Mar 31, 2015
The Directors have pleasure in presenting 27th Annual Report together
with Audited Statement of Accounts of the Company for the year ended
31st March 2015.
1. OPERATIONAL PERFORMANCE Rs.in Lacs
Financial Results 31.03.2015 31.03.2014
Sales & Other Income 22685.00 27648.84
Gross Profit/loss 24.00 90.84
Depreciation and Financial Charges 11.08 15.81
Profit/loss before Tax 12.92 75.03
Provision for Tax 3.35 25.56
Deferred Tax (Assets)/Liabilities 4.06 73.09
Profit/loss After Tax 5.51 (23.62)
Exceptional items - 4.30
Profit after exceptional items 5.51 (19.32)
Your company is engaged only in trading activities of various products
including steel and agro commodities. Your company recorded a turnover
of Rs. 22675.89 Lacs for the year ended 31st March, 2015 as compared to
Rs. 27554.61 Lacs in the previous year and net profit of Rs. 5.51 Lacs
as compared to loss of Rs. 19.32 Lacs in the previous year. However,
the Company is exploring various other business opportunities so that
margin can be improved. During the year, there is no change in the
nature of the business of the company
2. DIVIDEND
Your Directors are not recommending any dividend for the period under
review to conserve the recourses.
3. SUBSIDIARY COMPANY
The Company is having a wholly owned subsidiary Company viz. RSAL Steel
Private Limited which is engaged in manufacturing and trading of HR
Coils, CRCA and other steel products. The Consolidated financial
statements presented by the Company include the financial results of
its Subsidiary Company.
The Gross Revenue of the subsidiary Company stood at Rs. 66,088.45 Lacs
as compared to Rs. 74,153.88 in the Previous year. Profit before tax
for the year stood at Rs. 343.96 Lacs as compared to Rs. 309.84 Lacs
in the previous year.
Pursuant to Section 129(3) of the Companies Act, 2013 read with Rule 5
of the Companies (Accounts) Rules, 2014, the statement containing
salient features of the financial statements of the Company's Wholly
owned Subsidiary in Form AOC-1 is attached to the financial statements.
The Company has no joint venture or associate Company.
None of the Companies which have become/ceased to be subsidiaries, JVs
or associate Companies during the year.
4. MATERIAL CHANGES BETWEEN THE DATE OF THE BOARD REPORT AND END OF
FINANCIAL YEAR
There have been no material changes and commitments, if any, affecting
the financial position of the Company which have occurred between the
end of the financial year of the Company to which the financial
statements relate and the date of the report.
5. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO
Your Directors have nothing to report on the aforesaid matters as your
company is not engaged in manufacturing has no foreign collaboration
and has not exported or imported any goods or services.
6. BUSINESS RISK MANAGEMENT
Pursuant to section 134 (3) (n) of the Companies Act, 2013 and listing
agreement the Company has framed a detailed Risk Management Policy for
assessment of risk and determine the responses to these risks so as to
minimize their adverse impact on the organization. The functional head
of the Company shall be responsible for implementation of the risk
management system as may be applicable to their respective areas of
functioning and report to the Board.
At present the Company has not identified any element of risk which may
threaten the existence of the company.
7. DIRECTORS
Mr. Kailash Chandra Shahra (DIN - 00062698), Director retires by
rotation in accordance with the provisions of the Companies Act, 2013
and Articles of Association of the Company and being eligible, offers
himself for re-appointment.
Mr. Umesh Shahra (DIN - 00061312), Managing Director was re-appointed
for a period of three year w.e.f. 1st October, 2014.
Ms. Ishita Khandelwal (DIN - 06932629), Ms. Puneet Bedi (DIN -
02178816), Mr. Vijay K Mahajan (DIN - 01367496) and Mr. Navin
Khandelwal (DIN - 00134217) were appointed as an Independent Directors
w.e.f. 25th September, 2014.
The Independent Directors of the Company have declared that they meet
the criteria of Independence in terms of Section 149(6) of the
Companies Act, 2013 and that there is no change in their status of
Independence.
8. KEY MANAGERIAL PERSONNEL
During the financial year:
Mr. Arvind Mishra who ceased to be Director and appointed as a Chief
Executive Officer (Key Managerial Personnel) of the Company;
Mr. Deepak Upadhyay (M. No. A 23717) was appointed as a Company
Secretary cum Compliance officer in place of Mr. Shyam Sunder Agrawal,
who resigned from the office of Company Secretary of the Company.
9. FIXED DEPOSITS
Your Company has not accepted any deposits within the meaning of
Section 73 of the Companies Act, 2013 and the Companies (Acceptance of
Deposits) Rules, 2014.
10. MEETINGS
A calendar of Meetings is prepared and circulated in advance to the
Directors. During the year, four Board Meetings, four Audit Committee
Meetings, three Nomination and Remuneration Meeting and four
Stakeholder Relationship Committee were convened and held. The details
of which are given in the Corporate Governance Report. The intervening
gap between the Meetings was within the period prescribed under the
Companies Act, 2013.
11. DIRECTOR'S RESPONSIBILITY STATEMENT
In terms of Section 134 (5) of the Companies Act, 2013, the directors
would like to state that:
i) In the preparation of the annual accounts, the applicable accounting
standards have been followed.
ii) The directors have selected such accounting policies and applied
them consistently and made
judgments and estimates that were 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 the
year under review.
iii) The directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act 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.
v) The directors had laid down internal financial controls to be
followed by the company and that such internal financial controls are
adequate and were operating effectively.
vi) The directors had devised proper system to ensure compliance with
the provisions of all applicable laws and that such system were
adequate and operating effectively.
12. POLICY FOR APPOINTMENT OF DIRECTOR, KMP AND SENIOR MANAGEMENT AND
THEIR REMUNERATION
The Board has, on the recommendation of the Nomination & Remuneration
Committee framed a policy for appointment of Directors, KMP and Senior
Management and their remuneration. The said Policy is stated in the
Corporate Governance Report.
13. AUDITORS
M/s Arun Maheshwari & Co., Chartered Accountants Auditors of the
Company hold office upto the conclusion of forthcoming Annual General
Meeting and being eligible, offer themselves for re- appointment.
Further, the Company has received confirmation from the Auditors
regarding their consent and eligibility under Sections 139 and 141 of
the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014
for appointment as the Auditors of the Company. Your board recommends
their re-appointment.
14. SECRETARIAL AUDIT
Pursuant to provisions of section 204 of the Companies Act, 2013 and
the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014, the company has appointed M/s Sonal Kanungo & Co., a firm
of company Secretaries in practice to undertake the Secretarial Audit
of the Company for the financial year 2014-15. The Secretarial Audit
report is annexed herewith as "Annexure A"
15. AUDITORS' AND SECRETARIAL AUDITORS' REPORT
There are no qualifications or observations or adverse remarks made by
the Auditors in Statutory and Secretarial Audit Report.
16. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS BY COMPANY
Details of Loans, Guarantees and Investments covered under the
provisions of Section 186 of the Companies Act, 2013 are given in the
notes to the Financial Statements.
17. RELATED PARTY TRANSACTIONS
All related party transactions that were entered into during the
financial year were on arm's length basis and were in the ordinary
course of the business. There are no materially significant related
party transactions made by the company with Promoters, Key Managerial
Personnel or other designated persons which may have potential conflict
with interest of the Company at large.
18. CORPORATE SOCIAL RESPONSIBILITY
The Company is not required to constitute a Corporate Social
Responsibility Committee, as it does not fall within purview of Section
135(1) of the Companies Act, 2013 and hence it is not required to
formulate policy on corporate social responsibility.
19. 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 Board Committees. The manner in which the
evaluation has been carried out has been explained in the Corporate
Governance Report.
20. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY'S
OPERATIONS IN FUTURE
During the year under review, there has been no such significant and
material orders passed by the regulators or courts or tribunals
impacting the going concern status and company's operations in future.
21. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an Internal Control System, commensurate with the size,
scale and complexity of its operations. The scope and authority of the
Internal Audit function is defined in the Internal Audit Manual. To
maintain its objectivity and independence, the Internal Audit function
reports to the Chairman of the Audit Committee of the Board.
The Internal Auditor monitors and evaluates the efficacy and adequacy
of internal control system in the Company, its compliance with
operating systems, accounting procedures and policies of the Company.
Based on the report of internal audit function and process, owners
undertake corrective action in their respective areas and thereby
strengthen the controls. Significant audit observations and
recommendations along with corrective actions thereon are presented to
the Audit Committee of the Board.
The Internal financial controls with reference to the financial
statements were adequate and operating effectively.
22. WHISTLE BLOWER POLICY/ VIGIL MECHANISM
The Company has framed Whistle Blower Policy and established a
mechanism called the vigil mechanism for directors and employee to
report concerns of unethical behavior, actual or suspected fraud or
violation of the Company's code of conduct or ethics policy.
The said Policy ensures that strict confidentiality is maintained
whilst dealing with concerns and also that no discrimination will be
meted out to any person for a genuinely raised concern.
23. PARTICULARS OF EMPLOYEES
Disclosures pertaining to remuneration and other details as required
under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of
the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 are provided in the Annexure-B forming part of the Annual
Report. The said information maybe provided to the Members upon
request.
24. CORPORATE GOVERNANCE
Corporate Governance Report is enclosed as part of Directors' Report.
25. DETAILS OF SEXUAL HARASSMENT COMPLAINTS
Details of complaints under Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013,
1. Number of complaint of Sexual harassment received in the year:- NIL
2. Number of complaint disposed off during the year:- NIL
26. PREVENTION OF INSIDER TRADING
The Company has adopted a Code of Conduct for Prevention of Insider
Trading with a view to regulate trading in securities by the Directors
and designated employees of the Company in accordance with the SEBI
(Prohibition of Insider Trading) Regulations, 2015.
The Code requires pre-clearance for dealing in the Company's shares and
prohibits the purchase or sale of Company 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 Board Directors and the designated
employees have confirmed compliance with the Code.
27. EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form
MGT-9 is annexed herewith as "Annexure C".
28. LISTING AT STOCK EXCHANGES
The Company's Equity Shares continues to be listed on Bombay Stock
Exchange Limited (BSE).
29. MANAGING DIRECTOR & CHIEF FINANCIAL OFFICER CERTIFICATION
The Board of Directors have received certificate from Managing Director
and CFO under Clause 49(IX) of listing agreement.
30. INDUSTRIAL RELATIONS
Relations with the employees continued to remain cordial throughout the
year. Your Directors wish to place on record their appreciation for
sincere and dedicated services rendered by the executives, staff and
workers at all levels.
31. ACKNOWLEDGMENT
The Directors wish to place on record their appreciation for the
sincere co-operation extended by the shareholders, Bankers and all
other Government Agencies in carrying out the business of the Company.
By order of the Board of Directors
Place: Indore Kailash Chandra Shahra
Date : 10th August, 2015 Chairman
DIN: 00062698
Mar 31, 2014
Dear Members
The Directors have pleasure in presenting 26th Annual Report together
with Audited Statement of Accounts of the Company for the year ended 31
st March 2014.
1. OPERATIONAL PERFORMANCE [Rs. in lacs] [Rs. in lacs]
Financial Results 31.03.2014 31.03.2013
(12 Months) (18 Months)
Sales & Other Income 27648.84 55478.03
Gross Profit/(Loss) 90.84 922.46
Depreciation and Financial charges 15.81 693.01
Profit/(Loss) before tax 75.03 229.45
Provision for Tax 25.56 45.91
Deferred Tax (Assets)/Liabilities 73.09 64.59
Profit/(Loss) after Tax (23.62) 118.95
Exceptional items 4.30 0.00
Profit after exceptional items (19.32) 118.95
Your company is engaged only in trading activities of various products
including steel and agro commodities. Your company recorded a turnover
of Rs. 27554.61 Lacs for the year ended 31st March, 2014 as compared to
Rs. 55327.08 Lacs in the previous eighteen months and net loss of Rs.
19.32 Lacs as compared to Profit of Rs. 118.95 Lacs in the previous
eighteen months. However, the Company is exploring various other
business opportunities so that margin can be improved.
2. SUBSIDIARY COMPANY
The Company is having a wholly owned subsidiary Company viz. RSAL Steel
Private Limited which is engaged in manufacturing and trading of HR
Coils, CRCA and other steel products. The Consolidated financial
statements presented by the Company include the financial results of
its Subsidiary Company. Further, a statement containing the particulars
prescribed by general circular issued by Ministry of Corporate Affairs,
Government of India for Company''s subsidiaries is also forming part of
the Consolidated financial statements.
3. DIVIDEND
Your Directors express their inability to recommend any dividend for
the period under review, due to the need for conserving funds.
4. DIRECTORS
(i) Mr. Veer Kumar Jain resigned from the Directorship w.e.f. 13th
August, 2014.Your Directors place on record their appreciation for
guidance given by him during his period.
(ii) The Board of Directors appointed Ms. Puneet Bedi and Ms. Ishita
Khandelwal as additional Directors of the Company w.e.f. 13th August,
2014. They are also proposed to be appointed as Independent Directors
in ensuing Annual General Meeting.
(iii) Mr. Umesh Shahra re-appointed as a Managing Director of the
Company w.e.f. 1st October, 2014 for a period of three year subject to
approval of Central Government, if required and Members.
(iv) Mr. Manish Jain, Director retires by rotation in accordance with
the provisions of the Companies Act, 2013 and Articles of Association
of the Company and being eligible, offers himself for re-appointment.
5. CORPORATE GOVERNANCE
Corporate Governance Report is enclosed as part of Directors'' Report.
6. FIXED DEPOSITS
During the Financial Year, Company has accepted deposits in accordance
with provisions of Section 58Aof the Companies Act, 1956 and rules made
there under. The Company has also complied the provisions of Sec.74 of
the Companies Act, 2013 and rules made thereunder.
7. DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to provisions of Section 217 (2AA) of the Companies Act, 1956,
the Board confirms:
(i) That in the preparation of annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departure;
(ii) 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;
(iii) That 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) That the Directors have prepared theAnnual Accounts on a going
concern basis.
8. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO
Particulars with respect to Conservation of Energy, Technology
Absorption and Foreign Exchange Earning & Outgo are nil during the
period under review.
9. AUDITORS
M/sArun Maheshwari & Co.Chartered Accountants, Auditors of the
Company hold office upto the conclusion of forthcoming Annual General
Meeting and being eligible, offer themselves for re-appointment. Your
board recommends their re-appointment.
10. AUDITOR''S REPORT
Report of the Auditors and their observations on the Accounts of the
Company for the year under review is self-explanatory.
11. LISTING AT STOCK EXCHANGES
The Company''s Equity Shares continues to be listed on Bombay Stock
Exchange Limited (BSE).
12. MD & CFO CERTIFICATION
The Board of Directors have received certificate from Managing Director
and CFO under Clause 49(v) of listing agreement.
13. PARTICULARS OF EMPLOYEE''S
None of the employee of the company was paid remuneration in excess of
the limit. Therefore, the particulars of employees, as required by the
provisions of section 217(2A) of the Companies Act, 1956 read with
Companies (Particulars of Employee) Rules,1975, as amended by the
Companies (Amended)Act,1988 are nil.
14. INDUSTRIAL RELATIONS
Relations with the employees continued to remain cordial throughout the
year.Your Directors wish to place on record their appreciation for
sincere and dedicated services rendered by the executives, staff and
workers at all levels.
15. ACKNOWLEDGEMENT
The Directors wish to place on record their appreciation for the
sincere co-operation extended by the shareholders,Bankers and all
other Government Agencies in carrying out the business of the Company.
By order of the Board of Directors
Kailash Chandra Shahra
Chairman
Place: Indore
Date : 13th August, 2014
Mar 31, 2013
To, The Members
The Directors have pleasure in presenting 25th Annual Report together
with Audited Statement of Accounts of the Company for the year ended
31st March, 2013.
1. OPERATIONAL PERFORMANCE
[ Rs. in lacs] [ Rs. in lacs]
Financial Results 31.03.2013 30.09.2011
(18 Months) (18 Months)
Sales & Other Income 55478.03 101549.61
Gross Profit / (Loss) 922.46 3995.68
Depreciation and Financial Charges 693.01 2341.09
Profit / (Loss) before Tax 229.45 1654.59
Provision for Tax 45.91 329.77
Deferred Tax (Assets) / Liabilities 64.59 401.27
Profit / (Loss) after Tax 118.95 923.55
Exceptional Items 335.04
Profit after exceptional Items 118.95 1258.59
After transferring the Steel Division of the Company to its wholly
owned subsidiary company namely, RSAL Steel Private Limited on 30th
March, 2011, your Company is engaged only in trading activities of
various products including steel and agro commodities. Your Company
recorded a turnover of Rs. 55327.08 Lacs for the eighteen months ended
31st March, 2013 and net profit of Rs. 118.95 Lacs. As the previous
year''s figures include the turnover from manufacturing activities which
was transferred to subsidiary company hence, the same is not comparable
with the figures of current year. However, the Company is exploring
various other business opportunities.
SUBSIDIARY COMPANY
The Company is having a wholly owned subsidiary company viz RSAL Steel
Private Limited which is engaged in manufacturing and trading of HR
Coils, CRCA and other steel products. The Consolidated financial
statements presented by the Company include the financial results of
its subsidiary company. Further a statement containing the particulars
prescribed by general circular issued by Ministry of Corporate Affairs,
Government of India for Company''s subsidiaries is also forming part of
the consolidated financial statements.
2. SALE OF COMPANY''S STEEL DIVISION
The Company has sold its Steel Division as a going concern with its
Assets & Liabilities on as-is-where-is basis by way of ''Slump Sale'' to
its wholly owned subsidiary company namely ''RSAL Steel Private Limited''
by entering into Slump Sale Agreement on 30th March, 2011. The Company
has obtained the requisite sanctions/approvals from all its lender
banks regarding transferring assets and liabilities from the Company to
''RSAL Steel Private Limited'' except transfer of Working Capital Term
Loan (WCTL) from State Bank of India (SBI).
On 5th March, 2013, SBI granted the approval for transfer of WCTL from
Ruchi Strips And Alloys Limited to RSAL Steel Private Limited. The
Banks have approved the transfer of working capital limit and term
loans with stipulation of corporate guarantee of our Company.
After receipt of approval the subsidiary company has taken steps to get
registration of sale deed with Registrar, Dhar. Registration of sale
deed is pending with them as and when the same will be completed our
Company will take necessary steps to get satisfy the charges with
Registrar of Companies.
3. DIVIDEND
Your Directors express their inability to recommend any dividend for
the period under review, due to the need for conserving funds.
4. DIRECTORS
Mr. Arvind Mishra and Mr. Ashok Khasgiwala, Directors retire by
rotation in accordance with the provisions of the Companies Act, 1956
and Articles of Association of the Company and being eligible, offer
themselves for re- appointment.
5. CORPORATE GOVERNANCE
Corporate Governance Report is enclosed as a part of Director''s Report.
6. FIXED DEPOSITS
During the Financial Year, Company has accepted deposits in accordance
with provisions of Section 58A of the Companies Act, 1956 and rules
made there under.
7. DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to provisions of Section 217 (2AA) of the Companies Act, 1956,
the Board confirms:
(i) That in the preparation of annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departure ;
(ii) 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;
(iii) That 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) That the Directors have prepared the Annual Accounts on a going
concern basis.
8. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION
Particulars with respect to Conservation of Energy, Technology
Absorption and Foreign Exchange Earning & Outgo are nil during the
period under review.
9. AUDITORS
M/s Arun Maheshwari & Co., Chartered Accountants, Auditors of the
Company hold office upto the conclusion of forthcoming Annual General
Meeting and being eligible, offer themselves for re-appointment. Your
board recommends their reappointment.
10. AUDITOR''S REPORT
Report of the Auditors and their observations on the Accounts of the
Company for the year under review is self- explanatory.
11. LISTING AT STOCK EXCHANGES
Company''s Equity Shares continues to be listed on Bombay Stock Exchange
Limited (BSE).
12. CEO & CFO CERTIFICATION
The Board of Directors have received certificate from Managing Director
and CFO under Clause 49(v) of listing agreement.
13. PARTICULARS OF EMPLOYEE''S
None of the employee of the Company was paid remuneration in excess of
the limit. Therefore, the particulars of employees, as required by the
provisions of section 217(2A) of the Companies Act, 1956 read with
Companies (Particulars of Employee) Rules,1975, as amended by the
Companies (Amended) Act,1988 are nil.
14. INDUSTRIAL RELATIONS
Relations with the employees continued to remain cordial throughout the
year. Your Directors wish to place on record their appreciation for
sincere and dedicated services rendered by the executives, staff and
workers at all levels.
15. ACKNOWLEDGEMENT
The Directors wish to place on record their appreciation for the
sincere cooperation extended by the shareholders, Bankers and all other
Government Agencies in carrying out the business of the Company.
By order of the Board of Directors
Place : Indore Kailash Chandra Shahra
Date : 9th August, 2013 Chairman
Mar 31, 2010
The Directors have pleasure in presenting 23rd Annual Report together
with Audited Statement of Accounts of the Company for the year ended
31st March, 2010.
1. OPERATIONAL PERFORMANCE
(Rs. in lacs)
Financial Results 31.03.2010 31.03.2009
Sales & Other Income 67499.90 55398.58
Gross Profit/(Loss) 2907.53 (964.81)
Depreciation and Interest 2391.89 2349.76
Profit/(Loss) before Tax 515.64 (3314.57)
Provision for Tax 15.97 (29.43)
Deferred Tax (Assets)/Liabilities 175.18 1126.71)
Profit after Tax 324.49 (2158.43)
2. DIVIDEND
Due to inadequate profit of the Company in financial year 2009-10, your
Directors express their inability to recommend any dividend for the
year under review.
3. DIRECTORS
Shri Ashok Khasgiwala, Shri Manish Jain and Shri Navin Khandelwal,
Directors retire by rotation in accordance with the provisions of the
Companies Act, 1956 and Articles of Association of the Company and
being eligible, offer themselves for re-appointment.
During the current year, Shri Santosh Kumar Shahra, Vice-Chairman of
the Company has resigned from the Board after serving for more than 21
years. We sincerely appreciate and acknowledge the valued contribution
made by him in the success and growth of the Company.
4. CORPORATE GOVERNANCE
Corporate Governance Report is enclosed as a part of Directors Report.
5. FIXED DEPOSITS
During the Financial Year, Company has accepted deposits in accordance
with provisions of Section 58A of the Companies Act, 1956 and rules
made there under.
6. PREFERENTIAL ALLOTMENT OF 95,47,075 EQUITYSHARES
The Board of Directors at their meeting held on 25* January 2010 have
allotted 95,47,075 equity shares of Rs. 10/-each at premium of Rs. 1.05
per equity share on preferential basis to promoters and others and has
complied with all applicable provisions.
7. ALLOTMENT OF 9,50,000 5% NON -CUMULATIVE REDEEMABLE PREFERENCE
SHARES OF RS. 100/- EACH
The Board of Directors at their meeting held on 14th December, 2009
have allotted 9,50,000, 5% Non Cumulative Redeemable Preference Shares
of Rs. 100/- each to its existing preference shareholders and has
complied with all applicable provisions.
8. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to provisions of Section 217 (2AA) of the Companies Act, 1956,
the Board confirms:
(i) that in the preparation of annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departure;
(ii) 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;
(iii) that 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;
(i v) that the Directors have prepared the Annual Accounts on a going
concern basis.
9. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
EARNING AND OUTGO
Details of Energy conservation and Research and Development activities
undertaken by the Company alongwith the information in accordance with
the provisions of section 21 7 (1) (e) of the Companies Act, 1956 read
with the Companies (Disclosure of particulars in the Report of the
Board of Directors) Rules, 1988 are given as Annexure to this Report.
10. AUDITORS
M/s Arun Maheshwari & Company, Chartered Accountants, Auditor of the
Company hold office upto the conclusion of forthcoming Annual General
Meeting and being eligible, offer themselves for re-appointment. Your
board recommends their reappointment.
11. AUDITORS REPORT
Auditors Report is self-explanatory except qualification regarding
confirmation and reconciliation of balances of debtors, creditors,
advances and deposits. The same has been explained at Note no. 15 of
Notes on Accounts.
12. LISTING AT STOCK EXCHANGES
Companys Equity Shares continue to be listed on Bombay Stock Exchange
Limited (BSE).
13. CEO &CFO CERTIFICATION
The Board of Directors have received certificate from Managing Director
and CFO under Clause 49(v) of listing agreement.
14. PARTICULARS OF EMPLOYEES
None of the employee of the company was paid remuneration in excess of
the limit. Therefore, the particulars of employees, as required by the
provisions of section 217(2A) of the Companies Act, 1956 read with
Companies (Particulars of Employee) Rules,1975, as amended by the
Companies (Amendment) Act, 1988 are nil.
15. INDUSTRIAL RELATIONS
Relations with the employees continued to remain cordial throughout the
year. Your Directors wish to place on record their appreciation for
sincere and dedicated services rendered by the executives, staff and
workers at all levels.
16. ACKNOWLEDGEMENT
The Directors wish to place on record their appreciation for the
sincere cooperation extended by the shareholders, Bankers and all other
Government Agencies in carrying outthe business of the Company.
By Order of the Board of Directors
Place: Indore Kailash Chandra Shahra
Date : 25th August, 2010 Chairman
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