Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting their 36th Annual Report on
the business and operations of the Company and the Accounts for the
Financial Year Ended March 31st, 2015.
1. Financial Summary or Highlights/Performance of the Company
The financial highlights are as follows (based on the stand alone
financial statements of the company.)
Amount in Rupees
Particulars 2014-15 2013-14
Gross Income 94,09,58,397 1,06,58,33,066
Profit Before Interest,
Depreciation & 7,21,35,328 5,79,26,508
Tax
Financial Expenses 1,02,84,848 1,45,65,245
Profit Before Depreciation & Tax 6,18,50,480 4,33,61,263
Provision for Depreciation 30,33,302 27,32,446
Profit Before Tax 5,88,17,178 4,06,28,817
Provision for Tax 1,08,60,312 49,97,629
Profit After Tax 4,79,56,866 3,56,31,188
Balance of Profit brought forward (2,92,73,010) (6,49,04,198)
Balance available for appropriation 1,86,83,856 (2,92,73,010)
Proposed Dividend on Equity Shares Nil Nil
Tax on proposed Dividend Nil Nil
Transfer to General Reserve Nil Nil
Surplus carried to Balance Sheet 1,86,83,856 (2,92,73,010)
Note: the figure shown as surplus carried forward to Balance Sheet
subject to depreciation adjustment as per companies' act, 2013.
Details for the same has been furnished in explanatory Note No. 4.3 of
Financial Statements.
2. Brief description of the Company's working during the Year/State of
Company's affairs
The highlights of the Company's performance are as under:
* Revenue from operations decreased by 10% to Rs.9397.20 lakhs.
* PBDIT increased to Rs.721.35 Lakhs
* Profit before Tax increased to Rs.588.17 Lakhs.
* Net Profit increased to Rs. 479.57 Lakhs.
The Revenue from operations of the Company for year ended March 31,
2015 decreased by 10% to Rs.9397.20 Lakhs as compared to previous
year. The decline in turnover reflects a sharp fall in Steel prices
during the second half of the year. However strong operating
performance from the Tube business performance led to higher operating
profits. Profit before Exceptional items and Tax increased from
Rs.149.23 Lakhs to Rs.279.63 Lakhs. Profit after Tax was higher at
Rs.479.57 lakhs as against Rs.356.31 Lakhs in the previous year.
The Financial Year 2014-15 has been a very successful and important
year for the company. The company's square and rectangular pipe
division delivered record earnings in this year even though collapse
of steel prices unsettled in the market. During the year, the
utilization of the capacity was 70% of the installed capacity. The
company was able to capitalize on the market conditions through its
operational excellence, higher efficiency and well executed strategies
for raw material procuring and selling finished goods.
The Company contributes to the state exchequer primarily by way of
payment of taxes and duties to various government agencies. During the
year, a total of Rs. 1,08,60,310 was paid in the form of various taxes
and duties.
3. Dividend
No dividend has been declared this year. Company was previously a sick
unit and slowly it has started recovering. So, the directors decided
to use the profit for further growth of the company.
4. Reserves
During the year under review the General Reserves of the Company stood
at Rs. 1,92,47,900/- after transfer of surplus funds during the year.
5. Directors and Key Managerial Personnel
Mr. Mahaveer Singh(DIN-) 01907248 and Mr. Vikram Singh Rathore (DIN-)
01601165 Directors retire by rotation atthe forthcoming Annual General
Meeting and being eligible, offer themselves for
reappointment._Details of both Directors have been given in
Explanatory Statement of Notice.
During the Financial Year 2014-15, Mr. Gopal Singh (DIN : 01001134),
and Mrs. Seshadhri Rajalakshmi (DIN 0692786) have been appointed as an
Independent Directors for term of 3 years and 5 years respectively. No
Director has been retired during this year. Appointment letters of
independent directors can be followed by our web-link
www.tamilnadusteeltubesltd.com.
Also, Mr. Kamala Lochan Ray (ACS - 34369) and Mr. Narasimhan Sudharsan
have been appointed as Company Secretary and Chief Financial Officer
with effect from 04.07.2014 and 01.10.2014 respectively.
6. Particulars of Employees
Pursuant to rule 5(1) the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, statement of particulars of
employees is given in Annexure- IV; whereas Rule 5(2) is not
applicable as no such employee is appointed this financial year.
7. Meetings
A calendar of Meetings is prepared and circulated in advance to the
Directors. During the year Seven Board Meetings and five 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.
8. Board Evaluation
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Board has carried out an annual performance
evaluation of its own performance, the directors individually as well
as the evaluation of the working of its Audit, Nomination &
Remuneration and Compliance Committees. The manner in which the
evaluation has been carried out has been explained in the Corporate
Governance Report.
9. Declaration by an Independent Director(s) and Re-appointment.
A declaration by an Independent Director(s) that he/she meets the
criteria of independence as provided in sub-section (6) of Section 149
of the Companies Act, 2013 -Declarations are attached as Annexure.
Mrs. Seshadhri Rajalakshmi, has been appointed as an Independent
Director for Five Years and Mr Gopal Singh, has been appointed as an
Independent Director ("Small Shareholders' Director") for a period
of three years. The letters of Appointment for Independent Directors,
setting of terms and conditions of appointment of Independent
Directors is available for inspection at the Regd. Office of the
Company during business hours on any working day and is also available
on the website of the Company www.tamilnadusteeltubesltd.com
10. 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
enclosed in Annexure-IV of the Directors Report.
Managerial Remuneration:
A) Details of the ratio of the remuneration of each director to the
median employees' remuneration and other details as required
pursuant to Rule 5(1) of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 is attached to this report in
Annexure
B) Details of the every employee of the Company as required pursuant
to 5(2) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 is not applicable to the Company, as no such
employee has been appointed.
C) The following disclosures are mentioned in the Board of
Director's Report under the heading"Corporate Governance",
attached to the financial statement:Â
(i) All elements of remuneration package such as salary, benefits,
bonuses, stock options, pension, etc., of all the Directors;
ii) Details of fixed component and performance linked incentives along
with the performance criteria;
11. Details of Subsidiary/Joint Ventures/Associate Companies
Pursuant to sub-section (3) of section 129 of the Act, the statement
containing the salient feature of the financial statement of a
company's subsidiary or subsidiaries, associate company or companies
and joint venture or ventures - is not applicable to the Company as
the Company has no subsidiary or joint venture
12. Auditors
The Auditors, M/s Abhay Jain & Co.,( FRN N0.-OOOOO8S) Chartered
Accountants, Chennai retire at the ensuing Annual General Meeting and,
being eligible, offer themselves for reappointment for a period of two
years from the conclusion of this Annual General Meeting [AGM] till
the conclusion of 38th AGM.
13. Auditors' Report
The Auditors' Report does not contain any qualification. Notes to
Accounts and Auditors remarks in their report are self-explanatory and
do not call for any further comments.
14. Disclosure about Cost Audit
As per the Cost Audit Orders, Cost Audit is applicable to the
Company's Steel Product business of the Company for the FY 2015-16.
In view of the same and in terms of the provisions of Section 148 and
all other applicable provisions of the Companies Act, 2013, read with
the Companies (Audit and Auditors) Rules, 2014, CMA Latha Venkatesh
(Firm Regn. No. 101017, M. No.27953) Cost Accountant, has been
appointed as Cost Auditor to conduct the audit of cost records of the
company for the Financial Year 2015-16. The Remuneration proposed to
be paid to her requires ratification of the shareholders of the
Company. In view of this, the Company's ratification for payment of
remuneration to Cost Auditor is being sought at the ensuing AGM.
15. Secretarial Audit Report
In terms of Section 204 of the Act and Rules made there under, Mr. V.S
Sowrirajan ( FCS:2368 / CP No. 6482), Practicing Company Secretary,
has been appointed as Secretarial Auditors of the Company. The Report
("MR-3") of the Secretarial Auditors is enclosed as Annexure to this
report. The report is self-explanatory and do not call for any further
comments.
16. Internal Audit & Controls
The Company continues to engage Mr Gaurav Jain, (Membership No:
235410.), Chartered Accountant, as its Internal Auditor. His scope of
work includes review of processes for safeguarding the assets of the
Company, review of operational efficiency, effectiveness of systems
and processes, and assessing the internal control strengths in all
areas. Internal Auditors findings are discussed with the process
owners and suitable corrective actions taken as per the directions of
Audit Committee on an"ongoing basis" to improve efficiency in
operations.
17. Vigil Mechanism :
In pursuant to the provisions of section 177(9) & (10) of the
Companies Act, 2013, a Vigil Mechanism for directors and employees to
report genuine concerns has been established. The Vigil Mechanism
Policy has been uploaded on the website of the Company at
www.tamilnadusteeltubesltd.com The name of compliance officer : Mr M T
Elumalai, e-mail id: [email protected]
18. Risk Management Policy
During the year, your Directors have constituted a Risk Management
Committee which has been entrusted with the responsibility to assist
the Board in (a) Overseeing and approving the Company's enterprise
wide risk management framework; and (b) Overseeing that all the risks
that the organization faces such as strategic, financial, credit,
market, liquidity, security, property, IT, legal, regulatory,
reputational and other risks have been identified & assessed. The Risk
Management Policy was reviewed and approved by the Committee.
The Company manages monitors and reports on the principal risks and
uncertainties that can impact its ability to achieve its strategic
objectives. The Company's management systems, organizational
structures, processes, standards, code of conduct and behaviours
Management System that governs how the business of the Company and
manages associated risks.
The Company has introduced several improvements to Risk Management,
Internal Controls Management and Assurance Frameworks and processes to
drive a common integrated view of risks, optimal risk mitigation
responses and efficient management of internal control and assurance
activities.
19. Extract of Annual Return
As required pursuant to section 92(3) of the Companies Act, 2013 and
rule 12(1) of the Companies (Management and Administration) Rules,
2014, an extract of annual return in MGT 9 as a part of this Annual
Report is attached as ANNEXURE
20. Details in respect of adequacy of Internal financial controls with
reference to the Financial Statements.
The Company has in place adequate internal financial controls with
reference to financial statements. During the year, such controls were
tested and no reportable material weakness in the design or operation
was observed. Audit committee, risk management committee and
independent directors committee have been constituted to observe
internal control system.
21. Deposits:
The company has not accepted any Deposit from the public falling
within the ambit of Sec.73 of the Company Act 2013 read with the
Companies (Acceptance of Deposits) Rules, 2014.
23. Particulars of contracts or arrangements with related parties:
The particulars of every contract or arrangements entered into by the
Company with related parties referred to in sub-section (1) of section
188 of the Companies Act, 2013 including certain arm's length
transactions under third proviso thereto has been disclosed in Form
No. AOC-2. as Annexure .
24. Corporate Governance Certificate
The Compliance certificate from the Auditors regarding compliance of
conditions of corporate governance as stipulated in Clause 49 of the
Listing agreement is annexed with the report.
25. MANAGEMENT DISCUSSION AND ANALYSIS
The global economy witnessed a marked slowdown emerging economies as
well as developed countries showed less than anticipated growth rate.
In Domestic markets macroeconomic conditions showed signs of
improvements, there was marginal increase in the GDP growth, with
inflation falling within satisfactory levels, improved market
sentiment post elections and Rupee remaining stable throughout the
year. However, the South Indian markets showed very slow sign of
progress especially in the Steel Products industry. The economic
scenario was quite challenging last year however the Company achieved
better than expected results.
Economic scenario and outlook
The growth in 2014-15 decreased as compared to the year 2013-14. The
whole sale and consumable price inflation has also been decreased
compared to the last year price on the back of the strong base effect.
Contrary to the expectations, the steel pipe growth has been decreased
during the year. The local economic growth appears to have bottomed
out and gradual increase in economic activity is expected in 2015-16.
The medium term to long term growth prospects look positive in view of
the government determination to bring in reforms. For the year
2015-16, the economic is expected to grow at a higher rate than in
2014-15. The long term prospects for the economy are optimistic.
Steel pipe industry outlook and opportunity
The overall steel pipe demand is estimated to grow at the rate of 6%
in 2015 the consumption growth may go beyond 6% if investment is made
in the infrastructure segments, with the gradual reduction in the
fiscal deficit and consumer price index. The company's continued
focus on cost reduction, its trust on increasing the sale of its
products and various other customer excellence initiatives should help
in presenting improved performances.
Market development
The domestic sales in the southern states in 2014-15 increased by 1.5%
as compared to last year. The company continues to focus on the
individual consumer segment for higher profitability.
Square Pipe Business:
TNT's Square Pipe business continued on its growth trajectory with
revenues and increasing despite a challenging price environment.
Direct Business
TNT Direct business grew profitably, during the year 2014-15, by
achieving Profits before Depreciation, Finance Cost and Tax Expenses
(PBDIT) of Rs. 721,35,328 an increase of 19.70 % as against the
previous financial year.
Finance
Cash and cash equivalent as on 31st March 2015 is Rs. 1,16,63,296. The
company continues to focus on judicious management of its working
capital. Receivables, inventories and other working capital parameters
were kept under strict check through continuous monitoring.
Costs
During the Financial Year 2014-15, the company witnessed its upward
movement, in the overall costs structure and the company continued to
focus on the cost improvements through its excellent programmers.
Selling price
The company is selling its products at a competitive prices keeping in
mind the need to overcome the present scenario.
Sustainable development
The sustainability has been deeply embodied into the company's
business and has become an integral part of its decision making
process while considering social, economic and environmental
dimensions. During the year 2014-15 a sustainability program was
developed to attain (1) reduction of emission (2) reduction in power
consumption (3) reduction in water consumption (4) to include CSR
programs . The company has obtained the certificate from the Pollution
Control Board and other departments in accordance with the statutory
requirements.
26. PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,
PROHIBITION AND REDRESSAL) ACT, 2013
In order to prevent sexual harassment of women at work place a new act
The Sexual Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013 has been notified on 9th December, 2013.
Under the said Act every company is required to set up an Internal
Complaints Committee to look into complaints relating to sexual
harassment at work place of any women employee.
As per the requirement of The Sexual Harassment of Women at Workplace
(Prevention, Prohibition, & Redressal) Act, 2013 and Rules made there
under, your Company has constituted a Committee viz."Health, Safety,
Environmental and Women Protection Committee"chaired by Mrs Seshadhri
Rajalakshmi, Director of the Company.
*During the year Company has not received any complaint of harassment.
27. Conservation of Energy. Technology Absorption and Foreign Exchange
Earnings & outgo
The particulars relating to conservation of energy, technology
absorption, foreign exchange earnings and outgo, as required to be
disclosed under the Act, are provided in Annexure to this Report.
28. Corporate Social Responsibility (CSR)
"The Corporate Social Responsibility and Governance Committee"
(CSR&G Committee) has been formulated and recommended to the Board, a
Corporate Social Responsibility Policy (CSR Policy) indicating the
activities to be undertaken by the Company, which has been approved by
the Board. Though it is not mandatory for this company during the
Financial Year 2014-15, under Section 135, Rule 9 of Companies
(Corporate Social Responsibility Policy) of the Companies Act, 2013,
the company has initiated steps on a voluntary basis. The CSR Policy
may be accessed on the Company's website at the link:
www.tamilnadusteeltubesltd.com
The key philosophy of all CSR initiatives of the Company is guided by
three core commitments of Scale, Impact and Sustainability.
The Company has identified areas of engagement which are as under:
* Education: Access to quality education, training and skill
enhancement.
* Environment: Environmental sustainability, ecological balance,
conservation of natural resources. The Company would also undertake
other need based initiatives as may be decided from time to time.
*During the year, the Company has not spent any amount on this
account.
29. Human Resources
Your Company treats its"human resources" as one of its most
important assets.
Many initiatives have been taken to support business through
organizational efficiency. Process change support and various
employees engagement programs which helped the organization to achieve
higher productivity levels. A significant effort has also been
undertaken, to develop leadership as well as technical / functional
capabilities in order to meet future talent requirements.
Media and Entertainment
The Company has done advertisement in Newspapers and wall posters,
Banners and website.
30. Directors' Responsibility Statement
The Directors' Responsibility Statement referred to in clause (c) of
sub-section (3) of Section 134 of the Companies Act, 2013, state that;
a) in the preparation of the annual accounts for the year ended March
31, 2015, the applicable accounting standards read with requirements
set out under Schedule III to the Act, have been followed and there
are no material departures from the same;
b) the Directors have selected such accounting policies and applied
them consistently and made judgements and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company as at March 31,2015 and of the profit of the
Company for the year ended on that date;
c) the Directors 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) the Directors have prepared the annual accounts on a 'going
concern' basis;
e) the Directors have laid down internal financial controls to be
followed by the Company and that such internal financial controls are
adequate and are operating effectively; and
f) the Directors have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems are
adequate and operating effectively.
31. Transfer of Amounts to Investor Education and Protection Fund
Your Company did not have any funds lying unpaid or unclaimed for a
period of seven years. Therefore there were no funds which were
required to be transferred to Investor Education and Protection Fund
(IEPF).
3 2. LISTING WITH STOCK EXCHANGES:
The Company confirms that it has paid the Annual Listing Fees for the
year 2015-2016 to Bombay Stock Exchange Ltd. (BSE) and Ahmedabad Stock
Exchange Ltd. (ASE) where the Company's Shares are listed.
33. Acknowledgements
Your Directors would like to express their sincere appreciation for
the assistance and cooperation received from the financial
institutions, banks, Government authorities, customers, Vendors,
Dealers, and members during the year under review. Your Directors also
wish to place on record their deep sense of appreciation for the
committed services by the Company's executives, staff and workers.
For and on behalf of the Board
Place: CHENNAI
Date: 01.08.2015 VIKRAM SINGH RATHORE RAKESH GOYAL
Director Managing Director
(DIN :01601165) (DIN : 00990310)
Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting the 35th Annual Report of
the Company together with audited accounts for the Year ended 31st
March 2014.
FINANCIAL REVIEW : Your Company increased production of Steel Pipes and
achieved saleable Pipes representing 50% of Capacity Utilization. With
the help of various management initiatives taken, your Company reached
a Turn Over of Rs. 106.58 Crores during the financial year 2013-14
which is higher by 3% over the last year.
(Rupees in Lacs)
This Year Previous Year
RESULTS 2013-2014 2012-2013
Revenue from Operations & other Income 10,658.33 10,360.70
Cost of Material consumed 9,671.41 9,187.33
Changes in inventories of Finished Goods (50.41) 15.37
Payment to Employees 169.03 164.10
Financial Expenses 145.65 117.22
Depreciation 27.32 20.03
Amortization Expenses - -
Other Expenses 546.09 523.52
Exceptional items (257.06) -
Extraordinary items - -
Profit before Tax 406.29 332.53
Current Tax 47.80 115.10
Deferred Tax 2.18 1.55
Profit/(Loss) for the period 356.31 215.87
RESULTS OF OPERATIONS : Operating in a volatile and uncertain
environment, the company has demonstrated resilience of the business
module. The Company''s best in class of Steel Pipes business enabled it
to deliver robust profit in the financial year 2013-14.
The Company is one of the largest contributor to the exchequer in the
State of Tamilnadu.
The trend indicates a slight improvement in the operational results in
spite of fall in global recession, fall in demand, and violent
fluctuations in Steel Prices. Further improvement is expected in the
coming year with revival of economy.
PRODUCTION REVIEW : In the year 2013-14 your Company continued with
their Journey of relentless improvement in production, product mix and
efficiency parameters. Your Company recorded higher volume of Saleable
Pipe Production registering a growth of 20% over corresponding period
of last year, with a capacity utilization of 50% during the year.
RAW MATERIAL : During the year, 2013-14, almost total requirements of
Coils was met out from indigenous sources.
SALES & MARKETING REVIEW : Your company has achieved and strengthened
its presence in the local as well as in the neighbouring States during
the year.
GROWTH PLAN : Keeping in view the acceleration in demand for Steel
Pipes in the Southern States your Company is currently producing Square
& Rectangular Pipes in a phased manner.
DIVIDEND : In order to conserve the liquid resources no Dividend has
been declared by the company. Your Directors believe that this will
enhance Share value.
MANAGEMENT''S DISCUSSION AND ANALYSIS REPORT : Management''s discussion
and analysis report for the year under review as stipulated under
Clause 49 of the Listing Agreement with the Stock Exchanges in India is
presented in a separate Section forming part of the Annual Report.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the requirements of Sec.217(2AA) read with Section 292A of
the Companies Act 1956, with respect to the Directors'' Responsibility
Statement, it is hereby confirmed that:
a) in the preparation of Annual Accounts for the year ended 31st March
2014, the applicable Accounting Standards read with the requirements
set out under Schedule VI to the Companies Act, 1956 have been followed
and there are no other material departures from the same.
b) the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the company as at 31st March 2014 and the Profit of the Company for
the year ended on that date.
c) the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the company and for preventing and detecting fraud and other
irregularities and
d) the Directors have prepared the Annual Accounts on the "going
concern" basis.
CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE COMMITTEE : During the
year, your Directors have constituted social responsibility and
governance committee comprising Mr. M.J. Lakshmi Narasimha Rao, Mr.
Pradip Kumar Dubey and Mr. Pradeep Kumar Tiwari.
The said committee has been entrusted of formulating and recommending
to the Board a Corporate Social Responsibility Policy indicating the
activities to be undertaken by the Company, monitoring the
implementation of the framework of the CSR Policy and recommending the
amount to be spent on CSR activities.
FINANCIAL STATEMENTS : In accordance with the Accounting Standards (AS)
- 21 the Audited Financial Statements is provided in the Annual Report.
STATUTORY STATEMENTS:
REPORT ON CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION ETC. : The
particulars relating to energy conservation, technology absorption,
foreign exchange earnings and outgo, as required to be disclosed under
Sec.217(1)(e) of the Companies Act 1956, read with the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 are provided in the Annexure to this Report.
CORPORATE GOVERNANCE : The Company is committed to maintain the highest
standards of Corporate Governance and adhere to the Corporate
Governance requirements set out by SEBI. The Company has also
implemented good corporate governance practice as prevalent nationally.
The report on Corporate Governance as stipulated under Clause 49 of the
Listing Agreement forms part of the Annual Report.
The requisite certificate from the Auditors of the Company confirming
compliances with the conditions of the Corporate Governance as
stipulated under the aforesaid Clause 49 is attached to the report on
Corporate Governance.
BUSINESS RESPONSIBILITY REPORT : SEBI vide its Circular
CIR/CFD/DIL/8/2012 dated August 13, 2012 mandated the listed entities
based on market capitalization at BSE & NSE to include Business
Responsibility Report as part of Annual Report describing the
initiatives taken by the Companies from environmental, social and
governance perspective. Pursuant to the above, the Stock Exchanges
included in the Listing Agreements, as suggested framework of BRR.
Accordingly the BRR is attached which forms part of the Annual Report.
AUDITORS'' & AUDITORS'' REPORT : M/s.Abhay Jain & Co., Chartered
Accountants, the Statutory Auditors of the Company hold office till the
conclusion of the ensuing Annual General Meeting and are eligible for
reappointment under Section 141(3)(g) of the Companies Act, 2013 and
they are not disqualified for reappointment. The notes on financial
statements referred to in the Auditors Report are self-explanatory and
do not call for any further comments.
COST AUDITOR : The Central Govt, had directed an Audit of the Cost
Accounts maintained by the Companies in respect of Steel Industries
Business as per their circular No. 1/27011/2/2012-coord., Dt.
23.02.2012. Accordingly, the Company has appointed Mrs. Lata Venketesh,
the Cost Auditor for conducting the audit of cost records of the
Company for the Financial Year 2013-14.
PARTICULARS OF EMPLOYEES:- There was no employee of the Company who
received remuneration in excess of the limits prescribed under Sec.
217(2A) of the Companies Act 1956 read with the Companies (Particulars
of employees) Rules 1975.
INTERNAL CONTROLS AND THEIR ADEQUACY : The internal control systems are
commensurate to the size of the operations of the Company. Whenever it
is required, the systems and procedures are upgraded to suit the
changing business needs.
CORPORATE COMMUNICATION : Communication, both internal and external
plays a pivotal role in keeping well connected to our Stake-holders and
in brand building exercise of organisation. The company has ensured
publications of advertisements in leading newspapers, company''s
website.
EXPORT:- No Export has been done during the year as well as in the
previous year. The absence in Exports is due to un-remunerative
overseas pricing and variations in Dollar ($) prices
LISTING FEES : Listing Fees has been paid up to date for the Financial
Year 2014-15 for all the Stock Exchanges viz. Madras (Regional) Mumbai
and Ahmedabad.
DIRECTORS : Pursuant to the provisions of Section 149 (2) of the
Companies Act, 2013 of the Company, Mrs. Seshadri Rajalakshmi is
appointed as an Women Independent Director w.e.f 19/07/2014 and she
will hold Office upto the date of the ensuing Annual General Meeting.
The Company has received requisite notice in writing from a Member
proposing Mrs. Seshadri Rajalakshmi for appointment as an Independent
Director, for a period of five years.
Pursuant to the provisions of Section 151 of the Companies Act, 2013,
the Board has taken suo motto step to appoint Small Shareholders''
Director. On this matter, the Company has received a consent letter
from one of the small shareholders'' of the Company Mr. Gopal Singh, and
the Board has decided to appoint him as an Independent Director
representing Small Shareholders'', subject to the approval of the
shareholders at the ensuing Annual General Meeting.
Mr Pradip Kumar Dubey & Mr Pradeep Kumar Tiwari, Directors, who retires
by rotation at this Annual General Meeting, have been proposed for
re-appointment and the Company has received requisite notice from a
Member proposing Mr Pratip Kumar Dubey & Mr Pradeep Kumar Tiwari for
reappointment as Independent Directors for a period of five years.
The Company has received declaration from all the Independent Directors
of the Company confirming that they meet with the criteria of
independence 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.
INDUSTRIAL RELATIONS : Industrial Relations have continued to be good
during the year.
"SICK" INDUSTRY : Your Company has become a "Sick" Industrial Company
within the meaning of Clause (O) of Sec.3 of the Sick Industrial
Companies (Special Provisions) Act 1985, and has been Registered with
BIFR (Board for Industrial & Financial Reconstructions), New Delhi.
Indian Bank (HO), Chennai appointed as "Operating Agency" (O.A), by
BIFR. The Hon''ble BIFR after examining the final report at their final
hearing, passed Orders sanctioning the Rehabilitation Scheme by
allowing certain concessions. As per the Sanctioned Scheme (SS), the
company is acting on it by complying necessary formalities and
regularly submitting Compliance Reports/Progress Reports periodically
therefor. In view of the present status of the Company, the Company has
submitted the Modified Draft Rehabilitation Scheme (MDRS) Proposal to
the Hon''ble BIFR, for inclusion of certain non statutory liabilities
and requested to accept MDRS, and the same was also allowed by the
Hon''ble BIFR. Hence, the Company has submitted the necessary MDRS
proposal to the O.A. (Operating Agency) viz. Indian Bank, and the
process is going on.
ACKNOWLEDGEMENT :- Your Directors would like to express their
appreciation for the assistance and co-operations received from the
Banks, Government Authorities, Customers, Vendors, Dealers and Members
during the year under review. Your Directors also wish to place on
record their deep sense of appreciation for the committed services by
the Company''s Executives, Staffs and Workers.
For and on Behalf of the Board
Sd/- Sd/-
PLACE: CHENNAI RAKESH GOYAL MAHAVEER SINGH
DATE : 19.07.2014 Managing Director Director
Mar 31, 2012
The Directors present the 33rd Annual Report on the working of the
Company for the Year 2011-2012.
RESULTS :- (Rupees in Lacs)
Particulars This Year Previous Year
Revenue from Operations & other
Income 8,088.60 7,760.20
Cost of Material consumed 7,364.27 6687.75
Purchase of Stock in Trade 128.78 229.39
Changes in inventories of
Finished Goods (112.48) (65.41)
Payment to Employees 88.46 72.99
Financial Expenses 79.65 231.25
Depreciation 21.56 21.61
Amortization Expenses - -
Other Expenses 422.63 584.78
Exceptional items - -
Extraordinary items - -
Profit before Tax 95.73 (2.16)
Current Tax 26.75 -
Deferred Tax (2.05) 3.03
Profit/(Loss) for the period 71.03 0.87
The trend indicates a slight improvement in the operational results in
spite of fall in global recession, fall in demand, and violent
fluctuations in Steel Prices. Further improvement is expected in the
coming year with revival of economy.
EXPORT:- No Export has been done during the year as well as in the
previous year. The absence in Exports is due to un-remunerative
overseas pricing and fall/variations in Dollar ($) prices.
YOUR Company has become a "Sick" Industrial Company within the meaning
of Clause (O) of Sec. 3 of the Sick Industrial Companies (Special
Provisions) Act 1985, and has been Registered with BIFR (Board for
Industrial & Financial Reconstructions), New Delhi. Indian Bank (HO),
Chennai-1 appointed as "Operating Agency" (O.A), by BIFR. The Hon'ble
BIFR after examining the final report at their final hearing, passed
Orders sanctioning the Rehabilitation Scheme by allowing certain
concessions. As per the Sanctioned Scheme (SS), the company is acting
on it by complying necessary formalities and regularly submitting
Compliance Reports/Progress Reports periodically therefor. In view of
the present status of the Company, the Company has submitted the
Modified Draft Rehabilitation Scheme (MDRS) Proposal to the Hon'ble
BIFR, for inclusion of certain non statutory liabilities and requested
to accept MDRS, and the same was also allowed by the Hon'ble BIFR.
Hence, the Company has submitted the necessary MDRS proposal to the
O.A. (Operating Agency) viz. Indian Bank, and the process is going on.
LISTING FEES: Listing Fees has been paid up to date for the year
2011-12 for all the Stock Exchanges viz. Madras (Regional), Mumbai and
Ahmedabad.
PARTICULARS IN REGARD TO CONSUMPTION OF ENERGY: Details are furnished
in the Annexure.
DIRECTORS : Mr. Mahaveer Singh & Mr. Pradip Kumar Dubey, Directors, who
retires by rotation at this Annual General Meeting, have been proposed
for re-appointment
INDUSTRIAL RELATIONS: Industrial Relations have continued to be good
during the year.
REPORT ON CORPORATE GOVERNANCE :- Your Board of Directors have taken
note of the amendments to the Listing Agreement communicated by the
Stock Exchanges as prescribed by SEBI and have also noted the Schedule
for implementation of the Amendments.
a) AUDIT COMMITTEE :- Your Directors have constituted an Audit
Committee consisting of Sri MJ Lakshmi Narasimha Rao (Independent
Director) as Chairman, Mr. Pradip Kumar Dubey (Independent/Non-Executive
Director), Mr. Mahaveer Singh and Mr. Vikram Singh (Non-Executive
Directors) as its present Committee Members, having regard to
Annexure-2 under Clause 49 of the Listing Agreement, to consider
matters specified in the paragraphs as well as any other matters that
may be referred to the Committee under the provisions of the Corporate
Governance.
b) SHAREHOLDERS' GRIEVANCES COMMITTEE: - Your Directors have also
constituted a "Shareholders' Grievances Committee" consisting of Mr. MJ
Lakshmi Narasimha Rao (Director) as Chairman and Mr. Mahaveer Singh and
Mr. Vikram Singh (Directors) as Committee Members, having regard to
Annexure-2 under Clause-49 of the Listing Agreement, to consider
matters specified in the paragraphs as well as any other matters that
may be referred to the committee under the provisions of the Corporate
Governance.
c) DISCLOSURE OF RELATIONSHIPS BETWEEN DIRECTORS INTER-SE: As per
Clause 49-IV (G)(ia), of the Listing Agreement, (Amended) vide SEBI
Circular dt. 08.04.2008:- All the Directors of the Company, viz. Mr.
Rakesh Goyal, Managing Director, Mr. MJ Lakshmi Narasimha Rao, Mr.
Mahaveer Singh, Mr. Vikram Singh, Mr. Pradip Kumar Dubey, Directors, are
not related to each other, and they are also not having any interest in
in any other Companies.
REPORT ON MANAGEMENT DISCUSSION & ANALYSIS (MD & A) : This Report in
detail is included in "Report on Corporate Governance" annexed in this
Annual Report.
DIRECTORS' RESPONSIBILITY STATEMENT :- In terms of Sec. 217(2AA) read
with Section 292A of the Companies Act 1956, we, the Directors of
Tamilnadu Steel Tubes Ltd., state in respect of Financial Year 2011-12
that;
a) in the preparation of Annual Accounts, the applicable Accounting
Standards have been followed along with proper explanation relating to
material departures ;
b) the Directors have selected such accounting policies and applied
them consistently and made judgements 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) 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 ;
d) the Directors, have prepared the Annual Accounts on a "going
concern" basis;
LIST OF EMPLOYEES FALLING UNDER SEC. 217(2A) OF THE COMPANIES ACT
1956:-
Nil
ACKNOWLEDGEMENT :- Your Directors acknowledge and wish to place on
record the support and co-operation received by the Company from
Central Govt., State Govt., and the Bankers.
On Behalf of the Board
Sd/-
RAKESH GOYAL
Managing Director
PLACE: CHENNAI
DATE : 29.06.2012
Mar 31, 2010
The Directors present the 31st Annual Report on the working of the
Company for the Financial Year 2009-2010.
This Year Previous Year
2009-2010 2008-2009
FINANCIAL RESULTS :- (Rupees in Lacs)
Sales & Other Receipts 7,276.89 6,314.20
Expenditure 7,348.45 6,016.13
Material consumed and Mfg. Expenses 6,291.37 5,472.77
Administrative Expenses 422.44 382.00
Selljng & Distribution Expenses 418.92 94.92
Interest & Financial Charges 48.52 30.46
Preliminary Expenses written off - 15.75
Depreciation 19.45 20.22
(lncrease)/Decrease in Stock (68.91) 16.05
Profit / (Loss) for the year (2.65) 282.02
Provision for Taxation 358.46 0.58
Surplus / (Deficit) (361.11) 281.44
The trend indicates fall in operational results due to global
recession, fall in demand, and violent fluctuations in Steel Prices.
Improvement is expected in the coming year with revival of economy.
EXPORT:- No Export has been done during the year as well as in the
previous year. The fall in Exports is due to un-remunerative overseas
pricing and fall/variations in Dollar ($) prices.
YOUR Company has become a "Sick" Industrial Company within the meaning
of Clause (O) of Sec.3 of the Sick Industrial Companies (Special
Provisions) Act 1985, and has been Registered with BIFR (Board for
Industrial & Financial Reconstructions), New Delhi. Indian Bank (HO),
Chennai-1 appointed as "Operating Agency" (O.A), by BiFR. The Honble
BIFR after examining the final report at their final hearing, passed
Orders sanctioning the Rehabilitation Scheme by allowing certain
concessions. As per the Sanctioned Scheme (SS), the company is acting
on it by complying necessary formalities and regularly submitting
Compliance Reports / Progress Reports periodically therefor.
In view of the present status of the Company, the Company has submitted
the Modified Draft Rehabilitation Scheme (MDRS) Proposal to the Honble
BIFR, for inclusion of certain liabilities and requested to accept
MDRS, and the same was also allowed by the Honble BIFR. Hence, the
Company has submitted the necessary MDRS proposal to the O.A.
(Operating Agency) viz. Indian Bank, and the process is going on.
LISTING" FEES: Listing Fees has been paid up to date for the year
2010-11 for all the Stock Exchanges viz. Madras(Regional) Mumbai and
Ahmedabad.
PARTICULARS IN REGARD TO CONSUMPTION OF ENERGY:
Details are furnished in the Annexure.
DIRECTORS: Mr M.J. Lakshmi Narasimha Rao, & Mr Mahaveer Singh,
Directors, who retire by rotation at this Annual General Meeting, have
been proposed for re-appointment
INDUSTRIAL RELATIONS: Industrial Relations have continued to be good
during the year.
REPORT ON CORPORATE GOVERNANCE :- Your Board of Directors have taken
note of the amendments to the Listing Agreement communicated by the
Stock Exchanges as prescribed by SEBI and have also noted the Schedule
for implementation of the Amendments.
a) AUDIT COMMITTEE:- Your Directors have constituted an Audit Committee
consisting of Sri MJ Lakshmi Narasimha Rao (Independent Director) as
Chairman, Mr Mahaveer Singh and Mr Vikram Singh
(Independent/Non-Executive Directors) as its present Committee Members,
having regard to Annexure-2 under Clause 49 of the Listing Agreement,
to consider matters specified in the paragraphs as well as any other
matters that may be referred to the Committee under the provisions of
the Corporate Governance.
b) SHAREHOLDERS GRIEVANCES COMMITTEE: - Your Directors have also
constituted a "Shareholders Grievances Committee" consisting of Mr MJ
Lakshmi Narasimha Rao (Director) as Chairman, and Mr Mahaveer Singh and
Mr Vikram Singh (Directors) as Committee Members, having regard to
Annexure-2 under Clause-49 of the Listing Agreement, to consider
matters specified in the paragraphs as well as any other matters that
may be referred to the committee under the provisions of the Corporate
Governance.
c) DISCLOSURE OF RELATIONSHIPS BETWEEN DIRECTORS INTER-SE: As per
Clause 49-IV (G)(ia), of the Listing Agreement, (Amended) vide SEBI
Circular dt. 08.04.2008:- All the Directors of the Company, viz. Mr
Rakesh Goyal, Managing Director,Mr.MJ Lakshmi Narasimha Rao, Mr
Mahaveer Singh, and Mr VikramSingh, Directors, are not related to each
other, and they are also not having any interest in any other
Companies.
REPORT ON MANAGEMENT DISCUSSION & ANALYSIS (MD & A):
This Report in detail is included in "Report on Corporate Governance"
annexed in this Annual Report.
DIRECTORS RESPONSIBILITY STATEMENT :- In terms of Sec.217(2AA) read
with Section 292A of the Companies Act 1956, we, the Directors of
Tamilnadu Steel Tubes Ltd., state in respect of Financial Year 2009-10
that;
a) in the preparation of Annual Accounts, the applicable Accounting
Standards have been followed along with proper explanation relating to
material departures ;
b) the Directors 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) 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 ;
d) the Directors have prepared the Annual Accounts on a "going concern"
basis;
LIST OF EMPLOYEES FALLING UNDER SEC. 217(2A) OF THE COMPANIES ACT 1956
:- Nil
ACKNOWLEDGEMENT:- Your Directors acknowledge and wish to place on
record the support and co-operation received by the Company from
Central Govt., State Govt., and the Bankers.
On Behalf of the Board
CHENNAI RAKESH GOYAL
26.06.2010 Managing Director
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