TO THE MEMBERS
Your Directors have pleasure in presenting the 46th Annual Report of the Companytogether with the Audited Profit & Loss Account for the year ended on 31.03.2014 andthe Balance Sheet as on that date.
(Rs. in lacs)
| ||Year ending 31.03.2014 ||Year ending 31.03.2013 |
|Turnover ||30482 ||16026 |
|Gross Profit before Finance Cost and Depreciation ||3816 ||862 |
|Finance Cost ||1021 ||461 |
|Profit after Finance Cost ||2795 ||401 |
|Depreciation ||2272 ||361 |
|Net Profit before Tax ||523 ||40 |
|Tax ||32 ||8 |
|Net Profit for the year ||491 ||32 |
During the year Turnover for the financial year under review is Rs. 30482 Lacs againstRs. 16026 Lacs in the previous year hence an increase in turnover by 90.20% and Profitafter tax for the year is Rs. 491 Lacs as against Rs. 32 Lacs for the previous year theCompany has sold the Vacant Land bearing Khasra No.115 42/48 43 44 45 45/48admeasuring 47044.61 Sq. Mtr. situated at Kanakpura P.O. Meenawala Jaipur and thenon-operating profit on account of the above sale Rs. 2317 Lacs is included further theCompany has changed the depreciation method for Unit-ll (TMT Rebar Project) from last yearand has adopted Written Down Method from financial year 2013-14 instead of Straight LineMethod adopted till 2013. Depreciation is provided at WDV at the rates specified inSchedule XIV and provisions made therein of Companies Act 1986 (as amended) on theOriginal Cost.
For Unit-I (Flat Rolled Products Division) the Company has identified certain Plant& Machineries as "Continuous Process Plant" during financial year 2006-07and depreciation on the same is being provided for at the rated specified under scheduleXIV of the Companies Act 1956 (as amended) for continuous process plant till 2013. Duringthe financial year 2013-14 the Company has changes its method from Continuous ProcessPlant to Triple Shift Plant".
FINANCIAL CONDITION AND RESULTS OF OPERATION
Management discussion and analysis of Financial Condition and Results of operation ofthe company for the year under review as stipulated in clause 49 of the listing agreementwith the Stock Exchange is given as a separate statement in the Annual Report.
SHIFTING / MODERNISATION PROJECT
The Company has acquired new land bearing khasra no. 1378 1379/2 1380 1381 13821383 1384 1385 139213931394/21395/2 admeasuring 3.48 Hectare at Village SepatpuraPatwar Halka Dhawli Tehsil Shahpura Dist. Jaipur for shifting its existing operations ofUnit-I (Flat Rolled Products Division) and the land was industrial converted by thecompetent authority and foundation and civil work is going on at the site.
To consolidate the long-term resources for enhanced working capital and to maintain thegrowth in productivity profitability and turnover the Directors of your Company areconstrained not to recommend any dividend for the year under review.
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION
Information pursuant to Section 217 (1)(e) of the Companies Act 1956 with Companies(Disclosure of particulars in respect of Board of Directors) Rules 1988 is given inAnnexure-A to this report and forms part of this report.
PARTICULARS OF EMPLOYEES
As none of the employee of the Company falls within the purview of information requiredunder section 217 (2A) of the Companies Act 1956 read with the companies (Particulars ofEmployees) Rules 1975 as amended the same is not furnished.
The Company has enjoying the Financial Assistance for Unit-I (Flat Rolled ProductsDivision) from Consortium in which Allahabad Bank is Lead Banker and Other ConsortiumMembers are Bank of Maharashtra State Bank of Bikaner & Jaipur and Indian OverseasBank and the consortium bankers are taking care of the all financial requirements of theCompany. For Unit-ll (TMT Rebar Division) the Company has repaid the Whole OutstandingTerm Loan of RIICO for Rs. 18.98 Crores out of the Sale Proceeds received from the sale ofthe vacant land bearing Khasra No.115 42/48 43 44 45 45/48 admeasuring 47044.61 Sq.Mtr. situated at Kanakpura P.O. Meenawala Jaipur and the financial assistance forUnit-ll (TMT Rebar Division) is from Indian Overseas Bank.
Your Directors are pleased to inform you that during the year under review allcompliances related to listing with the recognized stock exchange within India have beenduly complied.
During the year under review Mr. Vipin Behari Lai Mathur retire by rotation at theensuing Annual General Meeting and being eligible offers himself for re-appointment.According to the provisions of the new Companies Act 2013 independent directors shallhold office for a term up to five consecutive years and shall be eligible forre-appointment on passing of special resolution by the shareholders of the Company. TheIndependent Directors of the Company were appointed as directors liable to retire byrotation under the provisions of the erstwhile Companies Act 1956. The said directorswill continue to serve their existing term as per the resolution pursuant to which theywere appointed. In view of this Mr. Vipin Behari Lai Mathur Independent Director willcomplete his present term at the ensuing Annual General Meeting and being eligible andseeking re-appointment be considered by the shareholders for his re-appointment for aterm up to five consecutive years. The company has received notice from the Members forhis re-appointment as director of the Company.
M/s. Bansal R. Kumar & Associates Chartered Accountants Jaipur Auditors of theCompany is getting retired at the conclusion of the ensuing Annual General Meeting. M/s.Bansal R. Kumar & Associates being eligible have offered themselves for re-appointmentand they are not disqualified for re-appointment.
The observations made in the Auditors Report are self explanatory from the notes onaccounts and therefore do not call for any special comments.
THE CORPORATE GOVERNANCE REPORT
A separate section on Corporate Governance and a certificate from the Auditors of theCompany has been obtained regarding compliance of conditions of Corporate Governance asstipulated under clause 49 of the Listing Agreement with the Stock Exchange form part ofthe Annual Report.
DIRECTORS RESPONSIBILITY STATEMENT
In accordance with the provisions of section 217(2AA) of the Companies Act.1956 yourDirectors State:
i. that in the preparation of the annual accounts for the year ended 31 st March 2014the applicable accounting standards and Revised Schedule VI has been followed;
ii. that appropriate accounting policies have been selected and applied themconsistently and made judgment and estimates that are reasonable and prudent so as to givea true and fair view of the state of affairs of the Company at the end of the Financialyear and of the Profit or Loss of the Company for that year;
iii. that proper and sufficient care has been taken for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of your Company and for preventing and defecting fraud and other irregularities;
iv. that the annual accounts have been prepared on a going concern basis.
Your Directors place on record their appreciation and express their sincere thanks tothe concerned Government Authorities Financial Institutions Banks and Shareholders fortheir help co-operation and support to the company. Your directors sincerely appreciatethe commitment and dedication of employees at all levels and look forward for theircontinued support in the future as well.
For and on behalf of the Board of Directors
Chairman & Managing Director