SHREE RAMA NEWSPRINT LIMITED
The Directors are pleased to present the 23rd Annual Report and the
Audited Accounts for the Financial Year ended 31st March 2014.
FINANCIAL RESULTS (Rs. in lacs)
Year Ended Year Ended
Revenue from operations 40844.76 38283.45
Profit before Interest, Depreciation 1750.80 363.44
Finance Cost 4868.19 4865.45
Profit before Depreciation and Tax (3117.39) (4502.01)
Depreciation 3477.03 (3472.66)
Profit /(Loss) before Tax and (6594.42) (7974.67)
Exceptional Items 5245.56 -
Deferred Tax / (Credit) 202.06 (2305.69)
Net Profit / (Loss) from ordinary (1550.92) (5668.98)
During the year under review the Company improved its capacity
utilization to 94% (98% in the second half of the year) as against 90%
during 2012-13. The average selling price of Newsprint improved by
about 11% during the year. However, the increase in input cost
neutralized most of the benefit and the operating Profit during the year
improved to 4.28% as against 0.94% during 2012-13. Capex projects of
about Rs. 15 crs. were completed during the year which will help improve
the operating effciency of the plant and reduce the fbre cost. The
performance of the paper industry in general (including Newsprint)
remained sluggish during the year.
CORPORATE SOCIAL RESPONSIBILITY
The Company continues to be conscious about its social responsibilities
towards the public living within the vicinity of its Mills. The Company
values human rights and thrives to invest in innovative and efficient
technology for sustainable energy fow and economic growth. Apart from
imparting regular health check facilities for the community in the
nearby villages, distributing free medicines to the needy, we also
supply free Drinking Water on a regular basis to the nearby villages.
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 134(3)(c) OF
THE COMPANIES ACT, 2013
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
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 and
loss of the company for that period;
3. proper and suffcient care has been taken 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;
4. the annual accounts have been prepared on a going concern basis;
5. 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;
6. 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.
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 Shree Kumar Bangur is retiring by rotation at the ensuing Annual
General Meeting and, being eligible, has offered himself for
Lt. Gen. (Retd.) Ashok Kapur is retiring by rotation at the ensuing
Annual General Meeting and has offered himself for appointment as
Independent Director for a period of 5 years.
Shri Narayan Atal who was earlier appointed as a Director liable to
retire by rotation, has offered himself for appointment as Independent
Director for a period of 5 years.
The Board of Directors appointed Shri V. D. Bajaj as an Additional
Director w.e.f. 11.09.2013. He was also appointed as Executive Director
for a period of 3 years. His appointment and the terms of remuneration
are to be approved by the members at the ensuing Annual General
The Board of Directors appointed Shri Mohan M. Phadke and Smt. Namrata
Sharma as Additional Independent Directors w.e.f. 31.01.2014 and
09.08.2014, respectively, who will hold their positions till the date
of the ensuing Annual General Meeting.
The Company has received notices u/s 160 of the Companies Act, 2013,
proposing the candidature of Lt. Gen. (Retd.) Ashok Kapur, Shri Narayan
Atal, Shri V. D. Bajaj, Shri Mohan Phadke and Smt. Namrata Sharma for
appointment of directors at the 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
u/s 134(3)(m) of the Companies Act, 2013 read with Companies (Accounts)
Rules, 2014 are furnished as Annexure – I to this Report and form part
CORPORATE GOVERNANCE & 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 Certifcate of Auditors on
Corporate Governance compliance is also annexed to this Annual Report.
The Certifcate from CEO/CFO was placed before the Board of Directors at
its meeting held on 13.05.2014.
PARTICULARS OF EMPLOYEES
The particulars of employees, as required under Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014 are given in
Annexure IV to this Report.
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 evidence s 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 suffcient 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 qualifed Cost Auditors. Your Company has appointed M/s.
Nanty Shah and Associates, qualifed Cost Accountant for conducting the
audit of cost account records for the year ended 31.03.2014 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 31.03.2013 was fled on 27.09.2013.
The industrial relations remained cordial throughout the year under
The Directors wish to place on record and acknowledge their
appreciation and gratitude for the continued co-operation and support
received from the Central Government, the State Government of Gujarat,
Regulatory Bodies, participating Financial Institutions and Banks,
Customers, Suppliers and Dealers. The Directors take this opportunity
to express their appreciation towards the dedication, commitment and
teamwork shown by employees, which has contributed in taking the
Company on the path of prosperity. Your Directors further thank the
fraternity of Members/Shareholders for their continued confdence
reposed in the management of the Company.
On behalf of the Board
Place: Mumbai S. K. Bangur
Date: 09.08.2014 Chairman