Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting the sixty-eighth annual
report on the business and operations of the Company and the accounts
for the financial year ended 31st March, 2015.
HIGHLIGHTS OF PERFORMANCE
The comparative figures on the Company's financial performance on
stand-alone and consolidated basis are detailed hereunder:
(Rs. In Lacs)
CONSOLIDATED STANDALONE
Particulars
2015 2014 2015 2014
Revenue from Operations
(Net) and other 129941.65 135430.18 124026.64 129033.04
income
Profit Before Tax (PBT) (5836.13) (3957.09) (4737.24) (3909.36)
Provision for Tax 1557.78 (2183.89) (1065.18) 2180.59
Profit After Tax (PAT) (4278.35) (6140.98) (3672.06) (6089.95)
Balance brought forward
from previous year (1074.44) 5178.38 (672.08) 5417.87
Transferred to Fixed
Assets on useful life (545.32) - (23.36) -
Dividend (29.33) (102.65) - -
Corporate Tax on Dividend (5.97) (17.44) - -
General Reserve
Surplus carried to the
next year's account (5933.41) (1082.69) (4367.50) (672.08)
The Company proposes to transfer an amount of Rs. NIL to the General
Reserves. An amount of Rs. NIL is proposed to be retained in the
Statement of Profit and Loss. .
SHARE CAPITAL
The paid up Equity Share Capital as on 31st March, 2015 was Rs. 1469.52
lacs. During the year under review, the Company has not issued shares
with differential voting rights nor granted stock options nor sweat
equity.
FINANCE
Cash and cash equivalent as at March 31, 2015 was Rs.5005.64 lacs. 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.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Details of Loans, Guarantees and Investments covered under the
provisions of Section 186 of the Companies Act, 2013 are given in the
notes to the Financial Statements.
OPERATIONS AND OUTLOOK
During the year under review, a prolonged demand slump and growing
interest cost has affected the performance of your Company. The sales
and other receipts declined by 3.88% YOY to Rs.124026.64 lacs. EBITDA
dropped by 24.14% YOY to Rs. 1430.15 lacs and PAT increased by 39.70%
YOY to Rs.(3672.06) lacs. As in the past during the current year also
there were drastic power cuts consequently affecting our costs and also
the production. The other additional Power Plant of 35 MW capacity is
under implementation and expected to commence its commercial operation
shortly.
Some or the (actors attributable to the decline / changes in the profit
margins and their impact on the performance of your Company are given
hereunder;
The decline in demand for steel in India during the previous two years
has caused significant impact on the revenues of your Company. The
Government of India had earlier envisaged that the growth in steel
consumption to be over 10% based on which additional capacities in
steel industry were established in the country. However, due to the
lack of demand, the offtake has been much below the anticipated sales.
Hence,the turnover in steel has come down causing impact on the profit
margins of your Company.
There has also been pressure on pricing the goods due to the lack of
demand. The dumping of steel in India by China also contributed in
pricing the products of your Company at low value.
The other factors that impacted the revenues and the profit margins
were high cost of raw materials without any commensurate increase in
the selling prices of steel and steel products. The increase in the
manufacturing overheads in synthetic division on account of high cost
of raw materials also affected the performance of your Company.
The resulting losses were being offset by increased profitability
derived from the power division. Your Company was able to contain the
losses by means of better cost management and reduction in interest
costs despite increased interest bearing debts on account of Corporate
Debt restructuring the company underwent during the year.
DIVIDEND
The Directors do not recommend any Dividend for the year under review
on account of losses incurred during the year.
MATERIAL CHANGES AND COMMITMENTS
There are no material changes and commitments, affecting financial
position of the Company which have occurred between the end of the
financial year of the Company i.e March 31, 2015, and the date of the
Directors' Report.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an Internal Control System, commensurate with the size,
scale and complexity of its operations. To maintain its objectivity and
independence, the Internal Audit function reports to the Chairman of
the Audit Committee of the Board. The Internal Audit Department
monitors and evaluates the efficacy and adequacy of internal control
system in the Company, its compliance with operating systems,
accounting procedures and policies at all locations of the Company and
its subsidiaries. Based on the report of internal audit function,
process owners undertake corrective action in their respective areas
and thereby strengthen the controls. Significant audit observations and
corrective actions thereon are presented to the Audit Committee of the
Board.
SUBSIDIARIES, JOINT VENTURE AND ASSOCIATE COMPANIES
The subsidiaries of the Company as on 31st March, 2015 are as follows :
Cosmic Global Limited, Tulsyan Power Limited, Chitrakoot Steel and
Power Private Limited, Balaji Engineering & Galvanizing Limited, Color
Peppers Media Private Limited and TG Logistics Private Limited.
Performance of Subsidiaries
Cosmic Global Limited
Cosmic Global Limited, a subsidiary company of the Company is engaged
in the business of providing services for clients through high speed
telecommunications, computer networking, satellite communication or
directly at the client's site for any kind of data analysis, data
processing, data conversion, software development, software debugging,
software testing and analysis, handling telephonic inquiries, training
people in any of the above or any other related areas.
Tulsyan Power Limited
Tulsyan Power Limited, a subsidiary company of the Company was
incorporated with a view to engage itself in the business of
development, establish, own, operate and maintain power plants of all
types and capacities including thermal, hydro, 'gas, renewal energy
(such as photovoltaic, wind mill, etc.) and/or any other means and to
generate and supply power to the public and private companies and/or
boards in India. The company has not yet commenced any commercial
activity.
Chitrakoot Steel and Power Private Limited Chitrakoot Steel and Power
Private Limited, a wholly- owned subsidiary of the Company was
incorporated with the view to establish, own or acquire ferrous and
non-ferrous metal melting furnaces, sponge iron units, etc and also to
carry on business as traders & manufacturers of sponge iron.
Balaji Engineering & Galvanizing Limited Balaji Engineering &
Galvanizing Limited, a subsidiary company of the Company was
incorporated with the view to engage itself in the business of
engineering, fabrication of electrical post and towers and galvanizing
steel and to undertake the business as iron-masters, iron and steel
makers, steel converters and steel fabricators; also as manufacturers
of dealers in ferrous and non-ferrous castings and forgings of all
types. The company has not commenced commercial activity till date.
Color Peppers Media Private Limited
Color Peppers Media Private Limited, a wholly- owned subsidiary of the
Company deals in Intellectual Property Management and Marketing
Solutions.
TG Logistics Private Limited
TG Logistics Private Limited, a wholly-owned subsidiary of the Company
engaged in the business of Logistics, customs clearing and forwarding
agents including import cargo clearance and Export cargo clearance.
As on the date of this report, the Company has no joint ventures and
associate companies as defined in the provisions of the Companies Act,
2013 and the Rules made thereunder.
A report on the performance and financial position of each of the
subsidiaries, associate and joint venture companies as per the
Companies Act, 2013 is provided as Annexure A to the Consolidated
Financial Statement and hence not repeated here for the sake of
brevity.
In accordance with third proviso to Section 136(1) of the Act, the
Annual Report of the Company, containing therein its standalone and the
consolidated financial statements are available on Company's website
www.tulsyannec.in.
Further, as per fourth proviso to the said Section, the audited annual
accounts of each of the said subsidiary companies of the Company are
also available in the Company's website www.tulsyannec.in. Any
shareholder who may be interested in obtaining a copy of the aforesaid
documents may write to the Company Secretary at the Company's
Registered / Corporate Office. Further, please note that the said
documents will be available for examination by the shareholders of the
Company at its Registered / Corporate Office during business hours.
DEPOSITS
The Company has complied with the provisions of Section 74(2) of the
Companies Act, 2013 by making an application to the Tribunal / Company
Law Board seeking extension of time for repayment of unsecured loans
deemed as deposits as per the provisions of the Companies (Acceptance
of Deposits) Rules, 2014. The Company proposes to seek fresh approval
of shareholders in accordance with the provisions of section 73 of the
Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules,
2014.
The details relating to deposits, covered under Chapter V of the Act,-
(a) Accepted during the year;
Rs.26,16,97,484.00
(b) Remained unpaid or unclaimed as at the end of the year;
Rs. 14,36,80,320.50
(c) Whether there has been any default in repayment of deposits or
payment of interest thereon during the year and if so, number of such
cases and the total amount involved-
(i) At the beginning of the year;
NIL
(ii) Maximum during the year;
NIL
(iii) At the end of the year;
NIL
(iv) The details of deposits which are not in compliance with the
requirements of Chapter V of the Companies Act, 2013
The Company has made an application with the Company Law Board (CLB)
seeking extension of time for repayment of unsecured loans deemed as
deposits as per the provisions of the Companies Act, 2013. The Company
is awaiting order from CLB.
RELATED PARTY TRANSACTIONS
All related party transactions that were entered into during the
financial year were on an arm's length basis and were in the ordinary
course of business. There are no materially significant related party
transactions made by the Company with Promoters, Directors, Key
Managerial Personnel or other designated persons which may have a
potential conflict with the interest of the Company at large.
The transaction with a related party shall be considered material if
the transaction / transactions to be entered into individually or taken
together with previous transactions during a financial year exceeds ten
percent of the annual consolidated turnover of the Company as per the
last audited financial statements of the Company.
All Related Party Transactions are placed before the Audit Committee as
also the Board for approval.
The policy on Related Party Transactions as approved by the Board is
uploaded on the Company's website. None of the Directors have any
pecuniary relationships or transactions vis-a-vis the Company.
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 I in compliance of provisions of Section 134(3)(h) of
the Companies Act, 2013.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no significant material orders passed by the Regulators /
Courts which would impact the going concern status of the Company and
its future operations.
AUDITORS Statutory Auditors
Messrs C.A. Patel & Patel, Chartered Accountants, Chennai, having Firm
Registration No.005026S, have been appointed as statutory auditors of
your Company for a period of three consecutive years in the last annual
general meeting of the Company held on 30th September, 2014.
As per the provisions of the Companies Act, 2013, the said appointment
is required to be ratified at every annual general meeting of the
Company. The Board at its meeting held on 28lh August, 2015 has
approved the appointment of Messrs C.A. Patel & Patel, Chartered
Accountants, Chennai, having ICAI Firm Registration No.005026S, as
statutory auditors of the Company for the FY 2015-16 subject to
ratification by shareholders at the annual general meeting of the
Company.
COST AUDITOR
Pursuant to Section 148 of the Companies Act, 2013 read with The
Companies (Cost Records and Audit) Amendment Rules, 2014, the cost
audit records maintained by the Company in respect of Billets & TMT
Bars - Steel and PP Woven sacks & Woven Fabric: Organic & In-organic
Chemicals is required to be audited. Your Directors had, on the
recommendation of the Audit Committee, appointed Messrs Murthy & Co.
LLP, Cost Accountants (Membership No. 7568), to audit the cost accounts
of the Company for the financial year 2015-16 on a remuneration of
Rs.70,000 (Rupees Seventy Thousand only).
As required under the Companies Act, 2013, the remuneration payable to
the cost auditor is required to be placed before the Members in a
general meeting for their ratification. Accordingly, a Resolution
seeking Member's ratification for the remuneration payable to Messrs
Murthy & CO. LLP. Cost Auditors is included at Item No.4 of the Notice
convening the Annual General Meeting.
The Company has also received necessary certificate under Section 141
of the Act 2013 conveying his eligibility for re-appointment. The
remuneration fixed by the board, based on the recommendation of the
audit committee is required to be ratified by the members at the AGM as
per the requirement of Section 148(3) of the Act 2013.
SECRETARIAL AUDIT
Pursuant to the provisions of Section 204 of the Companies Act, 2013
and The Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Company has appointed M/s M. Damodaran &
Associates, a firm of Company Secretaries in practice, to undertake the
Secretarial Audit of the Company. The Secretarial Audit Report is
annexed herewith as Annexure II.
EXTRACT OF THE ANNUAL RETURN
The extract of the annual return as provided under sub section (3) of
section 92 of the Companies Act, 2013 in Form No. MGT - 9 forming part
of the Board's report is enclosed as Annexure III with the report in
compliance of section 134 of the Companies Act, 2013.
HUMAN RESOURCES
Your Company has taken many initiatives to support business through
organizational efficiency, process change support and various employee
engagement programmes which has helped the Organization achieve higher
productivity levels. Your Company takes pride in the commitment,
competence and dedication shown by its employees in all areas of its
business. It considers people as its biggest assets. A significant
effort has also been undertaken to develop leadership as well as
technical / functional capabilities in order to meet future talent
requirement.
DIRECTORS:
The Ministry of Corporate Affairs (MCA) has notified majority of the
provisions inter alia provisions relating to selection, manner of
appointment, roles, functions, duties, re-appointment of independent
directors (IDs) and the relevant rules under the Companies Act, 2013
(the Act 2013) and made them effective 1st April 2014. The existing
composition of the Company's Board is in conformity with the
applicable provisions of the Act 2013 and Clause 49 of the Listing
Agreement having the following directors as non-executive IDs, namely
Mr.C.Ramachandran, Mr. P.T. Rangamani and Mrs. Kalyani Venkatesan.
A) Changes in Directors and Key Managerial Personnel
Shri R.P. Shanthakumar, Chartered Accountant, (Membership No.027941)
has been appointed as Chief Financial Officer of the Company with
effect from 21st April, 2015.
Smt. Kalyani Venkatesan has'been appointed as additional Director on
the Board of the Company at the Board meeting held on 13th February,
2015 subject to approval of shareholders at the annual general meeting.
Shri S. Ramakrishnan, a Non-Executive Independent Director of the
Company resigned from the Board on 1st October, 2014.
Shri V. Kirubanandan, a Non-Executive Independent Director of the
Company resigned from the Board on 25th March, 2015.
Shri A.P. Venkateswaran, whole-time Director (Finance & Accounts)
resigned from the Board on 29th May, 2015.
The name of the director who is liable to retire by rotation
In terms of the provisions of sub-section (6) read with explanation to
Section 152 of the Act 2013, two-third of the total number of directors
i.e., excluding IDs, are liable to retire by rotation and out of which,
one-third is liable to retire by rotation at every annual general
meeting.
Accordingly, Shri Sanjay Tulsyan, Managing Director, is, therefore,
liable to retire by rotation, at the ensuing AGM, and being eligible,
offers himself for re-appointment. The brief resume of this Director
proposed to be appointed and re-appointed and other relevant
information have been furnished in the Notice convening the AGM. An
appropriate resolution for his appointment / re-appointment is being
placed for approval of the members at the AGM. The Board, therefore,
recommends his appointment / re-appointment as Director of the Company
liable to retire by rotation.
B) Declaration by an Independent Director(s) and re-appointment, if any
All Independent Directors have given declarations that they meet the
criteria of independence as laid down under Section 149(6) of the
Companies Act, 2013 and Clause 49 of the Listing Agreement.
Smt. Kalyani Venkatesan has been appointed as Additional Director on
the Board of the Company at the Board meeting held on 13th February,
2015 subject to approval of shareholders at the annual general meeting.
In terms of the provisions of Section 149(10) read with Section 149(5)
of the Act 2013, IDs are eligible to hold office for a term upto five
consecutive years on the board and eligible for re-appointment for the
second term on passing special resolutions by the Company. During the
period, they will not be liable to 'retire by rotation' as per the
provisions of Sections 150(2), 152(2) read with Schedule IV to the Act
2013.
It is, therefore, proposed to appoint Smt. Kalyani Venkatesan as
Independent Director for a consecutive period of five years at the AGM.
Necessary declarations have been obtained as envisaged under the
Companies Act 2013.
Both the Nomination and Remuneration Committee and the Board also
ensured that her appointment as ID are in compliance with the
requirements under the relevant statutes and that there were
appropriate balance of skills, experience and knowledge in the board,
so as to enable the Board to discharge its functions and duties
effectively.
Notices in writing signifying the intention to offer her candidature as
ID of the Company along with the requisite deposit has been received
from the member of the Company in terms of Section 160 of the Act 2013.
C) FORMAL ANNUAL EVALUATION
The manner in which formal annual evaluation has been made by the Board
of its own performance and that of its committees and individual
Directors is disclosed in the report on Corporate Governance.
RISK MANAGEMENT POLICY
In compliance with Section 134 (3) (n) of the Companies Act, 2013 and
Clause 49 (VI) of the Listing Agreement, the Company has developed Risk
Management Policy in order to lay down risk assessment and minimisation
procedures.
The Board of Directors of your Company oversee the development of Risk
Management Policy and the establishment, implementation and monitoring
of the Company's risk management system, in accordance with the
policy.
The Chairman / Managing Director have the responsibility for
identifying, assessing, monitoring and managing risks. They are also
responsible for identifying any material changes to the Company's
risk profile and ensuring, with approval of the Board, the risk profile
of the Company is updated to reflect any material changes. The
implementation of the risk management system and day-to-day management
of risk is the responsibility of the Chairman / Managing Director, with
the assistance of senior management, as required.
The Chairman is required to report to the Board as to the effectiveness
of the Company's management of its material business risks on a
regular basis.
The Heads of respective Departments of the Company shall be responsible
for implementation of the risk management system as may be applicable
to their respective areas of functioning and report to the Chairman /
Managing Director.
The Company considers that any risk that could have a material impact
on its business should be included in its risk profile.
The areas of risk include:
a. Raw Material Risk
b. Quality Risk
c. Technology Risk
d. Competition Risk
e. Financial Risk including Foreign Exchange Risk
f. Realisation Risk
g. Cost Risk
h. Legal Risk
The Foreign Exchange Risk Management Policy of the Company forms part
of this policy.
The key risk management process would include
i. Risk Identification
ii. Assessment of identified risk
iii. Risk measurement
iv. Risk mitigation
v. Monitoring of the risk mitigation efforts
vi. Risk reporting and disclosures
vii. Integration with strategy and business plan
ROLE OF AUDIT
A strong and independent Internal Audit Function at the corporate level
carries out risk focussed audits across all businesses, enabling
identification of areas where risk management processes may need to be
improved. The Audit Committee of the Board reviews Internal Audit
findings, and provides strategic guidance on internal controls. It also
monitors the internal control environment within the Company and
ensures that Internal Audit recommendations are effectively
implemented.
RESPONSIBILITY TO STAKEHOLDERS
The Company considers the reasonable expectations of stakeholders
particularly with a view to preserving the Company's reputation and
success of its business.
Factors which affect the Company's continued good standing are
included in the Company's risk profile.
CONTINUOUS IMPROVEMENT
The Company's risk management system is always evolving. It is an
ongoing process and it is recognised that the level and extent of the
risk management system will evolve commensurate with the development
and growth of the Company's activities. The risk management system is a
"living" system and the documentation that supports it will be
regularly reviewed and updated in line with the Company's objectives.
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors' Responsibility Statement referred to in clause (c) of
sub-section (3) of Section 134 of the Companies Act, 2013, shall state
thatÂ
a) in the preparation of the annual financial statement for the year
ended March 31,2015, the applicable accounting standards had been
followed along with proper explanation relating to material departures;
b) the directors had 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 and loss
of the company for that period;
c) the directors had 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 had prepared the annual accounts on a going concern
basis; and
e) the directors had laid down internal financial controls to be
followed by the company and that such internal financial controls are
adequate and were operating effectively.
f) the directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
CORPORATE GOVERNANCE
The Company has been practising the principles of good corporate
governance over the years and lays strong emphasis on transparency,
accountability and integrity. A separate section on Corporate
Governance and a certificate from the Auditors of the Company regarding
compliance of conditions of Corporate Governance as stipulated under
Clause 49 of the Listing Agreement(s) with the Stock Exchange(s) form
part of this Annual Report.
The Managing Director and the Chief Financial Officer of the Company
have certified to the Board on financial statements and other matters
in accordance with Clause 49 (V) of the Listing Agreement pertaining to
CEO/CFO certification for the financial year ended 31st March 2015.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A detailed analysis of the Company's operational and financial
performance as well as the initiatives taken by the Company in key
functional areas such as Human Resources and Industrial Relations is
separately discussed in the Management Discussion and Analysis Report,
which forms part of this Annual Report.
INFORMATION TECHNOLOGY
The Company has been using ERP for integrating its various business
processes within the Company and its business partners. The Company
continued to implement several projects in supply chain to improve its
efficiency and transparency.
VIGIL MECHANISM / WHISTLE BLOWER POLICY
The Company has a vigil mechanism named Whistle Blower Policy to deal
with instance of fraud and mismanagement, if any. The details of the
Whistle Blower Policy is explained in the Corporate Governance Report
and also posted on the website of the Company.
CORPORATE SOCIAL RESPONSIBILITY (CSR) INITIATIVES
The average of net profits as prescribed under the Companies Act, 2013
was found to be negative and hence your Company was not in a position
to spend or make any contribution for the social welfare activities
during the year under review. The Annual Report on CSR activities is
enclosed as Annexure IV.
CONSOLIDATED FINANCIAL STATEMENTS
Pursuant to Section 129 of the Act, the Company has prepared
consolidated financial statements of the Company, which shall be laid
before the ensuing 68th Annual General Meeting of the Company along
with the laying of the Company's Financial Statement under
sub-section (2) of Section 129 of the Act i.e. Standalone Financial
Statement of the Company. Further, pursuant to the provisions of
Accounting Standard 21, Consolidated Financial Statements notified
under Section 133 of the Act, read together with Rule 7 of the
Companies (Accounts) Rules, 2014, issued by the Ministry of Corporate
Affairs, the Consolidated Financial Statements for the financial year
ended 31st March, 2015, form part of this Annual Report.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information on conservation of energy, technology absorption and
foreign exchange earnings and outgo stipulated under Section 134(3)(m)
of the Companies Act, 2013 read with Rule, 8 of the Companies
(Accounts) Rules, 2014, is annexed herewith as Annexure V.
PARTICULARS OF EMPLOYEES
The ratio of the remuneration of each director to the median
employees' remuneration and other details in terms of Section 197(12)
of the Act with Rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 ("the Rules"),
forms a part of this Annual Report as Annexure VI.
The Company had 2 employees who were employed throughout the year and
were in receipt of remuneration more than Rs.60 lacs per annum. In
terms of Section 136 of the Companies Act, 2013, the copy of the
financial statements of the Company, including the consolidated
financial statements, the auditors' report and relevant annexures to
the said financial statements and reports are being sent to the Members
and other persons entitled thereto, excluding the information in
respect of the said employees containing the particulars as specified
in Rule 5(2) of the said Rules, which is available for inspection by
the Members at the Company's Registered / Corporate Office during
business hours on working days of the Company up to the date of the
ensuing Annual General Meeting. If any Member is interested in
obtaining a copy thereof, he may write to the Company Secretary of the
Company at its Registered / Corporate Office. The financial statements,
reports etc. of the Company are available on the website of the Company
www.tulsyannec.in.
ACKNOWLEDGEMENT
The directors thank the bankers, investing institutions, customers and
various stakeholders for their valuable support and assistance. The
directors wish to place on record their appreciation of the very good
work done by all the employees of the Company during the year under
review. The directors also thank the investors for their continued
faith in the Company.
For and on behalf of the Board
Lalit Kumar Tulsyan
Executive Chairman
Place: Chennai
Date : 28th August, 2015
Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting the sixty-seventh annual
report and the audited accounts for the year ended 31st March, 2014.
Financial Highlights
Rupees in Lakhs
Particulars 2013-2014 2012-2013
Profit before Depreciation (1247.81) 1404.51
and tax
Less: Depreciation 2168.37 901.69
Profit for the year before
Exceptional Items (3416.18) 502.82
Less: Exceptional Items 493.18 -
Profit for the year (3909.36) 502.82
Less: Provision for Current Tax - 97.65
Deferred Tax 2180.59 25.40
Add: Surplus brought forward 5417.87 5129.76
Amount available for (672.08) 5509.53
Appropriations
Appropriations:
Dividend - 57.36
Corporate Tax on Dividend - 9.30
General Reserve - 25.00
Balance Carried Forward (672.08) 5417.87
OPERATIONS AND OUTLOOK
During the year under review, a prolonged demand slump and growing
interest cost has affected the performance of your Company. The sales
and other receipts grew 11.87% YOY to Rs.129033.04 lakhs. EBITDA
dropped by 12.46% YOY to Rs.5923.75 lakhs.
As in the past during the current year also there were drastic power
cuts consequently affecting our costs and also the production. The
other additional Power Plant of 35 MW capacity is under implementation
and expected to commence its commercial operation shortly.
Some of the factors attributable to the decline in the profit margins
and their impact on the performance of your Company are given
hereunder;
Late implementation of Power Plant:
Despite achieving Commercial Operation during December 2012,
synchronization of the Power Plant with Grid was achieved by end of
July 2013. This delay was attributable to the right of way issue
prevailed while laying the transmission towers from Power Plant to TNEB
Substation. The Company had installed 48 towers instead of 30 towers as
per norms of TNEB on account of right of way issue - a critical factor
that had caused delay in implementing the project. Further, the
uncertainty and high cost associated in Grid Connectivity had also
delayed the whole process of Commercial production by one year. This
total delay of one year resulted into loss of Revenue.
Operational inefficiency in Wire Rod:
Your Company has shifted the entire operation of TMT Rod from its
Ambattur unit to Gummidipoondi unit and been installing new technology
for Wire Rod, a value added product of TMT Bars. This production of
wire rods results in saving handling cost and reduces the end cutting
wastages.
However, the equipments imported by the Company had not been performing
at its optimum level. Your Company had entered into contract with
Morgardshammar AB of Sweden for setting up of Wire Rod Machine and with
Sund Birsta, Sweden for setting up the handling equipment. Both the
Companies are renowned names among the Steel Manufacturing and in the
past supplied the equipment to other steel competitors in Indian
Market. The output at desired level could not be achieved on account of
fault in handling equipments. This has further resulted in production
loss and revenue loss. The vendors have acknowledged the fault and
started working to resolve the defects and deficiencies in the
equipments.
Increase in the Interest Cost due to delay in the Project:
The base rate of your Company''s bankers has remained at higher level.
The much anticipated decrease in the interest rate has not been
materialized leading to high interest cost. Further, the delay in the
setting up of the Company''s Power Plant and delay in stabilization of
Wire Rod division, both have contributed for the revenue loss. The
payments of standing finance costs to the Bankers by way of interest on
Term Loan / working capital during the periods of delay in the
implementation of the power plant / operation of wire rod unit further
resulted into revenue loss.
Foreign Exchange fluctuation:
Your Company had imported Scrap and Coal approximately 234861.619 MT.
Despite entering into forward booking contract, the foreign exchange
fluctuations prevailed during FY 2013-14 impacted the Company''s revenue
to a greater extent and resulted into loss in revenue.
The price of steel scrap has remained stable whereas the price of TMT
bars has been dropped. This has led to the shrunk in the gap between
the price of the raw material and the finished product thereby causing
significant decline in the profit margins. The off-take of steel has
been very bad as the steel companies which were anticipated to grow
close to 7% per year have grown only close to 1% thereby creating
excess capacity in the country causing the steel prices to become
lower.
The growth in the steel market is expected to be muted in the short
term on account of poor growth in core consumer sectors such as
infrastructure and construction. Domestic steel prices are also
influenced by trends in raw material prices, demand - supply conditions
in the market, international price trends among others. The steel
industry is characterized by high capital intensity, high dependence on
bulk raw materials, cyclical growth trends, perpetual over- capacity
and relatively low profitability.
The Indian economy was expected to grow at 10% and the steel
consumption was expected to increase by 12% annually. However, the
country''s growth has come down to 4.5% and the steel consumption has
increased by meagre 2% only. This has caused the problem of over
capacity.
Since 2008, the global economies, including India, have experienced a
significant turbulence and uncertainty. Despite some stability coming
back from actions taken in response to the emerging challenges
worldwide, the global economic recovery remains fragile. This has
affected the growth path of the Indian steel industry in more than one
ways. The world witnessed volatility in commodity prices, more
particularly in the case of those related to the steel industry such as
iron ore, coking coal, nickel, manganese ores, and non-coking coal.
This left a profound impact on the steel industry globally since 2008
and running into 2014. Also, during this period, global steel
production and consumption growth have slowed down and the world is
faced with an excess capacity in crude steel making to the tune of over
550 million tones. While the Indian steel demand and production have
grown steadily till 2011-12, the same also has lost pace in the past
two years.
DIVIDEND
The Directors do not recommend any Dividend for the current year.
DIRECTORS
During the year, the Ministry of Corporate Affairs (MCA) has notified
majority of the provisions inter alia provisions relating to selection,
manner of appointment, roles, functions, duties, re-appointment of
Independent Directors (IDs) and the relevant rules under the Companies
Act, 2013 (the Act 2013) and made them effective 1st April 2014. The
existing composition of the Company''s Board is fully in conformity with
the applicable provisions of the Act 2013 and Clause 49 of the Listing
Agreement having the following directors as non-executive IDs, namely
Mr.C.Ramachandran, Mr. V. Kirubanandan, Mr. S. Ramakrishnan and Mr.
P.T. Rangamani.
In terms of the provisions of Section 149(10) read with Section 149(5)
of the Act 2013, IDs are eligible to hold office for a term upto five
consecutive years on the Board and eligible for re-appointment for the
second term on passing special resolutions by the Company. Further as
per SEBI Circular Ref.No.CIR/CFD/POLICY CELL/2/2014 dated 17th April
2014, a person who has already served as an Independent Director for
five years or more in a company as on October 1, 2014 shall be eligible
for appointment, on completion of his present term, for one more term
of up to five years only.
During the period, they will not be liable to ''retire by rotation'' as
per the provisions of Sections 150(2), 152(2) read with Schedule IV to
the Act 2013. It is, therefore, proposed to appoint them as IDs for a
consecutive period of five years at the AGM. Necessary declarations
have been obtained from them, as envisaged under the Act 2013.
Both the Nomination and Remuneration Committee and the Board also
ensured that their appointments as IDs are in compliance with the
requirements under the relevant statutes and that there were
appropriate balance of skills, experience and knowledge in the Board,
so as to enable the Board to discharge its functions and duties
effectively.
Notices in writing signifying the intention to offer their candidatures
as IDs of the Company along with the requisite deposit have been
received from members of the Company in terms of Section 160 of the Act
2013. In terms of the provisions of sub-section (6) read with
explanation to Section 152 of the Act 2013, two-third of the total
number of Directors i.e., excluding IDs, are liable to retire by
rotation and out of which, one-third is liable to retire by rotation at
every annual general meeting.
Accordingly, Mr Lalit Kumar Tulsyan, Chairman and Executive Director of
the Company, is, therefore, liable to retire by rotation, at the
ensuing AGM, and being eligible, offers himself for re-appointment. The
brief resume of this Director proposed to be appointed and re-appointed
and other relevant information have been furnished in the Notice
convening the AGM. An appropriate resolution for his appointment/
re-appointment is being placed for approval of the members at the AGM.
The Board, therefore, recommends his appointment / re-appointment as
Director of the Company.
AUDITORS
Statutory Auditors
The Statutory Auditors of the Company, retire at the ensuing Annual
General Meeting of the Company and are being eligible, offer themselves
for re-appointment.
As per the provisions of Section 139 (1) and (2) of the Act 2013, the
statutory auditors are required to be appointed for a term of five
consecutive years i.e., till the conclusion of sixth annual general
meeting and ratify their appointment, during the period, in every
annual general meeting by an ordinary resolution. The period for which
any firm has held office as auditor prior to the commencement of the
Act 2013 will be taken into account for calculating the period of five
consecutive years, as per the fourth proviso to Section 139(2) of the
Act 2013 read with Rule 6(3) of the Companies (Audit and Auditors)
Rules, 2014.
Further, as per Companies (Audit and Auditors) Rules 2014, in case of
an audit firm that has been functioning as auditor in the Company for a
period of 10 years or more, then the maximum number of consecutive
years that the firm may be appointed in the Company shall be 3 years.
Hence, the appointment and rotation of M/s. C.A. Patel & Patel,
Chartered Accountants, Chennai, who were earlier appointed as statutory
auditors of the Company, at the annual general meeting held on 23rd
September, 2013, shall now be governed by the provisions of section 139
of the Companies Act, 2013, and the provisions of Rule 6(3) of the
Companies (Audit and Auditors) Rules, 2014.
Accordingly, Messrs. C.A. Patel & Patel, Chartered Accountants,
Chennai, having Firm Registration No.005026S allotted by the Institute
of Chartered Accountants of India, are eligible to be re-appointed as
statutory auditors of the Company to hold office from the conclusion of
this Annual General Meeting for three consecutive years, subject to
ratification at every annual general meeting.
The Company has obtained necessary certificate under Section 141 of the
Act 2013 from the auditor conveying their eligibility for the above
appointment. The Audit Committee and Board reviewed their eligibility
criteria, as laid down under Section 141 of the Act 2013 and
recommended their appointment as Statutory Auditors for the aforesaid
period.
Cost Auditor
As required under the Companies (Cost Accounting Records) Rules 2011,
the Company filed the Cost Audit Report for the financial year 2012-13
in XBRL format.
As per Companies (Audit and Auditors) Rules 2014, the Board is required
to appoint an individual, who is a cost accountant in practice, or a
firm of cost accountants in practice, as cost auditor on the
recommendations of the Audit committee, which shall also recommend
remuneration for such cost auditor. Further, the remuneration
recommended by the Audit Committee shall be considered and approved by
the Board of Directors and ratified subsequently by the shareholders.
Accordingly, the Board at its meeting held on 30th June, 2013 has
appointed M/s Murthy & Co. LLP, Cost Accountants (Membership No. 7568),
as Cost Auditor of the Company for conducting the Cost Audit for the
financial year 2014-15. The audit committee at its meeting held on 30th
June, 2013 has recommended his appointment and remuneration subject to
the compliance of all the requirements as stipulated in circular no.
15/2011 dated 11th April 2011 issued by the MCA.
As per Companies (cost records and audit) Rules, 2014 notified by
Ministry of Corporate Affairs on 1st July 2014, the notice of
appointment of Cost Auditor M/s Murthy & Co. LLP, Cost Accountants, as
Cost Auditors has been filed with the Registrar of Companies / Ministry
of Corporate Affairs through electronic mode in Form CRA-2 as
prescribed under the said Rules.
The Company has also received necessary certificate under Section 141
of the Act 2013 conveying his eligibility for re-appointment. The
remuneration fixed by the Board, based on the recommendation of the
audit committee is required to be ratified by the members at the AGM as
per the requirement of Section 148(3) of the Act 2013.
Secretarial Auditors
As required under Section 204 of the Act 2013 and the Companies
(Appointment and Remuneration of Managerial Personnel) Rules 2014, the
Company is required to appoint a Secretarial Auditor for auditing the
secretarial and related records of the Company and to provide a report
in this regard.
Accordingly, M/s. M. Damodaran & Associates, Company Secretaries,
Chennai have been appointed as Secretarial Auditors for carrying out
the secretarial audit for the financial year 2014-15 for attaching
their report with the Board''s report to the shareholders.
CORPORATE GOVERNANCE
The Company has been practising the principles of good corporate
governance over the years and lays strong emphasis on transparency,
accountability and integrity. A separate section on Corporate
Governance and a certificate from the Auditors of the Company regarding
compliance of conditions of Corporate Governance as stipulated under
Clause 49 of the Listing Agreement(s) with the Stock Exchange(s) form
part of this Annual Report. The Executive Chairman and the Whole-time
Director (Finance & Accounts) have certified to the Board on financial
statements and other matters in accordance with Clause 49 (V) of the
Listing Agreement pertaining to CEO/CFO certification for the financial
year ended 31st March 2014.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A detailed analysis of the Company''s operational and financial
performance as well as the initiatives taken by the Company in key
functional areas such as Human Resources and Industrial Relations is
separately discussed in the Management Discussion and Analysis Report,
which forms part of this Annual Report.
INFORMATION TECHNOLOGY
The Company has been using ERP for integrating its various business
processes within the Company and its business partners. The Company
continued to implement several projects in supply chain to improve its
efficiency and transparency.
INTERNAL CONTROL AND THEIR ADEQUACY
The Company has a proper and adequate internal control system to ensure
that all the assets of the Company are safeguarded and protected
against any loss and that all the transactions are properly authorized
and recorded. Information provided to management is reliable and timely
and statutory obligations are adhered to.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
The Board at its meeting held on 26th February, 2014, constituted a
Corporate Social Responsibility Committee with Mr.C. Ramachandran as
the Chairman of the Committee, Mr. A.P. Venkateswaran and Mr. P.T.
Rangamani as Members.
Your Company strives to undertake activities relating to promotion of
education, environmental sustainability and protection of art and
culture for addressing the social concerns as part of its CSR policy.
SUBSIDIARY COMPANIES
The following are the subsidiaries of the Company as on 31st March,
2014:
1) Cosmic Global Limited
2) Tulsyan Power Limited
3) Chitrakoot Steel and Power Private Limited
4) Balaji Engineering & Galvanizing Limited
5) Color Peppers Media Private Limited
6) TG Logistics Private Limited
As per the General Circular No.2/2011 vide Ref.No.51/12/2007-CL-III
dated 8th February 2011 issued by the Ministry of Corporate Affairs,
the Balance Sheet, the statement of Profit and Loss and other documents
of the subsidiary companies are not being attached with the Balance
Sheet of the Company and that the financial information of the
subsidiary companies is disclosed in the Annual Report in compliance
with the said circular. Any member seeking copy of the annual report(s)
of the subsidiary company(ies) may write to the Company Secretary for
obtaining copy of the same.
CONSOLIDATED FINANCIAL STATEMENTS
As required under the Listing Agreement with the Stock Exchanges, the
consolidated financial statements of the Company are attached. The
Ministry of Corporate Affairs (MCA), Government of India, vide General
Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011
respectively has granted a general exemption from compliance with
section 212 of the Companies Act, 1956, subject to fulfillment of
conditions stipulated in the circular. The Company has satisfied the
conditions stipulated in the circular and hence is entitled to the
exemption. Necessary information relating to the subsidiaries has been
included in the Consolidated Financial Statements.
The annual accounts, reports and other documents of the subsidiary
companies will be made available to the stakeholders, on receipt of a
request from them, at the registered office of the Company during the
business hours on any working day of the Company. If any member or
investor wishes to inspect the same, it will be available during the
business hours of any working day of the Company.
A statement giving the following information in aggregate of each
subsidiary including its subsidiaries consisting of (a) capital (b)
reserves (c) total assets (d) total liabilities (e) details of
investment (except in case of investment in the subsidiaries) (f)
turnover (g) profit before taxation (h) provision for taxation (i)
profit after taxation and (j) proposed dividend has been attached with
the consolidated balance sheet of the Company in compliance with the
conditions of the said circular issued by MCA.
STATUTORY STATEMENTS
Conservation of energy, technology absorption and foreign exchange
earnings and outgo
As per the requirements of Section 217(1)(e) of the Companies Act, 1956
(the Act) read with the Companies (Disclosure of particulars in the
report of Board of Directors) Rules 1988, the information regarding
conservation of energy, technology absorption and foreign exchange
earnings and outgo are given in Annexure I to this report.
Particulars of employees
The particulars required pursuant to Section 217(2A) of the Act read
with the Companies (Particulars of Employees) Rules, 1975 as amended,
are given in Annexure II to this report. However, in terms of the
provisions of Section 219(1)(b)(iv) of the Companies Act, 1956, the
Directors'' Report and Accounts are being sent to all the shareholders
of the Company excluding the statement of particulars of employees.
Any shareholder interested in obtaining a copy of the said annexure may
write to the Company Secretary at the registered office of the Company.
Public Deposits
The Company has complied with the provisions of Section 58A of the
Companies Act, 1956 and Rules made there under in respect of acceptance
of deposits from public. There are no unpaid/unclaimed deposits.
DIRECTORS'' RESPONSIBILITY STATEMENT
In compliance of Section 217 (2AA) of the Companies Act, 1956, your
Directors confirm that
i) in the preparation of the annual accounts, the applicable accounting
standards have been followed;
ii) such accounting policies have been selected and applied
consistently and judgments and estimates made that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company as at 31st March, 2014 and of the Profit/Loss of the
Company for the year ended on that date;
iii) proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv) the annual accounts have been prepared on a "Going Concern" basis.
ACKNOWLEDGEMENT
The Directors thank the bankers, investing institutions, customers and
various stakeholders for their valuable support and assistance. The
Directors wish to place on record their appreciation of the very good
work done by all the employees of the Company during the year under
review. The Directors also thank the investors for their continued
faith in the Company.
For and on behalf of the Board
Lalit Kumar Tulsyan
Executive Chairman
Place: Chennai
Date: 30th June, 2014
Mar 31, 2013
The take pleasure in presenting the 66th Annual Report of the Company
together with the Audited Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement for the year ended 31st March, 2013.
FINANCIAL RESULTS
Rs.in Lakhs
2012-2013 2011-2012
Profit before Depreciation
and tax 1404.51 2426.37
Less: Depreciation 901.69 885.08
Profit for the year before
exceptional items 502.82 1541.29
Less: Exceptional Items
Profit for the year 502.82 1541.29
Less: Provision for
Current Tax 97.65 358.00
Deferred Tax 25.40 (145.36)
Add: Surplus brought
forward 5129.76 4050.36
Amount available for
appropriation 5509.53 5379.01
Appropriations:
Dividend 57.36 163.05
Corporate Tax on dividend 9.30 8.20
General Reserve 25.00 78.00
Balance carried forward 5417.87 5129.76
OPERATIONS AND OUTLOOK During the year under review, a prolonged demand
slump and growing interest cost has affected us badly. Sales and other
receipts grew 1.58% YOY to Rs. 114796.75 Lakhs. EBITDA dropped by
42.11% YOY to Rs. 2426.37 Lakhs and PAT Shrunk by 71.41% YOY to 379.78
Lakhs.
As in the past during the current year also there were drastic power
cuts consequently affecting our costs and also the production. We have
successfully started commercial operations of our 1X35 MW Captive
Thermal Power Plant at Gummudipoondi after completion of yester
financial year. This would help us in reducing the costs in the near
future. The other additional Power Plant of 35 MW capacity is under
implementation and expected to commence its commercial operation soon.
DIVIDEND
Our Directors do not recomend any Dividend for the current year.
DIRECTORS
Shri S. Ramakrishnan, Director of the Company, retires by rotation and
being eligible, offers himself for re-election.
Shri V. Kirubanandan, Director of the Company, retires by rotation and
being eligible, offers himself for re-election.
AUDITORS
The Auditors of the Company M/s. C.A. Patel & Patel, Chartered
Accountants, Chennai, retire at the ensuing Annual General Meeting of
the Company and are being eligible, offer themselves for
re-appointment.
PERSONNEL
Your Directors wish to express their appreciation to the employees at
all levels for their contribution to the Company''s performance during
the year under review.
COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF THE BOARD OF
DIRECTORS) RULES 1988 AND PARTICULARS OF FOREIGN EXCHANGE EARNINGS AND
OUTGO
The Information relating to conservation of energy, technology
absorption and foreign exchange earnings and outgo required to be
disclosed as per Section 217(1)(e) of the Companies Act, 1956 read with
the Companies (Disclosure of Particulars in the Report of the Board of
Directors) Rules 1988 are enclosed with the Report.
FIXED DEPOSITS
The Company has complied with the provisions of Section 58A of the
Companies Act, 1956 and Rules made there under in respect of acceptance
of deposits from public. There are no unpaid/unclaimed deposits.
DEMATERIALISATION OF SHARES Your Company has entered into an
arrangement with National Securities Depository Limited (NSDL) and
Central Depository Services Limited (CDSL) for dematerialization of the
Company''s shares in accordance with the provisions of the Depositories
Act, 2001. Accordingly, our company''s shares can be dematerialized in
the CDSL and NSDL under the ISIN - INE463D01016.
DIRECTORS'' RESPONSIBILITY STATEMENT
In compliance of Section 217 (2AA) of the Companies Act, 1956, your
Directors confirm that
i. in the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
ii. such accounting policies have been selected and applied
consistently and judgments and estimates made that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company as at 31st March, 2013 and of the Profit of the Company for
the year ended on that date;
iii. proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv the annual accounts have been prepared on a going concern basis.
AUDIT COMMITTEE
In compliance of Section 292A of the Companies Act, 1956, an Audit
Committee of the Board is consisting of the following Directors:
1. Shri C. Ramachandran Chairman (since 29.09.2012)*
2. Shri S. Ramakrishnan
3. Shri A.P. Venkateswaran
* Consequent retirement of Shri S. Soundararajan Director who occupied
chair till 28.09.2012.
CORPORATE GOVERNANCE
The Company has complied with the mandatory requirements of Corporate
Governance as prescribed in the Listing Agreement entered into with the
Stock Exchanges to the extent possible, taking into account, the
operational requirements, financial position of the Company etc. A
separate report on Corporate Governance along with the Auditor''s
Certificate on its compliance is attached as Annexure to this report.
PARTICULARS OF EMPLOYEES The statement of particulars of employees as
required under Section 217(2A) of the Companies Act, 1956, read with
the Companies (Particulars of Employees) Rules, 1975 as amended is
appended.
STATUTORY DISCLOSURES
None of the Directors are disqualified uder the provisions of Section
274(1)(g) of the companies Act, 1956. The Directors have made the
requisite disclosures, as required under the provisions of the
Companies Act, 1956 and Clause 49 of the Listing Agreement.
SUBSIDIARY COMPANIES
As per General Circular issued by the Ministry of Corporate Affairs the
Balance Sheet, Statement of Profit and Loss and other documents of the
subsidiary companies are not being attached with the Balance Sheet of
the Company and that the financial information of the subsidiary
companies is disclosed in the Annual Report in compliance with the said
circular. On written request the copies of Annual Report of the
subsidiary companies will be provided to the members of the Company.
GENERAL
The Directors take this opportunity to convey their appreciation of the
services rendered and support given by the Company''s Bankers, Financial
Institutions, suppliers and customers.
Your Directors thank you, the Shareholders for your continued
patronage.
For and on behalf of the Board
Place : Chennai LALITKUMAR TULSYAN
Date :14.08.2013 Executive Chairman
Mar 31, 2012
The take pleasure in presenting the 65th Annual Report of the Company
together with the Audited Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement for the year ended 31st March, 2012.
FINANCIAL RESULTS
Rs. in Lakhs
2011-2012 2010-2011
Profit before Depreciation and tax 2426.37 2365.39
Less: Depreciation 885.08 857.88
Profit for the year before
exceptional items 1541.29 1507.51
Less: Exceptional Items - 126.96
Profit for the year 1541.29 1380.55
Less: Provision for Current Tax 358.00 290.00
Deferred Tax (145.36) 156.22
Add: Surplus brought forward 4050.36 3334.84
Amount available for appropriation 5379.01 4269.17
Appropriations:
Interim dividend - 50.00
Corporate Tax on Interim
Dividend - 8.50
Dividend 163.05 50.00
Corporate Tax on dividend 8.20 5.31
General Reserve 78.00 105.00
Balance carried forward 5129.76 4050.36
OPERATIONS AND OUTLOOK During the year under review, Sales and other
receipts grew 45.06% YOY to Rs. 113588.47 Lakhs. EBITDA grew by 2.58%
YOY to Rs. 2426.37 Lakhs and PAT grew by 42.20% YOY to 1328.65 Lakhs.
Your directors expect a growth of 40% in the top line for the FY 2013.
As in the past during the current year also there were drastic power
cuts consequently affecting our costs and also the production. Due to
these power cuts we could not utilize our capacities in full thus
losing out on economies of large scale production. The 35 MW Captive
Thermal Power Plant at Gummudipoondi is in its final stage of
installation and expected to start its trial production on or after
November 2012 and consequently will start commercial production on or
after December 2012. The other additional Power Plant of 35 MW
capacity, additional Induction furnaces of 4 numbers of 20T each for
billet manufacturing with annual installed capacity of 274000 MTPA will
be set up at the new site where the Captive Power Plant of 35 MW is
under implementation. The company is setting up a Wire Rod Plant with a
coal gasifier at the existing rolling mill division in Gummudipoondi.
RIGHTS ISSUE
The Rights Issue proceeds received during the year has been utilized
for the purpose of setting up of Captive Power Plant (under
construction) of 35 MW Capacity in Gummidipoondi Taluk, Tamil Nadu as
provided in the Letter of Offer. The said 35 MW Capacity Captive Power
Plant is in its final stage of installation and expected to start its
trial production on or after November 2012 and consequently will start
commercial production on or after December 2012.
DIVIDEND
Your Company now pleased to recommend a dividend of 15% on the equity
paid-up capital of the Company as on 31.03.2012 subject to members'
approval.
DIRECTORS
Shri P. T. Ranagamani, Director of the Company, retires by rotation and
being eligible, offers himself for re-election.
Shri C. Ramachandran, Director of the Company, retires by rotation and
being eligible, offers himself for reelection.
Shri S. Soundararajan, Director of the Company who retired by rotation
not offered himself for reelection due to his pre-occupation.
Shri S. Soundararajan is associated with our organization for around
two decades as an Independent Director of the Company and contributed
in various Committees as well. During his entire tenure he has rendered
invaluable services to the Company and we appreciate and respect his
contribution to our organization. Since he chose to not to reelect
himself as Director his Directorship shall expire in the ensuing AGM.
AUDITORS
The Auditors of the Company M/s. C. A. Patel & Patel, Chartered
Accountants, Chennai, retire at the ensuing Annual General Meeting of
the Company and are being eligible, offer themselves for
re-appointment.
PERSONNEL
Your Directors wish to express their appreciation to the employees at
all levels for their contribution to the Company's performance during
the year under review.
COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF THE BOARD OF
DIRECTORS) RULES 1988 AND PARTICULARS OF FOREIGN EXCHANGE EARNINGS AND
OUTGO
The Information relating to conservation of energy, technology
absorption and foreign exchange earnings and outgo required to be
disclosed as per Section 217(1)(e) of the Companies Act, 1956 read with
the Companies (Disclosure of Particulars in the Report of the Board of
Directors) Rules 1988 are enclosed with the report.
FIXED DEPOSITS
The Company has complied with the provisions of Section 58A of the
Companies Act, 1956 and Rules made there under in respect of acceptance
of deposits from public. There are no unpaid/unclaimed deposits.
DEMATERIALISATION OF SHARES Your Company has entered into an
arrangement with National Securities Depository Limited (NSDL) and
Central Depository Services Limited (CDSL) for dematerialization of the
Company's shares in accordance with the provisions of the Depositories
Act, 2001. Accordingly, our company's shares can be dematerialized in
the CDSL and NSDL under the ISIN - INE463D01016.
DIRECTORS' RESPONSIBILITY STATEMENT
In compliance of Section 217 (2AA) of the Companies Act, 1956, your
Directors confirm that
i. in the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
ii. such accounting policies have been selected and applied
consistently and judgments and estimates made that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company as at 31st March, 2012 and of the Profit of the Company for
the year ended on that date;
iii. proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv. the annual accounts have been prepared on a going concern basis.
AUDIT COMMITTEE
In compliance of Section 292A of the Companies Act, 1956, an
Audit Committee of the Board is consisting of the following Directors:
1. Shri S. Soundararajan - Chairman (till ensuing AGM - 27.09.2012)
2. Shri S Ramakrishnan
3. Shri A P Venkateswaran
Shri S. Soundararajan, Chairman of the Audit Committee who retires by
rotation this ensuing Annual General Meeting has opted out to be
Director due to his pre-occupation. Hence Audit Committee has to be
reconstituted.
CORPORATE GOVERNANCE
The Company has complied with the mandatory requirements of Corporate
Governance as prescribed in the Listing Agreement entered into with the
Stock Exchanges to the extent possible, taking into account, the
operational requirements, financial position of the Company etc. A
separate report on Corporate Governance along with the Auditor's
Certificate on its compliance is attached as Annexure to this report.
PARTICULARS OF EMPLOYEES The statement of particulars of employees as
required under Section 217(2A) of the Companies Act, 1956, read with
the Companies(Particulars of Employees) Rules, 1975 as amended is
appended.
STATUTORY DISCLOSURES
None of the Directors are disqualified under the provisions of Section
274(1)(g) of the companies Act, 1956. The Directors have made the
requisite disclosures, as required under the provisions of the
Companies Act, 1956 and Clause 49 of the Listing Agreement
SUBSIDIARY COMPANIES
As per General Circular issued by the Ministry of Corporate Affairs the
Balance Sheet, Statement of Profit and Loss and other documents of the
subsidiary companies are not being attached with the Balance Sheet of
the Company and that the financial information of the subsidiary
companies is disclosed in the Annual Report in compliance with the said
circular. On written request the copies of Annual Report of the
subsidiary companies will be provided to the members of the Company.
GENERAL
The Directors take this opportunity to convey their appreciation of the
services rendered and support given by the Company's Bankers, Financial
Institutions, suppliers and customers.
Your Directors thank you, the Shareholders for your continued
patronage.
For and on behalf of the Board
LALITKUMAR TULSYAN
Executive Chairman
Place : Chennai
Date : 14.08.2012
Mar 31, 2010
We take pleasure in presenting the 63rd Annual Report of the Company
together with the Audited Balance Sheet, Profit & Loss Account and Cash
Flow Statement for the year ended 31st March, 2010
FINANCIAL RESULTS
2009-2010 2008-2009
Rupees in Lacs
Profit before Depreciation
and tax 2258.51 2933.32
Less: Depreciation 813.33 725.02
Profit for the year before
Exceptional items 1445.18 2208.30
Less: Exceptional Items 85.73 722.10
Profit for the year 1359.45 1486.20
Less: Provision for
Current Tax 360.00 390.00
Deferred Tax 150.17 131.33
Fringe Benefit Tax - 14.08
Add: Surplus brought forward 2698.83 1963.04
Amount available for
appropriation 3548.11 2913.83
Appropriations:
Dividend 100.00 100.00
Corporate Tax 11.26 -
General Reserve 102.00 115.00
Balance carried forward 3334.85 2698.83
OPERATIONS AND OUTLOOK
The economic crisis and slowdown witnessed in all the sectors during
2008-09 continued during 2009-10 as well. While developed countries
continue to reel under recession, it is believed that Asian countries
are back on the growth track. Your company is well poised in terms of
capacity and marketing infrastructure to capitalize on growth
opportunities as they arise.
During the year under review, your company has surpassed the figure of
production and sales in quantitative terms, as compared to the previous
year. However, the profit during the year, before tax was Rs. 1359.45
lacs as against Rs. 1486.20 lakh last year, indicating a decease of
8.53%. The decline in performance is on account of decrease in sales
values.
The expansion in the rolling capacity by 150000 Mt/p.a. at
Gummudipondi undertaken during 2008-09 has been successfully completed
during 2009-2010, with this the Cumulative rolling capacity of the
company will be 348000 Mt/p.a. The cost of Raw Material and
availability of Power
are two major factors effecting our performance, with this in mind
during the year 2009-10, the company has acquired M/s Chitrakoot Steel
and Power Pvt Ltd. which is manufacturing sponge iron a basic
raw-material for TMT bars. The installed capacity of this plant is
36000 Mt / p.a.. During the year under review there were drastic power
cuts to the tune of about 40%, consequently effecting our costs and
also the production. Due to these power cuts we could not utilize our
capacities in full thus losing out on economies of large scale
production. During the current year, your company would be commencing
the installation work on the 35 MW thermal power plant at Gummudipondi
for which land has already been acquired and term loan sanctions have
been received from the Bankers. The rights issue for which necessary
approvals were obtained from the share holders in the last AGM, will be
done in due course during this year.
DIVIDEND
Our Directors are pleased to recommend a dividend of 20% on the Equity
Capital subject to members approval.
DIRECTORS
Mr S Soundararajan, Director of the Company, retires by rotation and
being eligible, offers himself for re-relection.
Mr P T Rangamani, Director of the Company, retires by rotation and
being eligible, offers himself for re-relection.
Shri C Ramachandran, Director of the Company, retires by rotation and
being eligible, offers himself for re-relection.
AUDITORS
The Auditors of the Company M/s. C.A. Patel & Patel., Chartered
Accountants, Chennai, retire at the ensuing Annual General Meeting of
the Company and being eligible, offer themselves for re-appointment
PERSONNEL
Your Directors wish to express their appreciation to the employees at
all levels for their contribution to the Companys performance during
the year under review.
COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF THE BOARD OF
DIRECTORS) RULES 1988 AND PARTICULARS OF FOREIGN EXCHANGE EARNINGS AND
OUTGO
The Information relating to conservation of energy, technology
absorption and foreign exchange earnings and outgo required to be
disclosed as per Section 217(1)(e) of the Companies Act, 1956 read with
the Companies (Disclosure of Particulars in the Report of the Board of
Directors) Rules 1988 are enclosed with the report.
FIXED DEPOSITS
The Company has complied with the provisions of Section 58A of the
Companies Act, 1956 and Rules made there
under in respect of acceptance of deposits from public. There are no
unpaid/unclaimed deposits.
DEMATERIALISATION OF SHARES
Your Company has entered into an arrangement with National Securities
Depository Limited (NSDL) and Central Depository Services Limited
(CDSL) for dematerialization of the Companys shares in accordance with
the provisions of the Depositories Act, 2001. Accordingly, our
companys shares can be dematerialized in the CDSL and NSDL under the
ISIN - INE463D01016
DIRECTORS RESPONSIBILITY STATEMENT
In compliance of Section 217 (2AA) of the Companies Act, 1956, your
Directors confirm that
i. in the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
ii. such accounting policies have been selected and applied
consistently and judgments and estimates made that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company as at 31st March, 2010 and of the Profit of the Company for
the year ended on that date;
iii. proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv the annual accounts have been prepared on a going concern basis.
AUDIT COMMITTEE
In compliance of Section 292A of the Companies Act, 1956, an Audit
Committee of the Board is consisting of the following Directors:
1. Mr S. Soundararajan - Chairman
2. Mr. S Ramakrishnan
3. Mr. A P Venkateswaran
CORPORATE-GOVERNANCE
The Company has complied with the mandatory requirements of Corporate
Governance as prescribed in the Listing Agreement entered into with the
Stock Exchanges to the extent possible, taking into account, the
operational requirements, financial position of the Company etc. A
separate report on Corporate Governance along with the Auditors
Certificate on its compliance is attached as Annexure to this report.
PARTICULARS OF EMPLOYEES
The statement of particulars of employees as required section 217(2A)
of the Companies Act, 1956, read with the Companies(Particulars of
Employees) Rules, 1975 as amended is appended.
STATUTORY DISCLOSURES
None of the Directors are disqualified uder the provisions of Section
274(1 )(g) of the companies Act, 1956. The Directors have made the
requisite disclosures, as required under the provisions of the
Companies Act, 1956 and Clause 49 of the Listing Agreement
SUBSIDIARY COMPANIES
As required under section 212 of the Companies Act, 1956 the Balance
Sheet, Profit & Loss Account and the reports of the Board of Directors
and Auditors of the Subsidiary Companies have been attached to the
Balance Sheet of your Company.
GENERAL
The Directors take this opportunity to convey their appreciation of the
services rendered and support given by the Companys Bankers, Financial
Institutions, suppliers and customers.
Your Directors thank you, the Shareholders for your continued
patronage.
For and on behalf of the Board
Place : Chennai LALITKUMAR TULSYAN
Date : 14th May, 2010 Executive Chairman
Mar 31, 2000
We take pleasure in presenting the 53rd Annual Report of the Company
together with the Audited Balance Sheet, Profit & Loss Account and Cash
Flow Statement for the year ended 31st March 2000.
FINANCIAL Rupees in lacs
RESULTS 1999 - 2000 1998-99
Profit before
depreciation and Tax 429.55 288.57
Less: Depreciation 173.77 163.79
Profit for the year 255.78 124.78
Less: Provision for
Taxation 42.00 23.75
Add: Surplus brought
forward 127.33 230.74
Public Issue/preliminary
Exps. Written off 4.44 4.44
Amount available for
appropriation 336.67 327.33
Appropriations:
Dividend paid 30.00 --
Corporate tax paid 3.30 --
General Reserve 200.00 200.00
Balance carried forward 103.37 127.33
OPERATIONS
We are glad to inform that your company has ventured into the sunrise
IT Industry. We have promoted M/s Tulsyan Technologies Ltd. as a
subsidiary of your company which is into IT related services and E.
Commerce, The annual Report of the subsidiary is annexed.
DIVIDEND
The company has paid an interim dividend of 6% during the month of
March 2000.
DIRECTORS
Mr.S.M.Tulsyan, Director of the Company retire by rotation and being
eligible, offer himself for re-election. Mr. Vikram Saboo has been co-
opted as director of our company on 31.05.2000 whose office has to be
regularised.
AUDITORS
The Joint Auditors of the Company M/s. C.A.Patel & Patel, Chartered
Accountants, Chennai and M/s. R.S. Agarwala & Co., Chartered
Accountants, Bangalore, retire at die ensuing Annual General Meeting of
the Company and being eligible offer themselves for reappointment.
PERSONNEL
Your Directors wish to express their appreciation to (lie employees at
all levels for their contribution to the Companys performance during
the year under review.
None of the employees were in receipt of remuneration in excess of
limits prescribed under Section 217(2A) of the Companies Act, 1956.
FIXED DEPOSITS
The Company has complied with the provisions of Section 58A of the
Companies Act, 1956 and Rules made thereunder elating to acceptance of
deposits from public. There are no unpaid/unclaimed deposits.
GENERAL
The particulars prescribed by Companies (Disclosure of Particulars in
Report of Board of Directors) Rules, 1988 are appended and form an
integral part of this Report.
The Directors take this opportunity to convey their appreciation of the
services rendered and support given by die Companys Bankers, Financial
Institutions, suppliers and customers.
Your Directors thank you, the Shareholders for your continued
patronage.
For and on behalf of the Board
L K TULSYAN
Executive Chairman
Place : Chennai
Date : 28.08.2000
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