The Directors take pleasure in presenting herewith 22nd Annual Report
on the working results of the Company together with the Audited
Statement of Accounts for the financial year ended 31st March, 2014.
1. FINANCIAL RESULTS
(Rs. in Lakhs)
PARTICULARS Year Ended Year Ended
Gross Revenue Net of Excise 1544.02 1208.06
Increase/(Decrease) in Stock (17.09) 18.24
Gross operating profit 109.57 120.65
Interest/financial Charges 0.32 3.75
Depreciation 44.43 44.76
Profit Before tax (PBT) (22.66) (24.45)
Profit after tax (PAT) (17.27) (18.24)
Earnings per Share (0.34) (0.36)
i) Loss for the current financial year ending 31.03.2014 after
depreciation from continuing operations after tax is Rs. 17.27 Lakhs as
against loss of Rs. 18.24 Lakhs last year after depreciation, however
during in year under review Company earned cash profit of Rs. 21.77
Lakhs for the financial year ending 31.03.2014 & Rs. 20.31 Lakhs for
the financial year ending 31.03.2013.
ii) During the financial year ended 31st of March 2014, company really
suffered on account of major power cuts & irregular supply of
electricity by UPSEB apart from increase in tariff rates by 35%, due to
which there is increase in power & fuel expenses at last effecting
profitability, still company could manage higher production for the
financial year ending 31.03.2014 & earned cash profits.
iii) During the year under review Directors take pleasure to inform all
esteemed shareholders of company, that company paid entire liability of
PICUP as OTS amounting to Rs. 200 Lakhs. As on date there is no
liability of PICUP and company is in the process of filing application
for NOC from PICUP.
iv) As the company is still with BIFR since 2000 & during the year BIFR
also directed by its order dated 23.05.2014 to UPFC to accept 50% of
DADP amount and now company is required to pay a sum of Rs. 25.92
Lakhs out of which company already paid a sum of Rs. 14.81 Lakhs.
v) During the year under review company paid only a sum of Rs. 12.00
Lakhs to Jalan Group with the order of Arbitrator, High Court dated
15.12.2010 due to financial Crunch, however company is making rigorous
efforts to pay the balance amount of Jalan Group as early as possible.
1. FUTURE PLANS & OPERATIONS:
Management of the Company have already taken various steps to modernize
its plant at Gajraula, District Amroha U.P. by adopting new technology
such as hot dispersion in pulp mill section and addition of slotted
screen, dryers and up gradation in Machine Section & addition of
slotted screen in pulp mill section, dyers & purgation in Machine
section. During the year under review certain old machinery was also
replaced by Company. Management also intends to upgrade the quality of
newsprint for better penetration for the possibilities of Export in the
local market. With additional equipments, Company also intend to
increase production capacity for the next financial year. Management
of the company wish to invest a sum of Rs. 75 Lakhs towards up-
gradation of plant & machinery.
Shri P.P.S Chauhan, Shri Atul Kumar Jain, Shri Mahesh Kumar Sodhani,
Shri Ram Avtar Bansal, Shri Parth Chauhan & Shri Pururaj Singh Rathore
Directors of the company who retire by rotation u/s 152 of the
companies Act, 2013 from the board at the 22nd Annual General Meeting
and being eligible offers themselves for re-appointment.
M/S. L.N. Malik & Co., (Firm''s Registration No: 015992N) Statutory
Auditors of Your Company retires at this Annual General Meeting and are
eligible for re-appointment. Members are requested to re-appointment
Auditors until the conclusion of next Annual General Meeting and
authorize directors to fix their remuneration. Certificate from the
Auditors has been received to the effect that their reappointment, if
made, would be within the limits prescribed under section 139, 142 of
the companies Act, 2013.
The notes on accounts and observations of the Auditors in their report
on the accounts of the Company are self-explanatory and therefore, in
the opinion of Directors, do not call for any further explanation.
4. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to section 134 of the Companies Act, 2013, your Directors
i) In the preparation of the annual accounts. The applicable accounting
standards have been followed with proper explanation relating to
ii) Appropriate accounting policies have been selected and applied
consistently and have made judgment and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company as at March 31. 2014 and of the Loss of the Company for
iii) Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 2013, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv) The annual accounts have been prepared on a going concern basis.
Though for the year under review Company did earn cash profit, however
due to huge previous year losses directors of the company did not
declare any dividend for the shareholders of the Company for this year
as well. Directors of the company are hopeful that for next year
company will be able to declare much better results & even declare a
6. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION, R & D CELL AND FOREIGN
EXCHANGE EARNING & OUTGO.
The details required under the Companies (Disclosure of particulars in
the Report of Board of Directors) Rules, 1988 are annexed to this
report as Annexure-I.
7. BOARD OF INDUSTRIAL & FINANCIAL RECONSTRUCTION (BIFR)
The Company was declared sick by BIFR way back in 2000. Board of
Industrial & Financial Reconstruction (BIFR) has appointed Punjab
National Bank as operating agency. The Company has submitted revised
rehabilitation scheme several times to BIFR, finally DRS submitted to
BIFR is duly accepted. Directors are hopeful that DRS submitted by
company will be accepted this time.
8. PARTICULARS OF EMPLOYEES & DISCLOSURE OF INFORMATION
During the year under review, there is no director or employee in
respect of whom the particulars are required to be disclosed under
section 134 of the Companies Act, 2013 read with the Companies
(Particulars of Employees) Rule 1975, accordingly same is not
9. CORPORATE GOVERNANCE
Your Company has taken adequate steps to ensure legal compliance with
the requirements of corporate governance as prescribed under the
Listing Agreement with the Stock Exchange (BSE).
10. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The company has a system of internal controls in place to ensure that
all of the company''s transactions are properly recorded and authorised.
Company''s well defined organisational structure, documented policy
guidelines, defined authority matrix and internal controls ensure
efficiency of operations, compliance with internal policies and
applicable laws and regulations as well as protection of resources.
11. HUMAN RESOURCES
The company is of firm belief that the Human Resources are the driving
force that propels a company towards the progress and success. The
company has strength of 180 employees at present. The Industrial
relations continued to remain cordial during the year under review with
entire force of the company.
Related party transactions - The Company did not enter into any
materiality significant related transactions, which has potential
effect with the interest of the company at large.
14. WHOLE TIME COMPANY SECRETARY
During the year under review Company is already availing services of
whole time company Secretary as required to be appointed under section
383-A of the Companies Act, 1956.
15. MANAGEMENT DISCUSSION & ANALYSIS REPORT.
The Management Discussion & Analysis Report as required under clause
49(IV)(F) of the listing Agreement with the Stock Exchanges forms part
of this report.
16. FINANCIAL ACCOUNTING & ACCOUNTING STANDARDS:-
The Financial statements have been prepared in accordance with
Generally accepted accounting principles (GAAP) and in compliance with
all applicable accounting standards and as per the guidance note on
accounting for activities of the company issued by the Institute of
Chartered Accountants of India, New Delhi (ICAI) and provisions of the
companies Act,2013. The financial statements have been prepared under
the revised schedule VI format of the companies Act,2013 pursuant to
notification of Ministry of corporate affairs (MCA), Government of
India. The Company has followed accounting treatment as prescribed in
accounting standards applicable to the company.
Website of the company consisting all required particulars is duly
The company has not accepted any fixed deposits under section 2(31), 73
& 74 of the companies Act, 2013 during the year under review.
19. CORPORATE GOVERNANCE REPORT
The Company is committed to maintain highest standards of Corporate
Governance. The Directors Adhere to the requirements set out by (SEBI).
The Securities & Exchange Board of India''s Corporate Governance
practices and has implemented all the stipulations prescribed. The
Company has implemented several best corporate Governance practices as
prevalent in India. Company has complied with the mandatory provisions
of clause 49 of the listing agreement relating to corporate Governance
requirements. Annual report contains a separate section on corporate
Governance which forms part of this report. Your company is listed with
Bombay Stock Exchange; though for the time being trading is suspended
due to certain deficiencies in compliance of BSE requirement, which are
in the process of compiling. Directors of the company are quite hopeful
to get recited of its security soon.
20. CEO/CFO CERTIFICATION:
Certification from Mr P.P.S. Chauhan, Whole Time Director of the
company in term of Clause 49 (VIII) of the listing agreement with the
Stock exchanges for the financial year ended on 31st March, 2014 was
placed before the Board of Directors of the Company in its meeting held
Your Directors place on record its sincere appreciation towards the
company''s valued customers in India for the support and confidence
reposed by them in the organization and looks forward to the
continuance of this mutually supportive relationship in future as well.
The Board also places on record co-operation extended by Financial
Institutions PICUP, business associates of the Company, and confidence
reposed by the Shareholders and invaluable staff & workers of the
Regd. Office: For Coral Newsprints Limited
A-138, First Floor, Vikas Marg,
Place : Delhi P.P.S. Chauhan
Date : 02.09.2014 (Director - WTD)