Vallabh Steels Limited
We have pleasure in presenting the 34th Annual Report of the Company
alongwith the Audited Statement of Accounts for the year ended 31st
Current Year Previous year
Revenue from Operations
and Other Income 16959.54 20129.48
Profit before Interest,
Depreciation and Tax 637.03 568.32
Financial Costs 302.36 355.80
Provision for Depreciation 110.27 136.15
Taxes : Current Tax - 12.19
Deferred Tax/Earlier year
tax adjustment (35.11) 377.52 (78.99) 425.15
Profit after Tax 259.51 143.17
Balance b/f from Previous 2730.53 2612.37
Profit available for 29 90.04 2755.54
Transferred to General 25.00 25.00
Surplus Carried to 2965.04 2730.54
29 90.04 2755.54
During the year under review the Company has recorded a lower Income
from operations which is placed at Rs. 16959.54 lacs as compared to Rs.
20129.48 lacs of previous year thus representing a decline of about
16.27 % which is attributed to lower production resulting in lower
sales. However the net profit after tax is Rs.259.51 lacs from
Rs.143.17 lacs recording a jump of about 81.26 %. This has been made
possible due to optimum utilisation of resources which has resulted in
We are pleased to inform you that during the year under review, the
Company continued to export its products to African Countries.
Despite wide fluctuation in prices and stiff competition the company
registered higher exports at Rs. 998.08 lacs as compared to Rs. 871.07
lacs in the previous year recording a jump of about 15%.
With a view to conserve resources for Company''s immediate requirements,
your directors do not recommend any dividend for the year under
LISTING OF SHARES
The Equity Shares of the Company are listed at BSE Limited, Phiroze
Jeejeebhoy Towers, Dalal Street, Mumbai. The company has duly paid the
listing fee to BSE Limited, Mumbai upto the Financial Year 2014-15.
During the year, your Company has not accepted any fixed deposits
within the meaning of Section 73 of the Companies Act, 2013 and the
Rules made thereunder.
Mr. Rahul Jain and Mr. Mohinder Pal Gupta, Directors of the company
retire by rotation at the forthcoming Annual General Meeting and being
eligible offer themselves for re-appointment.
Further reappointment of Mr. Mohan Lal, Mr. Mohinder Pal Gupta, and Mr.
Jawahar Jain as independent directors as per Sections 149, 150 & 152 of
the Companies Act, 2013 for a period of 5 years upto the conclusion of
the 39th Annual General Meeting of the Company in the calendar year
2019 for each director is proposed to be made.
Your company has been practicing the principle of good Corporate
Governance over the years. The Board of Directors supports the broad
principles of Corporate Governance. In addition to the basic governance
issues as dictated by compliance of statutory requirements, the Board
lays strong emphasis on transparency, accountability and integrity.
Corporate Governance Report and Management Discussion and Analysis
along with Certificate of the Auditors of your company pursuant to
clause 49 of the Listing Agreement with the Stock Exchange(s) has been
annexed to the report as Annexure-I.
M/s Raj Gupta & Co., Chartered Accountants, Auditors of the company,
retire at the conclusion of this Annual General Meeting and are
eligible for re-appointment. They have furnished a certificate to the
effect that their re-appointment, if made, will be in accordance with
Section 1 39(1) of the Companies Act, 2013.
The Auditors'' Report read with the relevant notes on accounts for the
year under review is self explanatory and do not call for any further
comments as there are no adverse remarks in the Auditors'' Report.
Presently the constituent members of the Audit Committee are Mr.
Mohinder Pal Gupta, Mr. Mohan Lal and Mr. Jawahar Jain. Mr. Mohinder
Pal Gupta is the Chairman of the said Committee. The statutory auditors
and internal auditors are the permanent invitees to the audit committee
meetings. The Committee met four times during the year under review.
The Board of Directors has appointed M/s. Meenu & Associates, Cost
Accountants, Ludhiana as the Cost Auditors of the Company under Section
148 of the Companies Act, 2013 for which application to the Central
Government has already been made seeking approval for appointment of
Cost Auditors to conduct audit in respect of all the Units of the
Company for the financial year 2014-15.
The Cost Audit Report for the financial year 2013-14 will be filed with
the Central Government as per provisions of the Companies Act, 1956.
M/s RCS & Company, the Secretarial Auditors of the Company retire at
the ensuing Annual General Meeting. The appointment of the Secretarial
Auditors is to be approved by the members at the ensuing Annual General
Meeting to verify the Secretarial records and to provide Secretarial
Audit Report for the financial year 2014-15. The Board recommends to
appoint M/s RCS & Company, the Secretarial Auditors and to fix their
Further, the Secretarial Compliance Certificate for financial year
2013-14 received from M/s RCS & Company, Practicing Company Secretaries
is annexed and forms part of this report as Annexure-II.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO.
Information as per Section 217(1)(e) read with Companies (Disclosure of
particulars in the Report of Board of Directors) Rules, 1988 are given
in the Annexure-III forming part of this report.
PERSONNEL AND INDUSTRIAL RELATIONS
The Management - Employees relations remained cordial throughout the
year. The results achieved during the year have been possible only with
the dedication and hard work at all levels of workers, staff and
executives of the Company.
Statement pursuant to Section 217(2A) of the Companies Act, 1956 and
the companies (Particulars of Employees) rules, 1975 as amended :
None of the employees of the Company is receipt of remuneration in
excess of Rs.60.00 lacs per annum or Rs.5.00 lacs per month during the
year under review and as such the information under this head is NIL.
DIRECTORS'' RESPONSIBILITY STATEMENT
Directors'' Responsibility Statement pursuant to the provisions of
Section 2 17(2AA) of the Companies Act, 1956 is given in Annexure-IV
forming part of this report.
CORPORATE SOCIAL OBJECTIVES
Corporate Social Responsibility(CSR) activities of Vallabh Steels
Limited reflect its philosophy of enhancing value to the society and
the environment around us.
Our Philosophy works with objectives of contributing to the sustainable
development of the society and to create a greener and cleaner
environmental around us.
The CSR activities done by the Company are identified after conducting
a proper market research to identify the social and environment needs
which are need of the hour.
Your Directors take this opportunity to express their sincere thanks
and appreciation to the team of executives, staff members and workers
at all levels for their co-operation, hard work, dedication and
devotion. Our thanks are also due to the Bankers, Government
Authorities and Business constituents for their continued support and
co-operation extended from time to time to the Company.
By order of the Board of Directors
PLACE : LUDHIANA (KAPIL KUMAR JAIN)
DATED : 14.08.2014 CHAIRMAN & MANAGING DIRECTOR