Your Directors have pleasure in presenting the 23rd Annual Report
together with the audited accounts of the Company for the year ended on
31s1 March 2006
A summary of your Companys performance during 2005-2006 is given
Current year Previous year
ended 31st March ended 31st March
i. Explosives (MT) 7496 9554
ii. Detonators (M.Nos) 40.34 45.38
iii. Detonating Fuse (M.Mtrs) 13.77 14.25
i. Explosives (MT) 7548 9441
ii. Detonators (M.Nos.) 39.79 44.92
iii. Detonating Fuse (M.Mtrs.) 13.34 14.11
(Rs. in Lakhs)
(c) Sales Revenue(including
Sales of by products) 2755.97 3023.11
(d) Miscellaneous Income 36.24 39.40
(e) Provision for taxation 11.69 -
(f) Net Profit (+)/Net loss(-) - 1392.99 1396.48
Your Company has shown a turnover of Rs.27.55 crores for the period
Your Company has produced 609 Mts. of Telmix, 4016 Mts. of Slurry
Explosives, 2871 Mts. of Emulsion Explosives during the year 2005-06
when compared to 954 Mts., 5073 Mts., 3527 Mts. in 2004-05
respectively. Due to low production in line with competitive market and
low price realization, the turnover has come down when compared to
previous years Rs.30.23 crores.
As already mentioned in our earlier report your company has completed
the installation of Plant and Machineries to manufacture Mono Methyl
Amine Nitrate (MMAN) based Paper Cartridged Explosives utilizing the
existing Nitroglycerine (N.G.) facilities. Your Company has obtained
required licence for manufacture of MMAN solution and also for trial
manufacture of MMAN based cartridged explosives.
Your Company has initiated action for the manufacture of a chemical - 2
Ethyl Hexyl Nitrate (2EHN) by utilizing the existing Nitration Plant.
Further your company has made an agreement with M/s.MAXAM Corp. an
explosives manufacturing company in Spain. As per the agreement, they
will incorporate a subsidiary Company in India and TEL & their
subsidiary would float a marketing joint venture (JV) Company in India
to market the products of TEL.
In view of loss, your directors do not recommend any dividend for the
year under review.
Your Company during the year under review has exported explosives and
accessories to the tune of Rs.227.61 Lakhs (FOB value).
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO:
The particulars required under 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, the particulars relating to
conservation of Energy is enclosed as Annexure-A. The Foreign Exchange
Inflow during the year under review was Rs.227.61 lakhs (FOB Value).
The Foreign exchange outflow (on CIF basis) was Rs.23.59 lakhs towards
import of Raw materials and Spares. As already informed in the earlier
reports, the imported technology was fully absorbed by the Company.
PARTICULARS OF EMPLOYEES:
During the year none of the employees of the company drew remuneration
in excess of the limit prescribed under the provisions of Section 217
(2A) of the Companies Act, 1956.
During the year under review and till the date of this report, Thiru S.
Gopalakrishnan, I.A.S. and Thiru Shakti Kanta Das, I.A.S., Secretary to
Government, Industries Dept., Govt.of TN have been inducted on the
Board of the Company. Thiru L.K. Tripathy, I.A.S. and Thiru Malik
Feroze Khan, I.A.S., Joint Secretary to Government, Industries
Department have resigned from the Board of TEL.
Your Directors wish to place on record their appreciation of the
valuable services rendered by Thiru L.K. Tripathy, I.A.S. and Thiru
Malik Feroze Khan, I.A.S.
Dr.G. Natarajan will retire by rotation at the ensuing Annual General
Meeting and he is eligible for reappointment
DIRECTORS RESPONSIBILITY STATEMENT:
In compliance with the Provisions of Section 217 (2AA) of the Companies
Act, 1956, your Directors confirm:
(i) that in preparing the Annual Accounts, all the applicable
accounting standards have been followed;
(ii) that the accounting policies are adopted and consistently followed
and the judgements and estimates made 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 loss of the Company for the
(iii) that the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing/detecting fraud and irregularities.
(iv) that the Directors have prepared the Annual Accounts on going
Personnel relations with our employees generally remained cordial and
harmonious throughout the year.
Your Company has taken adequate steps to comply with all mandatory
provisions of Corporate governance as provided in the Listing
Agreements of the Stock Exchange.
A separate Report on Corporate Governance along with a Compliance
Certificate from the Auditors of the Company in this behalf is annexed
with this report as Annexure-B. A report on Management Discussion &
analysis is annexed as Annexure-C as a part of Directors Report.
In terms of Section 619(2) of the Companies Act, 1956, the Comptroller
and Auditor General of India has appointed M/s.V. Ramaswamy lyer & Co.,
Chartered Accountants, Vellore as Auditors of your Company for the year
With reference to the observations of the Statutory Auditors under
paragraph 4 of their report, the note 10 and 16 forming part of the
Annual Accounts of the Company is self-explanatory and therefore do not
call for any further comments.
Your Directors take this opportunity to thank and acknowledge the
co-operation and assistance received from various agencies of the
Central Government, State Government of Tamil Nadu, Tamil Nadu
Industrial Development Corporation Ltd., Financial Institutions, Banks,
Insurance Companies, valued customers and other agencies during the
year under review. The Board of Directors also wish to place on records
their deep appreciation of the continued support of the Shareholders of
For and on behalf of the Board
Place: Chennai-17. S. GOPALAKRISHNAN, I.A.S., SHAKTIKANTA DAS, I.A.S.
Date: 31.07.2006. Managing Director. Chairman.