The Directors have pleasure in presenting the 20th Annual Report of theCompany, together with the Audited Accounts, for the year ended 31st March,2013.
1. Financial Results
(Rs. in Crores)
| ||2012-2013 ||2011-2012 |
|Sales & Other Income (net) ||89.02 ||96.56 |
|Profit/ (Loss) before Interest & Depreciation ||05.00 ||9.48 |
|Less: Interest & Other Financial Charges ||3.69 ||9.56 |
|Less: Depreciation ||2.83 ||3.15 |
|Profit/ (Loss) before tax and exceptional items ||(1.52) ||(3.23) |
|Add / (Less): Exceptional items ||- ||- |
|Profit/ (Loss) before tax and after exceptional items ||(1.52) ||(3.23) |
|Less: Provision for Taxation ||- ||- |
|Less/ (Add): Deferred Tax ||(0.64) ||1.07 |
|Net Profit / (Loss) after Tax ||(0.88) ||(2.17) |
|Balance as per last year ||4.25 ||6.42 |
|Balance Carried Forward ||3.37 ||4.25 |
In spite of global slowdown, the company has with its constant endeavor; successfullymanage to reduce its costs as compare to previous year.
The Company implemented various latest technologies in the manufacturing process tocontrol the Cost of Production and also planned to reduce the cost through increasedautomation and elimination of intermediary process by implementation of the latesttechnology of "Online Charging of Billets".
With commencement of above initiatives company making itself more competitive andstrong in the market and thereby steadily towards earning profits in upcoming years.
3. Future Prospects
The Company has set a clear two pronged goal for its future business: Cost Reduction& Diversification. Work towards each of these goals has been initiated at full-swingand initial measures to this effect are already in place.
Now, that the rehabilitation cum enhancement proposal of the Company has been passed bythe Bank, and the Company's steel division has restarted production with much pomp andsplendor, the focus has been shifted to reduction of cost vide optimum utilization oftechnology and infrastructure of the Company. Accordingly, the system of 'Online Chargingof Billet' has been isolated for immediate implementation by the Company. The projecteddate for commencement of this technology, which will result in added margins of 2-2.5% tothe Company's bottom-line, is, 30th September, 2013. The Company plans onfurther reducing costs via increased production through planned strategic tie-ups andbrand building of the product.
Furthermore, the Gangotri group of Companies has embarked on its diversificationintentions through its latest venture Gangotri Infocom Pvt. Ltd. Gangotri Infocom hasplanned and already proceeded with tying up with various Governmental departments forproviding software based solutions for their existing challenges. The first project of theCompany is already in process and is expected to be launched in 3rd quarter ofFY 13-14.
The Company also plans on expanding its existing Iron & Steel manufacturingbusiness by setting up additional furnace(s) and the recent technology of Ladle Refining.
4. Management Discussion and Analysis
Business Segment-wise Performance
The company's operation comprises of M.S. Bar and M.S. Billet that falls under onesegment. Hence, Segment wise operational performance is not applicable.
The world as well as national economy is passing through recession. However, averageGDP growth rate of Bihar has been magnificent i.e. 10 percent as above approx which isproviding positive hope for the Company. The Company is taking all necessary steps to reapthe benefits of the fast growth of the State.
Risks and Concerns
Due to global slowdown and fierce competition in the steel industry there is pressureon maintain once of the profitability of the Company. Bihar is one of the fastest growingstate in the area of Infrastructural development which is bound to increase the demand ofsteel in the state. Taking in view the various infrastructural projects taken up byGovernment of Bihar, the Company is prepared to fulfil all the necessities of the growingdemand of steel. Thus, increasing market share and participating in the industrialdevelopment of the state.
Internal Control Systems and their Adequacy
There exists an internal audit system during the year under review, which needs to bestrengthened for being commensurate with the size and nature of business.
Human Resource Development / Industrial Relations
The Company has been taking various initiatives for HR development, a process that willcontinue in the coming years. Your Company organizes Architects and Masons meets on aregular basis in various areas where it markets its products. These meets are very wellattended and have resulted in better demand for its products apart from popularizing itsbrand image.
The Company has also made arrangement with Shri Ravi Kishan, a very popular movie andTV personality to act as its brand ambassador.
As the Company incurred loss during the year hence no dividend payment was considered.
During the year, the Company continued to avail credit facilities by way of overdrafts,cash credits, issuance of guarantees, including deferred payment guarantees andindemnities, negotiation and discounting of demand and/or usance bills and cheques andsuch other facilities from State Bank of India, Commercial Branch, Patliputra, Patna andother private bodies for the existing and Bihta unit.
In accordance with the provisions of the Companies Act, 1956 and the Articles ofAssociation of the Company, Mr. Debabrata Benerjee and Mr. Narendra Jaiswal are retiringby rotation and being eligible offers themselves for re-appointment.
8. Directors' Responsibility Statement
In compliance with section 217(2AA) of the Companies Act 1956, the Directors confirmthat
a) in preparation of the Annual Accounts, for the year ended 31st March2013, all the applicable accounting standards prescribed by the ICAI have been followed.
b) the Directors have adopted such accounting policies and have applied themconsistently and have made judgments and estimates in a reasonable and prudent manner soas to give a true and fair view of the state of affairs of the Company as at the end ofthe financial year and of the profit/loss of the Company for the year.
c) the Directors have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act, 1956 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities.
d) the Directors have prepared the annual accounts on a going concern basis.
M/s. ARSK & Associates, Chartered Accountants, Auditors of the Company are retiringat the conclusion of the ensuing Annual General Meeting and being eligible offerthemselves for re-appointment. The Company has received a certificate to the effect thattheir re-appointment if made will be within the prescribed limit u/s.224 (1-B) of theCompanies Act, 1956.
10. Depository System
As the members are aware, your Company's shares are tradable compulsorily in electronicform and your Company has connectivity with both the depositories, i.e. NationalSecurities Depository Limited (NSDL) & Central Depository Services (India) Limited(CDSL). Members are requested to avail the facility of dematerialisation of the Company'sshares on either of the Depositories as aforesaid, if not already done.
11. Public Deposit
The company has not invited /accepted any deposits from the public and as such thereare no outstanding deposits, in terms of the Companies (Acceptance of Deposits) Rules,1975.
There is no employee in respect of whom particulars pursuant to Section 217(2 A) of theCompanies Act, 1956 are required to be given.
13. Conservation of Energy
The information relating to conservation of energy as required U/s. 217(l)(e) of theCompanies Act, 1956 read with the Companies (Disclosure of Particulars in the Report ofBoard of Directors) Rules, 1988 is given in the Annexure-A to this Report. The Company hasno figure to disclose in respect of technology absorption and /or foreign exchangeearnings and outgo.
14. Social Welfare Activities
The Company organises mason's meet from time to time at various centres.
15. Corporate Governance
Separate Report on Corporate Governance is annexed and marked "Annexure - B".The Auditors' Certificate on compliance with the conditions of Corporate Governance isannexed and marked "Annexure C".
Your Directors wish to place their sincere appreciation to the co-operation extended bythe Bank, State Government, Electricity Board, Customers, Suppliers and Shareholders andsolicit their continued support. The Directors also wish to place on record the dedicatedservice rendered by the Management, Staffs and Workers.
| || |
For and on behalf of the Board
|Place: Patna ||Sanjiv Kumar Choudhary ||Ankit Choudhary |
|Date: 4th September, 2013 ||Chairman cum Managing Director ||Director |
"Annexure-A" to the Directors' Report
Information in accordance with the Companies (Disclosure of Particulars in theReport of the Board of Directors) Rules, 1988
|A) Power & Fuel Consumption ||2012-13 ||2011-12 |
|1. Electricity || || |
|a) Purchased Unit (KWH) ||01,09, 02,260 ||38, 62,000 |
|b) Total Amount (Rs.) ||06,26,42,413 ||6,58,91,822 |
|c) Rate/Unit (Rs.) ||05.75 ||17.06 |
|2. Coal || || |
|a)Qty(Kg.) ||85,560 ||4, 28,170 |
|b) Total Amount (Rs.) ||7, 05,553 ||21,22,649 |
|c) Average Rate (Rs.) ||8.25 ||4.96 |
|B) Consumption per unit of Production Product || || |
|a) Units (M.T.) - M.S. Bars ||9,977.89 ||6941.68 |
|M.S. Billet ||9019.31 ||2066.10 |
|b) Electricity (KWH) ||04.51 ||61.68 |