Mar 31, 2016
The Directors have pleasure in presenting their Twenty-ninth Annual Report together with the audited accounts for the year ended 31st March 2016.
FINANCIAL RESULTS
(Rs. in Lakhs)
Forth |
year |
|
ended 31 |
st March |
|
2016 |
2015 |
|
Profit / (Loss) before Interest |
||
& Depreciation |
7761.25 |
4846.52 |
Less: Interest |
3155.75 |
3682.48 |
Less: Depreciation |
3633.28 |
3546.84 |
Less: Forex Fluctuation Loss |
40.25 |
34.89 |
Profit / (Loss) before Tax |
931.97 |
(2417.69) |
Provision for Tax |
0.00 |
0.00 |
Profit / (Loss) after Tax |
931.97 |
(2417.69) |
DIVIDEND
In view of the accumulated losses, your Directors do not recommend any dividend for the year ended 31st March, 2016.
OPERATIONS
The performance of the Company has been discussed in detail in the "Management Discussion and Analysis" section. The Company achieved its highest ever clinker and cement production during the year under review. The clinker production was 9.78 lakh tonnes (8.68 lakh tonnes) while the cement production was at 13.46 lakh tonnes (12.10 lakh tonnes). The sale of cement was also brisk at 13.47 lakh tonnes (12.22 lakh tonnes). The Company achieved significant economies in cost through better blending, higher kiln output and reduction in power consumption.
MANAGEMENT DISCUSSION AND ANALYSIS
Pursuant to Regulation 34(2) of Securities and Exchange Board of India [Listing Obligations and Disclosure Requirements] Regulations, 2015 [SEBI (LODR) Regulations 2015] a Management Discussion and Analysis Report is given as addition to this report.
CORPORATE GOVERNANCE
Pursuant to Regulation 34(3) of SEBI (LODR) Regulations 2015, a report on Corporate Governance along with Auditors'' Certificate confirming its compliance is included as part of the Annual Report of the Company.
AMALGAMATION WITH THE INDIA CEMENTS LIMITED
The Scheme of Amalgamation between the Company and Trishul Concrete Products Limited with The India Cements Limited has been approved by the shareholders at the Court Convened Meeting held on 25.03.2015. Petitions have been filed in the Hon''ble High Court of Judicature at Madras under Sections 391 to 394 of the Companies Act, 1956 for sanction of the said Scheme.
MATERIAL CHANGES AND COMMITMENTS SINCE 31st MARCH, 2016
There have been no material changes and commitments affecting the financial position of the Company which have occurred between 1st April, 2016 and the date of this report other than those disclosed in the financial statements.
RISK MANAGEMENT POLICY
Pursuant to Section 134(3)(n) of the Companies Act, 2013 and Regulation 17(9) of SEBI (LODR) Regulations 2015, the Company has developed and implemented a Risk Management Policy. The Policy envisages identification of risk and procedures for assessment and mitigation thereof.
INTERNAL FINANCIAL CONTROLS
In accordance with Section 134(5)(e) of the Companies Act, 2013 and Rule 8(5)(viii) of Companies (Accounts) Rules, 2014, the Company has an Internal Financial Control Policy and Procedure commensurate with the size and nature of its operations and financial reporting.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS OR COURTS OR TRIBUNALS
Pursuant to Rule 8(5) (vii) of Companies (Accounts) Rules, 2014, it is reported that during the year 2015-16, no significant and material Orders were passed by the Regulators or Courts or Tribunals impacting the going concern status and company''s operations in future.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
The Company has not given any loans or guarantees or provided security to any person or other body corporate during the financial year attracting the provisions of Section 186 of the Companies Act, 2013.
CONSERVATION OF ENERGY, ETC.
In terms of Section 134(3)(m) of the Companies Act, 2013 and the Rule 8(3) of Companies (Accounts) Rules, 2014, the information relating to Conservation of
Energy, Technology Absorption and Foreign Exchange Earnings and Outgo are given in Annexure 1.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
A report on the CSR activities initiated voluntarily by the Company towards discharging its social responsibility during 2015-16 is given in Annexure 2.
VIGIL MECHANISM
In accordance with Section 177(9) and (10) of the Companies Act, 2013 and Regulation 22 of SEBI (LODR) Regulations 2015, the Company has established a Vigil Mechanism and has a Whistle Blower Policy. The policy is available at the Company''s website www.trinetracement.com.
TRANSACTIONS WITH RELATED PARTIES
All the Related Party Transactions are presented to the Audit Committee and the Board on quarterly basis specifying the nature, value and terms and conditions of the transactions. Prior omnibus approval is obtained for transactions which are foreseen and repetitive nature. Particulars of contracts and arrangements with related parties referred to in Section 188(1) of the Companies Act, 2013 have been given in the prescribed form AOC-2 in Annexure 3. The Related Party Transactions Policy as approved by the Board is uploaded on the Company''s website www.trinetracement.com.
PUBLIC DEPOSITS
During the year under review, the Company neither invited nor accepted any public deposits within the meaning of Section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014. Also there were no outstanding public deposits at the beginning or end of the year.
INDUSTRIAL RELATIONS & PERSONNEL
Industrial relations continued to remain cordial during the year. No employee received remuneration in excess of the limits prescribed under Section 197 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel), Rules, 2014.
EXTRACT OF ANNUAL RETURN
Pursuant to Section 92(3) of the Companies Act, 2013 read with Rule 12(1) of the Companies (Management and Administration) Rules, 2014, an extract of Annual Return in Form No. MGT-9 is attached as Annexure 4 which forms part of this Directors'' Report.
DIRECTORS
Sri V.M.Mohan retires by rotation at the ensuing Annual General Meeting of the Company and is eligible for reappointment. Resolution on his re-appointment as director, is included in the Notice convening the 29th Annual General Meeting of the Company.
Under Section 149 of the Companies Act, 2013, Sri Arun Datta, Sri R.K.Das, Sri N.R.Krishnan, Sri L.Sabaretnam and Sri V.Manickam, were appointed as Independent Directors of the Company for a term of two consecutive years with effect from 30th December 2014 to 29th December 2016 or the date of 29th Annual General Meeting of the Company, whichever was earlier. The Company proposes to reappoint Sri Arun Datta, Sri N.R.Krishnan, Sri L.Sabaretnam and Sri V.Manickam, as Independent Directors of the Company to hold office for a second term of 2 consecutive years from 28th September, 2016 to 27th September, 2018 and special resolutions for their re-appointments as Independent Directors of the Company are included in the Notice convening the 29th Annual General Meeting of the Company.
Brief particulars of Directors eligible and proposed for re-appointment in terms of Regulation 36(3) of SEBI (LODR) Regulations, 2015 are annexed to the Notice convening the 29th Annual General Meeting. The Directors proposed for re-appointment are not related to each other.
KEY MANAGERIAL PERSONNEL
The Key Managerial Personnel of the Company are Sri T.S.Raghupathy, Chief Executive Officer, Sri R.Srinivasan, Chief Financial Officer and Sri S.Sridharan, Company Secretary (till 31.03.2016). Sri B. Srinivasa Rao has been appointed as Company Secretary with effect from 26th May, 2016.
MANAGER
The Board of Directors has at the meeting held on 26th May, 2016, based on the recommendation of Nomination and Remuneration Committee, reappointed Sri T.S.Raghupathy, Director, as ''Manager'' under the Companies Act, 2013 without any remuneration for a period of three more years with effect from 12th November, 2016. Necessary resolutions seeking the approval of the shareholders for his re-appointment as ''Manager'' are included in the Notice convening the 29th Annual General Meeting of the Company.
INDEPENDENT DIRECTORS
The declarations given by Independent Directors under Section 149(7) of the Companies Act, 2013 that they meet the criteria of independence as provided under Section 149(6) of the Companies Act, 2013, have been received by the Company. The Company has been arranging training programmes for independent directors in a phased manner. The details of familiarization programme for Independent Directors are available on the Company''s website www.trinetracement.com.
ANNUAL EVALUATION
Pursuant to the provisions of the Companies Act, 2013 and SEBI (LODR) Regulations 2015, the Board has carried out an annual performance evaluation of its own performance and that of the directors individually the working of its Audit, Nomination and Remuneration and other Board Committees.
REMUNERATION POLICY
The Board has, on the recommendation of the Nomination and Remuneration Committee, framed a Policy for selection and appointment of Directors, Key Managerial Personnel and other employees and their remuneration for implementation.
No remuneration, including sitting fee has been paid to any director. The remuneration of Key Managerial Personnel has been paid by the holding company, namely, The India Cements Limited.
BOARD MEETINGS
During the year, 4 Board Meetings were held. The details of meetings of the Board and its various Committees are given in the Corporate Governance Report.
DIRECTORS'' RESPONSIBILITY STATEMENT
Your Directors make the following statement in terms of Section 134(5) of the Companies Act, 2013.
"We confirm that:
1. in the preparation of the annual accounts for the year ended 31st March, 2016, the applicable accounting standards have been followed along with proper explanation relating to any material departures;
2. such Accounting Policies have been selected and applied 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, 2016 and of the profit of the Company for that year;
3. 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;
4. the annual accounts for the year ended 31st March, 2016 have been prepared on a going concern basis;
5. internal financial controls to be followed by the Company have been laid down and that such internal financial controls are adequate and are operating effectively;
6. proper systems to ensure compliance with the provisions of all applicable laws have been devised and that such systems are adequate and operating effectively."
AUDIT COMMITTEE
The Audit Committee has 3 members out of which 2 are Independent Directors. The details of composition of the Audit Committee are given in the Corporate Governance Report. There has been no instance, where the Board has not accepted any recommendation of Audit Committee.
AUDITORS
Pursuant to the provisions of Section 139 of the Companies Act, 2013 and Companies (Audit & Auditors) Rules, 2014, M/s.Chaturvedi SK & Fellows, Chartered Accountants, Mumbai, Auditors of the Company, retire at the ensuing Annual General Meeting and are proposed to be appointed as Statutory Auditors to hold office from the conclusion of the 29th Annual General Meeting until the conclusion of the 30th Annual General Meeting.
The Company has obtained a written consent for their appointment as Auditors of the Company along with a Certificate confirming that the appointment, if made, would be in accordance with the conditions and criteria as prescribed under Section 141(3) of the Companies Act, 2013.
A resolution for the appointment of M/s.Chaturvedi SK & Fellows, Chartered Accountants as statutory auditors of the Company is included in the Notice convening the 29th Annual General Meeting.
M/s. Chevuturi Associates, Chartered Accountants have been appointed as Internal Auditors for the year 2016-17.
Sri S.A.Murali Prasad, Cost Accountant, Chennai, has been appointed as Cost Auditor for the year 2016-17 at a remuneration of Rs.1 lakh. The remuneration is subject to ratification of members and hence is included in the Notice convening the 29th Annual General Meeting of the Company.
Pursuant to Section 204 of the Companies Act, 2013, Mrs.P.R.Sudha, Company Secretary in Practice, Chennai has been appointed as Secretarial Auditor of the Company for the year 2016-17.
The Secretarial Audit Report in Form No. MR-3, as prescribed under Section 204(1) of the Companies Act, 2013 read with Rule 9 of the Companies (Appointment and Remuneration of Managerial
A. Conservation of Energy:
(a) Energy conservation measures undertaken include:
i. Continuous process diagnosis studies to improve the outputs of the various sections which resulted in reduced power consumption during the year.
ii. The power factor improvement up to 0.99 under progress.
iii. Regular load study of all equipments to reduce the load losses.
iv. Further improvement of blending in cement to reduce the overall power consumption and thereby the reduction in carbon emission.
v. Fuller utilization of thermal power plant capacity and optimum utilization of IEX power during shut down of the power plant.
vi. Installation of higher size truck tippler to unload heavier vehicles to fully automate the unloading operation, reducing the handling losses.
Personnel) Rules, 2014, given by Mrs.P.R.Sudha for the Financial Year 2015-16, is enclosed as Annexure 5. The Secretarial Audit Report does not contain any qualification, reservation or other remarks.
ACKNOWLEDGEMENT
The Directors are thankful to the Bankers for their continued support. The Directors also thank the Central Government and the State Governments for their support. The Directors are appreciative of the performance of the stockiest during the year. The continued dedication and sense of commitment shown by the employees at all levels during the year deserve special mention.
for and on behalf of the Board
Place: Chennai N.SRINIVASAN
Date : 26th May, 2016 Chairman
Mar 31, 2015
Dear members,
The Directors have pleasure in presenting their Twenty eighth Annual
Report together with the audited accounts for the year ended 31st
March 2015.
FINANCIAL RESULTS
(Rs. in Lakhs)
For the year
ended 31st March
2015 2014
Profit / (Loss) before Interest & Depreciation 4846.52 4793.91
Less: Interest 3682.48 5377.61
Less: Depreciation 3546.84 3737.12
Less: Forex Fluctuation Loss 34.89 40.39
Profit / (Loss) before Tax (2417.69) (4361.21)
Provision for Tax 0.00 0.00
Profit / (Loss) after tax (2417.69) (4361.21)
DIVIDEND
In view of the loss incurred, your Directors do not recommend any
dividend for the year ended 31st March, 2015.
OPERATIONS
The performance of the Company has been discussed in detail in the
"Management Discussion and Analysis" section. During the year under
review, the clinker production was 8.68 lakh tonnes (8.82 lakh
tonnes). The cement production was maintained at 12.10 lakh tonnes
(12.19 lakh tonnes) and the sale of cement was marginally higher at
12.22 lakh tonnes (12.13 lakh tonnes). The operating parameters showed
further improvement during the year under review.
CURRENT PERFORMANCE & FUTURE OUTLOOK
During the first four months of the current fiscal, the clinker
production improved sizably to 3.12 lakh tons (2.66 lakh tons) while
the grinding was marginally lower at 4.05 lakh tons as compared to
4.18 lakh tons. The Cement sales was also lesser at 4.04 lakh tons
against 4.24 lakh tons of the previous year. The prices which went
down during the last two quarters of the previous year have started
showing signs of improvement.
MANAGEMENT DISCUSSION AND ANALYSIS
Pursuant to Clause 49 of the Listing Agreement, a Management
Discussion and Analysis Report is given as addition to this report.
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement with Stock Exchanges, a
report on Corporate Governance along with Auditors' Certificate of its
compliance is included as part of the Annual Report of the Company.
AMALGAMATION WITH THE INDIA CEMENTS LIMITED
The Scheme of Amalgamation between the Company and Trishul Concrete
Products Limited with The India Cements Limited has been approved by
the shareholders at the Court Convened Meeting held on 25.03.2015.
Petitions have been filed in the Hon'ble High Court of Judicature at
Madras under Sections 391 to 394 of the Companies Act, 1956 for
sanction of the said Scheme.
MATERIAL CHANGES AND COMMITMENTS SINCE 31st MARCH, 2015
There have been no material changes and commitments affecting the
financial position of the Company which have occurred between the end
of the financial year of the Company to which the financial Statements
relate and the date of the report other than those disclosed in the
financial statements.
RISK MANAGEMENT POLICY
Pursuant to Section 134(3)(n) of the Companies Act, 2013 and Clause 49
of the listing agreement, the Company has developed and implemented a
Risk Management Policy. The Policy envisages identification of risk
and procedures for assessment and minimisation of risk thereof.
INTERNAL FINANCIAL CONTROLS
In accordance with Section 134(5)(e) of the Companies Act, 2013 and
Rule 8(5)(viii) of Companies (Accounts) Rules, 2014, the Company has
Internal Financial Control Policy and Procedures commensurate with the
size and nature of its operations and financial reporting.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS OR COURTS OR
TRIBUNALS
Pursuant to Rule 8(5)(vii) of Companies (Accounts) Rules, 2014, it is
reported that during the year 20142015, no significant and material
Orders were passed by the Regulators or Courts or Tribunals impacting
the going concern status and company's operations in future.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
The Company has not given any loans or guarantees or provided security
to any person or other body corporate attracting the provisions of
Section 186 of the Companies Act, 2013.
CONSERVATION OF ENERGY, ETC.
In terms of Section 134(3)(m) of the Companies Act, 2013 and the Rule
8(3) of Companies (Accounts) Rules, 2014, the information relating to
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo is given in Annexure 1.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
In terms of Section 135 and Schedule VII of the Companies Act, 2013,
the Board of Directors have constituted a Corporate Social
Responsibility (CSR) Committee and adopted a CSR Policy. A report on
the CSR activities initiated voluntarily by the Company towards
discharging its social responsibility during 2014-15 is given in
Annexure 2.
VIGIL MECHANISM
In accordance with Section 177(9) and (10) of the Companies Act, 2013
and Clause 49(II)(F) of the Listing Agreement, the Company has
established a Vigil Mechanism and has a Whistle Blower Policy. The
policy is available at the Company's website www.trinetracement.com.
TRANSACTIONS WITH RELATED PARTIES
All transactions entered into with Related Parties as defined under
the Companies Act, 2013 and Clause 49 of the Listing Agreement during
the financial year were in the ordinary course of business and on
arm's length basis. All the Related Parties Transactions are presented
to the Audit Committee and the Board. Prior omnibus approval is
obtained for transactions which are foreseen and repetitive nature, A
statement of all related party transactions are presented before the
Audit Committee and Board of Directors on quarterly basis specifying
the nature, value and terms and conditions of the transactions.
Particulars of contracts and arrangements with related parties
referred to in Section 188(1) of the Companies Act, 2013 have been
given in the prescribed form AOC-2 in Annexure 3. The Related Party
transactions Policy as approved by the Board is uploaded in the
Company's website www.trinetracement.com.
PUBLIC DEPOSITS
During the year under review, the Company has neither invited nor
accepted any public deposits within the meaning of Section 73 of the
Companies Act, 2013 read with the Companies (Acceptance of Deposits)
Rules, 2014. Also there were no outstanding public deposits at the
beginning or end of the year.
INDUSTRIAL RELATIONS & PERSONNEL
Industrial relations continued to remain cordial during the year. No
employee received the remuneration in excess of the limits prescribed
under Section 197 of the Companies Act, 2013 and the Companies
(Appointment and Remuneration of Managerial Personnel), Rules, 2014.
EXTRACT OF ANNUAL RETURN
Pursuant to Section 92(3) of the Companies Act, 2013 read with Rule
12(1) of the Companies (Management and Administration) Rules, 2014, an
extract of Annual Return in Form No. MGT-9 is attached as Annexure 4
which forms part of this Board's Report.
DIRECTORS
Sri.R.Srinivasan has resigned as Director of the Company with effect
from 11.02.2015. The Board expresses its appreciation of the valuable
contribution made by Sri.R.Srinivasan during his tenure as Director.
Ms.Rupa Gurunath was appointed by the Board as additional Director
with effect from 11.02.2015 and she will hold her office upto the date
of the ensuing Annual General Meeting. The Company has received a
notice as per the provisions of Section 160(1) of the Companies Act,
2013 from a member proposing her appointment as Director.
Sri.PL.Subramanian retires by rotation at the ensuing Annual General
Meeting of the Company and is eligible for re-appointment.
Resolutions on appointment / reappointment of directors, as aforesaid,
are included in the Notice dated 12th August, 2015 convening the 28th
Annual General Meeting of the Company.
Brief particulars of Directors eligible for appointment /
re-appointment in terms of Clause 49 of Listing Agreement are annexed
to the Notice convening the 28th Annual General Meeting.
KEY MANAGERIAL PERSONNEL
The Key Managerial Personnel of the Company are Sri.T.S.Raghupathy
Chief Executive Officer, Sri.R.Srinivasan, Chief Financial Officer and
Sri.S.Sridharan, Company Secretary.
INDEPENDENT DIRECTORS
Under Section 149(6) of the Companies Act, 2013, Sri.Arun Datta,
Sri.R.K.Das, Sri.N.R.Krishnan, Sri.L.Sabaretnam and Sri.V.Manickam,
were appointed as Independent Directors of the Company to hold office
for a term of two consecutive years with effect from 30th December
2014 to 29th December 2016 or the date of 29th Annual General Meeting
of the Company, whichever is earlier.
The declarations given by independent directors under Section 149(7)
of the Companies Act, 2013 that they meet the criteria of independence
as provided under Section 149(6) of the Companies Act, 2013, have been
received by the Company. The Company has been sponsoring independent
directors for training programmes in a phased manner. The details of
familiarisation programme for independent directors are available on
the Company's website www.trinetracement.com.
ANNUAL EVALUATION
Pursuant to the provisions of Section 134(3)(p) of the Companies Act,
2013 and Clause 49 of the Listing Agreement, the Board has carried out
an annual evaluation of its own performance and that of the directors
individually as well as evaluation of the working of its Audit,
Nomination and Remuneration and other Board Committees.
REMUNERATION POLICY
The Board has, on the recommendation of the Nomination and
Remuneration Committee, framed a Policy for selection and appointment
of Directors, Key Managerial Personnel and other employees and their
remuneration for implementation.
No remuneration, including sitting fee has been paid to any director,
in view of loss incurred by the Company. The remuneration of KMPs has
been paid by the holding company, The India Cements Limited. Hence,
the disclosures in terms of provisions of Section 197(12) of the
Companies Act, 2013, read with Rule 5(1), (2) & (3) of Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014,
relating to remuneration, are not applicable to the Company.
BOARD MEETINGS
During the year, 6 Board Meetings were held. The details of board
meetings and its various Committees are given in the Corporate
Governance Report.
DIRECTORS' RESPONSIBILITY STATEMENT
Your Directors make the following statement in terms of Section
134(3)(c) of the Companies Act, 2013.
"We confirm that:
1. in the preparation of the annual accounts for the year ended 31st
March, 2015, the applicable accounting standards have been followed
along with proper explanation relating to material departures;
2. such Accounting Policies have been selected and applied
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 31st March, 2015 and of the loss of the Company for
that year;
3. 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;
4. the annual accounts for the year ended 31st March, 2015 have been
prepared on a going concern basis;
5. internal financial controls to be followed by the Company have
been laid down and that such internal financial controls are adequate
and were operating effectively;
6. proper systems to ensure compliance with the provisions of all
applicable laws have been devised and that such systems were adequate
and operating effectively."
AUDIT COMMITTEE
The Audit Committee has 3 members out of which 2 are Independent
Directors. The details of composition of the Audit Committee are given
in the Corporate Governance Report. There has been no instance, where
the Board has not accepted any recommendation of Audit Committee.
AUDITORS
Pursuant to the provisions of Section 139 of the Companies Act, 2013
and Companies (Audit & Auditors) Rules, 2014, M/s.Chaturvedi SK &
Fellows, Chartered Accountants, Mumbai, Auditors of the Company,
retire at the ensuing Annual General Meeting and are proposed to be
appointed as Statutory Auditors to hold office from the conclusion of
the 28th Annual General Meeting until the conclusion of the 29th
Annual General Meeting.
The Company has obtained a written consent for their appointment as
Auditors of the Company along with a Certificate confirming that the
appointment, if made, would be in accordance with the conditions and
criteria as prescribed under Section 141(3) of the Companies Act,
2013.
A resolution for the appointment of M/s.Chaturvedi SK & Fellows,
Chartered Accountants as statutory auditors of the Company by the
Members, is included in the Notice dated 12th August, 2015.
Sri.S.A.Murali Prasad, Cost Accountant, Chennai, has been appointed as
Cost Auditor for the year 2015-16 at a remuneration of Rs.1 lakh. The
remuneration is subject to approval of members and hence is included
in the Notice dated 12th August, 2015 convening the 28th Annual
General Meeting of the Company.
Pursuant to Section 204 of the Companies Act, 2013, Mrs.PR.Sudha,
Company Secretary in Practice, has been appointed as Secretarial
Auditor of the Company for the year 2015-16.
The Secretarial Audit Report in Form No. MR-3 given by Mrs.PR.Sudha,
for the Financial Year 2014-15, as prescribed under Section 204(1) of
the Companies Act, 2013 is attached as Annexure 5.
ACKNOWLEDGEMENT
The Directors are thankful to the Bankers for their continued support.
The Directors also thank the Central Government and the State
Governments for their support. The Directors are appreciative of the
performance of the stockists during the year. The continued dedication
and sense of commitment shown by the employees at all levels during
the year deserve special mention.
for and on behalf of the Board
Place: Chennai N.SRINIVASAN
Date : 12th August, 2015 Chairman
Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting their Twentyseventh Annual
Report together with the audited accounts for the year ended 31st March
2014.
FINANCIAL RESULTS
(Rs. in Lakhs)
For the year
ended 31st March
2014 2013
Profit / (Loss) before Interest
& Depreciation 4793.91 8432.61
Less: Interest 5377.61 5075.22
Less: Depreciation 3737.12 3663.17
Less: Forex Fluctuation Loss 40.39 266.22
Profit / (Loss) before Tax (4361.21) (572.00)
Provision for Tax 0.00 0.00
Profit / (Loss) after tax (4361.21) (572.00)
DIVIDEND
In view of the loss incurred, your Directors do not recommend any
dividend for the year ended 31st March, 2014.
DIRECTORS'' RESPONSIBILITY STATEMENT
Your Directors make the following statement in terms of Section 217
(2AA) of the Companies Act, 1956:
"We confirm
1. That in the preparation of the accounts for the year ended 31st
March 2014, the applicable Accounting Standards have been followed.
2. That such Accounting Policies have been selected and applied
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 31st March 2014 and of the loss of the Company for
the year ended on that date.
3. 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.
4. That the annual accounts for the year ended 31st March 2014 have
been prepared on a going concern basis."
OPERATIONS
The performance of the Company has been discussed in detail in the
"Management Discussion and Analysis" section.
The Company achieved further strides in its operations during the year
under review. The Directors are glad to report the highest clinker
production of 1.04 lakh tons during the month of March 2014. The
clinker production for the year was 8.82 lakh tons (8.92 lakh tons).
The cement production was up by 7% at 12.19 lakh tons as compared to
11.38 lakh tons and the sale of cement was also higher at 12.13 lakh
tons (11.28 lakh tons). The operating parameters showed further
improvement during the year under review. The plant has shifted to 100%
Petcoke from the second quarter of the previous year which had
stabilized during the year. Despite the improved volume, with the steep
fall in the price in the market particularly in the second and third
quarters, the Net Plant Realisation (NPR) per ton of cement came down
sharply resulting in EBIDTA of Rs.48 crores as against Rs.84 crores in
the previous year.
20 MW POWER PLANT
The power plant which was stopped on 19th April 2013 due to a minor
explosion in the boiler was completely investigated, repaired and put
back into operation in the month of February 2014 and has been working
to its capacity. The operations did not suffer for want of power as it
had sufficient units available from the National Power Exchange.
CURRENT PERFORMANCE
During the first 6 months of the current fiscal, the unit has achieved
a clinker production of 4.17 lakh tons at the same level as that of
previous year. The cement grinding was higher by 6% at 5.79 lakh tons
and the sale was also up by 6% at 5.83 lakh tons against 5.50 lakh tons
in the previous year. The prices have improved from its lowest levels
in the previous year resulting in improvement in the bottom line.
MANAGEMENT DISCUSSION AND ANALYSIS
Pursuant to Clause 49 of the Listing Agreement, a Management Discussion
and Analysis Report is given as addition to this report.
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement with Stock Exchanges, a
report on Corporate Governance along with Auditors'' Certificate of its
compliance is included as part of the Annual Report of the Company.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
A Corporate Social Responsibility (CSR) Committee was constituted by
the Board of Directors at the meeting held on 26th May 2014. A report
on the CSR activities of the Company during 2013-14 is given in
Annexure.
AMALGAMATION WITH THE INDIA CEMENTS LIMITED
Application has been filed in the Honourable High Court of Judicature
at Madras under Sections 391 to 394 of the Companies Act, 1956 for
completing the procedural requirements for the proposed Scheme of
Amalgamation and Arrangement between this Company and Trishul Concrete
Products Limited with The India Cements Limited.
FINANCIAL POSITION
The Company was discharged from the purview of SICA/ BIFR by the Board
for Industrial and Financial Reconstruction (BIFR), vide its order
No.277/98 dated 17th March 2009. However, as per the audited annual
accounts as on 31st March 2010, the Company had become a potentially
sick company in terms of Section 23 of Sick Industrial Companies
(Special Provisions) Act, 1985 (SICA) and the prescribed form was filed
with BIFR on 11th October 2010. Even at the time of discharge of the
Company from the purview of SICA, the accumulated losses were more than
50% of the peak net worth.
Consequent to the issue of Preference Share Capital during the years
2010-11 to 2012-13 aggregating to Rs.705 Crores in favour of The India
Cements Limited, the holding Company, the net worth of the Company has
increased substantially and the same was intimated to BIFR.
DELISTING OF EQUITY SHARES
In terms of Securities and Exchange Board of India (Delisting of Equity
Shares) Regulations, 2009, the Company voluntarily delisted its equity
shares from Ahmedabad Stock Exchange Limited and Delhi Stock Exchange
Limited in August, 2013 and September, 2014 respectively, as there was
no trading of shares in the said stock exchanges.
PUBLIC DEPOSITS
During the year under review, the Company has neither invited nor
accepted any public deposits within the meaning of Section 58A of the
Companies Act, 1956 read with the Companies (Acceptance of Deposits)
Rules, 1975. Also there were no outstanding public deposits at the
beginning or end of the year.
CONSERVATION OF ENERGY, ETC.
The prescribed details, as required under Section 217(1)(e) of the
Companies Act, 1956, are set out in the Annexure ''A''.
PERSONNEL
Industrial relations continued to remain cordial during the year.
The Company has no employee drawing a salary of Rs.5,00,000/- per month
or above or which in aggregate was not less than Rs.60 lakhs during the
year.
DIRECTORS
Sri N.Srinivasan and Sri TS.Raghupathy retire by rotation at the
ensuing Annual General Meeting of the Company and are eligible for
re-appointment.
Sri N.Srinivasan (F&R) resigned as Director of the Company with effect
from 01.10.2014. The Board expresses its appreciation of the valuable
contribution made by Sri N.Srinivasan (F&R) during his tenure as
director. Sri V.Manickam was appointed as an independent director in
the place of Sri N.Srinivasan (F&R) with effect from 12.11.2014.
Under Section 149(6) of the Companies Act, 2013, the Company proposes
to appoint Sri Arun Datta, Sri R.K.Das, Sri N.R.Krishnan, Sri
L.Sabaretnam and Sri V.Manickam, as independent directors of the
Company and resolutions for their election as independent directors of
the Company are included in the Notice dated 12.11.2014 convening the
27th Annual General Meeting of the Company.
Brief particulars of Directors eligible for appointment /
re-appointment in terms of Clause 49 of the Listing Agreement are
annexed to the Notice dated 12.11.2014 convening the 27th Annual
General Meeting.
AUDITORS
M/s.Chaturvedi SK & Fellows, Chartered Accountants, Mumbai, Auditors of
the Company, retire at the ensuing Annual General Meeting and are
proposed to be appointed to hold office from the conclusion of the 27th
Annual General Meeting until the conclusion of the 28th Annual General
Meeting.
Sri S.A.Murali Prasad, Cost Accountant, Chennai, has been appointed as
Cost Auditor for the year 2014-15 subject to approval by the Government
of India, at a remuneration of Rs.1 lakh. The remuneration is subject
to approval of members and hence is included in the Notice dated 12th
November, 2014 convening the 27th Annual General Meeting of the
Company.
M/s.Brahmayya & Co., Chartered Accountants, Chennai, have been
appointed as Internal Auditors for the year 2014-15.
ACKNOWLEDGEMENT
The Directors are thankful to the Bankers for their continued support.
The Directors also thank the Central Government and the State
Governments for their support. The Directors are appreciative of the
performance of the stockists during the year. The continued dedication
and sense of commitment shown by the employees at all levels during the
year deserve special mention.
for and on behalf of the Board
Place: Chennai N.SRINIVASAN
Date : 12th November, 2014 Chairman
Mar 31, 2013
The Directors have pleasure in presenting their Twentysixth Annual
Report together with the audited accounts for the year ended 31st March
2013.
FINANCIAL RESULTS
(Rs. in Lakhs)
For the year
ended 31st March
2013 2012
Profit/(Loss) before Interest
& Depreciation 8432.61 2680.57
Less: Interest 5075.22 3543.22
Less: Depreciation 3663.17 2820.78
Less: Forex Fluctuation Loss 266.22 497.62
Profit / (Loss) before Tax (572.00) (4181.05)
Provision for Tax 0.00 0.00
Profit / (Loss) after Tax (572.00) (4181.05)
DIVIDEND
In view of the loss incurred, your Directors do not recommend any
dividend for the year ended 31st March 2013.
SHARE CAPITAL
During the year, the Authorised Share Capital of the Company increased
from Rs.675 Crores to Rs.875 Crores. The Company has allotted 90,00,000
- 9% Non-Convertible Non-Cumulative Redeemable Preference Shares of
Rs.100/- each fully paid-up, at par, amounting to Rs.90 crores to The
India Cements Limited, the holding company, in November 2012, on
adjustment of outstanding loans / advances.
DIRECTORS'' RESPONSIBILITY STATEMENT
Your Directors make the following statement in terms of Section 217
(2AA) of the Companies Act, 1956:
"We confirm
1. That in the preparation of the accounts for the year ended 31st
March 2013, the applicable Accounting Standards have been followed.
2. That such Accounting Policies have been selected and applied
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 31st March 2013 and of the loss of the Company for
the year ended on that date.
3. 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.
4. That the annual accounts for the year ended 31st March 2013 have
been prepared on a going concern basis."
OPERATIONS
The performance of the Company has been discussed in detail in the
"Management Discussion and Analysis" section.
The Company achieved further improvement in the operations of the plant
during the second full year of operations. The unit achieved its
highest clinker production during the month of March 2013 at 0.96 lakh
tons. The overall clinker production for the year was 8.92 lakh tons
(7.80 lakh tons) with a growth of 14% while the cement production
further improved to 11.38 lakh tons (10.07 lakh tons) and the sale of
cement was brisk at 11.28 lakh tons as compared to 10.08 lakh tons in
the previous year with a growth of 12%. The operating parameters
further improved during the year resulting in lower power and fuel
consumption with the stabilized operations of the plant.
With the usage of low cost petcoke at the plant, the fuel cost has been
substantially brought down and the unit has turned into profit during
the last quarter of the financial year.
With regard to acquisition of additional lands for expansion and for
mining lease, the applications are processed by the State Government
and the modalities are being worked out.
20 MW POWER PLANT
On 19th April 2013, there was a mechanical problem in the chain link
conveyor feeding coal to the boiler which resulted in the breakdown of
the power plant after a minor explosion. After complete investigation
by the experts, necessary orders have been placed for replacing the
damaged parts. Based on delivery time of the pressure parts and time
required for dismantling and re-erection, it is expected that the power
plant will be ready in another 4 to 5 months time. The Company has made
necessary insurance claim covering this. The Company does not foresee
any shortage of power due to the stoppage of power plant as there is
sufficient quota available from State Electricity Board and also from
the power exchange and private power producers.
MANAGEMENT DISCUSSION AND ANALYSIS
Pursuant to Clause 49 of the Listing Agreement, a Management Discussion
and Analysis Report is given as addition to this report.
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement with Stock Exchanges, a
report on Corporate Governance along with Auditors'' Certificate of its
compliance is included as part of the Annual Report of the Company.
FINANCIAL POSITION
The Company was discharged from the purview of SICA/BIFR by the Board
for Industrial and Financial Reconstruction (BIFR), vide its order
No.277/98 dated 17th March 2009. However, as per the audited annual
accounts as on 31st March 2010, the Company had become a potentially
sick company in terms of Section 23 of Sick Industrial Companies
(Special Provisions) Act, 1985 (SICA) and the prescribed form was filed
with BIFR on 11th October 2010. Even at the time of discharge of the
Company from the purview of SICA, the accumulated losses were more than
50% of the peak networth.
Consequent to the issue of Preference Share Capital during the years
2010-11 to 2012-13 aggregating to Rs.705 Crores in favour of The India
Cements Limited, the holding company, the networth of the Company has
increased substantially and the same was intimated to BIFR.
PUBLIC DEPOSITS
During the year under review, the Company has neither invited nor
accepted any public deposits within the meaning of Section 58A of the
Companies Act, 1956 read with the Companies (Acceptance of Deposits)
Rules, 1975. Also there were no outstanding public deposits at the
beginning or end of the year.
CONSERVATION OF ENERGY, ETC.
The prescribed details, as required under Section 217(1)(e) of the
Companies Act, 1956, are set out in the Annexure ''A''.
PERSONNEL
Industrial relations were cordial during the year.
The Company has no employee drawing a salary of Rs.5 lakhs per month or
above or which in aggregate was not less than Rs.60 lakhs during the
year.
DIRECTORS
With profound grief, the Board condoles the demise of Dr.B.S.Adityan
and Sri A.Sankarakrishnan, Directors of the Company, on 19th April,
2013 and 9th April, 2013 respectively. The Board records the excellent
contribution made by Dr.B.S.Adityan and Sri A.Sankarakrishnan during
their tenure as Directors of the Company.
Sri N.Srinivasan (Retd. Sr. Partner M/s. Fraser & Ross) was appointed
as a casual vacancy director in the place of Sri A.Sankarakrishnan with
effect from 20.05.2013.
Sri PL.Subramanian, Sri R.Srinivasan and Sri V.M.Mohan, retire by
rotation at the ensuing Annual General Meeting of the Company and are
eligible for re-appointment.
Brief particulars of Directors eligible for reappointment in terms of
Clause 49 of the Listing Agreement are annexed to the Notice convening
the 26th Annual General Meeting.
AUDITORS
M/s.Chaturvedi SK & Fellows, Chartered Accountants, Mumbai, Auditors of
the Company, retire at the ensuing Annual General Meeting and are
eligible for re-appointment.
Sri S.A.Murali Prasad, Cost Accountant, Chennai, has been appointed as
Cost Auditor for the year 2013-14 subject to approval by the Government
of India.
M/s.Brahmayya & Co., Chartered Accountants, Chennai, have been
appointed as Internal Auditors for the year 2013-14.
ACKNOWLEDGEMENT
The Directors are thankful to the Bankers for their continued support.
The Directors also thank the Central Government and the State
Governments for their support. The Directors are appreciative of the
performance of the stockists during the year. The continued dedication
and sense of commitment shown by the employees at all levels during the
year deserve special mention.
for and on behalf of the Board
Place: Chennai N.SRINIVASAN
Date:20th May, 2013 Chairman
Mar 31, 2012
The Directors have pleasure in presenting their Twenty fifth Annual
Report together with the audited accounts for the year ended 31st March
2012.
FINANCIAL RESULTS
(Rs. in Lakhs)
For the year
ended 31st March
2012 2011
Profit/(Loss) before Interest
& Depreciation 2680.57 92.60
Less: Interest 3543.22 879.07
Less: Depreciation 2820.78 513.53
Less: Forex Fluctuation Loss 497.62 -
Profit/(Loss) before Tax (4181.05) (1300.00)
Provision for Tax 0.00 0.00
Profit/(Loss) after Tax (4181.05) (1300.00)
DIVIDEND
In view of the loss incurred, your Directors do not recommend any
dividend for the year ended 31.03.2012.
SHARE CAPITAL
During the year, the Authorised Share Capital of the Company increased
to Rs.675 Crores from Rs.350 Crores. The Company has allotted
605,00,000 - 9% Non-Convertible Non-Cumulative Redeemable Preference
Shares of Rs.100/- each fully paid up, at par, amounting to Rs.605
Crores to The India Cements Limited, the holding company, in February
2012, on adjustment of outstanding loans / advances.
RIGHTS ISSUE
The Company deferred its decision on the proposed rights issue in view
of adverse market conditions.
DIRECTORS' RESPONSIBILITY STATEMENT
Your Directors make the following statement in terms of Section 217
(2AA) of the Companies Act, 1956:
"We confirm
1. That in the preparation of the accounts for the year ended 31st
March 2012, the applicable Accounting Standards have been followed.
2. That such Accounting Policies have been selected and applied
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 31st March 2012 and of the loss of the Company for
the year ended on that date.
3. 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.
4. That the annual accounts for the year ended 31st March 2012 have
been prepared on a going concern basis."
OPERATIONS
The performance of the Company has been discussed in detail in the
"Management Discussion and Analysis" section.
The Company's 1.5 million tonne per annum cement plant which commenced
its operations in January 2011 stabilized in stages and has crossed one
million tonne mark in its first full year of operation.
The 20 MW captive power plant has been commissioned during March 2012
and is expected to supply uninterrupted power during the current
financial year.
The capacity of the limestone stacker and reclaimer was enhanced during
the year after obtaining the additional area of land for that purpose.
During the second quarter of the financial year, the fly-ash handling
system at Wankbhori Thermal Power Plant in Gujarat was also
commissioned and has started supplying fly-ash to your Company.
With regard to acquisition of further lands for expansion and for
mining lease, necessary applications have been made and are being
processed by the State Government.
MANAGEMENT DISCUSSION AND ANALYSIS
Pursuant to Clause 49 of the Listing Agreement, a Management Discussion
and Analysis Report is given as addition to this report.
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement with Stock Exchanges, a
report on Corporate Governance along with Auditors' Certificate of its
compliance is included as part of the Annual Report of the Company.
FINANCIAL POSITION
The Company was discharged from the purview of SICA/BIFR by the Board
for Industrial and Financial Reconstruction (BIFR), vide its order
No.277/98 dated 17th March 2009. However, as per the audited annual
accounts as on 31st March 2010, the Company had become a potentially
sick company in terms of Section 23 of Sick Industrial Companies
(Special Provisions) Act, 1985 (SICA) and the prescribed form was filed
with BIFR on 11th October 2010. Even at the time of discharge of the
Company from the purview of SICA, the accumulated losses were more than
50% of the peak net worth and the status has been continuing since
then.
Consequent to the issue of Preference Share Capital as mentioned under
the heading 'Share Capital' elsewhere in the report, the networth of
the Company has increased substantially and the same was intimated to
BIFR in February 2012.
REGISTERED OFFICE
The Hon'ble Company Law Board, Western Region Bench, Mumbai, has passed
an order on 26th September 2011, confirming the shifting of the
Registered Office of the Company from the State of Maharashtra to the
State of Tamil Nadu. Consequently, the Registered Office of the Company
has been shifted to "Dhun Building", 827, Anna Salai, Chennai 600002,
with effect from 17th October 2011, after complying with requisite
formalities.
PUBLIC DEPOSITS
During the year under review, the Company has neither invited nor
accepted any public deposits within the meaning of Section 58A of the
Companies Act, 1956 read with the Companies (Acceptance of Deposits)
Rules, 1975. Also there were no outstanding public deposits at the
beginning or end of the year.
CONSERVATION OF ENERGY, ETC.
The prescribed details, as required under Section 217(1)(e) of the
Companies Act, 1956, are set out in the Annexure 'A'.
PERSONNEL
Industrial relations were cordial during the year.
The Company has no employee drawing a salary of Rs.5,00,000/- per month
or above or which in aggregate was not less than Rs.60 lakhs during the
year.
DIRECTORS
Mr.N.R.Krishnan, Mr.A.Sankarakrishnan, Mr.L.Sabaretnam and
Mr.T.S.Raghupathy retire by rotation at the ensuing Annual General
Meeting of the Company and are eligible for reappointment.
Brief particulars of Directors eligible for reappointment in terms of
Clause 49 of the Listing Agreement are annexed to the Notice dated
25.04.2012 convening the 25th Annual General Meeting.
AUDITORS
M/s.Chaturvedi SK & Fellows, Chartered Accountants, Mumbai, Auditors of
the Company, retire at the ensuing Annual General Meeting and are
eligible for reappointment.
Mr.S.A.Murali Prasad, Cost Accountant, Chennai, has been appointed as
Cost Auditor for the year 2012-13 subject to approval by the Government
of India.
M/s.Brahmayya & Co., Chartered Accountants, Chennai, have been
appointed as Internal Auditors for the year 2012-13.
ACKNOWLEDGEMENT
The Directors are thankful to the Bankers for their continued support.
The Directors also thank the Central Government and the State
Governments for their support. The Directors are appreciative of the
performance of the stock lists during the year. The continued
dedication and sense of commitment shown by the employees at all levels
during the year deserve special mention.
for and on behalf of the Board
Place: Chennai N.SRINIVASAN
Date : 25th April, 2012 Chairman
Mar 31, 2010
The Directors have pleasure in presenting their Twentythird Annual
Report together with the audited accounts for the year ended 31st March
2010.
FINANCIAL RESULTS:
(Rs.in Lakhs)
For the year
ended 31st March
2010 2009
Profit/(Loss) before Interest
& Depreciation 75.12 (568.49)
Less: Depreciation 7.37 11.72
Profit/(Loss) before tax and
exceptional items 67.75 (580.21)
Exceptional Items:
Interest Provision written back
on settlement of liabilities 0.00 65.15
Profit/(Loss) before tax 67.75 (515.06)
Provision for Tax 10.31 3.79
Profit/(Loss) after tax 57.44 (518.85)
DIVIDEND:
In view of the accumulated loss, your Directors do not recommend any
dividend for the year 2009-10.
DIRECTORS RESPONSIBILITY STATEMENT:
The Directors make the following statement in terms of Section 217
(2AA) of the Companies Act,1956 with respect to Directors
responsibility.
"We confirm
1. That in the preparation of the accounts for the year ended 31st
March, 2010, the applicable Accounting Standards have been followed.
2. That such Accounting Policies have been selected and applied
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and æ 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 ended on that date.
3. 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.
4. That the annual accounts for the year ended 31st March 2010 have
been prepared on a going concern basis."
OPERATIONS:
The Company has discontinued operations in the zinc division and the
cement division is yet to commence operations.
The sales and other incomes for the financial year under review were
Rs. 163.03 lakhs as against Rs. 36.35 lakhs in the previous financial
year. This mainly represents the profit made on sale of assets and
certain provisions written back during the year. The Company registered
the profit after tax of Rs.57.44 Lakhs, during the current financial
year as against loss of Rs.518.85 lakhs in the previous financial year.
PROJECT:
The Company is in an advanced stage of completing the 1.50 million
tonne per annum cement plant at Banswara, Rajasthan. The project is
estimated to cost Rs.600 Crores. The company has arranged a term loan
of Rs.300 crores to part finance the project and has availed Rs.160
crores out of this as on March 31, 2010. The Company has also proposed
to implement 20 MW thermal based power generation plant as part of the
cement project to secure the power requirements for the cement plant at
Banswara. The EPC contract in this regard has already been placed and
civil work has already commenced. The power plant is expected to be
completed during April -June 2011.
OPEN OFFER:
During the year, 1CL Financial Services Limited (ICLFSL), the wholly
owned subsidiary of The India Cements Limited, acquired 12.97% of the
equity shares of the Company and entered into a share purchase
agreement with the promoters of the Company to acquire an additional
39.73% of the equity shares of the Company. In terms of SEBI
(Substantial Acquisition of Shares and Takeover) Regulations, 1997
(Takeover Code) an open offer was made to non-promoter shareholders for
acquiring their shareholding subject to a maximum of 20% of the paid up
share capital of the Company at a price of Rs.22.50 per fully paid
share. All the formalities under the Takeover Code were completed and
ICLFSL presently holds 60.89% of Equity Share capital of the Company
(including 8.19% acquired under open offer). Consequent to the
acquisition of equity shares by ICLFSL, the Company has become a
subsidiary of ICLFSL and ultimate subsidiary of The India Cements
Limited.
MANAGEMENT DISCUSSION AND ANALYSIS:
Pursuant to Clause 49 of the Listing Agreement, a Management
Discussion and Analysis Report is given as addition to this report.
CORPORATE GOVERNANCE:
Pursuant to clause 49 of the Listing Agreement with Stock Exchanges, a
report on Corporate Governance along with Auditors Certificate of its
compliance is included as part of the Annual Report of the Company.
FINANCIAL POSITION:
As reported in the last year the company had fully settled its dues and
the liabilities to Financial Institutions and banks. In view of the
companys net worth exceeding the accumulated losses and the company no
longer being a sick company, it was discharged from the purview of
SICA/BIFR by the Board for Industrial and Financial Reconstruction
(BIFR) vide its order No.277/98 dated 17th March 2009.
As reported elsewhere in this report, The India Cements Limited, a
cement major based in south has acquired controlling interest in the
company through its subsidiary ICL Financial Services Limited,
consequent to which your company has become the ultimate subsidiary of
The India Cements Limited. The 1.5 million tonne cement project, which
is under commissioning is being funded by way of term loan of Rs.300
crores from a consortium of banks and the balance is being funded by
The India Cements Limited. While the funding from The India Cements
Limited is presently in the form of "loans and advances", the company
will be making a "Rights Issue" during the current year to repay a part
of these loans. After successful completion of the proposed Rights
Issue, the share capital of the company and hence the Net worth of the
company will go up considerably. As on 31st March 2010, the company had
an accumulated losses of Rs.35.15 crores and the net worth was Rs.43.68
crores, which was the peak net worth of the company in the preceding
four financial years. Since the accumulated losses are more than 50% of
the peak net worth, as per the relevant provisions of SICA, such fact
is to be put up for consideration and adoption by members of the
company and accordingly the relevant item has been included in the
notice convening the twentythird Annual General Meeting. It may be
mentioned here that even at the time of discharge of the company from
the purview of SICA, the accumulated losses were more than 50% of the
peak net worth and the status has been continuing since then. With the
successful completion of the proposed Rights Issue as indicated earlier
and also with the commissioning of the cement plant, the net worth of
the company is expected to go up considerably.
PUBLIC DEPOSITS:
During the year under review the Company has neither accepted nor
invited any public deposits within the meaning of Section 58A of the
Companies Act, 1956 read with the Companies (Acceptance of Deposits)
Rules, 1975. Also there are no outstanding public deposits at the end
of the year.
CONSERVATION OF ENERGY ETC.:
The particulars relating to conservation of energy and technology
absorption as stipulated in the Companies (Disclosure of Particulars in
the Report of the Board of Directors) Rules, 1988 are not applicable to
the company.
Total foreign exchange used and earned:
Current year Previous year
Used Rs./Crores 17.07 0
Earned RsVCrores 0 0
PERSONNEL:
The Company has no employee drawing a salary of Rs.2,00,000- per month
or above or which in aggregate was not less than Rs.24 lakhs during the
year.
DIRECTORS:
Consequent to divestment of share holdings by the previous Promoters,
the Board of Directors of the Company was reconstituted by appointing
the following persons as additional Directors:
- Mr.N.Srinivasan, Mr.T.S.Raghupathy, Mr.PL.Subramanian,
Mr.R.Srinivasan and Mr.V.M.Mohan w.e.f. 9* October 2009;
- Dr.B.S.Adityan, Mr.Arun Datta, Mr.R.K.Das, Mr.N.R.Krishnan and
MrASankarakrishnan w.e.f. 25th March 2010; and
- Mr.LSabaretnam w.e.f. 28th May 2010.
As per the provisions of Section 260 of the Companies Act, 1956, the
aforesaid directors will hold their offices upto the date of the
ensuing Annual General Meeting. The Company has received requisite
notices in writing from members proposing the appointment of the above
additional directors as Directors liable to retire by rotation and
resolutions for their election as directors of the Company are included
under "Special Business" in the Notice dated 13th August, 2010
convening the 23rd Annual General Meeting of the Company.
Information on Directors eligible for appointment in terms of Clause 49
of Listing Agreement is annexed to the Notice convening the 23rd Annual
General Meeting.
During the year, the following Directors representing the previous
promoters resigned from the Board.
- Mr.Manoj Agrawal, Mr.B.L.Kakrecha, Col.Nitin Bhatnagar and Mr.Ritesh
Lunkad w.e.f. 9th October 2009 and
- Mr.Sanjay Agrawal and Mr.Surendra Kumar Nuwal w.e.f. 13th January
2010.
The Board expresses its appreciation of the contributions made by them
during the tenure of their directorships.
REGISTERED OFFICE:
During the year, the Registered office of the Company was shifted from
601, Ravi Building, 189/191, Dr.D.N. Road, Near Central Camera House,
Fort, Mumbai 400 001 to No.8, 2nd Floor, Kamanwala Chambers, Opp.
Bombay Stores, Sir.P.M.Road, Fort, Mumbai 400001.
AUDITORS:
M/s.Chaturvedi SK & Fellows, Chartered Accountants, Mumbai, Auditors of
the Company, retire at the ensuing Annual General Meeting and are
eligible for re-appointment.
ACKNOWLEDGEMENT:
The Directors are thankful to the Bankers for their continued support..
The Directors also thank the Central Government and the State
Governments for their support. The continued dedication and sense of
commitment shown by the employees at all levels during the year deserve
special mention.
for and on behalf of the Board
Place: Chennai N. SRINIVASAN
Date : 13th August, 2010 Chairman
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