Moneycontrol
Get App
SENSEX NIFTY
you are here:

Panchmahal Steels Ltd.

BSE: 513511 | NSE: PANCHMSTEL | Series: | ISIN: INE798F01010 | SECTOR: Steel - Medium & Small

BSE Live

Apr 07, 16:00
16.50 0.75 (4.76%)
Volume
AVERAGE VOLUME
5-Day
3,685
10-Day
2,111
30-Day
1,851
2,100
  • Prev. Close

    15.75

  • Open Price

    15.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

(%)
Volume
No Data Available
  • Prev. Close

  • Open Price

  • Bid Price (Qty.)

    ()

  • Offer Price (Qty.)

    ()

Panchmahal Steels is not listed on NSE

Annual Report

For Year :
2018 2016 2015 2014 2013 2012 2011 2010 2009

Director’s Report

The Directors of your Company present to you the 33rd Annual Report of your Company together with the Statement of Audited Accounts for the year ended 31st March, 2006. FINANCIAL RESULTS (Rs. in crores) Particulars Year ended Year ended 31.03.2006 31.03.2005 Sales & Other Income 327.51 330.16 Total Expenditure 302.75 300.70 Operating Profit 24.76 29.46 Interest, Finance Charges & Exchange Variation 5.51 9.54 Gross Profit for the year 19.25 19.92 Depreciation 3.48 3.46 Net Profit before Exceptional Items 15.77 16.46 Add : Exceptional Items- Credit on account of Restructuring of Debts 11.35 - Add : Exceptional Items- Prior Period Expenses written back - 0.79 Less : Exceptional Items-SMS Project Expenses - 34.76 Profit/(Loss) before Tax 27.91 (18.30) Less : Provision for Taxation 0.11 - Profit/(Loss) for the year 27.80 (18.30) OPERATIONS The Company achieved a turnover of Rs.327.51 crores as against to Rs.330.16 crores during the previous year. Your Company is mainly in production of Stainless Steel Long Products and is concentrating on value added cold finished Stainless Steel Bright Bars and Wires. The Companys products are used in the construction, engineering and consumer durable sectors. Your Company has earned a reputation for quality and reliability, both in international and domestic markets. Globally, the Stainless Steel markets are expected to grow at an average of about five percent, while the domestic market is expected to grow at an average of ten to fifteen percent. DIVIDEND The Directors do not recommend any dividend in view of accumulated losses. REHABILITATION AND FINANCIAL SCHEMES The Company had made reference under Section 15 (1) of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) and was registered with Board for Industrial and Financial Reconstruction (BIFR). The Company has been in discussion with financial institutions for its debt restructuring. During the year, State Bank of India (SBI) has assigned its term debt to Asset Restructuring Company (India) Limited (ARCIL). SBI has also restructured its working capital facilities, resulting in FITL of Rs.4 crores and waiver of the balance overdue interest of previous years. The Company has paid the FITL amount of Rs.4 crores as per the terms of sanction. ARCIL has approved the restructuring package consisting of a term debt of Rs.116.23 crores (assigned to ARCIL by ICICI Bank and SBI). LIC has also approved the restructuring scheme consisting of a term debt of Rs.9.61 crores. The Company has started making payments to ARCIL and LIC as per the sanctioned schemes. NEW SMS PROJECT The Directors are optimistic about the Companys future and growing business prospects. Plans to commission the new. SMS Project are being prepared. DEPOSITS The Company has not accepted any deposits and as such, no amount of principal or interest was outstanding as on 31st March, 2006. STATUTORY DISCLOSURES 1. The information required under the provisions of Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 and forming part of the Report, is given in Annexure-A of this report. 2. The statutory disclosures in accordance with Section 217(1)(e) of the Companies Act, 1956, with respect to conversation of energy, technology absorption and foreign exchange earnings and outgo are made in Annexure-B to this report. 3. A Report on Corporate Governance, pursuant to the revised Clause 49 of the listing agreement, along with the Auditors Certificate regarding compliance of conditions of Corporate Governance and Management Discussion and Analysis are separately given as Annexure-C in this report. DIRECTORS RESPONSIBILITY STATEMENT Yours Directors affirm that the audited accounts containing financial statements for the financial year 2005-06 are in full conformity with the requirements of the Companies Act, 1956. They believe that the financial statements reflect fairly, the form and substances of transactions carried out during the year and reasonably present the Companys financial condition and results of operations. These statements are audited by the statutory auditors M/s K. V. Thakkar & Co. Your Directors further confirm that: i) in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures; ii) the Directors 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 that period; iii) the Directors have taken proper care for the maintenance of adequate accounting records in accordance with the provisions of Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; iv) the Directors have prepared the annual accounts on a going concern basis. Your Companys Internal Auditors have conducted periodic audits to provide reasonable assurances that established policies and procedures have been followed. DIRECTORS Mr. Pradeep Sharma, Director (Operations) of the Company, who was appointed as an Additional Director with effect from 26th October, 2005, holds office up to the date of the forthcoming Annual General Meeting and is eligible for appointment. His appointment as Director (Operations) is for a period of 3 years with effect from 26th October, 2005. The Board of Directors have appointed Mr. Hanish Malhotra as Director (Marketing) of the Company with effect from 1st February, 2006 for a period of 3 years. The Board commends his appointment as Director (Marketing) of the Company. Mr. Milan Shah is appointed as an Additional Director w.e.f. 1st September, 2006. He holds office until the ensuing Annual General Meeting and is eligible for appointment. Mr. N. K. Bharal resigned as a Director with effect from 7th May, 2006. The Board has placed on record its sincere appreciation for his valuable contributions. Mr. Nilesh Mehta and Mr. Amal Dhru, Directors retire by rotation and are eligible for reappointment. AUDITORS The Auditors M/s. K. V. Thakkar and Co., Chartered Accountants, retire and offer themselves for reappointment. The observations made by the Auditors on the accounts are self-explanatory. APPRECIATION The Directors thank to the Banks, Financial Institutions, Shareholders, Customers, Suppliers for their co-operation and support to the Company during the difficult period. The Directors also place on record the appreciation of the dedication and commitment of all its employees. For and on behalf of the Board of Directors Vadodara Ashok Malhotra 1st September, 2006 Chairman & Managing Director ANNEXURE-A to Directors Report Statement pursuant to Section 217(2A) of the Companies Act, 1956 and the Companies (Particulars of Employees) Rules, 1975 and forming part of the Directors Report for the period ended 31st March, 2006 Sr. Name of the Age Designation Remunaration Qualification No. Employee Received (Rs.) Chairman & 01. Mr. Ashok Malhotra 54 Managing 39,54,308 B.Com. Director Sr. Name of the Experience Date of Particulars of last No. Employee (Years) Employment employment 01. Mr. Ashok Malhotra 32 01.12.1976 Nil Note : 1. The amount of remuneration comprises salary, allowances, monetary value of perquisites, commission to the Director and the Companys contribution to Provident Fund but excludes contribution to Gratuity Fund. 2. The Chairman & Managing Director is a relative of Mr. Hanish Malhotra, Director (Marketing) of the Company. 3. The nature of employment for the Chairman & Managing Director is contractual for a period of 3 years from 01.04.2004. Annexure-B to Directors Report for the year ended 31st March, 2006 FORM-A The Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988. Year Year 2005-2006 2004-2005 A. Power and Fuel Consumption : 1. Electricity (a) Purchased Units (Kwh) 42809250 43469700 Total Amount (Rs.) 235530512 242380144 Rate/Unit Rs./Kwh. 5.50 5.58 (b) Own Generation (i) Through Diesel Generator It is Emergency Stand by Utility (ii) Through Steam Turbine/Generator 2. Coal 3. Furnace Oil Qty (Kgs.) 2461205 2499590 Value (Rs.) 38218145 29210089 Average Rate Per Kg. (Rs.) 15.53 11.68 B. Consumption per unit of production Products Electricity (Kwh Per Tonne) Billets 835 827 Rolled Products 226 226 Forged Products 162 192 Furnace Oil (Liters per Tonne) Billets 17.44 16.34 Rolled Products 45.98 47.21 Forged Products 243.64 213.15 FORM-B Disclosure of Particulars with respect to Technology Absorption : 2005-2006 I. Research & Development (R&D) : 1. Specific area in Which R & D carried out by the Company : Nil 2. Benefits derived as a result of the above R&D : Nil 3. Future Plan of Action : Nil 4. Expenditure on R & D : Nil II. Technology Absorption, Adaptation and Innovation : 1. Efforts, in brief, made towards Technology Absorption and Innovation. Innovation and technology adaptation is an integral part of Company work culture. The operating personnel work as a team for effective adaptation and absorption of technology. 1. Benefits derived as a result of the above efforts The above efforts have resulted in improved quality and reproducibility of Companys products. It has also helped improved yields and reduced costs. 3. Technology Imported During last 5 years. : Nil III. Foreign Exchange Earning and Outgo : i) Foreign Exchange earned : Rs.99.68Crores (Rs.98.68crores) ii) Foreign Exchange used : Rs.122.76Crores (Rs.136.96Crores) For and on behalf of the Board of Directors Vadodara Ashok Malhotra 1s September, 2006 Chairman & Managing Director

Director’s Report