The Directors are pleased to present the Directors'' Report along with
audited financial results of the company for the year ended 31st March
AUDITED FINANCIAL RESULTS
(Rs. in Cr.)
Particulars Year ended Year ended
31st March, 2013 31st March, 2012
Profit before interest and
depreciation (16.19) (28.13)
Interest and finance charges 4.11 2.81
Depreciation 11.26 11.47
Profit before exceptional
and non-recurring (31.56) (42.41)
Exceptional & non-recurring items - -
Profit before tax (31.56) (42.41)
Provision for Income Tax (2.01) -
Profit after taxation (29.55) (42.41)
Balance brought forward 9.59 52.00
Available for appropriation: (19.96) 9.59
- Transfer to General Reserve - -
- Proposed dividend - -
- Tax on proposed dividend - -
Balance carried to the Balance Sheet (19.96) (9.59)
The Board of Directors do not recommend any dividend for the financial
year 2012-13 taking into consideration reported loss for the year.
Financial Year 2012-13
During the year, your company took many steps to increase volume and
control costs particularly for reducing energy consumption and
optimising fuel mix. While 12% volume growth was achieved and cash
losses curtailed by 30% but losses could not be completely eliminated.
Cumulative impact of input cost increases could not be fully passed on
in finished goods prices.
Prospects for FY 2013-14
Paper consumption is closely linked to economic growth as well as human
development. While India accounts for 16% of the Global population, our
Paper Industry has a share of only 1.6%, clearly indicating the huge
An improvement in demand and increase in finished goods prices was
observed in later part of the year 2012-13. If this trend persists,
barring any unforeseen developments, your company expects better
performance in the coming year. However, continued spurt in raw
material, energy and chemical costs are still a cause of concern.
Your company has identified a number of cost reduction initiatives
which once implemented would ease input cost pressure leading to better
financial performance. STAR will continue to strive for better
operational and financial performance in the coming period.
ENVIRONMENT, POLLUTION CONTROL AND SAFETY
The company has implemented policies and systems to preserve
environment and provide safe working conditions. STAR is accredited
with IS014001:2004, ISO 9001 :2008 & IS018001 :2007.
The company has been once again awarded for environmental excellence
and Safety in Paper Industry reflecting commitment of the company in
safety and environment preservation. The company has all the required
environmental clearances from the competent authorities.
SOCIAL FARM FORESTRY
As in the past, the company continues to assist pulpwood plantation
with active co-operation of the farmers. Number of seedlings and clones
distributed as well as area covered were higher than the previous year.
This initiative is of immense importance to increase rural economy and
enhance availability of wood in your company''s catchment area.
It has been policy of the company to attach paramount importance to the
selection, induction and development of employees. Your company
continues to enjoy cordial and harmonious Industrial relations.
The company did not invite any fixed deposits during the year. There
were no outstanding fixed deposits as on 31st March, 2013 (Rs. 0.02 lac
as on 31 st March, 2012).
The company is in compliance with the provisions of the Companies Act,
1956 and rules made thereunder in respect of deposits.
Mr. Shiromani Sharma and Mr. M.R Pinto are retiring by rotation at the
ensuing Annual General Meeting and being eligible, offer themselves for
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, along with a certificate
from the statutory auditors confirming the compliance with corporate
governance requirements has been annexed as Annexure-lll to Directors''
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 the diminution in value of investment - Note no.
12(b) of the Balance Sheet.
b) provision of managerial remuneration - Note no. 21(a) of Statement
of Profit & Loss.
M/s R.J. Goel & Co., Cost Accountants, New Delhi have been appointed to
audit the cost accounts for FY 2012-13 pursuant to Section 233-Bofthe
Companies Act, 1956.
LISTING ON STOCK EXCHANGES
Your company''s equity shares are listed with National Stock Exchange of
India Ltd. (NSE) and The Stock Exchange, Mumbai (BSE). The company has
paid the listing fees to the stock exchanges for the financial year
The Board of Directors wish to thank the investors, bankers, dealers,
suppliers, Government authorities and employees for their co-operation.
For and on behalf of the Board
Place: New Delhi G. R Goenka
Date: 24thMay,2013. Chairman