Mar 31, 2015
Dear Shareholders,
The Directors have pleasure in presenting the 30th Annual Report
together with the Audited Statement of Accounts of Agio Paper &
Industries Limited for the year ended 31st March, 2015.
1. SUMMARISED FINANCIAL HIGHLIGHTS
(Rs. in Lacs)
Current Year Previous Year
Gross Turnover and other receipts 474.75 70.42
Profit / (Loss) before Interest
and Depreciation 372.48 (53.47)
Less: Interest - 495.66
Profit/(Loss) Before Depreciation 372.48 (549.08)
Less: Depreciation 28.86 27.57
Profit /(Loss) Before Tax 343.62 (576.65)
Less: Provision for taxation - -
Profit /(Loss) After Tax 343.62 (576.65)
Balance brought forward from
previous year (2699.81) (2123.16)
Balance carried to Balance Sheet (2356.18) (2699.81)
2. BUSINESS PERFORMANCE
The resumption of productivity depends upon a host of factors and the
main problem still revolves around the restrictions imposed by the
Central Pollution Control Board. However, we remain optimistic about
overcoming these hurdles in the near future.
3. DIVIDEND
In accordance with compromise settlement arrived with the lender bank
during the year the company has written back interest accrued in
earlier years in the books of accounts. However, in absence of any
production activities no operational profit was generated for
recommendation of dividend for the financial year ended 31st March,
2015.
4. SHARE CAPITAL
The paid up Equity Share Capital as on March 31, 2015 was Rs.16.12
crores. During the year under review the company has not issued any
shares or any convertible instruments.
5. CREDIT FACILITIES
Before closure of our factory at Bilaspur the Allahabad Bank had
granted us certain credit facilities in connection with our projects
at factory site. Even after closure of factory the company was regular
in its commitments to the bank but due to adversities after a period
of time such adherence was not complied with which led the bank to
exercising its rights. But the company had always been in contact with
the bank to amicably arrive at a mutual settlement. The efforts
finally came to fruition since an amicable settlement was reached
which was formally communicated to the company by the bank vide its
letter dated 27th March, 2015 and which certainly is a giant step
towards in right direction.
6. ECONOMIC SCENARIO AND OUTLOOK
India is set to become the world''s fastest-growing major economy by
2016 ahead of China, the International Monetary Fund (IMF) said in its
recent latest forecast. India is expected to grow at 6.3 per cent in
2015, and 6.5 per cent in 2016 by when it is likely to cross China''s
projected growth rate, the IMF said in the latest update of its World
Economic Outlook.
The government, engineering an economic rebound with a slew of
reforms, has unveiled a new statistical method to calculate the
national income with a broader framework that turned up a pleasant
surprise: GDP in the past year 2013-14 grew 6.9 per cent instead of
the earlier 4.7 per cent.
The International Monetary Fund (IMF) and the World Bank in a joint
report have forecasted that India will register a growth of 6.4 per
cent in 2015, due to renewed confidence in the market brought about by
a series of economic reforms pursued by the government.
7. PAPER INDUSTRY OUTLOOK AND OPPORTUNITIES
There are about 700 - 800 paper mills (organized & unorganized sector)
in the country out of which 12 large units accounts for production
share of about 30% and balance units mostly comprising of medium
(Agro-based) and Small (waste paper based) paper mills with production
share of 70%. Wood based industry accounts for 35% of production while
waste paper and agri residue accounts for 44% & 21% respectively.
The paper industry in India has become more promising as the domestic
demand is on the rise. Increasing population and literacy rate, growth
in GDP, improvement in manufacturing sector and lifestyle of
individuals are expected to account for the growth in the paper
industry of India.
According to "India Paper Industry Forecast & Opportunities, 2017" the
paper industry in India is expected to grow at the CAGR of around 9.6%
during 2012-2017, which will make the revenues of paper industry of
India to reach up to USD 11.83 Billion by 2017.
8. CORPORATE SOCIAL RESPONSIBILITY
Even though the provisions of Companies Act, 2013 regarding Corporate
Social Responsibility are not attracted to the company yet the Company
has been, over the years, pursuing as part of its corporate
philosophy, an unwritten CSR policy voluntarily which goes much beyond
mere philanthropic gestures and integrates interest, welfare and
aspirations of the community with those of the Company itself in an
environment of partnership for inclusive development.
9. HUMAN RESOURCES
The well disciplined workforce which has served the company for three
decades lies at the very foundation of the company''s major
achievements and shall well continue for the years to come. The
management has always carried out systematic appraisal of performance
and imparted training at periodic intervals. The company has always
recognized talent and has judiciously followed the principle of
rewarding performance.
10. BUSINESS RISK MANAGEMENT
Although the company has long been following the principle of risk
minimization as is the norm in every industry, it has now become a
compulsion.
Therefore, in accordance with clause 49 of the listing agreement the
Board members were informed about risk assessment and minimization
procedures after which the Board formally adopted steps for framing,
implementing and monitoring the risk management plan for the company.
The main objective of this policy is to ensure sustainable business
growth with stability and to promote a pro-active approach in
reporting, evaluating and resolving risks associated with the
business. In order to achieve the key objective, the policy
establishes a structured and disciplined approach to Risk Management,
in order to guide decisions on risk related issues.
In today''s challenging and competitive environment, strategies for
mitigating inherent risks in accomplishing the growth plans of the
Company are imperative. The common risks inter alia are: Regulations,
competition, Business risk, Technology obsolescence, Investments,
retention of talent and expansion of facilities.
Business risk, inter-alia, further includes financial risk, political
risk, fidelity risk, legal risk.
As a matter of policy, these risks are assessed and steps as
appropriate are taken to mitigate the same.
11. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company has adequate system of internal control to safeguard and
protect from loss, unauthorized use or disposition of its assets. All
the transactions are properly authorized, recorded and reported to the
Management. The Company is following all the applicable Accounting
Standards for properly maintaining the books of accounts and reporting
financial statements. The internal auditor of the company checks and
verifies the internal control and monitors them in accordance with
policy adopted by the company. Even through this non-production period
the Company continues to ensure proper and adequate systems and
procedures commensurate with its size and nature of its business.
12. VIGIL MECHANISM / WHISTLE BLOWER POLICY
In order to ensure that the activities of the Company and its
employees are conducted in a fair and transparent manner by adoption
of highest standards of professionalism, honesty, integrity and
ethical behaviour the company has adopted a vigil mechanism policy.
This policy is explained in corporate governance report and also
posted on the website of company.
13. DIRECTORS & COMMITTEES
At the 29th Annual General Meeting of the company held on 24th
September, 2014 the company had appointed the existing independent
directors Shri Kamal Kumar Khetawat (DIN 00438830) and Shri Sheo
Shankar Joshi (DIN 01180895) as independent directors under the
companies Act, 2013 for 5 consecutive years for a term upto the
conclusion of the 34th Annual General Meeting.
All independent directors have given declaration that they meet the
criteria of independence as laid down under section 149(6) of the
Companies Act, 2013 and clause 49 of listing agreement.
At a board meeting held on 26.09.2014 the board had appointed Smt.
Sudha Dhanuka (DIN 06417787) as an Additional Director in the category
of Independent Director. At the same Board meeting the board also
noted and condoled the passing away of Executive Director Shri
Davinder Kumar (DIN 00289363) on 7th September, 2014.
In accordance with the provisions of Companies Act,2013 Shri Ankit
Jalan (DIN: 02577501), Executive Director retires by rotation and
being eligible offers himself for re-appointment.
13.1 BOARD EVALUATION
Pursuant to the provisions of companies Act,2013 and clause 49 of the
Listing Agreement, the Board has carried out annual performance
evaluation of its own performance, the directors individually as well
the evaluation of the working of its Audit, Nomination & Remuneration
and Stakeholder committee. The manner in which the evaluation has been
carried out has been explained in Corporate Governance Report.
13.2 REMUNERATION POLICY
The Board has, on the recommendation of the Nomination & Remuneration
committee framed a policy for selection and appointment of Directors,
Senior Management and their remuneration. The Remuneration Policy is
stated in the Corporate Governance Report.
13.3 MEETINGS
During the year Seven Board Meetings and one independent directors''
meeting was held. The Details of which are given in Corporate
Governance Report. The provisions of Companies Act,2013 and listing
agreement were adhered to while considering the time gap between two
meetings.
13.4 AUDIT COMMITTEE
The company is having an audit committee comprising of the following
directors:
Name Status Category
Shri Kamal Kumar Khetawat Chairman Non Executive &
Independent Director
Shri Ankit Jalan Member Executive Director
Shri Sheo Shankar Joshi Member Non Executive &
Independent Director
13.5 NOMINATION AND REMUNERATION COMMITTEE
The company is having a Nomination and Remuneration Committee
comprising of the following directors:
Name Status Category
Shri Kamal Kumar Khetawat Chairman Non Executive &
Independent Director
Shri Sheo Shankar Joshi Member Non Executive &
Independent Director
Smt Sudha Dhanuka Member Additional Director -
Independent Category
14. DIRECTORS'' RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the
information and explanations obtained by them, your Directors make the
following statements in terms of Section 134(3)(c) of the Companies
Act, 2013:
a) that in the preparation of the annual financial statements for the
year ended March 31, 2015, the applicable accounting standards have
been followed along with proper explanation relating to material
departures, if any;
b) that such accounting policies as mentioned in Notes to the
Financial Statements have been selected and applied consistently and
judgement and estimates have been made that are reasonable and prudent
so as to give a true and fair view of the state of affairs of the
Company as at March 31, 2015 and of the profit of the Company for the
year ended on that date;
c) that proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of
the Companies Act, 2013 for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
d) that the annual financial statements have been prepared on a going
concern basis;
e) that proper internal financial controls were in place and that the
financial controls were adequate and were operating effectively.
f) that systems to ensure compliance with the provisions of all
applicable laws were in place and were adequate and operating
effectively.
15. RELATED PARTY TRANSACTIONS
There were no contracts or arrangements entered into by the company in
accordance with provisions of section 188 of the Companies Act, 2013.
However, there were material related party transactions in terms of
clause 49 of the listing agreement. All material related party
transactions that were entered into during the financial year were on
an arm''s length basis and were in the ordinary course of business.
There are no materially significant related party transactions made by
the Company with Promoters, Directors, Key Managerial Personnel or
other designated persons which may have a potential conflict with the
interest of the Company at large.
All Related Party Transactions are placed before the Audit Committee
as also the Board for approval.
The policy on Related Party Transactions as approved by the Board is
uploaded on the Company''s website. None of the Directors has any
pecuniary relationships or transactions vis-a-vis the Company.
16. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no significant material orders passed by the Regulators /
Courts which would impact the going concern status of the Company and
its future operations.
17. AUDITORS
17.1 STATUTORY AUDITORS
M/s Singhi & Co (Firm Registration No.302049E) ,Chartered Accountants
have been appointed as statutory auditors of the company at the last
Annual General Meeting held on 24.09.2014 for a period of three years
subject to ratification by members at every consequent Annual General
Meeting. Therefore, ratification of appointment of Statutory Auditors
is being sought from the members of the Company at the ensuing AGM.
17.2 SECRETARIAL AUDITORS
Pursuant to the provisions of Section 204 of the Companies Act, 2013
and The Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Company has appointed Subhasish Bosu & Co.
(CP No.:11469, FCS: 7277),Company Secretaries to undertake the
secretarial audit of the company. The Secretarial Audit Report is
annexed herewith as ''Annexure 1''.
17.3 INTERNAL AUDITORS
M/S Ashish K Gupta & Associates, Chartered Accountants performs the
duties of internal auditors of the company and their report is
reviewed by the audit committee from time to time.
18. CORPORATE GOVERNANCE
As per Clause 49 of the Listing Agreement with the Stock Exchanges, a
separate section on corporate governance practices followed by the
Company, together with a certificate from the Company''s Secretarial
Auditor confirming compliance forms an integral part of this Report.
19. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information on conservation of energy, technology absorption and
foreign exchange earnings and outgo stipulated under Section 134(3)(m)
of the Companies Act, 2013 read with Rule, 8 of The Companies
(Accounts) Rules, 2014, is annexed herewith as "Annexure 2".
20. EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form
MGT 9 is annexed herewith as "Annexure 3".
21. PARTICULARS OF EMPLOYEES
The information required pursuant to Section 197 read with Rule, 5 of
The Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 in respect of employees of the Company is as follows:
The company has one Executive Director and due to financial
constraints being faced by the company he has forgone remuneration.
Further, no sitting fees has been paid to any director during the
year.
The particulars of the employees who are covered by the provisions
contained in Rule 5(2) and rule 5(3) of Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 are:
a) Employed throughout the year Nil
b) Employed for part of the year Nil
The remuneration paid to all Key management Personnel was in
accordance with remuneration policy adopted by the company.
22. IMPAIRMENT OF ASSETS & CAPITAL WORK-IN-PROGRESS
The paper plant was closed on 6th October, 2010 to ensure due
compliance of orders of the Central Pollution Control Board during
which the expansion unit was still under the installation stage. As a
result of the closure, the installation of the paper machine and the
integration of the power plant with the old and new machines could not
be carried out. In order to be effective as well as feasible both
needs to operate in unison but since circumstances has led to non
commissioning of the power plant and the new paper machine both of
them have been shown as work in progress in auditor''s report.
In compliance with Accounting Standard AS-28 relating to "Impairment
of Assets", the company has reviewed the carrying amount of its fixed
assets as at the end of the year. During the previous financial years
the valuation of the various assets of the company situated at our
mill site including the factory building and premises was carried out
by a registered valuer in connection with various financial facilities
granted by our banker. Although the report was submitted by the valuer
to the bank directly in accordance with his norms of appointment it is
significant to note that neither the bank has communicated any adverse
remarks on such assets nor have they expressed any concern regarding
the current state of such assets till date. Based on the strategic
plans and such valuation of the fixed assets of the company, no
impairment of assets is envisaged at the balance sheet date.
23. FINANCIAL VIABILITY OF COMPANY
As it has been pointed out in the statutory auditor''s report that
there has been complete erosion of net worth due to closure of our
mill. The company is exploring various avenues to infuse funds into
the company for repaying debts as well as revival of the company
24. CPCB RESTRICTIONS
As it has been pointed out in the secretarial auditor''s report the
factory still remains non operational due to restrictions imposed by
the Central Pollution Control Board. The management is pursuing active
steps to comply with norms in order to resume production activities.
25. ACKNOWLEDGEMENTS
The company has been very well supported from all quarters and
therefore your directors wish to place on record their sincere
appreciation for the support and co-operation received from Employees,
Dealers, Suppliers, Central and State Governments, Bankers and others
associated with the Company.
Your Directors wish to thank the banks, financial institutions,
shareholders and business associates for their continued support and
cooperation.
We look forward to receiving the continued patronage from all quarters
to become a better and stronger company.
26. CAUTIONARY STATEMENT
The statements contained in the Board''s Report and Management
Discussion and Analysis contain certain statements relating to the
future and therefore are forward looking within the meaning of
applicable securities, laws and regulations.
Various factors such as economic conditions, changes in government
regulations, tax regime, other statues, market forces and other
associated and incidental factors may however lead to variation in
actual results.
For and on behalf of the Board of Director
Kolkata ANKIT JALAN K K KHETAWAT
11th April, 2015 (Executive Director) (Director)
Mar 31, 2014
Dear Members
The Directors have pleasure in presenting the 29TH Annual Report of
the Company along with Audited Accounts of the Company for the year
ended 31st March, 2014.
SUMMARISED FINANCIAL HIGHLIGHTS (Rs. in Lacs)
Current Year Previous Year
Gross Turnover and other receipts 70.42 50.00
Profit / (Loss) before Interest and
Depreciation (53.47) (327.99)
Less: Interest 495.66 456.51
Profit/ (Loss) Before Depreciation (549.08) (784.50)
Less: Depreciation 27.57 27.11
Profit / (Loss) Before Tax (576.65) (812.21)
Less: Provision for taxation - -
Profit / (Loss) After Tax (576.65) (812.21)
Balance brought forward from previous year (2123.16) (1310.95)
Balance carried to Balance Sheet (2699.81) (2123.16)
BUSINESS PERFORMANCE
We have not been able to resume production activities yet despite the
best efforts undertaken by us. However, we remain very positive and
hopeful that the Central Pollution Control Board shall in the near
future permit us to re commence and build upon the good work of
manufacturing paper.
DIVIDEND
In absence of any production activities no profit was generated for
recommendation of dividend for the financial year ended 31st March,
2014.
CREDIT FACILITIES
Before closure of our factory at Bilaspur the Allahabad Bank had
granted us certain credit facilities in connection with our projects at
factory site. Although the company was making repayments to bank as per
its commitments certain payments had to be withheld due to certain
differences in figures with the bank. Inspite of exercising its rights
the company is in discussion with the secured creditor to expedite the
matter.
AUDITORS
The Statutory Auditors of the Company M/s Singhi & Co, Chartered
Accountants retire at the ensuing Annual General Meeting of the Company
have given their consent for appointment and have also confirmed that
their appointment, if made, would be within the limits as prescribed
under Section 141(3)(g) of the Companies Act, 2013.
The audit of the cost accounts of the Company for the year ended 31st
March 2014 is being carried out by our cost auditor M/s M.Pal &
Associates and after completion of the audit the cost audit report will
be submitted to the Central Government.
In accordance with notification issued by the Ministry of Corporate
Affairs dated 30th June, 2014 paper industry no longer falls under the
purview of cost audit. However, in case of any future requirement of
such audit the company shall ensure due compliance.
DIRECTORS
In accordance with the provisions of Companies Act,2013 and Articles of
Association of the company Shri Ankit Jalan ,Executive Director retires
by rotation at the conclusion of the ensuing twenty ninth annual
general meeting of the company and being eligible offers himself for
re-appointment.
As per the provision of Companies Act, 2013, Independent Directors are
required to be appointed for a term of 5 consecutive years and not be
liable to retire by rotation. In order to comply with provisions of the
Companies Act, 2013, the Board recommends for appointment of both the
following present Independent Directors not liable to retire by
rotation for a consecutive period of 5 years and seek approval by the
shareholders of the company at the next General Meeting.
1) Shri Sheo Shankar Joshi
2) Shri Kamal Kunar Khetawat
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement with the Stock
Exchanges, Management Discussion & Analysis, Corporate Governance
Report and Auditor''s Certificate regarding compliance of conditions
of Corporate Governance are made part of this Annual Report.
INTERNAL CONTROL SYSTEM
The Company has adequate system of internal controls and check and
balances to ensure that its assets are safeguarded and protected
against loss from unauthorized use. The existing set up of the internal
control system is commensurate with the size of the company''s
operations and nature of its business.
DIRECTRORS'' RESPONSIBILITY STATEMENT
Pursuant to the provision of Section 217 (2AA) of the Companies Act,
1956, with respect to Directors it is hereby confirmed that:
a) All the applicable Accounting Standards have been followed in the
preparation of the Annual Accounts and there is no material departure
from the same.
b) Accounting policies have been selected in consultation with the
statutory auditors and have been applied consistently in making
judgements and estimates that are reasonable and prudent so as to give
a true and fair view of the state of affairs of the company as at 31st
March, 2014.
c) Proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of Companies Act,
1956 for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities; and
d) That they have prepared the annual accounts on a going concern
basis.
INSURANCE
Your Company has taken adequate guard against the unforeseen and
accidents and all assets are adequately secured.
CORPORATE SOCIAL RESPONSIBILITY
The Company has been, over the years, pursuing as part of its corporate
philosophy, an unwritten CSR policy voluntarily which goes much beyond
mere philanthropic gestures and integrates interest, welfare and
aspirations of the community with those of the Company itself in an
environment of partnership for inclusive development.
POLLUTION CONTROL AND ENVIRONMENTAL PROTECTION
Paper Industry by nature is a hazardous industry. The Management had
taken during earlier years many developmental actions and made huge
investments towards that. In specific areas actions taken were:-
* Zero discharge of Black Liquor from the mill and installing another
filter press with full capacity
* Drastic deduction in Consumption of fresh water thereby reducing the
generation of effluent.
* The Effluent Treatment Plant has been strengthened by further
installation of flocculants tanks, Chemical dosing arrangement for
reducing the Effluent load and improves the effluent quality.
* Maximum use of mill back water in the plant by recycling.
* Effluent generation from Paper Machine and Waste Paper Pulp
processing is being used 100% after clarification.
* Effluent sludge is separated through 2 Nos. sludge press and used for
making board.
* Effluent water is treated in ETP and 100% used for irrigating tree
plantation, quenching ash and sprinkling on gardens, roads. There is no
discharge in River.
* Emission from boiler is controlled by Trema cyclone & in Power Plant
ESP has been installed which maintained emission standard
satisfactorily.
* Giving emphasis on green environment every year we planted more than
5000 trees.
* Further for zero effluent discharge we are developing around 3 acres
of land.
* Installation of Chemical Recovery Plant in the near future shall
bring about a permanent solution to the long standing to pollution.
* All wastes and effluents in the black lagoons and sludge beds meant
for storing them have been systematically cleaned and no further wastes
can any longer be found.
HUMAN RESOURCE MANAGMENT & INDUSTRIAL RELATIONS
Even during the current period when there is no production we continue
to have the support of our disciplined workforce. They form the
backbone of the organization and considered our greatest asset. The
company too has been sincere in its efforts to provide the best
atmosphere for its employees. Adequate training and planning of our
manpower resources has been a major factor in our operations.
Performance is always rewarded with suitable remuneration.
PARTICULARS OF EMPLOYEES PURSUANT TO PROVISION OF SECTION 217 (2A) OF
THE COMPANIES ACT. 1956
The particulars are stated in Annexure - I hereto.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND REGION EXCHANGE
EARNINGS AND OUTGO
The information relating to the conservation of energy, technology
absorption and foreign exchange earnings and outgo as required to be
disclosed under the Companies (Disclosure of particulars in the Report
of the Board of Directors) Rules 1988, is given in the Annexure -II
hereto
CAPITAL WORK IN PROGRESS
The paper plant was closed on 6th October, 2010 to ensure due
compliance of orders of the Central Pollution Control Board during
which the expansion unit was still under the installation stage. As a
result of the closure, the installation of the paper machine and the
integration of the power plant with the old and new machines could not
be carried out. In order to be effective as well as feasible both needs
to operate in unison but since circumstances has led to non
commissioning of the power plant and the new paper machine both of them
have been shown as work in progress in auditor''s report.
IMPAIRMENT OF ASSETS
In compliance with Accounting Standard AS-28 relating to "Impairment of
Assets", the company has reviewed the carrying amount of its fixed
assets as at the end of the year. During the year prior to the previous
financial year the valuation of the various assets of the company
situated at our mill site including the factory building and premises
was carried out by a registered valuer in connection with various
financial facilities granted by our banker. Although the report was
submitted by the valuer to the bank directly in accordance with his
norms of appointment it is significant to note that neither the bank
has communicated any adverse remarks on such assets nor have they
expressed any concern regarding the current state of such assets till
date. Based on the strategic plans and such valuation of the fixed
assets of the company, no impairment of assets is envisaged at the
balance sheet date.
FINANCIAL VIABILITY OF COMPANY
As it has been pointed out in the auditor''s report that there has been
complete erosion of net worth due to closure of our mill. It is
expected that once we are able to start operations the losses can be
made up.
CONCLUSION
The company has been very well supported from all quarters and
therefore your directors wish to place on record their sincere
appreciation for the support and co-operation received from Employees,
Dealers, Suppliers, Central and State Governments, Bankers and others
associated with the Company.
Your Directors wish to thank the banks, financial institutions,
shareholders and business associates for their continued support and
cooperation.
We look forward to receiving the continued patronage from all quarters
to become a better and stronger company.
For and on behalf of the Board of Directors
Kolkata ANKIT JALAN KAMAL KUMAR KHETAWAT
14th August, 2014 Executive Director Director
Mar 31, 2013
TO THE MEMBERs OF AGIO PAPER & INDUSTRIES LTD.
The Directors have pleasure in presenting the 28TH Annual Report of
the Company along with Audited Accounts of the Company for the year
ended 31st March, 2013.
SUMMARISED FINANCIAL HIGHLIGHTS
(Rs. in Lacs)
Current Year Previous Year
Gross Turnover
and other receipts 50.00 121.52
Profit / (Loss) before
Interest and Depreciation (327.99) (181.73)
Less: Interest 456.51 399.64
Profit/ (Loss) Before Depreciation (784.50) (581.37)
Less: Depreciation 27.11 124.35
Profit / (Loss) Before Tax (812.21) (705.72)
Less: Provision for taxation
MAT Credit Entitlement
Deferred Tax (11.37)
Fringe Benefit Tax
Wealth Tax
Profit / (Loss) After Tax (812.21) (694.35)
Balance brought forward from
previous year (1310.95) (616.60)
Add: Adjustment of Employee
Benefit as per AS -15 (Revised)
Add: Transfer to foreign
currency translation reserve for 2007-08
Balance carried to Balance Sheet (2123.16) (1310.95)
BUSINESS PERFORMANCE
Ever since the closure of our factory to ensure compliance of Central
Pollution Control Board''s norms during the financial year 2010-11 we
having been trying different alternatives to mitigate the problems but
so far it has not come to fruition. Yet we remain honest in our
endeavour and hope to make up for loss time in the future.
DIVIDEND
In absence of profit no dividend is recommended for the financial year
ended 31st March, 2013.
CREDIT FACILITIES
To facilitate the projects at our factory site at Bilaspur our banker
Allahabad bank has raised the level of credit facilities to the extent
of Rs.30.85 crores and had restructured such credit facilities earlier.
The company has been paying on schedule up until recently, when some of
the payments had to be held due to difference in figures with the bank.
The company is in talks with the bank to sort out the matter.
AUDITORS
The Statutory Auditors of the Company M/s Singhi & Co, Chartered
Accountants retire at the ensuing Annual General Meeting of the Company
and have given their consent for reappointment.
Pursuant to directions received from the Central Government, M. Pal &
Associates has been appointed as the Cost Auditor of the Company to
audit the Cost Accounts of the Company for the year ended 31st March,
2013.
DIRECTORS
In accordance with Section 256 of the Companies Act, 1956 and Article
75 of the Articles of Association of the Company, Shri Kamal Kumar
Khetawat Director of your Company will retire by rotation at the
ensuing Annual General Meeting and being eligible offers himself for
re- appointment.
CORPORATE GOVERNMENT
Pursuant to Clause 49 of the Listing Agreement with the Stock
Exchanges, Management Discussion & Analysis, Corporate Governance
Report and Auditor''s Certificate regarding compliance of conditions of
Corporate Governance are made part of this Annual Report.
INTERNAL CONTROL SYSTEM
The company has over the years developed an adequate internal control
system through effective means to safeguard against loss and wastages.
These internal control systems are subject to review by the Audit
Committee and Board of Directors. The internal audit department of the
Company reviews the internal control system on a regular basis to
improve its effectiveness. Regular internal audits are conducted based
on annual internal audit programme as agreed with audit committee. The
audit committee also reviews the effectiveness of Company''s internal
controls and regularly monitors implementation of audit
recommendations. Your Company has emphasized upon the importance of
effective internal control and has increased the focus.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the provision of Section 217 (2AA) of the Companies Act,
1956, with respect to Directors it is hereby confirmed that:
a) All the applicable Accounting Standards have been followed in the
preparation of the Annual Accounts and there is no material departure
from the same.
b) Accounting policies have been selected in consultation with the
statutory auditors and have been applied consistently in making
judgements and estimates that are reasonable and prudent so as to give
a true and fair view of the state of affairs of the company as at 31st
March, 2013.
c) Proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of Companies Act,
1956 for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities; and .
d) That they have prepared the annual accounts on a going concern
basis.
INSURANCE
Your Company has taken adequate guard against the unforeseen and
accidents and all assets are adequately secured.
CORPORATE SOCIAL RESPONSIBILITY
The Company has been, over the years, pursuing as part of its corporate
philosophy, an unwritten CSR policy voluntarily which goes much beyond
mere philanthropic gestures and integrates interest, welfare and
aspirations of the community with those of the Company itself in an
environment of partnership for inclusive development.
POLUTION CONTROL AND ENVIRONMENTAL PROTECTION
Paper Industry by nature is a hazardous industry. The Management had
taken during earlier years many developmental actions and made huge
investments towards that. In specific areas actions taken were:- -
Zero discharge of Black Liquor from the mill and installing another
filter press with full capacity. - Drastic deduction in Consumption
of fresh water thereby reducing the generation of effluent. - The
Effluent Treatment Plant has been strengthened by further installation
of flocculants tanks, Chemical dosing arrangement for reducing the
Effluent load and improves the effluent quality. - Maximum use of
mill back water in the plant by recycling.
- Effluent generation from Paper Machine and Waste Paper Pulp
processing is being used 100% after clarification. - Effluent sludge
is separated through 2 Nos. sludge press and used for making board. -
Effluent water is treated in ETP and 100% used for irrigating tree
plantation, quenching ash and sprinkling on gardens, roads.
There is no discharge in River. - Emission from boiler is controlled
by Trema cyclone & in Power Plant ESP has been installed which
maintained emission standard satisfactorily.
- Giving emphasis on green environment every year we planted more than
5000 trees.
- Further for zero effluent discharge we are developing around 3 acres
of land.
- Installation of Chemical Recovery Plant in the near future shall
bring about a permanent solution to the long standing pollution
Problem. - All wastes and effluents in the black lagoons and sludge
beds meant for storing them have been systematically cleaned and no
further wastes can any longer be found.
HUMAN RESOURCE MANAGEMENT & INDUSTRIAL RELATIONS
Even during the current period when there is no production we continue
to have the support of our disciplined workforce. They form the
backbone of the organization and considered our greatest asset. The
company too has been sincere in its efforts to provide the best
atmosphere for its employees. Adequate training and planning of our
manpower resources has been a major factor in our operations.
Performance is always rewarded with suitable remuneration.
PARTICULARS OF EMPLOYEES PURSUANT TO PROVISIONS OF SECTION 217 (2A) OF
THE COMPANIES ACT., 1956
The particulars are stated in Annexure - I hereto
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information relating to the conservation of energy, technology
absorption and foreign exchange earnings and outgo as required to be
disclosed under the Companies (Disclosure of particulars in the Report
of the Board of Directors) Rules 1988, is given in the Annexure ÂII
hereto
CAPITAL WORK IN PROGRESS
The paper plant was closed on 6th October, 2010 to ensure due
compliance of orders of the Central Pollution Control Board during
which the expansion unit was still under the installation stage. As a
result of the closure, the installation of the paper machine and the
integration of the power plant with the old and new machines could not
be carried out. In order to be effective as well as feasible both needs
to operate in unison but since circumstances has led to non
commissioning of the power plant and the new paper machine both of them
have been shown as work in progress in auditor''s report.
IMPAIRMENT OF ASSETS
In compliance with Accounting Standard AS-28 relating to "Impairment of
AssetsÂ, the company has reviewed the carrying amount of its fixed
assets as at the end of the year. During the previous financial year
the valuation of the various assets of the company situated at our mill
site including the factory building and premises was carried out by a
registered valuer in connection with various financial facilities
granted by our banker. Although the report was submitted by the valuer
to the bank directly in accordance with his norms of appointment it is
significant to note that neither the bank has communicated any adverse
remarks on such assets nor have they expressed any concern regarding
the current state state of such assets till date. Based on the
strategic plans and such valuation of the fixed assets of the company,
no impairment of assets is envisaged at the balance sheet date.
FINANCIAL VIABILITY OF COMPANY
As it has been pointed out in the auditor''s report that there has been
complete erosion of net worth due to closure of our mill. It is
expected that once we are able start operations the losses can be made
up .
CONCLUSION
The company has been very well supported from all quarters and
therefore your directors wish to place on record their sincere
appreciation for the support and co-operation received from Employees,
Dealers, Suppliers, Central and State Governments, Bankers and others
associated with the Company.
Your Directors wish to thank the banks, financial institutions,
shareholders and business associates from their continued support and
cooperation.
We look forward to receiving the continued patronage from all quarters
to become a better and stronger company.
For and on behalf of the Board of Directors
Kolkata ANKIT JALAN
14th August, 2013 Executive Director
Mar 31, 2011
TO THE MEMBERS
AGIO PAPER & INDUSTRIES LTD.
The Directors have pleasure in presenting the 26th Annual Report of
the Company along with Audited Accounts of the Company for the year
ended 31st March, 2011.
SUMMARISED FINANCIAL HIGHLIGHTS (Rs. in Lacs)
Current Year Previous Year
Gross Turnover and other receipts 2445.60 2415.61
Profit / (Loss) before Interest and
Depreciation (607.79) (118.14)
Less: Interest 301.84 85.33
Profit/(Loss) Before Depreciation (305.95) (203.47)
Less: Depreciation 483.03 126.30
Profit/(Loss) Before Tax (177.08) (329.77)
Less:,Provision for taxation
MAT Credit Entitlement 59.06 -
Deferred Tax (40.85) -
Fringe Benefit Tax - -
Wealth Tax - -
Profit/(Loss) After Tax (195.29) (329.77)
Balance brought forward from previous year (421.31) (91.53)
Add: Adjustment of Employee Benefit
as per AS-15 (Revised) - -
Add: Transfer to foreign currency translation
reserve for 2007- 08 - -
Balance carried to Balance Sheet (616.60) (421.31)
BUSINESS PERFORMANCE
The closure of the factory since 6th October, 2010 due to instructions
issued by the Central Pollution Control Board has put a temporary halt
on our consistent progress which we had managed to achieve during the
last few years. But this has not deterred us from finding a feasible
solution which shall soon be implemented and enable us to carry on
production activities without any stoppages.
Even though we have not been able to manufacture paper for majority of
the year yet we managed to earn substantial revenue from what we
produced prior to such closure. We have also managed to curb certain
top heavy expenditures and this has also helped us reduce our losses to
a certain extent.
Once production activities resume we shall certainly make up for lost
time and shall continue our march towards progress.
DIVIDEND
In absence of profit no dividend is recommended for the financial year
ended 31st March, 2011.
PREFERENTIAL ALLOTTMENT OF EQUITY SHARES
In accordance with provisions of section 81(1 A) of the Companies Act,
1956 and subject to guidelines for preferential issues issued by the
Securities and Exchange Board of India ("SEBI") under SEBI (Issue of
Capital and Disclosure Requirements) Regulations, 2009 the Company has
allotted 10,000,000 (One Crore) Equity Shares of Rs.10/- each at a
price of Rs. 12/- per equity Share (including a premium of Rs. 21- per
share) on preferential allotment basis. Therefore the paid up capital
of the Company now stands at Rs. 161,254,000/-.
EXPANSION, NEW PROJECTS AND FUTURE PROJECTIONS
Although we achieved significant progress in installation of second
paper machine having production capacity of 18000 MT per annum yet it
can be operational only when production resumes. Similarly the 4 MW
Co-Generation power plant at our factory which had earlier been tested
on trial run basis can run only when we resume production. To prevent
further pollutions in future we have decided to install a chemical
recovery plant. The work on this project shall commence in the near
future and although it will be a time consuming process it will be
worth the wait since it will provide a long term solution.
CREDIT FACILITIES
To facilitate the projects at our factory site at Bilaspur our banker
Allahabad Bank has raised the level of credit facilities to the extent
of Rs.30.85 crores and has restructured such credit facilities.
CREDIT RATING
During the current year we are getting rating done through Fitch
Ratings.
AUDITORS
The Statutory Auditors of the Company M/s. Singhi & Co, Chartered
Accountants retire at the ensuing Annual General Meeting of the Company
and have given their consent for re-appointment.
Pursuant to directions received from the Central Government. M. Pal &
Associates has been appointed as the Cost Auditor of the Company to
audit the Cost Accounts of the Company for the year ended 31 st March,
2011.
DIRECTORS
In accordance with Section 256 of the Companies Act, 1956 and Article
75 of the Articles of Association of the Company, Shri Sumitro
Mukherjee and Shri Ankit Jalan, Directors of your Company will retire
by rotation at the ensuing Annual General Meeting and being eligible
offer themselves for re-appointment.
Shri SheoShankar Joshiand Shri Kamal Kumar Khetawat were appointed as
Additional Directors with effect from 12th August, 2011 to hold office
till the conclusion of the forthcoming Annual General Meeting of the
Company. The Company has received notices under section 257 of the
Companies Act, 1956 from members proposing their appointment as
Directors of the Company.
After their long association with the Company and rendering services in
the capacity of Directors Shri Jitendra Agrawal, Shri Ankur Jalan, Shri
Ramesh Kumar Kanoi and Shri Shiv Kumar Kanoi have relinquished their
offices.The Board of Directors records its sincere appreciation for the
invaluable services rendered by them during their tenure as
Directors.The Board of Directors also wishes to thank Shri Brij Kishore
Taimni who guided the Company during his tenure as Director and has
resigned during the year under review. CORPORATE GOVERNANCE
Ever since its inception in the Indian Corporate System observance of
Corporate Governance parameters has been strictly followed by the
Company. It has been accepted by us as a means of doing business and
not just mere compliance. The Corporate Governance Report and the
Corporate Governance Compliance Certificate obtained from the Company's
Statutory Auditors M/s. Singhi & Co., Chartered Accountants, confirming
the compliance of Corporate Governance as stipulated in Clause 49 of
Listing Agreement is included in the Annual Report.
INTERNAL CONTROL SYSTEM
Adequate internal control system has been established and is maintained
in various areas. The existing set up of the internal control system is
commensurate with the size of the Company's operations and nature of
its business. Your Company has emphasized upon the importance of
effective internal control and has increased the focus.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the provision of Section 217 (2AA)ofthe Companies Act,
1956, with respect to Directors it is hereby confirmed that:
a) All the applicable Accounting Standards have been followed in the
preparation of the Annual Accounts and there is no material departure
from the same.
b) Accounting policies have been selected in consultation with the
Statutory Auditors and have been applied consistently in making
judgements and estimates that are reasonable and prudent so as to give
a true and fair view of the state of affairs of the company as at 31st
March. 2011.
c) Proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of Companies
Act,1956 for safeguarding the assets of the Company and for preventing
and detecting fraud and other irregularities: and .
d) That they have prepared the Annual Accounts on a going concern
basis.
INSURANCE
Your Company has taken adequate guard against the unforeseen and
accidents. Sufficient insurance coverage has been obtained w.r.t. the
raw materials, finished goods and all assets of the Company.
CORPORATE SOCIAL RESPONSIBILITY
Keeping in consistency with previous years we have carried out our
duties as a responsible corporate citizen. Looking after the needs of
the society and our surroundings is considered a prime responsibility.
Serving the needs of the society and doing everything possible to
develop our surroundings and also pave the way for its betterment has
not only been a philosophy for the new management but put into practice
on a consistent basis over the past years.
POLUTION CONTROL AND ENVIRONMENTAL PROTECTION
Paper Industry by nature is a hazardous industry. The Management has
taken many developmental actions and made huge investments towards
that. In specific areas actions taken are:-
- Zero discharge of Black Liquor from the mill and installing another
filter press with full capacity.
- Drastic deduction in Consumption of fresh water thereby reducing the
generation of effluent.
- The Effluent Treatment Plant has been strengthened by further
installation of floccuiants tanks, Chemical dosing arrangement for
reducing the Effluent load and improves the effluent quality.
- Maximum use of mill back water in the plant by recycling.
- Effluent generation from Paper Machine and Waste Paper Pulp
processing is being used 100% after clarification.
- Effluent sludge is separated through 2 Nos. sludge press and used for
making board.
- Effluent water is treated in ETP and 100% used for irrigating tree
plantation, quenching ash and sprinkling on gardens, roads. There is no
discharge in River.
- Emission from boiler is controlled by Trema Cyclone & in Power Plant
ESP has been installed which maintained emission standard
satisfactorily.
- Giving emphasis on green environment every year we planted more than
5000 trees.
- Further for zero effluent discharge we are developing around 3 acres
of land.
- Installation of Chemical Recovery Plant in the very near future shall
bring about a permanent solution to the long standing to pollution.
- All wastes and effluents generated from production and deposited in
the black lagoons and sludge beds meant for storing them have been
systematically cleaned and no further wastes can any longer be found.
HUMAN RESOURCE MANAGEMENT & INDUSTRIAL RELATIONS
Even during the current period when there is no production we continue
to have the support of our disciplined workforce. They form the
backbone of the organization and considered our greatest asset. The
Company too has been sincere in its efforts to provide the best
atmosphere for its employees. Adequate training and planning of our
manpower resources has been a major factor in our operations.
Performance is always rewarded with suitable remuneration.
PARTICULARS OF EMPLOYEES PURSUANT TO PROVISIONS OF SECTION 217(2A) OF
THE COMPANIES ACT, 1956
The particulars are stated in Annexure -1 hereto.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO
The information relating to the Conservation of Energy, Technology,
Absorption and Foreign Exchange Earnings and Outgo as required to be
disclosed under the Companies (Disclosure of particulars in the Report
of the Board of Directors) Rules 1988, is given in the Annexure -II
hereto
ACKNOWLEDGEMENT
The Company has been very well supported from all quarters and
therefore your Directors wish to place on record their sincere
appreciation for the support and co-operation received from Employees,
Dealers, Suppliers, Central and State Governments. Bankers and others
Associated with the Company. Your Directors wish to thank the Banks,
Financial Institutions, Shareholders and Business Associates for their
continued support and cooperation. We look forward to receiving the
continued patronage fro all quarters to become a better and stronger
Company.
For and on behalf of the Board of Directors
Kolkata M. L. JALAN
12th August, 2011 Chairman
Mar 31, 2010
The Directors have pleasure In presenting the 25th Annual Report of
the Company along with Audited Accounts of the Company for the year
ended 31 st March, 2010.
SUMMARISED FINANCIAL HIGHLIGHTS (Rs. in Lacs)
Current Year Previous Year
Gross Turnover and other
receipts 2372.43 3677.63
Profit / (Loss) before Interest
and Depreciation (118.14) 290.85
Less: Interest 85.33 134.90
Profit/(Loss) Before Depreciation (203.47) 155.95
Less: Depreciation 126.30 121.34
Profit/(Loss) Before Tax (329.77) 34.61
Less: Provision for taxation
DefeiretfTix - 17.42
Fringe Benefit Tax - 1.88
Wealth Tax - 0.02
Profit/(Loss) After Tax (329.77) 15.28
Balance brought forward
from previous year (91.53) (54.73)
Add: Adjustment of Employee
Benefit as per AS -15 Revised - -
Add: Transfer to foreign
currency translation reserve
for 2007-08 - (52.08)
Balance carrfedto Balance Sheet (421.30) (91.53)
BUSINESS PERFORMANCE
The present year did not yield the desired results commensurate with
our efforts. The closure of the factory for a period of time at the
beginning of the financial year and the unstable market conditions
throughout the year are two of the factors behind such reversal. The
global downturn which is yet to subside totally too had its adverse
effects. Since we are in expansion stage we have taken these setbacks
in our stride and are hoping all the positive steps taken thus far
shall yield the desired results in the near future.
DIVIDEND
In absence of profit no dividend is recommended for the financial year
ended 31st March, 2010.
SILVER JUBILEE YEAR
The year in review holds special significance for all of us. We are in
our silver jubilee year and me are proud to have made this journey from
our humble beginning not so long ago. After change of management during
the last decade we have made great strides and have found our place
amongst other established players in the industry. The efforts of each
and every individual associated with the company will reflect manifold
in the years to come when the company shall fulfill its growth
potential and shall be recognized as a leader in the paper industry.
PREFERENTIAL ALLOTTMENT OF EQUITY SHARES
In accordance with provisions of section 81 (1 A) of the Companies Act,
1956 and subject to guidelines for preferential issues issued by the
Securities and Exchange Board of India ("SEBI") under SEBI (Issue of
Capital and Disclosure Requirements) Regulations, 2009 the company
intends to allot 10,000,000 (One Crore) Equity Shares of Rs.10/- each
at a price of Rs. 12/- per equity Share (including a premium of Rs. 2/-
per share) on preferential allotment basis.
EXPANSION, NEW PROJECTS AND FUTURE PROJECTIONS
Our second paper machine having production capacity of 18000 MT per
annum is in the final stage of installation. The 4MW Co-Generation
power plant at our factory had also been tested on trial run basis. The
simultaneous operation of these two together in the future will act as
a boon and shall stand us in good stead for the coming years.
CREDIT FACILITIES
To facilitate the projects at our factory site at Bilaspur our banker
Allahabad bank has raised the level of credit facilities to the extent
of Rs.29.25 crores. CREDIT RATING
During the current year we are getting rating done through Fitch
Ratings. AUDITORS
The Statutory Auditors of the Company M/s Singhi & Co, Chartered
Accountants retire at the ensuing Annual General Meeting of the Company
and have
given their consent for reappointment.
Pursuant to directions received from the Central Government, M. Pal &
Associates has been appointed as the Cost Auditor of the Company to
audit the
Cost Accounts of the Company for the year ended 31st March, 2010.
AUDITORS OBSERVATION
In para (iii) (x) of Annexure to the Auditors report the statutory
auditors have commented that based upon their observations in para 7 of
audit report, the companys accumulated losses at the end of the
financial year have exceeded fifty percent of its net worth.
It may be noted that subject to the consent of the shareholders at the
next annual general meeting the board shall complete the process of
preferential allotment of 10,000,000 equity shares of Rs.10/- each at
Rs.12/- per equity share (including premium of Rs.2). Subsequently the
paid up share capital of the company shall increase by Rs. 1000.00 lacs
and shall stand at Rs. 1612.73 lacs. The reserves figure shall also be
enhanced by Rs.200.00 lacs after
addition of such share premium and shall stand at Rs.509.00 lacs.
After taking into consideration the enhancement in paid up share
capital and reserves subsequent upon completion of process of
preferential allotment of shares the accumulated losses of the company
shall stand well below fifty percent of net worth and the concern
expressed by the statutory auditor of the company shall be adequately
redressed.
DIRECTORS
In accordance with Section 256 of the Companies Act, 1956 and Article
75 of the Articles of Association of the Company, Shri Davinder Kumar
and Shri Ankur Jalan Directors of your Company will retire by rotation
at the ensuing Annual General Meeting and being eligible offer
themselves for re-appointment.
CORPORATE GOVERNANCE
The company has always laid special emphasis to clause 49 of listing
agreement with stock exchange which deals with corporate governance. It
is a well structured mechanism in the present corporate era which is
held in highest esteem by the company and always tries to ensure its
due compliance. A compliance report on Corporate Governance forms a
part of this annual report along with the auditors certificate on the
compliance.
INTERNAL CONTROL SYSTEM
Adequate internal control system has been established and is maintained
in various areas. The existing set up of the internal control system is
commensurate with the size of the companys operations and nature of
its business. Your Company has emphasized upon the importance of
effective internal control and has increased the focus.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the provision of Section 217 (2AA) of the Companies Act,
1956, with respect to Directors it is hereby confirmed that:
a) All the applicable Accounting Standards have been followed in the
preparation of the Annual Accounts and there is no material departure
from the same.
b) Accounting policies have been selected in consultation with the
statutory auditors and have been applied consistently in making
judgements and estimates that are reasonable and prudent so as to give
a true and fair view of the state of affairs of the company as at 31st
March, 2010.
c) Proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of Companies Act,
1956 for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities; and .
d) That they have prepared the annual accounts on a going concern
basis.
INSURANCE
Your Company has taken adequate guard against the unforeseen and
accidents. Sufficient insurance coverage has been obtained w.r.t. the
raw materials, finished goods and all assets of the Company.
CORPORATE SOCIAL RESPONSIBILITY
The company had always pursued the policy of growth objectives in a
socially responsible and ecological sustainable way. The health and
safety of the employees, those in the neighborhoods and the protection
of environment have always been given priority while we strived for
excellence.
Infrastructure development
We have developed overhead tanks, water pipes and taps for distribution
of water. In the summer months when the crisis of water is acute the
bore wells provided by us serves the thousands in all the neighbouring
villages,
Sports
The company has been acting as a patron for various sporting activities
to nurture young talents in the villages. We have contributed to the
district football and basketball association as well as Chhattisgarh
karate association for development of local youths.
Health
Being conscious about our greater responsibilities we have been
providing free medical check up and treatment facilities to villagers
in dispensaries. Free medicines are also provided to the needy people
of the villages.
Contribution towards Akshay Patra
In order to eradicate illiteracy and encourage education amongst our
future generation we have started contributing towards Akshay Patra a
mid day meal scheme for school children.
POLUTION CONTROL AND ENVIRONMENTAL PROTECTION
Paper Industry by nature is a hazardous industry. The Management has
taken many developmental actions and made huge investments towards
that. In specific areas actions taken are:-
- Zero discharge of Black Liquor from the mill and installing another
filter press with full capacity.
- Drastic deduction in Consumption of fresh water thereby reducing the
generation of effluent.
- The Effluent Treatment Plant has been strengthened by further
installation of flocculants tanks, Chemical dosing arrangement for
reducing the Effluent load and improves the effluent quality.
- Maximum use of mill back water in the plant by recycling.
- Effluent generation from Paper Machine and Waste Paper Pulp
processing is being used 100% after clarification.
- Effluent sludge is separated through 2 Nos. sludge press and used for
making board.
- Effluent water is treated in ETP and 100% used for irrigating tree
plantation, quenching ash and sprinkling on gardens, roads. There is no
discharge in River.
- Emission from boiler is controlled by Trema cyclone & in Power Plant
ESP has been installed which maintained emission standard
satisfactorily.
- Giving emphasis on green environment every year we planted more than
5000 trees.
- Further for zero effluent discharge we are developing around 3 acres
of land.
HUMAN RESOURCE MANAGEMENT & INDUSTRIAL RELATIONS
The industrial relations throughout the year under review were peaceful
and satisfactory from all aspects. As always the company paid special
attention to the aspect of human resource in the organization. In
relentless pursuance of excellence, it continues to focus on both
recruitment and retention, giving priority to meritocracy and ensuring
that performance is first recognized and then rewarded in an
appropriate manner. The company understands that culture, core values
and integrity constitute the framework of a corporate that is held in
esteem by the employees and makes continuous efforts to progress in
these directions. Training and development programmes take place
continuously to make best use of each individuals abilities.
PARTICULARS OF EMPLOYEES PURSUANT TO PROVISIONS OF SECTION 217(2A) OF
THE COMPANIES ACT, 1956
The particulars are stated in Annexure -1 hereto.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO
The information relating to the conservation of energy, technology
absorption and foreign exchange earnings and outgo as required to be
disclosed under the Companies (Disclosure of particulars in the Report
of the Board of Directors) Rules 1988, is given in the Annexure -II
hereto.
CONCLUSION
The journey (raveled thus far has been possible with the support and
cooperation received from various quarters.
Therefore your directors wish to place on record their sincere
appreciation for the support and co-operation received from Employees,
Dealers, Suppliers, Central and State Governments, Bankers and others
associated with the Company.
Your Directors wish to thank the banks, financial institutions,
shareholders and business associates for their continued support and
cooperation.
We look forward to receiving the continued patronage from all quarters
to become a better and stronger company
For and on behalf of the Board of Directors
Kolkata M. L. JALAN
14th August, 2010 Chairman