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Someshwara Cements & Chemicals Ltd.

BSE: 502187 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Someshwara Cements & Chemicals Ltd
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Someshwara Cements & Chemicals Ltd. (SOMESHWARACEM) - Director Report

Company director report

SOMESWARA CEMENTS AND CHEMICALS LIMITED ANNUAL REPORT 2006-2007 DIRECTOR'S REPORT To The Members Yours Directors have pleasure in presenting the 27th Annual Report on the operations. of the company together with the Audited Accounts for the financial year ended 31st March 2007. FINANCIAL RESULTS: The financial results of the company for the year ended 31st March 2007 as compared to the previous year are as given below. (Rupees) 2006-2007 2005-2006 Sales (excluding VAT &sales tax) 6,31,034 - Less: Excise duty & Education Cess Net sales 6,31,034 Gross Profit Less: finance charges Profit before depreciation 4,77,473 (19,48,783) Less: depreciation Profit before Tax 4,77,473 (19,48,783) Provision Tax Current Deferred Fright benefit Tax Net Profit after Tax 4,77,473 (19,48,783) Add: Profit brought forward from previous year (16,77,48,544) (16,57,99,761) Amount available for appropriation (16,72,71,071) (16,77,48,544) Appropriations: Transferred to General Reserve Profit carried forward to balance sheet Performance Highlights: You will be happy to note that your company has completed the refurbishment of the plant and has been successful in taking trial production. Operations: Completed trial production and awaiting for working capital finance for commencing the commercial production. The company achieved net profit (before tax) of Rs. 4,77,473/- and net profit (after tax) of Rs. 4,77,473/- compared to the net profit (before tax) of Rs.(19,48,783/-) and net profit (after tax) of Rs.(19,48,783/-) in the profit and loss Account, which will be carried forward to the next year. Dividend: Since the Company is still in the revival process the Board is of the view that there is no scope for paying any dividends during the year. Future prospects; The Government of India has giver highest priority for development of infrastructure like housing, real estate, roads, railways, ports and airports. In addition, the Government of Andhra Pradesh has taken up construction of large and medium irrigation projects during the next two years. As the irrigation projects require huge quantities of cement, the demand for cement will go up rapidly. In view of this, it is expected that the demand for cement will grow @ 10% p.a. to 12% p.a. in the coming years. With rapidly growing housing, infrastructure and special Economic Zones (SEZs), the cement industry is expected to record excellent growth in the near future. The Indian cement industry is experiencing a boom driven by soaring housing sector and increased activity in infrastructure development. The cement industry witnessed a significant growth of 11.3% during 2006 against 9.4% during 2005. During the year, most cement companies operated at high capacity utilization levels to meet increasing demand. While the pricing environment was favourable during the year,there were significant increases in costs particularly in energy and transportation. Capital Expenditure: During the year 2006-2007, the company has incurred capital expenditure of Rs. 4.05 crores. Shifting of Registered Office: The Company has shifted its registered office to the following address 1- 7-35/42,201, III Floor SGC Suresh Arcade, Balakampet, Hyderabad 500 016. Director Responsibility Statement: As required under Section 217(2AA) of the Companies Act, 1956, the Directors responsibility statements is as given below. i) The company has followed the applicable accounting standards in preparation of the Annual Accounts and there are no material departures. ii) The company has followed consistently the accounting policies that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company as at the end of the financial year 2006-2007 and the Profit and Loss for the year ended 31st March 2007. iii) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the previous 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 prepared by the company are on a going concern basis. Auditors: The Statutory Auditors M/s. Muraliraj Associates, Charted Accountants, Hyderabad, who will retire at the ensuing Annual General Meeting, are eligible for re appointment. Fixed Deposits: The company has not invited any deposits from the public in terms of Section 58 of The Indian Companies Act, 1956, during the year. Conservation of Energy, Technology absorption, foreign exchange earnings and outgo: The information, as required under Section 21(1) (e) of the Companies Act 1956, read with the Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1998 are provided in the Annexure-1 forming part of this report. Employees: Information in accordance with the provisions of Section 217(2a) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules 1975 as amended regarding employees is given in the Annexure-II forming part of this report. Acknowledgements: Your Directors take this opportunity to place on record their sincere thanks to the Development Credit Bank Ltd. (DCBL), State Bank Of Hyderabad, shareholders, Dealers, Stockiest, Transporters and Consumers for their support and co-ol),2ration extended to the company from time to time. Your Directors also wish to place on record their appreciation for the value service rendered by the employees of the company. By Order of the Board Someswara Cements & Chemicals Ltd Place: Hyderabad Venkata Ratnam Date : 25.08.2007 Managing Director ANNEXURE-I TO THE DIRECTORS' REPORT: Information pursuant to Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosures of particulars in the report of Board of Directors) Rules, 1988. a. Conservation of Energy: Energy conservation measures taken: i) Raw mill circuit has been modified to suit powdery lime stone and reduce the power consumption. ii) Optimization of grinding media in Raw Mill. b) Additional investments and proposals for reduction of consumption of energy. 1. Modification of pre heater cyclones to preheat/ pre calcine nodules to reduce pressure drop in the system thereby saving energy. c) Total energy consumption and energy consumption per unit of production: Given in Form `A' annexed. B. Technology Absorption: Efforts made in technology absorption: Particulars given in Form 'B' annexed. C. Foreign Exchange Earnings and Outgo: 1. Activities relating to exports, initiatives: There are no exports during this financial year taken to increase export development to new export markets for products and Services and export plans. 2006-07 2005-06 Rs. in lakhs Rs. in lakhs 2. a) Total Foreign Exchange used Nil Nil b) Total Foreign Exchange earned Nil Nil FORM ' A ' From for Disclosure of particulars with respect to conservation of energy. 1. POWER AND FULL CONSUMPTION 2006-2007 2005-2006 i) Electricity Purchased: Units (in Lakhs) N A N A Total amount (Rs. in Lakhs) Rate/ Unit (in Rs) Own Generation: Through DG-Units (in lakhs) Units/Ltr of Diesel NA NA Cost/Unit (in Rs) Through Captive Power Plant Not applicable as the Total Units (in Lakhs) unit was on trials. Cost of Generation (Rs in Lakhs) Cost/ Unit (in Rs). ii) Coal Quality: Average CV (Kcal/ Kg.) Ash (%) NA NA Consumed (MT) Total Cost (Rs. in lakh) Average Rate per M.T. (Rs) 2. CONSUMPTION PER UNIT OF PRODUCTION: Production Clinker (MT) Power (KWH/MT Clinker) NA NA Coal (% of Clinker) Note: As the unit has just completed the trial production and yet to start commercial production for want of working capital. FORM ' B' (See Rule 2) form for disclosure of particulars with respect to Technology Absorption 1. RESEARCH AND DEVELOPMENT (R & D) i) Specific areas in which R&D is carried: Not Applicable ii) Benefits derived as a result of the R&D: Not Applicable iii) Future plan of action iv) Expenditure On R& D: There has been no expenditure on R&D activity. 2. TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION: i) Efforts in brief, made towards Technology: a) The company has been continually upgrading the Absorption, adoption and innovate process technology for optimization of energy Conservation. b) The Company has been continually upgrading technology of pollution control equipment. ii) Benefits derived as a result of the above efforts: a) Improvement in product quality and productivity. b) Decrease in emission levels. iii) Information regarding technology imported: The Company has not imported any technology.