| THE MEMBERS
The Directors have pleasure in presenting the 46th Annual Report of
the Company together with the Audited Profit & Loss Account for the
year ended on 31.03.2014 and the Balance Sheet as on that date.
FINANCIAL RESULTS
(Rs. in lacs)
Year ending Year ending
31.03.2014 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
OPERATIONAL REVIEW
During the year Turnover for the financial year under review is Rs.
30482 Lacs against Rs. 16026 Lacs in the previous year hence an
increase in turnover by 90.20% and Profit after tax for the year is Rs.
491 Lacs as against Rs. 32 Lacs for the previous year, the Company has
sold the Vacant Land bearing Khasra No.115, 42/48, 43, 44, 45, 45/48
admeasuring 47,044.61 Sq. Mtr. situated at Kanakpura, P.O. Meenawala,
Jaipur and the non-operating profit on account of the above sale Rs.
2317 Lacs is included, further the Company has changed the depreciation
method for Unit-ll (TMT Rebar Project) from last year and has adopted
Written Down Method from financial year 2013-14 instead of Straight
Line Method adopted till 2013. Depreciation is provided at WDVat the
rates specified in Schedule XIV and provisions made therein of
Companies Act, 1986 (as amended), on the Original Cost.
For Unit-I (Flat Rolled Products Division) the Company has identified
certain Plant & Machineries as "Continuous Process Plant" during
financial year 2006-07 and depreciation on the same is being provided
for at the rated specified under schedule XIV of the Companies Act,
1956 (as amended) for continuous process plant till 2013. During the
financial year 2013-14, the Company has changes its method from
Continuous Process Plant to "Triple Shift Plant".
FINANCIAL CONDITION AND RESULTS OF OPERATION
Management discussion and analysis of Financial Condition and Results
of operation of the company for the year under review, as stipulated in
clause 49 of the listing agreement with 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, 1382, 1383, 1384, 1385, 1392,1393,1394/2,1395/2 admeasuring
3.48 Hectare at Village Sepatpura, Patwar Halka Dhawli, Tehsil
Shahpura, Dist. Jaipur for shifting its existing operations of Unit-I
(Flat Rolled Products Division) and the land was industrial converted
by the competent authority and foundation and civil work is going on at
the site.
DIVIDENDS
To consolidate the long-term resources for enhanced working capital and
to maintain the growth in productivity, profitability and turnover, the
Directors of your Company are constrained 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 in Annexure-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 required under section 217 (2A) of the Companies Act 1956
read with the companies (Particulars of Employees) Rules 1975 as
amended, the same is not furnished.
FINANCE
The Company has enjoying the Financial Assistance for Unit-I (Flat
Rolled Products Division) from Consortium in which Allahabad Bank is
Lead Banker and Other Consortium Members are Bank of Maharashtra, State
Bank of Bikaner & Jaipur and Indian Overseas Bank and the consortium
bankers are taking care of the all financial requirements of the
Company. For Unit-ll (TMT Rebar Division) the Company has repaid the
Whole Outstanding Term Loan of RIICO for Rs. 18.98 Crores out of the
Sale Proceeds received from the sale of the vacant land bearing Khasra
No.115, 42/48, 43, 44, 45, 45/48 admeasuring 47,044.61 Sq. Mtr.
situated at Kanakpura, P.O. Meenawala, Jaipur and the financial
assistance for Unit-ll (TMT Rebar Division) is from Indian Overseas
Bank.
LISTING COMPLIANCES
Your Directors are pleased to inform you that during the year under
review all compliances related to listing with the recognized stock
exchange within India have been duly complied.
DIRECTORS
During the year under review, Mr. Vipin Behari Lai Mathur retire by
rotation at the ensuing Annual General Meeting, and being eligible,
offers himself for re-appointment. According to the provisions of the
new Companies Act, 2013 independent directors shall hold office for a
term up to five consecutive years and shall be eligible for
re-appointment on passing of special resolution by the shareholders of
the Company. The Independent Directors of the Company were appointed as
directors liable to retire by rotation under the provisions of the
erstwhile Companies Act, 1956. The said directors will continue to
serve their existing term as per the resolution pursuant to which they
were appointed. In view of this, Mr. Vipin Behari Lai Mathur,
Independent Director will complete his present term at the ensuing
Annual General Meeting, and being eligible and seeking re-appointment,
be considered by the shareholders for his re-appointment for a term up
to five consecutive years. The company has received notice from the
Members for his re-appointment as director of the Company.
AUDITORS
M/s. Bansal R. Kumar & Associates, Chartered Accountants, Jaipur,
Auditors of the Company 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-appointment and they are not
disqualified for re-appointment.
AUDITORS REPORT
The observations made in the Auditors Report are self explanatory from
the notes on accounts 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 the Company has been obtained regarding compliance of
conditions of Corporate Governance as stipulated under clause 49 of the
Listing Agreement with the Stock Exchange, form part of the Annual
Report.
DIRECTORS RESPONSIBILITY STATEMENT
In accordance with the provisions of section 217(2AA) of the Companies
Act. 1956, your Directors State:
i. that in the preparation of the annual accounts for the year ended 31
st March 2014, the applicable accounting standards and Revised Schedule
VI has been followed;
ii. that appropriate accounting policies have been selected and applied
them consistently and made judgment and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the Financial year 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 adequate accounting records in accordance with the provisions of
this Act for safeguarding the assets 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.
ACKNOWLEDGEMENT
Your Directors plae on record their appreciation and express their
sincere thanks to the concerned Government Authorities, Financial
Institutions, Banks and Shareholders for their help, co-operation and
support to the company. Your directors sincerely appreciate the
commitment and dedication of employees at all levels and look forward
for their continued support in the future as well.
For and on behalf of the Board of Directors
Sd/-
(Sudhir Khaitan)
Chairman & Managing Director | 