadilal received total 7 awards bifurcated in - 2 best
in
the class - 2 gold medals - 1 silver medal and 2 bronze medals.
c) Forex Division
2) FUTURE STRATEGY
a) Ice-cream Division
Domestic Market :
The year 2009-10 was one more successful year for the company's
processed
food division - domestic. The division has initiated its operation in
new
territories like Uttar Pradesh & Haryana. In the same year division
has
introduced new products like Frozen Lilva Kachori & Patra. The division
is
also keen to establish itself well in territories like Delhi, Orissa
&
Bihar in the next year.
Your Company has earned the Gross Profit of Rs. 2076.07 lacs
before
Depreciation and Financial Expenses during the year ended on 31st
March,
2010 as compared to Rs. 1434.95 lacs earned during the previous year
ended
on 31st March, 2009.
The Company has earned the Net Profit of Rs. 575.17 lacs during the
year
ended on 31st March, 2010 after providing Financial Expenses
and
Depreciation and other adjustments and after making Provision for
Current
Tax of Rs. 327.00 lacs, Deferred Tax release of Rs. 28.49 lacs and
other
adjustments as compared to Net Profit of Rs. 108.68 lacs earned during
the
previous year ended on 31st March, 2009.
Total:
19168.77
Processed Foods
133.43
Others
5.08
Total:
1632.52
149.20
765.85
Ice-cream
8227.46
Processed Foods
5179.28
Others
149.55
a) Ice-cream Division
The Company has always made continuous efforts to improve the process
of
manufacturing and to achieve quality and efficiency in each of
its
operations. This is evident from the award of ISO 9001:2000 to the
Company
conferred upon by Nemko AS, Certification Department, towards
Quality
Management System for its Processed Food Division situated at
Dharampur,
Dist. Valsad, Gujarat. The Company has also received award of
ISO
22000:2005 from Nemko AS, Certification Department, towards Food
Safety
Management System for the said Processed Food Division. The Company
has
already been awarded Two Star Export House Status by Joint Director
General
of Foreign Trade, Ministry of Commerce and Industry for export of
Processed
Foods Products.
7) HUMAN RESOURCES
8) CAUTIONARY STATEMENT
ANNEXURE B
A) CONSERVATION OF ENERGY
Ice-cream Division :
Ice-cream Division :
- The Company is planning to increase the batch size of our mix plant
to
reduce the working hours and save energy.
- As the Company has very high product matrices, it has ordered several
new
continuous ice cream freezers, which will help the Company to increase
the
productivity.
Ice-cream Division
- The measures listed in above (a) and (b) would result in energy
saving,
increase in production rate, improvement in quality and avoiding
in
production break-down due to power-off.
- The Company has totally shifted to wood fired boiler from earlier
oil
fired boiler to minimize the use of petroleum products. One
Effluent
Treatment Plant (ETP) has been commissioned for the treatment of
Effluent
before discharge.
- The Company has installed storage tanks and Glucose tanks with
loading
and un-loading facility for a smooth and hygiene handling of raw-
material.
The Company has not imported any technology, hence the questionnaire is
not
applicable.
As against Foreign Exchange Outgo of Rs. 226.20 lacs for the previous
year,
the Outgo during the year under review was Rs. 662.84 lacs.
ANNEXURE - FORM A
1) Electricity
a) Purchased -
b) Own Generation -
2) Coal
3) Furnace Oil/LDO
Qty. Nil
Nil
Total Cost Nil
Nil
Rate/unit Nil
Nil
(B) Consumption
per unit of production. Unit of Year ended Year
ended
Measurement on 31-3-2010 on 31-3-
2009
Ice-cream
1) Electricity
a) Purchased - 1589470
1361400
b) Own Generation -
2) Coal
4) Other/internal generation
Qty. Nil
Nil
Total Cost Nil
Nil
Rate/unit Nil
Nil
(B) Consumption
per unit of production. Unit of Year ended Year
ended
Measurement on 31-3-2010 on 31-3-
2009
Ice-cream
a) Purchased -
b) Own Generation -
2) Coal
3) Furnace Oil/LDO
4) Other/internal generation
Qty. Nil
Nil
Total Cost Nil
Nil
Rate/unit Nil
Nil
(B) Consumption
per unit of production. Unit of Year ended Year
ended
Measurement on 31-3-2010 on 31-3-
2009
Ice-cream
Electricity : Units 0.72
0.73
Diesel for steam generation : Liters Nil
Nil
1) Electricity
a) Purchased -
i) Units 3749670
3521955
Total Amount (Rs.) 2,35,33,061.00
2,16,35,405.00
Rate/Unit (Rs.) 6.28
6.14
b) Own Generation -
Units 11344
19632
Units per litre of diesel 1.41
1.54
Cost per unit (Ltrs.) (Rs.) 25.95
24.95
2) Coal
3) Furnace Oil/LDO
4) Other/internal generation
Qty. Nil
Nil
Total Cost Nil
Nil
Rate/unit Nil
Nil
(B) Consumption
per unit of production. Unit of Year ended Year
ended
Measurement on 31-3-2010 on 31-3-
2009
Processed Food