SOMESWARA CEMENTS AND CHEMICALS LIMITED
ANNUAL REPORT 2006-2007
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.
The financial results of the company for the year ended 31st March 2007 as
compared to the previous year are as given below.
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)
Profit before Tax 4,77,473 (19,48,783)
Provision Tax Current
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)
Transferred to General Reserve
Profit carried forward to
You will be happy to note that your company has completed the refurbishment
of the plant and has been successful in taking trial production.
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
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.
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.
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
The Statutory Auditors M/s. Muraliraj Associates, Charted Accountants,
Hyderabad, who will retire at the ensuing Annual General Meeting, are
eligible for re appointment.
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
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.
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.
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
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
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'
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
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
Units (in Lakhs) N A N A
Total amount (Rs. in Lakhs)
Rate/ Unit (in Rs)
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).
Average CV (Kcal/ Kg.)
Ash (%) NA NA
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
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.