Mar 31, 2015
The Directors have pleasure in presenting their 35th Annual Report and
Audited Accounts for the financial year ended 31st March 2015.
(Rs. in Lakhs)
FINANCIAL RESULTS: 2014-2015 2013-2014
Turnover during the year 4151.08 3422.54
Profits/(Loss) before Depreciation & Tax 265.10 56.53
Less: Depreciation 33.04 31.22
Profits/(Loss) before Tax 232.06 25.31
Provision for Tax
: Current Tax -- --
: Deferred Tax (2.49) 1.64
Profit/(Loss) after tax 229.57 26.95
Add/(Less) past Year Adjustment 1.84 --
Less: Depreciation(Assets Written off) (5.27) --
Profit/(Loss) brought forward (390.46) (417.41)
Balance carried forward (164.32) (390.46)
OPERATIONS:
The sales turnover of the Company for the year was Rs.4151.08 lakhs as
compared to previous year Rs.3422.54 lakhs. Production for the year was
13372.691 M.T as compared to previous year 11898.068 MT.
The Sales turnover of the company has been increased by 21.29% as
compared to previous year and production of the Company has been
increased by 12.39% as compared to previous year.
MANAGEMENT DISCUSSION AND ANALYSIS
PERFORMANCE REVIEW:
In the competitive market, the Company was able to achieve Sales and
Other Income, in monetary terms for the year to Rs. 41.51 crores as
compared to Rs. 34.23 crores in the previous year and the Income was
Rs. 0.10 crores as compared to Rs. 0.06 crores in the previous year.
The profitability of the Company has been increased as compared to
previous year inspire of slackness of sale of
writing,printing&newsprint paper.
INDUSTRY OVERVIEW:
The Indian paper industry is highly fragmented. According to estimates,
the total number of mills vary from anywhere between 500 to over 1000.
The top five producers account for 15 per cent of the total paper
capacity in the country. The industry is highly diverse, technical and
capital intensive. Further norms relating to environmental pollution
such as chlorine free operations and tighter effluent
treatment/discharge parameters etc. have restricted rapid expansion of
paper industry's capacity. Paper consumption is an indicator of the
economic and literacy status of any country. While India accounts for
nearly 15% of the world population, it consumes only1% of the world
paper production. India's per capita consumption of paper at about 7
kgs. is very low as compared to the world average of over 50 kgs. The
impact of just 1 kg. Increase in per capita consumption would lead to
increase in demand by 1.1 million M.T. of paper. Paper demand is
inextricably linked to economic growth, industrial production,
advertisement expenditure, expenditure on education etc. while
industrial paper demand is driven by industrial output and packaging
industry growth etc. printing and writing paper demand is determined by
public spending on education, expenditure on publicity and general
literacy levels. The growing demand of paper has encouraged a gradual
improvement in capacity utilizations. Stringent pollution control norms
will act as a determent to smaller players from adding capacities as it
would require significant investment to upgrade the existing facility
to meet these norms. Though currently there is no law in force, the
company that the Indian paper industry will be compelled to eliminate
the use of chlorine for bleaching in the next few years.
The paper industry in India is dependent on three parameters:
1. The literacy level (which is dependent on government expenditure on
education).
2. The GDP growth rates India has witnessed phenomenal development in
the field of education  both in quantitative and qualitative terms,
since independence. However, the national goals of universal
elementary education and total eradication of illiteracy still remain
elusive. The Government is committed to achieving these national goals
and has been steadily increasing the budgetary allocation for
education. The Country has also made significant strides in higher and
technical education. With the Indian economy on a growth path and the
government increasing emphasis on the education the future of the
Indian paper industry looks positive with immense growth potential.
3. The domestic demand of paper has been forecasted to be 10 million
M.T. by 2010 and over 14 Million M.T.by the year 2020. At present the
demand of the paper is witnessing a healthy growth of 6.6%(app.) as
compared to 5 percent (pp.) in the past. The Indian paper industry is
highly fragmented with a large number of organized and unorganized
players operating in the market. Some of the key players in the
industry are Ballarpur Industries, ITC, Sirpur Paper Mills, West Coast
Paper Mills, J K Paper, Century Paper Mills, Tamil Nadu Newsprint,
Hindustan Paper Corporation Limited, Rama Newsprint & Papers Limited
etc. Indian paper industry needs the following to be globally more
competitive:
- Sustained availability of good quality of raw materials (forest
based) and bulk import of waste paper to supplement the raw materials
supplies.
- Adequate modernization of the manufacturing facilities.
- Improvement of infrastructure.
- Quality improvements and reduction in cost of production.
- Import policy conducive for import of material, equipment,
instruments, raw materials and technologies.
- Achieving Economies of Scale.
However, the Prospects of paper industry appear positive with the
existing demand-supply gap, and the Government's focus on education at
every level. The further imposition of 1% Higher education Cess and
Education Cess of 2% introduced by the Government reflects the focus of
the Government towards Education in the Country. The above steps
initiated by the Government are expected to further fuel the demand for
paper.
Domestic paper prices are linked with international price. Hence, paper
prices in India are very much dependent on the international demand
supply situation for paper. However, recent stress on education sector
and growth in the retail sector has acted as a catalyst for demand in
packaging grade paper and therefore the fortunes of the Indian Paper
Industry is largely internally driven.
OUTLOOK FOR THE COMPANY:
The paper industry has been showing signs of increasing demand, and the
long-term outlook and growth prospects of the industry appear positive.
The rapid industrialization of the country during the previous five
years plans together with the increase in population escalated the
country's demand for paper and paperboards. The extent of usages of
paper & Packaging Industry in a country is generally taken as
parameters of its cultural and industrial activities. It plays an
increasingly important role in modern civilized society.
FACTORS AFFECTING OUR FUTURE RESULTS OF OPERATIONS:
Our future results of operations may potentially be affected by the
following factors:
- Competitive conditions in the industry.
- Growth of paper sector in India.
- Our ability to continuously operate and maintain our manufacturing
facilities optimally.
- Technological changes in the industry.
- Escalation in prices as well as the availability of raw materials.
- General economic and business conditions in India.
HUMAN RESOURCES:
The Company continues its focus on development of human resource. The
relations of the management with employees during the year continued to
be cordial. Learning and development has been strengthened to bring
value addition in the employee and to enhance Team Building leading
towards success. The Company focuses on providing the employees
motivating work environment and excellent career development
opportunities.
INTERNAL CONTROL SYSTEMS:
The Company has effective internal control systems for compliance of
laws, rules and regulations to safeguard the interest of the Company.
The Company maintains a system of internal controls designed to provide
reasonable assurance regarding the effectiveness and efficiency of
operations and for safeguarding the assets of the Company and for
ensuring appropriate recording and reporting of financial information
for ensuring reliability of financial controls and for ensuring
compliance of applicable laws and regulations. The internal audit
covers a wide variety of operational matters and ensures compliance
with specific standards with regard to reliability and suitability of
policies and procedures. The internal auditor system report to the top
management through Chairman & Managing Director and continuously
monitors adherence to lay down systems and policies through a
structured internal audit process. The systems are regularly reviewed
and modified for changes in operating and regulatory requirements. The
Audit Committee reviews the adequacy and effectiveness of internal
control systems and suggests improvement for strengthening the same
from time to time.
RISKS & CONCERNS:
The unprecedented variation in the prices of raw materials,
particularly Waste paper, Chemicals, consumables, coal and other
inputes for executing paper orders in uncertain market condition. The
unutilized capacity in the paper industry and intense competition
adversely impact product prices and margins.
The domestic demand supply scenario is expected to be balanced even
though a number of capacity expansions are expected to be implemented
by various companies the state over the next 1-2 years. In this
scenario, the player with lower production costs would be in a position
to utilize capacities optimally.
The products prices are subjected to changes with international price.
Sharp fall in price will affect the profitability of the unit.
Adverse climatic condition will affect the supply line of the product
which will affect the operation and profitability.
DIVIDEND:
The Company has incurred Profit during the financial year and no
dividend has been declared.
PUBLIC DEPOSITS:
During the year the company has not accepted any Fixed Deposits within
the meaning of Section 73 and 74 of the Companies Act, 2013.
EXPENDITURE ON R & D:
Research, Development and Improvement of Products are in built on going
activity within the existing manufacturing operation of the company.
Expenditure on R & D is not separately allocated and identified.
TECHNOLOGY ABSORPTION, ADAPTATION & INNOVATION:
The Company does not require any technical knowhow as the process of
manufacturing is conventional one. The Company does not have any
separate technical arrangement for running the unit.
COMPANIES (PARTICULARS OF EMPLOYEES OF GOVERNMENT COMPANIES & OTHER
COMPANIES), AMENDMENT RULE, 2011
There are no employees who have received remuneration more than Rs.
60,00,000/- (Rupees Sixty Lacs) p.a. being employed throughout the year
or more than Rs. 5,00,000/- (Rupees Five Lacs ) p.m. for part of the
year as specified under Section 134 of the Companies Act, 2013 read
with the (Particulars of Government Companies and Companies) Amendment
Rules, 2011.
CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION
As required under companies (Disclosure of particulars in the Report of
Board of Directors) Rule, 1988 the necessary particulars regarding
conservation of energy are given in Annexure-1 to this report.
CORPORATE GOVERNANCE:
Pursuant to Clause 49 of the Listing Agreement, a report on Corporate
Governance and the Company Secretary Certificate in this regard form
part of this report and are annexed herewith in Annexure-II.
DIRECTORS
In accordance with the provision of the Companies Act, 2013 Sri. Anil
Kumar Gilra and Sri. Chava Suresh Babu retires by rotation at this
meeting, and being eligible, offer themselves for reappointment.
Pursuant to Section 149(1) of the Companies Act, 2013 the Board of
directors of the Company has on 13.02.2015 appointed woman director Ms.
Rekha Bhawsinka as Additional Director in the category of Non-executive
Independent Director. Ms. Rekha Bhawsinka shall hold office up to death
of the ensuing Annual General Meeting of the Company and, being
eligible, offer herself for re-appointment.
The Directors recommend their appointment/re-appointment at the ensuing
Annual General Meeting.
DIRECTOR' S RESPONSIBILITY STATEMENT:
Your Directors confirm:
Pursuant to the requirement under Section 134(3)(c) of the Companies
Act, 2013 with respect to Director's Responsibility Statement, it is
hereby confirmed that:
(a) In the preparation of the annual accounts for the financial year
ended 31st March, 2015, the applicable accounting standards had been
followed along with proper explanation relating to material departures;
(b) We have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the company as at 31st March 2015 and the Statement of Profit and Loss
of the company for that period;
(c) We have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 2013 for safeguarding the assets of the company and for
preventing and detecting fraud and other irregularities;
(d) We have prepared the Annual Accounts on a going concern basis; and
(e) We have devised proper systems to ensure compliance with the
provisions of all applicable laws and that such systems were adequate
and operating effectively.
COST AUDITORS
Pursuant to the Provisions of Section 148 of the Companies Act, 2013
M/s. RAY, NAYAK & ASSOCIATES, Cost Accountants (F.R.N.No. 000241) were
appointed as the Cost Auditors to conduct audit of cost records for
manufacturing Paper and Paper Board for the financial year 2014-15.
The Cost Audit Report for the financial year ended 31st March, 2014 has
been filed with Ministry of Corporate Affairs.
RELATED PARTY TRANSACTIONS
All related party transactions that were entered into during the
financial year were on arm's length basis and were in the ordinary
course of company's business. The Company has not entered into any
contract, arrangement or transaction with any related party which could
be considered as material within the meaning of clause 49 of the
listing Agreement.
Related party transactions under Accounting Standard ÂAS18 are
disclosed in the notes to the financial statements.
EXTRACT OF ANNUAL RETURN
The extract of Annual Return as on March 31, 2015 in the prescribed
form No. MGT-9, pursuant to section 92(3) of theCompanies Act, 2013 and
Rule 12(1) of the Companies (Management and Administration) Rules, 2014
is attached herewith as Rs, Annexure III' and forms part of this Report.
AUDITORS:
The Auditors of the Company M/s. B R R & Associates, retire at this
ensuing Annual General Meeting and being eligible, offer themselves for
reappointment as auditors of the Company. Your Directors recommend the
same for your consideration.
APPRECIATION:
Your Directors express their sincere thanks and place on record their
deep appreciation for the patronage extended by the shareholders,
valued customers, Bankers, Government authorities and the investors for
their continued support and confidence in the Company.
FOR & ON BEHALF OF BOARD OF DIRECTORS
PLACE: CUTTACK ANIL KUMAR GILRA
DATE: 12th August, 2015 WHOLETIME DIRECTOR
Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting their 34th Annual Report and
Audited Accounts for the financial year ended 31st March 2014.
(Rs. in Lakhs)
FINANCIAL RESULTS: 2013-2014 2012-2013
Turnover during the year 3422.54 2232.48
Profits/(Loss) before Depreciation & Tax 56.53 42.91
Less: Depreciation 31.22 34.10
Profits/(Loss) before Tax 25.31 8.81
Provision for Tax
: Current Tax - (1.68)
: Deferred Tax 1.64 (10.94)
Profit/(Loss) after tax 26.95 (3.81)
Add/(Less) past Year Adjustment - 0 .84
Profit/(Loss) brought forward (417.41) (414.44)
Balance carried forward (390.46) (417.41)
OPERATIONS:
The sales turnover of the Company for the year was Rs.3422.54 lakhs as
compared to previous year Rs.2232.48 lakhs. Production for the year was
11898.068 M.T as compared to previous year 8102.358 MT.
The Sales turnover of the company has been increased by 53.31% as
compared to previous year and production of the Company has been
increased by 46.85% as compared to previous year. The profit margin has
been affected due to increase in cost of Power & Fuel and Consumables.
DIVIDEND:
The Company has incurred marginally Profit during the financial year
and no dividend has been declared.
PUBLIC DEPOSITS:
During the year the company has not accepted any Fixed Deposits within
the meaning of Section 58A of the Companies Act, 1956.
EXPENDITURE ON R & D:
Research, Development and Improvement of Products are in built on going
activity within the existing manufacturing operation of the company.
Expenditure on R & D is not separately allocated and identified.
TECHNOLOGY ABSORPTION, ADAPTATION & INNOVATION:
The Company does not require any technical know how as the process of
manufacturing is conventional one. The Company does not have any
separate technical arrangement for running the unit.
COMPANIES (PARTICULARS OF EMPLOYEES OF GOVERNMENT COMPANIES & OTHER
COMPANIES), AMENDMENT RULE, 2011
There are no employees who have received remuneration more than Rs.
60,00,000/- (Rupees Sixty Lacs) p.a. being employed throughout the year
or more than Rs. 5,00,000/- (Rupees Five Lacs) p.m. for part of the
year as specified under Section 217 (2A) (a) and 217 (2A) (b) of the
Companies Act, 1956 read with the (Particulars of Government Companies
and Companies) Amendment Rules, 2011.
CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION
As required under companies (Disclosure of particulars in the Report of
Board of Directors) Rule, 1988 the necessary particulars regarding
conservation of energy are given in Annexure-1 to this report.
CORPORATE GOVERNANCE:
Pursuant to Clause 49 of the Listing Agreement, a report on Corporate
Governance and the Company Secretary Certificate in this regard form
part of this report and are annexed herewith in Annexure-II.
DIRECTORS
In accordance with the provision of the Companies Act, 1956 Sri. Lalit
Narayan Sarda and Sri. Mahadev Rathi retires by rotation at this
meeting, and being eligible, offer themselves for reappointment.
Sri Ratan Kumar Gilra, has resigned due to his health problem and in
the Board meeting held on 13.11.2013, his resignation has been
accepted. Your Directors wish to place on record the deep sense of
attitude and appreciation of the contributions made by Sri. Ratan
Kumar Gilra during his tenure as Chairman of the Company.
DIRECTOR'' S RESPONSIBILITY STATEMENT:
The Board of Directors of your Company state:
i. THAT in the preparation of the annual accounts, the applicable
accounting standards had been followed except AS-15 (Revised) is not in
conformity.
ii. THAT the Directors had selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable & prudent so as to give a true & fair view of the state of
affairs of the Company at the end of the financial year and of the
Profit of the Company for that period.
iii. THAT the Directors has taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 safeguarding the assets of the
Company and for preventing and detecting fraud and other
irregularities.
iv. THAT the Directors have prepared the annual accounts on a going
concern basis. ACCOUNTING STANDARD - 15 (Revised)
The Statutory Auditors, M/s. B R R & Associates, in the Audit Report
has pointed out that the Company has made provision in the Books of
Account for retirement benefits of employees (i.e. Gratuity and Leave
Cash encashment) but the same are not in conformity with Accounting
Standard - 15 (Revised).
The Board of Directors has reviewed the matter and decided to take
steps in Complying the provision of Accounting Standard - 15 (Revised).
COST AUDITORS
In terms of the provisions of Section 233B of the Companies Act, 1956,
the Board of Directors of your Company have on recommendation of the
Audit Committee, appointed M/s. RAY, NAYAK & ASSOCIATES, Cost
Accountants, Bhubaneswar as Cost Auditors, to conduct the cost audit of
your Company for the financial year ending 31st March, 2015. The Cost
Audit Report for the financial year ended 31st March, 2013 has been
filed with Ministry of Corporate Affairs.
AUDITORS:
The Auditors of the Company M/s. B R R & Associates, retire at this
ensuing Annual General Meeting and being eligible, offer themselves for
reappointment as auditors of the Company. Your Directors recommend the
same for your consideration.
APPRECIATION:
Your Directors express their sincere thanks and place on record their
deep appreciation for the patronage extended by the shareholders,
valued customers, Bankers, Government authorities and the investors for
their continued support and confidence in the Company.
FOR & ON BEHALF OF BOARD OF DIRECTORS
PLACE: CUTTACK ANIL KUMAR GILRA
DATE: 13th August, 2014 WHOLETIME DIRECTOR
Mar 31, 2013
The Directors have pleasure in presenting their 33rd Annual Report and
Audited Accounts for the financial year ended 31st March 2013.
(Rs. in Lakhs)
FINANCIAL RESULTS: 2012-2013 2011-2012
Turnover during the year 2232.48 2541.08
Profits/(Loss) before Depreciation & Tax 42.91 70.75
Less: Depreciation 34.10 65.64
Profits/(Loss) before Tax 8.81 5.11
Provision for Tax
: Current Tax (1.68) (0.95)
: Deferred Tax (10.94) (7.85)
Profit/(Loss) after tax (3.81) (3.69)
Add/(Less) past Year Adjustment 0.84 (1.28)
Profit brought forward (414.44) (409.47)
Balance carried forward (417.41) (414.44)
OPERATIONS:
The sales turnover of the Company for the year was Rs.2232.48 lakhs as
compared to previous year Rs.2541.08 lakhs. Production for the year was
8102.358 M.T as compared to previous year 9425.025 MT.
The Sales turnover and production of the Company has been decreased as
compared to previous years due to shortage of Working Capital. The
profit margin has been affected due to increase in cost of Power & Fuel
and Consumables.
DIVIDEND:
The Company has incurred marginally Profit during the financial year
and no dividend has been declared.
PUBLIC DEPOSITS:
The Statutory Auditors, M/s. L.N. More & Co., in the Audit Report has
pointed out that the company has accepted deposit of Rs. 20.00 lacs
from a Proprietor concern during the year which, in our opinion, is not
confirmity with the provisions of Section 58A of the Companies Act,
1956.
The Auditor Report has been placed before the Board of Directors, after
discussion it has been confirmed that the company has received Rs.
20.00 lacs as Security Deposit from Proprietory concern for supply of
finished products and in our opinion, the company does not attract
provisions of Section 58A of the Companies Act, 1956.
EXPENDITURE ON R & D:
Research, Development and Improvement of Products are in built on going
activity within the existing manufacturing operation of the company.
Expenditure on R & D is not separately allocated and identified.
TECHNOLOGY ABSORPTION, ADAPTATION & INNOVATION:
The Company does not require any technical know how as the process of
manufacturing is conventional one. The Company does not have any
separate technical arrangement for running the unit.
COMPANIES (PARTICULARS OF EMPLOYEES OF GOVERNMENT COMPANIES & OTHER
COMPANIES), AMENDMENT RULE, 2011
There are no employees who have received remuneration more than Rs.
60,00,000/- (Rupees Sixty Lacs) p.a. being employed throughout the year
or more than Rs. 5,00,000/- (Rupees Five Lacs ) p.m. for part of the
year as specified under Section 217 (2A) (a) and 217 (2A) (b) of the
Companies Act, 1956 read with the (Particulars of Government Companies
and Companies) Amendment Rules, 2011.
CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION
As required under companies (Disclosure of particulars in the Report of
Board of Directors) Rule, 1988 the necessary particulars regarding
conservation of energy are given in Annexure-1 to this report.
CORPORATE GOVERNANCE:
Pursuant to Clause 49 of the Listing Agreement, a report on Corporate
Governance and the Company Secretary Certificate in this regard form
part of this report and are annexed herewith in Annexure-II.
DIRECTORS
In accordance with the provision of the Companies Act, 1956 Sri. Ratan
Kumar Gilra and Sri. Anil Kumar Gilra retires by rotation at this
meeting, and being eligible, offer themselves for reappointment.
Sri Ratan Kumar Gilra, will be appointed as Non-Executive Chairman from
the post of Executive Chairman of the Company subject to approval by
the shareholders in this ensuing Annual General Meeting.
Sri. Shiv Shankar Taparia has been appointed as Managing Director in
the Board Meeting held on 10.12.2012 and the same has been confirmed in
the Extra Ordinary General Meeting on 07.01.2013.
The Special Director appointed by BIFR has been withdrawn by BIFR with
effect from 20.03.2013 as per the BIFR Minutes due to company''s
networth has been positive. The BIFR has deregistered the case and the
company is not a sick company with effect from 20.03.2013.
DIRECTOR'' S RESPONSIBILITY STATEMENT:
The Board of Directors of your Company state:
i. THAT in the preparation of the annual accounts, the applicable
accounting standards had been followed except AS-15 (Revised) is not in
conformity.
ii. THAT the Directors had selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable & prudent so as to give a true & 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 that period.
iii. THAT the Directors has taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 safeguarding the assets of the
Company and for preventing and detecting fraud and other
irregularities.
iv. THAT the Directors have prepared the annual accounts on a going
concern basis.
ACCOUNTING STANDARD Â 15 (Revised)
The Statutory Auditors, M/s. L.N. More & Co., in the Audit Report has
pointed out that the Company has made provision in the Books of Account
for retirement benefits of employees (i.e. Gratuity and Leave Cash
encashment) but the same are not in conformity with Accounting Standard
 15 (Revised).
The Board of Directors has again reviewed the matter and decided to
take steps in coming years in Complying the provision of Accounting
Standard  15 (Revised).
COST AUDITORS
In terms of the provisions of Section 233B of the Companies Act, 1956,
the Board of Directors of your Company have on recommendation of the
Audit Committee, appointed M/s. RAY, NAYAK & ASSOCIATES, Cost
Accountants, Bhubaneswar as Cost Auditors, to conduct the cost audit of
your Company for the financial year ending 31st March, 2014. The Cost
Audit Report for the financial year ended 31st March, 2012 has been
filed with Ministry of Corporate Affairs.
AUDITORS:
The Auditors of the Company M/s. L.N. More & Company, retire at this
ensuing Annual General Meeting and being eligible, offer themselves for
reappointment as auditors of the Company. Your Directors recommend the
same for your consideration.
APPRECIATION:
Your Directors express their sincere thanks and place on record their
deep appreciation for the patronage extended by the shareholders,
valued customers, financial institutions, Bankers, Government
authorities and the investors for their continued support and
confidence in the Company.
FOR & ON BEHALF OF BOARD OF DIRECTORS
PLACE: CUTTACK ANIL KUMAR GILRA
DATE: 14th August, 2013 WHOLETIME DIRECTOR
Mar 31, 2010
The Directors have pleasure in presenting their 30th Annual Report and
Audited Accounts for the financial year ended 31st March 2010.
(Rs. in Lakhs)
FINANCIAL RESULTS: 2009-2010 2008-2009
Turnover during the year 1843.42 2661.52
Profits/(Loss) before Depreciation & Tax (64.79) (209.52)
Less: Depreciation 98.10 108.66
Profits/(Loss) before Tax (162.89) (318.18)
Provision for Tax
: Deferred Tax 33.95 35.01
: Fringe Benefit Tax - 0.22
Profit/(Loss) after tax (128.94) (283.39)
Add/(Less) past Year Adjustment (0.24) 0.10
Profit brought forward (2307.33) (2024.04)
Balance carried forward - (2436.51) (2307.33)
OPERATIONS:
The sales turnover of the Company for the year was Rs. 1843.42 lakhs as
compared to previous year Rs.2661.52 lakhs. Production for the year was
10318.686 M.T as compared to previous year 14595.614 MT.
The Sales turnover and production has been decreased due to financial
crisis and this has resulted advers.e effects on profitability of the
company.
DIVIDEND:
The Company has incurred losses during the financial year and no
dividend has been declared.
PUBLIC DEPOSITS:
During the year the Company has not accepted any fixed deposits within
the meaningof Sec. 58 A of the Companies Act, 1956.
EXPENDITURE ON R & D:
Research, Development and Improvement of Products are in built on going
activity within the existing manufacturing operation of the company.
Expenditure on R & D is not separately allocated and identified.
TECHNOLOGY ABSORPTION, ADAPTATION & INNOVATION:
The Company-does not require any technical know how as the process of
manufacturing is conventional one; The Company does not have any
separate technical arrangement for running the unit.
PARTICULARS OF EMPLOYEES & INDUSTRIAL RELATIONS:
None of the employees has been in receipt of remuneration as envisaged
in Section 217 (2A) of the Companies Act, 1956.
CONSERVATION OF ENERGY:
As required under companies (Disclosure of particulars in the Report of
Board of Directors) Rule, 1988 the necessary particulars regarding
conservation of energy are given in Annexure-1 to this report.
BOARD FOR INDUSTRIAL & FINANCIAL RECONSTRUCTION (BIFR):
The Cor pany has submitted revised Rehabilitation Scheme to State Bank
of India (OA) for their review and submission of report to BIFR for
necessary revival of the Company.
CORPORATE GOVERNANCE:
Pursuant to Clause 49 of the Listing Agreement, a report on Corporate
Governance and the Company Secretary Certificate in this regard form
part of this report and are annexed herewith in Annexure-ll.
DIRECTORS ,
As per proposal received from some members of the company pursuant to
provision of Section 257 of the Company Act 1956, Mr. Shiv Shankar
Taparia (Independent Director), Mr. Velamalajagdish (Independent Nori
Executive Director), Mr. Venkateswarlu Velamala (Independent Non
Executive Director), Mr. Lalit Narayan Sarda (Independent Non Executive
Director), Mr. Mahadev Rathi (Independent Non Executive Director), are
being proposed to be appointed as Directors of the Company liable to
retire by rotation. Further Mr. Shiv Shankar Taparia is appointed as
Executive Director by the Board of Directors for a period of 3 years
without any remuneration. The Resolutions seeking your approval for the
said appointments are being placed in the ensuing Annual General
Meeting.
Mr. Sunil Kumar Malpani resigned from the Board w.e.f. 20.02.2010.
YourDirectors wish to place on record their deep sense of gratitude and
appreciation of the contributions made by Mr.Sunil Kumar Malpani during
his tenure as a Director of the Company.
DIRECTORS RESPONSIBILITY STATEMENT:
The Board of Directors of your Company state:
i. THAT in the preparation of the annual accounts, the applicable
accounting standards had been followed except AS-15 (Revised), is not
in conformity.
ii. THAT the Directors had selected such accounting policies and
applied them consistently and made judgements and estimates that are
reasonable & prudent so as to give a true & fair view of the state of
affairs^of the Company at the end of - the financial yearand of the
loss of the Company for that period.
iii. THAT the Directors has taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 safeguarding the assets of the
Company and for preventing and detecting fraud and other
irregularities.
iv. THAT the Directors have prepared the annual accounts on a going
concern basis.
ACCOUNTING STANDARD - 15 (Revised)
The Statutory Auditors, M/s, L.N. More & Co., in the Audit Report has
pointed out that the Company has made provision in the Books of Account
for retirement benefits of employees (i.e. Gratuity and Leave Cash
encashment) but the same are not in conformity with Accounting
Standard - 15 (Revised).
The Board of Directors has reviewed the matter and decided to take
steps shortly in Complying the provision of Accounting Standard - 15
(Revised).
ONE TIME SETTLEMENT (OTS) WITH STATE BANK OF INDIA
The Statutory Auditors, M/s. L.N. More & Co., has pointed out in their
Audit Report that other liabilities and accumulated losses have been
overstated to the extent of Rs.14.93 Crores due to non writing back of
the waiver amount by State Bank of India on One Time Settlement of
their dues.
The Board of Directors has taken stand that the amount will be written
back in the books of Account after sanction of the Rehabilitation
Scheme by BIFR.
AUDITORS:
The Auditors of the Company M/s. L.N. More & Company, retire at this
ensuing Annual General Meeting and being eligible, offer themselves for
reappointment as auditors of the Company.
APPRECIATION:
Your Directors express their sincere thanks and place on record their
deep appreciation for the patronage extended by the shareholders,
valued customers, financial institutions, Bankers, Government
authorities and the investors for their continued support and
confidence in -the Company. -
FOR & ON BEHALF OF BOARD OF DIRECTORS
RATAN KUMAR GILRA
CHAIRMAN & MANAGING DIRECTOR
PLACE : CUTTACK
DATE : 31st JULY 2010