To The Members of SHREE RAMA NEWSPRINT LIMITED
Pursuant to the shareholders resolution in the Extra-ordinary General
Meeting of the Company held on 30th March 2013, and the subsequent
approval of Central Government, the name of the Company was changed
from ''Rama Newsprint and Papers Limited'' to ''Shree Rama Newsprint
Your Directors are pleased to present the 22nd Annual Report and the
Audited Accounts for the Financial Year ended 31s1 March 2013.
Year ended Year ended
Revenue from operations 38283.45 35088.62
Profit/ (Loss) before Interest.
Depreciation and Tax 363.44 449.28
Finance Cost 4865.45 5246.02
Profit / (Loss) before Depreciation
and Tax (4502.01) (4796.74)
Depreciation 3472.66 3465.56
Profit/(Loss) before Tax (7974.67) (8262.30)
Deferred Tax / (Credit) (2305.69) (2709.62)
Net Profit/ (Loss) from
ordinary activities (5668.98) (5552.68)
PERFORMANCE DURING 2012-13
During the year under review the Company improved its capacity
utilization to 90% as against 88% during the year 2011-12. The sales
volume also improved by about 5% over the previous year. However,
there was no significant improvement in the profitability. The market
scenario of Newsprint continued to remain sluggish during the year. In
order to reduce its dependence on Newsprint, the Company has decided to
produce some quantity of Writing & Printing grades of paper from time
With a view to improve the operating efficiency, the Company has taken
up certain Capex projects of about Rs. 20 crores. It would not only help
improve the efficiency of the plant and quality of the finished product
but will also help reduce the fibre cost. During the year the Company
availed new Term loan of about Rs. 50 crores for financing the said Capex
projects and also to reduce the working capital deficit.
To infuse fresh funds, the Company has entered into agreements for sale
of 170 acres of its unused land, subject to requisite approvals. This
would significantly ease the liquidity crunch being faced by the
The year 2013-14 has begun with a positive note with the selling prices
of Newsprint having witnessed a significant increase in April-June 2013
quarter. As a result of the improved liquidity and operating efficiency
of the plant, the Company expects to report a much better performance
CORPORATE SOCIAL RESPONSIBILITY
The Company is conscious about its social responsibilities towards the
public living within the vicinity of its Mills. The Company continues
to impart regular health check facilities for the community in the
nearby villages and distribute free medicines to the needy, apart from
supplying free Drinking Water on a regular basis to the nearby
The Company has opened a modern English Medium School to impart quality
education to the students in the vicinity. In addition, the Company
also undertakes various community welfare jobs as and when needed.
DIRECTORS'' RESPONSIBILITY STATEMENT PURSUANT TO SECTION 217 (2AA) OF
THE COMPANIES ACT, 1956
The Directors hereby confirm that:
1. In the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
2. 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 /
(loss) of the company for that period;
3. Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the company and for
preventing and detecting fraud and other irregularities;
4. The annual accounts have been prepared on a going concern basis.
The Company has not accepted any deposits from public during the year
LISTING OF SHARES
Equity Shares of Company continue to be listed on Bombay Stock Exchange
Ltd. (BSE) and National Stock Exchange of India Ltd. (NSE). The Company
has duly paid listing fees to the stock exchanges.
Shri Virendraa Bangur, Shri K. L. Chandak & Shri Shree Kumar Bangur are
retiring by rotation at the ensuing Annual General Meeting and, being
eligible, have offered themselves for re- appointment.
The Board of Directors appointed Shri Narayan Atal as an Additional
Independent Director w.e.f. 06.11.2012 who will hold this position till
the date of ensuing Annual General Meeting.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Particulars with respect to Conservation of Energy, Technology
Absorption, Foreign Exchange Earnings and Outgo as required under
Section 217(1) (e) of the Companies Act, 1956 read with Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 are furnished as Annexure - I to this Report and forms part of it.
CORPORATEGOVERNANCE&MANAGEMENT DISCUSSION & ANALYSIS
Report on Corporate Governance is made part of this Annual Report as
Annexure - II and Management Discussion and Analysis Report as Annexure
As required by the Listing Agreements, the Certificate of Auditors on
Corporate Governance compliance is also annexed to this Annual Report.
The Certificate from CEO/CFO was placed before the Board of Directors
at the meeting held on 29th May 2013.
PARTICULARS OF EMPLOYEES
During the year under review no employee has drawn remuneration in
excess of the limits specified under Section 217(2A) of the Companies
Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 as
amended to date.
CASH FLOW STATEMENT
As required under clause 32 of the listing agreement with the Stock
Exchanges, the Cash Flow Statement is attached to the Balance Sheet.
The present Auditors of your Company, M/s. Haribhakti & Co.. Chartered
Accountants hold office until the conclusion of this Annual General
Meeting and being eligible, offer themselves for re-appointment.
The Board has taken note of the qualification made by the Auditors in
their report regarding the Company having recognized
Deferred Tax Asset (DTA) in the absence of convincing evidences to
support virtual certainty about the future taxable income. However, as
explained in the Notes to Accounts, the Board is of a strong opinion
that in view of the improved market scenario and the infusion of fresh
funds, the Company will have sufficient future taxable profits.
The other observations of the Auditors in their report read with the
relevant Notes are self explanatory.
The cost accounting records maintained by the company are subject to
audit by the qualified Cost Auditors. Your Company has appointed M/s.
Nanty Shah and Associates, qualified Cost Accountant for conducting the
audit of cost account records for the year ended 31st March 2013 and
the Cost Audit report will be submitted to the Ministry of Corporate
Affairs, Government of India in due course. The Cost Audit report for
the year ended 31s1 March, 2012 was filed on 3rd January, 2013.
The industrial relations remained cordial throughout the year under
The Directors wish to place on record their appreciation for the
continued support and co-operation received from the Banks, Financial
Institutions, Government Authorities, Share holders, Suppliers and
Dealers. They also deeply appreciate the commitment and dedication of
employees at all levels.
By Order of the Board
Place: Mumbai S. K. Bangur
Date: 29th May, 2013 Chairman