Mar 31, 2014
Dear Members,
The Directors take pleasure in presenting the Twenty Third Annual
Report on the affairs of the Company for the financial year 2013-2014
together with the Audited Financial Statements and Report of the
Auditors thereon.
BUSINESS PERFORMANCE:
Financial Results: The overall performance of the Company for the
financial year 2013-14 is summarized as under:
(Rs. in Lakhs)
S. Particulars 2013-2014 2012-2013
No.
1. Sales (Gross) 3277.43 2184.55
Less : Excise Duty 209.33 204.26
Sales (Net) 3068.10 1980.29
2. Other Income 2.82 1.71
Total Revenue 3070.92 1982.01
3. Gross Profit before Interest,
Depreciation, & taxation 148.66 114.18
4. Interest/Financial Charges 87.34 65.71
5. Depreciation 20.80 14.70
6. Profit before tax 40.52 33.77
Less: Provision for current tax 0.43 8.49
Less : Provision for Deferred Tax 12.46 2.07
Net Profit(loss) after tax 27.63 23.21
Add: Balance from previous year 137.04 113.83
Surplus carried to Balance Sheet 164.67 137.04
BUSINESS REVIEW
During the year 2013-14, the Company has posted a gross turnover of Rs
3277.43 lakhs as against Rs. 2184.55 lakhs in the previous year and has
earned a net profit of Rs.40.52 Lakhs before tax compared to previous
year''s profit of Rs 33.77 Lakhs. There is an improvement in
profitability due to increase in turnover and on account of cost
effective means adapted by the management for production. However on
account of inadequate profits, the Board has not recommended any
dividend nor any transfer to reserves.
FUTURE OUTLOOK:
Financial Year 2013-14 has been a challenging year with subdued
economic growth, as a result of higher inflation, higher interest
rates, lower industrial growth and lower investments in the country,
along with the poor condition of the global economy. However, the
Indian economy is expected to perform comparatively well in the coming
years. With a stable government at the centre, significant policy
changes are anticipated in the near future.
The government focus on infrastructure development, more foreign direct
investment inflow and more transparency in governance is likely to
significantly increase the business confidence in the country.The
automotive / industrial segment, it is expected to grow by 4% to 5% in
Financial year 2014-2015.
FINANCIAL RESOURCES
The company has arrangements with its Banker to cash credit limits of
Rs 700 Lakhs to meets its working capital requirements. This will help
Company to boost its turnover in the coming years.
DIRECTORS:
Mr.Swami S.B.Das, retire by rotation and being eligible, offers himself
for reappointment as non -retiring Independent Director for a period of
five years. As per Section 149(4) of the Companies Act, 2013, the
independent directors of the Company are being appointed to hold office
as independent directors for a period of five years with effect from
the 23rd Annual General Meeting.
Mrs Usha Chachan and Mr S.K.Kabra have been appointed as Additional
Directors by the Board on 26th August,2014, to hold office until the
conclusion of the ensuing Annual General Meeting.
Brief particulars and expertise of these directors and their other
directorships and committee memberships have been given in the annexure
to the Notice of the Annual General Meeting in accordance with the
requirements of listing agreement with Stock Exchanges.
DIRECTORS'' RESPONSIBILITY STATEMENT:
In accordance with the provisions of Section 217(2AA) of the Companies
Act,1956, your Directors state:
1. That the accounting standards to the extent applicable to the
Company have been followed in the preparation of the annual accounts
and there are no material departures
2. That the accounting policies selected by the Board for the purpose
of preparation and presentation of the financial statements have been
and are being applied consistently and reasonable and prudent judgments
and estimates (wherever applicable) have been made for the said
purpose, so as to give a true and fair view of the affairs of the
Company as at the end of the financial year under review and of the
profit and loss for the said year.
3. That proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of your company and for
preventing and detecting fraud and other irregularities.
4. That the annual Accounts have been prepared on a going concern
basis.
AUDITORS:
Statutory Auditors
M/s. Dagliya & Co, Chartered Accountants, Secunderabad, the Auditors of
the company retire at the conclusion of the ensuing Annual General
Meeting and are eligible for reappointment. The Board recommends their
reappointment for next 3 years as per the new Companies (Audit and
Auditors) Rules, 2014.
Cost Auditors
Your Company had appointed M/s Sagar & Associates, Cost Accountant,
Hyderabad, as Cost Auditor, with the approval of the Central
Government, for audit of cost records maintained by the Company for the
financial year ended 31st March, 2014. The due date for filing the Cost
Audit Reports is 30th September, 2014.
LISTING :
The shares of your company are listed on Mumbai and Kolkata Stock
Exchanges.
PARTICULARS OF EMPLOYEES U/S 217(2A) OF THE COMPANIES ACT, 1956:
There was no person employed by the company during the year who was in
receipt of remuneration in excess of limits prescribed under Section
217 (2A) of the Companies Act, 1956.
FIXED DEPOSITS:
During the year under review, the company has not accepted any deposits
under Section 58A of the Companies Act 1956 read with Companies (
Acceptance of Deposits) Rules, 1975.
CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY
ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:
Information regarding Energy Conservation, Technology Absorption,
Foreign Exchange Earnings and outgo in accordance with Section 217
(1)(e) of the Companies Act, 1956 read with Companies ( Disclosure of
particulars in the report of Board of Directors) Rules 1988, forming
part of the Directors Report for the year ended 31st March, 2014 are as
follows:
1. Conservation of Energy: The Company''s operations require low energy
consumption. Adequate measures are taken to conserve energy wherever
possible. The details required are attached herewith.
2. Technology Absorption:
a. Research & Development There is no specific Research
and Development activity carried
out by the Company during the year.
b. Technology Absorption NIL
3. Foreign Exchange Earning
and Outgo NIL
CORPORATE GOVERNANCE:
The company has implemented the Code for Corporate Governance as
stipulated under the revised Clause 49 of the Listing Agreement. A
separate report on Corporate Governance is annexed to this report.
CODE OF CONDUCT
The Company has adopted a uniform Code of Conduct for Directors and
Senior Management and above Officers level to ensure ethical standards
and ensure compliance to the laid down standards.
DEMATERIALISATION OF SHARES:
M/s. X.L Softech Services Limited, Hyderabad were appointed as
Depository Registrars for dematerialization of shares as well for
transfer of physical shares were entrusted to them.
The ISIN of dematerialized share of the Company allotted by NSDL and
CDSL is "INE570B01012."
ACKNOWLEDGEMENTS:
The Board takes this opportunity to express its deep gratitude for the
continued co-operation and support received from its Bankers, State and
Central Governments, the customers, share holders, business associates
and employees during the year under review.
Specific acknowledgement is also made for the confidence and
understanding shown by the Members in the Company.
On behalf of the Board of Directors
Place: Hyderabad. Sd/-
Date : 26.08.2014 S.B CHACHAN
CHAIRMAN & MANAGING DIRECTOR
Mar 31, 2013
To The Members of Aditya Ispat Limited, Hyderabad
The Directors take pleasure in presenting the Twenty Second Annual
Report on the affairs of the Company for the financial year 2012-2013
together with the Audited Financial Statements and Report of the
Auditors thereon.
BUSINESS PERFORMANCE:
Financial Results:
The overall performance of the Company for the financial year 2012-13
is summarized as under:
(Rs. in Lakhs)
S.No. Particulars 2012-2013 2011-2012
1. Sales ( Gross) 2184.55 1815.00
Less : Excise Duty 204.26 133.42
Sales ( Net) 1980.29 1681.58
2. Other Income 1.71 1.56
Total Revenue 1982.01 1683.14
3. Gross Profit before Interest,
Depreciation, & taxation 114.18 106.84
4. Interest/Financial Charges 65.71 59.52
5. Depreciation 14.70 15.29
6. Profit before tax 33.77 32.03
Less: Provision for current tax 8.49 8.60
Less : Provision for Deferred Tax 2.07 1.28
Net Profit(loss) after tax 23.21 22.15
Add: Balance from previous year 113.83 91.68
Surplus carried to Balance Sheet 137.04 113.83
BUSINESS REVIEW
During the year 2012-13, the Company has posted a turnover of Rs
2184.55 lakhs as against Rs. 1815.00 lakhs in the previous year and has
earned a net profit of Rs. 33.77 Lakhs before tax compared to previous
year''s profit of Rs. 32.03 lakhs.. There is an improvement in
profitability due to increase in turnover and on account of cost
effective means adapted by the management for production. However on
account of inadequate profits, the Board has not recommended any
dividend nor any transfer to reserves.
FUTURE OUTLOOK:
Indian Steel demand growth is expected to remain subdued due to slow
down in investments and delayed start-up of industrial projects.
However, the automotive / industrial segment, it is expected to grow by
11 to 13% in Financial year 2013-2014. As per world steel forecasts,
steel demand in India should grow up by 6.9% in 2013 and the growth
should accelerate to 9.4% in 2014.
Your Company has registered increase in sales Turnover as well as
Profitability during the year under review. The company is making all
efforts to improve the quality of its products, sales network and
profitability
FINANCIAL RESOURCES
The company has arrangements with its Banker for cash credit limits of
Rs 600 lacs to meets its working capital requirements.
DIRECTORS:
Shri Sanjay Solanki, retires by rotation and being eligible offers
himself for re-appointment. The Board recommends his reappointment.
DIRECTORS'' RESPONSIBILITY STATEMENT:
In accordance with the provisions of Section 217(2AA) of the Companies
Act,1956, your Directors state:
1. That the accounting standards to the extent applicable to the
Company have been followed in the preparation of the annual accounts
and there are no material departures
2. That the accounting policies selected by the Board for the purpose
of preparation and presentation of the financial statements have been
and are being applied consistently and reasonable and prudent judgments
and estimates (wherever applicable) have been made for the said
purpose, so as to give a true and fair view of the affairs of the
Company as at the end of the financial year under review and of the
profit and loss for the said year.
3. That proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of your company and for
preventing and detecting fraud and other irregularities.
4. That the annual Accounts have been prepared on a going concern
basis.
AUDITORS:
Statutory Auditors
M/s. Dagliya & Co, Chartered Accountants, Secunderabad, the Auditors of
the company retire at the conclusion of the ensuing Annual General
Meeting and are eligible for reappointment. The Board recommends their
reappointment.
Cost Auditors
Your Company had reappointed M/s Sagar & Associates, Cost Accountant,
Hyderabad, as Cost Auditor, with the approval of the Central
Government, for audit of cost records maintained by the Company for the
financial year ended 31st March, 2013. The report of the Cost Auditor
for the Financial Year ended 31st March 2013 is under finalization and
will be filed with the MCA within the prescribed period.
LISTING :
The shares of your company are listed on Mumbai and Kolkata Stock
Exchanges.
PARTICULARS OF EMPLOYEES U/S 217(2A) OF THE COMPANIES ACT, 1956:
There are no employees whose particulars are required to be disclosed
pursuant to the provisions of Section 217 (2A) of the Companies Act,
1956.
FIXED DEPOSITS:
During the year under review, the company has not accepted any deposits
under Section 58A of the Companies Act 1956 read with Companies (
Acceptance of Deposits) Rules, 1975.
CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY
ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:
Information regarding Energy Conservation, Technology Absorption,
Foreign Exchange Earnings and outgo in accordance with Section 217
(1)(e) of the Companies Act, 1956 read with Companies ( Disclosure of
particulars in the report of Board of Directors) Rules 1988, forming
part of the Directors Report for the year ended 31st March, 2013 are as
follows:
Conservation of Energy: The company''s operations require low energy
consumption. Adequate measures are taken to conserve energy wherever
possible. The details required are attached herewith.
Technology Absorption:
a. Research & Development There is no specific Research
and Development activity carried
out by the Company during the year.
b. Technology Absorption NIL
3. Foreign Exchange Earning and Outgo NIL
CORPORATE GOVERNANCE:
The company has implemented the Code for Corporate Governance as
stipulated under the revised Clause 49 of the Listing Agreement. A
separate report on Corporate Governance is annexed to this report.
CODE OF CONDUCT
The Company has adopted a uniform Code of Conduct for Directors and
Senior Management and above Officers level to ensure ethical standards
and ensure compliance to the laid down standards.
DEMATERIALISATION OF SHARES:
M/s. X.L Softech Services Limited, Hyderabad were appointed as
Depository Registrars for dematerialization of shares as well for
transfer of physical shares were entrusted to them.
The ISIN of dematerialized share of the Company allotted by NSDL and
CDSL is "INE570B01012."
ACKNOWLEDGEMENTS:
The Board takes this opportunity to express its deep gratitude for the
continued co-operation and support received from its Bankers, State and
Central Governments, the customers, share holders, business associates
and employees during the year under review.
On behalf of the Board of Directors
Place: Hyderabad. Sd/-
Date : 31.08.2013 S.B CHACHAN
CHAIRMAN & MANAGING DIRECTOR
Mar 31, 2012
To The Members of Aditya Ispat Limited, Hyderabad
The Directors take pleasure in presenting the Twenty First Annual
Report on the affairs of the Company for the financial year 2011-2012
together with the Audited Financial Statements and Report of the
Auditors thereon.
BUSINESS PERFORMANCE:
Financial Results:
The overall performance of the Company for the financial year 2011-12
is summarized as under:
( Rs. in Lakhs)
S.No. Particulars 2011-2012 2010-2011
1. Sales ( Gross) 1815.00 1441.50
Less : Excise Duty 133.42 111.10
Sales ( Net) 1681.58 1330.40
2. Other Income 1.56 1.36
Total Revenue 1683.14 1331.76
3. Gross Profit before Finance Costs,
Depreciation, & taxation 106.84 82.80
4. Financial Costs 59.52 38.96
5. Depreciation 15.29 12.97
6. Profit before tax 32.03 30.87
Less: Provision for current tax 8.60 4.96
Less : Provision for Deferred Tax 1.28 4.63
Net Profit(loss) after tax 22.15 21.28
Add: Balance from previous year 91.68 70.4
Surplus carried to Balance Sheet 113.83 91.68
BUSINESS REVIEW
During the year 2011-12, the Company has posted a turnover of Rs.
1815.01 lakhs as against Rs. 1441.50 lakhs in the previous year and
has earned net profit of Rs. 32.03 lakhs before tax compared to
previous year's profit of Rs. 30.87 lakhs. There is an improvement in
profitability due to increase in turnover and on account of cost
effective means adapted by the management for production. However on
account of inadequate profits, the Board has not recommended any
dividend nor any transfer to reserves.
FUTURE OUTLOOK:
Indian Steel demand growth is expected to remain subdued due to
slowdown in investments and delayed start-up of industrial projects.
However,the automotive/industrial segment, it is expected to grow by
11-13% in Financial year 2012-13. As per world steel forecasts, steel
demand in India should grow up by 6.9% in 2012 and the growth should
accelerate to 9.4% in 2013.
Your Company has registered increase in sales Turnover as well as
Profitability during the year under review. The company is making all
efforts to improve the quality of its products, sales network and
profitability
FINANCIAL RESOURCES
The company has made arrangements with its Banker to enhance cash
credit limit from Rs. 400 lacs to Rs. 600 lacs to meet its working
capital requirements. This will help Company to boosts its turnover in
the coming years.
DIRECTORS:
Shri H.M.Duggar retires by rotation and being eligible offers himself
for reappointment. The Board recommends his reappointment.
DIRECTORS' RESPONSIBILITY STATEMENT:
In accordance with the provisions of Section 217(2AA) of the Companies
Act,1956, your Directors state:
1. That the accounting standards to the extent applicable to the
Company have been followed in the preparation of the annual accounts
and there are no material departures
2. That the accounting policies selected by the Board for the purpose
of preparation and presentation of the financial statements have been
and are being applied consistently and reasonable and prudent judgments
and estimates (wherever applicable) have been made for the said
purpose, so as to give a true and fair view of the affairs of the
Company as at the end of the financial year under review and of the
profit and loss for the said year.
3. That proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of your company and for
preventing and detecting fraud and other irregularities.
4. That the annual Accounts have been prepared on a going concern
basis.
AUDITORS:
Statutory Auditors
M/s. Dagliya & Co, Chartered Accountants, Secunderabad, the Auditors of
the company retire at the conclusion of the ensuing Annual General
Meeting and are eligible for reappointment. The Board recommends their
reappointment.
Cost Auditors
Your Company have appointed M/s Sagar & Associates, Cost Accountants,
Hyderabad, as Cost Auditor, with the approval of the Central
Government, for audit of cost records maintained by the Company for the
financial year ended 31st March, 2012. The due date for filing the Cost
Audit Reports is 30th September, 2012.
LISTING :
The shares of your company are listed on Mumbai and Kolkata Stock
Exchanges.
PARTICULARS OF EMPLOYEES U/S 217(2A) OF THE COMPANIES ACT, 1956:
There are no employees whose particulars are required to be disclosed
pursuant to the provisions of Section 217 (2A) of the Companies Act,
1956.
FIXED DEPOSITS:
During the year under review, the company has not accepted any deposits
under Section 58A of the Companies Act 1956 read with Companies (
Acceptance of Deposits) Rules, 1975.
CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY
ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:
Information regarding Energy Conservation, Technology Absorption,
Foreign Exchange Earnings and outgo in accordance with Section 217
(1)(e) of the Companies Act, 1956 read with Companies ( Disclosure of
particulars in the report of Board of Directors) Rules 1988, forming
part of the Directors Report for the year ended 31st March, 2012 are as
follows:
1. Conservation of Energy: The company's operations require low energy
consumption. Adequate measures are taken to conserve energy wherever
possible. The details required are attached herewith.
2. Technology Absorption:
a. Research & Development There is no specific Research and
Development activity carried out
by the Company during the year.
b. Technology Absorption NIL
3. Foreign Exchange Earning
and Outgo NIL
CORPORATE GOVERNANCE:
The company has implemented the Code for Corporate Governance as
stipulated under the revised Clause 49 of the Listing Agreement. A
separate report on Corporate Governance is annexed to this report.
CODE OF CONDUCT
The Company has adopted a uniform Code of Conduct for Directors and
Senior Management and above Officers level to ensure ethical standards
and ensure compliance to the laid down standards.
DEMATERIALISATION OF SHARES:
M/s. X.L Softech Services Limited, Hyderabad were appointed as
Depository Registrars for dematerialization of shares as well for
transfer of physical shares were entrusted to them.
The ISIN of dematerialized share of the Company allotted by NSDL and
CDSL is "INE570B01012."
ACKNOWLEDGEMENTS:
The Board takes this opportunity to express its deep gratitude for the
continued co-operation and support received from its Bankers, State and
Central Governments, the customers, share holders, business associates
and employees during the year under review.
On behalf of the Board of Directors
Sd/-
S.B CHACHAN
CHAIRMAN & MANAGING DIRECTOR
Place: Hyderabad.
Date : 31st August, 2012
Mar 31, 2011
The Members of Aditya Ispat Limited,
Hyderabad
The Directors take pleasure in presenting the Twentieth Annual Report
on the affairs of the Company for the financial year 2010-2011 together
with the Audited Financial Statements and Report of the Auditors
thereon.
BUSINESS PERFORMANCE:
Financial Results:
The overall performance of the Company for the financial year 2010-11
is summarized as under:
( Rs. in Lakhs)
S.No. Particulars 2010-2011 2009-2010
1. Sales ( Gross) 1441.50 1156.30
Less: Excise Duty 111.10 66.85
Sales ( Net) 1330.40 1089.45
2. Other Income 1.36 1.19
Total Revenue 1331.76 1090.64
3. Gross Profit before
Interest,
Depreciation, & taxation 82.80 48.94
4. Interest/Financial Charges 38.96 15.60
5. Depreciation 12.97 11.20
6. Profit before tax 30.87 22.14
Less: Provision for current tax 5.72 5.69
Less : Provision for Deferred Tax 4.63 1.20
Less :Taxation adjustment for 0.02 (0.01)
earlier years
Add : Mat Credit Entitlement Account 0.78 -
Net Profit(loss) after tax 21.28 15.26
Add: Balance from previous year 70.40 55.14
Surplus carried to Balance Sheet 91.68 70.40
BUSINESS REVIEW
During the year 2010-11, the Company has posted a turnover of Rs
1441.50 lakhs as against Rs. 1156.30lakhs in the previous year and has
earned a net profit before tax of Rs30.87 lakhs compared to previous
yearÃs profit of Rs.22.14 lakhs.. There is an improvement in
profitability due to increased sales and a marginal cost effective
means of production. Due to the inadequate profits, the Board has not
recommended any dividend nor any transfer to reserves.
FUTURE OUTLOOK:
Steel Market is facing a demand crunch due to recessionary trends
started.However, due to increased Govt. spending in infrastructure and
Capital Projects as well as improvement in automobile sector, the
demand for Bright Steel Bars is bound to pick-up gradually.
Your Company has registered increase in sales Turnover as well as
Profitability during the year under review. The company is making all
efforts to improve the quality of its products, sales network and
profitability
FINANCIAL RESOURCES
The company has made preferential issue of convertible warrants
amounting to Rs.25 lakhs (excluding Premium) to the promoter group to
meet the working capital requirements and proposes to further make a
Preferential issue of convertible warrants amounting to Rs.25 lakhs
(excluding Premium if any) to meet the working capital requirements.
The Board has placed relevant resolution before the members in this
regard.
DIRECTORS:
Shri Swamy S.B.Das retires by rotation and being eligible offers
himself for reappointment. The Board recommends his reappointment.
DIRECTORSÃ RESPONSIBILITY STATEMENT:
In accordance with the provisions of Section 217(2AA) of the Companies
Act,1956, your Directors state:
1. That the accounting standards to the extent applicable to the
Company have been followed in the preparation of the annual accounts
and there are no material departures
2. That the accounting policies selected by the Board for the purpose
of preparation and presentation of the financial statements have been
and are being applied consistently and reasonable and prudent judgments
and estimates (wherever applicable) have been made for the said
purpose, so as to give a true and fair view of the affairs of the
Company as at the end of the financial year under review and of the
profit and loss for the said year.
3. That proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of your company and for
preventing and detecting fraud and other irregularities.
4. That the annual Accounts have been prepared on a going concern
basis.
AUDITORS:
M/s. Dagliya & Co, Chartered Accountants, Secunderabad, the Auditors of
the company retire at the conclusion of the ensuing Annual General
Meeting and are eligible for reappointment. The Board recommends their
reappointment.
Comment on Auditors Observation:-
The observations of the Auditors read with the Notes on Accounts are
self explanatory and do not require any comments from the Directors.
LISTING :
The shares of your company are listed on Mumbai and Kolkata Stock
Exchanges.
PARTICULARS OF EMPLOYEES U/S 217(2A) OF THE COMPANIES ACT, 1956:
There are no employees whose particulars are required to be disclosed
pursuant to the provisions of Section 217 (2A) of the Companies Act,
1956.
FIXED DEPOSITS:
During the year under review, the company has not accepted any deposits
under Section 58A of the Companies Act 1956 read with Companies (
Acceptance of Deposits) Rules, 1975.
CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY
ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:
Information regarding Energy Conservation, Technology Absorption,
Foreign Exchange Earnings and outgo in accordance with Section 217
(1)(e) of the Companies Act, 1956 read with Companies ( Disclosure of
particulars in the report of Board of Directors) Rules 1988, forming
part of the Directors Report for the year ended 31st March, 2011 are as
follows:
Conservation of Energy: The companyÃs operations require low energy
consumption. Adequate measures are taken to conserve energy wherever
possible. The details required are attached herewith.
Technology Absorption:
a. Research & Development There is no specific Research
and Development activity carried
out by the Company during the year.
b. Technology Absorption NIL
c. Foreign Exchange
Earning and Outgo NIL
CORPORATE GOVERNANCE:
The company has implemented the Code for Corporate Governance as
stipulated under the revised Clause 49 of the Listing Agreement. A
separate report on Corporate Governance is annexed to this report.
CODE OF CONDUCT
The Company has adopted a uniform Code of Conduct for Directors and
Senior Management and above Officers level to ensure ethical standards
and ensure compliance to the laid down standards.
DEMATERIALISATION OF SHARES:
M/s. X.L Softech Services Limited, Hyderabad were appointed as
Depository Registrars for dematerialization of shares and for physical
shares also the transfer work was entrusted to them.
The ISIN of dematerialized share of the Company allotted by NSDL and
CDSL is ÃINE570B01012.Ã
ACKNOWLEDGEMENTS:
The Board takes this opportunity to express its deep gratitude for the
continued co-operation and support received from its Bankers, State and
Central Governments, the customers, share holders, business associates
and employees during the year under review.
On behalf of the Board of Directors
Sd/-
S.B CHACHAN
CHAIRMAN & MANAGING DIRECTOR
Place: Hyderabad.
Date : 30.08.2011
Mar 31, 2010
The Directors take pleasure in presenting the Nineteenth Annual Report
on the affairs of the Company for the financial year 2009-2010 together
with the Audited Financial Statements and Report of the Auditors
thereon.
BUSINESS PERFORMANCE:
Financial Results:
The overall performance of the Company for the financial year 2009-10
is summarized as under:
( Rs. in Lakhs)
S.
No. Particulars 2009-2010 2008-2009
1. Sales ( Gross) 1156.31 1051.86
Less : Excise Duty 66.85 98.97
Sales ( Net) 1089.45 952.89
2. Other Income 2.87 7.63
Total Revenue 1092.32 960.52
3. Gross Profit before Interest,
Depreciation, & taxation 48.94 42.05
4. Interest/Financial Charges 15.60 12.85
5. Depreciation 11.20 9.80
6. Profit before tax 22.14 19.40
Less: Provision for current tax 5.69 5.59
Less : Provision for Deferred Tax 1.20 (1.33)
Less Taxation adjustment
for earlier years (0.01) (0.01)
Net Profit(loss) after tax 15.26 15.15
Add: Balance from previous year 55.14 39.99
Surplus carried to Balance Sheet 70.40 55.14
BUSINESS REVIEW
During the year under consideration your company has posted a turnover
of Rs 1156.31 lakhs as against earlier years turnover of Rs. 1051.86
lakhs and has earned a net profit of Rs 22.14 lakhs compared to
previous years profit of Rs. 19.40 lakhs.. There is an improvement in
profitability and turnover during the year under consideration. Due to
inadequate profits, the Board has not recommended any dividend nor any
transfer to reserves.
FUTURE OUTLOOK:
Following the worst global economic recession of two years, the world
seems to be regaining economic stability. The growth rate of developing
world viz. China, India and Brazil have registered higher levels of
economic growth with robust domestic market. The demand of steel in
automotive products, engineering products, building construction and
infrastructure projects has already started picking up. Therefore the
companys product Bright Steel Bars will be in good demand.
FINANCIAL RESOURCES
The company has made an arrangement with its Banker to enhance cash
credit limits from Rs.150 lacs to Rs. 400 lacs to meet its working
capital requirements. This will help company to achieve higher turnover
in the coming years.
DIRECTORS:
Mr. Sanjay Solanki, retires by rotation and being eligible offers
himself for reappointment. The Board recommends his reappointment.
DIRECTORS RESPONSIBILITY STATEMENT:
In accordance with the provisions of Section 217(2AA) of the Companies
Act,1956, your Directors state:
1. That the accounting standards to the extent applicable to the
company have been followed in the preparation of the annual accounts
and there are no material departures
2. That the accounting policies selected by the Board for the purpose
of preparation and presentation of the financial statements have been
and are being applied consistently and reasonable and prudent judgments
and estimates (wherever applicable) have been made for the said
purpose, so as to give a true and fair view of the affairs of the
company as at the end of the financial year under review and of the
profit and loss for the said year.
3. That proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of your company and for
preventing and detecting fraud and other irregularities.
4. That the annual Accounts have been prepared on a going concern
basis.
AUDITORS:
M/s. Dagliya & Co, Chartered Accountants, Secunderabad, the Auditors of
the company retire at the conclusion of the ensuing Annual General
Meeting and are eligible for reappointment. The Board recommends their
reappointment.
Comment on Auditors Observation:
The observations of the Auditors read with the Notes on Accounts are
self explanatory and do not require any comments from the Directors.
LISTING :
The shares of your company are listed on Mumbai and Kolkata Stock
Exchanges.
PARTICULARS OF EMPLOYEES U/S 217(2A) OF THE COMPANIES ACT, 1956:
There are no employees whose particulars are required to be disclosed
pursuant to the provisions of Section 217 (2A) of the Companies Act,
1956.
FIXED DEPOSITS:
During the year under review, the company has not accepted any deposits
under Section 58A of the Companies Act 1956 read with Companies (
Acceptance of Deposits) Rules, 1975.
CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY
ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:
Information regarding Energy Conservation, Technology Absorption,
Foreign Exchange Earnings and outgo in accordance with Section 217
(1)(e) of the Companies Act, 1956 read with Companies ( Disclosure of
particulars in the report of Board of Directors) Rules 1988, forming
part of the Directors Report for the year ended 31st March, 2010 are as
follows:
Conservation of Energy: The companys operations require low energy
consumption. Adequate measures are taken to conserve energy wherever
possible. The details required are attached herewith.
Technology Absorption:
a. Research & Development There is no specific Research and
Development
activity carried out by the Company
during the year.
b. Technology Absorption NIL
Foreign Exchange :
Earnings and Outgo NIL
CORPORATE GOVERNANCE:
The company has implemented the Code for Corporate Governance as
stipulated under the revised Clause 49 of the Listing Agreement. A
separate report on Corporate Governance is annexed to this report.
CODE OF CONDUCT
The company has adopted a uniform code of conduct for directors and
senior management and above officers level to ensure ethical standards
and ensure compliance to the laid down standards.
DEMATERIALISATION OF SHARES:
M/s. X.L Softech Services Limited, Hyderabad were appointed as
Depository Registrars for dematerialization of shares as well for
transfer of physical shares also.
The ISIN of dematerialized share of the Company allotted by NSDL and
CDSL is "INE570B01012."
ACKNOWLEDGEMENTS:
The Board takes this opportunity to express its deep gratitude for the
continued co-operation and support received from its Bankers, State and
Central Governments, the customers, share holders, business associates
and employees during the year under review.
On behalf of the Board of Directors
Place: Hyderabad.
Date : 31.08.2010 S.B CHACHAN
CHAIRMAN & MANAGING DIRECTOR