Lanco Industries
BSE: 513605 | NSE: LANCOIN | ISIN: INE943C01027 | Steel - Pig Iron
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Directors Report | Year End : Mar '08 |
The Directors take pleasure in presenting the 1 6th Annual Report and
Audited Accounts of your Company lor the year ended 31st March, 2008.
FINANCIAL RESULTS
(Rs. in Lakhs) (Rs. in Lakhs)
2007-08 2006-07
Sales & Other Income 46458.84 36970.25
Cross Profit 5514.43 3321.61
Depreciation 1512.99 1156.89
Profit Before Taxation 4001.44 2164.74
Less: Provision for Taxation
(Including Deferred Tax) 1409.70 588.94
Profit After Tax 2591.74 1580.80
Profit Brought Forward from Previous Year 858.92 837.09
Prior Period Adjustment (55.46) -
Balance Available for Appropriation 3395.20 2417.89
Appropriations are made as under:
Debenture Redemption Reserve 187.50 98.75
General Reserve 1500.00 1000.00
Proposed Dividend 397.64 397.64
Dividend Tax 67.58 67.58
Balance Carried Forward to Next Year 1242.48 858.97
DIVIDEND
Your Directors recommend payment of dividend @ 10% on the equity shares
of the Company for the year ended 31st March, 2008. If approved, the
dividend will absorb Rs. 465.22 lakhs (including Rs. 67.58 lakhs
towards dividend tax).
REVIEW OF OPERATIONS
During the year, the Company achieved gross sales of Rs. 494.72 Crs.,
an increase of 20% over the previous year sales of Rs. 410.45 Crs. The
Companys Profit After Tax for the year was Rs. 25.92 Crs as against
Rs. 15.81 Crs. in the previous year.
The Mini Blast Furnace (MBF) producing liquid metal mainly for Ductile
Iron Pipe Plant had undergone a shutdown for a period of 19 days to
repair refractory lining in the second quarter of the year under
review. Despite, the production of MBF for the year was 1,48,677 MT
compared with 1,38,958 MT in the previous year, an increase of 7%.
Production of D.I. Pipes was also higher by 15% at 1,13,471 MT compared
with 98,292 MT in the preceding year.
The Company has successfully commissioned Stamp Charging Facility in
Coke Oven Plant during the year which has enhanced operational
efficiency.
In March 2007, the Company had commissioned 12 MW Power Plant for
making use of waste gas of Coke Oven Plant. The plant has been
synchronized with the grid and has successfully generated the power for
captive use during the year under review.
During the year 2006-07, the Company had arranged long-term funds of
Rs. 1 1 0 Crs and the proceeds have been utilized towards capital
expenditure, refinancing and augmentation of long-term funds for
working capital. No additional long term funds were borrowed during the
year under review.
CURRENT YEARS PROSPECTS
Demand for Dl Pipes continues to be positive, in view of the thrust
given by the Government of India to create intrastate ture for drinking
water across the country. However, the prices of key inputs like Iron
Ore and Coal / Coke required by \ou Company are rising to unprecedented
levels and it may not be feasible to pass on the entire1 impact of such
significant increases in the cost of inputs.
DIRECTORS
Shri Uddhav Kejriwal resigned from the Board on 26th June 2007. Your
Directors place on record their appreciation for the active
participation and valuable services rendered to the Company by Shri
Uddhav Kejriwal.
Shri Sanjeev Churiwal resigned from the Board on 4th July, 2007. Your
Directors place on record their appreciation for the active
participation and valuable services rendered to the Company by Shri
Sanjeev Churiwal Shri Suresh Chukkapalli resigned from the Board on 2nd
August, 2007. Your Directors place on record their appreciation for the
active participation and valuable services rendered to the Company by
Shri Suresh Chukkapalli.
Andhra Pradesh Industrial Development Corporation Limited (APIDC),
Hyderabad nominated Shri P .Rajeswara Rao on the Board of Directors of
the Company with effect from 24th July, 2007 in place of Shri
M.Balarama Krishnaiah. You; Directors place on record their
appreciation for the active participation and valuable services
rendered to the Compam by Shri M.Balarama Krishnaiah.
Shri Pradip Kumar Khaitan and Shri L.Sridhar retire by rotation at the
ensuing Annual General Meeting and being eligible, offer themselves for
re-appointment.
CORPORATE GOVERNANCE
The Corporate Governance report is set out as Annexure to this Report.
MANAGEMENT DISCUSSION AND ANALYSIS
Please refer to the management discussion and analysis section
appearing elsewhere.
PARTICULARS OF EMPLOYEES
Board of Directors express its appreciation tor sincere efforts made by
the employees of your Company at all levels during the year and their
co-operation in maintaining cordial relations.
The information required under Section 217(2A) of the Companies Act,
1956 read with Companies (Particulars of Employees) Rules, 1975, as
amended, forms part of this Report. However, the report and accounts
are being sent to all the shareholders of the Company excluding the
above information. Those shareholders, who desire to obtain these
particulars, would be provided the same upon receiving such request.
STATUTORY INFORMATION
Information as per Companies (disclosure of particulars in the Report
of Board of Directors) Rules, 1988 related to conservation of energy,
technology absorption, foreign exchange earnings and outgo are given in
Annexure-A attached hereto and forming part of this report.
DIRECTORS RESPONSIBILITY STATEMENT
The Board of Directors of the Company confirms:
i) That in the preparation of annual accounts the applicable accounting
standards have been followed and there has been no material departure.
ii) That the selected accounting policies were applied consistently and
the Directors 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 2008 and of the profits of the Company
for the year ended on that date.
iii) That proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provision of the
Companies Act, 1 956 tor safeguarding the assets of the Company and lor
preventing and detecting fraud and other irregularities: and
iv) That the annual accounts have been prepared on a going concern
basis.
AUDITORS
The Auditors, M/s. K.R. Bapuji & Co., Chartered Accountants, retire at
the conclusion of the forthcoming Annual General Meeting and being
eligible, oiler themselves for re-appointment.
ACKNOWLEDGEMENTS
The Board of Directors thank the Customers, Shareholders, Investors,
Government Authorities, Financial Institutions and Banks for their
continued co-operation and support to your Company.
For and on behalf of the Board of Directors
Place: Kolkata Pradip Kumar Khaitan
Date : 28h April, 2008 Chairman
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| Source : Religare Technova | |
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