The Directors present their 48th Annual Report with the statements of
the audited accounts for the year ended 31st March, 2008.
1. Financial Results 2007-08 2006-07
Revenue 1356.60 278.80
Operating Loss before Interest/Depreciation 165.50 109.83
Interest 0.82 0
Depreciation 10.31 9.92 Tax adjustment in
respect of earlier years
Net Loss for the year 176.63 119.75
Net Loss brought forward 402.85 283.10
Net Loss carried to Balance Sheet 579.48 402.85
Directors are unable to declare dividend in view of the losses.
3. Performance ISO Certifiaction
The Bureau Veritas has issued the Company the ISO 9001 -2000
certification. This certification would enable the Company to supply
value added products to customers in such industries as auto
components, automobiles, white goods and Defence.
Implementation of BIFR order
The company has complied with the BIFR Order as contained in the
approved Rehabilitation Scheme and is implementing the same.
The first year after the BIFR Order has been rather eventfal. For the
first six months the raw material prices were stable and we had managed
to reach the production of 500 MT per month. Thereafter the prices for
our raw material viz. Hot Rolled Coils (HRC) kept on increasing every
month. This has created tremendous pressure on the company in terms of
working capital and also achieving higher and higher sales prices.
Despite these and other problems the contribution has increased though
the production has come down.
The production has come down due to the non availability of raw
The company is exploring various avenues of fund raising. As the price
of HRC is stabilizing at higher level, the Company is exploring
strategic tie ups for the supply of raw materials and is further
looking to restructure its business.
Though the outlook looks uncertain due to the increase in prices of
steel, power and transportation, we are confident that due to the long
standing relations with customers and quality of products of the
company we would be in a position to ride through the uncertain times.
4. DirectorsResponsibility Statement
In terms of Section 217(2A A) of the Companies Act, 1956, the Directors
(a) in the preparation of annual accounts, the applicable accounting
standards have been followed and that there has been no material
(b) the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of the
affairs of the Company as at 31st March, 2008 and the losses for the
year ended on that date;
(c) Directors have taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 as amended from time to time; (d) Directors have
taken proper and sufficient care, in consonance with the financial
situation of the Company, for safeguarding the assets of the Company
and for preventing and detecting fraud and other irregularities; and
(e) Directors have prepared the accounts on a going concern basis.
Mr. Dhanesh J. Mehta and Mr. Rajnesh I. Jain retire by rotation at the
forth coming Annual General Meeting and being eligible, offer
themselves for reappointment.
With a view to further strengthen the management Mr. M. G. Mohan Kumar
was invited to join the Board as an Additional Director on 30th January
2008. Mr. M. G. Mohan Kumar is a Financial Advisor and his experience
would be of immense help in progress of the Company. The Company has
received the necessary notice from a shareholder proposing his
7. Auditors Report
The Companys position on the Auditors qualifications has been stated
in the notes attached to the accounts. Accounts have been prepared on a
going concern basis in view of the scheme of rehabilitation submitted
8. Listing on the Stock Exchange, Mumbai
The company is now in the process of regularizing all listing
compliances so as to enable Bombay Stock Exchange Limited permit
trading in your Companys shares.
9. Secretarial Compliance Certificate
The Company has obtained the Compliance Certificate from the Practicing
Company Secretary pursuant to Section 383A of the Companies Act, 1956.
A copy of the said certificate is annexed.
10. Particulars of Employees
There was no employee in respect of whom information is required to be
disclosed as per the provisions of Section 217(2A) of the Companies Act
1956, as amended.
M/s. Borkar & Mazumdar, Chartered Accountants, retires at the forth
coming Annual General Meeting. Members are requested to appoint the
Auditors and fix their remuneration.
The Board also wishes to place their deep appreciation for the patience
shown and efforts put in by employees despite the poor financial
situation of the Company.
22nd August, 2008 By Order of the Board
A-6 MIDC Industrial Area, Chikalthana Chairman of the meeting
Aurangabad 431 210