Home  »  Company  »  MSP Steel & Power Lt  »  Quotes  »  Directors Report
Enter the first few characters of Company and click 'Go'

Directors Report of MSP Steel & Power Ltd.

Mar 31, 2014

Dear Members,

The directors have pleasure in placing before you the 45th Annual Report along with Audited Annual State- ment of Accounts for the year ended 31st March 2014.

Financial results (Rs. in Lacs)

particulars year ended March 31, March 31, 2014 2013

Revenue from 1,30,856.20 1,01,535.62

Operations (Gross)

profit before 8653.05 7,647.40

depreciation and Tax

Less: Depreciation 5,479.61 4,627.92

profit Before Tax 3,173.44 3,019.48

Less: Provision for Income 25.86 -

Ta x (Including earlier years)

Less: Provision for 1,047.23 1,006.96

Deferred Tax

Net profit 2,100.34 20,12.52

Add: Balance brought 23,501.96 20,972.69

forward

Less: Appropriations - 29.08

Surplus carried to 25,602.30 23,501.96 Balance Sheet

Dividend The Board of directors have not rec- ommended dividend for the Financial year ended 31st March, 2014 on equity shares as well as for 6% Non Cumulative Redeemable Preference Shares.

Expansion project The Management with a view to modernize and expand the existing facilities at its plant at Raigarh has decided to take up a new proj- ect which includes setting up of one new Induction Furnace, Brick Making Plant, Expansion of Rolling and Structural Rolling Mill, Setting up of hot billet charging system in Rolling & Structural Rolling Mill and some other modifications. With the above the capacity of rolling mill will add to the topline and margin of the company.

Credit rating The Company''s rating is the "BBB " rating for long-term/medium-term debt and various bank facilities sanctioned and/or availed by the Com- pany. Facilities with "BRICKWORK BBB " rating are considered to ofer moderate safety for timely servic- ing of debt obligation. Such facilities carry moderate credit risk.

The Rating Committee reafirmed the ''PR2'' (PR Two) rating for short-term debt/facilities sanctioned and/or availed by the Company. Facilities with this rating will have an adequate capacity for timely payment of short- term debt obligation and carry higher credit risk.

The above rating continues to draw strength from promoters'' experience, operational efciency by virtue of having an integrated plant, production of value-added products fetching higher margins, increas- ing profit levels and moderate its financial position.

Share capital During the year under review the Company has allotted on 14th August, 2013, 1,20,00,000, 6% Non-cumulative redeemable prefer- ence shares on preferential basis to its promoters group companies at an issue price of Rs.100/- each (including a premium of Rs. 90/- each), by reorganizing its authorised share capital by cancelling 60,00,000 equity shares of Rs.10 each and creating in lieu of 60,00,000 preference shares of Rs.10/- each.

After the said allotment the Authorised Cap- ital of the Company stood at Rs.1,17,00,00,000/- divided into 9,60,00,000 equity shares of Rs.10/- each and 2,10,00,000, 6% Non-cumulative re- deemable preference shares of Rs 10/- each. And the paid up share capital has increased from Rs. 96,89,40,000/- to Rs.1,088,940,000/- Further more the Company has increased the authorised share capital of the Company from Rs. 117,00,00,000 to Rs. 1,32,00,00,000 by passing a spe- cial resolution via postal ballot. The result of the postal was declared on 14th July, 2014 at the corporate ofce of the Company by Mr. Puran Mal Agrawal, Chairman of the Company.

Listing of shares The shares of the Company continues to be listed on the National Stock Exchange of India Limited and the BSE Limited, having nation- wide terminal to facilitate easy and convenient trading to our valued shareholders. Further the Company had paid the annual listing fees to both the Stock Exchanges as mentioned above for the financial year 2014-15.

Directors With the notifcation of Section 149 of the Companies Act, 2013 and the rules made there under and the recent amendment under Clause 49 of the Stock Exchanges, which is applicable from 1st October, 2014, the Company has to appoint a Wom- en Director on the Board. Consequently the Board of Directors in their meeting held on 14th August, 2014 had proposed to appoint Ms. Priyanka Tiwari (DIN: 06944383) as Non-Executive Independent Director of the Company.

In accordance of the Articles of Association and section152 of the Companies Act, 2013 and the rules made thereunder, Mr. Manish Kumar Agrawal (DIN: 00129240), Director of the Company is liable to re- tire by rotation and being eligible ofers himself to be re-appointed in the ensuing Annual General Meeting of the Company.

Further as per the section 149 read with schedule IV and section 152 of the Companies Act, 2013, the rules made thereunder and the Listing Agreement with the Stock Exchanges, Company needs to appoint Independent Directors for a period of five (5) years from the date of appointment. Since Mr. Amit Mehta (DIN: 01197047), Mr. Navneet Jagatramka (DIN: 01579357), Mr. Ashok Kumar Soin (DIN: 02986145) and Mr. Arvind Kumar Saraf (DIN: 00395155) have already been appointed as Non-executive Independent Directors in accordance with the Listing agreement with the Stock Exchanges and Companies Act, 1956, which was in force then. Out of them Mr. Arvind Kumar Saraf and Mr. Navneet Jagatramka are liable to retire by rotation in the ensuing Annual General Meeting in accordance with the provisions of Companies Act, 1956.

As required under section 149 read with schedule IV of the Companies Act, 2013 and the relevant rules made thereunder, Company has received a declaration of independence from the Independent Directors.

Your Board of Directors at their meeting held on 14th August, 2014 has recommended to re-appoint all the independent directors at the ensuing Annual General Meeting as Non-executive Independent Di- rector not liable to retire by rotation, for a term of five (5) years w.e.f ensuing Annual General Meeting till the conclusion of the Annual General Meeting to be held for the financial year ending 31st March, 2019, in term of the Companies Act, 2013, the rules made there under and the Listing Agreement with the Stock Exchanges.

Necessary resolution for members approval for their reappointment form part of the notice of the Annual General Meeting.

Your directors recommend their re-appointment

Auditors The Company has appointed M/s Sunil Kumar Agrawal & Associates, Chartered Accoun- tants as the Statutory Auditors of the Company w.e.f Board Meeting held on 24th April, 2014 and that they shall hold the ofce of the statutory auditors of the Company until the conclusion of the ensuing Annual General Meeting, and that they shall, inter alia, con- duct the statutory audit for the financial year ended 31st March, 2014. The members via postal ballot notice dated 30th May, 2014 ratifed the said appoint- ment. The said ofce of Statutory Auditor will vacate at the conclusion of the ensuing Annual General Meeting, so Board propose to re-appoint M/s. Sunil Agrawal & Associates, Chartered Accountants as Statutory Audi- tors of the Company to hold ofce from the date of this Annual General Meeting till the conclusion of the next Annual General Meeting of the Company.

Auditors'' report The observations made in the Auditors'' Report read with Notes to Accounts are self-explanatory and therefore, do not call for any fur- ther elucidation.

Cost auditor Pursuant to section 148 and all other applicable provisions, if any, of the Companies Act, 2013 and Companies (Cost Records and Audit Rules), 2014 the Board of Directors had appointed Mr. Sambhu Banerjee as Cost Auditor of the Company to Conduct Cost Audit for the financial year ending 31st March, 2015

Directors'' responsibility statement Pursu- ant to the requirements of Section 217(2AA) of the Com- panies Act, 1956 your Directors hereby confirm that: (i) In the preparation of the annual accounts for the year ended 31st March, 2014, the applicable ac- counting standards were followed and no material departures were made from the same; (ii) The Directors selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and pr udent so as to give a true and fair view of the Company''s state of the afairs at the end of the financial year ended 31st March, 2014 and the Company''s profits for that period; (iii) The Directors took proper and sufcient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the Company''s assets and for preventing and detecting frauds and other irregu- larities;

(iv) The Directors prepared the annual accounts on a going concern basis.

Corporate governance Your Company has complied with the requirement of Clause 49 of the Listing Agreement with the Stock Exchanges and re- port on Corporate Governance in terms of the said clause along with the auditor''s certifcate for the same and a Management and discussion report has been at- tached to this report.

Corporate social responsibility Your Compa- ny recognizes that its business activities have direct and indirect impact on the society. The Company strives to integrate its business values and operations in an ethical and transparent manner to demonstrate its commit- ment to sustainable development and to meet the in- terests of its stakeholders. The Company is committed to continuously improving its social responsibilities, environment and economic practices to make positive impact on the society.

Subsidiaries & joint venture The Consolidated financial statements prepared by the Company include financial information of its subsidiaries and joint ven- ture prepared in compliance with applicable Account- ing Standards.

In accordance with the general exemption pro- vided by the Ministry of Corporate Afairs vide its general circular No 2/2011 dated 8th February, 2011, Company is not attaching the balance sheet, profit & loss account and the notes thereon and documents of the Subsidiaries Companies to the Balance Sheet of the Company. Further in terms of abovementioned Circu- lar the annual accounts of the subsidiary companies will be made available for inspection by any shareholders in the corporate ofce of the holding company and that of the subsidiary companies concerned upto the date of the Annual General Meeting of the Company. The annual accounts of the subsidiary companies and the related detailed information shall be made available to shareholders of the Company and subsidiary compa- nies seeking such information at any point of time.

Conservation of energy, technology ab - sorption and foreign exchange earnings and outgo Infor mation pursuant to Section 217(1)(e) of the Companies Act, 1956 read with Companies (Dis- closure of Particulars in the Report of the Board of Directors) Rules, 1988 is annexed and forms a part of this report.

Particulars of employees As on 31st March, 2014 there are no employee whose particulars of remu- neration is paid in excess of limits as prescribed under Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975.

Acknowledgements Your directors wish to place on record their gratitude for the valuable guidance and support given by the Government of India, various State Government departments, financial institutions, Banks and various stake holders such as Shareholders, Customers, Dealers, Suppliers and Investors during the year under review.Y our Directors also wish to place on record their deep sense of appreciation for the com- mitment displayed by all executives, ofcers and staf of the Company, resulting in the successful performance of the Company during the year.

For and on behalf of the board Place: Kolkata Sd/-

Date: 14th August, 2014 Puranmal Agrawal Chairman


Mar 31, 2012

The Directors have pleasure in placing before you the 43rd Annual Report along with Audited Annual Statement of Accounts for the year ended 31st March, 2012.

FINANCIAL RESULTS

(Rs. in lacs)

Particulars Year Ended Year Ended 2011-12 2010-11

Revenue from Operations (Gross) 75,177.84 51,975.44

Profit before Depreciation and Tax 6,277.24 8,642.90

Less: Depreciation 2,908.78 1,932.90

Profit Before Tax 3,368.46 6,710.00

Less: : Provision for Income Tax (Including earlier years) 294.70 337.36

: Provision for Deferred Tax 470.68 1,351.54

Net Profit 2,603.09 5,021.10

Add: Balance brought forward 18,593.04 1,4263.21

Less: Appropriations 223.43 691.27

Surplus carried to Balance Sheet 20,972.69 18,593.04

DIVIDEND

The Directors recommended a proportionate dividend of sixty paisa per share on 6% Non Cumulative Redeemable Preference Shares and Dividend of twenty five paisa per equity share for the year ended 31st March, 2012 for approval by the Members at the ensuing Annnual General Meeting. The dividend will be distributed to the members whose names appear on the register of members as on the date of Annual General Meeting.

HIGHLIGHT

During the year, your company has commissioned 383,625 MTPA of coal washery at Jamgaon, Raigarh.

The gross revenues from operations of the company have increased to Rs. 751.77 crore, registering a growth of 44.64% over previous year's level of Rs. 519.75 crore.

EXPANSION PROJECT

The company started its backward integration with capacity of 9 lacs MTPA of Beneficiation Plant, 6 lacs MTPA of Pellet Plant, 34 MW of Power Plant and 117,952 MTPA of Billet Plant. Pellet, Beneficiation and Power Plant has started trial production and your company will be in full control of EBITDA margins.

The company has option to sell the surplus pellet in the market to maximise the margins.

EXPORTS

During the year, the company has achieved the Export Turnover of Rs. 82.64 crore. Most of the exports were made to Nepal.

With firm commitment and through sustained efforts, your company has increased its rapport with customers in Nepal. Our product quality and timely delivery have found wide acceptance in the highly competitive international market.

CREDIT RATING

The Company's rating improved to "BBB " for long-term/ medium-term debt and various bank facilities sanctioned and/ or availed by the Company. Facilities with "CARE BBB " rating are considered to offer moderate safety for timely servicing of debt obligation. Such facilities carry moderate credit risk.

The Rating Committee reaffirmed the 'PR2' (PR Two) rating for short-term debt/facilities sanctioned and/or availed by the Company. Facilities with this rating will have an adequate capacity for timely payment of short- term debt obligation and carry higher credit risk.

The above rating continues to draw strength from promoters' experience, operational efficiency by virtue of having an integrated plant, production of value-added products fetching higher margins, increasing profit levels and moderate financial position.

CHANGE IN SHARE CAPITAL

i) Issue and allotment of preference share

During the year the company has issued and allotted 1,254,000 6% Non Cummulative Redeemable Preference Shares. The proceeds has been used in setting up of 34 MW Power Plant and expansion of Pellet Plant.

ii) Issue of Equity Shares on Preferential Basis

The Company has obtained approval of shareholders by postal ballot to issue 10,000,000 equity shares to specified persons on preferential basis and have duly allotted the shares. The company is in the process of making application to the stock exchange(s) where the shares of the company are listed to obtain in principle approval for listing of shares. The proceeds will be used up coming infrastructure development projects in Raigarh and to meet working capital requirements.

DIRECTORS

In accordance with the provisions of the Companies Act, 1956 and the Company's Articles of Association, Mr. Pavan Kumar Gupta, Director of the Company will retire by rotation at the ensuing AGM and being eligible, offers himself for reappointment.

Mr. Amit Mehta, Director of the Company will retire by rotation at the ensuing AGM and being eligible, offers himself for reappointment.

Necessary resolution for members approval for their reappointment forms part of the notice of the Annual General Meeting.

Your Directors recommend their re-appointment.

AUDITORS

M/s. S.R Batliboi & Co., Chartered Accountants, Statutory Auditors of the Company, retires at the ensuing Annual General Meeting and M/s B. Chhawchharia and Co., Chartered Accountants, be appointed as the Statutory Auditors of the Company at the ensuing Annual General Meeting till the conclusion of the next Annual General Meeting.

The Statutory auditors in their report for the year ended 31st March, 2011, had considered the income from commodity transactions as speculative in nature and have expressed their inability to ascertain the impact of the same on the tax expense and networth of the company. On the basis of expert opinion obtained, your company has considered the income from commodity transactions as business income. The management does not see any impact of these transactions on the tax expense and net worth of the company.

The Statutory auditors in the annexure to the auditors report for the year ended 31st March, 2012, had reported that short term funds amounting to Rs. 11,276.41 lacs, consisting of project creditors Rs. 5,061.98, unsecured loans Rs. 3,945.42 lacs and other short term borrowings Rs. 2,269.01 lacs have been used for long term investment towards acquisition of fixed assets. In this regard, the management would like to inform that the company had purchased the fixed assets on credit basis from the supplier which could have been paid by way of taking disbursement of term loan from banks. Unsecured loans has been brought in from corporates for part financing the expansion project. Your company has saved interest by purchasing capital goods on credit basis hence no negative impact of short term loan has been utilised for long term investments is there.

COST AUDITOR

Your Board has appointed Mr. S. Banerjee as Cost Auditor of the Company in accordance with the provisions of Section 233B of the Companies Act, 1956 read with Cost Accounting Records (Steel Plant) Rules, 1990, circular no. 15/2011[52/5/CAB-2011] dated 11th April, 2011 and circular no. 52/26/CAB- 2010 dated 3rd May, 2011 for the FY 2011-12 for conducting the cost audit of the Company relating to steel plant for the financial year ended 31st March, 2012.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the requirements of Section 217(2AA) of the Companies Act, 1956) your Directors hereby confirm that:

i) In the preparation of the annual accounts for the year ended 31st March, 2012, the applicable accounting standards were followed and no material departures were made from the same;

ii) The Directors 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 Company's state of the affairs at the end of the financial year ended 31st March, 2012 and the Company's profits for that period;

iii) The Directors took proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the Company's assets and for preventing and detecting frauds and other irregularities;

iv) The Directors have prepared the annual accounts on a going concern basis.

CORPORATE GOVERNANCE

Pursuant to Clause 49 of the Listing Agreement with the Stock Exchanges, the Corporate Governance Report, the Management Discussion and Analysis Report and a Certificate from Auditor regarding compliance of the conditions of Corporate Governance are annexed to this report.

SUBSIDIARIES & JOINT VENTURE

The consolidated financial statements presented by the Company include financial information of its subsidiaries prepared in compliance with applicable Accounting Standards. The Ministry of Corporate Affairs, Government of India vide its Circular No. 51/12/2007-CL-lll dated 8th February,2011 has granted general exemption under Section 212(8) of the Companies Act, 1956, from attaching the balance sheet, profit and loss account and other documents of the subsidiary companies to the balance sheet of the Company,provided certain conditions are fulfilled. Accordingly, annual accounts of the subsidiary companies and the related detailed information will be made available to the holding and subsidiary companies' investors seeking such information at any point of time. The annual accounts of the subsidiary companies will also be kept for inspection by any investor at its Corporate Office in Kolkata and that of the subsidiary companies concerned.

SOCIAL OBLIGATION

Your Company recognises that its business activities have direct and indirect impact on the society. The Company strives to integrate its business values and operations in an ethical and transparent manner to demonstrate its commitment to sustainable development and to meet the interests of its stakeholders. The Company is committed to continuously improving its social responsibilities, environment and economic practices to make positive impact on the society.

GUIDING PRINCIPLES

Create a positive footprint within the society to make a meaningful difference in the lives of people by continually aligning its initiatives to the goals for sustainable development.

Maintain commitment to quality, health and safety in every respect of the business and people.

Undertake ethical business practices across the supply chain.

Make positive impact on the environment and promote good environmental practices.

Promote equality of opportunity and diversity of workforce throughout its business operations.

It is evident that there is a paradigm shift in the thought process on social responsibility. Today is the time when organisations have realised that social commitment is very much part of their business. Martin Luther King's words resonate powerfully when he made this earnest call for social justice: "human progress is neither automatic nor inevitable". We are faced now with the fact that tomorrow is today. Your company aims :

At establishing and maintaining a dynamic organisational structure suited to meet present and future Company needs;

Attracting competent personnel with growth potential, and developing their maximum capabilities in a working environment through the provision of opportunities for advancement and other incentives;

Developing and sustaining a favourable employee attitude and obtaining maximum contribution from employees through stable employment, adequate salaries commensurate with the Company's capacity to pay and maintaining good and safe working conditions and job satisfaction;

? Establishing a system for redressal of employees' grievances in the shortest possible time;

Providing training facilities, internal and external, and other opportunities for self-development in their current job and for advancement;

The steel making process is a highly resource and energy intensive process. All steel plants have upgraded their production processes with clean technologies so as to minimise the impact on the environment. The various factories and undertakings of the organisation comply with the rules and regulations laid down by the various regulatory bodies including carrying out of various checks and inspections from time to time. Your Company is committed to protection of the environment and the promotion of responsible corporate policies that conserve and optimally utilise resources and at the same time, sustain the economic environment for growth.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

Information pursuant to Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 is annexed and forms a part of this report.

PARTICULARS OF EMPLOYEES

Particulars of remuneration paid in excess of limits as prescribed under Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 during the year under review is as follows.

Statement of the employees pursuant to Section 217(2A) of the Companies Act 1956,

Name & Qualification Age in Designation Date of years Employment

Mr. Puranmal Agrawal 63 Chairman 9th July, 2007 B. Com cum Whole time Director

Mr. Suresh Kumar Agrawal 59 Managing 9th July, 2007 B.E Mechanical Director

Name & Qualification Gross Experience Previous Remuneration (Yrs) Employment (Rs. in lacs)

Mr Puranmal Agarwal B.Com 36.00 23 -

Mr Suresh Kumar Agarwal B E Mechanical 30.00 18 -

ACKNOWLEDGEMENTS

Your Directors wish to place on record their gratitude for the valuable guidance and support given by the Government of India, various State Government departments, Financial Institutions, Banks and various stake holders such as Shareholders, Customers, Dealers, Suppliers and Investors during the year under review. Your Directors also wish to place on record their deep sense of appreciation for the commitment displayed by all executives, officers and staff of the Company, resulting in the successful performance of the Company during the year.

For and on behalf of the Board

Sd/-

Puranmal Agrawal

Place: Kolkata Chairman

Date: 14th August, 2012


Mar 31, 2010

We are delighted to present the report on our business & operations for the year ended March 31,2010

Financial Results

(Rs. In Lacs)

2008-09

Sales (Net of excise) & other income 39.585.38 41,386.89

Profit Before Depreciation 5,080.26 5,658.36

Less-. Depreciation 1.257.35 741.13

Profit Before Tax - 3,822.91 4,917.23

Less : Fringe Benefit Tax - 13.36

: Provision for Income Tax

(Oncluding earlier years) 214.65 257.13

: Provision for Deferred Tax 402.84 657.70

Net Profit 3,205.42 3,989.04

Add: Balance Brought Forward 11,057.79 7,068.75

Surplus carried to Balance Sheet 14.263.21 11,057.79

Dividend

Your Directors are pleased to recommend a final dividend of fifty paisa per equity share. The dividend will be distributed to the members whose names appears on the register of members as on the date of Annual General Meeting.

Operational Review

The financial year 2009-2010 can be described as one of recovery from global economic crises. The Indian steel Industry witnessed an upward trend during the previous year, it has huge scopes in the future with massive scale of infrastructural development happening all across the country. This upward trend is expected to be continued on account of favourable conditions like competitive prices,

increase in consumption of steel owing to upcoming infrastructure and Greenfield projects, highly skilled and low cost workforce etc.

In March 2010, the company commissioned a 128,000 TPA structural rolling mill in Raigarh to manufacture steel angles, beams, joists and channels. The manufacture of these products altered our exposure from vulnerable sectors to value- added infrastructure and power sector segments.

Your company achieved net turnover of Rs. 39,585.38 lacs and profit before tax of Rs. 3,822,91 lacs. Your company recorded net profit after taxes of Rs. 3,205.42 lacs and earned cash profit before tax of Rs. 4,865.61 lacs.

Projects & Expansion Plans Project commissioned during FY 2009-2010

Structural Rolling mill having capacity of 1,28,000 MTPA was commissioned in the year 2009-2010 in Raigarh to manufacture steel angles, joists and channels.

In October 2009, the company has received plug-in with the state utilitys 132 KVA line, which enabled to market power to the open market.

Project under progress

The company has lined up a number of business-strengthening initiatives for 2010-11:

We expect to commission the first phase of

the 1,15,000-tonne sponge iron plant by September 2010 and the second phase of 1,15,000 tonnes by June 2011 (financial closure achieved). This expansion will enhance our total sponge iron capacity to 4.22 lacs tpa.

In sync with sponge iron capacity expansion, we intend to bring on stream our 18 MW power plant (16 MW WHRB and balance based on coal). While around 30 percent of the capacity will address captive requirements, the rest will be deployed for profitable merchant sales. We expect to commission another 34 MW (thermal) by April 2012 at our Raigarh unit for merchant sales (financial closure in process).

We are undertaking an expansion at our coal Washery to raise our overall capacity by 3,40,000 tpa for Rs 60 cr (financial closure achieved).The construction of a 2.4-km railway siding has reduced transportation costs on the one hand and eased logistics on the other.

Credit Rating

Your Company retained its "BBB" rating by CARE for long-term/medium term debt and various Bank facilities sanctioned and/or availed by the Company. Facilities with "CARE B8B" rating are considered to offer moderate safety for timely servicing of debt obligation. Such facilities carry moderate credit risk.

The Rating Committee has reaffirmed the PR2 (PR Two) rating for short-term debt/facilities sanctioned and/or availed by the Company. Facilities with this rating

would have adequate capacity for timely payment of short- term debt obligation and carry higher credit risk.

The above rating continue to draw strength from the experience of the promoters, operational efficiency by virtue of having an integrated plant, production of value added products fetching higher margin, increasing profit level and moderate financial position.

Corporate Governance

A Management Discussion and Analysis Report, Corporate Governance Report, Company Secretary in practice Certificate regarding compliance of conditions of Corporate Governance pursuant to Clause 49 of the Listing Agreements with the Stock Exchanges, forms part of the Annual Report.

Social Obligation

Your Company believe that immediately after customers, human resource is its most important capital and the same need to be empowered in all possible ways for achieving objectives slated from time to time. In this regard, employees are subjected to periodical trainings for upliftment of their skills and familiarisation with latest techniques and practices, provided with most conducive working environment and always kept motivated by extending compensation packages and benefits most competitive in the Steel Industry in India.

The Companys plants comply with all norms set up for clean and better

environment by the competent authorities. The Company undertakes regular checks / inspections including certification for the maintenance of the environment, health and safety. The Company values environmental protection and safety as the major considerations in its functioning. The Company has adequate effluent Treatment Plants to prevent pollution. The Company is continuously endeavoring to improve the quality of life in the communities surrounding its industrial complex.

Directors Responsibility Statement

Pursuant to the requirements of Section 217 (2AA) of the Companies Act, 1956) your directors hereby confirm that.-

i) In the preparation of the annual accounts for the year ended March 31. 2010, the applicable accounting standards have been followed and no material departures have been made from the same:

ii) 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 the affairs of the Company at the end of the financial year ended March 31, 2010 and the Profit of the Company for that period;

iii) The 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;

iv) The Directors have prepared the annual accounts on a going concern basis.

Conservation Of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo

Information pursuant to Section 217(l)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 is annexed and forms a part of this report.

Particulars of Employees

Particulars of Remuneration paid in excess of limits as prescribed under Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 during the year under review is as follows



Statement of the Employees pursuant to Section 217(2A) of the Companies Act 1956,

Name of Director Age in years Designation Date of

Employment

Mr. Puranmal Agrawal 59 Chairman cum 07.06.2007

B. Com Whole time

Director

Mr. Suresh 57 Managing Director 07.06.2007

Kumar Agrawal

B.E Mechanical

Name of Director Gross Experience Previous

Remuneration (Yrs) Employment

(Rs in Lacs)

Mr. Puranmal Agrawal 36.00 21 -

B. Com

Mr. Suresh 30.00 16 -

Kumar Agrawal

B.E Mechanical

Auditors

M/s. S.R Batliboi & Co., Chartered Accountants,, retire at the ensuing Annual General Meeting, and have expressed their willingness to be re appointed.

Directors

In accordance with the provisions of the Companies Act, 1956 and the Companys Articles of Association, Mr. Manish Agrawal, Director of the Company will retire by rotation at the ensuing AGM and being eligible, offers himself for re- appointment.

Mr. Saket Agrawal, Director of the Company will retire by rotation at the ensuing AGM and being eligible, offers himself for re-appointment.

Acknowledgements

Your Directors would like to acknowledge and place on record their sincere appreciation of all stakeholders- shareholders, banks, dealers, vendors and other business partners for the excellent support received from them during the year. Your Directors recognize and appreciate the efforts and hard work of all the employees of the Company and their continued contribution to its progress.

For and on behalf of the Board



Place: Kolkata Puranmal Agrawal

Date: 28th June 2010 Chairman

 
Subscribe now to get personal finance updates in your inbox!