The Directors take pleasure in presenting 53rd annual report on the
business and operations of your company along with the summary
financial statements for the year ended 31st March, 2014.
1) FINANCIAL RESULTS :
(Amt. in Rs.)
Sr.N Particulars FY 2013-14 FY 2012-13
1 Sales and Service Charges 737,675,898 802,682,485
2 Profit before Interest
and Depreciation 22,928,825 23,802,772
3 Less: Interest and Finance
Charges 15,230,041 13,543,513
4 Less: Depreciation 7,411,208 7,066,027
5 Profit after Interest and
Depreciation 287,576 3,193,232
6 Less :Provision for Taxation
a) Current Tax 2,050,000 2,855,000
b) Income Tax
(Earlier Years) 88,133 328,169
c) Deferred Tax (2,067,535) (117,203)
7 Net Profit after Taxation 216,978 127,266
8 Add Brought forward Balance
of Loss (2,144,783) (2,272,049)
9 Surplus or Deficit carried
over to Balance Sheet (1,927,805) (2,144,783)
2. REVIEW OF OPERATIONS & FUTURE OUTLOOK:
The financial year 2013-2014 has been a challenging year with subdued
economic growth, due to higher inflation, higher interest rates, lower
industrial growth and lower investments in the country, along with poor
condition of the global economy. The said causes have affected the
growth of the industry limiting the product demand with compressed
During the year under review, despite the adversities the production
performance of the Company has been almost at par as compared to the
previous year. However, the lower demand for the products and the high
cost of raw materials have been the main causes bringing the financial
performance of the Company at marginal level.
During the period, the Company witnessed the sales turnover of Rs.
8284.83 Lacs (Own Unit 8242.52 Lacs and Conversion / Service 42.30
Lacs) as against Rs. 9018.41 Lacs (Own unit: 8997.89 Lacs and
Conversion / Service 20.52 Lacs) during the previous year. After
providing Rs. 74.11 Lacs for depreciation and Rs.152.30 Lacs against
interest and further providing Rs. 70,598/- towards taxation (Net), the
Company posted net profit after tax of Rs. 2.17 Lacs as against Rs.
1.27 Lacs during the previous year.
Looking to the positive signs the businesses are presently reflecting
your Directors look forward to better market conditions in the steel
sector of the country. The Indian economy is expected to perform
comparatively well in the coming years. With a stable government at the
centre, significant policy changes are anticipated in the near future.
The government focus on infrastructure development, more foreign direct
investment inflow and more transparency in governance is likely to
significantly increase the business confidence in the country.
Improving automobile and consumer durable sectors are expected to raise
the flat steel demand compared to last year, while long steel demand is
expected to fare relatively better due to an uptick in construction
activities and the planned infrastructure growth.
The Company has, pursuant to the provisions of Clause 49 of the Listing
Agreements entered into with Stock Exchanges, appointed Shri H.K. Dass,
Shri R.P. Mohanka and Shri Ramesh Mantri as Independent Directors of
the Company. The Company has received declarations from the said
Independent Directors of the Company confirming that they meet the
criteria of independence as prescribed both under sub-section (6) of
Section 149 of the Companies Act, 2013 and under the said Clause 49. In
accordance with the provisions of Section 149(4) and proviso to Section
152(5) of the Companies Act, 2013, these Directors are being appointed
as Independent Directors to hold office as per their tenure of
appointment mentioned in the Notice of the forthcoming AGM of the
In accordance with the requirements of the Act and the Articles of
Association of the Company, Smt. Poonam Sarda retires by rotation and
is eligible for re-appointment.
4. PUBLIC DEPOSITS:
The Company has not invited or accepted any public deposit during the
year under review.
5. AUDITORS'' REPORT & AUDITORS:
The Auditor''s Report and its Annextures are self-explanatory. M/s Loya
Bagri & Co., Chartered Accountants, Nagpur retire as Statutory Auditors
of the Company at the conclusion of 53rd Annual General Meeting and are
eligible for re-appointment.
Clause No. (7) of the Auditor''s Report needs explanation:
Steps are being taken to make necessary application to the Company Law
Board/Regional Director for composition of the irregularities in that
6. LISTING OF SECURITIES:
The Shares of the Company continued to be listed at the stock exchanges
namely Bombay, Ahmadabad, Kolkataand Pune. The Company has made due
payment of the listing fees in respect of the financial year 2014-2015.
7. PARTICULARS OF EMPOYEES :
The particulars of employees as required under the provisions of
Section 217(2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975 as amended, need not to be
furnished as none of the employees was in receipt of remuneration
exceeding the prescribed limits.
8. CONSERVATION OF ENERGY, TECHNOLOGY, FOREIGN EXCHANGE:
The information in accordance with the provisions of Section 217 (1)
(e) of the Companies Act, 1956 read with Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules,1988 regarding
conservation of energy, technology absorption, foreign exchange
earnings and outgo, is given in the Annexure forming part of the
Due to inadequate profit, your Directors express their inability to
recommend any dividend for this year.
10. CORPORATE GOVERNANCE :
A section on Corporate Governance and a certificate from the Auditors
of the Company regarding compliance of Corporate Governance as
stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges is given herein after separately and forms part of this
11. DIRECTORS'' RESPONSIBILITY STATEMENT:
Pursuant to section 217 (2AA) of the Companies Act, 1956 your Directors
to the best of their knowledge and belief hereby confirm that:
i) In the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanations relating to
ii) Appropriate accounting policies have been selected and applied
consistently and have made judgments 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 31.03.2014.
iii) Proper and sufficient care has been taken 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 irregularities.
iv) The annual accounts have been prepared on a ''going concern'' basis.
12. DEMATERIALIZATION OF SHARES:
The Company has established electronic connectivity with both the
Depositories viz. National Securities Depository Limited (NSDL) and
Central Depository Services (India) Limited (CDSL) through the
Registrar & Transfer Agent of the Company M/s Adroit Corporate Services
Private Limited. As on 31.03.2014, 24,76,440 shares have been
dematerialized representing 48.78% of the total shares of the Company.
The International Securities Identification Number (ISIN) of the
Company is INE 385M01012.
13. NDUSTRIAL RELATIONS;
During the period under review, the industrial relations have been
Your directors are pleased to place on record their sincere gratitude
to Nagpur Nagrik Sahakari Bank Limited and other Bankers of the Company
for their continued financial assistance and co-operation extended to
the Company during the year.
The Directors wish to convey their appreciation to all of the Company''s
employees for their sincere efforts as well as their collective
contribution to the Company''s performance. The Directors would also
like to thank the shareholders, customers, dealers, suppliers, bankers,
Government and all the other business associates for the continuous
support given by them to the Company and their confidence in its
For and on behalf of the
Board of Directors
Place : Nagpur
Date : 11.08.2014 N.K.Sarda
Chairman & Managing Director