Mar 31, 2014
Dear Members
The Directors have pleasure in presenting the 21st Annual Report of
the Company, together with the Audited Accounts, for the year ended
31st March, 2014.
1. Financial Results
(Rs. in Crores)
F.Y 2013-14 F.Y. 2012-13
Sales & Other Income (net) 67.22 89.02
Profit/(Loss) before Interest (11.00) 05.00
& Depreciation
Less: Interest & Other 17.77 03.69
Financial Charges
Less: Depreciation 02.83 02.83
Profit/(Loss) before tax and (21.70) (01.52)
exceptional items
Add / (Less): Exceptional items - -
Profit/(Loss) before tax and after (21.70) (01.52)
exceptional items
Less: Provision for Taxation
Less/(Add): Deferred Tax (0.04) (0.64)
Net Profit /(Loss) after Tax (1.72) (0.88)
Balance as per last year 03.75 04.25
Balance Carried Forward (13.56) 03.37
2. Operations & Future Prospects
The Company''s accounts were restructured by its Bankers towards the end
of F.Y. 12-13. However, the finance provided to the Company was
inadequate to maintain its scale of operations and the repayment
obligations were extremely stringent. As a result, and due to the added
impact of a continued global slowdown in the steel market and various
other factors, Company''s manufacturing units were forced to temporarily
suspend production from November, 2014 onwards. However, there has
been a recent resurgence in the Construction sector fueled by reforms
by the Central Government. Resultantly, there has been a sustainable
spike in demand for TMT rebars which is expected to increase further in
the near future.
Furthermore, there has been significant appreciation in the assets of
the Company including its land & building and other fixed assets in the
recent past resulting in a major boost to the overall valuation of the
physical assets of the Company.
Therefore, despite having suffered operational bottlenecks in the past
due to the prevalent economic conditions and under- financing, the
Company, boosted by attractive valuations and a positive outlook for
the industry, has decided on a complete overhaul of operations and
finances in the F.Y. 2014-15. The following measures have been
identified and put in process by the Company :-
1. Enhancement of borrowing limits of the Company to address the issue
of under-financing. In this respect, the Company is already in
discussions with Strategic Investors and has entered into a Memorandum
of Understanding for raising investment for restart and revival of its
manufacturing operations. As per the discussions and documented
commitments by the investors, the Company is confident of being able to
raise finance starting in the month of October, 2014. Accordingly, the
Company also plans to gradually repay its overdue liabilities to its
Bankers and ensure Standardization of its accounts in a phase-wise
manner.
2. Expansion of production and modernization of units to meet the
increasing demand for TMT Bars fueled by recent reforms in the
Construction industry. The Company recognizes the need to constantly
reduce costing by way of achieving economies of scale and modernization
of its manufacturing facilities. Therefore, for better efficiencies,
utilization of existing facilities, reduction in cost and to cater to
upcoming surge in demand, the Company has decided to expand its
production capacities starting F.Y. 2014-15.
Taking into consideration the provisions of the new Company''s Act 2013
and since some directors of the Company have expressed their wish to
discontinue as Director in the Organization, it has also been decided
to reconstitute the Board of Directors of the Company after infusion of
funds as mentioned above.
3. Dividend
As the Company incurred loss during the year hence no dividend payment
was considered.
4. Finance
During the year, the Company continued to avail credit facilities by
way of overdrafts, cash credits, issuance of guarantees, including
deferred payment guarantees and indemnities, negotiation and
discounting of demand and/or usance bills and cheques and such other
facilities from State Bank of India, Commercial Branch, Patliputra,
Patna and other private bodies for the existing and Bihta unit.
6. Directors
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. Ankit Choudhary, Mr. Badri
Pd. Agarwal and Mr. Amar Kumar Agarwal are retiring by rotation and
being eligible offers themselves for re-appointment.
7. Directors'' Responsibility Statement
In compliance with section 217(2AA) of the Companies Act 1956, the
Directors confirm that
a) in preparation of the Annual Accounts, for the year ended 31st March
2014, all the applicable accounting standards prescribed by the ICAI
have been followed.
b) the Directors have adopted such accounting policies and have applied
them consistently and have made judgments and estimates in a reasonable
and prudent manner so as to give a true and fair view of the state of
affairs of the Company as at the end of the financial year and of the
profit/loss of the Company for the year.
c) the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
d) the Directors have prepared the annual accounts on a going concern
basis.
8. Auditors
M/s. ARSK & Associates, Chartered Accountants, Auditors of the Company
are retiring at the conclusion of the ensuing Annual General Meeting
and being eligible offer themselves for re-appointment. The Company has
received a certificate to the effect that their re-appointment if made
will be within the prescribed limit u/s.224 (1-B) of the Companies Act,
1956.
9. Depository System
As the members are aware, your Company''s shares are tradable
compulsorily in electronic form and your Company has connectivity with
both the depositories, i.e. National Securities Depository Limited
(NSDL) & Central Depository Services (India) Limited (CDSL). Members
are requested to avail the facility of dematerialisation of the
Company''s shares on either of the Depositories as aforesaid, if not
already done.
10. Public Deposit
The company has not invited /accepted any deposits from the public and
as such there are no outstanding deposits, in terms of the Companies
(Acceptance of Deposits) Rules, 1975.
11. Personnel
There is no employee in respect of whom particulars pursuant to Section
217(2A) of the Companies Act, 1956 are required to be given.
12. Conservation of Energy
The information relating to conservation of energy as required U/s.
217(1)(e) of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 is given in the Annexure-A to this Report. The Company has no
figure to disclose in respect of technology absorption and /or foreign
exchange earnings and outgo.
13. Social Welfare Activities
The Company organises mason''s meet from time to time at various
centres.
14. Corporate Governance
Separate Report on Corporate Governance is annexed and marked "Annexure
- B". The Auditors'' Certificate on compliance with the conditions of
Corporate Governance is annexed and marked "Annexure - C".
15. Acknowledgement
Your Directors wish to place their sincere appreciation to the
co-operation extended by the Bank, State Government, Electricity Board,
Customers, Suppliers and Shareholders and solicit their continued
support. The Directors also wish to place on record the dedicated
service rendered by the Management, Staffs and Workers
For and on behalf of the Board
Place: Patna Sanjiv Kumar Choudhary Ankit Choudhary
Date: 3rd September, Chairman Cum Director
2014 Managing Director
Mar 31, 2013
The Directors have pleasure in presenting the 20th Annual Report of the
Company, together with the Audited Accounts, for the year ended 31st
March, 2013.
1. Financial Results
(Rs. in Crores)
2012-2013 2011-2012
Sales & Other Income (net) 89.02 96.56
Profit/ (Loss) before Interest & Depreciation 05.00 9.48
Less: Interest & Other Financial Charges 3.69 9.56
Less: Depreciation 2.83 3.15
Profit/(Loss) before tax
and exceptional items (1.52) (3.23)
Add / (Less): Exceptional items
Profit/ (Loss) before tax and after
exceptional items (0.52) (3.23)
Less: Provision for Taxation
Less/ (Add): Deferred Tax (0.64) 1.07
Net Profit / (Loss) after Tax (0.88) (2.17)
Balance as per last year 4.25 6.42
Balance Carried Forward 3.37 4.25
2. Operations
In spite of global slowdown, the company has with its constant
endeavor; successfully manage to reduce its costs as compare to
previous year.
The Company implemented various latest technologies in the
manufacturing process to control the Cost of Production and also
planned to reduce the cost through increased automation and elimination
of intermediary process by implementation of the latest technology of
"Online Charging of Billets".
With commencement of above initiatives company making itself more
competitive and strong in the market and thereby steadily towards
earning profits in upcoming years.
3. Future Prospects
The Company has set a clear two pronged goal for its future business:
Cost Reduction & Diversification. Work towards each of these goals has
been initiated at full-swing and initial measures to this effect are
already in place.
Now, that the rehabilitation cum enhancement proposal of the Company
has been passed by the Bank, and the Company''s steel division has
restarted production with much pomp and splendor, the focus has been
shifted to reduction of cost vide optimum utilization of technology and
infrastructure of the Company. Accordingly, the system of ''Online
Charging of Billet'' has been isolated for immediate implementation by
the Company. The projected date for commencement of this technology,
which will result in added margins of 2-2.5% to the Company''s
bottom-line, is, 30th September, 2013. The Company plans on further
reducing costs via increased production through planned strategic
tie-ups and brand building of the product.
Furthermore, the Gangotri group of Companies has embarked on its
diversification intentions through its latest venture Gangotri Infocom
Pvt. Ltd. Gangotri Infocom has planned and already proceeded with tying
up with various Governmental departments for providing software based
solutions for their existing challenges. The first project of the
Company is already in process and is expected to be launched in 3rd
quarter of FY 13-14.
The Company also plans on expanding its existing Iron & Steel
manufacturing business by setting up additional furnace(s) and the
recent technology of Ladle Refining.
4. Management Discussion and Analysis
Business Segment-wise Performance
The company''s operation comprises of M.S. Bar and M.S. Billet that
falls under one segment. Hence, Segment wise operational performance is
not applicable.
Outlook
The world as well as national economy is passing through recession.
However, average GDP growth rate of Bihar has been magnificent i.e. 10
percent as above approx which is providing positive hope for the
Company. The Company is taking all necessary steps to reap the benefits
of the fast growth of the State.
Risks and Concerns
Due to global slowdown and fierce competition in the steel industry
there is pressure on maintain once of the profitability of the Company.
Bihar is one of the fastest growing state in the area of
Infrastructural development which is bound to increase the demand of
steel in the state. Taking in view the various infrastructural projects
taken up by Government of Bihar, the Company is prepared to fulfil all
the necessities of the growing demand of steel. Thus, increasing market
share and participating in the industrial development of the state.
Internal Control Systems and their Adequacy
There exists an internal audit system during the year under review,
which needs to be strengthened for being commensurate with the size and
nature of business.
Human Resource Development / Industrial Relations
The Company has been taking various initiatives for HR development, a
process that will continue in the coming years. Your Company organizes
Architects and Masons meets on a regular basis in various areas where
it markets its products. These meets are very well attended and have
resulted in better demand for its products apart from popularizing its
brand image.
The Company has also made arrangement with Shri Ravi Kishan, a very
popular movie and TV personality to act as its brand ambassador.
5. Dividend
As the Company incurred loss during the year hence no dividend payment
was considered.
6. Finance
During the year, the Company continued to avail credit facilities by
way of overdrafts, cash credits, issuance of guarantees, including
deferred payment guarantees and indemnities, negotiation and
discounting of demand and/or usance bills and cheques and such other
facilities from State Bank of India, Commercial Branch, Patliputra,
Patna and other private bodies for the existing and Bihta unit.
7. Directors
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. Debabrata Benerjee and Mr.
Narendra Jaiswal are retiring by rotation and being eligible offers
themselves for re-appointment.
8. Directors'' Responsibility Statement
In compliance with section 217(2AA) of the Companies Act 1956, the
Directors confirm that
a) in preparation of the Annual Accounts, for the year ended 31st March
2013, all the applicable accounting standards prescribed by the ICAI
have been followed.
b) the Directors have adopted such accounting policies and have applied
them consistently and have made judgments and estimates in a reasonable
and prudent manner so as to give a true and fair view of the state of
affairs of the Company as at the end of the financial year and of the
profit/loss of the Company for the year.
c) the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
d) the Directors have prepared the annual accounts on a going concern
basis.
9. Auditors
M/s. ARSK & Associates, Chartered Accountants, Auditors of the Company
are retiring at the conclusion of the ensuing Annual General Meeting
and being eligible offer themselves for re-appointment. The Company has
received a certificate to the effect that their re-appointment if made
will be within the prescribed limit u/s.224 (1- B) of the Companies
Act, 1956.
10. Depository System
As the members are aware, your Company''s shares are tradable
compulsorily in electronic form and your Company has connectivity with
both the depositories, i.e. National Securities Depository Limited
(NSDL) & Central Depository Services (India) Limited (CDSL). Members
are requested to avail the facility of dematerialisation of the
Company''s shares on either of the Depositories as aforesaid, if not
already done.
11. Public Deposit
The company has not invited /accepted any deposits from the public and
as such there are no outstanding deposits, in terms of the Companies
(Acceptance of Deposits) Rules, 1975.
12. Personnel
There is no employee in respect of whom particulars pursuant to Section
217(2 A) of the Companies Act, 1956 are required to be given.
13. Conservation of Energy
The information relating to conservation of energy as required U/s.
217(l)(e) of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 is given in the Annexure-A to this Report. The Company has no
figure to disclose in respect of technology absorption and /or foreign
exchange earnings and outgo.
14. Social Welfare Activities
The Company organises mason''s meet from time to time at various
centres.
15. Corporate Governance
Separate Report on Corporate Governance is annexed and marked "Annexure
- B". The Auditors'' Certificate on compliance with the conditions of
Corporate Governance is annexed and marked "Annexure  C".
16. Acknowledgement
Your Directors wish to place their sincere appreciation to the
co-operation extended by the Bank, State Government, Electricity Board,
Customers, Suppliers and Shareholders and solicit their continued
support. The Directors also wish to place on record the dedicated
service rendered by the Management, Staffs and Workers.
For and on behalf of the Board
Sanjiv Kumar Choudhary Ankit Choudhary
Chairman cum Managing Director Director
Place: Patna
Date: 4th September, 2013
Mar 31, 2012
The Directors have pleasure in presenting the 19th Annual Report of the
Company, together with the Audited Accounts, for the year ended 31st
March, 2012.
1. Financial Results (Rs. in Lacs)
2011-2012 2010-2011
Sales & Other Income (net) 9516.85 19105.72
Profit/(Loss) before Interest &
Depreciation 947.03 1344.18
Less : Interest & Other Financial
Charges 956.18 879.23
Less : Depreciation 314.72 341.84
Profit/(Loss) before tax and exceptional
items (323.87) 123.11
Add /(Less): Exceptional items - -
Profit/(Loss) before tax and after
exceptional items (323.87) 123.11
Less: Provision for Taxation - 25.16
Less/(Add): Deferred Tax (106.96) 51.05
Net Profit /(Loss) after Tax (216.91) 46.90
Balance as per last year 641.71 594.81
Balance Carried Forward 424.80 641.71
2. Operations
During the year under review the total revenue has decreased by 50%,
compared to previous year ended on 31.03.2011.
Due to slowdown in the steel market, production was temporarily
suspended during certain period in the financial year 2011- 2012.
3. Future Prospects
The State of Bihar is experiencing a continuous and resounding growth
phase. Huge emphasis is being laid upon growth of infrastructure in the
state and therefore being the leading TMT manufacturer, both in terms
of volume and quantity, we expect record-breaking demand for our
product. It is pertinent to mention that our product CISCO Thermex
Fe500 QST Bars is the most demanded TMT brand in the fastest growing
state in country.
Furthermore, the enhancement cum restructuring of loan of the Company
has been principally agreed to by our Banker and is currently under
process for final sanction. Added capital will lead to better
realization on finished goods as well as purchase of quality raw
material at reasonable rates, thus increasing the bottom-line of the
Company. Techno- Economic Viability (TEV) study to this effect was
conducted by D&B Consultant on instruction of the Banker, wherein it
was concluded that manufacturing unit of the Company represented a
substantial potential for growth and profitability. An enhancement in
the Banking arrangement is therefore expected to be received shortly
5. Dividend
As the Company incurred loss during the year hence no dividend payment
was considered.
6. Finance
During the year, the Company continued to avail credit facilities by
way of overdrafts, cash credits, issuance of guarantees. including
deferred payment guarantees and indemnities, negotiation and
discounting of demand and/or usance bills and cheques and such other
facilities from State Bank of India, Commercial Branch, Patliputra,
Patna and other private bodies for the existing and Bihta unit.
7. Directors
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. Aditya Dalmiya and Mr.
Ashok Agarwal are retiring by rotation and being eligible offers
themselves for re-appointment.
8. Directors' Responsibility Statement
In compliance with section 217(2AA) of the Companies Act 1956, the
Directors confirm that
a) in preparation of the Annual Accounts, for the year ended 31 st
March 2012, all the applicable accounting standards prescribed by the
ICAI have been followed.
b) the Directors have adopted such accounting policies and have applied
them consistently and have made judgments and estimates in a reasonable
and prudent manner so as to give a true and fair view of the state of
affairs of the Company as at the end of the financial year and of the
profit/loss of the Company for the year.
c) the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
d) the Directors have prepared the annual accounts on a going concern
basis.
9. Auditors
M/s. ARSK & Associates, Chartered Accountants, Auditors of the Company
are retiring at the conclusion of the ensuing Annual General Meeting
and being eligible offer themselves for re-appointment. The Company has
received a certificate to the effect that their re-appointment if made
will be within the prescribed limit u/s.224 (1-B) of the Companies Act,
1956.
10. Depository System
As the members are aware, your Company's shares are tradable
compulsorily in electronic form and your Company has connectivity with
both the depositories, i.e. National Securities Depository Limited
(NSDL) & Central Depository Services (India) Limited (CDSL). Members
are requested to avail the facility of dematerialisation of the
Company's shares on either of the Depositories as aforesaid, if not
already done.
11. Public Deposit
The company has not invited /accepted any deposits from the public and
as such there are no outstanding deposits, in terms of the Companies
(Acceptance of Deposits) Rules, 1975.
12. Personnel
There is no employee in respect of whom particulars pursuant to Section
217(2A) of the Companies Act, 1956 are required to be given.
13. Conservation of Energy
The information relating to conservation of energy as required U/s.
217(1)(e) of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 is given in the Annexure-A to this Report. The Company has no
figure to disclose in respect of technology absorption and /or foreign
exchange earnings and outgo.
14. Social Welfare Activities
The Company organises mason's meet from time to time at various
centres.
15. Corporate Governance
Separate Report on Corporate Governance is annexed and marked "Annexure
- B". The Auditors' Certificate on compliance with the conditions of
Corporate Governance is annexed and marked "Annexure - C".
16. Acknowledgement
Your Directors wish to place their sincere appreciation to the
co-operation extended by the Bank, State Government. Electricity
Board, Customers, Suppliers and Shareholders and solicit their
continued support. The Directors also wish to place on record the
dedicated service rendered by the Management, Staffs and Workers.
For and on behalf of the Board
Place : Patna Sanjiv Kumar Choudhary Aditya Dalmiya
Date :3rd September,
2012 Chairman-cum-Managing
Director Director
Mar 31, 2011
Dear Members,
The Directors have pleasure in presenting the 18th Annual Report of the
Company, together with the Audited Accounts, for the year ended 31st
March, 2011.
1. Financial Results (Rs. in Lacs)
2010-2011 2009-2010
Sales & Other Income (net) 19105.72 17085.98
Profit before Interest & Depreciation 1344.18 1534.92
Less: Interest & Other Financial Charges 879.23 825.63
Less: Depreciation 341.84 350.86
Profit before tax and exceptional items 123.11 358.43
Add /(Less): Exceptional items - 0.44
Profit before tax and after exceptional items 123.11 358.87
Less: Provision for Taxation (25.16) (60.99)
Less: Deferred Tax (51.05) (101.22)
Net Profit after Tax 46.90 196.66
Balance as per last year 594.81 398.15
Balance Carried Forward 641.71 594.81
2. Operations
During the year under review the total income have increased by 12%,
compared to previous year ended on 31.03.2010.
3. Future Prospects
Due to general slackness in the market more particularly for steel
resulted in poor demand of the products. The input cost particularly
financial cost became unbearable and as such the Company could not
perform well during the year. The Company is hopeful that the various
steps taken by the Government of Bihar for economic and infrastructural
development shall increase the demand of Company's product.
4. Management Discussion and Analysis
Business Segment-wise Performance
The company's operation comprises of M.S.Bar and M.S.Billet that falls
under one segment. Hence Segment wise operational performance is not
applicable.
Outlook
The industry is passing through negative cyclical swings on account of
excessive capacity and competition. The Company is taking necessary
steps to restructure its working and the organization hopes to commence
regular production soon.
Risks and Concerns
In view of the sharp expansion in capacity of similar products fierce
competition is likely to continue affecting the profitability of the
Company. However in view of ambitious programme taken by the Government
of Bihar, improvement of law and order situation and indication of
overall economic improvement, the demand is likely to improve in Bihar,
although the profitability is likely to remain tight due to increased
cost of raw materials and extreme competitiveness in the market.
Internal Control Systems and their Adequacy
There exists an internal audit system during the year under review,
which needs to be strengthened for being commensurate with the size and
nature of business.
Human Resource Development/ Industrial Relations
The Company has been taking various initiatives for HR development, a
process that will continue in the coming years. Your Company organizes
Architects and Masons meets on a regular basis in various areas where
it markets its products. These meets are very well attended and have
resulted in better demand for its products apart from popularizing its
brand image.
The Company has also made arrangement with Shri Ravi Kishan, a very
popular movie and TV personality to act as it's brand ambassador.
5. Dividend
In order to conserve resources of the Company, no dividend has been
declared for the financial year under review.
6. Finance
During the year, the Company continued to avail credit facilities by
way of overdrafts, cash credits, issuance of guarantees. including
deferred payment guarantees and indemnities, negotiation and
discounting of demand and/or usance bills and cheques and such other
facilities from State Bank of India, Commercial Branch, Patliputra,
Patna and other private bodies for the existing and Bihta unit.
7. Sub-division of equity shares
The Company has sub-divided it's equity share of face value of Rs. 10/-
each into 2 equity shares of face value of Rs. 51- each w.e.f.
01.11.2010.
8. Directors
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. Debabrata Banerjee and Mr.
Narendra Kumar Jaiswal are retiring by rotation and being eligible
offers themselves for re-appointment.
9. Directors' Responsibility Statement
In compliance with section 217(2AA) of the Companies Act 1956, the
Directors confirm that
a) in preparation of the Annual Accounts, for the year ended 31st March
2011, all the applicable accounting standards prescribed by the ICAI
have been followed.
b) the Directors have adopted such accounting policies and have applied
them consistently and have made judgments and estimates in a reasonable
and prudent manner so as to give a true and fair view of the state of
affairs of the Company as at the end of the financial year and of the
profit of the Company for the year.
c) the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
d) the Directors have prepared the annual accounts on a going concern
basis.
10. Auditors
M/s. ARSK & Associates, Chartered Accountants, Auditors of the Company
are retiring at the conclusion of the ensuing Annual General Meeting
and being eligible offer themselves for re-appointment. The Company has
received a certificate to the effect that their re-appointment if made
will be within the prescribed limit u/s.224 (1 -B) of the Companies
Act, 1956.
11. Depository System
As the members are aware, your Company's shares are tradable
compulsorily in electronic form and your Company has connectivity with
both the depositories, i.e. National Securities Depository Limited
(NSDL) & Central Depository Services (India) Limited (CDSL). Members
are requested to avail the facility of dematerialisation of the
Company's shares on either of the Depositories as aforesaid, if not
already done.
12. Public Deposit
The company has not invited /accepted any deposits from the public and
as such there are no outstanding deposits, in terms of the Companies
(Acceptance of Deposits) Rules, 1975.
13. Personnel
There is no employee in respect of whom particulars pursuant to Section
217(2A) of the Companies Act, 1956 are required to be given.
14. Conservation of Energy
The information relating to conservation of energy as required U/s.
217(1 )(e) of the Companies Act, 1956 read with the Companies
(Disclosure of particulars in the Report of Board of Directors) Rules,
1988 is given in the Annexure-A to this Report. The Company has no
figure to disclose in respect of technology absorption and /or foreign
exchange earning and outgo.
15. Social Welfare Activities
The Company organises mason's meet from time to time at various
centers.
16. Corporate Governance
Separate Report on Corporate Governance is annexed and marked "Annexure
- B". The Auditors' Certificate on compliance with the conditions of
Corporate Governance is annexed and marked "Annexure - C".
17. Acknowledgement
Your Directors wish to place their sincere appreciation to the
co-operation extended by the Bank, State Government. Electricity
Board, Customers, Suppliers and Shareholders and solicit their
continued support. The Directors also wish to place on record the
dedicated service rendered by the Management, Staffs and Workers.
For and on behalf of the Board
Sanjiv Kumar Choudhary Aditya Dalmiya
Kolkata, 3rd
September, 2011 Managing Director Director
Mar 31, 2010
The Directors have pleasure in presenting the 17th Annual Report of the
Company, together with the Audited Accounts, for the year ended 31 st
March, 2010.
1. Financial Results (Rs. in Lacs)
2009-2010 2008-2009
Sales & Other Income (net) 17085.98 4967.41
Profit before Interest &
Depreciation 1534.92 400.15
Less: Interest & Other
Financial Charges 825.63 139.58
Less: Depreciation 350.86 80.63
Profit before tax and
exceptional items 358.43 179.94
Add / (Less): Exceptional
items 0.44 2.16
Profit before tax and after
exceptional items 358.87 182.10
Less: Provision for Taxation (60.99) (21.49)
Less: Fringe Benefit Tax - (1.86)
Less: Deferred Tax (101.22) (54.40)
Net Profit after Tax 196.66 104.35
Balance as per last year 398.15 293.80
Balance Carried Forward 594.80 398.15
2. Operations
During the year under review the total income and profit after tax have
increased by 244% and 88% respectively, compared to previous year ended
on 31.03.2009. This was achieved due to operational efficiencies
despite several adverse factors, particularly substantial increase in
prices of inputs and enhanced competition.
3. Future Prospects
The product manufactured at the Bihta unit continues to be well
received in the market as far as quality is concerned. The Company is
hopeful that the various steps taken by the Government of Bihar for
economic and infrastructural development will increase the demand of
Companys product. The Company does not apprehend that it will face
much problem in marketing its product despite serious competition
although the profitability may get affected.
4. Management Discussion and Analysis
Business Segment - wise Performance
The companys operation comprises of M.S.Bar and M. S. Billet that
falls under one segment. Hence Segment wise operational performance is
not applicable.
Outlook
The steel industry is subject to cyclical swings on account of
excessive capacity expansion and unpredictable demand swings. This
sector was also affected due to global economic crisis and the market
downturn began to level out in the second half of the financial year as
business environment began to improve slowly. The Company has widened
its marketing network and the products are being sold in some
locations of Uttar Pradesh, in addition to the various areas of Bihar
being served earlier.
Risks and Concerns
In view of the sharp expansion in capacity of similar products fierce
competition is likely to continue affecting the profitability of the
Company. However in view of ambitious programme taken by the Government
of Bihar, improvement in law and order situation and indication of
overall economic improvement, the demand is likely to improve in Bihar,
although the profitability is likely to remain tight due to increased
cost of raw materials and extreme competitiveness in the market.
Internal Control Systems and their Adequacy
There exists an internal audit system during the year under review,
which needs to be strengthened for being commensurate with the size and
nature of business.
Human Resource Development/ Industrial Relations
The Company has been taking various initiatives for HR development, a
process that will continue in the coming years. Your Company organizes
Architects and Masons meets on a regular basis in various areas where
it markets its products. These meets are very well attended and have
resulted in better demand for its products apart from popularizing its
brand image.
The relations between the employees, workers and the management were
satisfactory and an atmosphere of understanding prevailed throughout
the year. The Company has also made arrangement with Shri Ravi Kishan,
a very popular movie and TV personality to act as its brand ambassador.
5. Dividend
In order to conserve resources of the Company, no dividend has been
declared for the financial year under review.
6. Finance
During the year, the Company continued to avail credit facilities by
way of overdrafts, cash credits, issuance of guarantees. including
deferred payment guarantees and indemnities, negotiation and
discounting of demand and/or usance bills and cheques and such other
facilities from State Bank of India, Commercial Branch, Patliputra,
Patna and other private bodies for the existing and Bihta unit.
7. Rights Issue
In April 2009, the Company raised Rs. 571.97 Lacs through rights issue
of 57,19,694 equity shares of Rs.10/- each for cash at a price of
Rs.20/- each including a premium of Rs.10/- per equity share to the
equity shareholders on rights basis in the ratio of 4 equity shares for
every 5 equity shares held on record date i.e. 20.03.2009. The issue
price for the equity share payable in two instalments: 50% on
application & 50% on call within 12 months.
Pursuant to this the Company made first & final call of Rs. 10/- per
share (comprising of Rs. 5/- per share towards equity capital and Rs.
5/- per share as premium) on each of 57,19,694 partly paid up equity
shares and fixed 26.02.2010 as the record date for the same. On
08.05.2010 the company converted the entire 57,19,694 partly paid up
equity shares into fully paid up equity shares of Rs. 10/- each after
the first & final call money of Rs. 571.97 Lacs was received.
The net proceeds have been utilized for repayment of unsecured loan and
for purchase of long term capital goods for the Bihta unit.
8. Directors
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. Sanjiv Kumar Choudhary and
Mr. Aditya Dalmiya are retiring by rotation and being eligible offers
themselves for re-appointment.
9. Directors Responsibility Statement
In compliance with section 217(2AA) of the Companies Act 1956, the
Directors confirm that
a) in preparation of the Annual Accounts, for the year ended 31st March
2010, all the applicable accounting standards prescribed by the ICAI
have been followed.
b) the Directors have adopted such accounting policies and have applied
them consistently and have made judgments and estimates in a reasonable
and prudent manner so as to give a true and fair view of the state of
affairs of the Company as at the end of the financial year and of the
profit of the Company for the year.
c) the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
d) the Directors have prepared the annual accounts on a going concern
basis.
10. Auditors
M/s. ARSK & Associates, Chartered Accountants, Auditors of the Company
are retiring at the conclusion of the ensuing Annual General Meeting
and being eligible offer themselves for re-appointment. The Company has
received a certificate to the effect that their re-appointment if made
will be within the prescribed limit u/s.224 (1-B) of the Companies Act,
1956.
11. Depository System
As the members are aware, your Companys shares are tradable
compulsorily in electronic form and your Company has connectivity with
both the depositories, i.e. National Securities Depository Limited
(NSDL) & Central Depository Services (India) Limited (CDSL). Members
are requested to avail the facility of dematerialisation of the
Companys shares on either of the Depositories as aforesaid, if not
already done.
12. Public Deposit
The company has not invited /accepted any deposits from the public and
as such there are no outstanding deposits, in terms of the Companies
(Acceptance of Deposits) Rules, 1975.
13. Personnel
There is no employee in respect of whom particulars pursuant to Section
217(2A) of the Companies Act, 1956 are required to be given.
14. Conservation of Energy
The information relating to conservation of energy as required U/s.
217(1)(e) of the Companies Act, 1956 read with the Companies
(Disclosure of particulars in the Report of Board of Directors) Rules,
1988 is given in the Annexure-A to this Report. The Company has no
figure to disclose in respect of technology absorption and /or foreign
exchange earning and outgo.
15. Social Welfare Activities
The Company organises masons meet from time to time at various centers
and provides Personal Accident Cover to the masons attending the
meeting under arrangement with Oriental Insurance Company and The New
India Assurance Co. Ltd.
16. Corporate Governance
Separate Report on Corporate Governance is annexed and marked "Annexure
- B". The Auditors Certificate on compliance with the conditions of
Corporate Governance is annexed and marked "Annexure - C".
17. Acknowledgement
Your Directors wish to place their sincere appreciation to the
co-operation extended by the Bank, State Government. Electricity
Board, Customers, Suppliers and Shareholders and solicit their
continued support. The Directors also wish to place on record the
dedicated service rendered by the Management, Staffs and Workers.
For and on behalf of the Board
Sanjiv Kumar Choudhary Aditya Dalmiya
Kolkata, 1 st
September, 2010 Managing Director Director