The Directors take pleasure in presenting the Ninth Annual Report on
the business and operations of the company and its financial results
for the year ended 31st March, 2013.
Financial Results of the Company for the financial year ending 31st
March 2013 are summarized below for your consideration:
PARTICULARS 31-03-2013 31-03-2012
REVENUE FROM OPERATIONS 21440.35 22,012.71
PROFIT BEFORE INTEREST AND
DEPRECIATION -299.40 1,783.98
INTEREST 943.78 1,068.42
DEPRECIATION 524.76 518.06
PROFIT BEFORE TAX & PRIOR PERIOD
AD], -1767.95 97.50
PRIOR PERIOD ADJUSTMENT 0.00 9.00
NET PROFIT BEFORE TAX -1767.95 188.50
PROVISION FOR TAXES 630.05 79.35
NET PROFIT AFTER TAX -1137.45 109.15
TRANSFER TO GENERAL RESERVE 0.00 10.92
The fiscal year under review was a very crucial year for the steel
industry. Steel manufacturer''s especially domestic steel manufacturing
suffered heavily due to high input prices such as of power and iron ore
without corresponding increase In selling prices of finished products
resulting into lower realizations.
During the year under review despite adverse factors, the Company has
achieved sales revenue of Rs. 214.40 crores as against Rs.220.12 crores
in the previous year thereby registering a marginal decrease of 2.6%
over the previous year. However, the company has suffered a loss as
against profit in the previous year due steep prices in the raw
material, stores and consumables, fuel and power cost. The company is
procuring coal from outsources.
The company is enduring to cope up with the recessionary trends in the
market by cutting down the manufacturing cost. The present economic
recession will continue for some more time. The current year may not
much improve the profitability. However, the director are very
optimistic that barring unforeseen circumstances, the company will come
out the present situation in the next year.
The company continues to adopt safety measures to protect the health of
workers. Company has complied with the measures to be taken regarding
hazards or risks to safety and health from the production of iron and
steel, Including appropriate standards, codes and guidelines as
prescribed, approved or recognized by the competent authority.
Company has properly maintained workplaces, plant, equipment, tools and
machinery, and also organized work in such a manner so as to eliminate
and control hazards and risks in the production of iron and steel,
which is in consistent with national laws and regulations.
Company in consultation with workers and their representatives, looks
(i) assessment of the hazards and risks to the safety and health of
workers arising from the production of iron and steel,
(ii) effective use of the information provided by the supplier of
equipment or materials and from other reasonably available sources; and
(Mi) measures to reduce exposure to eliminate or control risks to
safety and health Identified in the above risk assessment.
POLLUTION CONTROL MEASURES
The company has installed Waste Heat Recovery Boilers (WHRB) equipped
with 3 kilns 100 X 3 MT per day capacity, which helps to generate 12 Mw
power/hour preventing the waste, heat and fumes to dilute in the
atmosphere. Emission Stream Pre-treatment (ESP) machines are
implemented to filter the gases from the all the chimneys of the
industry. Plantation is a vivacious step taken by the company to cover
most of the area near the industry.
INCREASE UN SHARE CAPITAL
During the year under review, your company Issued 1299500 (Twelve Lacs
Ninety Nine Thousand Five Hundred) equity shares by way of preferential
allotment and making total subscribed, issued and paid up equity share
capital to Rs. 27,29,02,000 (Rupees Twenty Seven Crore Twenty Nine Lacs
two Thousand only) divided into 27290200 equity shares of Rs. 10/- each
as on date of this report.
With a view to conserve the liquid resources and to strengthen the
financial position of the Company, we have decided not to recommend the
dividend for the financial year ended 31st March 2013.
The Company is Listed on Bombay Stock Exchange (BSE) and National Stock
Exchange (NSE) . The Annual Listing Fee for the year 2012-2013 had been
paid to those Stock Exchanges where the company''s shares are listed.
Shri Sanjay Jadhwani, Independent Director & Shri Yashwant Vaswani,
Whole Time Director Director are due to retire at the ensuing Annual
General Meeting and being eligible, offer themselves for
re-appolntment. None of the Directors of the Company are disqualified
from being appointed as directors specified in section 274 (1) (g) of
the Companies Act, 19S6.
CONSERVATION OF ENERGY ft TECHNICAL ABSORPTION ft FOREIGN EXCHANGE
In accordance with the requirements of section 217 (i) (e) of the
Companies Act, 1956 read with the companies (Disclosure of Particulars
in Report of Board of Directors) Rules 1988, a statement showing the
information relating to the Conservation of Energy, Research and
Development, Technology absorption and foreign exchange earnings and Is
enclosed in Form- A and should be treated as a part of this report.
No employee was in receipts of remuneration exceeding the limits set
out under Section 217 (2A) of the Companies Act, 1956.
The Auditors, M/s Sunil John & Associates, Chartered Accountants,
Raipur will retire at the conclusion of the ensuing Annual General
Meeting and they being eligible, have offered themselves for
The Company has received letter from the auditor to the effect that
their re-appointment, if made, would be within the prescribed limits
under Section 224(1B) of the Companies Act, 1956 and that they are not
disqualified for re-appolntment within the meaning of Section 226 of
the said Act
During the year, the Central Government prescribed the Cost Accounting
Records to be maintained by the Company and also mandated that Cost
Audit of eligible products/services be carried out. Therefore, the
Board had appointed M/s. S C Mohanty & Associates, Raipur as Cost
Auditors for the year 2011- 12 and also for 2012-13 pursuant to Section
233B of the Companies Act 1956.
The Company has received letter from the Cost Auditor to the effect
that their appointment and re-appointment, if made, would be within the
prescribed limits under Section 224(1B) of the Companies Act, 1956 and
that they are not disqualified for re-appolntment within the meaning of
Section 233B (5) read with section 224 and section 226 (3) & (4) of the
AUPITQRS QUALIFYING REMARKS
The notes to the accounts are self explanatory in respect of remarks of
the auditors appearing in their report.
CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Company has been practicing good Corporate Governance over the time. In
addition to basic governance issue the board lays strong emphasis on
transparency, accountability and integrity for building investor
confidence, improving investor''s protection and maximizing long-term
Pursuant to Clause 49 of the Listing Agreements with the Stock
Exchanges, the followings form part of this Annual Report:
(i) Managing Director''s declaration regarding compliance of Code of
Conduct by Board Members and Senior Management personnel;
(it) Management Discussion and Analysis;
(iii) Report on the Corporate Governance;
(iv) Auditors'' Certificate regarding compliance of conditions of
Industrial relations in the company during the year were peaceful,
cordial and healthy. Company had been able to maintain peaceful
industrial atmosphere and mutual trust between the management and the
The Company has not accepted Public Deposit within the meaning of
Section 58A of the Companies Act, 1956 after complying necessary
formalities. There are no overdue or unclaimed deposits.
DIRECTORS'' RESPONSIBILITY STATEMENT
The Board takes this opportunity to sincerely thank all its
stakeholders namely, shareholders, customers, suppliers/contractors,
bankers, employees, government agencies, local authorities, and the
immediate society for their un-stinted support and co-operation during
For and on behalf of the Board of Directors
Raipur, 30th May 2013 (Chairman & Managing Director)