The Board of Directors of your company is pleased to place the
Directors'' Report along with audited financial results of the company
for the year ended 31st March 2012.
FINANCIAL PERFORMANCE AUDITED FINANCIAL RESULTS
March 2012 31st
Profit before interest and depreciation (28.13) (1.65)
Interest and finance charges 2.81 1.67
Depreciation 11.47 11.76
Profit before exceptional
and non-recurring items (42.41) (15.08)
Exceptional & non-recurring items - -
Profit before tax (42.41) (15.08)
Provision for Income Tax - (4.93)
Profit after taxation (42.41) (10.15)
Balance brought forward 52.00 63.06
Available for appropriation : 9.59 52.91
- Transfer to General Reserve - -
- Proposed dividend - 0.78
- Tax on proposed dividend - 0.13
Balance carried to the Balance Sheet 9.59 52.00
As the company has reported a loss during the current fiscal'' your
directors do not recommend any dividend for the financial year 2011-12.
OPERATIONS Financial Year 2011 -2012
Your company faced an extremely challenging business environment during
the year 2011-12 Price of fuel oil rose continuously'' administered
prices of coal were increased steeply and cost of wood in North India
increased more than the other regions. These factors undermined the
relative competitive position of your company. These coupled with
excess capacity in the Industry'' led to both erosion of volumes and
margins. Your company has availed enhanced supply of power from the
Grid and stopped running of the DG Sets towards the end of the year
which provided some respite.
Financial Year 2012-13 Prospects
With the growth of economy'' the expected surplus capacity will be much
less and Exchange Rates will enable some Industry players to export
more volumes. These are likely to lead to better realisations. Barring
further spikes in the key input costs'' your company is expected to fare
better during the coming year.
ENVIRONMENT'' POLLUTION CONTROL AND SAFETY
STAR has always been conscious of need for environment preservation''
quality of products and safe working conditions. Your company is
accredited with ISO 14001: 2004 and ISO 9001 : 2008 & IS 18001 : 2007.
Your company''s efforts are well recognized as the company has yet again
been awarded for environmental excellence as well as Safety in Paper
Industry. Your company has all the necessary environmental clearances
from the competent authorities.
SOCIAL FARM FORESTRY
With a view to ensure sustained supply of wood to the Mill and maintain
green cover'' STAR is continuing to promote pulpwood plantation. Your
company has established nurseries in its catchment area with active
co-operation of the farmers.
During the year'' a total of 324 lacs seedlings were distributed among
the farmers covering an estimated area of 12480 hectare. We have given
thrust to distribution of fast growing clones.
Social Farm Forestry assists in enhancing rural income besides easing
pressure on raw material availability to the company.
HUMAN RESOURCE AND WELFARE
Your company continue to lay emphasis on regular training to improve
employee skills. The company continues to have a cordial and harmonious
relations with its employees at all levels. Directors wish to place on
record their deep appreciation for dedication of the employees towards
Your Company did not invite any fixed deposits during the year. The
fixed deposits outstanding aggregated to 0.02 lacs on 31st March'' 2012
(Previous year - Rs. 0.1 2 lacs on 31s1 March'' 2011). There was no
delay / default in repayment of deposits during the year.
The company has complied with the provisions of section 58-A of the
Companies Act'' 1956 and rules made thereunder.
Mr. G.P. Goenka was re-appointed as whole-time director of the company
w.e.f. 15th January'' 2012 for a period of 3 years subject to requisite
approval(s). However Mr. Goenka subsequently resigned from whole-time
directorship. He continues as ''Chairman'' in non-executive capacity with
effect from 1 st April'' 2012.
Mr. Shrivardhan Goenka and Mr. C.M. Vasudev are retiring by rotation at
the ensuing Annual General Meeting and being eligible'' offer themselves
PARTICULARS OF CONSERVATION OF ENERGY'' TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND OUTGO
Particulars regarding energy conservation'' technology absorption and
foreign exchange earnings/outgo pursuant to Section 217 (1 )(e) of the
Companies Act'' 1956'' read with the Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules'' 1988'' are furnished as
Annexure-I to this Report.
PARTICULARS OF EMPLOYEES
Information in accordance with the provisions of Section 217(2A) of the
Companies Act'' 1956 read with the Companies (Particulars of Employees)
Rules'' 1975 as amended regarding employees is given in Annexure to this
report. However as per provisions of Section 219 (1) (b) (iv) of the
Companies Act'' 1956'' the annual report is being sent to all the members
of the company excluding the aforesaid information. Any member
interested in obtaining such information may write to the Secretary at
the company''s registered office address.
DIRECTORS'' RESPONSIBILITY STATEMENT
As required under the provisions of Section 217(2AA) Directors
Responsibility Statement on the preparation and presentation of these
accounts is as per Annexure-ll to this Report.
A separate report on corporate governance'' together with a certificate
from the statutory auditors confirming compliance with corporate
governance requirements has been annexed as Annexure- III to this
M/s Lodha & Co. Chartered Accountants'' retire at the ensuing Annual
General Meeting. They have expressed their willingness to continue in
office'' if re-appointed and have furnished the requisite certificate of
their eligibility pursuant to Section 224(1 B) of the Companies Act''
The qualification of the Auditors in their report read with relevant
notes on the financial statements as mentioned below are
(a) Non-provision of diminution in the value of investment'' if any''
-Note no. 13 (b) of the Balance Sheet.
(b) Managerial remuneration - Note no. 22 (a) of Statement of Profit
Pursuant to Section 233-B of the Companies Act'' 1956'' M/s RJ. Goel &
Co.'' Cost Accountants'' New Delhi have been appointed to audit the cost
accounts for the financial year 2011-12.
LISTING ON STOCK EXCHANGES
The Company''s equity shares are listed with The Stock Exchange'' Mumbai
(BSE) and National Stock Exchange of India Ltd. (NSE). The Company has
paid the requisite listing fees to the stock exchanges for the
financial year under review.
The Board place on record their gratitude to the Company''s customers''
dealers'' suppliers'' Government'' financial institutions'' banks and
employees for their valuable support to the Company.
For and on behalf of the Board
Place : New Delhi G. P. Goenka
Date : 28th May 2012 Chairman