The Directors have pleasure in presenting the 19th Annual Report of the
Company, together with the Audited Accounts, for the year ended 31st
1. Financial Results (Rs. in Lacs)
Sales & Other Income (net) 9516.85 19105.72
Profit/(Loss) before Interest &
Depreciation 947.03 1344.18
Less : Interest & Other Financial
Charges 956.18 879.23
Less : Depreciation 314.72 341.84
Profit/(Loss) before tax and exceptional
items (323.87) 123.11
Add /(Less): Exceptional items - -
Profit/(Loss) before tax and after
exceptional items (323.87) 123.11
Less: Provision for Taxation - 25.16
Less/(Add): Deferred Tax (106.96) 51.05
Net Profit /(Loss) after Tax (216.91) 46.90
Balance as per last year 641.71 594.81
Balance Carried Forward 424.80 641.71
During the year under review the total revenue has decreased by 50%,
compared to previous year ended on 31.03.2011.
Due to slowdown in the steel market, production was temporarily
suspended during certain period in the financial year 2011- 2012.
3. Future Prospects
The State of Bihar is experiencing a continuous and resounding growth
phase. Huge emphasis is being laid upon growth of infrastructure in the
state and therefore being the leading TMT manufacturer, both in terms
of volume and quantity, we expect record-breaking demand for our
product. It is pertinent to mention that our product CISCO Thermex
Fe500 QST Bars is the most demanded TMT brand in the fastest growing
state in country.
Furthermore, the enhancement cum restructuring of loan of the Company
has been principally agreed to by our Banker and is currently under
process for final sanction. Added capital will lead to better
realization on finished goods as well as purchase of quality raw
material at reasonable rates, thus increasing the bottom-line of the
Company. Techno- Economic Viability (TEV) study to this effect was
conducted by D&B Consultant on instruction of the Banker, wherein it
was concluded that manufacturing unit of the Company represented a
substantial potential for growth and profitability. An enhancement in
the Banking arrangement is therefore expected to be received shortly
As the Company incurred loss during the year hence no dividend payment
During the year, the Company continued to avail credit facilities by
way of overdrafts, cash credits, issuance of guarantees. including
deferred payment guarantees and indemnities, negotiation and
discounting of demand and/or usance bills and cheques and such other
facilities from State Bank of India, Commercial Branch, Patliputra,
Patna and other private bodies for the existing and Bihta unit.
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. Aditya Dalmiya and Mr.
Ashok Agarwal are retiring by rotation and being eligible offers
themselves for re-appointment.
8. Directors'' Responsibility Statement
In compliance with section 217(2AA) of the Companies Act 1956, the
Directors confirm that
a) in preparation of the Annual Accounts, for the year ended 31 st
March 2012, all the applicable accounting standards prescribed by the
ICAI have been followed.
b) the Directors have adopted such accounting policies and have applied
them consistently and have made judgments and estimates in a reasonable
and prudent manner so as to give a true and fair view of the state of
affairs of the Company as at the end of the financial year and of the
profit/loss of the Company for the year.
c) the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
d) the Directors have prepared the annual accounts on a going concern
M/s. ARSK & Associates, Chartered Accountants, Auditors of the Company
are retiring at the conclusion of the ensuing Annual General Meeting
and being eligible offer themselves for re-appointment. The Company has
received a certificate to the effect that their re-appointment if made
will be within the prescribed limit u/s.224 (1-B) of the Companies Act,
10. Depository System
As the members are aware, your Company''s shares are tradable
compulsorily in electronic form and your Company has connectivity with
both the depositories, i.e. National Securities Depository Limited
(NSDL) & Central Depository Services (India) Limited (CDSL). Members
are requested to avail the facility of dematerialisation of the
Company''s shares on either of the Depositories as aforesaid, if not
11. Public Deposit
The company has not invited /accepted any deposits from the public and
as such there are no outstanding deposits, in terms of the Companies
(Acceptance of Deposits) Rules, 1975.
There is no employee in respect of whom particulars pursuant to Section
217(2A) of the Companies Act, 1956 are required to be given.
13. Conservation of Energy
The information relating to conservation of energy as required U/s.
217(1)(e) of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 is given in the Annexure-A to this Report. The Company has no
figure to disclose in respect of technology absorption and /or foreign
exchange earnings and outgo.
14. Social Welfare Activities
The Company organises mason''s meet from time to time at various
15. Corporate Governance
Separate Report on Corporate Governance is annexed and marked Annexure
- B. The Auditors'' Certificate on compliance with the conditions of
Corporate Governance is annexed and marked Annexure - C.
Your Directors wish to place their sincere appreciation to the
co-operation extended by the Bank, State Government. Electricity
Board, Customers, Suppliers and Shareholders and solicit their
continued support. The Directors also wish to place on record the
dedicated service rendered by the Management, Staffs and Workers.
For and on behalf of the Board
Place : Patna Sanjiv Kumar Choudhary Aditya Dalmiya
Date :3rd September,