Mar 31, 2023
The Directors have pleasure in presenting the 52nd Annual Report together with the Audited Statement of Accounts of Rathi Steel & Power Limited for the year ended 31st March, 2023.
CURRENT YEAR (RS. IN LACS) |
PREVIOUS YEAR (RS. IN LACS) |
|
Total Revenue |
72756.98 |
54577.56 |
EBITDA (before Exceptional / Extraordinary Items) |
3268.17 |
3120.08 |
Interest / Finance Charges |
1210.31 |
1311.15 |
Depreciation |
832.51 |
1346.44 |
Exceptional / Extraordinary Items |
7521.82 |
4111.35 |
Profit Before Tax(PBT) |
8747.17 |
(3648.86) |
Tax adjusted for earlier year(s) |
24.89 |
0.00 |
Profit after Tax (PAT) |
8722.28 |
(3648.86) |
Dividend |
NIL |
NIL |
During the year under review, the Company has achieved revenue from operation of Rs. 72,654.65 Lacs as against previous year of Rs. 54,577.56 Lacs. Company has achieved EBIDTA of Rs. 3,268.17 Lacs as against previous year of Rs. 3,120.08 Lacs. Company expects to do better if there is an improvement in overall industrial scenario.
Company is ploughing back its profit for smooth operations of the Company, so no dividend has been recommended.
4. ECONOMIC SCENARIO AND OUTLOOK GLOBAL SCENARIO
The World Steel Association (worldsteel) has released its Short Range Outlook (SRO) steel demand forecast for 2023 and 2024. Worldsteel forecasts that this year, demand will see a 2.3% rebound to reach 1,822.3 Mt. Steel demand is forecast to grow by 1.7% in 2024 to reach 1,854.0 Mt. Manufacturing is expected to lead the recovery, but high interest rates will continue to weigh on steel demand. Next year, growth is expected to accelerate in most regions, but deceleration is expected in China.
Global steel demand seen growing 1.7% in 2024 - association
Global steel demand is expected to grow by 1.7% in 2024 following a forecast 2.3% rebound in consumption this year mainly due to a recovery in manufacturing activity, an executive from the World Steel Association (WSA) said on Tuesday.
In the long run, the Association of Southeast Asian Nations (ASEAN) is expected to see a doubling in steel demand by 2035 from 80 million tonnes currently, Frank Zhong, the associationâs deputy director general told an industry conference.
Source: https://www.reuters.com/article/zlobal-steel-idINLlN37K03D
Global steel demand seen rising 2.3% in 2023,1.7% in 2024
India remains a bright spot in the sector as govt spending on infrastructure is strong, says World Steel Association
Demand for steel worldwide will witness a 2.3 per cent growth in 2023 and 1.7 per cent in 2024, the World Steel Association (worldsteel), a body with membership of every steel producing country, has said.
In its short range outlook released earlier this week, worldsteel said the demand will increase to 1,822 million tonnes (mt) in 2023 and 1,854 mt in 2024. The association pegged 2022 crude steel at 1,831.5 mt, down 4.3 per cent compared with 2021.
âManufacturing is expected to lead the recovery, but high interest rates will continue to weigh on steel demand. Next year, growth is expected to accelerate in most regions, but deceleration is expected in China,â worldsteel said.
Steel industry outlook: Growth prospects of the Indian steel sector in 2023
Let us first look at whatâs driving the demand for steel metal in India. According to predictions by the World Steel Association, the steel industry growth rate is estimated to be around 6.7% in 2023. After a slack period following the pandemic, the sector was able to revive in 2021-22 with global demand for steel rising.
The growth prospects and steel industry outlook in India is favourable. Recent changes in export taxes and import duties on steel, complemented by the rising demand for affordable housing, infrastructure development and construction projects, has led to a pan-India need for steel metal. Moreover, the governmentâs initiative to make India self-sufficient has made room for sustainable urban development, construction of proposed logistics parks and industrial corridors - all adding to the meteoric demand for finished steel and steel as a raw material.
The iron and steel industry naturally will play a dominant role in bringing progress. In the next section, let us take a look at what are the growth prospects of the steel sector, the present outlook and future prospects of steel in India, and the multiple factors supporting and contributing to it.
Budget 2023-24: Announcements for the steel sector
Every year, all eyes are on the Budget announcement for news on monetary incentives, rebates, funds allocation and more for the development of different sectors and businesses.
In Budget 2023-34, though there were no specific funds for driving growth of the steel sector, there are several opportunities present in other industries that would directly boost the steel industry outlook.
⢠Railways: The governmentâs initiative to redevelop 50 existing railway stations and the plan to provide a capital of ?2.4 lakh crore to Railways is likely to scale the need for steel.
⢠Logistics: An investment of ?75,000 crore is planned for 100 critical transportation infrastructure projects that will connect ports, coal, steel, fertiliser, and food grain sectors across the first- and last-mile delivery network. This is expected to improve connectivity and transportation services across major points, in turn leading to a rise in demand for steel.
⢠City development: Urban planning development projects will be undertaken to transform cities into sustainable cities. With the proposed 410.000 crore annual fund, the goal is to ramp up infrastructure development, especially in Tier II and Tier III cities. This is likely to witness a growth in steel demand, especially for steel girders in infrastructure and TMT steel bars in construction among others.
(Source: Outlook, March 2023)
Steel pricing in India
An overview of steel pricing will show how steel metal has always had its demand in India. However, in the last few months, especially following the global economic crisis caused by the pandemic, the price of steel in India has been dynamic. In February 2023, there was a 5% increase in steel prices in India.
Multiple factors, including rise of raw material prices (especially iron ore and coking coal) and rise in infrastructural and engineering projects, has impacted daily steel price. It is however predicted that steel prices will be above the pre-pandemic rates, i.e., tOO.OOO per tonne by March 2023.
5. REVIVAL/SETTLEMENT/RESTRUCTURING WITH LENDERS
In the FY 20-21 Company has entered into settlement agreement with lenders for majority of its debt. Thereafter in the FY 2122 debt level was further brought down through sale of Orissa unit. In the interest of all its stakeholders and for long term revival of the Company, efforts are being made to further bring down the debt to sustainable level. With continuous efforts during the FY 22-23,Company has entered into settlement/successfully implemented the settlement with banks .
Company is making all efforts to further bring down the debt in the interest of all stakeholders.
6. MATERIAL CHANGES AND FINANCIAL COMMITMENTS.
Apart from the information provided/disclosures made elsewhere in the Directorsâ Report including Annexures thereof, there are no material changes and commitments affecting the financial position of the Company, which occurred between the end of the financial year of the Company i.e. 31st March, 2023 to which this financial statement relates and till date of this Report.
7. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Full particulars of the loans given, guarantees extended or securities provided and the investments made by the Company, if any, in various bodies corporate in terms of the provisions of Section 186 of the Companies Act, 2013 and the rules framed thereunder have been adequately described in the notes to Financial Statements. The same are in consonance the provisions of the aforesaid section.
8. CORPORATE SOCIAL RESPONSIBILITY
Even though the provisions of Companies Act, 2013 regarding Corporate Social Responsibility are not attracted to the company yet the Company has been, over the years, pursuing as part of its corporate philosophy, an unwritten CSR policy voluntarily which goes much beyond mere philanthropic gestures and integrates interest, welfare and aspirations of the community with those of the Company itself in an environment of partnership for inclusive development
Risk management policy of the Company promotes a proactive approach in reporting, evaluating and mitigating risks associated with the business. Mechanisms for identification and prioritization of risks include business risk environment scanning and focused discussions in the Risk Management Group (at Senior Management Level).
10. INTERNAL FINANCIAL CONTROLS
Internal financial control systems of the Company are commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable accounting standards and relevant statutes, safeguarding assets from unauthorised use, executing transactions with proper authorisation and ensuring compliance of corporate policies. The Company has a well-defined delegation of power with authority limits for approving revenue as well as expenditure, both capital and revenue. The Company uses an established ERP system to record day to day transactions for accounting and financial reporting.
The Companyâs internal audit function monitors and assesses the adequacy and effectiveness of the Internal Financial Controls. The Audit Committee deliberated with the members of the management, considered the systems as laid down and met the internal auditors and statutory auditors to ascertain, inter alia, their views on the internal financial control systems. The Audit Committee satisfied itself of the adequacy and effectiveness of the internal financial control system as laid down and kept the Board of Directors informed. Details of internal control system are given in the Management Discussion and Analysis Report, which forms part of the Report.
11. VIGIL MECHANISM / WHISTLE BLOWER POLICY
The Company has adopted a Whistleblower Policy and Vigil Mechanism to provide a formal mechanism to the Directors, employees and its stakeholders to report their concerns about unethical behavior, actual or suspected fraud or violation of the Companyâs Code of Conduct or Ethics Policy. Protected disclosures can be made by a whistleblower through several channels. The policy provides for adequate safeguards against victimisation of employees who avail of the mechanism and also provides for direct access to the Chairman of the Audit Committee. It is affirmed that no personnel of the Company have been denied access to the Audit Committee.
12. RELATED PARTY TRANSACTIONS
There were no contracts or arrangements entered into by the company in accordance with provisions of section 188 of the Companies Act, 2013. However, there were no material related party transactions in pursuance of regulation 23 of SEBI (LODR) regulations, 2015.
There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large.
The policy on Related Party Transactions as approved by the Board is uploaded on the Companyâs website. None of the Directors has any pecuniary relationships or transactions vis-a-vis the Company.
13. DIRECTORS AND KEY MANAGERIAL PERSONNEL DirectorsAppointment/Re-appointment
There was no new appointment during the Financial year 2022-23. However, Ms. Sonika Sharma (DIN 10192265) and Ms. Surbhi Pareek (DIN 10231959) joined the Board as Non-Executive Independent Directors w.e.f. 10.07.2023.
Moreover, Mr. Abhishek Verma whose term of 5 years expires as Independent Director has been re-designated as NonExecutive Director and Chairman of the Company
The Independent Directors hold office for a fixed term of five years and are not liable to retire by rotation in terms of Section 149( 13) the Act. In accordance with Section 149(7) of the Act, each Independent Director has given a written declaration to the Company confirming that he/she meets the criteria of independence as mentioned under Section 149(6) of the Act and the Listing Regulations. Details of Familiarisation programme for Independent Director is provided separately in the Corporate Governance Report.
Key Managerial Personnel (KMP)
Mr. P. N. Vershney, Managing Director, Mr Rakesh Kumar (CFO) and Mrs. Shobhita Singh, Company Secretary are the other KMP as per the definition under Section 2(51) and Section 203 of the Act.
BOARD EVALUATION
Pursuant to the provisions of the Act and the corporate governance requirements prescribed under the Listing Regulations, the Board has earned out the annual performance evaluation of its own performance, and that of its Committees and Individual Directors.
The performance of the Board and individual Directors was evaluated by the Board after seeking inputs from all the directors. The criteria for performance evaluation of the Board included aspects such as Board composition and structure, effectiveness of Board processes, contribution in the long term strategic planning, etc. The performance of the committees was evaluated by the Board after seeking inputs from the committee members. The criteria for performance evaluation of the committees included aspects such as composition of committees, effectiveness of committee meetings, etc.
The Board and the NRC reviewed the performance of the individual Directors on the basis of the criteria such as the contribution of the individual director to the Board and committee meetings like preparedness on the issues to be discussed, meaningful and constructive contribution and inputs in meetings, etc. In addition, the Chairman was also evaluated on the key aspects of his role.
In a separate meeting of Independent Directors, performance of non-independent directors, performance of the board as a whole and performance of the Chairman was evaluated, taking into account the views of executive directors and non-executive directors. The same was discussed in the Board Meeting that followed the meeting of the Independent Directors, at which the feedback received from the Directors on the performance of the Board, its Committees and Individual directors were also discussed.
14. DIRECTORSâ RESPONSIBILITY STATEMENT
Based on the framework of internal financial controls and compliance systems established and maintained by the Company, work performed by the internal, statutory, cost and secretarial auditors and external consultant!''s). including audit of internal financial controls over financial reporting by the statutory auditors and the reviews performed by Management and the relevant Board Committees, including the Audit Committee, the Board is of the opinion that the Companyâs internal financial controls were adequate and effective during the FY 2022-23.
Accordingly, pursuant to Section 134(5) of the Act, the Board of Directors, to the best of their knowledge and ability, confirm that:
(a) in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;
(b) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period;
(c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(d) they have prepared the annual accounts on a going concern basis;
(e) they have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and
(f) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
15. MANAGEMENT DISCUSSION & ANALYSIS AND CORPORATE GOVERNANCE REPORTS
Pursuant to Regulation 34 of SEBI (LODR) Regulation, 2015, the Management Discussion and Analysis and the Corporate Governance Report are presented in a separate section forming part of the Annual Report.
16. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
The particulars relating to conservation of energy, technology absorption, foreign exchange earnings and outgo, as required to be disclosed pursuant to the provisions of Section 134 of the Act read with the Companies (Accounts) Rules, 2014, are provided in Annexure -1 to this Report.
16. AUDITORS
I. Statutory Auditors and their report:
M/s M. Lai & Company, Chartered Accountants, were appointed as Statutory Auditors of the Company for a period of 5 years to hold office i.e., till the conclusion of Annual General Meeting to be held in year 2027. As required by the provisions of the Companies Act, 2013 their appointment should be ratified by members each year at the AGM. Accordingly, requisite forms part of the notice convening the AGM.
Further, the report of the Statutory Auditors along with notes to Schedules is enclosed to this Report. The observations made in the Auditorsâ Report are self-explanatory and therefore do not call for any further comments.
II. Cost Auditors and Cost Audit report:
In view of the provisions of Section 148 and all other applicable provisions of the Act read with the Companies (Audit and Auditors) Rules, 2014, R. M. Bansal & Co., Cost Accountants have been appointed as Cost Auditors to conduct the audit of cost records of your Company for the FY 2023-24. The remuneration proposed to be paid to them requires ratification of the shareholders of the Company. In view of this, your ratification for payment of remuneration to Cost Auditors is being sought at the ensuing AGM. The Company is properly maintaining the records for the purpose of Cost Audit as per the provisions of the Companies Act, 2013.
III. Secretarial Audit
In terms of Section 204 of the Act and Rules made there under, M/s. Sameer Bhatnagar & Company, Practicing Company Secretaries have been appointed as Secretanal Auditors of the Company. The report of the Secretarial Auditors is enclosed as Annexure-2 to this Report. The report is self-explanatory and do not call for any further comments.
IV. Internal Auditors
There was no change in the Internal Auditor of the Company during the Financial Year ending March 31, 2023. Internal Auditors has performed their duties and their report is reviewed by the audit committee from time to time. Company has appointed M/s Y.P. Arya and Company, Chartered Accountants (FKN 008298 N) as Internal Auditors for the Financial Year 2023-24.
17. DISCLOSURES
i. Details of Board meetings
During the year, 10 (Ten) Board meetings were held and the details of which are provided in the Corporate Governance Report.
ii. Composition of Audit Committee:
The Audit Committee comprises 3 (three) Members out of which two are Independent Directors. During the year, 4 (Four) Audit Committee meetings were held and the details of which are provided in the Corporate Governance Report.
Listing Regulations
The Securities and Exchange Board of India (SEBI) has, by its notification dated 2nd September, 2015, issued the (Listing Obligations and Disclosure Requirements) Regulations, 2015 with an aim to consolidate and streamline the provisions of the Listing Regulations for different segments of capital markets to ensure better enforceability. The Regulations became effective from 1st December, 2015 and have replaced the Listing Agreements. Accordingly, all listed entities were required to enter into the Listing Agreement within 6 (six) months from the effective date. The Company has entered into Listing Agreement with BSE Limited. Pursuant to the Listing Regulations, the following policies were approved and adopted by the Board:
(l) Policy on determination of Materiality for disclosures of events or information.
(ii) Policy for preservation of documents, to classify documents in two categories, viz. documents which need to be preserved permanently and documents which need to be preserved for not less than 8 years after completion of the relevant transactions.
(m) Archival Policy, to determine the period, for which information is required to be disclosed on the Companyâs website. Policy on Materiality and Archival Policy are also available on the website of the Company under âInvestor Relationsâ section.
Particulars of Employees
The information required pursuant to Section 197 read with Rule, 5 of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company is as follows:
The company has One Executive Director and no sitting fees have been paid to any director during the year. Details enclosed as Annexure-4 to this Report
18. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
A detailed note on ongoing litigations/court orders has been provided in the notes to account.
19. EXTRACT OF ANNUAL RETURN
Pursuant to Section 92(3) of the Act and Rule 12(1) of the Companies (Management and Administration) Rules, 2014, extract of annual return in Form MGT 9 is enclosed as Annexure -3 to this Report.
20. GREEN INITIATIVE
The Company has implemented the âGreen Initiativeâ to enable electronic delivery of notice/documents/annual reports to shareholders. The Annual Report for the FY 2022-23 and Notice of the 52nd Annual General Meeting are being sent to all members electronically, whose e-mail addresses are registered with the Company/Depository Participant(s).
The e-voting facility is being provided to the members to enable them to cast their votes electronically on all resolutions set forth in the notice, pursuant to Section 108 of the Companies Act, 2013 read with Rule 20 of the Companies (Management and Administration) Rules, 2014. The instructions for e-voting are provided in the notice of this 52âd AGM.
21. ACKNOWLEDGEMENTS
The Board wishes to place on record its appreciation of the significant contributions made by the employees of the Company during the year under review. The Company has achieved impressive growth through competence, hard work, solidarity, cooperation and support of employees at all levels. Your Directors thank the customers, dealers, distributors, franchisee partners, vendors and other business associates for their continued support in the Companyâs growth.
Your Directors also wish to thank the Government of India, the State Governments and other regulatory authorities, banks and members for their cooperation and support extended to the Company.
22. CAUTIONARY STATEMENT
The statements contained in the Boardâs Report and Management Discussion and Analysis contain certain statements relating to the future and therefore are forward looking within the meaning of applicable securities, laws and regulations.
Various factors such as economic conditions, changes in government regulations, tax regime, other statues, market forces and other associated and incidental factors may however lead to variation in actual results.
Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting the 44th Annual Report
together with the Audited Statement of Accounts of your company for the
year ended 31st March, 2015.
1. FINANCIAL RESULTS
Particulars Year ended Year ended
31st March 31st March
2015 2014
Sales 66882.35 46553.09
EBITDA 696.68 (4377.42)
Interest 5040.18 4927.90
Depreciation 3186.63 891.68
Profit after Tax (PAT) (8239.23) (7433.67)
Dividend NIL NIL
2. OPERATIONAL REVIEW:
During the year under review, the Company has achieved sales turnover
of Rs. 66882.35 lacs against previous year sales of Rs. 46553.09 Lacs.
The Company has incurred loss of Rs. 8239.23 lacs against previous year
loss of Rs.7433.67 lacs. Company expects to do better if there is an
improvement in overall industrial scenario.
3. REFERENCE UNDER SECTION 15 AND OTHER APPLICABLE PROVISIONS OF
CHAPTER III OF THE SICK INDUSTRIAL COMPANIES (SPECIAL PROVISIONS) ACT,
1985.
Due to erosion of net worth of the company by more than 50% in the
previous accounting year i.e. 12 months period ended on March 31,2014,
as per the requirement of Section 23 of the Sick Industrial Companies
(Special Provisions) Act, 1985 (SICA), a reference had been made with
the Hon'ble BIFR by within the prescribed time.
Since, during the current 12 months period ended 31 March, 2015, the
Company has suffered a net loss of Rs. 8239.23 lacs which has resulted
in full erosion of net worth of the company, the company became a "Sick
Industrial Company" under Section 3(1)(o) of the aforesaid Act.
Consequently, necessary reference/registration is required to be
obtained with the Hon'ble BIFR. The necessary recommendation of the
Board for approval from the members of the company has been received to
comply with the provisions of the SICA.
4. DIVIDEND
No dividend has been recommended.
5. CAPITAL
During the year under review, Company has increased authorized capital
by creating 25000000 Redeemable Preference Shares of Rs. 10/- each,
resulting into Authorised Capital of Rs.90,00,00,000/- divided 32000000
Equity Share of Rs.10/- each amounting to Rs.32,00,00,000/- and 58000000
redeemable shares of Rs.10/- each amounting to Rs.58,00,00,000/-.
During the year company has issued 12566748 Redeemable Preference Share
of Rs.10/- each at a Premium of Rs.20/- per Share amounting to
Rs.37,70,02,440/-.
6. DEMERGER PLAN
Orissa unit is an integrated steel manufacturing unit and with the
complexities in the land acquisition, particularly of large chunks of
land it will be very difficult to acquire land for setting up a new
project. It has its own locational advantage in the sense near to raw
materials sources, sufficient land and necessary approvals for further
expansion.
In order to unlock the values of both the units and outside infusion of
funds/sale/PE investment, hiving off/demerger of both the units is
absolutely necessary.
Company plans to hive off the Orissa unit into a separate Company.
Deliberation are on and decision will be taken after considering all
the aspects.
7. Corporate Debt Restructuring
The debts of the Company were restructured under Corporate Debt
Restructuring (CDR) mechanism in the year 2013-14. The Scheme has given
relief to the Company and provided with the breathing space to further
improve operational levels and improve the cash position. Due to delay
in implementation of approved restructuring scheme Company could not
start operations at Orissa unit nor was the implementation of setting
up of rolling mill at Orissa and even its Ghaziabad unit is operating
at lower than desired capacity utilization.
Keeping in mind the current business & economic outlook environment,
the Company is in fresh discussions/negotiation with the lenders for
its business restructuring plans and is in the process of finalizing
fresh proposal for re-working of its debt obligations.
8. ECONOMIC SCENARIO AND OUTLOOK
The expected population growth, emerging new applications for steel and
more sophisticated steel applications, the global steel market has a
potential to grow by between 700 and 1000 million tonnes in the next 50
years. That is equivalent to a market that is 60% larger than that of
today. We believe that between now and 2030, global use of steel will
increase by as much as 400 million tons annually.
The world market for steel will reach $1.3 trillion in 2015, with
production levels to reach 1,694.73 million tonnes whilst consumption
will reach 1,545.50 million tonnes. The market has been declining over
the past few years as a result of the large oversupply of steel that
pressured prices downwards. The global recession that hit the
commodities sector hard also contributed to the shrinking growth.
The steel market has been dominated by China, accounting for half of the
global market. It is the largest and fastest growing producer and
consumer of steel and it will retain its leading position. India,
Taiwan, Iran, Japan, Mexico and South Korea are other countries
exhibiting strong growth in terms of steel production and consumption.
Global steeldemand over the next decade will mainly depend on the
emerging economies. However, economic conditions for the global steel
industry remain challenging.
The main factors that led to a previously significant increase in
demand for steel are new infrastructure developments and the growing
needs of the increasing middle class in the developing countries. The
construction, automobile, and white goods industries will attract a
high demand for steel over the next decade. The construction sector
will be the key consumer of steel.
Financial year 2014-15 saw India emerge as a bright spark even as
advanced and emerging economics grappled with uncertainty and slower
growth. Cyclical macro parameters like inflation, current account
deficit have improved during the year due to domestic as well as
external factors. However, domestic steel producers witnessed subdued
sales as increased imports from China and Russia resulted in sharp cut
to steel prices in India over the past six months.
The Indian economy is in the midest of significant structural change
and is expected to embark on a sustained economic growth cycle.
According to World Bank,India is set to be the world's fastest growing
major economy in the financial year 2015-16 at 7.5% and gradually move
up to 8% in the next two financial years. However, this economic growth
will depend on steady implementation of reforms aimed to improve
productivity and competitiveness. Government initiatives like "Make in
India" will stimulate manufacturing growth while its focus on
infrastructure should revive the investment cycle. This should help
India grow while being fiscally prudent.
Indian steel demand is expected to reflect improving macro- economic
environment. Steel end use sectors are expected to perform better
compared to previous financial year. Infrastructure projects like
dedicated freight corridor etc. are gaining momentum and the steady
decline in stalled projects coupled with hike in import duty should
stimulate steel demand. However, steel prices are expected to remain
under pressure from Chinese exports and increased domestic
competitiveness.
9. CORPORATE SOCIAL RESPONSIBILITY
Even though the provisions of Companies Act, 2013 regarding Corporate
Social Responsibility are not attracted to the company yet the Company
has been, over the years, pursuing as part of its corporate philosophy,
an unwritten CSR policy voluntarily which goes much beyond mere
philanthropic gestures and integrates interest, welfare and aspirations
of the community with those of the Company itself in an environment of
partnership for inclusive development.
10. BUSINESS RISK MANAGEMENT
Although the company has long been following the principle of risk
minimization as is the norm in every industry, it has now become a
compulsion.
Therefore, in accordance with clause 49 of the listing agreement the
Board members were informed about risk assessment and minimization
procedures after which the Board formally adopted steps for framing,
implementing and monitoring the risk management plan for the company.
The main objective of this policy is to ensure sustainable business
growth with stability and to promote a pro-active approach in
reporting, evaluating and resolving risks associated with the business.
In order to achieve the key objective, the policy establishes a
structured and disciplined approach to Risk Management, in order to
guide decisions on risk related issues.
In today's challenging and competitive environment, strategies for
mitigating inherent risks in accomplishing the growth plans of the
Company are imperative. The common risks inter alia are: Regulations,
competition, Business risk, Technology obsolescence, Investments,
retention of talent and expansion of facilities. Business risk,
inter-alia, further includes financial risk, political risk, fidelity
risk, legal risk.
As a matter of policy, these risks are assessed and steps as
appropriate are taken to mitigate the same
11. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company has adequate system of internal control to safeguard and
protect from loss, unauthorized use or disposition of its assets. All
the transactions are properly authorized, recorded and reported to the
Management. The Company is following all the applicable Accounting
Standards for properly maintaining the books of account and reporting
financial statements. The internal auditor of the company checks and
verifies the internal control and monitors them in accordance with
policy adopted by the company.
12. VIGIL MECHANISM / WHISTLE BLOWER POLICY
In order to ensure that the activities of the Company and its employees
are conducted in a fair and transparent manner by adoption of highest
standards of professionalism, honesty, integrity and ethical behaviour
the company has adopted a vigil mechanism policy. This policy is
explained in corporate governance report and also posted on the website
of company www.rathisteelandpower.com.
13. DIRECTORS & COMMITTEES
At the 43rd Annual General Meeting of the company held on 30th
September, 2014 the company appointed the existing independent
directors Shri S. K. Daga (DIN: 00208058) and Shri Dwarka Das Lakhotia
(DIN: 00012380)) as independent directors under the companies Act, 2013
for 5 consecutive years for a term upto the conclusion of the 49th
Annual General Meeting.
All independent directors have given declaration that they meet the
criteria of independence as laid down under section 149(6) of the
Companies Act, 2013 and clause 49 of listing agreement.
In accordance with the provisions of Companies Act, 2013 Shri Pradeep
Kumar Rathi (DIN-00012596), Director retires by rotation and being
eligible offers himself for re- appointment.
Ms Akanksha Garg was appointed as an Additional Director w.e.f. May 30,
2015 in accordance with the provisions of Section 161 of the Companies
Act, 2013 and Article 99 of Article of Association of the Company.
Pursuant to Section 161 of the Companies Act, 2013 the above director
holds
office up to the date of the ensuing Annual General Meeting. In this
regard the Company has received request in writing from a member of the
company proposing Ms Akanksha Garg candidature for appointment as
Director of the Company.
13.1. BOARD EVALUATION
Pursuant to the provisions of companies Act, 2013 and clause 49 of the
Listing Agreement, the Board has carried out annual performance
evaluation of its own performance, the directors individually as well
the evaluation of the working of its Audit, Nomination & Remuneration
and Stakeholder committee. The manner in which the evaluation has been
carried out has been explained in Corporate Governance Report.
13.2. REMUNERATION POLICY
The Board has, on the recommendation of the Nomination & Remuneration
committee framed a policy for selection and appointment of Directors,
Senior Management and their remuneration. The Remuneration Policy is
stated in the Corporate Governance Report.
13.3. MEETINGS
During the year twelve Board Meetings and one independent directors'
meeting was held. The Details of which are given in Corporate
Governance Report. The provisions of Companies Act, 2013 and listing
agreement were adhered to while considering the time gap between two
meetings.
13.4. AUDIT COMMITTEE
The company is having an audit committee comprising of the following
directors:
Name Status Category
Shri Shree Kumar Chairman Non Executive &
Daga Independent Director
Shri Dwarka Das Member Non Executive &
Lakhotia Independent Director
Shri Prem Narain Member Executive Director
Varshney
13.5 NOMINATION AND REMUNERATION COMMITTEE
The company is having a Nomination and Remuneration Committee
comprising of the following directors:
Name Status Category
Shri Shree Kumar Chairman Non Executive &
Daga Independent Director
Shri Dwarka Das Member Non Executive &
Lakhotia Independent Director
Ms Akanksha Member Non-Executive Director
Garg
14. DIRECTORS' RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the
information and explanations obtained by them, your Directors make the
following statements in terms of Section 134(3)(c) of the Companies
Act, 2013:
a) that in preparation of the annual financial statements for the year
ended March 31, 2015, the applicable accounting standards have been
followed along with proper explanation relating to material departures,
if any;
b) that such accounting policies as mentioned in Notes to the Financial
Statements have been selected and applied consistently and judgement
and estimates have been made that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company as at
March 31, 2015 and of the loss of the Company for the year ended on
that date;
c) that proper and sufficient care has been taken 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) that the annual financial statements have been prepared on a going
concern basis;
e) that proper internal financial controls were in place and that the
financial controls were adequate and were operating effectively.
f) that systems to ensure compliance with the provisions of all
applicable laws were in place and were adequate and operating
effectively.
15. RELATED PARTY TRANSACTIONS
None of the transactions with any of related parties were in conflict
with the Company's interest. Suitable disclosure as required by the
Accounting Standards (AS18) has been made in the notes to the Financial
Statements. All related party transactions are negotiated at an
arms-length basis and are in the ordinary course of business.
Therefore, the Provisions of Section 188(1) of the Companies Act, 2013
are not applicable. The Related Party Transactions Policy as approved
by the Board is uploaded on the Company's website. The details of the
transaction with the Related party are provided in the accompanying
financial statements.
16. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
A detailed note on ongoing litigations/court orders has been provided
in the Notes to account.
17. AUDITORS
17.1. STATUTORY AUDITORS
M/s M. Lal & Co, Chartered Accountants, who are the statutory auditors
of the Company, hold office until the conclusion of the ensuing AGM and
are eligible for re- appointment. Members of the Company at the AGM
held on 30 September, 2014 had approved the appointment of M/s M. Lal &
Co as the Statutory Auditors for a period of three financial years
I.e., up to 31 March, 2017. As required by the provisions of the
Companies Act, 2013, their appointment should be ratified by members
each year at the AGM. Accordingly, requisite resolution forms part of
the notice convening the AGM.
The Auditors' Report on Financial Statements of the Company for the
Financial Year 2014-15 does not contain any qualification.
The observations of Statutory Auditors' and Notes to the Financial
Statements are self-explanatory
17.2. COST AUDITORS
As per Section 148 of the Companies Act, 2013, the Company is required
to have the audit of its cost records conducted by a Cost Accountant in
practice. In this connection, the Board of Directors of the Company has
on the recommendation of the Audit Committee, approved the appointment
of R. M. Bansal & Co., Cost Accountants as the cost auditors of the
Company for the year ending 31 March, 2016, at a remuneration of Rs.
50,000/- plus out of pocket expenses.
R. M. Bansal & Co., Cost Accountants have vast experience in the field
of cost audit and have conducted the audit of the cost records of the
Company for the past several years.
17.3. SECRETARIAL AUDITORS
Pursuant to the provisions of Section 204 of the Companies Act, 2013
and The Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Company has appointed Ranjeet Verma &
Associates. (CP No.: 7463, FCS: 6814), Company Secretaries to undertake
the secretarial audit of the company. The Secretarial Audit Report is
annexed herewith as 'Annexure 1'.
17.4. INTERNAL AUDITORS
M/s Rajiv S Agarwal & Co. Chartered Accountants performs the duties of
internal auditors of the company and their report is reviewed by the
audit committee from time to time.
18. CORPORATE GOVERNANCE
As per Clause 49 of the Listing Agreement with the Stock Exchanges, a
separate section on corporate governance practices followed by the
Company, together with a certificate from the Company's Secretarial
Auditor confirming compliance forms an integral part of this Report.
19. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information on conservation of energy, technology absorption and
foreign exchange earnings and outgo stipulated under Section 134(3)(m)
of the Companies Act, 2013 read with Rule, 8 of The Companies
(Accounts) Rules, 2014, is annexed herewith as "Annexure 2".
20. EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form
MGT 9 is annexed herewith as "Annexure 3".
21. PARTICULARS OF EMPLOYEES
The information required pursuant to Section 197 read with Rule, 5 of
The Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 in respect of employees of the Company is as follows:
The Company has One Executive Director and one Managing Director, no
sitting fees have been paid to any director during the year.
The particulars of the employees who are covered by the provisions
contained in Rule 5(2) and rule 5(3) of Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 is annexed herewith
as "Annexure 4".
22. ACKNOWLEDGEMENTS
The company has been very well supported from all quarters and
therefore your directors wish to place on record their sincere
appreciation for the support and co-operation received from Central and
State Governments, Bankers and others associated with the Company.
Your Directors wish to thank the banks, financial institutions,
shareholders and business associates for their continued support and
cooperation.
We look forward to receiving the continued patronage from all quarters
to become a better and stronger company.
23. CAUTIONARY STATEMENT
The statements contained in the Board's Report and Management
Discussion and Analysis contain certain statements relating to the
future and therefore are forward looking within the meaning of
applicable securities, laws and regulations.
Various factors such as economic conditions, changes in government
regulations, tax regime, other statues, market forces and other
associated and incidental factors may however lead to variation in
actual results.
BY order of the Board
For Rathi Steel And Power Limited
Sd/- Sd/-
Prem Narain Varshney Pradeep Kumar Rathi
(Whole Time Director) (Managing Director)
DIN:00012709 DIN: 00012596
Place: New Delhi
Date: 14/08/2015
Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting the 43rd Annual Report
together with the Audited Accounts of the Company for the year ended
31st March 2014.
FINANCIAL RESULTS (Rs. In Lacs)
Particulars Year ended Year ended
31st March 31st March
2014 2013
Sales 46553.09 80843.18
EBITDA (4377.42) (8038.40)
Interest 4927.90 5320.88
Depreciation 891.68 2207.40
profit after Tax (PAT) (7433.67) (11004.82)
Dividend NIL NIL
DIVIDEND
Due to heavy losses, Directors regret their inability to declare any
dividend.
CAPITAL
During the year the Company reclassified its Authorized Capital by
creating 1,80,00,000 redeemable preference shares of Rs 10.00 each out
of the then existing 5,00,00,000 equity shares of Rs 10.00 each. It
further increased its Authorized capital by creating 1,50,00,000
redeemable preference shares of Rs 10.00 each, resulting into
Authorized capital of Rs 65,00,00,000 divided into 3,20,00,000 equity
shares of Rs 10 each amounting to Rs. 32,00,00,000 and 3,30,00,000
redeemable preference shares of Rs 10 each amounting to Rs
33,00,00,000.
During the year the Company issued 3,26,30,000 redeemable preference
shares of Rs 10.00 each amounting to Rs 32,63,00,000.
PERFORMANCE REVIEW
The Gross sales for the financial year under review were Rs. 465
croreas against Rs.808 Crore for the previous financial year. The
operational performance of the Company has been comprehensively covered
in the Management Discussion and Analysis report.
FUTURE OUTLOOK :
Domestic steel demand to remain muted during FY2012Â17 on account of a
weak macroeconomic environment. The demand for longs is expected to
increase by 19 million ton (MT) at a CAGR of 9 percent and for fats by
16 MT at a CAGR of 8 percent between FY2012 and FY2017. This is due to
relatively weaker growth prospects of fats end-user industries (such as
automotive and consumer durables) than those for longs.
The growth in the steel market is expected to be muted in the short
term on account of poor growth in core consumer sectors such as
infrastructure and construction. The demand is expected to rebound in
the latter half of 2015 with growth in infrastructure as announced in
the Twelfth Five-year Plan. Growth in the automobile and consumer
durable sectors will also support demand growth in the long term.
The large steel players and new entrants have announced capacity
addition of about 71 MTPA till 2017. Regulatory hurdles and land
acquisition challenges remain the largest supply-side constraint for
the Indian steel market. Mining bans in Karnataka and Goa and delays in
the execution of announced capital projects can further constrain
supplies.
With a stable Government in Centre and its thrust on infrastructure
development, your company reasonably believes that the turbulent
conditions during the year under review, which did not allow potential
of the operations to be fully realized, will not be a lasting
phenomenon.
CORPORATE DEBT RESTRUCTURING:
In the wake of adverse business environment and severe liquidity
crunch, your company had applied for restructuring of its debts. We are
happy to inform you that the restructuring proposal has since been
approved and implemented by the banks.
PUBLIC DEPOSITS:
The Company has not invited any public deposit during the year. There
is no overdue / unclaimed deposit.
DIRECTORS'':
In terms of Article 116 of the Article of Association of the Company
Shri Prem Narain Varshney, Director of the company is liable to retire
by rotation at the ensuing Annual General Meeting and being eligible,
offers himself for re-appointment. He has confirmed that he has not
incurred any disQualification under section 164 of the Companies Act,
2013 and is eligible for reappointment as Director of the Company.
The tenure of Shri Prem Narain Varshney Whole time Director of the
Company also expired. It is proposed to reappoint him as Whole Time
Director. Shri Prem Narain Varshney, aged 62 years and holds Post
Graduate degree and associated with company since 1997. He has more
than 36 years of experience in the feld of Human Resource Department
and has a pivotal role in running the affairs of the Company. The
Board of Directors/ Remuneration Committee of the Company at its
Meeting held on August 14, 2014 reappointed Shri Prem Narain Varshney
as a Whole Time Director for a period of Five (5) years with effect
from 01/08/2014. The said reappointment is subject to the approval of
the shareholders in general meeting.
Pursuant to section 149 and other applicable provision of the Companies
Act, 2013, and as per Clause 49 of the Listing Agreement with stock
Exchanges, the Board of Director seeking appointment of Shri S.K Daga
and Shri Dwarka Das Lakhotia as Independent director for a term of 5
consecutive years. Details of the proposal for appointment of Shri S.K
Daga and Shri Dwarka Das Lakhotia are mentioned in Explanatory
statement under section 102 of the Companies Act, 2013.
The tenure of Shri Pradeep Kumar Rathi as Managing Director expired on
31stJuly 2014 and he is eligible to be reappointed as such. He being
eligible and offers himself for re-appointment. Shri Pradeep Kumar
Rathi is a promoter Director of the Company and associated with company
for last 35 years. He is at the helm of the affairs and has a pivotal
role in running the affairs of the Company. Hence the Board of
Directors/Remuneration committee of the Company (the Board) at its
meeting held on 14th August 2014 has, subject to the approval of
members, re-appointed Shri Pradeep Kumar Rathi as Managing Director of
the Company for a period of 5(five) years from the expiry of his present
term.
The Board recommends the re-appointment of aforesaid directors by the
shareholders at ensuing AGM.
AUDITORS AND AUDITORS'' REPORT:
M/s M.Lal& Co., Chartered Accountants hold office until the conclusion
of the ensuing 43rd Annual General Meeting and are eligible for
re-appointment. They have confirmed that their appointment, if made,
would be in conformity with the limit prescribed under section 141
(3)(g) of the Companies Act, 2013 and that they are not disqualified for
re-appointment.
The notes to the accounts referred to in by the Auditors are self
explanatory and therefore do not calls for any further comment.
COST AUDITORS:
The Board of Directors had approved the appointments of Messrs R. M.
Bansal & Co., Cost Accountants (Kanpur) to conduct the Cost Audit for
the year ending on 31st March, 2014.
PARTICULARS OF EMPLOYEE(S):
During the year under review there was no employee falling under the
terms of section 217(2A) of the Companies Act, 1956 read with Companies
(Particulars of Employee) Rules 1975.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO:
As required under the provisions narrated under section 217(1)(e) of
the Companies Act, 1956 read with Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules 1988 the relevant data is
attached and forming part of this report.
DIRECTORS'' RESPONSIBILITY STATEMENT:
Pursuant to the provisions of sub section 217(2AA) of the Companies
Act, 1956 the Board of Directors confirms:
(i) That in preparations of the annual accounts for the financial year
ended 31.03.2014 the applicable accounting standards had been followed
along with proper explanations relating to material departure.
(ii) That the selected accounting policies were applied consistently
and judgment and estimates that were reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company as on
31st March 2014 and of the profit or loss of the company for the year
ended on that date.
(iii) That proper and suffcient 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 the Company and for
preventing and detecting fraud and other irregularities.
(iv) That the annual accounts of your company have been prepared on
going concern basis.
LISTING OF SHARES:
The Equity shares of the Company are presently listed with Bombay Stock
Exchange Limited. The Company has made a request to de list its shares
from Delhi Stock Exchange Limited.
CORPORATE GOVERNANCE:
Pursuant to Clause 49 of the Listing Agreement with the Stock Exchange,
a separate section titled "compliance report on corporate governance"
has been included in this Annual Report along with a certificate of
compliance from the Auditors and forming part of this report.
MANAGEMENT DISCUSSION AND ANALYSIS:
Management Discussion and Analysis Report for the year under review, as
per clause 49 of the Listing Agreement with the Stock Exchange is
presented in a separate section, forming part of Annual Report.
CHIEF FINANCIAL OFFICER:
As per the provision of section 203 (1) of the Companies Act, 2013 Shri
Anil Kumar Gupta has been appointed as Chief Financial officer of the
Company.
INDUSTRIAL RELATIONS:
The Company enjoys cordial industrial relations with the employees. The
Board wishes to place on record its deep sense of appreciation of the
contribution made by all the employees in ensuring high level of
performance and growth during the year.
ACKNOWLEDGEMENT:
The Board of Directors take this opportunity to express its gratitude
and appreciation to the Banks, Central and State Government
Authorities, Regulatory Authorities Stock Exchange and the stake
holders for the continued cooperation and assistance extended to the
Company.
For Rathi Steel And Power Limited
Sd/- Sd/-
Prem Narain Varshney Pradeep Kumar Rathi
Whole Time Director Managing Director
DIN: 00012709 DIN: 00012596
Place: New Delhi
Date: 14/08/2014
Mar 31, 2013
The Directors have pleasure in presenting the 42nd Annual Report
together with the Audited Accounts of the Company for the year ended
31st March 2013.
FINANCIAL RESULTS
(Rs. In Lacs)
Particulars Year ended Year ended
31st March 31st March
2013 (Rs. In 2012 (Rs.
Lacs) In Lacs)
Sales 80843.18 93665.84
EBITDA (8038.40) 8276.42
Interest 5320.88 5003.43
Depreciation 2207.40 2255.73
Proft before Tax (PBT) (15566.67) 1017.26
Proft after Tax (PAT) (11004.82) 1238.00
Dividend and Dividend Tax NIL NIL
DIVIDEND
Due to heavy losses, Directors regret their inability to declare any
dividend.
PERFORMANCE REVIEW
The sales for the fnancial year under review were Rs.808 Crore as
against 937 Crore for the previous fnancial year. The operational
performance of the Company has been comprehensively covered in the
Management Discussion and Analysis report.
FUTURE OUTLOOK / PROSPECTS:
The Indian economy has been impacted due to concerns in the developed
economies. Unlike the situation post 2008, wherein the Indian economy
witnessed considerable resilience to the global economic slowdown, and
was able to recover strongly the impact this time is of higher
magnitudes due to policy related issues.
Driven by policy log jam, the industrial sector was plagued by a
slowdown in demand and consumption in 2012-13. World crude steel
production for the 62 countries reporting to the World Steel
Association was 132 MT in April 2013, an increase of 1.2% compared to
April, 2012 and accounted for more than 98% of world crude steel
production. The average capacity utilization ratio in 2012 was 78.8%
compared to 80.7% in 2011.
With the steady decline in the domestic economy''s growth rate, the
Indian steel industry''s pace of growth slowed down and in terms of all
the performance indicators.
A report by Bank of America-Merrill Lynch suggests domestic steel
outlook to remains weak with lesser possibility of turnaround in the
current fnancial year. Offering a negative outlook, the report blames
it on demand slowdown from key industries like construction, auto and
infrastructure, keeping margins of steel frms under pressure. A fall in
the value of the rupee has further complicated matters for the Reserve
Bank to reduce policy rates, creating fear of delaying the process of
economic recovery. The report also points out that while demand for
steel products remains low; many delayed steel projects are due for
commissioning during this fscal leading to overcapacity.
The Indian economy''s outlook for 2013-14 can be viewed as cautiously
optimistic. It is expected that the domestic steel industry will
continue to be under pressure over the short term. Domestic steel
demand is expected to be muted and proft margins in fnancial year
2013-14 to remain broadly similar to the fnancial year 2013-14. This is
mainly due to persistent high cost of steel production. Though the
Steel demand was low in 2012-13 due to continuing economic crisis,
however, spurt in demand is expected in 2014- 15.
The Government of India has planned to invest about Rs.56.32 lakh crore
in infrastructure during the 12th Five Year Plan period 2012-17. This
will augur well for the industry.
Your company reasonably believes that the turbulent conditions during
the year under review, which did not allow the potential of the
operations to be fully realized, will not be a lasting phenomenon.
CORPORATE DEBT RESTRUCTURING:
In the wake of adverse business environment and severe liquidity
crunch, your Company has applied for restructuring of its debts. The
Restructuring proposal has since been admitted in the CDR cell. Final
Approval from CDR Empowered Group/CDR Cell is yet to be received.
PUBLIC DEPOSITS:
The Company has not invited any public deposit during the year. There
is no overdue / unclaimed deposit.
DIRECTORS'':
In terms of Article 116 of the Articles of Association of the Company
Shri Dwarka Das Lakhotia, Director of the Company is liable to retire
by rotation at the ensuing Annual General Meeting and being eligible,
offers himself for re-appointment. He has confrmed that he has not
incurred any disqualifcation under section 274(1) (g) of the Companies
Act, 1956 and is eligible for reappointment as Director of the Company.
AUDITORS AND AUDITORS'' REPORT:
M/s M. Lal & Co., Chartered Accountants hold offce until the conclusion
of the ensuing 41st Annual General Meeting and are eligible for
re-appointment. They have confrmed that their appointment, if made,
would be in conformity with the limit prescribed under section 224 (1B)
of the Companies Act, 1956. The Auditors'' observation in para 10 of the
Annexure to the Auditor''s Report that the Company has incurred cash
losses as at 31st March 2013 and accumulated losses of the Company at
the end of the year are more than 50% of its net worth is self
explanatory and does not require any further comments from the
Directors.
With respect to Auditors observation under para 11 of the Annexure to
the Auditors'' Report, your Directors wish to inform you that the delay
in repayment of principal of Rs. 10.45 Crores, interest of Rs. 9.36
Crores and bills Crystallized Rs. 50.57 Crores for the period from
01.12.2012 to 31.03.2013 were due to severe liquidity crisis being
faced by the Company on account of continued losses incurred during the
year, further aggravated by the delay in receipt of expected cash fows
on time.
COST AUDITORS:
The Board of Directors had approved the appointments of Messrs
R.M.Bansal & Co., Cost Accountants (Kanpur) to conduct the Cost Audit
for the year ending on 31st March, 2013.
PARTICUALRS OF EMPLOYEE(S):
During the year under review there was no employee falling under the
terms of section 217(2A) of the Companies Act, 1956 read with Companies
(Particulars of Employee) Rules 1975.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO:
As required under the provisions narrated under section 217(1)(e) of
the Companies Act, 1956 read with Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules 1988 the relevant data is
attached and forming part of this report.
DIRECTORS'' RESPONSIBILITY STATEMENT:
Pursuant to the provisions of sub section 217(2AA) of the Companies
Act, 1956 the Board of Directors confrms:
(i) That in preparations of the annual accounts for the fnancial year
ended 31.03.2013 the applicable accounting standards had been followed
along with proper explanations relating to material departure.
(ii) That the selected accounting policies were applied consistently
and judgement and estimates that were reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company as on
31st March 2013 and of the proft or loss of the company for the year
ended on that date.
(iii) That proper and suffcient 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 the Company and for
preventing and detecting fraud and other irregularities.
(iv) That the annual accounts of your company have been prepared on
going concern basis.
LISTING OF SHARES:
The Equity shares of the Company are presently listed with Mumbai Stock
Exchange Limited. The Company has made a request to delist its shares
from Delhi Stock Exchange Limited.
CORPORATE GOVERNANCE:
Pursuant to Clause 49 of the Listing Agreement with the Stock Exchange,
a separate section titled "compliance report on corporate governance"
has been included in this Annual Report along with a certifcate of
compliance from the Auditors and forming part of this report.
MANAGEMENT DISCUSSION AND ANALYSIS:
Management Discussion and Analysis Report for the year under review, as
per clause 49 of the Listing Agreement with the Stock Exchange is
presented in a separate section, forming part of Annual Report.
CHIEF FINANCIAL OFFICER:
Shri Atul Agarwal had been appointed as Chief Financial Offcer of the
Company effective from 08-10-2012.
INDUSTRIAL RELATIONS:
The Company enjoys cordial industrial relations with the employee. The
Board wishes to place on record its deep sense of appreciation of the
contribution made by all the employees in ensuring high level of
performance and growth during the year.
ACKNOWLEDGEMENT:
The Board of Directors take this opportunity to express its gratitude
and appreciation to the Banks, Central and State Government
Authorities, Regulatory Authorities Stock Exchange and the stake
holders for the continued cooperation and assistance extended to the
Company.
For Rathi Steel And Power Limited
Sd/- Sd/-
Prem Narain Varshney Pradeep Kumar Rathi
Whole Time Director Managing Director
Place: New Delhi
Date: 04/09/2013
Mar 31, 2012
The Directors have pleasure in presenting the 41st Annual Report
together with the Audited Accounts of the Company for the year ended
31st March 2012.
FINANCIAL RESULTS
(Rs. In Lacs)
Particulars Year ended Year ended
31 st March 31 st March
2012 (Rs. 2011 (Rs.
In Lacs) In Lacs)
Sales (Net of Excise) 93665.84 82464.01
EBITDA 8276.42 6742.55
Interest 5003.43 3633.31
Depreciation 2255.73 1973.80
Profit before Tax 1017.26 1135.44
(PBT)
Profit after Tax (PAT) 1238.00 1405.00
Dividend and Dividend Nil 109.52
Tax
DIVIDEND
Considering the requirement of funds in the operations of the company,
Directors regret their inability to declare any dividend.
PERFORMANCE REVIEW
Net sales for the financial year under review were Rs. 937 crores as
against 825 Crores for the previous financial year. The operational
performance of the Company has been comprehensively covered in the
Management Discussion and Analysis report.
FUTURE OUTLOOK
The world steel industry is a large one. According to the World Steel
Association, world crude steel production was a record 1,527 million
tons in 2011. However, despite its size, the steel industry remains
relatively fragmented. The industry is highly cyclical and intensely
competitive.
In 2011, world steel production is estimated to increase by 7.0% y-o-y,
underpinned by growth in China and India. However, the growth of
Organization for Economic Co-operation and Development economies is
expected to be stagnant or modest at best. Global steel production is
expected to grow by another 7.0% in 2012.
In early 2011, there were major concerns that the rapid growth of
China's steel production was putting
pressure on international steel markets due to the impact of demand on
key raw material inputs. Steel prices rallied in the first half of 2011
due to raw material cost escalation. The cost-push rally is because
cost prices have been rising faster than the steel prices, thus
squeezing the margins of steel players.
Chinese crude steel production in the first half of 2011 increased
about 10% to reach 353 million tones and was expected to continue to
increase at a moderate pace in the second half of 2011 in response to
slower consumption growth in the country.
India represents the new growth frontier for global steelmakers. The
Indian economy is better insulated from the global economy than other
Asian countries because it does not rely heavily on exports to the
developed market. However, in the globalized environment, no economy is
completely decoupled from the world economy. In addition, GDP growth in
2010 and 2011 was hampered by the 13 consecutive interest rate hikes
aimed at curbing inflation.
In an effort to curb inflation, policy- makers and regulators have
adopted policies that slow down the real economic activity in the
economy. Also all the macro-economic indicators point out the onset of
overall economic slowdown of Indian economy which will have a profound
impact on investment, growth of manufacturing and other sectors.
Further, the uncertain global economic environment continues to pose
serious challenges to the sustained growth of Indian economy.
However, economic fundamentals high savings and investment rates,
demography, and a rapidly growing middle class remain strong in India,
which will ensure a relatively stable economic performance for the
country.
Fitch Ratings says that the outlook for the Indian Steel producers will
remain stable in 2012, despite the risk of a slowdown in the growth of
domestic steel demand. Fitch believes that demand for steel from
automobile, white goods, construction and infrastructure sectors will
continue to grow through 2012, albeit at a low rate of 6%-7%.
Steel demand has a high correlation with growth in GDP, which is
showing signs of a slowdown. Fitch estimates its real GDP growth
projections for India for FY13 at 7.5% due to higher domestic interest
rates and a weaker global economy.
Nevertheless, there exists enormous potential in the economy for higher
growth of domestic steel demand in medium and long term. In terms of
actual steel usage India lags behind other major steel producing
countries. In 2010 our per capita consumption of
steel was only 51.7 Kgs as against the world average of 202.7 kgs. A
massive investment to the tune of $ 1 trillion dollars has been
envisaged during the Twelfth five year plan in the infrastructure
sector. Besides there is a greater emphasis on the growth of the
Manufacturing Sector in the country. This augurs well for expansion of
the base of steel consumption in the economy. A rough estimate of
incremental demand for steel in the country works out approximately to
40 million tonnes in infrastructure alone. Hence, it is likely to raise
intensity of steel consumption in the country measured in terms of
steel consumption per unit of Gross Domestic Product (GDP). The
National Steel Policy had set a production target 110 million tonnes to
be achieved by 2019-20. The Indian steel industry may achieve double
digit growth in consumption and surpass this production target by
2016-17 well ahead of the target date.
Government on its part has taken number of initiatives to boost the
growth of real estate sector. Some of the measures taken include
opening the doors for External Commercial Borrowing ("ECB") for
specified low cost affordable housing projects which could potentially
provide the much needed liquidity to the housing sector. Further, the
interest to be paid on the ECB loan availed from the period July 2012
to June 2015 by the real estate developer is to be subjected to a lower
rate of deduction of tax at source. Investment linked deduction is
available for low cost affordable housing projects.
You are well aware that your company is into the business of
manufacturing of long products of mild steel and stainless steel. While
the company's Endeavour has always been to maintain its position in
long segment, it is also trying to increase its share in the value
added products such as long products of special diameter and stainless
steel products. During the year under review your company successfully
completed the expansion of capacity of rolling mills at Ghaziabad to
175000 MTPAfrom 125000 MTPA.
PUBLIC DEPOSITS:
The Company has not invited any public deposit during the year. There
is no overdue / unclaimed deposit.
DIRECTORS:
In terms of Article 116 of the Articles of Association of the Company,
Shri Prem Narain Varshney and Shri Ranjit Khattar, Directors of the
Company are liable to retire by rotation at the ensuing Annual General
Meeting and being eligible, offer themselves for re- appointment. They
have confirmed that they have not incurred any disqualification under
section 274(1) (g) of the Companies Act, 1956 and are eligible for
reappointment as Director of the Company.
AUDITORS AND AUDITORS' REPORT:
M/s M.Lal & Co., Chartered Accountants hold office until the conclusion
of the ensuing 41st Annual General Meeting and are eligible for
re-appointment. They have confirmed that their re-appointment, if
made, would be in conformity with the limit prescribed under section
224(1 B) of the Companies Act, 1956. The notes to the accounts
referred to in by the Auditors are self explanatory and therefore do
not calls for any further comment.
COST AUDITORS:
The Board of Directors had approved the Re- appointments of M/s
R.M.Bansal & Co., Cost Accountants (Kanpur) to conduct the Cost Audit
for the year ended on 31st March, 2013.
PARTICUALRS OF EMPLOYEE(S):
During the year under review there was no employee falling under the
terms of section 217(2A) of the Companies Act, 1956 read with Companies
(Particulars of Employee) Rules 1975.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO:
As required under the provisions narrated under section 217(1 )(e) of
the Companies Act, 1956 read with Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules 1988 the relevant data is
attached and forming part of this report.
DIRECTOR RESPONSIBILITY STATEMENT:
Pursuant to the provisions of sub section 217(2AA) of the Companies
Act, 1956 the Board of Directors confirms:
(i) That in preparations of the annual accounts for the financial year
ended 31.03.2012 the applicable accounting standards had been followed
along with proper explanations relating to material departure.
(ii) That the selected accounting policies were applied consistently
and judgment and estimates that were reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company as on
31st March 2012 and of the profit or loss of the company for the year
ended on that date.
(iii) 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
the Company and for preventing and detecting fraud and other
irregularities.
(iv) That the annual accounts of your company have been prepared on
going concern basis.
LISTING OF SHARES:
The Equity shares of the Company are presently listed with Mumbai Stock
Exchange Limited. The Company has made a request to delist its equity
shares from Delhi Stock Exchange Limited.
CORPORATE GOVERNANCE:
Pursuant to Clause 49 of the Listing Agreement with the Stock Exchange,
a separate section titled "compliance report on corporate
governance" has been included in this Annual Report along with a
certificate of compliance from the Auditors and forming part of this
report.
MANAGEMENT DISCUSSION AND ANALYSIS:
Management Discussion and Analysis Report for the year under review, as
per clause 49 of the Listing Agreement with the Stock Exchange is
presented in a separate section, forming part of Annual Report.
INDUSTRIAL RELATIONS:
The Company enjoys cordial industrial relations with the employee. The
Board wishes to place on record its deep sense of appreciation of the
contribution made by all the employees in ensuring high level of
performance and growth during the year.
ACKNOWLEDGEMENT:
The Board of Directors take this opportunity to express its gratitude
and appreciation to the Banks, Central and State Goverment Authorities,
Regulatory Authorities Stock Exchange and the stake holders for the
continued cooperation and assistance extended to the Company.
For Rathi Steel And Power Limited
Sd/- Sd/-
Prem Narain Varshney Pradeep Kumar Rathi
Whole Time Director Managing Director
Place: New Delhi
Date: 27/08/2012
Mar 31, 2011
Dear Members,
The Directors have pleasure in presenting the 40th Annual Report
together with the Audited Accounts of the Company for the year ended
31st March 2011.
FINANCIAL RESULTS
(Rs. In Lacs)
Particulars Year ended Year ended
31st march 31st march
2011 (Rs. 2010 (Rs.
In Lacs) In Lacs)
Sales 84529.60 77898.52
EBITDA 6742.55 5264.10
Interest 3633.31 2828.10
Depreciation 1973.80 1815.48
Profit before Tax 1135.44 620.38
(PBT)
Profit after Tax (PAT) 1405.00 437.85
Dividend and Dividend 109.52 109.89
Tax
DIVIDEND
Keeping in view the future expansion plan and the need to conserve
resources, your directors are pleased to recommend a dividend of Re.
0.30 per share on 3,13,08,111 Equity Shares for the year 2010-2011.
PERFORMANCE REVIEW
The Gross sales for the financial year under review were Rs. 845 crore
as against 779 Crore for the previous financial year. The performance
of the Company has been comprehensively covered in the Management
Discussion and Analysis report.
FUTURE OUTLOOK
The Chinese and Indian economies have been the fastest economies.
However, this has led to infationary pressures which have forced
central bank to raise interest rates. China continues to drive the
global steel industry with a production of approx. 630 million tons in
2010 which equates to approx. 45% of global Steel production. Chinese
Steel demand continues to be driven by large capital expenditure and
government infrastructure projects across the country. However, it is
expected that the production growth for steel in the current decade
will slow down, which should reduce raw material prices. The Indian
economy grew at 8.6% in 2010-11 against 7.2% last year which shows a
remarkable growth. The economy is likely to grow at over 8% over the
next decade driven by the infrastructure (power, road, railways, ports
etc.) and consumption (automobile, real estate etc.) sectors which will
result in robust growth in demand for various iron and steel products.
India has acquired a central position on the global steel map with its
giant steel mills, acquisition of global scale capacities by players,
continuous modernization & up gradation of old plants, improving energy
efficiency, and backward integration into global raw material sources.
Global steel giants from across the world have shown interest in the
industry due to its phenomenal performance. For instance - the crude
steel production in India registered a year- on-year growth of 6.4% in
2010 and reached 66.8 Million Metric Tons.
Given its direct correlation to GDP growth, we expect the Indian steel
industry to experience robust growth in the future. We believe the
sector's long- term positive indicators will exceed its challenges.
Indian steel industry plays a significant role in the country's
economic growth. The major contribution directs the attention that
steel is having a stronghold in the traditional sectors, such as
infrastructure & constructions, automobile, transportation, industrial
applications etc. Moreover, steel variant stainless steel is finding
innovative applications due to its corrosion resistive property.
According to Fitch Ratings also outlook for Indian steel producers is
stable for 2011 in the agency`s published report. The stable outlook is
supported by an expected increase in domestic steel demand during the
year due to growth in automobiles, white goods and construction sectors
coupled with the continuous thrust of the Indian government on
infrastructure spending. Fitch expects India`s steel demand to grow at
7%-9% over the next two years.
The global stainless steel industry has been witnessing a steady growth
for some time now. The quarter by quarter figures have indicated an
upward movement in stainless steel production so far for the present
financial year. As one of the leading countries catering to the demand
for stainless steel, India expects its stainless steel industry to be
growing by 10 percent this year. In spite of India's per capita
consumption of Stainless Steel being at 1.1 kg, which is far below the
developed world average of 15 kg, there are indications that with the
government planning to develop the basic infrastructure considerably,
that would be a key factor to increasing consumption. Besides, the
growing middle class will support demand for fixed assets such as
housing, white goods and automobiles all translating to demand for the
product.
Your company manufactures long products. With increase in demand there
is a growth in number of players and capacity too. The company's
endeavour will be to maintain its position in long segment of steel
products. Alongside the company also manufactures stainless steel
products and has made serious efforts to increase the share of value
added products in the total product mix which has not only resulted in
increased volume of stainless steel rolled products, but also enabled
the company to improve the operating margins.
Continuous R&D activities, relentless marketing efforts and strong
emphasis on production of quality products have led to substantial
increase in the share of stainless steel products as compared to
previous year. Looking at the great potential in this segment, as the
per capita consumption of stainless steel remains very low as compared
to rest of the world, the company will not only strive to further
improve the product mix by utilizing existing facilities, but also
study option of expanding the capacities of stainless steel / alloy
steel.
PUBLIC DEPOSITS:
The Company has not invited any public deposit during the year. There
is no overdue / unclaimed deposit.
DIRECTORS:
In terms of Article 116 of the Articles of Association of the Company,
Shri Shree Kumar Daga, Director of the Company is liable to retire by
rotation at the ensuing Annual General Meeting and being eligible,
offers himself for re-appointment. He has confirmed that he has not
incurred any disqualification under section 274(1)(g) of the Companies
Act, 1956 and is eligible for reappointment as Director of the Company.
AUDITORS AND AUDITOR'S REPORT:
M/s M.Lal & Co., Chartered Accountants hold office until the conclusion
of the ensuing 40th Annual General Meeting and are eligible for
re-appointment. They have confirmed that their appointment, if made,
would be in conformity with the limit prescribed under section 224(1B)
of the Companies Act, 1956. The notes to the accounts referred to in by
the Auditors are self explanatory and therefore do not calls for any
further comment.
COST AUDITORS:
The Board of Directors had approved the appointments of Messrs
R.M.Bansal & Co., Cost Accountants, Kanpur to conduct the Cost Audit
for the year ending on 31st March, 2012.
PARTICUALRS OF EMPLOYEES:
During the year under review there was no employee falling under the
terms of section 217(2A) of the Companies Act, 1956 read with Companies
(Particulars of Employee) Rules 1975.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO:
As required under the provisions narrated under section 217(1)(e) of
the Companies Act, 1956 read with Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules 1988 the relevant data is
attached and forming part of this report.
DIRECTOR RESPONSIBILITY STATEMENT:
Pursuant to the provisions of sub section 217(2AA) of the Companies
Act, 1956 the Board of Directors confirms:
(i) That in preparations of the annual accounts for the financial year
ended 31.03.2011 the applicable accounting standards had been followed
along with proper explanations relating to material departure.
(ii) That the selected accounting policies were applied consistently
and judgement and estimates that were reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company as on
31st March 2011 and of the profit or loss of the company for the year
ended on that date.
(iii) 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
the Company and for preventing and detecting fraud and other
irregularities.
(iv) That the annual accounts of your company have been prepared on
going concern basis.
LISTING OF SHARES:
The Equity shares of the Company are presently listed with Mumbai Stock
Exchange Limited. The Company has made a request to delist its shares
from Delhi Stock Exchange Limited.
CORPORATE GOVERNANCE:
Pursuant to Clause 49 of the Listing Agreement with the Stock Exchange,
a separate section titled "compliance report on corporate governance"
has been included in this Annual Report along with a certificate of
compliance from the Auditors and forming part of this report.
MANAGEMENT DISCUSSION AND ANALYSIS:
Management Discussion and Analysis Report for the year under review, as
per clause 49 of the Listing Agreement with the Stock Exchange is
presented in a separate section, forming part of Annual Report.
INDUSTRIAL RELATIONS:
The Company enjoys cordial industrial relations with the employee. The
Board wishes to place on record its deep sense of appreciation of the
contribution made by all the employees in ensuring high level of
performance and growth during the year.
ACKNOWLEDGEMENT:
The Board of Directors take this opportunity to express its gratitude
and appreciation to the Banks, Central and State Government
Authorities, Regulatory Authorities Stock Exchange and the stake
holders for the continued cooperation and assistance extended to the
Company.
For Rathi Steel and Power Limited
Sd/- Sd/-
Prem Narayan Varshney Pradeep Rathi
Whole Time Director managing Director
Place : New Delhi
Date : 23/08/2011
Mar 31, 2010
The Directors have pleasure in presenting the 39th Annual Report
together with the audited accounts of the company for the year ended
31st March 2010.
FINANCIAL RESULTS
(Rs. in lacs)
Particulars Year ended Year ended 31st
31st march march 2009
2010
(Rs. in lacs) (Rs. in Lacs)
Sales 77898.52 79624.97
EBITDA 5264.10 5099.69
Interest 2828.10 2766.85
Depreciation 1815.48 1586.67
Profit before Tax 620.38 746.17
(PBT)
Net Profit after Tax 437.85 1113.29
(PAT)
Dividend and Divi- 109.89 85.31
dend Tax
DIVIDEND:
Keeping in view the future plans for expansion and the need to conserve
resources, your directors are pleased to recommend a dividend of Re.
0.30 per share on 31,30,8111 Equity Share for the year 2009-2010.
PERFORMANCE REVIEW AND FUTURE PLAN:
The Gross Sales for the financial year under review were Rs. 779 Crore
as against Rs. 796 Crore for the previous financial year. The
operational performance of the Company has been comprehensively covered
in the Management Discussion and Analysis report.
FUTURE OUTLOOK
Over calendar year 2009, world crude steel production declined by 8 per
cent to 1,220 million tonnes, over 1.4 per cent drop in the preceding
year. Earlier, global steel output had increased by 9 per cent in 2006,
which eased to 7.9 per cent in 2007. Steel production weakened in
nearly all the major steel producing countries and regions including
the EU, North America, South America and the CIS in 2009. However,
Asia, in particular China and India, and the Middle East showed
positive growth over the year.
Chinas crude steel production in 2009 reached 567.8 million tonnes, an
increase of 13.5 per cent on 2008. The countryÃs share of world steel
production which continued to grow, reached 47 per cent, an increase of
9 percentage points compared to 2008. Asia produced 795.4 million
tonnes (+3.5%) of crude steel. Japan produced 87.5 million tonnes
(-26.3%). IndiaÃs crude steel production was 56.6 million tonnes
(+2.7%) and that of South Korea 48.6 million tonnes (-9.4%). The EU-27
where all major steel producing countries showed substantial decline
recorded a decrease of 29.7 per cent, producing 139.1 million tonnes of
crude steel. Crude steel production in North America was 82.3 million
tonnes (- 33.9 per cent). USA produced 58.1 million tonnes (-36.4 per
cent). The CIS showed a decrease of 14.7 per cent in 2009. Russia
produced 59.9 million tonnes of crude steel (-12.5 per cent).
The World Steel Association (world steel) represents approximately 180
steel producers (including 19 of the worldÃs 20 largest steel
companies), national and regional steel industry associations, and
steel research institutes. World steel members produce around 85 per
cent of the worldÃs steel.
FORECAST FOR INDIA
2008 2009 2010 2011
GDP at market prices
(% increase) 6.1 6 7.5 8
Private Consumption
(% increase) 2.9 4 6.7 7.5
Government Consumption
(% increase) 20.2 10 7 6.5
Fixed Investment
(% increase) 8.3 4.9 10.5 10.9
Export* (% increase) 12.8 -6.8 11.1 13.1
Import* (% increase) 17.9 -8 11.6 13.3
Nominal GDP ($ billion) 1112 1232 1467 1725
Population (million) 1183 1197 1211 1224
GDP per capital
(current USD) 940 1029 1212 1409
* Goods and non -
factor services
On the other hand world crude steel production for the 66 countries
reporting to the World Steel association (world steel) was 119 million
metric tons (mmt) in June. This is 18% higher than June 2009.
World crude steel production in the first six months of 2010 was 706
mmt, 27.9% higher in comparison with the same period of 2009. All the
regions showed increased crude steel production during the first half
of 2010 compared to the first half of 2009.
Although production in the first half of 2010 increased by 7.2%
compared to the same period of 2007, just before the global economic
crisis, most of the world has not recovered to pre-crisis levels. Only
Asia and the Middle East showed increased crude steel production
compared to the first six months of 2007. Crude steel production in the
EU, CIS, US and Canada is still more than 15% below 2007 levels.
Chinas crude steel production for June 2010 was 53.8 mmt, an increase
of 9% compared to June 2009. Elsewhere in Asia, Japan produced 9.4 mmt
of crude steel in June 2010, up 35.9% compared to the same month last
year. South KoreaÃs crude steel production for June 2010 was 4.8 mmt,
21.9% up compared to the same month last year.
In the EU, GermanyÃs crude steel production for June 2010 was 3.9 mmt,
an increase of 53.4% on June 2009. Italy produced 2.3 mmt, 32.8% higher
than the same month in 2009. France produced 1.5 mmt of crude steel in
June 2010, an increase of 31.4% compared to June 2009. Turkey produced
2.5 mmt of crude steel in June 2010, 13.8% higher than June 2009.
Russia produced 5.4 mmt of crude steel in June 2010, a 6% increase over
the same month in 2009 and UkraineÃs crude steel production for June
2010 was 2.5 mmt, up 7.2% compared to the same month last year.
The US produced 7.2 mmt of crude steel in June 2010, an increase of 65%
compared to June 2009.Brazilian crude steel production was 2.9 mmt,
46.8% higher than June 2009.
The world crude steel capacity utilisation ratio of the 66 countries in
June 2010 declined again to 80.6% from 82.0% in May 2010. Compared to
June 2009, the utilisation ratio in June 2010 increased by 8.3
percentage points.
PUBLIC DEPOSITS:
The Company has not invited any public deposit during the year. There
is no overdue / unclaimed deposit.
DIRECTORS:
In terms of Articles 116 of the Articles of Association of the Company,
Shri D.D. Lakhotia, Director of the Company is liable to retire by
rotation at the ensuing Annual General Meeting and being eligible,
offer themselves for re- appointment. They have confirmed that they
have not incurred any disqualification under Section 274(1) (g) of the
Companies Act, 1956 and they are eligible for reappointment as
Directors of the Company.
AUDITORS AND AUDITORÃS REPORT:
M/s M. Lal & Co., Chartered Accountants hold office until the
conclusion of the ensuing Annual General Meeting and are eligible for
re-appointment. They have confirmed that their appointment, if made,
would be in conformity with the limit prescribed under section 224(1B)
of the Companies Act, 1956. The notes to the accounts referred to in by
the Auditors are self explanatory and therefore do not calls for any
further comment.
PARTICULARS OF EMPLOYEES:
During the year under review there was no employee falling under the
terms of section 217(2A) of the Companies Act, 1956 read with the
Companies (Particulars of employee) Rules 1975.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO:
As required under the provisions narrated under section 217(1)(e) of
the Companies Act, 1956 read with Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules, 1988 the relevant data is
attached and forming part of this report.
DIRECTOR RESPONSIBILITY STATEMENT:
Pursuant to the provisions of Sub Section 217 (2AA) of the companies
act, 1956 the board of Directors confirms:
(i) That in preparation of the annual accounts for the financial year
ended 31.03.2010 the applicable accounting standard had been followed
along with proper explanations relating to material departure.
(ii) That the selected accounting policies were applied consistently
and the directors made judgments and estimates that were reasonable and
prudent so as to give a true and fair view of the state of affairs of
the company as on 31st March 2010 and of the profit of the company for
the year ended on that date.
(iii) 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 the
company and by preventing and detecting fraud and other irregularities.
(iv) That the annual accounts of your company have been prepared on
going concern basis.
LISTING OF SHARES:
The Equity shares of the company are presently listed at the Mumbai
Stock Exchange Limited. The Company has made a request to delist its
shares from Delhi Stock Exchange Limited.
CORPORATE GOVERNANCE:
Pursuant to Clause 49 of the Listing Agreement with the stock exchange,
a separate section titled Ãcompliance report on corporate governanceÃ
has been included in this Annual Report along with a certificate of
compliance from the Auditors and forming part of this report.
MANAGEMENT DISCUSSION AND ANALYSIS:
Management Discussion and Analysis Report for the year under review, as
per Clause 49 of the Listing Agreement with the stock exchange is
presented in a separate section forming part of the Annual Report.
INDUSTRIAL RELATIONS:
The Company enjoys cordial industrial relations with the employee. The
Board wishes to place on record its deep sense of appreciation of the
contribution made by all the employees in ensuring high level of
performance and growth during the year.
ACKNOWLEDGEMENT:
The Board of Directors take this opportunity to express its gratitude
and appreciation to the Banks, Central and State Government Authorities
, Regulatory Authorities, Stock Exchange and the stake holders for the
continued cooperation and assistance extended to the company.
By order of the Board of Directors
For Rathi Steel And Power Limited
Sd/- Sd/-
Prem Narayan Varshney Pradeep Rathi
Whole Time Director Managing Director
Place: New Delhi
Date: 03/09/2010