| Dear Shareholders,
The Directors have pleasure in presenting their 23rd Annual report of
the Company together with its Audited statement of profit & loss for
the year ended 31st March 2014 and balance sheet as on date.
FINANCIAL PERFORMANCE
(Rupees in lacs)
Particulars Year Ending Year Ending
2013-14 2012-13
Total Income INCLUDING other income 7.60 50.77
Expenditure 141.58 249.06
Interest & Financial Charges 23.52 27.10
Depreciation 42.86 60.34
Net Profit/(loss) (133.99) (198.30)
Provision For Income Tax Nil Nil
Profit Carried to Balance Sheet (133.99) (198.30)
DIVIDEND
On account of the loss after tax reported by the Company during the
current year, resultant of the recognition of the other than temporary,
diminution in the value of some of the investment the Board of
Directors of the Company do not recommend any dividend for the year
2013/14. '
OPERATION AND FINANCIAL PERFORMANCE.
During the financial year 2013-14 the Company achieved sales of Rs.3.53
Lacs as against sales of Rs. 45.70 lacs during the previous year.
Decrease in capacity utilization has resulted to poor performance.
Operations of two quarries remained under suspension due to legal
problem created by the Forest Department, Ganjam District, Orissa. The
Management has taken up the matter with the appropriate forums for
redressal and made fresh application for new quarries to meet the
requirement of Raw materials of the Company. Besides the company was
unable to arrange required working capital finance to run the company
smoothly. Efforts are expected to be taken in this regard to improve
the performance of the company in forthcoming year.
CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION & ANALYSIS REPORT
As required by clause 49 of the Listing agreement with the Stock
Exchanges, the report on Management Discussion & Analysis, Corporate
Governance Report as well as the practicing Company Secretaries
Certificate regarding compliance of conditions of Corporate Governance
appears in the Annexure-1 and Annexure-2 respectively to the Directors
report and its form part of the Annual Report..
FIXED DEPOSIT.
The company has not accepted or renewed any deposits within the meaning
of Section 58 A of the Companies Act 1956 and the Rules made there
under.
STATUS OF LISTING IN STOCK EXCHANGE
Your company's shares are listed in Stock Exchange (s) at Mumbai,
Bhubaneswar; Kolkata & Ahmedabad
Annual Listing fees are due to the Stock Exchange(s). The company
proposes to regularize the dues of stock exchanges.
DIRECTORS
In accordance with the Companies Act, 2013, and the Articles of
Association of the Company, one of our Director Mr. Giridhar Bhavaraju
retires by rotation ,and is eligible for re-appointment, and Mr.
Hrushikesh Panda and Mr. R.N Swain as an Independent Director hold
office upto the date of the forthcoming Annual General Meeting.
As per the provision of Section 149 and other applicable provisions, if
any of the Companies Act, 2013 Mr. H.k Panda & R. N Swain are proposed
to be appointed as Independent Director of the Company for a period of
five years.
Your approval for their appointments as Director has been sought in the
Notice convening the Annual General Meeting of the Company.
DIRECTORS' RESPONSIBILITY STATEMENT
In pursuance to the provisions of Section 217 (2AA) of the Companies
Act, 1956, the Directors hereby declare that:
(i) in the preparation of the Annual Accounts for the financial year
2013-14, the applicable Accounting Standards have been followed along
with proper explanation relating to material departures;
(ii) the Directors have selected such accounting policies and applies
them consistently and 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 31st March, 2014 and of the profit and loss of the
Company for the year ended on that date.
(iii) the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act, for safe guarding the assets of the company and
for preventing and detecting fraud and other irregularities; to the
best of its knowledge and its ability. There are however , inherent
limitations, which should be recognized while relying on any system of
internal control and records; and
(iv) the Directors have prepared the enclosed Annual Accounts on a
going concern basis.
(v) the Directors have laid down internal financial controls to be
followed by the company and that such internal financial controls are
adequate and operating effectively
(vi) the Directors have devised proper systems to ensure compliance
with the provisions of all applicable laws and that such systems are
adequate and operating effectively
AUDIT OBSEVATIONS
Auditor's observations are suitably explained in the notes to the
accounts and are self-explanatory.
AUDITORS
The Auditors, Mr. Samantaray & Co., Chartered Accoutants, Cuttack
retired at the ensuing Annual Genera Meeting, and being eligible, offer
themselves for re-appointment. -
AUDITORS REPORT
The Auditors in their report have referred to the notes forming part of
the Accounts, which are self explanatory and do not require further
elucidation.
CERTIFICATE ON CORPORATE GOVERNANCE AND SHAREHOLDERS INFORMATION
A Company has taken adequate steps to adhere to all the stipulations
laid down in clause 49 of the Listing agreement . A report on corporate
governance is include as part of this Annual Report. Annexure-ll.
Certificate from the Statutory Auditors Mr. Samantaray & Co. , Chatered
Accountant confirming the compliance with the condition of Corporate
Governance as stipulated under Clause 49 of the Listing Agreement is
attached to this report.
HUMAN RESOURCES
There are no employees as on date on the rolls of the company who are
in receipt of Remuneration which requires disclosures under section
217(2A) of the Companies Act, 1956. -
During the year under review, relationship with employees is cordial.
CORPORATE SOCIAL RESPONSIBILITY
In pursuant to the provisions of section 135 and schedule VII of the
Companies Act, 2013 CSR committee of the Board of Directors was formed
to recommend (a) the policy on Corporate Social Responsibility and (b)
implementation of CSR project or programmes to be undertaken by the
Company as per CSR policy for consideration and approval by the Board
of Directors.
PARTICULARS OF EMPLOYEES
No employees are coming within the purview provision under Section 217
(2A) of the Companies Act, 1956 read with the Companies (Particulars of
employees) Rule 1975.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE.
Information pertaining to Section 217 (1) (e) of the Companies Act 1956
read with the Companies (Disclosure of Particulars in the Report of
Board of Directors) Rules 1988 is given as under:
A. Conservation of Energy, Company is making all round efforts for the
Conservation of Energy per unit production.
B. Technology Absorption: The Company has adopted indigenous
Technology.
C. Foreign Exchange earnings and Outgo during the financial year
2013-2014;
i. Total Foreign Exchange earned Nil
ii. Total Foreign exchange outgo
1. Import of Consumables Nil
2. Foreign Travels Nil
3. Sales Commission Nil
ACKNOWLEDGEMENTS
Your Directors place on record their appreciation of the continued
assistance and cooperation extended to the Company by the Govt, of
Odisha, the IFCI Ltd, the State Bank Of India, shareholders, the
dedicated employees and all other who are continuing to assist your
Company.
For and on behalf of the Board of Director
Bhubaneswar
Date : 04.09.2014
Hitendra K. Mohanty
Chairman- cum Managing Director
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