Mar 31, 2015
Dear Members,
The Directors are pleased to present the 13th Annual Report of the
Company together with Audited Accounts for the financial year ended
31st March, 2015.
FINANCIAL HIGHLIGHTS (Rs. in Lacs)
Particulars Curren Year Previous Year
31.03.2015 31.03.2014
Revenue from Operation (net) 1,14,769.22 1,47,569.53
Other Income 1,026.10 312.51
Total Revenue 1,15,795.32 1,47,882.04
Profit before Finance Cost,
Depreciation and Tax (652.34) 6,835.54
Less : Depreciation & Amortisation 7,366.14 5,963.79
Less : Finance Cost 11,309.93 11,520.08
Less : Tax Expenses - (2,996.32)
Net Profit after Tax (19,328.41) (7,652.01)
Add : Balance brought forward
from previous year 9,438.50 17,090.51
Less: Adjustments relating to Fixed Assets (29.42) -
Balance carried over to Balance Sheet (9,919.33) 9,438.50
FINANCIAL AND OPERATIONAL REVIEW
During the year under review the Company has achieved nets Sales/Income
from Operation of Rs. 1,14,769.22 Lacs as against Rs. 1,47,569.53 Lacs
in previous year registering a decline of 22.22%. The Company incurred
a net loss of Rs. 19,328.41 Lacs during the FY 2014-15 which is mainly
attributed to depressed market for its products and lower capacity
utilisation of plant impacting the net realisation and margin. Slower
growth in several key sector of the economy has resulted in weaker
domestic demand. On the other hand, mining crisis and rising inflation
in the Country resulted in increase in the cost of raw materials and
other overhead which could not be passed on the consumers.
CHANGES IN SHARE CAPITAL
To accommodate the Proposed allotment of Equity Shares consequent to
proposed preferenti al issue, the board has increased the Authorised
Share Capital from Rs. 1,22,25,00,000 to Rs. 1,41,20,00,000.
The Board of Directors in their meeting held on 30th May, 2015, has
decided to raise a sum of Rs. 38.07 crores by issuing 1,90,35,000
Equity Shares of Rs. 10 each at a premium of Rs. 10 per share on
preferential basis to the entities belonging to Promoter & Promoter
group. The subject preferential issue has since been approved by the
Shareholders through Postal Ballot results announced on 22nd July,
2015.
DIVIDEND
The Directors have not recommended any dividend on Equity Shares for
the year under review.
BOARD MEETINGS
The Board met Twenty Four (24) times during the year. The details of
which are given in the Corporate Governance Report that forms the part
of this Annual Report. The intervening gap between the Meetings was
within the period prescribed under the Companies Act, 2013 and the
Listing Agreement with the Stock Exchanges.
DIRECTORS & KEY MANAGERIAL PERSONNEL
Retirement
In accordance with the provisions of the Companies Act, 2013, Mr.
Sanjay Singh (DIN : 00531906), retires by rotation and being eligible,
offers himself for re-appointment.
Resignation
During the year, Mr. Jayanta Kumar Chatterjee (DIN : 00059807),
Independent Director of the Company has resigned from the directorship
of the Company with effect from 3rd December, 2014. Mr. Jay Shanker
Shukla (DIN : 06391367), Independent Director of the Company has
resigned from the directorship of the Company with effect from 23rd
March, 2015. Mr. Ankit Patni (DIN : 00034907), Managing Director of the
Company has resigned from the Company with effect from 22nd August,
2015. The Board wishes to place on record its sincere appreciation of
the contribution, advice, guidance extended by them during their
tenure.
Appointment/Re-Appointment
Pursuant to the provisions of Section 161 of the Companies Act, 2013,
read with the relevant provisions in the Articles of Association, Mr
Rohit Jain (DIN : 07129693) was appointed as an Additional Director
(Independent) by the Board of Directors of the Company with effect from
23rd March, 2015 to hold office up to the date of ensuing Annual
General Meeting. The Company has received a notice in writing from a
member proposing his candidature for the office of Independent
Director. Mr Rohit Jain qualifies to be an Independent Director
pursuant to the provisions of Section 149(6) of the Companies Act, 2013
and Schedule IV of the Companies Act, 2013. He shall be appointed for a
period of five years from the date of appointment.
Pursuant to the provisions of Section 149 (1) & 161 of the Companies
Act, 2013, read with the relevant provisions in the Articles of
Association and Clause 49 of the Listing Agreement entered into with
the Stock Exchanges, Mrs. Sujata Agarwal (DIN : 06833458) was appointed
as an Additional Director (Independent) by the Board of Directors of
the Company with effect from 23rd March, 2015 to hold office up to the
date of ensuing Annual General Meeting. The Company has received a
notice in writing from a member proposing her candidature for the
office of Independent Women Director. Mrs. Sujata Agarwal qualifies to
be an Independent Women Director pursuant to the provisions of Section
149 (1) & 149(6) of the Companies Act, 2013 and Schedule IV of the
Companies Act, 2013. She shall be appointed for a period of five years
from the date of appointment.
Pursuant to the provisions of Section 196, 197, 198 of the Companies
Act, 2013, read with Schedule V, Mr Sanjay Singh (DIN : 00531906),
Execuitve Director, whose tenure is expiring on 23rd August, 2015, is
being re-appointment for a further period of three (3) years from 24th
August, 2015 to 23rd August, 2018.
Pursuant to the provisions of Section 149, 152 & 160 of the Companies
Act, 2013, Mr Ramesh Seemakurti (DIN : 00096163) has been appointed as
an Additional Director (Promoter-Non Executive) of the Company with
effect from 22nd August, 2015 to hold office upto the date of ensuing
Annual General Meeting. The Company has received a notice in writing
from a member proposing his candidature for the office of Non-Executive
Director whose period of office would be liable to be determined by
retirement of Directors by rotation.
The brief particulars of the said Directors have been given in the
notice convening the ensuing Annual General Meeting and annexed as an
additional information to the notice as required under Clause 49 of the
Listing Agreement and your board recommends their
appointment/re-appointment as set out in the notice.
Chief Financial Officer
As per Section 203 of the Companies Act, 2013 read with the relevant
provisions, Mr. Bishwanath Choudhary (PAN : ACNPC7339P), was appointed
as a Chief Financial Officer of the Company with effect from 26th
April, 2014. However, he resigned from the services of the Company with
effect from 18th February, 2015.
Consequent to Mr. Bishwanath Choudhary's resignation, the Board had
appointed Mr. Anand Jain (PAN : AFVPJ5630D) as the Chief Financial
Officer of the Company with effect from 4th May, 2015.
Company Secretary & Compliance Officer
Mr. Chandra Kumar Jain (PAN : AEPPJ8634J), Company Secretary and
Compliance Officer of the Company had resigned from the post with
effect from 29th May, 2015.
Consequent to Mr. Chandra Kumar Jain's resignation, the Board had
appointed Mr. Nikhil Deora (PAN : BDZPD9721N) as the Company Secretary
and Compliance Officer of the Company with effect from 29th May, 2015.
DIRECTOR'S RESPONSIBILITY STATEMENT
Based on the framework of internal financial controls maintained by the
Company, work performed by the Internal, Statutory, Cost and
Secretarial Auditors and external agencies, the reviews performed by
Management and the relevant Board Committees, the Board, with the
concurrence of the Audit Committee, is of the opinion that the
Company's internal financial controls were adequate and effective as on
31st March, 2015.
Accordingly, pursuant to Section 134(5) of the Companies Act, 2013 the
Board of Directors to the best of their knowledge and ability confirm:
a) that in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
b) that we have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at the end of the financial year and of the profit and loss
of the Company for that period;
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 accounts have been prepared on a going concern
basis;
e) that proper internal financial controls were laid down and that such
internal financial controls are adequate and were operating
effectively; and
f) that proper systems to ensure compliance with the provisions of all
applicable laws were in place and that such systems were adequate and
operating effectively.
CONSOLIDATED FINANCIAL STATEMENT
As stipulated in Clause 41 of the Listing Agreement entered into with
the Stock Exchanges, the Company has prepared Consolidated Financial
Statements in accordance with the relevant Accounting Standards (AS-21)
issued by the Institute of Chartered Accountants of India (ICAI). The
Audited Consolidated Financial Statements along with the Auditors
Report thereon form part of the Annual Report.
CREDIT RATING
The Company's credit rating for Long-Term Loan debts/facilities is C
(C Plus) and Short-Term Loan Debts/facilities is A4 (A four) rated by
the ICRA Ltd.
PUBLIC DEPOSITS
The Company has not accepted any fixed deposits from the public and as
such, no amount of principal and interest was outstanding as on the
date of the Balance Sheet.
INSURANCE
The properties and insurable assets and interests of the Company, like
building, plant and machinery and stocks, among others, are adequately
insured.
EXTRACT OF ANNUAL RETURN
The details of the extract of the Annual Return as on the financial
year ended on 31st March, 2015, in Form MGT 9 as required under Section
92(3) of the Companies Act, 2013 read with Rule 12(1) of the Companies
(Management and Administration) Rules, 2014, is annexed herewith and
forms part of this Report as Annexure-I.
PARTICULARS OF LOANS, GURANTEES OR INVESTMENT
The Company has not given any loans or guarantees covered under the
provisions of section 186 of the Companies Act, 2013. The details of
the investments made by Company are given in the notes to the financial
statements.
DECLARATION BY INDEPENDENT DIRECTOR(S) UNDER SECTION 149(6)
Mr Jatindra Nath Rudra, Mr. Prem Narayan Khandelwal, Mrs. Sujata
Agarwal and Mr Rohit Jain are Independent Directors on the Board of the
Company. In the opinion of the Board and as confirmed by these
Directors, they fulfils the conditions specified in Section 149(6) of
the Companies Act, 2013, and the Rules made there under about their
status as Independent Directors of the Company.
DETAILS OF SUBSIDIARY/JOINT VENTURES/ASSOCIATE COMPANIES
SI. Name Of the Subsidiary/Joint ventures % of
No. Company/ Associate Companies contribution
1. M/s. SKP Mining Pvt. Ltd. Joint Venture 50%
STATUTORY AUDITORS
M/s. R. Kothari & Company (FRN: 307069E), Chartered Accountants, retire
at the ensuing Annual General Meeting of the Company and have given
their consent for re-appointment. The Company has received a
certificate confirming their eligilibility to be re-appointed as
Auditors of the Company in terms of the provisions of Section 141 of
the Companies Act, 2013 and Rules framed there under. The Auditors have
also confirmed that they hold a valid certificate issued by the Peer
Review Board of the Institute of Chartered Accounts of India as
required under the provisions of revised Clause 49 of the Listing
Agreement with the Stock Exchanges.
STATUTORY AUDITORS OBSERVATION
There are no qualifications or adverse remarks in the Auditor's Report
which require any clarification/explanation. The Notes to accounts
referred to in the Auditor's Report are self-explanatory, and
therefore, do not call for any further comments/explanations.
COST AUDITOR
In terms of Section 148 of the Companies Act, 2013 read with Rule 14 of
the Companies (Audit and Auditors) Rules, 2014, and on the
recommendation of the Audit Committee, the Board of Directors has
re-appointed Mr. S. Banerjee, Cost Accountants (Membership No. 9780),
as Cost Auditor of the Company at a remuneration of Rs. 35,000/- plus
applicable taxes and re-imbursement of out of pocket expenses incurred
by them to conduct an audit of the cost accounting records maintained
by the Company for the current financial year beginning from 1st April,
2015 and ending on 31st March, 2016.
As required under Section 148 of the Companies Act, 2013 read with rule
14 of the Companies (Audit and Auditors) Rules, 2014, the remuneration
payable to cost auditor is being placed at the ensuing Annual General
Meeting for ratification by the members.
INTERNAL AUDIT REPORT
During the year, M/s. Charupreeti & Co. (FRN : 3268561), Chartered
Accountants has given their Internal Audit Report for the quarter ended
31st March, 2015 and has resigned as Internal Auditor of the Company.
Further, M/s. NR & Associates (FRN : 102903), Cost Accountants has
given their consent to be appointed as Internal Auditor of the Company
for the financial year 2015-16.
SECRETARIAL AUDIT REPORT
In terms of Section 204 of the Act and Rules made there under, M/s. A J
& Associates, Practicing Company Secretaries have been appointed as
Secretarial Auditors of the Company. The report of the Secretarial
Auditors is enclosed as Annexure II to this report.
SECRETARIAL AUDITOR'S OBSERVATIONS & REPLY
The Secretarial Auditor has the following observation in Form MR 3 :
(i) There were delay in filling of various forms with Registrar of
Companies (ROC), West Bengal.
(ii) MGT 14 forms with respect to borrowings are not yet filed.
Our comments are as under :
(i) Teething issues in implementation of new Companies Act, 2013 led to
some delay in filling.
(ii) The filing as may be required is under process.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING
AND OUTGOING
A statement giving details of Conservation of Energy, Technology
Absorption and Foreign Exchange Earning and Outgo as required under
Section 134(3)(m) read with Rule 8 of Companies Cost (Accounts) Rules,
2014, is annexed to this report as Annexure III.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company is equipped with proper and adequate system of internal
controls for maintaining proper accounting, cost control and efficiency
in operation.
The Company also has adequate system to ensure that all of its assets
are safeguarded and protected against loss from unauthorised use or
disposition and transactions are authorised, recorded, and reported
correctly. The internal control system is supplemented by internal
audits, review by management, documented policies and procedures.
PARTICULARS OF EMPLOYEES
The prescribed particulars of employees required under Section
134(3)(q) read with Rule 5 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 is attached as
Annexure IV and forms a part of this Report.
DECLARATION ON COMPLIANCE WITH CODE OF CONDUCTS
The Board has formulated a Code of Conduct for the Board Members and
Senior Management of the Company, which has been posted on the website
of the Company.
It is hereby affirmed that all the Directors and Senior Management
Personnel have complied with the Code and a confirmation to that effect
has been obtained from the Directors and the Senior Management.
PREVENTION OF INSIDER TRADING
The Company already had a structured Code of Conduct for Prevention of
Insider Trading since long back, with a view to regulate trading
insecurities by the Directors and designated employees of the Company.
The Code has been further streamlined to keep parity with the new
Companies Act, 2013.
The Code requires pre-clearance for dealing in the Company's shares and
prohibits the purchase or sale of Company's shares by the Directors and
the designated employees while in possession of unpublished price
sensitive information in relation to the Company and during the period
when the Trading Window is closed. The Board is responsible for
implementation of the Code.
All the directors and the designated employees, who hold any shares in
the Company, have confirmed compliance with the Code.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS/COURTS/
TRIBUNALS
There are no significant material orders passed by the
Regulators/Courts/Tribunals which would impact the going concern status
of the Company and its future operations.
REMUNERATION POLICY
The Board has on the recommendation of the Nomination and Remuneration
Committee framed a policy for selection and appointment of Directors,
Key Managerial Personnel and their remuneration. A note on Remuneration
Policy has been made a part of the Corporate Governance Report.
RISK MANAGEMENT POLICY
The Company has a defined Risk Management framework under the authority
of Board to identify, assess, monitor and mitigate various risks to key
business objectives. Major risks identified by the businesses and
functions are systematically addressed through mitigating actions on a
continuing basis.
The Risk Management Policy provides for identification of risk, its
assessment and procedures to minimise risk. The policy is periodically
reviewed to ensure that the executive management controls the risk as
per decided policy.
POLICY ON PREVENTION OF SEXUAL HARASSMENT
The Company is committed to provide a safe and secure environment to
its women employees across its functions, as they are integral part of
the organisation. The Company has adopted policy on Prevention of
Sexual Harassment of Women at Workplace in accordance with The Sexual
Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013.
During the financial year ended 31st March, 2015, the Company has not
received any Complaints pertaining to Sexual Harassment.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
All Contracts/Arrangements/Transactions entered by the Company during
the financial year with related parties were in the ordinary course of
business and on arm's length basis. During the year, the Company had
not entered into any contract/arrangement/transaction with related
parties which could be considered material in accordance with the
policy of the Company on materiality of related party transactions
between the Company and the Directors, the management or the relatives
except for those disclosed in the financial statements.
Accordingly, particulars of contracts or arrangements entered into by
the Company with related parties referred to in Section 188(1) of the
Companies Act, 2013 in Form AOC-2 (Annexure V) is NIL.
VIGIL MECHANISM
In terms of provision of Section 177(9) of the Companies Act, 2013 read
with Rule 7 of the Companies (Meeting of Board and its Power) Rules,
2014 and Clause 49 of the Listing Agreement the Board has adopted a
Vigil Mechanism for the Company in its meeting held on 30th May, 2014.
This policy is formulated to provide opportunity to all the employees
to access in good faith, to the Audit Committee of the Company in case
they observe any unethical and improper practice or behavior or
wrongful conduct in the Company and to prohibit managerial personnel
from taking adverse personnel action against such employee.
PERFORMANCE/BOARD EVALUATION
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Board has carried out an evaluation of its
own performance, the directors individually as well as the evaluation
of the working of its Audit Committee, Nomination and Remuneration
Committee and Stakeholders' Relationship Committee.
A note on Board Evaluation has been made a part of the Corporate
Governance Report under the head "Performance Evaluation of Independent
Directors".
CORPORATE GOVERNANCE
The Company is committed to maintain the highest standards of Corporate
Governance and adhere to the corporate governance requirements set out
in Clause 49 of the Listing Agreement. The Report on Corporate
Governance as stipulated under Clause 49 of the Listing Agreement forms
an integral part of this Annual Report.
MANAGEMENT DISCUSSION AND ANALYSIS
Management's Discussion and Analysis for the year under review, as
stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges, is presented in a separate section forming part of this
Annual Report.
CEO/CFO CERTIFICATION
As required by Clause 49 of the Listing Agreement, the CEO/CFO
certification has been submitted to the Board.
GREEN INITIATIVES IN CORPORATE GOVERNANCE
Ministry of Corporate Affairs has permitted companies to send
electronic copies of Annual Report, notices etc., to the e-mail IDs of
shareholders. The Company has accordingly arranged to send the soft
copies of these documents to the e-mail IDs of shareholders wherever
applicable. In case any shareholder would like to receive physical
copies of these documents, the same shall be forwarded upon receipt of
written request.
MATERIAL CHANGES AND COMMITMENTS IF ANY, AFFECTING THE FINANCIAL
POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE
STATEMENTS RELATES AND THE DATE OF THE REPORT
Pursuant to the Corporate Debt Restructuring Scheme which has got
sanctioned provisionally on 17th September, 2014, the Board of
Directors have decided in their meeting held on 30th May, 2015 to issue
and allot 1,90,35,000 (One Crore Ninety Lacs and Thirty Five Thousand)
Equity Shares @ Rs. 20 (Rupees Twenty only) including a premium of Rs.
10 aggregating to an amount of Rs. 38.07 Crores on preferential basis
to the Promoters and Promoter Group. Subsequently, the shareholders of
the Company at their meeting of Postal Ballot held on 22nd July, 2015
have approved the said issue of Equity Shares on preferential basis.
The Company has received In-Principle approval form BSE Limited on 10th
August, 2015 and form National Stock Exchange of India Limited (NSE) on
13th August, 2015. The Company has received Rs. 38.07 Crore as
unsecured Loan from the Promoters and Promoter Group which shall be
converted into Equity in due course.
ANNEXURES FORMING PART OF THIS DIRECTORS' REPORT
The Annexure referred to in this Report and other information which are
required to be disclosed are annexed herewith and form a part of this
Directors' Report:
Annexures Particulars
I Extract of Annual Return (FORM MGT 9)
II Secretarial Audit Report (FORM MR 3)
III Energy Conservation, Technology Absorption And Foreign
Exchange Earning And Outgoing
IV Particulars Of Employees
V Particulars of Contracts or Arrangements with
Related Parties (FORM AOC 2)
ACKNOWLEDGEMENT
The Board also desires to place on record its appreciation for the
support and co-operation received from its Shareholders, Regulatory &
Government Authorities, Suppliers, Customers and Bankers. The Company
has always looked upon them as partners in its progress. It will be the
Company's endeavour to build and nurture strong links with trade based
on mutuality, respect and co-operation with each other. The Board
wishes to record their deep sense of appreciation for the committed
services of all the employees of the Company.
For and on behalf of the Board
Ankit Metal Power Limited
Suresh Kumar Patni
Kolkata, 22nd August, 2015 Chairman
Mar 31, 2014
Dear Members,
The Directors are pleased to present the 12th Annual Report of the
Company together with Audited Accounts for the fi nancial year ended
31st March, 2014.
Financial Highlights (Rs. in Lacs)
Particulars Current Year Previous Year
31.03.2014 31.03.2013
Revenue from Operation (net) 1,47,569.53 1,19,276.81
Other Income_ 312.46 117.86
Total Revenue_ 1,47,881.99 1,19,394.67
Profit before Finance Cost,
Depreciation and Tax 6,835.54 17,737.29
Less : Depreciation & Amortisation 5,963.79 4,111.23
Less : Finance Cost 11,520.08 7,137.39
Less : Tax Expenses (2,996.32) 1,369.87
Net Profit after Tax (7,652.01) 5,118.80
Add : Balance brought forward from
previous year 17,090.51 11,971.71
Balance carried over to Balance Sheet_ 9,438.50 17,090.51
Financial and Operational Review
During the year under review the Company has achieved nets sales/income
from operation of X 1,47,569.53 lacs as against X 1,19,276.81 lacs in
previous year registering a growth of 23.72%. However, the Company
incurred a net loss ofRs. 7,652.01 lacs during the FY. 2013-14 which is
mainly attributed to depressed market for its products, lower capacity
utilising of power plant and high holding level impacting the net
realisation and margin. Weaker domestic demand and slower growth in
several key market, mining crises and uncontrolled infl ation in the
Country has resulted in increase in the cost of raw materials and other
overhead which could not be passed on the consumers.
Dividend
Your Directors have not recommended any dividend on Equity Shares for
the year under review.
Credit Rating
The Company''s credit rating for Long-Term debts/facilities is BB
(Double B plus), for Long-Term/Short-Term debts/facilities is
BB /A4 (Double B plus/A Four) and Short-Term facilities is A4 (A Four),
rated by the Credit Analysis & Research Limited (CARE).
Public Deposits
The Company has not accepted any fixed deposits from the public and as
such, no amount of principal and interest was outstanding as on the
date of the Balance Sheet.
Insurance
The properties and insurable assets and interests of the Company, like
building, plant and machinery and stocks, among others, are adequately
insured.
Debt Restructuring
During the year, considering the losses incurrent by the Company, the
Board of Director of the Company has made a reference to the lenders of
the Company for restructuring of its debt through the Corporate Debt
Restructuring process. Monitoring Institution, the State Bank of India
has appointed an independent third party consultant for Techno-Economic
Viability study and report thereon. The fi nal restructuring plan based
on TEV report has been circulated with the lenders for their fi nal
manded to be placed before the CDR-EG for their approval.
Directors
In accordance with the provisions of the Companies Act, 2013, Mr.
Suresh Kumar Patni, retires by rotation and being eligible, off ers
himself for re-appointment.
Mr. Jayanta Kumar Chatterjee, Independent Director, who retires by
rotation at the ensuing Annual General Meeting under the erstwhile
provision of the Companies Act, 1956 and Mr. Jay Shanker Shukla and Mr.
Jatindra Nath Rudra, Independent Directors, whose period of offi ce is
liable to be determination by retirement of Director by rotation under
the erstwhile applicable provision of the Companies Act, 1956, meets
all the criteria of independence as laid down under section 149(6) and
the code for independent Directors in Schedule IV of the Companies Act,
2013.
Accordingly the aforesaid persons shall be appointed as independent
Directors in terms of section 149 the Companies Act, 2013 at the
ensuing Annual General Meeting to hold the offi ce as Independent
Director for a term upto 31st March, 2019, and their period of offi ce
shall not be liable to determination by retirement of Directors by
rotation.
Pursuant to the provisions of Section 161 of the Companies Act, 2013,
read with the relevant provisions in the Articles of Association, Mr.
Prem Narayan Khandelwal was appointed as an Additional Director by the
Board of Directors of the Company with eff ect from 16th June, 2014. He
holds offi ce as a Director up to the date the ensuing AGM. The Company
has received a notice in writing from a member proposing his
candidature for the offi ce of Independent Director. Mr. Prem Narayan
Khandelwal qualifi es to be an independent Director pursuant to the
provisions of Section 149(6) of the Companies Act, 2013.
The brief particulars of the said Directors have been given in the
notice convening the ensuing Annual General Meeting is annexed as
additional information to the notice as required under clause 49 of the
Listing Agreement and your board recommends their
appointment/reappointment as set out in the notice.
Changes in Share Capital
During the year under review, the Company has allotted 2,67,00,000
Equity Shares of Rs.10/- each on preferential basis at a premium ofRs. 20/-
per share aggregating to Rs. 80.10 Crores to the entities belonging to
promoter group and strategic investors belonging to non promoters
group.
Consequent to said allotment, the paid up Share Capital of the Company
stood increased to Rs. 1,22,07,55,000/-. The entire proceeds received
from the preferential allotment has been utilised towards the object of
the issue.
Management Discussion & Analysis and Corporate Governance Report
A Management Discussion & Analysis Report and a Report on Corporate
Governance along with the certifi cate from the Company Secretary in
Practice regarding compliance with mandatory requirements as stipulated
under Clause 49 of the Listing Agreement with Stock Exchanges, is
presented in a separate section forming part of the Annual Report.
Directors'' Responsibility Statement
The Directors confi rm :
- that in the preparation of the annual accounts, the applicable
accounting standards have been followed and no material departures have
been made from the same;
- that they have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of aff airs of
the Company and of the profit or loss of the Company for that period;
- that they have taken proper and suffi cient 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;
- that they have prepared the accounts for the fi nancial year on a
''going concern'' basis.
Auditors and Auditors'' Report
M/s. R. Kothari & Company (FRN: 307069E), Chartered Accountants, holds
offi ce till the conclusion of the ensuing Annual General Meeting and
being eligible, off er themselves for re-appointment. The members are
requested to consider their appointment as the Statutory Auditors of
the Company from the conclusion of this Annual General Meeting until
the conclusion of the seventeenth (17th) Annual General Meeting of the
Company subject to ratifi cation by members at every Annual General
Meeting held after this Annual General Meeting on such remuneration as
shall be fixed by the Board of Directors
Auditors Observation
There are no Qualifications or adverse remarks in the Auditor''s Report
which require any clarifi cation/explanation. The Notes to accounts
referred to in the Auditor''s Report are self-explanatory, and
therefore, do not call for any further comments/ explanations.
Cost Audit
In terms of section 148 of the Companies Act, 2013 read with Rule 14 of
the Companies (Audit and Auditors) Rules, 2014, on the recommendation
of Audit Committee, the Board of Directors has re-appointed Mr. S.
Banerjee, Cost Accountants (Membership No. 9780), as cost auditor of
the Company, at a remuneration ofRs. 35,000/- plus applicable taxes and
re-imbursement of out of pocket expenses incurred by them to conduct an
audit of the cost accounting records maintained by the Company for the
current fi nancial year beginning from 1st April, 2014 and ending on
31st March, 2015.
As required under section 148 of the Companies Act, 2013 read with rule
14 of the Companies (Audit and Auditors) Rules, 2014, the remuneration
payable to cost auditor is being placed at the ensuing Annual General
Meeting for ratifi cation by the members.
Particulars of Employees
None of the employees of your Company were in receipt of the
remuneration in excess of the limit specifi ed under Section 217(2A) of
the Companies Act, 1956 read with Companies (Particulars of Employees)
Amendment Rules, 2011.
Energy Conservation, Technology Absorption and Foreign Exchange Earning
and Outgoing A statement giving details of Conservation of Energy,
Technology Absorption and Foreign Exchange Earning and Outgo as
required under Section 217(1)(e) of the Companies Act, 1956 read with
Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 is annexed to this report.
Acknowledgement
The Board also desires to place on record its appreciation for the
support and co-operation received from its Shareholders, Regulatory &
Government Authorities, Suppliers, Customers and Bankers. The Company
has always looked upon them as partners in its progress. It will be the
Company''s endeavour to build and nurture strong links with trade based
on mutuality, respect and co-operation with each other. The Board
wishes to record their deep sense of appreciation for the committed
services of all the employees of the Company.
For and on behalf of the Board
Suresh Kumar Patni
Kolkata, 25th August, 2014 Chairman
Mar 31, 2013
The Directors have great pleasure in presenting the Eleventh Annual
Report of the Company together with the Audited Accounts for the
financial year ended 31st March, 2013.
Financial Highlights (Rs.in Lacs)
Particulars Current year Previous Year
31-03-2013 31-03-2012
Revenue from Operation (net) 1,19,276.81 92,578.31
Other Income 117.86 130.97
Total Revenue 11,19,394.67 92,709.28
Profit before Finance
Cost, Depreciation and Tax 17,737.29 8,927.17
Less: Depreciation & Amortisation 4,111.23 1,423.43
Less: Finance Cost 7,137.39 3,509.88
Less: Tax Expenses 1,369.87 669.78
Net Profit after Tax 5,118.80 3,324.08
Add : Balance brought
forward from previous year 11,971.71 8,647.63
Balance carried over to Balance Sheet 17,090.51 11,971.71
Financial Operational Review
Net Sales/Income from operation for the year stood to Rs. 119,276.81 Lacs
registering a growth of 28.84% over previous year. The Profit after
Tax (PAT) grew by 53.99% to Rs. 5,118.80 Lacs in 2012-13. The Cash Profit
before tax for the year stood at < 10,599.90 Lacs compared with Rs.
5,417.29 Lacs in the year 2011-12.
Dividend
Your Directors have not recommended any dividend on Equity Shares for
the year under review.
Issue of Equity Shares on Preferential Basis
The Board of Directors in their meeting held on 29th August, 2013,
subject to the approval of the members in the ensuing Annual General
Meeting, has decided to raise the sum of Rs. 80.10 Crores by issuing
26,700,000 Equity Shares of Rs. 10/- each at a premium of Rs. 20/- per
share on preferential basis to the entities belonging to promoter group
and strategic investors belonging to non-promoter group.
The amount raised will be utilised towards long term working capital
requirement, capital expenditure for expansion and modernisation
activities and other corporate purposes.
Changes in Share Capital
To accommodate the allotment of Equity Shares consequent to proposed
preferential issue, the board has recommended to increase the
Authorised Share Capital from Rs. 100 Crores to Rs. 122.25 Crores.
New Project and Expansion
The capex plans under implementation consisting of 6,00,000 TPA Iron
Ore Pellet Plant, 30 TPD DRI Kiln, Capacity addition to Wire Rod Mill,
RM Pre-Heater, AOD Convertor, etc. has been successfully implemented
and started commercial production.
Listing of Equity Shares of the Company with National Stock Exchange of
India Limited (NSE)
The Director of your Company are pleased to inform that the Equity
Shares of the Company got listed with National Stock Exchange of India
Limited (NSE) w.e.f. 14th March, 2013.
Public Deposit
The Company has not accepted any deposits during the year.
Credit Rating
The Company has retained CARE BBB- (Triple B minus ) credit rating for
its long term and medium term debts/facilities and CARE A3 (A Three)
credit rating for its short term debts/facilities accorded by the
credit rating agency Credit Analysis & Research Ltd. (CARE).
Insurance
The properties and insurable assets and interests of the Company, like
building, plant and machinery and stocks, among others, are adequately
insured.
Directors
Mr. Jatindra Nath Rudra, retires by rotation and being eligible, offers
himself for re-appointment.
Mr. Vijay Kumar Jain has resigned from the Directorship of the Company
with effect from 29th September, 2012. The Board of Directors recorded
its appreciation for the valuable services rendered by Mr. Vijay Kumar
Jain to the Company.
Mr. Jay Shanker Shukla has been appointed as an Additional Director
w.e.f. 29th September, 2012 to hold office up to the date of the next
Annual General Meeting. The Company has received notice under Section
257 of the Companies Act, 1956 proposing the candidature of Mr. Jay
Shanker Shukla as Director of the Company.
Mr. Kailash Chand Jain has resigned from the Directorship of the
Company with effect from 9th October, 2012. The Board of Directors
recorded its appreciation for the valuable services rendered by Mr.
Kailash Chand Jain to the Company.
Mr. Jayanta Kumar Chatterjee has been appointed as an Additional
Director w.e.f. 9th October, 2012 to hold office up to the date of the
next Annual General Meeting. The Company has received notice under
Section 257 of the Companies Act, 1956 proposing the candidature of Mr.
Jayanta Kumar Chatterjee as Director of the Company.
None of the Directors of the Company are disqualified for being
appointed as Directors, as specified in Section 274(l)(g) of the
Companies Act, 1956. As required under Clause 49 of the Listing
Agreement the additional information on the Directors seeking
appointment/re-appointment is annexed as additional information to the
notice.
Management Discussion and Analysis and Corporate Governance Report
Reports relating to Management Discussion and Analysis, Corporate
Governance along with the certificate from the Company Secretary in
Practice regarding compliance of Clause 49 of the Listing Agreement
with the Stock Exchanges forms part of this report.
Directors''Responsibility Statement
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Board of
Directors of the Company confirms :
a) That in the preparation of the annual accounts, the applicable
accounting standards have been followed and no material departure have
been made from the same;
b) That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit or loss of the Company for that period;
c) That Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956, for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
d) That the accounts have been prepared on a ''going concern'' basis.
Auditors and Auditors''Report
M/s. R. Kothari & Company, Statutory Auditors of the Company, hold
office till the conclusion of the ensuing Annual General Meeting and
being eligible, offer themselves for re-appointment. The Company has
received a letter from them to the effect that their appointment, if
made, would be within the limits prescribed under Section 224 (1-B) of
the Companies Act, 1956 and they are not otherwise disqualified within
the meaning of sub section (3) of Section 226 of the Companies Act,
1956 for such appointment.
There are no qualifications or adverse remarks in the Auditors'' Report
which require any clarification/explanation. The Notes to accounts
referred to in the Auditors'' Report are self-explanatory, and
therefore, do not call for any further comments/explanation.
Cost Audit
As per the requirement of the Central Government and pursuant to the
provision of Section 233B of the Companies Act, 1956, the Company has
re-appointed Mr. S. Banerjee, Cost Auditors to audit the cost accounts
of the Company for the year 2012-13 from 1st April, 2012 to 31st March,
2013, for which necessary approval from Central Government has been
received. The Cost Audit Report in respect of the financial year
2012-13 will be filed on or before the due date. The Company has
re-appointed Mr. S. Banerjee as Cost Auditors for the financial year
2013-14.
Particulars of Employees
Details of employee drawing remuneration in excess of the limit
specified under Section 217(2A) of the Companies Act, 1956 read with
Companies (Particulars of Employees) Amendment Rules, 2011 is given
below :
Particulars of Conservation of Energy, Technology Absorption and
Foreign Exchange Earnings and Outgo
Particulars of energy, technology absorption and foreign exchange
earning and outgo as required under Section 217(l)(e) of the Companies
Act, 1956, read with Companies (Disclosures of Particulars in the
report of Board of Directors) Rules, 1988, are given in the annexure
attached hereto and forms part of the report.
Acknowledgment
Your Directors take this opportunity to express their appreciation for
the assistance and co-operation received from the Central Government,
State Governments, Financial Institutions, Corporate Authorities,
Banks, Customers, Vendors and Shareholders during the year under
review. Your Directors also wish to place on record their deep sense of
appreciation for the committed services of executives, staffs and
workers of the Company.
For and on behalf ofthe Board
Suresh Kumar Patni
Kolkata, 29th August, 2013 Chairman
Mar 31, 2012
The Directors have great pleasure in presenting the Tenth Annual
Report of the Company together with the Audited Accounts for the
financial year ended 31st March, 2012.
Financial Highlights
(Rs. in Lacs)
Current Year Previous Year
Particulars 31.03.2012 31.03.2011
Revenue from Operation (net) 92,578.32 68,840.99
Other Income 130.97 94.34
Total Revenue 92,709.29 68,935.33
Profit before Finance Cost, 8,927.17 6,243.25
Depreciation and Tax
Less: Depreciation & Amortisation 1,423.43 1,243.40
Less: Finance Cost 3,509.88 2,196.38
Less : Tax Expenses 669.78 378.46
Net Profit after Tax 3,324.08 2,425.01
Add: Balance brought forward from 8,647.63 6,222.62
previous year
Balance carried over to Balance Sheet 11,971.71 8,647.63
Financial and Operational Review
Net Sales/Income from operation for the year stood at Rs. 92,578.32 Lacs
registering a growth of 34.48% over previous year. The Profit after Tax
(PAT) grew by 37.07% to Rs. 3,324.08 Lacs in 2011-12. The Cash Profit
before tax for the year stood at Rs. 5,417.29 Lacs compared with Rs.
4,046.87 Lacs in the year 2010-11.
Dividend
Your Directors have not recommended any dividend on Equity Shares for
the year under review.
New Project and Expansion
The Directors of your Company are pleased to inform that the Company
has started commercial production of its 350 TPD Sponge Iron Plant,
Steel Melting Shop (SMS), 1 Lac TPA Wire Rod Mill and 33MW Captive
Power plant.
The capex plans undertaken by the Company consisting of 6,00,000 TPA
Iron Ore Pellet Plant, 30 TPD DRI Kiln, Capacity addition to Wire Rod
Mill, RM Pre-Heater, AOD Convertor, modification of Wire Rod Mill from
MS to SS and Railway Siding are designed to increase the production
capacity and get the advantage of cost competiveness. The projects are
under various stage of implementation and are expected to be
commissioned in phases in the year 2012-13.
Changes in Share Capital
During the year under review, the Company has allotted 6,25,00,000
Equity Shares of Rs. 10/- each on preferential basis at a premium of Rs.
30/- per share aggregating to Rs. 250.00 Crores to the entities belonging
to promoter group and strategic investors belonging to non promoters
group.
Consequent to said allotment, the paid up Share Capital of the Company
stood increased to Rs. 95,37,55,000.00. The entire proceeds received from
the Preferential Allotment has been utilised towards the object of the
issue.
Public Deposit
The Company has not accepted any deposits during the year.
Credit Rating
The Company has retained CARE BBB- (Triple B minus) credit rating for
its long-term and medium-term debts/facilities and CARE A3 (A Three)
credit rating for its short-term debts/facilities accorded by the
credit rating agency Credit Analysis & Research Ltd. (CARE).
Insurance
The properties and insurable assets and interests of your Company, like
building, plant and machinery and stocks, among others, are adequately
insured.
Directors
Mr. Suresh Kumar Patni & Mr. Vijay Kumar Jain, retires by rotation and
being eligible, offers themselves for re-appointment.
Mr. Rohit Patni has resigned from the position of Joint Managing
Director as well as from the Directorship of the Company with effect
from 24th August, 2012. The Board of Directors recorded its
appreciation for the valuable services rendered by Mr. Rohit Patni to
the Company.
Mr. Sanjay Singh has been appointed as an Additional Director w.e.f.
24th August, 2012 to hold office up to the date of the next Annual
General Meeting. The Company has received notice under Section 257 of
the Companies Act, 1956 proposing the candidature of Mr. Sanjay Singh
as Director of the Company. Based on the recommendation of the
Remuneration Committee and subject to the approval of the members in
the ensuing Annual General Meeting, Mr. Sanjay Singh has been appointed
as an Executive Director of the Company for a period of 3 years w.e.f.
24th August, 2012.
None of the Directors of the Company are disqualified for being
appointed as Directors, as specified in Section 274(1)(g) of the
Companies Act, 1956. As required under Clause 49 of the Listing
Agreement the additional information on the Directors seeking
appointment/re-appointment is annexed as additional information to the
notice.
Management Discussion and Analysis and Corporate Governance Report
Reports relating to Management Discussion and Analysis, Corporate
Governance along with the certificate from the Company Secretary in
Practice regarding compliance of Clause 49 of the Listing Agreement
with the Stock Exchange forms part of this report.
Directors' Responsibility Statement
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Board of
Directors of the Company confirms :
a) That in the preparation of the annual accounts, the applicable
accounting standards have been followed and no material departure have
been made from the same;
b) That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit or loss of the Company for that period;
c) That Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956, for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
d) That the accounts have been prepared on a 'going concern' basis.
Auditors and Auditors' Report
M/s. R. Kothari & Company, Statutory Auditors of the Company, hold
office till the conclusion of the ensuing Annual General Meeting and
being eligible, offer themselves for re-appointment. The Company has
received a letter from them to the effect that their appointment, if
made, would be within the limits prescribed under Section 224 (1- B) of
the Companies Act, 1956 and they are not otherwise disqualified within
the meaning of sub-section (3) of Section 226 of the Companies Act,
1956 for such appointment.
There are no qualifications or adverse remarks in the Auditors' Report
which require any clarification/explanation. The Notes to accounts
referred to in the Auditors' Report are self-explanatory, and
therefore, do not call for any further comments/explanation.
Cost Audit
As per the requirement of the Central Government and pursuant to the
provision of Section 233B of the Companies Act, 1956, the Company has
appointed Mr. S. Banerjee, Cost Auditors to audit the cost accounts of
the Company for the year 2011-12 from 1st April, 2011 to 31st March,
2012 for which necessary approval from Central Government has been
received. The Cost Audit Report in respect of the financial year
2011-12 will be filed on or before the due date. The Company has
re-appointed Mr. S. Banerjee as Cost Auditors for the financial year
2012-13.
Particulars of Employees
Details of employee drawing remuneration in excess of the limit
specified under Section 217(2A) of the Companies Act, 1956 read with
Companies (Particulars of Employees) Amendment Rules, 2011 is given
below :
Name Age Qualification Date of Designation
(Years) Commencement
of employment
Mr Ankit Patni 27 CFA, MBA 8th Angust,
2003 Managing
Director
Name Remuneration Experience Last
received (gross) (Year) employment
Mr Ankit Patni Rs.53.87 Lacs* 8 As Jt. Managing Director
in Rohit Ferro-Tech Ltd.
till 24th August, 2012
* re-appointed as Managing Director w.e.f. 3rd July, 2011 at an
increased remuneration of Rs. 5 Lacs p.m.
Particulars of Conservation of Energy, Technology Absorption and
Foreign Exchange Earnings and Outgo
Particulars of energy, technology absorption and foreign exchange
earning and outgo as required under Section 217(1 )(e) of the Companies
Act, 1956, read with Companies (Disclosures of Particulars in the
report of Board of Directors) Rules, 1988, are given in the annexure
attached hereto and forms part of the report.
Acknowledgment
Your Directors take this opportunity to express their appreciation for
the assistance and co-operation received from the Central Government,
State Governments, Financial Institutions, Corporate Authorities,
Banks, Customers, Vendors and Shareholders during the year under
review. Your Directors also wish to place on record their deep sense of
appreciation for the committed services of executives, staffs and
workers of the Company.
For and on behalf of the Board
Suresh Kumar Patni
Kolkata, 24th August, 2012 Chairman
Mar 31, 2011
Dear Shareholders,
The Directors have pleasure in presenting the Ninth Annual Report on
the business and operations of the Company together with the Audited
Financial Statements for the financial year ended 31st March, 2011.
Financial Results
The financial results of the Company for the year under review are
summarised below for your perusal and consideration.
(Rs.in lacs)
2010-11 2009-10
Net Sales 67,474.58 62,887.79
Profit before Deprecation 4,046.87 2,915.31
Less : Deprecation 1,243.40 1,086.40
Profit Before Tax 2,803.47 1,828.91
Less: Provision for Income
Tax including FBT (909.28) (52.87)
Add: MAT credit entitlement 530.82 311.23
Net Profit 2,425.01 2,087.27
Add : Balance brought forward 6,222.62 4,135.35
Balance available for Appropriation 8,647.63 6,222.62
Balance carried forward to
Balance Sheet 8,647.63 6,222.62
Dividend
Your Directors have not recommended any dividend on Equity Shares for
the year under review
Financial & Operational Review
Net Sales for the year stood to Rs. 674.74 crores registering a growth
of 7.29% over previous year. The Profit after Tax (PAT) grew by 16.18%
to Rs. 24.25 crores in 2010-11. The Cash Profit before Tax for the year
stood at Rs. 40.47 crores compared with Rs. 29.15 crores in the year
2009-10 and Earning Per Share (EPS) grew from Rs. 6.35 in 2009-10 to
Rs. 7.38 in 2010-11. The net worth of the Company increased from Rs.
140.65 crores to Rs. 275.40 crores and the Gross Fixed Assets
increased from Rs. 196.04 crores to Rs. 208.24 crores. Further, the
Capital work-in-progress during the year ended 31st March, 2011 was Rs.
225.65 crores (P.Y-Rs. 18.92 crores).
New Project and Expansion
The Company has commenced the implementation and installation of 350
TPD Sponge Iron Plant, 15 MT Induction Furnace, 1 lac TPA Wire Rod Mill
and a 33 MW Captive Power Plant with a total capital outlay of Rs. 311
crores. The project is expected to be completed in phases within April,
2012.
The Company is also setting up of 0.6 MTPA Iron Ore Pellet Plant, 30
TPD DRI Kiln, RM Pre-Heater, AOD Converter and Railway Siding with a
total capital outlay of Rs. 316 crores. The Company has since achieved
financial closure with the sanction of Rs. 212 crores as term loan
assistance from consortium of bankers for implementation of the
project. The implementation of the plant is progressing satisfactorily
and the Pellet plant when completed shall provide substantial savings
in raw material cost as the Company will be able to deploy iron ore
fines in place of iron ore lumps at substantially lower cost for
manufacturing iron and steel at its production facility.
Status of Right Issue and Issue of Equity Shares on Preferential Basis
The Company has received statutory approval from SEBI for its proposed
right issue to raise a sum aggregating to not more than Rs. 175 crores
to part finance its expansion project. The Board of Directors in their
meeting held on 12.08.2011 has decided that in view of the enhanced
capital requirements and confirmations received from proposed allottees
for the preferential allotment the rights issue is being withdrawn. The
Board recommends member's approval for the issue of Equity Shares on
preferential basis aggregating to Rs. 250 crores to the entities
belonging to promoter group and strategic investors belonging to non-
promoter group to meet the long term capital needs of the Company
including its vaious expansion schemes under implementation and its
long term net working capital requirements.
Changes in Share Capital
During the year under review, the Company has increased its authorised
capital from Rs. 60 crores to Rs. 80 crores. The Board has recommended
to further increase the authorised share capital from Rs. 80 crores to
Rs. 100 crores to accommodate the allotment of shares on a preferential
basis.
Public Deposit
The Company has not accepted any deposits during the year.
Directors
Mr. Kailash Chand jain & Mr. Jatindra Nath Rudra, Directors of the
Company retires by rotation at the forthcoming Annual General Meeting
of the Company and being eligible, offers himself for re- appointment.
Mr. Ankit Patni, Managing Director of the Company whose terms of
appointment expires on 2nd July, 2011 has been re-appointed by the
Board of Directors for a further period of five years w.e.f 03.07.2011,
subject to the approval of the shareholders in the ensuing Annual
General Meeting.
A brief resume/details related to Directors seeking appointment/re-
appomtment is furnished as an Additional Information in the notice of
the ensuing Annual General Meeting.
Management Discussion and Analysis and Corporate Governance
Reports relating to Management Discussion and Analysis, Corporate
Governance along with the certificate from the Company Secretary in
Practice regarding compliance of Clause 49 of the Listing Agreement
with the Stock Exchange forms part of this report.
Directors' Responsibility Statement
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Board of
Directors of the Company confirm :
a) That in the preparation of the annual accounts, the applicable
accounting standards have been followed and no material departure have
been made from the same;
b) That the Directors have selected such accounting polices and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of the profit or
loss of the Company for that period;
c) That Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956, for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
d) That the accounts have been prepared on a 'going concern' basis.
Auditors and Auditors' Report
M/s. R Kothari & Company, Statutory Auditors of the Company, hold
office till the conclusion of the ensuing Annual General Meeting and
being eligible, offer themselves for re-appointment. The Company has
received a letter from them to the effect that their appointment, if
made, would be within the limits prescribed under Section 224 (I -B) of
the Cornpanies Act, 1956 and they are not otherwise disqualified within
the meaning of sub-section (3) of Section 226 of the Cornpanies Act,
1956 for such appointment.
There are no qualifications or adverse remarks in the Auditors' Report
which require any clarification/explanation. The Notes to accounts
referred to in the Auditors' Report are self-explanatory, and
therefore, do not call for any further comments/explanation.
Particulars of Employees
None of the employees of the Company has drawn remuneration in excess
of the limit specified under Section 2I7(2A) of the Companies Act, 1956
read with Companies (Particulars of Employees) Rules, 1975.
Particulars of Conservation of Energy, Technology Absorption and
Foreign Exchange Earnings and Outgo
Particulars of energy, technology absorption and foreign exchange
earning and outgo as required under Section 217(l)(e) of the Companies
Act, 1956, read with Companies (Disclosures of Particulars in the
report of Board of Directors) Rules, 1988, are given in the annexure
attached hereto and forms part of the report.
Acknowledgment
Your Directors take this opportunity to express their appreciation for
the assistance and co-operation received from the Central Government,
State Government, Financial Institutions, Corporate Authorities, Banks,
Customers, Vendors and Shareholders during the year under review Your
Directors also wish to place on record their deep sense of appreciation
for the committed services of executives, staffs and workers of the
Company.
For and on behalf of the Board
Suresh Kumar Patni
Chairman
Date :l2th August, 2011
Place : Kolkata
Mar 31, 2010
The Directors have great pleasure in presenting the Eighth Annual
Report on the business and operations of the Company together with the
Audited Financial Statements for the financial year ended 31 st March,
2010.
FINANCIAL RESULTS
The Financial results of the Company for the year under review are
summarized below for your perusal and consideration.
(Rs.in Lacs)
2009-10 2008-09
Net Sales 62887.79 49195.05
Profit before Depreciation 291531 1927.24
Less: Depreciation 1086.40 104.99
Profit before Tax 1828.91 883.25
Less: Provision for Income Tax including FBT 5237 339.92
Add :MAT credit entitlement 311.23 100.38
NetProfit 2087.27 643.71
Add-Balance brought forward 413535 3491.64
Balance available for Appropriation 6222.62 4135.35
Balance carried forward to Balance Sheet 6222.62 4135.35
DIVIDEND
Your Directors have not recommended any dividend on equity shares for
the year under review.
FINANCIAL & OPERATIONAL REVIEW
Net Sales for the year has increased from Rs. 492 Crores to Rs. 629
Crores by 28%. In line with the trend Profit before Tax increased by
107%, Profit after Tax increased by 224% and EPS increased by 224%
respectively over the previous year. Production during the year
increased from 156,170 MT to 252,438 MT.
The all round improved performance was due to increase in volume
andimproved realizations. The Net Worth of your Company increased from
Rs. 120 Crores to Rs. 141 Crores and Fixed Assets Gross Block increased
from Rs. 190 Crores to Rs. 196 Crores.
The Company has been awarded Star Export House Certificate by Ministry
of Commerces Industry.
During the year, the Company has started commercial production from its
Continuous Casting Machine from the month of January, 2010.
NEW PROJECT & EXPANSION
The Company has commenced the implementation and installation of a 350
TPD Sponge Iron Plant, 15 MT Induction Furnace, 1 Lac TPA Wire Rod and
a 33 MW Captive Power Plant with a total capital outlay of Rs. 311
Crores for which financial closure has been achieved.
The above projects are expected to be completed in the next financial
year. The Board of Directors in their meeting held on 6th July, 2010
have considered and approved the Rights Issue of equity shares subject
to statutory approvals.
PUBLIC DEPOSIT
The Company has not accepted any fixed deposits during the year.
MANAGEMENT DISCUSSION AND ANALYSIS AND CORPORATE GOVERNANCE
Reports relating to Management Discussion and Analysis, Corporate
Governance alongwith Auditors Certificate regarding compliance of
Clause 49 of the Listing Agreement with the Stock Exchanges forms part
of the Directors Report.
SOCIAL OBLIGATION
Your Company is aware of its obligation to the society and as such it
has been proactive in improving the working conditions of the employees
and their dependents throughout the organization both at the factory
and corporate office.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, it is hereby
confirmed:
a) That in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures, if any;
b) That the Directors have 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 the Company at the end of the financial year and of the
profit or loss of the Company for that period;
c) That Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
d) That the accounts have been prepared on a going concern basis.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND OUTGO
Particulars of energy, technology absorption and foreign exchange
earning and outgo as required under Section 217(1)(e) of the Companies
Act, 1956 read with Companies (Disclosures of Particulars in the report
of Board of Directors) Rules, 1988 are given in the annexure attached
hereto and forms part of the report.
PARTICULARS OF EMPLOYEES
Details of employees drawing remuneration in excess of the limit
specified under Section 217 (2A) of the Companies Act, 1956 read with
Companies (Particulars of Employees) Rules, 1975 as amended during
2009-10 are as follows:
Name Age(Years) Qualifation Date of
Employment Desination Remuneration
received
(gross)
AnkitPatni 25 CFA,MBA 03.07.2006 Managing Rs. 36,00,000/-
Director
Rohit Patni 26 BE, MBA 27.08.2007 Jt.Managing Rs. 24,00,000/-
Director
Experience
(years) Nature of
Employment Last
Employment
Ankit Patnl 5 Contractual Continuing
asJt.MDin Rohit
Ferro-Tech Ltd.
Rohit Patnl 4 Contractual Continuing
asMDin Rohit
Ferro-Tech Ltd.
AUDITORS AND AUDITORS REPORT
M/s. R. Kothari & Company, Statutory Auditors of the Company, hold
office till the conclusion of the ensuing Annual General Meeting and
being eligible, offer themselves for re-appointment.
DIRECTORS
Mr. Suresh Kumar Patni, Director of the Company, retires by rotation at
the forthcoming Annual General Meeting of the Company, and being
eligible, offers himself for re-appointment.
ACKNOWLEDGMENT
Your Directors take this opportunity to express their appreciation for
the assistance and co-operation received from the Central
Government, State Governments, Financial Institutions, Corporate
Authorities, Banks, Customers, Vendors and Shareholders during the year
under review. Your Directors also wish to place on record their deep
sense of appreciation for the committed services of executives, staffs
and workers of the Company.
For and on behalf of the Board
Suresh Kumar Patni
Kolkata, 10th August, 2010 Chairman
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