Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting the 24th Annual Report
together with the Audited Accounts of the company for the year ended
31st March, 2015.
1. Financial Highlights
2014-2015 2013-2014
( Rs. In Lacs) ( Rs In Lacs)
Particulars
Income for the Year 34477.98 32345.66
Profit before interest, depreciation
and tax (PBIDT) 1097.65 2232.26
Less:
Financial Expenses 1130.83 1357.62
Depreciation 400.45 640.71
Profit / (Loss) before tax (433.63) 233.93
Provision for taxation
(i) Current Income Tax, Wealth Tax, 0.15 46.98
(ii) Deferred Tax 59.83 3.86
(iii) MAT Credit Entitlement 0.00 (42.69)
Profit after tax (493.61) 225.78
Add / (Less): Prior Period Adjustment 1.89 4.99
Profit available for appropriation (491.72) 230.77
Appropriations
Opening Balance of Profit & Loss
Account 2479.16 2248.39
Less: Proposed Dividend on Equity
shares 0.00 0.00
Less: Tax on dividend 0.00 0.00
Less: General Reserve 0.00 0.00
Net Balance Carried forward to
Balance Sheet. 1987.44 2479.16
2. Dividend
Due to Loss, the directors therefore do not recommend dividend for the
current year.
3. Industrial Relation
Industrial relations remained cordial throughout the year. Your
Directors place on record their deep appreciation of the contribution
made by the employees at all levels. Measures have been taken for Human
Resources Development.
4. Performance
During the year under review the income has increased to Rs. 34477.98
Lacs an increase of 6.59% over previous year and Profit before
Interest, depreciation and tax (PBIDT) has reduced up to 50.83% over
the previous year. The Company had started trading of Cold Rolled
Stainless Strips/Coils in previous year in order to escalate the
revenue and to capture the local market, but due to lack of market
support and dumping of the import material because of which the company
incurred losses, it had to stop the Trading activity and divert itself
back to its core manufacturing business.
5. Corporate Social Responsibility
Section 135 of the Companies Act, 2013 and framed Rules thereunder
provides that certain Companies are required to spend 2% of its average
net profit during 3 preceding years on CSR activities. It also provides
formation of CSR committee of the Board. The Rules prescribe the
activities qualify under CSR and the manner of spending the amount.
The company is not covered under section 135 of the Companies Act, 2013
and the Rules framed thereunder for the financial year under report.
CSR Committee of the Board will be constituted at the time of
applicability, of section 135 of the Act. Hence CSR report is no
required to be annexed.
6. Disclosure under Companies Act, 2013
(i) Share Capital
The paid up equity capital as on March 31, 2015 was Rs. 598 Lacs.
During the year under review, The Company has not issued shares with
differential voting rights nor granted stock options nor sweat equity
nor bonus share.
(ii) Number of meeting
A calendar of Meetings is prepared and circulated in advance to the
Directors.
During the year Seven Board Meetings and four Audit Committee Meetings
were convened and held. The details of which are given in the Corporate
Governance Report. The intervening gap between the Meetings was within
the period prescribed under the Companies Act, 2013.
(iii) Independent Directors' Meeting
The Independent Director met on 30.03.2015, Without attendance of
Non-Independent Directors and members of the Management. The Director
review performance of the Non-Independent Director and the Board as
whole; the performance of the chairman of the company, taking into
account the views of Executive Directors and Non-Executive Directors
and assessed the quality, quantity and timeliness of flow of
information between the Company Management and the Board that is
necessary for the Board to effectively and reasonably perform their
duties.
(iv) Statement on declaration given by independent director
All independent directors have given declarations that they meet the
criteria of independence as laid down under section 149(6) of the
Companies Act, 2013 and clause 49 of the Listing Agreement.
(v) Particulars of loans, guarantees or investments:
The company has neither given any loans or guarantees nor made
investments covered under the provisions of section 186 of the
Companies Act, 2013.
(vi) Composition of Audit Committee
The Board has constituted the Audit committee which comprises of two
independent Non Executive Director and One Joint Managing Director.
7. Corporate Governance
The Corporate Governance Report, which form an integral part of this
Report, are set out as separate Annexure- I, together with the
Certificate from the auditors of the Company regarding compliance with
the requirements of Corporate Governance as stipulated in Clause 49 of
the Listing Agreement.
8. Business Risk management
Pursuant to section 134 (3) (n) of the Companies Act, 2013 & Clause 49
of the listing agreement, the company has constituted a business risk
management committee. The details of the committee and its terms of
reference are set out in the corporate governance report forming part
of the Boards report.
At present the company has not identified any element of risk which may
threaten the existence of the company.
9. Internal Control System
The Company has an Internal Control System, commensurate with the size,
scale and complexity of its operations. The scope and authority of the
Internal Audit function is defined in the Internal Audit Manual. To
maintain its objectivity and independence, the Internal Audit function
reports to the Chairman of the Audit Committee of the Board & to the
Chairman & Managing Director.
The Internal Audit Department monitors and evaluates the efficacy and
adequacy of internal control system in the Company, its compliance with
operating systems, accounting procedures and policies at all locations
of the Company. Based on the report of internal audit function,
process owners undertake corrective action in their respective areas
and thereby strengthen the controls. Significant audit observations and
recommendations along with corrective actions thereon are presented to
the Audit Committee of the Board.
10. Vigil Mechanism /Whistle Blower policy
The Company has a vigil mechanism named Fraud and Risk Management
Policy to deal with instance of fraud and mismanagement, if any.
In staying true to our values of Strength, Performance and Passion and
in line with our vision of being one of the most respected companies in
India, the Company is committed to the high standards of Corporate
Governance and stakeholder responsibility.
The Company has a Fraud and Risk Management Policy to deal with
instances of fraud and mismanagement, if any. The FRM Policy ensures
that strict confidentiality is maintained whilst dealing with concerns
and also that no discrimination will be meted out to any person for a
genuinely raised concern.
A high level Committee has been constituted which looks into the
complaints raised. The Committee reports to the Audit Committee and the
Board.
11. Director and key managerial personnel
(i) Cessation
(a) Mr. Arvindkumar D Sanghvi, Managing Director resigned from the
board w.e.f 13th November, 2014. Mr. Arvindkumar D Sanghvi joined the
Board in 22nd November, 1990 and on 1st June, 2014 was appointed as
Managing Director of the company.
The Board placed on record its appreciation for the valuable services
rendered by Mr. Arvindkumar D Sanghvi.
(b) Mr. Ashwin A Kataria, Whole Time Director resigned from the board
w.e.f. 27th December, 2014 and noted that he will continue as a
non-executive director of the Company.
(ii) Retirement by rotation
Directors Shri Ugamraj Hundia & Shri A.K.Kataria retires by rotation
and, being eligible, offer themselves for re-appointment. The Directors
recommend Shri Ugamraj Hundia & Shri. A.K.Kataria for re-appointment.
(iii) Appointment
Ms. Nipa P. Shah was appointed as an Additional Women Director of the
Company with effect from 30th March, 2015.
(iv) Appointment of Independent Director
Shri Ashish Shah, Shri Pawankumar Murarka, Shri Jitendra Mamtora, Shri
Chandresh Shah and Shri Amol Dalal were appointed as independent
directors under section 149 of the Companies Act, 2013 and clause 49 of
the listing agreement in the last A.G.M. held on 23rd September, 2014
to hold office for 5 consecutive years i.e. for a term up to the
conclusion of 28th Annual General Meeting of the company in the
calendar year 2019.
(v) Evalution of Board Performance
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Board has carried out an evaluation of its
own performance, the directors individually as well as the evaluation
of the working of its Audit, Nomination & Remuneration Committees. The
manner in which the evaluation has been carried out has been explained
in the Corporate Governance Report.
(vi) 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.
(vii) Appointment of Key Managerial personnel
During the period under review, Mr. Ramcharan Beriwala was appointed as
a Chief Financial Officer and Compliance Officer of the Company w.e.f.
1st June, 2014 and Mr. Ajay k Patel was appointed as a Company Secretary
of the company w.e.f 1st August, 2014.
12. Directors' Responsibility Statement
In terms of Section 134 (5) of the Companies Act, 2013, the directors,
to the best of their knowledge and ability state that:
(i) In the preparation of the annual accounts, the applicable
accounting standards have been followed.
(ii) The directors have selected such accounting policies and applied
them consistently and 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 at the end of the financial year and of the profit or loss of
the Company for the year under review.
(iii) The directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
(iv) The directors have prepared the annual accounts on a going concern
basis.
(v) The directors had laid down internal financial controls to be
followed by the company and that such internal financial controls are
adequate and were operating effectively.
(vi) The directors had devised proper system to ensure compliance with
the provisions of all applicable laws and that such system were
adequate and operating effectively.
13. Fixed Deposit
Your Company has not accepted any deposits within the meaning of
Section 73 of the Companies Act, 2013 and the Companies (Acceptance of
Deposits) Rules, 2014.
14. Related Party Transaction
All related party transactions that were entered into during the
financial year were on arm's length basis and were in the ordinary
course of the business. There are no materially significant related
party transactions made by the company with Promoters, Key Managerial
Personnel or other designated persons which may have potential conflict
with interest of the company at large. Accordingly the disclosure of
related party transaction as required under section 134(3)(h) of the
companies Act, 2013 in form AOC 2 is not applicable
15. Significant material orders passed by the Regulators / Courts.
There are no significant material orders passed by the Regulators /
Courts which would impact the going concern status of the Company and
its future operations.
16. Subsidiary Company
The Company does not have any subsidiary company.
17. Auditors
(i) Statutory Auditor
M/s. Mehta Lodha & Co., (Firm Registration No 106250W), Chartered
Accountants were appointed as Statutory Auditors of your Company at the
last Annual General Meeting held on 23rd September, 2014 for a term of
Three consecutive years. As per the provisions of Section 139 of the
Companies Act, 2013, the appointment of Auditors is required to be
ratified by Members at every Annual General Meeting.
The Report given by the Auditors on the financial statements of the
Company is part of the Annual Report. There has been no qualification,
reservation, adverse remark or disclaimer given by the Auditor in their
Report.
(ii) Secretarial Auditor
Pursuant to provisions of section 204 of the Companies Act, 2013 and
The Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 the company has appointed Shri Ashwin Shah, a Company
Secretaries in practice to undertake the Secretarial Audit of the
Company. The Secretarial Audit report is annexed herewith as "Annexure
A".
There has been no qualification, reservation, adverse remark or
disclaimer given by the Secretarial Auditor in their Report.
(iii) Cost Auditor
M/s N.D Birla & Co., Cost Accountants as the Cost Auditors of the
Company to conduct the audit of the cost records of the Company for the
financial year 2015-16.
18. Extract of Annual Return
The details forming part of the extract of the Annual Return in form
MGT-9 is annexed herewith as "Annexure B".
19. Prevention Of Insider Trading
The Company has adopted a Code of Conduct for Prevention of Insider
Trading with a view to regulate trading in securities by the Directors
and designated employees of the Company. The Code requires
pre-clearance for dealing in the Company's shares and prohibits the
purchase or sale of Company shares by the Directors and the designated
employees while in possession of unpublished price sensitive
information in relation to the Company and during the period when the
Trading Window is closed. The Board is responsible for implementation
of the Code.
20. Prevention Of Sexual Harassment At Workplace
As per the requirement of The Sexual Harassment of Women at Workplace
(Prevention, Prohibition & Redressal) Act, 2013 and rules made
thereunder, your Company has constituted Internal Complaints Committee
(ICC) which is responsible for redressal of complaints related to
sexual harassment. During the year under review, there were no
complaints pertaining to sexual harassment.
21. Transfer to Investor education and protection fund
The Company has transferred a sum Rs. 1,14,361/- during the financial
year 2014-15 to the investor education and protection fund established
by the central government, in Compliance with Section 124(5) of the
Companies Act 2013.
22. Energy conservation, technology absorption, foreign exchange
earnings and outgo.
As required under section 134 (3) (m) of the Companies Act, 2013 and
the rules made therein, the concerned particulars related to Energy
Conservation, Technology Absorption, Foreign Exchange Earnings and
Outgo are given, in "Annexure-C", which is attached here to and forms
part of the Directors' Report.
23. 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, will be provided
upon request. In terms of Section 136 of the Act, the reports and
accounts are being sent to the members and others entitled thereto,
excluding the information on employees' particulars which is available
for inspection by the members at the Registered office of the company
during business hours on working days of the company up to the date of
ensuing Annual General Meeting. If any member is interested in
inspecting the same, such member may write to the company secretary in
advance.
24. Acknowledgement
The directors extend their sincere thanks to the Bankers, Financial
Institutions, Central Government and State Government Authorities and
all associated with the company for the co-operation. The directors
also place on record the efforts made by the employees, workers and all
other associated with the company for making their organization
successful.
For & on behalf of the Board
Place: Ahmedabad A. K. Kataria
Date: 11th August, 2015 Chairman
Mar 31, 2014
Dear members,
The Directors have pleasure in presenting the 23rd Annual Report
together with the Audited Accounts of the company for the year ended
31st March 2014.
1. FINANCIAL HIGHLIGHTS
2013-2014 2012-13
(Rs. In Lacs) (Rs. In Lacs)
Income for the Year 32342.19 33595.70
Profit before interest, depreciation
and tax (PBIDT) 2232.26 2404.56
Less:
Financial Expenses 1357.62 1176.44
Depreciation 640.71 779.03
Profit/(Loss) before tax 233.93 449.09
Provision for taxation
(i) Current Income Tax, Wealth Tax 46.98 90.01
(ii) Deferred Tax 3.86 10.79
(iii) MAT Credit Entitlement (42.69) (26.70)
Profit after tax 225.78 374.99
Add/(Less): Prior Period Adjustment/
Provision of tax for earlier year 4.99 (6.41)
Profit available for appropriation 230.77 368.58
Appropriations
Opening Balance of Statement of
Profit & Loss 2248.39 2035.78
Less: Proposed Dividend on Equity shares 0.00 47.84
Less: Dividend Distribution Tax 0.00 8.13
Less: Transfer to General Reserve 0.00 100.00
Net Balance Carried forward to Balance
Sheet 2479.16 2248.39
2. DIVIDEND
Due to inadequacy of profit, directors have thought fit to conserve the
liquidity. The directors therefore do not recommend dividend for the
current year.
3. PERFORMANCE
During the year under review the income has decreased to Rs.32342.19
Lacs a decrease of 3.73% over previous year and Profit before Interest,
depreciation and tax (PBIDT) has also reduced up to 7.16 % over the
previous year.
The Company has started trading of Cold Rolled Stainless Strips/Coils
from November''13 in order to generate the revenue and to capture the
Local Market. The Company is hopeful that revenue generated through the
trading activity will maximize the profit which has shown a decrease in
the Current Year.
FUTURE PROSPECTS
Your Directors are pleased to inform you that the Company is planning
to upgrade existing machineries and installing new equipped ones. By
upgrading/installing these machineries the company will be able to
get more production & higher realization of the final product.
GREEN ENERGY
The Company has utilized green energy generated from its wind mills. As
against the electricity consumption of 8339960 units, the wind mills
installed by the company have generated 6588763 units.
4. INDUSTRIAL RELATIONS
Industrial relations remained cordial throughout the year. Your
Directors place on record their deep appreciation of the contribution
made by the employees at all levels.
Measures have been taken for Human Resources Development.
5. DIRECTORS
The company had, pursuant to the provisions of clause 49 of the Listing
Agreement entered into with stock exchange, appointed Mr. Ashish V
Shah, Mr. Pawan kumar R. Murarka, Mr. Jitendra U. Mamtora, Mr.
Chandresh V. Shah and Mr. Amol R. Dalal as Independent Directors of
the company. As per Section 149(4) of the Companies Act, 2013, which
came into effect from April 1, 2014, every listed public company is
required to have at least one-third of the total number of directors as
independent directors.
In accordance with the provisions of the section 149 of the companies
act, 2013, these Directors are being appointed as Independent Directors
to hold office as per their tenure of appointment mentioned in the
notice of forthcoming Annual General Meeting of the Company.
The Company has received declarations from all the independent
Directors of the Company confirming that they meet with the criteria of
independent as prescribed both under sub-section (6) of Section 149 of
the Companies Act, 2013 and under Clause 49 of the listing agreement
with the Stock Exchanges.
Pursuant to requirements of the Companies Act, 2013 and Article of
Association of the Company, Shri Ashwin Kataria, Shri Pukhraj Jain and
Shri Prakashraj Jain is liable to retire by rotation and being eligible
offer himself for re- appointment. The Board recommends the appointment
of the Director of the company.
Brief details of Directors proposed to be appointed/re-appointed as
required under clause 49 of the Listing Agreement are provided in the
Notice of Annual General Meeting forming part of this Annual Report.
6. CORPORATE GOVERNANCE REPORT
Pursuant to clause 49 of the Listing Agreement of the company with the
Stock Exchanges, the Management Discussion & Analysis, Report on
Corporate Governance and certification by the Managing Director (CEO)
confirming compliance by all the Board Members and Senior Management
personnel with Company''s Code of Conduct are made a part of the Annual
Report. A certificate from the Auditors of the Company regarding
compliance of conditions of Corporate Governance is given in Annexure -
I, which is attached hereto.
7. DIRECTOR''S RESPONSIBILITY STATEMENT
Pursuant to requirement under section 217(2AA) of the Companies Act,
1956, with respect to Director''s Responsibility Statement, it is hereby
confirmed.
a. that in the preparation of the Accounts for the financial year ended
on 31st March, 2014, the applicable standards have been followed along
with proper explanation relating to material departures.
b. that the Directors have selected such accounting policies and
applied them consistently and 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 at 31st March, 2014 and of the profit of
the company for the year ending on that date.
c. that 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. that the Directors have prepared the accounts for the financial year
ended on 31st March, 2014 on a going concern basis.
8. AUDITORS
M/s. Mehta Lodha & Co., Statutory Auditors of the Company, hold office
until the conclusion of the ensuing Annual General Meeting and are
eligible for reappointment.
In terms of the provisions of the Companies Act, 2013 and rules made
there under, M/s. Mehta Lodha & Co. can be appointed for a maximum
period of three years. Accordingly, Directors have appointed them for
the years respectively and now recommended their reappointment as
Statutory Auditors of the Company until the conclusion of the next
Annual General Meeting of the Company.
The Company has received the letter from the auditors that their
reappointment, if made, would be within the prescribed limits under
section 224(1B) of the Companies Act, 1956 and that they are not
disqualified for reappointment within the meaning of section 226 of the
said Act.
The Notes on annual accounts referred to it in the Auditor''s Report are
self-explanatory and do not call for any further comments.
9. COST AUDITOR
M/s. N.D. BIRLA & CO., Cost Accountants has been re-appointed as the
Cost Auditors to conduct the audit of the Cost Accounts maintained by
the company for the Financial Year ended on 31st March, 2015.
10. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
As required under section 217 (1) (e) of the Companies Act, 1956 and
the rules made therein, the concerned particulars related to Energy
Conservation, Technology Absorption, Foreign Exchange Earnings and
Outgo are given, in Annexure-II, which is attached here to and forms
part of the Director''s Report.
11. PARTICULARS OF EMPLOYEES
Particulars of employees in accordance with the provisions of section
217(2A) of the Companies Act, 1956 read with Companies (particulars of
Employees) Rules, 1975 as amended are not given as none of the
employees qualify for such disclosure.
12. ACKNOWLEDGEMENT
The directors extend their sincere thanks to the Bankers, Financial
Institutions, Central Government and State Government Authorities and
all associated with the company for the co-operation.
The directors also place on record the efforts made by the employees,
workers and all other associated with the company for making their
organization successful.
For and on behalf of the Board
Place: Ahmedabad A. K. Kataria
Date: 29th May, 2014 Chairman
Mar 31, 2013
To, The Members,
The Directors have pleasure in presenting the 22nd Annual Report
together with the Audited Accounts of the company for the year ended
31st March 2013.
1. FINANCIAL HIGHLIGHTS :-
2012-2013 2011-12
(Rs. In Lacs) (Rs. In Lacs)
Income for the Year 33595.70 32960.15
Profit before interest,
depreciation and tax (PBIDT) 2404.56 2365.37
Less:
Financial Expenses 1176.44 1046.51
Depreciation 779.03 662.01
Profit / (Loss) before tax 449.09 656.85
Provision for taxation
(i) Current Income Tax, Wealth Tax 90.01 131.53
(ii) Deferred Tax 10.79 62.94
(iii) MAT Credit Entitlement (26.70) (41.21)
Profit after tax 374.99 503.59
Add / (Less): Prior Period Adjustment (6.41) 3.18
Profit available for appropriation 368.58 506.77
Appropriations
Opening Balance of
Statement of Profit & Loss 2035.78 1698.51
Less : Proposed Dividend on Equity shares 47.84 59.80
Less : Dividend Distribution Tax 8.13 9.70
Less : Transfer to General Reserve 100.00 100.00
Net Balance Carried forward to
Balance Sheet. 2248.39 2035.78
2. DIVIDEND :-
The directors recommended a dividend of 8% @ Rs. 0.80 per equity share.
This is however subject to the approval of shareholders at the Annual
General Meeting.
3. PERFORMANCE :-
During the year under review the income has gone upto Rs. 33595.70 Lacs,
an increase of 1.93% over previous year and Profit before Interest,
depreciation and tax (PBIDT) has also gone up to 1.66 % over the
previous year.
FUTURE PROSPECTS
Your Directors are pleased to inform you that the Company is planning
to upgrade existing machineries and installing new equipped ones. By
upgrading / installing these machineries the company will be able to
get more production & higher realization of the final product.
GREEN ENERGY
The Company has utilized green energy generated from its wind mills. As
against the electricity consumption of 9187520 units, the wind mills
installed by the company have generated 4432820 units.
4. INDUSTRIAL RELATIONS :-
Industrial relations remained cordial throughout the year. Your
Directors place on record their deep appreciation of the contribution
made by the employees at all levels.
Measures have been taken for Human Resources Development.
5. DIRECTORS :-
Shri A.K Kataria, Shri Pawankumar Murarka and Shri Chandresh Shah
retire from the Board by rotation and being eligible, offer themselves
for re-appointment.
6. CORPORATE GOVERNANCE REPORT :-
Pursuant to clause 49 of the Listing Agreement of the company with the
Stock Exchanges, the Management Discussion & Analysis, Report on
Corporate Governance and certification by the Managing Director (CEO)
confirming compliance by all the Board Members and Senior Management
personnel with Company''s Code of Conduct are made a part of the Annual
Report. A certificate from the Auditors of the Company regarding
compliance of conditions of Corporate Governance is given in Annexure -
I, which is attached hereto.
7. DIRECTOR''S RESPONSIBILITY STATEMENT :- Pursuant to requirement
under section 217(2AA) of the Companies Act, 1956, with respect to
Director''s Responsibility Statement, it is hereby confirmed :
a. that in the preparation of the Accounts for the financial year
ended on 31st March, 2013, the applicable standards have been followed
along with proper explanation relating to material departures;
b. that the Directors have selected such accounting policies and
applied them consistently and 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 at 31st March 2013 and of the profit of
the company for the year ending on that date;
c. that 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. that the Directors have prepared the accounts for the financial
year ended on 31st March, 2013 on a going concern basis.
8. AUDITORS :-
M/s Mehta Lodha & Co., Chartered Accountants, retire as Auditor of the
company and being eligible, offer themselves for re-appointment. A
certificate is obtained from them that, their re-appointment, if made,
will be within the limit prescribed under section 224(1B) of the
Companies Act, 1956.
9. COST AUDITOR :-
M/s. N.D. BIRLA & CO., Cost Accountants has been re-appointed as the
Cost Auditors to conduct the audit of the Cost Accounts maintained by
the company for the Financial Year ended on 31st March 2014.
10. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO :-
As required under section 217 (1) (e) of the Companies Act,1956 and the
rules made therein, the concerned particulars related to Energy
Conservation, Technology Absorption, Foreign Exchange Earnings and
Outgo are given, in Annexure-II, which is attached here to and forms
part of the Director''s Report.
11. PARTICULARS OF EMPLOYEES :-
Particulars of employees in accordance with the provisions of section
217(2A) of the Companies Act, 1956 read with Companies (Particulars of
Employees) Rules, 1975 as amended are not given as none of the
employees qualify for such disclosure.
12. ACKNOWLEDGEMENT :-
The directors extend their sincere thanks to the Bankers, Financial
Institutions, Central Government and State Government Authorities and
all associated with the company for the co-operation.
The directors also place on record the efforts made by the employees,
workers and all other associated with the company for making their
organization successful.
For and on behalf of the Board
Place : Ahmedabad A. K. Kataria
Date : 28th May 2013 Chairman
Mar 31, 2012
The Directors have pleasure in presenting the 21st Annual Report
together with the Audited Accounts of the company for the year ended
31st March 2012.
1) FINANCIAL HIGHLIGHTS
2011-2012 2010-2011
(Rs. In Lacs) (Rs. In Lacs)
Income for the Year 32960.15 28827.07
Profit before interest,
depreciation and tax (PBIDT) 2352.93 2228.02
Less:
Financial Expenses 1034.07 849.51
Depreciation 662.01 595.87
Profit / (Loss) before tax 656.85 782.64
Provision for taxation
(i) Current Income Tax, Wealth Tax 131.53 194.04
(ii) Deferred Tax 62.94 (66.43)
(iii) MAT Credit Entitlement (41.21) 0.00
Profit after tax 503.59 655.03
Add / (Less): Prior Period Adjustment 3.18 0.42
Profit available for appropriation 506.77 655.45
Appropriations
Opening Balance of Profit & Loss Account 1698.51 1212.56
Less: Proposed Dividend on Equity shares 59.80 59.80
Less: Tax on dividend 9.70 9.70
Less: General Reserve 100.00 100.00
Net Balance Carried forward to
Balance Sheet. 2035.78 1698.51
2. DIVIDEND
The directors recommended a dividend of 10% @ Rs. 1/- per equity share.
This is however subject to the approval of shareholders at the Annual
General Meeting.
3. PERFORMANCE
During the year under review the turnover has gone upto Rs. 32960.15 Lacs
an increase of 14.34% over previous year and Profit before Interest,
depreciation and tax (PBIDT) has also gone up 5.60 % over the previous
year.
FUTURE PROSPECTS
(a) Your Directors are pleased to inform you that the Company is
planning to upgrade existing machineries and installing new equipped
ones. By upgrading / installing these machineries the Company will be
able to get more production and higher realisation of the final
product.
(b)Your Directors are pleased to inform you that the Company is
planning to install 1 No. Wind Turbine Generator (Wind Mill) 2.10 MW
which will be commissioned and will come into operation in the month of
September / October1 2012. By installing this Wind Mill the company
will be able to fulfill their electricity Consumption from their own
Generation.
GREEN ENERGY
The Company has utilized green energy generated from its wind mills. As
against the electricity consumption of 9779962 units, the wind mills
installed by the company have generated 4273411 units.
4. INDUSTRIAL RELATIONS :-
Industrial relations remained cordial throughout the year. Your
Directors place on record their deep appreciation of the contribution
made by the employees at all levels.
Measures have been taken for Human Resources Development.
5. DIRECTORS
Shri Ashwin Kataria, Shri Ugamraj Hundia and Shri Amol Dalai retire
from the Board by rotation and being eligible, offer themselves for
re-appointment.
6. CORPORATE GOVERNANCE REPORT
Pursuant to clause 49 of the Listing Agreement of the company with the
Stock Exchanges, the Management Discussion & Analysis, Report on
Corporate Governance and certification by the Managing Director (CEO)
confirming compliance by all the Board Members and Senior Management
personnel with Company's Code of Conduct are made a part of the Annual
Report. A certificate from Auditors, of the Company regarding
compliance of conditions of Corporate Governance is given in
Annexure-I, which is attached hereto.
7. DIRECTOR'S RESPONSIBILITY STATEMENT
Pursuant to requirement under section 217(2AA) of the Companies Act,
1956, with respect to Director's Responsibility Statement, it is hereby
confirmed :
a. that in the preparation of the Account for the financial year ended
31st March, 2012 the applicable standards have been followed along with
proper explanation relating to material departures ;
b. that the Directors have selected such accounting policies and
applied them consistently and 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 at 31st March 2012 and of the profit of
the company for the year ending on that date ;
c. that 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. that the Directors have prepared the accounts for the financial
year ended on 31st March, 2012 on a going concern basis.
8. AUDITORS
M/s Mehta Lodha & Co. Chartered Accountants, retire as an Auditor of
the company and being eligible, offer themselves for re-appointment. A
certificate is obtained from them that their re-appointment, if made,
will be within the limit prescribed under section 224(1B) of the
Companies Act, 1956.
9. COST AUDITOR
The Ministry of Corporate Affairs has introduced The Companies (Cost
Audit Report) Rules, 2011 vide its notification No. GSR430 CE dated
June 3, 2011 and the Cost Audit Order No. 52/26/CAB/2010 dated January
24, 2012. These rules makes it mandatory for Specified Industries to
appoint Cost Auditor.
M/s N. D. BIRLA & CO. has been appointed as the Cost Auditor for the
Financial Year 2011-12 and 2012-13, subject to the approval of the
Central Government.
10. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO.
As required under section 217 (1) (e) of the Companies Act,1956 and the
rules made therein, the concerned particulars relating to Energy
conservation, Technology Absorption, Foreign Exchange Earnings and
outgo are given in Annexure-II, which is attached hereto and forms part
of the Director's Report.
11. PARTICULARS OF EMPLOYEES
Particulars of employees in accordance with the provisions of section
217(2A) of the Companies Act, 1956 read with Companies (particulars of
Employees) Rules, 1975 as amended are not given as none of the
employees qualify for such disclosure.
12. ACKNOWLEDGEMENT
The directors extend their sincere thanks to the Bankers, Financial
Institutions, Central Government and State Government Authorities and
all associated with the company for the co-operation.
The directors also place on record the efforts made by the employees,
workers and all other associated with the company for making their
organization successful.
For and on behalf of the Board
Place: Ahmedabad A. K. Kataria
Date: 29th May 2012 Chairman
Mar 31, 2010
The Directors have pleasure in presenting the 19th Annual Report
together with the Audited Accounts of the company for the year ended
31st March 2010.
1) FINANCIAL HIGHLIGHTS :-
2009-2010 2008-2009
(Rs. In Lacs) (Rs. In Lacs)
Income for the Year 22781.97 13207.43
Profit before interest,
depreciation and tax (PBIDT) 2008.88 765.80
Less:
Financial Expenses 676.67 611.36
Depreciation 620.82 416.34
Profit / (Loss) before tax 711.39 (261.90)
Provision for taxation
(i) Current Income Tax, Wealth Tax,
Fringe Benefit Tax 121.05 2.03
(ii) Deferred Tax (37.29) (48.38)
Profit after tax 627.63 (215.55)
Add / (Less): Prior Period Adjustment (0.07) (5.68)
Profit available for appropriation 627.56 (221.23)
Appropriations
Opening Balance of Profit &
Loss Account 743.07 964.30
Less: Proposed Dividend on Equity shares 49.80 0
Less: Tax on dividend 8.27 0
Less: General Reserve 100.00 0
Net Balance Carried forward to
Balance Sheet. 1212.56 743.07
2. DIVIDEND :-
The directors recommended a dividend of 10% @ Rs. 1/-
per equity shares. This is however subject to the approval of
shareholders at the Annual General Meeting.
3. PERFORMANCE :-
During the year under review the turn over has gone
upto Rs.22781.97 Lacs an increase of 72.49% over previous year. During
the Financial year under review the company been able to pull itself
out of the blues of global meltdown of the previous financial year and
has been able to achieve profit before tax Rs. 711.39 Lacs in Under
Reviewed Financial Year against the Loss incurred in Previous Year.
FUTURE PROSPECTS
Your Directors are pleased to inform you that the Company has already
placed orders for 2 Nos. of Bright Annealing Finish Lines which will be
commissioned and will come into operation by the end of the financial
year 2010-11, and benefits of the same will be derived in the next
financial year. By installing these lines the company will be able to
get higher realization of the final product.
GREEN ENERGY
The Company has utilized green energy generated from its wind mills. As
against the electricity consumption of 8514916 units, the wind mill
installed by the company have generated 5767263 units.
4. MOBILISATION OF FUNDS :- During the year under review the Company
has issued 12,00,000 equity shares to strategic investors and 10,00,000
convertible warrants to promoters and promoters group at a price of Rs.
51/- for funding the ongoing capital expenditure.
5. INDUSTRIAL RELATIONS :- Industrial relations remained cordial
throughout the year. Your Directors place on record their deep
appreciation of the contribution made by the employees at all levels.
Measures have been taken for Human Resources Development.
6. DIRECTORS :- Shri Amol Dalal, Shri Chandresh Shah and Shri Babulal
Jain retire from the Board by rotation and being eligible, offer
themselves for re-appointment.
7. CORPORATE GOVERNANCE REPORT :- Pursuant to clause 49 of the Listing
Agreement of the company with the Stock Exchanges, the Management
Discussion & Analysis, Report on Corporate Governance, and
certification by the Managing Director (CEO) confirming compliance by
all the Board Members and Senior Management personnel with Companys
Code of Conduct are made a part of the Annual Report. A certificate
from Auditors, of the Company regarding compliance of conditions of
Corporate Governance is given in Annexure, which is attached hereto.
8. COMPLIANCE CERTIFICATE:-
Pursuant to the requirement under section 383A of the Companies Act,
1956 a compliance certificate from Mr. Ashwin Shah Practicing Company
Secretary is attached hereto.
9. DIRECTORS RESPONSIBILITY STATEMENT :-
Pursuant to requirement under section 217(2AA) of the Companies Act,
1956, with respect to Directors Responsibility Statement, it is hereby
confirmed :
a. that in the preparation of the Account for the financial year ended
31st March,2010 the applicable standards have been followed along with
proper explanation relating to material departures ;
b. that the Directors have selected such accounting policies and
applied them consistently and 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 at 31st March 2010 and of the profit of
the company for the year ending on that date ;
c. that 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. that the Directors have prepared the accounts for the financial
year ended on 31st March, 2010 on a going concern basis.
10. AUDITORS
M/s Mehta Lodha & Co. Chartered Accountants, retire as Auditor of the
company and being eligible, offer themselves for re-appointment. A
certificate is obtained from them that their re-appointment, if made,
will be within the limit prescribed under section 224(1B) of the
Companies Act, 1956.
11. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO.
As required under section 217 (1) (e) of the Companies Act,1956 and the
rules made therein, the concerned particulars relating to Energy
conservation, Technology Absorption, Foreign Exchange Earning and outgo
are given, in Annexure-II, which is attached hereto and forms part of
the Directors Report.
12. LISTING
The equity shares of the Company were listed on Ahmedabad Stock
Exchange Ltd and Bombay Stock Exchange Ltd. As per Regulation 6 (a) of
the Securities and Exchange Board of India (Delisting of Securities)
Regulation 2009 the Company may delist its equity shares from one or
more stock exchanges if their shares remain listed on any stock
exchange having nation wide trading terminal i.e. Bombay Stock Exchange
Ltd or National Stock Exchange Ltd. There
was no trading activity in the Ahmedabad Stock Exchange Ltd. It
therefore did not serve the purpose in continuing the Listing of the
equity shares of the Company in Ahmedabad Stock Exchange Ltd.
Accordingly the Company delisted its equity shares form Ahmedabad Stock
Exchange Ltd. w.e.f 31st March 2010. The equity shares of the Company
remain listed on Bombay Stock Exchange Ltd. The Company has paid the
listing and other payable fees for 2010-11.
13. PARTICULARS OF EMPLOYEES
Particulars of employees in accordance with the provisions of section
217(2A) of the Companies Act, 1956 read with Companies (particulars of
Employees) Rules, 1975 as amended are not given as none of the
employees quality for such disclosure.
14. ACKNOWLEDGEMENT
The directors extend their sincere thanks to the Bankers, Financial
Institutions, Central Government and State Government Authorities and
all associated with the company for the co-operation.
The directors also place on record the efforts made by the employees,
workers and all other associated with the company for making their
organization successful.
For and on behalf of the Board
Place: Ahmedabad A. K. Kataria
Date : 29th May, 2010 Chairman
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