Readymade Steel India Limited
The Directors are pleased to present the 7th Annual Report together
with the audited accounts of the Company for the fnancial year ended
31st March, 2013.
The brief highlights of fnancial results of the Company for the
Financial Year 2012-13 as compared to the previous fnancial year
2012-13 are as under:
(Rs. in Lacs)
2012-13 2011-12 2012-13 2011-12
Sales 5079.36 7749.431 46915.1
Other Income 43.82 87.61 1099.75
before Tax 88.91 287.451 4143.881
[Current Tax 17.791 57.851 454.291
Deferred Tax -28.32 3.3 -28.32
After Tax 99.441 226.31 3431.261
brought forward 537.541 311.241 1 1
earlier years -1 -1 -1 -1
for gratuity 1.131
to Balance Sheet 635.851 537.541 -1 -1
In view of the need to conserve resources, the Board of Directors does
not recommend any dividend for the year.
During the year under review, on standalone basis, the Company
reported, revenue from operations at Rs. 5079.36 lacs as compared to
Rs. 7749.53 lacs in the previous year. Proft before tax decreased to
Rs. 88.90 lacs from Rs. 287.45 lacs and proft after tax declined to Rs.
99.44 lacs as compared from Rs. 226.3 lacs in previous fnancial year.
The business environment has been challenging due to sluggishness in
Indian economy and high volatility in the exchange rate. Your Directors
are confdent that the company will strive hard to deliver and improved
performance and confdent of future growth of the company.
On consolidated basis, the revenue from operations stood Rs. 46915.1
lacs during fnancial year 2012-13. Proft before tax reported at Rs.
4143.88 lacs and proft after tax was Rs. 3431.26 lacs. On Consolidated
basis the EPS of the company is Rs. 29.28 EPS for fnancial year 2012-13
against EPS of Rs. 2.10 on standalone basis.
As per the provisions of Section 256 of the Companies Act, 1956, Mr.
Sandeep Mittal, Director of the Company shall be liable to retire by
rotation at the ensuing Annual General Meeting and being eligible,
offer himself for re-appointment.
EMPLOYEE STOCK OPTIONS:
As per scheme of RMS ESOS 2010, Company shall grant such number of
options convertible into Equity Shares as may be determined by the
Compensation-cum-Remuneration Committee (''the Grant”). The
Compensation-cum-Remuneration Committee has granted 1,16,000 options
pursuant to its resolution dated November 8, 2010. Each option shall
entitle an employee to one Equity Share and the maximum number of
options that may be granted under ESOS 2010 is 1,16,000.
Till date Company has not allotted any shares pursuant to scheme of
SUBSIDIARY COMPANIES AND THEIR BUSINESS
The company has expanded its business/ presence in Singapore through KH
Foges Pte. Limited, acquired by your Company''s wholly owned subsidiary
Readymade Steel Singapore Pte, Limited. The principal activities of the
KH Foges are those of civil engineering, piling, foundation and
geotechnical engineering works, mixed construction activities and
marine services. The turnover of the company KH Foges Pte. Limited as
of March 2013 was Rs. 41835.74 lacs as compared to Rs. 32651.35 lacs
for the year ended 2011. Proft before tax stood at Rs. 4054.98 lacs in
2012- 13 against Rs. 2202.75 lacs for the year ended December
2011.Proft aftertax rose to Rs. 3331.83 lacs against Rs. 1841.43 lacs
in December 2011.
Till now the company has completed 180 projects. Today the company''s
expertise continues to be in demand in challenging piling and
foundation projects. The expertise spans across services like pre-cast
piling and jointed piling; cast in place concrete piles, driven and
bored piling. The experience in ground engineering has strengthened the
competencies in erecting vertical structures.
M/s. M K P S & Associates, Chartered Accountants who are to retire at
the conclusion of the forthcoming Annual General meeting, have offered
themselves for re-appointment as Auditors of the Company. A written
certifcate to the effect that their appointment, if made, would be
within the prescribed limits under Section-224(1B) of the Companies
Act, 1956, has been obtained by the Company from them. The members are
requested to consider their re-appointment and fx remuneration.
The observations of the Auditors in their report read together with the
Notes to Accounts are self explanatory and therefore, in the opinion of
the Directors, do not call for any further explanation. The auditor''s
reports do not contain any reservation, qualifcation & adverse remark
for the fnancial year under review.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A detailed section on the Management Discussion and Analysis forms part
of this Report as Annexure I
Your Company has implemented the conditions of Corporate Governance as
contained in Clause 49 of listing agreement. Separate reports on
Corporate Governance forms part of this report as Annexure II
DIRECTORS'' RESPONSIBILITY STATEMENT
In terms of Section 217 (2AA) of the Companies Act, 1956, the directors
i) In the preparation of the Annual Accounts, the applicable accounting
standards had been followed along with proper explanation relating to
ii) Appropriate accounting policies have been selected and have 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 fnancial year 2012-2013 and Proft of
the Company for that the year ended on 31st March, 2013;
iii) Proper and suffcient care has been taken for the maintenance of
adequate accounting records, in accordance with the provisions of the
Companies Act, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv) The annual accounts have been prepared on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO:
CONSERVATION OF ENERGY:
The scope for conservation of energy is limited in the type of industry
in which your Company is engaged. However, the Company continues to
accord high priority to conservation of energy by opting for more power
effective replacements of equipments and electrical installations. No
specifc investment proposals are envisaged.
Form ''A'' of Companies (Disclosure of Particulars in the Report of Board
of Directors) Rules, 1988 is not applicable as our industry is not
included in the Schedule to the said Rules.
Every effort is being made by the company to update the technological
skills of its technical staff in order to ensure that they possess
adequate skills to enable them to serve the Company''s clients.
FOREIGN EXCHANGE EARNINGS AND OUTGO:
The relevant information in respect of the foreign exchange earnings
and outgo has been given in the Notes forming part of the Accounts for
the year ended on 31st March, 2013.
PARTICULARS OF EMPLOYEES:
In terms of provisions of Section 217(2A) of the Companies Act, 1956
read with the Companies (Particulars of Employees) Rules, 1975 as
amended the Company has no employees who were in receipt of the
remuneration of Rs. 60,00,000/- or more per annum during the year ended
31st March, 2012 or Rs. 5,00,000/- or more per month during any part of
the said year.
Your Directors would like to express their sincere appreciation for the
co-operation and support received from the Banks, Financial
Institutions, Shareholders, Customers and Suppliers. The Directors also
commend the continuing commitment and dedication of the employees at
all levels, which has been critical for the Company''s success. The
Directors look forward to their continued support in future.
For and on behalf of the Board
For Readymade Steel India Limited
Place: Mumbai Anil Agrawal
Date: 31.08.2013 Managing Director