Mar 31, 2015
Dear Members,
The Directors present herewith the Twenty Eighth Annual Report together
with the Audited Standalone Accounts of the Company for the year ended
March 31,2015.
FINANCIAL RESULTS (STANDALONE)
Rs in Lacs
Year Ended Year Ended
Description 31-03-2015 31-03-2014
Other Income 0.52 -
TOTAL REVENUE 0.52 -
Loss before exceptional and (57.27) (40.20)
extraordinary and tax
Exceptional Items 10.80 -
Loss before extraordinary (68.07) (40.20)
items and tax
Extra-ordinary Items - -
Loss before Tax (68.07) (40.20)
Tax Expense - -
Loss for the year (68.07) (40.20)
OPERATIONS:
The Company is in the process of setting up Thermal Power Projects at
various locations more particularly in Tamilnadu. The project at
Tamilnadu is consisting of 3X660 MW i.e. 1980 MW capacity is being set
up by the Wholly Owned Subsidiary SRM Energy Tamilnadu Pvt. Ltd. As
such there are no other operations at present and the related expenses
incurred during the current period are considered as pre operative
expenses pending allocation to the power project.
The Company proposes to induct financial / strategic investor into the
subsidiary to take care of the equity requirements. Subsequently,
significant portion of the debt requirements is proposed to be met
through loans from the Chinese Banks Consortium. For meeting the
domestic debt requirements, the.Company proposes to mandate one of the
leading banks / financial institutions.
Though the Group's networth has been significantly reduced and it has
been incurring cash losses, the promoters have infused funds by way of
unsecured loan and are committed to provide necessary funding to meet
the liabilities and future running expenses of the Group. Further, the
Board of Directors of the Company, in its meeting held on March 09,
2015 have decided to sell/dispose off the Power plant transferred in
its wholly owned subsidiary, subject to necessary approvals from the
shareholders and other statutory authorities, if any. In view of above
developments, the accounts have been prepared under going concern
basis.
The power plant in the wholly owned subsidiary, which is intended to be
sold /disposed off as explained above, is in Pre-operative stage and no
expenses have been charged to Statement of Profit and Loss.
Accordingly, the loss for the year does not include any loss relating
to ordinary activities attributable to discontinuing operations.
DIVIDEND
As the Power project is under implementation and there is no operating
income, your directors are not in a position to recommend any dividend.
MANAGEMENT'S DISCUSSION AND ANALYSIS REPORT
Management's Discussion and Analysis Report for the year under review,
as stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges in India, is presented in a separate section forming part of
the Annual Report.
CONSOLIDATED FINANCIAL STATEMENT
In accordance with the Companies Act, 2013 ("the Act") and Accounting
Standard (AS)-21 on Consolidated Financial Statements read with AS - 23
on Accounting for Investments in Associates and AS - 27 on Financial
Reporting of Interests in Joint Ventures, the audited consolidated
financial statement is provided in the Annual Report.
SUBSIDIARY COMPANY & RELATED COMPLIANCES
Your Company has one wholly owned subsidiary company viz. SRM Energy
Tamilnadu Private Limited, which does not have any operations at
present. A report on the performance and financial position is provided
as Note 25 to the consolidated financial statement and hence not
repeated here for the sake of brevity.
* No Companies which have become subsidiaries during the financial year
2014-15:
* No Companies which ceased to be subsidiaries during the financial
year 2014-15:
* No company has become/ceased to be a joint venture or associate
during the financial year 2014-15.
The Policy for determining material subsidiaries as approved may be
accessed on the Company's website at the link:
http://www.srmenerav.in/Data/Documents SRM% 20Enerav
%20-%200D%20-%20Policy %20 for%20 Determining %20 Material% 20
Subsidiarv.pdf
However, the annual accounts of the subsidiary company and the related
detailed information are available to the shareholders of the holding
and subsidiary companies seeking such information at any point of time.
The annual accounts of the subsidiary company are kept for inspection
by any shareholder at the Registered office of the holding company and
of the subsidiary company concerned and a note to the above effect will
be included in the annual report of the holding company.
DIRECTORS' RESPONSIBILITY STATEMENT
Your Directors state that:
a) in the preparation of the annua! accounts for the year ended March
31,2015, the applicable accounting standards read with requirements-set
out under Schedule III to the Act, have been followed and there are no
material departures from the same;
b) 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 as at March 31, 2015 and of the profit of the Company
for the year ended on that date;
c) the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
d) the Directors have prepared the annual accounts on a 'going concern'
basis;
e) the Directors have laid down internal financial controls to be
followed by the Company and that such internal financial controls are
adequate and are operating effectively; and
f) the Directors have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems are adequate
and operating effectively.
CORPORATE GOVERNANCE
Your Company has implemented the conditions of Corporate Governance as
contained in Clause 49 of listing agreement. Separate reports on
Corporate Governance along with necessary certificates are given
elsewhere in this Annual Report.
CONTRACTS AND 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 an arm's length basis. During the year, the
Company had not entered into any contract / arrangement / transaction
with related parties which could be considered materia! in accordance
with the policy of the Company on materiality of related party
transactions.
The Policy on materiality of related party transactions and dealing
with related party transactions as approved by the Board may be
accessed on the Company's website at the link: http://www.srmenerov.
ln./Daia/Documents/SRM%20Enerqv%20-%200D%2Q-%20Policv%2Qon%20Dealina%2[)
with%20 Related%20Party%20Transactions.pdf
Your Directors draw attention of the members to Note 22 to the
financial statement which sets out related party disclosures.
RISK MANAGEMENT
During the year, your Directors have constituted a Risk Management
Committee which has been entrusted with the responsibility to assist
the Board in (a) Overseeing and approving the Company's enterprise wide
risk management framework; and (b) Overseeing that all the risks that
the organization faces such as strategic, financial, credit, market,
liquidity, security, property, IT, legal, regulatory, reputational and
other risks have been identified and assessed and there is an adequate
risk management infrastructure in place capable of addressing those
risks. The Company manages, monitors and reports on the principal risks
and uncertainties that can impact its ability to achieve its strategic
objectives.
INTERNAL FINANCIAL CONTROLS
The Company has in place adequate internal financial controls with
reference to financial statements. During the year, such controls were
tested and no reportable material weakness in the design or operation
was observed.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
In accordance with the provisions of the Act and the Articles of
Association of the Company, Mr. Vishal Rastogi, Managing Director of
the Company will retire by rotation at the forthcoming Annual General
Meeting and being eligible have offered themselves for re-appointment
as Director of the Company, liable to retire by rotation, in the said
meeting.
Mr. Gagan Rastogi, Director of the Company resigned from the Board on
November 14, 2014. The Board places on record its deep appreciation for
the valuable contribution made by him during his tenure as Director of
the Company.
During the year under review, the members approved the appointments of
Ms. Tanu Agarwal as an Additional Director of the Company pursuant to
the provisions of Sections 161 of the Companies Act, 2013, and Article
170 of the Company's Articles of Association under Non Executive Women
Director Category w.e.f. April 01, 2015.
In terms of Section 161 (1) of the Act, Ms. Tanu Agarwal holds office
only upto the date of the forthcoming AGM but is eligible for
appointment as a Director. A notice under Section 160(1) of the
Companies Act, 2013, has been received from a Member signifying its
intention to propose the appointment of Ms. Tanu Agarwal as a Director
of the Company, subject to approval of the Members in the ensuing
annual general meeting, whose office shall be liable to retire by
rotation. The Resolutions seeking approval of the members for their
appointment as Directors have been incorporated in the Notice Convening
the Annual General Meeting.
Presently, Mr. Pranav Kumar, Mr. Sameer Rajpal and Mr. Vijay Sharma are
the Independent Directors of the Company. Independent Directors of the
Company confirming that they meet the criteria of independence as
prescribed both under the Act and Clause 49 of the Listing Agreement
with the Stock Exchanges.
The Company has devised a Policy for performance evaluation of
Independent Directors, Board, Committees and other individual Directors
which include criteria for performance evaluation of the non- executive
directors and executive directors.
On the basis of the Policy for performance evaluation of Independent
Directors, Board, Committees and other individual Directors, a process
of evaluation was followed by the Board for its own performance and
that of its Committees and individual Directors.
The details of programmes for familiarisation of Independent Directors
with the Company, their roles, rights, responsibilities in the Company,
nature of the industry in which the Company operates, business model of
the Company and related matters are put up on the website of the
Company at the link: http://www.
srmenerqv.in/Data/Documents/SRM%20Enerqy%20-%2QOD%20-%20
Familiarisation%20Process%20 Policy.odf
The following policies of the Company are attached herewith marked as
Annexure 1 and Annexure 2:
1) Policy for selection of Directors and determining Directors
independence; and
2) Remuneration Policy for Directors, Key Managerial Personnel and
other employees.
Brief profile of the Director proposed to be reappointed as required
under Clause 49 of the Listing Agreement are annexed to the Notice of
Annual General Meeting forming part of this Annual Report.
AUDITORS AND STATUTORS'S REPORT
Statutory Auditors
The present Statutory Auditors of the Company M/s Haribhakti & Co.,
Chartered Accountants (CAs), (Firm registration No. 103523W) Mumbai,
have resigned on August 13,2015.
In view of the above, the Board received a proposal to appoint M/s
Vatss & Associates, Chartered Accountants, Gurgaon, (Firm registration
No. 017573N, as Statutory Auditors of the Company to hold office from
the conclusion of this Annual General Meeting (AGM) until the
conclusion of the Thirty Third AGM of the Company to be held in the
year 2020 (subject to ratification of their appointment at every AGM),
to examine and audit the accounts of the Company at Mumbai. They have
confirmed their eligibility to the effect that their appointment, if
made, would be within the prescribed limits under the Act and that they
are not disqualified for re-appointment.
Statutors's Report
Though the Group's networth has been significantly reduced and it. has
been incurring cash losses, the promoters have infused funds by way of
unsecured loan and are committed to provide necessary funding to meet
the liabilities and future running expenses of the Group. Further, the
Board of Directors of the Company, in its meeting held on March 09,2015
have decided to sell / dispose off the Power plant transferred in its
wholly owned subsidiary, subject to necessary approvals from the
shareholders and other statutory authorities, if any. In view of above
developments, the accounts have been prepared undergoing concern basis.
The power plant in the wholly owned subsidiary, which is intended to be
sold / disposed off as explained above, is in Pre-operative stage and
no expenses have been charged to Statement of Profit and Loss.
Accordingly, the loss for the year does not include any loss relating
to ordinary activities attributable to discontinuing operations.
The Notes on financial statement referred to in the Auditors' Report
are self-explanatory and do not call for any further comments. The
Auditors' Report does not contain any qualification, reservation or
adverse remark.
Secretarial Auditor
The Board has appointed Mrs. Ritika Agarwal, Practising Company
Secretary, to conduct Secretarial Audit for the financial year 2014-15.
The Secretarial Audit Report for the financial year ended March 31,
2015 is annexed herewith marked as Annexure 3 to this Report. The
Secretarial Audit Report does not contain any qualification,
reservation or adverse remark.
DISCLOSURES:
Audit Committee
The Audit Committee comprises Independent Directors namely Mr. Sameer
Rajpal -Chairman, Mr. Vijay Sharma and Mr. Vishal Rastogi as other
members. All the recommendations made by the Audit Committee were
accepted by the Board.
Vigil Mechanism
The Vigil Mechanism of the Company, which also incorporates a whistle
blower policy in terms of the Listing Agreement, includes an Ethics &
Compliance Task Force comprising senior executives of the Company.
Protected disclosures can be made by a whistle blower through an
e-mail, or dedicated telephone line or a letter to the Task Force or to
the Chairman of the Audit Committee.
The Policy on vigil mechanism and whistle blower policy may be accessed
on the Company's website at the link: http://www.srmenerqy.in /Data/
Documents/ SRM%20 Energy%20-%200D%20-%20Whistle%20 Blower.pdf
Meetings of the Board
Seven meetings of the Board of Directors were held during the year. For
further details, please refer report on Corporate Governance of this
Annual Report.
Particulars of Loans given, Investments made, Guarantees given and
Securities provided
Particulars of loans given, investments made, guarantees given and
securities provided along with the purpose for which the loan or
guarantee or security is proposed to be utilized by the recipient are
provided in the standalone financial statement.
Extract of Annual Return
Extract of Annual Return of the Company is annexed herewith as Annexure
4 to this Report.
Particulars of Employees and related disclosures
Since no employee is receiving remuneration in excess of limit
specified under the provisions of provisions of Section 197(12) of the
Act read with Rules 5(2) and 5(3) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, Statement of
particulars of employees do not form part of the report.
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
Statement of particulars under Section 134(3)(m) the Companies Act,
2013 read with relevant Rules regarding Conservation of Energy and
Technology Absorption are presently not applicable to the Company.
GENERAL
Your Directors state that no disclosure or reporting is required in
respect of the following items as there were no transactions on these
items during the year under review:
1. Details relating to the Corporate Social Responsibility and
Governance indicating the activities to be undertaken by the Company,
as the Section 135 of the Act are not applicable to the Company
2. Details relating to deposits covered under Chapter V of the Act.
4. Issue of equity shares with differential rights as to dividend,
voting or otherwise.
5. Issue of shares (including sweat equity shares) to employees of the
Company under any scheme save and except ESOS referred to in this
Report.
6. Neitherthe Managing Director nor the Whole-time Directors of the
Company receive any remuneration or commission from any of its
subsidiaries.
7. No significant or material orders were passed by the Regulators or
Courts or Tribunals which impact the going concern status and Company's
operations in future.
8. Your Directors further state that during the year under review,
there were no cases filed pursuant to the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal )Act, 2013.
APPRECIATION
Your Directors wish to express their sincere appreciation to the
Central Government, the State Governments, bankers and the business
associates for their excellent support and look forward to continued
support in future. Your Directors wish to place on record their
appreciation to the employees at all levels for their hard work,
dedication and commitment.
For and on behalf of the Board of Directors
Place: Gurgaon, Chairman
Dated: August 13, 2015.
Mar 31, 2014
Dear Members,
The Directors present herewith the Twenty Seventh Annual Report
together with the Audited Standalone Accounts of the Company for the
year ended March 31,2014.
FINANCIAL RESULTS (STANDALONE)
in Millions
Year Ended Year Ended
Discription 31-03-2014 31-03-2013
Other Income - -
TOTAL REVENUE - -
Loss before exceptional and (4.02) (3.28)
extraordinary and tax
Exceptional Items - -
Loss before extraordinary
items and tax (4.02) (3.28)
Extra-ordinary Items - -
Loss before Tax (4.02) (3.28)
Tax Expense - -
Loss for the year (4.02) (3.28)
EFFECT OF SCHEME OF ARRANGEMENT :
For the speedy implementation of the power project of the Company, The
Hon''ble Bombay High Court had approved the Scheme of Arrangement (the
''Scheme'') under Section 391 to 394 of the Companies Act, 1956, for
Hive off of "Cuddalore Power Division" to SRM Energy Tamilnadu
Private Limited (SETPL), a wholly owned subsidiary of the Company with
effect from April 01, 2012 (the "Appointed Date") vide its order
dated September 03, 2013.
In accordance with the said Scheme, the Cuddalore Power Division of the
Company has been transferred to its Wholly Owned Subsidiary, SRM Energy
Tamilnadu Pvt. Ltd. (SETPL) with effect from April 01, 2012 (the
"Appointed Date"). The orders of the High Court were filed with the
Registrar of Companies, Mumbai on October 11, 2013, and (the Effective
Date"). In terms of the Scheme, all the assets and liabilities of the
Cuddalore Power Division of the Company at their respective Book Values
as on April 01, 2012 and also all consents, approvals, sanctions,
licenses, contracts pertaining to the Cuddalore Power Division of the
Company have been transferred to SETPL. The transaction for the period
from April 01, 2012 to March 31,2013 of the Cuddalore Power Division
are deemed to have been carried on by the Company for and in trust and
are treated as transactions of SETPL.
ALLOTMENT OF EQUITY SHARES BY SRM ENERGY TAMILNADU PVT. LTD.
As per the terms of the Scheme, the net consideration was satisfied by
SETPL to the Company by allotment of 13,10,000 equity shares of Rs.10
each, credited as fully paid up to the Company and payment of the
balance amount of Rs. 27,151/- on October 18, 2013.
OPERATIONS
The Company is in the process of setting up Thermal Power Projects at
various locations more particularly in Maharashtra, Eastern India and
Tamilnadu. The project at Tamilnadu is consisting of 3X660 MW i.e.
1980 MW capacity is being set up by the Wholly Owned Subsidiary SRM
Energy Tamilnadu Pvt. Ltd. As such there are no other operations at
present and the related expenses incurred during the current period are
considered as pre operative expenses pending allocation to the power
project.
The Company proposes to induct financial / strategic investor into the
subsidiary to take care of the equity requirements. Subsequently,
significant portion of the debt requirements is proposed to be met
through loans from the Chinese Banks Consortium. For meeting the
domestic debt requirements, the Company proposes to mandate one of the
leading banks / financial institutions.
DIVIDEND
As the Power project is under implementation and there is no operating
income, your directors are not in a position to recommend any dividend.
DIRECTORS
Mr. Gagan Rastogi, Director of the Company will retire by rotation at
the forthcoming Annual General Meeting and being eligible has offered
himself for re-appointment as Director of the Company, liable to retire
by rotation, in the said meeting.
Mr. Vishal Rastogi was appointed as Managing Director on February 21,
2014 and holds office up to the ensuing Annual General Meeting. The
Company has received a notice under Section 160 the Companies Act, 2013
from a member signifying the candidature of Mr. Vishal Rastogi for
appointment as Managing Director of the Company without remuneration
for a term of 5 years and shall be liable to retire by rotation in the
ensuing annual general meeting.
Mr. Sameer Rajpal and Mr. Vijay Sharma have been appointed as the
Additional Directors on the Board of your Company with effect from
February 11, 2014. Mr. Pranav Kumar has appointed as the Additional
Directors on the Board of your Company with effect from March 11,2014.
Your Company has received the notice under section 160 the Companies
Act, 2013 together with the requisite deposit from the shareholders, in
respect of Mr. Sameer Rajpal, Mr. Vijay Sharma and Mr. Pranav Kumar,
proposing their appointments as the Directors on the Board of the
Company. The Resolutions seeking approval of the members for their
appointment as Directors have been incorporated in the Notice Convening
the Annual General Meeting.
Mr. Jayaram Shetty and Mr. Sudarshan Parab, Directors of the Company
resigned from the Board on January 24, 2014 and January 25, 2014
respectively. Mr. D. Sundararajan, Managing Director & CEO of the
Company resigned from the Board on February 11, 2014.
Brief profile of the Director proposed to be reappointed as required
under Clause 49 of the Listing Agreement are annexed to the Notice of
Annual General Meeting forming part of this Annual Report.
INDEPENDENT DIRECTORS
Pursuant to Section 149 of the Companies Act, 2013 (new Act) read with
the Rules made thereunder, the Independent Directors shall hold office
for a period of up to 5 consecutive years and shall not be liable to
retire by rotation. They may be appointed for a maximum of two
consecutive terms of up to 5 years each. In terms of revised clause 49
of the listing agreement which will be applicable from October 01,
2014, in case the Independent Director has already served for 5 or more
years, he can be appointed for only one term of 5 years. As per new
Act, the Nominee Director is not considered to be an Independent
Director.
Presently, Mr. Pranav Kumar, Mr. Sameer Rajpal and Mr. Vijay Sharma are
the Independent Directors of the Company.
As per their existing terms of appointment, all of them are liable to
retire by rotation. However, under the new Act and Clause 49 of listing
agreement, they may be appointed afresh with a fixed period of up to 5
years.
The Board considered the independence of each of the above mentioned
Directors in terms of Section 149 and Schedule IV to the Companies Act,
2013 and Clause 49 of the listing agreement and was of the view that
the proposed directors fulfill the criteria of independence as
mentioned in the above provisions and can be appointed as Independent
Directors. All the proposed directors possess requisite qualifications,
appropriate skills, experience and knowledge in one or more fields of
finance, law management, marketing, administration, technical
operations and other disciplines related to Company''s business.
Keeping in view, the educational / professional qualifications, working
experience, expertise in line with Company''s business, positive
attributes, already being on the Board of the Company and benefits that
the Company will derive with their appointment, the Board has
recommended their appointment as Independent Directors of the Company
to hold office for a term of five consecutive years commencing from the
date of 27th Annual General Meeting of the Company.
SUBSIDIARY COMPANY & RELATED COMPLIANCES
As per Section 212 (1) of the Companies Act, 1956, the Company is
required to attach to its accounts, the Director''s Report, Balance
Sheet and Profit and Loss Account etc. of each of its subsidiaries.
However a general exemption has been granted by the Ministry vide its
General Circular No. 2/2011, dated - February 08, 2011 under section
212(8) of the Companies Act, 1956 for not attaching the said details.
Your Company has one wholly owned subsidiary company viz. SRM Energy
Tamilnadu Private Limited, which does not have any operations at
present. Hence, the Board of Directors have decided to avail the
exemption.
Accordingly, a copy of the Balance Sheet, Profit and Loss Account,
Report of the Board of Directors and Auditors of the aforesaid wholly
owned subsidiary for the year ended March 31, 2014 have not been
attached with the financial statements of your Company. However, the
annual accounts of the subsidiary company and the related detailed
information are available to the shareholders of the holding and
subsidiary companies seeking such information at any point of time. The
annual accounts of the subsidiary company are kept for inspection by
any shareholder at the Registered office of the holding company and of
the
subsidiary company concerned and a note to the above effect will be
included in the annual report of the holding company.
LISTING
The equity shares continue to be listed on the BSE Limited (BSE) .The
BSE has nation-wide terminals and therefore, shareholders / Investors
are not facing any difficulty in trading in the shares of the Company
from any part ofthe country. The Company has paid annual listing fee
for the financial year 2014-15 to BSE.
FIXED DEPOSITS
During the year under review, the Company has not accepted any deposits
from the public pursuant to Section 58-A of the Companies Act, 1956.
CORPORATE GOVERNANCE CODE
Pursuant to Clause 49 of the Listing Agreement with the Stock Exchange,
a compliance report on Corporate Governance is annexed as part of the
Annual Report.
DEMATERIALISATION OF SHARES
In terms ofthe notification issued by the Securities and Exchange Board
of India (SEBI) the Company has dematerialized its shares with both the
depositories CDSL and NSDL.
CODE OF CONDUCT
The Code of Conduct, as adopted by the Board of Directors is applicable
to all Directors, Senior Management and Employees of the Company. This
code is based on fundamental principles, viz. good corporate governance
and good corporate citizenship. The Code covers Company''s commitment
to sustainable development, concern for occupational health, safety and
environment, a gender friendly work place, transparency and
accountability and legal compliance.
CORPORATE GOVERNANCE
Your Company has implemented the conditions of Corporate Governance as
contained in Clause 49 of listing agreement. Separate reports on
Corporate Governance and Management Discussion and Analysis along with
necessary certificates are given elsewhere in this Annual Report.
AUDITORS
M/s Haribhakti & Co., Chartered Accountants (CAs),(Firm registration
No. 103523W) Mumbai, were appointed as the statutory auditors of the
Company for financial year 2013-14 at the Annual General Meeting (AGM)
of the Company held on December 09, 2013.
M/s Haribhakti & Co., have been the Auditors of the Company since 2008
-09 and have completed a term of Six years. As per the provisions of
Section 139 of the Act, no listed company can appoint or re- appoint an
audit firm as auditor for more than two terms of five consecutive
years. Section 139 of the Act has also provided a period of three years
from the date of commencement of the Act to comply with this
requirement.
They have informed the Board that with a view to uphold the highest
standards of corporate governance and changes under the Companies Act,
2013, they would like to offer themselves to be re-appointed as
auditors in the forthcoming Annual General Meeting of the Company, have
agreed to and given their consent for their appointment as statutory
auditors of the Company.
M/s Haribhakti & Company, Chartered Accountants, Mumbai, the Statutory
Auditors of your Company holds office upto the conclusion of the
ensuing Annual General Meeting and is eligible for re-appointment. The
Company has received a letter from them to the effect that they are
willing to continue as Statutory Auditors and if re-appointed, their
re-appointment would be within the limits prescribed under Section 139
of the Companies Act, 2013.
In terms of Section 139(2) of the Companies Act, 2013, the Board has
recommended that M/s Haribhakti & Co., Chartered Accountants may be
appointed as statutory auditors of the Company for a period of four
consecutive years from the conclusion of the Twenty Seventh Annual
General Meeting up to the 2018 of the Thirty First Annual General
Meeting, subject to ratification at each Annual General Meeting, at a
remuneration that may be decided by the shareholders
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the requirements under sub Section 2AA of Section 217 of
the Companies Act, 1956, with respect to the Directors Responsibility
Statement, it is hereby confirmed:-
i) that in preparation of the annual accounts for the financial year
ended on March 31, 2014, the applicable accounting standards had been
followed along with proper explanations relating to material
departures.
ii) that the Directors had 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
loss of the Company for the year under report.
iii) that the Directors had 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 by preventing and detecting fraud and other
irregularities.
iv) that the Directors had prepared the accounts for the financial year
ended on March 31, 2014 on a ''going concern basis''.
AUDITORS'' OBSERVATIONS
Though the Company''s networth has been substantially eroded and the
Company has been incurring Cash Losses, the management is of strong
view that the Company would turnaround with power project of the Wholly
Owned Subsidiary getting operational. The Company also intends to start
the projects in Maharashtra and Eastern India. The Company''s present
assets are adequate to meet the liabilities. The promoters are also
committed to provide necessary funding to meet the liabilities and have
provided Rs. 567.45 million as unsecured loan till March 31, 2014.
Accordingly, the accounts have been prepared on going concern basis.
PARTICULARS UNDER SECTION 217
Since no employee is receiving remuneration in excess of limit
specified under the provisions of Section 217 ( 2A) of the Companies
Act, 1956 ,read with the Companies (Particulars of Employees) Rules,
1975 as amended from time to time, Statement of particulars of
employees do not form part of the report.
Statement of particulars under Section 217(1)(e) the Companies Act,
1956 read with Rule 2 of the Companies (Disclosure of Particulars in
the Report of Board of Directors) Rules, 1988 regarding Conservation of
Energy and Technology Absorption are presently not applicable to the
Company.
APPRECIATION
Your Directors wish to express their sincere appreciation to the
Central Government, the State Governments, bankers and the business
associates for their excellent support and look forward to continued
support in future. Your Directors wish to place on record their
appreciation to the employees at all levels for their hard work,
dedication and commitment.
For and on behalf of the Board of Directors
Place: Mumbai, Chairman
Dated: August 14, 2014.
Mar 31, 2013
The Directors present herewith the Twenty Sixth Annual Report together
with the Audited Standalone Accounts of the Company for the year ended
March 31, 2013.
FINANCIAL RESULTS (Standalone)
Rs. in Millions
Description Year Ended Year Ended
31-03-2013 31-03-2012
Other Income - -
Total Revenue - -
Loss before exceptional and
extraordinary items and tax (3.28) (3.50)
Exceptional Items - -
Loss before extraordinary
items and tax (3.28) (3.50)
Extra-ordinary Items - -
Loss before Tax (3.28) (3.50)
Tax Expense - -
Loss for the year (3.28) (3.50)
EFFECT OF SCHEME OF ARRANGEMENT:
As mentioned in the Annual Report for 2011-12, for the speedy
implementation of the power project of the Company, the Board of
Directors in their meeting held on May 22, 2012 had approved the Scheme
of Arrangement (the ''Scheme'') under Section 391 to 394 of the Companies
Act, 1956, for Hive off of "Cuddalore Power Division* to SRM Energy
Tamilnadu Private Limited (SETPL), a wholly owned subsidiary of the
Company with effect from. April 01, 2012 (the "Appointed Date"). The
shareholders of the Company had also approved the said Scheme in the
Court Convened meeting held on September 28, 2012. The Hon''ble Bombay
High Court had approved the said Scheme vide its order dated September
3, 2013.
In accordance with the said Scheme, the Cuddalore Power Division of the
Company has been transferred to its Wholly Owned Subsidiary, SRM Energy
Tamilnadu Pvt. Ltd. (SETPL) with effect from April, 1, 2012 (the
"Appointed Date"). The orders of the High Court were filed with the
Registrar of Companies, Mumbai on October 11, 2013 (the ''Effective
date''). In terms of the Scheme all the assets and liabilities of the
Cuddalore Power Division of the Company at their respective Book Values
as on 01.04.2012 and also all consents, approvals, sanctions, licenses,
contracts pertaining to the Cuddalore Power Division of the Company
have been transferred to SETPL. The transaction for the period from 1st
April, 2012 to 31st March 2013. of the Cuddalore Power Division are
deemed to have been carried on by the Company for and in trust and are
treated as transactions of SETPL.
ALLOTMENT OF EQUITY SHARES BY SRM ENERGY TAMILNADU PVT. LTD.
As per the terms of the Scheme, the net consideration was satisfied- by
SETPL to the Company by allotment of 13,10,000 equity shares of Rs. 10
each, credited as fully paid up to the Company and payment of the
balance amount of Rs. 27,151/- on October 18, 2013.
OPERATIONS:
The Company is in the process of setting up Thermal Power Projects at
various locations more particularly in Maharashtra, Eastern India and
Tamilnadu. The project at Tamilnadu is consisting of 3X660 MW i.e. 1980
MW capacity is being set up by the Wholly Owned Subsidiary SRM Energy
Tamilnadu Pvt. Ltd. As such there are no other operations at present
and the related expenses incurred during the current period are
considered as pre operative expenses pending allocation to the power
project.
As informed in the annual report of the last year, the paucity of
funds, resulting from the Company not being able to proceed with the
Proposed Rights issue, due to reasons beyond its control, has
considerably slowed down the progress of the project. In addition,
considering the prevailing power industry scenario in the country
coupled with the slower pace of growth of the country as a whole,
prospective investors have deferred their decisions on investments,
which has further compounded the problems.
During the period the Company has received the necessary CRZ clearances
for laying of the underground Sea Water Pipelines and overhead Coal
Conveyors from the Ministry of Environment and Forests (MOEF) (IA
Division) and also from the National Highways Authority of India,
Ministry of Transports, Govt, of India.
The Company proposes to induct fihancial / strategic investor into the
subsidiary to take care of the equity requirements. Subsequently,
significant portion of the debt requirements is proposed to be met
through loans from the Chinese Banks Consortium. For meeting the
domestic debt requirements, the Company proposes to mandate one of the
leading banks/ financial institutions.
DIVIDEND
As the Power project is under implementation and there is no operating
income, your directors are not in a position to recommend any dividend.
DIRECTORS
Mr. Jayaram Shetty has been appointed as the additional Director on the
Board of your Company with effect from October 18, 2013. As per the
provisions of Section 260 of the Companies Act, 1956 Mr. Jayaram Shetty
will hold office up to the date of the ensuing Annual General Meeting
of the Company. Your Company has received the notice under section 257
of the Companies Act, 1956 together with the requisite deposit from a
shareholder, in respect of Mr. Jayaram Shetty, proposing his
appointment as the Director on the Board of the Company. The Resolution
seeking approval of the members for their appointment as Director have
been incorporated in the Notice Convening the Annual General Meeting.
Mr. Srinivasan Parthasarathy, Director of the Company resigned from the
Board on August 01, 2013. Your directors record their appreciation for
the sen/ices and support rendered by him during his tenure on the Board
of the Company.
In accordance with the provisions of the Companies Act, 1956 and the
Article of Association of the Company, Mr. Gagan Deep Kumar Rastogi
retires by rotation at the ensuing Annual General Meeting and being
eligible, offer himself for reappointment at the ensuing Annual General
Meeting of the Company.
Brief profile of the Director proposed to be reappointed as required
under Clause 49 of the Listing Agreement are annexed to the Notice of
Annual General Meeting forming part of this Annual Report.
SUBSIDIARY COMPANY & RELATED COMPLIANCES
As per Section 212 (1) of the Companies Act, 1956, the Company is
required to attach to its accounts, the Director''s Report, Balance
Sheet and Profit and Loss Account etc. of each of its subsidiaries.
However, a general exemption has been granted by the Ministry vide its
General Circular No. 2/2011, dated - February 08, 2011 under section
212(8) of the Companies Act, 1956 for not attaching the said details.
Your Company has one wholly owned subsidiary company viz. "SRM Energy
Tamilnadu Private Limited, which does not have any operations at
present. Hence, the Board of Directors have decided to avail the
exemption.
, Accordingly, a copy of the Balance Sheet, Profit and Loss Account,
Report of the Board of Directors and Auditors of the aforesaid wholly
owned subsidiary for the year ended March 31, 2013 have not been
attached with the financial statements of your Company. However, the
annual accounts of the subsidiary company and the related detailed
information are available to the shareholders of the holding and
subsidiary companies seeking such information at any point of time. The
annual accounts of the subsidiary company are kept for inspection by
any shareholder at the Registered office of the holding company and of
the subsidiary company concerned and a note to the above effect will be
included in the annual report of the holding company.
FIXED DEPOSITS
During the year under review, the Company has not accepted any deposits
from the public pursuant to Section 58-A of the Companies Act, 1956.
THE CORPORATE GOVERNANCE CODE
Pursuant to Clause 49 of the Listing Agreement with the Stock Exchange,
a compliance report on Corporate Governance is annexed as part of the
Annual Report.
DEMATERIAUSATION OF SHARES
In terms of the notification issued by the Securities and Exchange
Board of India (SEBI) the Company has dematerialized its shares with
both the depositories CDSL and NSDL.
DIRECTOR''S RESPONSIBILITY STATEMENT
Your Director''s affirm that the audited accounts containing the
financial statements for the Financial Year 2012-13 are in conformity
with the requirements of the Companies Act, 1956. They believe that the
financial statements reflect fairly the form and substance of
transactions carried out during the year and reasonably present the
Company''s financial condition and the results of operations.
Pursuant to sub-section (2AA) of Section 217 of the Companies Act, 1956
the Board of Directors of the Company hereby state and confirm that:
a) In the preparation of the Annual Accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures.
b) The Directors had 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/loss of
the Company for that period.
c) The Directors had 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) The Directors had prepared the annual accounts on a going concern
basis.
CODE OF CONDUCT
The Code of Conduct, as adopted by the Board of Directors is applicable
to all Directors, Senior Management and Employees of the Company. This
code is based on fundamental principles, viz. good corporate
governance and good corporate citizenship. The Code covers Company''s
commitment to sustainable development, concern for occupational health,
safety and environment, a gender friendly work place, transparency and
accountability and legal compliance.
AUDITORS
M/s Haribhakti & Co., Chartered Accountants, Mumbai, the Auditors of
the Company hold office until the conclusion of the ensuing Annual
General Meeting. The Company has received a letter from them to the
effect that, their appointment, if made, by the Company for the year
2013-14 will be within the limit prescribed under Section 224 (1-B) of
the Companies Act,1956. The Board of Directors recommends their
reappointment.
AUDITORS'' OBSERVATIONS
Though the Company''s net worth has been substantially eroded and the
Company has been incurring Cash Losses, the management is of strong
view that the Company would turnaround with power project of the Wholly
Owned Subsidiary getting operational. The Company also intends to
restart the projects in Maharashtra and Eastern India. The Company''s
present assets are adequate to meet the liabilities. The promoters are
also committed to provide necessary funding to meet the liabilities and
have provided 2.42 million as unsecured loan till March 31, 2013.
Accordingly, the accounts have been prepared on going concern basis.
PARTICULARS UNDER SECTION 217
Since no employee is receiving remuneration in excess of limit
specified under the provisions of Section 217 ( 2A) of the Companies
Act, 1956 , read with the Companies (Particulars of Employees)
Rules,1975, Statement of particulars of employees do not form part of
the report.
Statement of particulars under Section 217(1)(e) regarding Conservation
of Energy and Technology Absorption are presently not applicable to the
Company.
Details of foreign exchange outgo are set out in note No. 21 of the
Financial Statements. There have been no Foreign Exchange earnings
during the current year and previous year.
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis Report for the year under
review, as stipulated under Clause 49 of the Listing Agreement is
presented in a separate section forming part of the Annual Report.
APPRECIATION
Your Directors wish to express their sincere appreciation to the
Central Government, the State Governments, bankers and the business
associates for their excellent support and look forward to continued
support in future. Your Directors wish to place on record their
appreciation to the employees at all levels for their hard work,
dedication and commitment.
For and on behalf of the Board of Directors
Place: Mumbai, Chairman
Dated: October 18, 2013.
Mar 31, 2012
The Directors present herewith the Twenty Fifth Annual Report together
with the Audited Financial Statements of the Company for the year ended
March 31, 2012.
FINANCIAL RESULTS
Rs. in Million
Description Year Ended Year Ended
31-03-2012 31-03-2011
Other Income - 0.05
Total Revenue - 0.05
Other Expenses 3.50 4.11
Total Expenses 3.50 4.11
Loss before exceptional
and extraordinary and tax (3.50) (4.06)
Exceptional Items - -
Loss before extraordinary
items and tax (3.50) (4.06)
Extra-ordinary Items - -
Loss before Tax (3.50) (4.06)
Tax Expense - -
Loss for the year (3.50) (4.06)
OPERATIONS
The Company is in the, process of setting up a Super Critical Thermal
Power Project of 3X660 MW i.e. 1980 MW capacity in Tamilnadu and there
are no other operations at present. As such the related expenses
incurred during the current period are considered as pre-operative
expenses pending allocation to the power project.
The Company has already identified the entire land required for the
project and is currently concentrating on acquiring contiguous land.
However paucity of funds resulting from the Company not being able to
proceed with the proposed Rights Issue has considerably slowed down the
land acquisition process and also the Company entering into Coal
Trading business.
It is learnt that the Company's application for Coal linkage of 3.2
million tons per annum has been favorably considered by the Ministries
concerned and a formal communication in this regard is expected
shortly. The linkage is likely to be with Mahanadi Coal Ltd. and the
coal will be transported through barges from Orissa to Tamilnadu.
Imported and Domestic Coal will be blended in the ratio of 70:30 for
usage in the plant. The Company is continuing its efforts to get
Chinese Bank funding for major portion of the debt requirements of the
project.
PROPOSED RIGHTS ISSUE OF THE COMPANY
The Company had filed Draft Letter of Offer to the Security Exchange
Board of India (SEBI) for its proposed right issue on August 17, 2010.
Though SEBI gave its final observations vide letter dated February 8,
2011 it did not allow adjustment of unsecured loan brought in by the
Promoters against their Rights entitlement. The Company went on appeal
to Securities Appellate Tribunal (SAT) and it had allowed the
Company's appeal vide its orders dated June 6, 2011, subsequent to
which the Company filed Final Letter of Offer for the Proposed Rights
Issue on June 17, 2011 with SEBI for raising Rs.589 million.
However in the interim, SEBI, while dealing with certain entities in
case of market manipulation by issue of GDRs, had vide its ex-parte
order No.WTM/PS/ISD/02/2011 dated September 21, 2011, which was later
confirmed vide order dated December 30, 2011, directed a group Company,
Cals Refineries Ltd. (Cals) not to issue equity shares or any other
instruments convertible into equity shares or alter capital structure
in any manner till further directions in this regard. Subsequently,
SEBI vide its letter No. CFD/DIL/ISSUES/ SP/RG/OW/3382/2012 dated
February 7, 2012 informed our Merchant Banker that, as Cals, a group
Company has been directed not to issue any equity shares or alter their
capital structure in any manner till further directions in this regard,
the Company is not satisfying the eligibility criteria as provided in
Regulation 4(2)(a) and 4(2)(b) of the ICDR regulations and hence is not
eligible to proceed with the Rights Issue till directions against Cals
are in force.
The Company had filed an appeal to SAT against the aforesaid direction
of SEBI but the Company's appeal has been dismissed by SAT In view of
this, the Company now proposes to proceed with the Rights Issue as and
when Cals is exonerated from the charges.
HIVE OFF:
In order to proceed at a faster pace with the implementation of the
project, the Board of Directors, have approved the hiving off of the
Cuddalore Power Project to our wholly owned subsidiary M/s SRM Energy
Tamilnadu Pvt. Ltd., as per the Scheme of arrangement under section 391
to 394 of the Companies Act, subject to receipt of necessary approvals.
DIVIDEND
As the Power project is under implementation and there is no operating
income, your directors are not in a position to recommend any dividend.
DIRECTORS
Mr. B.S. Rao, Director of the Company resigned from the Board on
September 27, 2011. Your directors record their appreciation for the
services and support rendered by him during his tenure on the Board of
the Company.
In accordance with the provisions of the Companies Act, 1956 and the
Article of Association of the Company, Mr. Sudarshan K. Parab retires
by rotation at the ensuing Annual General Meeting and being eligible,
offers himself for reappointment at the ensuing Annual General Meeting
of the Company.
Brief profile of the Director proposed to be reappointed as required
under Clause 49 of the Listing Agreement is annexed to the Notice of
Annual General Meeting forming part of this Annual Report.
SUBSIDIARY COMPANY & RELATED COMPLIANCES
As per Section 212(1) of the Companies Act, 1956, the Company is
required to attach to its accounts, the Director's Report, Balance
Sheet and Profit and Loss Account etc. of each of its subsidiaries.
Your Company has one wholly owned subsidiary company viz. "SRM Energy
Tamilnadu Private Limited, which does not have any operations at
present. Hence, the Board of Directors have decided to avail the
general exemption granted by the Ministry vide its General Circular No.
2/2011, dated February 08, 2011 under section 212(8) of the Companies
Act, 1956.
Accordingly, a copy of the Balance Sheet, Profit and Loss Account,
Report of the Board of Directors and Auditors of the aforesaid wholly
owned subsidiary for the year ended March 31, 2012 have not been
attached with the financial statements of your Company. However, the
annual accounts of the subsidiary company and the related detailed
information are available to the shareholders of the Company seeking
such information at any point of time. The annual accounts of the
subsidiary company are kept for inspection by any shareholder at the
Registered office of the Company and a note to the above effect has
been included in the annual report of the Company.
FIXED DEPOSITS
During the year under review, the Company has not accepted any deposits
from the public pursuant to Section 58-A of the Companies Act, 1956.
THE CORPORATE GOVERNANCE CODE
Pursuant to Clause 49 of the Listing Agreement with the Stock Exchange,
a compliance report on Corporate Governance is annexed as part of the
Annual Report.
DEMATERIALISATION OF SHARES
In terms of the notification issued by SEBI, the Company has
dematerialized its shares with both the depositories CDSL and NSDL.
DIRECTOR'S RESPONSIBILITY STATEMENT
Your Director's affirm that the audited accounts containing the
financial statements for the Financial Year 2011-12, are in conformity
with the requirements of the Companies Act, 1956. They believe that the
financial statements reflect fairly the form and substance of
transactions carried out during the year and reasonably present the
Company's financial condition and the results of operations.
Pursuant to sub-section (2AA) of Section 217 of the Companies Act, 1956
the Board of Directors of the Company hereby state and confirm that:
a) In the preparation of the Annual Accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures.
b) The Directors had 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/loss of
the Company for that period.
c) The Directors had 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) The Directors had prepared the annual accounts on a going concern
basis.
CODE OF CONDUCT
The Code of Conduct, as adopted by the Board of Directors is applicable
to all Directors, Senior Management and Employees of the Company. This
code is based on fundamental principles, viz. good corporate governance
and good corporate citizenship. The Code covers Company's commitment
to sustainable development, concern for occupational health, safety and
environment, a gender friendly work place, transparency and
accountability and legal compliance.
AUDITORS
M/s Haribhakti & Co., Chartered Accountants, Mumbai, the Auditors of
the Company hold office until the conclusion of the ensuing Annual
General Meeting. The Company has received a letter from them to the
effect that, their appointment, if made, by the Company for the year
2012-13 will be within the limit prescribed under Section 224 (1-B) of
the Companies Act, 1956. The Board of Directors recommend their
reappointment.
AUDITORS' OBSERVATIONS
The Company's Auditors have drawn attention to Note 28 of the financial
statements with regard to the preparation of financial statements on a
going concern assumption. The management is of the view that though the
Company's net worth has been substantially eroded and it is incurring
cash losses, the Company would turn around with the power project
becoming operational. The Company's present assets are adequate to
meets its liabilities. In addition, the Promoter is also committed to
provide necessary funding to meet the Company's liabilities.
PARTICULARS UNDER SECTION 217
Since no employee is receiving remuneration in excess of limit
specified under the provisions of Section 217 ( 2A) of the Companies
Act. 1956 . read with the Companies (Particulars of Employees) Rules,
1975, Statement of particulars of employees do not form part of the
report.
Statement of particulars under Section 217(1)(e) regarding Conservation
of Energy and Technology Absorption are presently not applicable to the
Company.
Details of foreign exchange outgo are set out in note No. 19 of the
Financial Statements. There have been no Foreign Exchange earnings
during the current year and previous year.
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis Report for the year under
review, as stipulated under Clause 49 of the Listing Agreement is
presented in a separate section forming part of the Annual Report.
APPRECIATION
Your Directors wish to express their sincere appreciation to the
Central Government, the State Governments, bankers and the business
associates for their excellent support and look forward to continued
support in future. Your Directors wish to place on record their
appreciation to the employees at all levels for their hard work,
dedication and commitment.
For and on behalf of the Board of Directors
Place: Mumbai. Chairman
Dated: July 25, 2012.
Mar 31, 2011
The Directors present herewith the Twenty Fourth Annual Report together
with the Audited Accounts of the Company for the year ended March 31,
2011.
FINANCIAL RESULTS (Rs. in Lacs)
Description Year Ended Year Ended
31-03-2011 31-03-2010
Other Income 0.48 0.03
TOTAL INCOME 0.48 0.03
Profit / (Loss) before
Depreciation and Interest (38.12) (3.65)
Depreciation & Amortisation
Interest 2.42 -
ProfitV(Loss) from Ordinary
Activities before tax (40.54) (3.65)
Tax Expenses - -
Net Profit/(Loss) from Ordinary
Activities after tax (40.54) (3.65)
Extra-ordinary Items - -
Net profit/(Loss) for the year (40.54) (3.65)
OPERATIONS
The Company is in the process of setting up Super Critical Thermal
Power Project of 3X660 MW i.e. 1980 MW capacity in Tamilrradu and there
are no other operations at present. As such the related expenses
incurred during the current period are considered as pre operative
expenses pending allocation to the power project.
The Company is in the process of completing the acquisition of the
required land. The Company has also submitted application for allotment
of Govt: Land falling within the site premises and the same is under
process. International Competitive Bidding (ICB) process for award of
EPC contract for the project has been successfully completed with the
award of EPC contract to China Datang Technologies & Engineering Co.
Ltd. (CDTE), a specialized engineering corporation and EPC contractor
in China and a subsidiary of China Datang Corporation (CDC), the
largest power utility in China. CDTE has been awarded the Letter of
Intent (LOI) for supply of 3 (Three) Thermal Power units of 660 MW each
based on Super Critical Technology on Turnkey EPC basis at a value of
US$ 1.4 billion on 15th December 2010 in the august presence HE Mr. Wen
Jiabao, Honble Premier of the Peoples Republic of China. The power
plant will be completed in 51 months from the commencement of
construction, with the first unit being commissioned in 39 months and
will comply with the latest CEA guidelines on efficiency norms.
In the same meeting SRM has also signed a Tripartite Memorandum of
Understanding (MOU) with CDTE and Industrial and Commercial Bank of
China (ICBC), the largest wholesale, retail and the leading investment
bank in China with highest market value throughout the world, for
financing the export buyers credit to the extent of 85% of the EPC
contract value backed by insurance from China Export & Credit Insurance
Corporation.
The Company has signed an MOU for supply of 7 million tons of Coal from
mines located at Mozambique and Malawi, Africa. This MOU along with the
existing agreement with Indonesian party for supply of 5 million tons
per annum with an option to increase the same to 6.0 million tons per
annum will be sufficient to meet the requirements of the project. The
Companys application to the Ministry of Coal, Govt, of India for
domestic coai linkage for blending is also under its active
consideration.
On February 08, 2011 "The Expert Appraisal Committee on Environmental
Impact Assessment of Thermal Power and Coal Mine Projects" has
recommended for Environmental Clearance for 3X660 MW Super Critical
Power Project of the Company. We expect the formal approval from the
Ministry within a short time. The Company has also received In
principle clearance from the Railway authorities for crossing of
Railway lines (for laying overhead Coal Conveyor and underground Sea
water pipeline).
The Company has signed an MOU with Cuddalore Port Company Pvt. Ltd. for
availing port services from their upcoming port at Cuddalore, which is
at a distance of 8 kms from the plant site. As a backup arrangement, an
MOU has also been signed with Karaikal Port Company Ltd. for availing
Port services for import of Coal.
The promoters of the Company have infused an amount of Rs. 4451.35 lacs
upto March 31, 2011 in the form of Share Application Money, which will
not be withdrawn from the Company till the required Equity is in place.
DIVIDEND
As the Power project is under implementation and there is no operating
income, your directors are not in a position to recommend any dividend.
DIRECTORS
Mr. Sudarshan K. Parab and Mr. Gagan Deep Kumar Rastogi have been
appointed as the additional Directors on the Board of your Company with
effect from July 08, 2010 and February 11, 2011 respectively. As per
the provisions of Section 260 of the Companies Act, 1956 Mr. Sudarshan
K. Parab and Mr. Gagan Deep Kumar Rastogi will hold office up to the
date of the ensuing Annual General Meeting of the Company.
Your Company has received the notices under section 257 of the
Companies Act, 1956 together with the requisite deposits from the
shareholders, in respect of Mr. Sudarshan K. Parab and Mr. Gagan Deep
Kumar Rastogi, proposing their appointments as the Directors on the
Board of the Company. The Resolutions seeking approvals of the members
for their appointments as Directors have been incorporated in the
Notice Convening the Annual General Meeting.
Mr. Deep Kumar Rastogi, Director of the Company resigned from the Board
on February 11, 2011. Your directors record their appreciation for the
services and support rendered by him during his tenure on the Board of
the Company.
In accordance with the provisions of the Companies Act, 1956 and the
Article of Association of the Company,
Mr.Srinivasan Parthasarathy retires by rotation at the ensuing Annual
General Meeting and being eligible, offer himself for reappointment at
the ensuing Annual General Meeting of the Company.
Mr. D. Sundararajan, Director & CEO of the Company has been appointed
as the Managing Director & CEO of the Company w.e.f. July 08, 2010. The
Resolutions seeking approval of the membersfor his appointment as
Managing Director & CEO of the Company has been incorporated in the
Notice Convening thS Annual General Meeting.
Brief profile of the Directors proposed to be appointed / reappointed
as required under Clause 49 of the Listing Agreement are annexed to the
Notice of Annual General Meeting forming part of this Annual Report.
PROPOSED RIGHT ISSUE OF THE COMPANY
The Company has filed draft offer letter on August 17, 2010 with the
Securities and Exchange Board of India (SEBI) & Bombay Stock Exchange
(BSE) for issue of 5,88,90,000 Equity Shares of Rs. 10/- each at Par on
a Rights basis to the existing Equity shareholders of the Company in
the ratio of 65 (Sixty Five) equity shares for every 10 (Ten) Equity
Shares.
In principle approval from BSE has been received vide their letter
dated August 31, 2010. The final observation letter no.
CFD/DIL/ISSUES/SP/RG/OW/4698/2011 dated February 08, 2011 has been
received from SEBI. However SEBI, in their observation letter have
directed the Company not to adjust the unsecured loans of the promoter
of the Company against the allotment of shares against their
entitlement and also against the shares to be allotted as a result of
the renunciation or the unsubscribed portion in the Rights Issue.
The Company filed an appeal before the Honble Securities Appellate
Tribunal, (SAT) Mumbai, India, against the above directions given by
Securities and Exchange Board of India ("SEBI").
SUBSIDIARY COMPANY & RELATED COMPLIANCES
Your Company has one wholly owned subsidiary Company viz. "SRM Energy
Tamilnadu Private Limited. As per Section 212 (1) of the Companies
Act, 1956, the Company is required to attach to its accounts, the
Directors Report, Balance Sheet and Profit and Loss Account etc. of
each of its subsidiaries.
As the consolidated accounts present a complete picture of the
financial results of the Company and its subsidiary, the Board of
Directors have decided to avail the general exemption granted by the
Ministry vide its General Circular No. 2/2011, dated - February 08,
2011 under section 212(8) of the Companies Act, 1956.
Accordingly, a copy of the Balance Sheet, Profit and Loss Account,
Report of the Board of Directors and Auditors of the aforesaid wholly
owned subsidiary forthe year ended March 31, 2011 have not been
attached with the financial statements of your Company. However, the
annual accounts of the subsidiary Company and the related detailed
information are available to the shareholders of the holding and
subsidiary company seeking such information at any point of time. The
annual accounts of the subsidiary company are kept for inspection by
any shareholder in the Registered office of the holding company and of
the subsidiary company concerned.
FIXED DEPOSITS
During the year under review, the Company has not accepted any deposits
from the public pursuant to Section 58-A of the Companies Act, 1956.
THE CORPORATE GOVERNANCE CODE
Pursuant to Clause 49 of the Listing Agreement with the Stock Exchange,
a compliance report on Corporate Governance is annexed as part of the
Annual Report.
DEMATERIALISATION OF SHARES
In terms of the notification issued by the Securities and Exchange
Board of India (SEBI) the Company has dematerialized its shares with
both the depositories CDSL and NSDL.
DIRECTORS RESPONSIBILITY STATEMENT
Your Directors affirm that the audited amounts containing the
financial statements for the Financial Year 2010-11 are in conformity
with the requirements of the Companies Act, 1956. They believe that the
financial statements reflect fairly the form and substance of
transactions carried out during the year and reasonably present the
Companys financial condition and the results of operations.
Pursuant to sub-section (2AA) of Section 217 of the Companies Act, 1956
the Board of Directors of the Company hereby state and confirm that:.
a) In the preparation of the Annual Accounts, the applicable accounting
standards had been followed and that there are no material departures
therefrom.
b) The Directors had selected such accounting policies, 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 / loss
of the Company for that period.
c) The Directors had 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) The Directors had prepared the annual accounts on a going concern
basis.
CODE OF CONDUCT
The Code of Conduct, as adopted by the Board of Directors is applicable
to all Directors, Senior Management and Employees of the Company. This
code is based on fundamental principles, viz. good corporate governance
and good corporate citizenship. The Code covers Companys commitment to
sustainable development, concern for occupational health, safety and
environment, a gender friendly work place, transparency and
accountability and legal compliance.
AUDITORS
M/s Haribhakti & Company, Chartered Accountants, Mumbai, the Auditors
of the Company hold office until the conclusion of the ensuing Annual
General Meeting. The Company has received a letter from them to the
effect that, their appointment, if made, by the Company for the year
2011-12 will be within the limit prescribed under Section 224 (1-B) of
the Companies Act, 1956. The Board of Directors recommends their
appointment.
AUDITORS OBSERVATIONS
The Companys present assets are adequate to meets its liabilities.
Further, when the proposed Right Issue of Rs.5889 lacs are completed
the Net worth would improve. In addition the Company is in the process
of raising resources from promoters and investors towards Equity
requirements of the project and expects the Net worth to improve
substantially once the equity raising is completed. The management is
of the strong view that once the power project, which is being set up
by the Company becomes operationaiized, the Company would turnaround
and the net worth would also improve.
PARTICULARS UNDER SECTION 217
Since no employee is receiving remuneration in excess of the limit
specified under the provisions of section 217 (2A) of the companies
Act, 1956, read wich the Companies (Particulars of employess) Rules
1975, statement of particulars of the employees do not form part of the
report.
Statement of particulars under Section 217(1)(e) regarding Conservation
of Energy and Technology Absorption are presently not applicable to the
Company.
Details of foreign exchange outgo are set out in note No. B-11 of
schedule 9 to the Accounts. There have been no Foreign Exchange
earnings during the current year and previous year.
The Management Discussion and Analysis Report for the year under
review, as stipulated under Clause 49 of the Listing Agreement is
presented in a separate section forming part of the Annual Report.
APPRECIATION
Your Directors wish to express their sincere appreciation to the
Central Government, the State Governments, bankers and the business
associates for their excellent support and look forward to continued
support in future. Your Directors wish to place on record their
appreciation to the employees at all levels for their hard work,
dedication and commitment.
For and on behalf of the Board of Directors
Place: Mumbai. Chairman
Dated: April 18, 2011.
Mar 31, 2010
The Directors present herewith the Twenty Third Annual Report together
with the Audited Accounts of the Company for the year ended March 31,
2010.
FINANCIAL RESULTS: (Rs. in Lacs)
Description Year Ended Year Ended
31-03-2010 31-03-2009
Gross Sales - 55.37
Less: Excise Duty - -
Net Sales - 55.37
Other Income 0.0 30.72
TOTAL INCOME 0.03 56.09
Profit / (Loss) before Depreciation
and Interest (3.65) (24.27)
Depreciation (Net of Revaluation
Reserve)& Amortisation - -
Interest - 0.11
Profit/(Loss) from Ordinary
Activities before tax (3.65) (24.38)
Tax Expenses - 0.10
Net Profit/(Loss) from Ordinary
Activities after tax (3.65) (24.48)
Extra-ordinary Items
Net profit/(Loss) for the year (3.65) (24.48)
OPERATIONS:
The Company is in the process of setting up Thermal Power Project of
1600 MW - 2000 MW capacity in Tamilnadu and there are no other
operations at present. As such the related expenses incurred during the
current period are considered as pre operative expenses pending
allocation to the power project.
The promoters of the Company have infused an amount of Rs.3896.55 lacs
upto 31st March 2010 in the form of unsecured loans, which will not be
withdrawn from the Company till the required Equity is in place.
The Company is in the process of acquiring the required land and is in
the process of finalizing the EPC contract. Depending on the unit size
finalized, the capacity may be of 1800 MW or 1980 MW (3X600 or 3X660
MW). The Company has received approval from the Airports Authority for
Chimney height clearance and has also received in principle approval
from Tamilnadu Maritime Board for drawal of sea water.
The Promoters of the Company have teamed up with Al Kharafi Group of
Kuwait and Al Mel Investment KSC, one of its investment arms for a
joint investment in the Project. Al Kharafi group have agreed to become
the co-sponsor of the project. The Al-Kharafi family is one of Kuwaits
principal merchant dynasties in the Middle East with the group being
founded over 100 years ago. The group presently has interests in 34
countries covering various sectors such as Contracting, Investment,
Industry and Manufacturing, Trading, Tourism and Aviation etc.
The Promoters ,and the Company have mandated one of the leading
international banks and the investment arm of the Kharafi group as
placement agents for private placement of Equity, who have already
commenced the placement process. The Company plans to appoint one of
the leading domestic banks / institutions for tying up the debt
requirements of the project.
DIVIDEND:
As the Power project is under implementation and there is no operating
income, your directors are not . in a position to recommend any
dividend.
DIRECTORS:
Mr. Deep Kumar Rastogi retires by rotation at the ensuing Annual
General Meeting and being eligible, offer himself for reappointment.
Mr. Vini Ahuja who retires by rotation as required under the Companies
Act 1956, though eligible to be reappointed, has not offered himself
for reappointment and accordingly, retires at the ensuing Annual
General Meeting. Your directors do not propose to fill the vacancy
caused by the retirement of Mr. Vini Ahuja. Your directors record their
appreciation for the services and support rendered by Mr. Vini Ahuja
during his tenure on the Board of the Company.
FIXED DEPOSITS:
During the year under review, the Company has not accepted any deposits
from the public pursuant to Section 58-A of the Companies Act, 1956.
THE CORPORATE GOVERNANCE CODE:
Pursuant to Clause 49 of the Listing Agreement with the Stock Exchange,
a compliance report on Corporate Governance is annexed as part of the
Annual Report.
DEMATERIALISATION OF SHARES:
In terms of the notification issued by the Securities and Exchange
Board of India (SEBI) the Company has dematerialized its shares with
both the depositories CDSL and NSDL.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to sub-section (2AA) of Section 217 of the Companies Act, 1956
the Board of Directors of the Company hereby state and confirm that:
a) In the preparation of the Annual Accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures.
b) The Directors had 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/loss of
the Company for that period.
c) The Directors had 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) The Directors had prepared the annual accounts on a going concern
basis.
CODE OF CONDUCT:
The Code of Conduct, as adopted by the Board of Directors is applicable
to all Directors, Senior Management and Employees of the Company. This
code is based on fundamental principles, viz. good corporate governance
and good corporate citizenship. The Code covers Companys commitment to
sustainable development, concern for occupational health, safety and
environment, a gender friendly work place, transparency and
accountability and legal compliance.
AUDITORS
IWs Haribhakti & Company, Chartered Accountants, Mumbai, the Auditors
of the Company hold office until the conclusion of the ensuing Annual
General Meeting. The Company has received a letter from them to the
effect that, their appointment, if made, by the Company for the year
2010-11 will be within the limit prescribed under Section 224 (1-B) of
the Companies Act,1956. The Board of Directors recommends their
appointment.
AUDITORS OBSERVATIONS:
The Companys present assets are adequate to meets its liabilities. The
management is of the strong view that once the power project, which is
being set up by the Company becomes operationalized, the Company would
turnaround and the net worth would also improve. The promoters of the
company have also undertaken to infuse the required funds to pay the
outstanding TDS amount of Rs.21.38 lacs.
The Company is in the process of raising resources from promoters and
investors towards Equity requirements of the project and expects the
Net worth to improve substantially in the next financial year.
PARTICULARS UNDER SECTION 217
Statement of particulars of employees under Section 217(2A) of the
Companies Act, 1956 is annexed to this report. Statement of particulars
under Section 217(1)(e) regarding Conservation of Energy and Technology
Absorption are presently not applicable to the Company. Details of
foreign exchange outgo are set out in note No. B- 5 of schedule 11 to
the Accounts. There have been no Foreign Exchange earnings during the
current year and previous year.
ACKNOWLEDGEMENTS:
The Directors acknowledge with gratitude and place on record their
appreciation of the support and co-operation received from Companys
Banks, vendors and employees.
For and on behalf of the Board of Directors
D Sundararajan
Director
Place: Mumbai
Dated: April 08, 2010
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