The Directors have pleasure in presenting the 18th Annual Report,
together with the Audited Accounts, for the financial year ended 31st
FINANCIAL RESULTS :
(Rs. In Lakhs)
Year Ended Year Ended
Profit after Interest & Depreciation 1,541.59 1486.04
Provision for Tax 334.29 214.70
Deferred Tax 110.97 276.57
Fringe Benefit Tax 4.97 2.10
Profit after Tax 1091.36 992.67
Add: Taxation Adjustments of Previous Years 63.67 (1.16)
Add: Balance of Profit brought from previous
year 1744.77 1137.33
Profit available for Appropriation 2899.81 2128.84
Interim Dividend Paid - 74.70
Interim Dividend Distribution Tax - 10.48
Equity Dividend Proposed 170.62 170.85
Dividend Distribution Tax 28.99 29.04
Transfer to General Reserve 99.50 99.00
Balance Carried Forward 2600.70 1744.77
Your Directors are pleased to report that your company has recorded
good performance for the year ended 31st March 2008. These results are
attributable to advantages accruing because of backward integration,
improved operational efficiency and prudent financial management
practices followed by the management.
The company achieved a turnover of Rs.44,777.70 Lakhs, as against
Rs.35492.57 Lakhs recorded in the previous year. The company has also
achieved Profit before taxes Rs1,541.59 Lakhs as against Rs. 1486.03
Lakhs recorded in the previous year.
EXPANSION & DIVERSIFICATION PLANS:
Your Company has purchased seven numbers windmills and hence the
capacity of power generation has increased during the year. Your
Company also plans to increase the steel making capacity at
DEFERRED TAX LIABILITY
Pursuant to the sanction of share-holders through the postal ballot
process, an application was made to the High Court of Madras.
This related to the provision of deferred tax liablity against the
credit in the securities premium account.
The sanction of the High Court dated 19th August,2008 has been obtained
for debiting the share premium account towards the Deferred tax
liabilities and the details are us under
The Deterred tax liability for the year 2007-08 is Rs.2,34,26,716/-
Hence Rs. 1,23,29,441/- has been debited to securities premium account
as per the directives of High Court of Madras and the balance of Rs.
1,10,97,275/- be debited to the Profit&Loss account. Further to the
directives of High Court of Madras consequential changes have been made
in the Audited Accounts for the year ended 31st March,2008.
Your Board recommends for your approval a Dividend of 6% i.e. Rs. 0.60
per share which will involve an outgo of Rs.170.62 lakhs. Dividend
Distribution Tax @ 16.955% (including surcharge) would involve an
additional outlay of Rs. 28.99 lakhs to be borne by the company.
During the year, Dr. Pravin Kumar Aggarwal, Director, retires by
rotation and being eligible offers himself for reappointment.
RE-APPOINTMENT OF Mr. RAVI GUPTA
Mr. Ravi Gupta has been re-appointed as Managing Director in the Board
Meeting held on 31st January, 2008 for a further period of 5 years. Mr.
Ravi Gupta brings to the Board his rich experience and the Company
stands to benefit significantly from his expertise.
The observations made in the Auditors Report and Notes on accounts are
self-explanatory and do not require any further explanations.
The Company has not accepted any deposit during the year.
M/S Chaturvedi & Co., Chartered Accountants, Chennai retire at the
conclusion of the ensuing Annual General Meeting and they are eligible
Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988:
a) Particulars with respect to Conservation of Energy, as required
under Part A of the above rules are enclosed as Annexure to this
b) As there are no employees who are in receipt of remuneration
exceeding the limits prescribed, the statement required under section
217 (2A) of the Companies Act,1956, read with Companies (Particulars of
Employees) Rules, 1975 is not provided.
c) Directors Responsibility Statement:
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Board of
Directors of the Company confirm:
i) that in the preparation of the Annual Accounts, the applicable
Accounting Standards have been followed and that there are no material
ii) that they have selected such accounting policies and applied them
consistently and made judgements and estimates that 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 Profit of the
Company for the year under review.;
iii) that they have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the Assets of
the Company and for preventing and detecting fraud and other
iv) that they have prepared the annual accounts on a going-concern
Pursuant to Clause 49 of the Listing Agreement with Stock Exchanges,
Reports on Management Discussion and Analysis and on Corporate
Governance have been included elsewhere in this Annual Report as a
DEMATERIALISATION OF SHARES:
The company has entered into an agreement with National Securities
Depository Ltd. (NSDL) and Central Depository Services Ltd. (CDSL) for
dematerialization of the Companys shares. Members are requested to
hold their shares in demat form since it will help in easy trading in
shares even though they are informed that holding of shares in demat
form is not compulsory but only optional.
Personnel relations with all employees remained cordial & harmonious
throughout the year. Your Directors wish to place on record their deep
appreciation of the efficient and loyal services rendered by all staff
and workforce of the company, without whose wholehearted efforts, such
a good performance would not have been possible.
Your Directors take this opportunity to offer their sincere thanks to
various Departments of Central Government, Government of Tamilnadu,
TNEB, State Bank of Indore, State Bank of Patiala, Corporation Bank and
the Customers, Shareholders and investors for their unstinted support
and assistance and look forward to their continuing support and
For and on behalf of the Board of Directors
For Kanishk Steel Industries Limited
Place : Chennai RAVI GUPTA
Date : 27th August 2008 Chairman & Managing Director