The Directors have great pleasure in presenting the Twenty Fifth
Annual Report on the performance of your Company for the financial year
ended 31st March, 2009 along with Audited Statements of Accounts. Your
directors are also pleased to inform you that the Company has
successfully completed 25 years and is celebrating its Silver Jubilee
this year.
INDUSTRY SCENE
Indian Steel Industry has been posting a healthy growth for last five
years. However, the Company has not been encashing on the market
opportunities due its sick status. As you know your Company is under
BIFR and because of the financial crunch, the Company is not achieving
set targets. The turnover of the Company witnessed a decline by 20.83%
as compared to the previous year.
FINANCIAL RESULTS
The Sales for the year under review amount to Rs. 4013 Lacs as compared
to Rs.5044 lacs for the previous year. The Company has incurred a loss
of Rs. 14361 lacs after tax during the year under review as compared to
a loss of Rs. 11557 Lacs for the previous year. Interest on the Working
Capital and Term Loan has been provided on accrual basis even though
the loan funds have eroded over a period. Therefore, huge loss is
accumulated every year. The accumulated loss up to the year ended
31.03.2009 is Rs. 80292 lacs as compared to Rs. 65931 lacs for the
previous year.
The summarised financial results of the company are as under:
Current year Previous year
Rs. In Lacs Rs. In Lacs
2008-09 2007-08
Total Income 4013 5044
Gross profit /(Loss) 281 1040
Less : Indirect Expenses 950 847
Less: Financial charges 12686 11028
Profit/(Loss) before Depreciation
and Income Tax (13355) (10835)
Less: Depreciation 713 710
Net Profit /(Loss) before Tax (14068) (11545)
Prior period items (net) 284 7
Less: Fringe Benefit Tax 9 5
Less: Income Tax for the year 0 0
Net Profit/(Loss) after tax (14361) (11557)
Add: Balance from the
Previous year (65931) (54374)
Balance carried to balance sheet (80292) (65931)
DIVIDEND
In view of the loss incurred by the Company during the year under
review, your Directors have not recommended any dividend to the
shareholders.
ISP PROJECT
The Company is continuing its full efforts to obtain foreign investment
from overseas investors and domestic investors towards additional
equity/debt, so that the Blast Furnace Complex could be completed in
the first phase. The Directors are hopeful of an early solution and
implementation of the Integrated Steel Plant project which has been
delayed due to financial crunch.
BIFR
Your Company has become a Sick Industrial Company within the meaning of
clause (O) of section 3 of SICA, 1985 on 07.12.2006 With BIFR, New
Delhi. IDBI has been appointed as Operating Agency (OA) by BIFR.
DIRECTORS
Shri S. Madhav, Director of your Company retires by rotation at the
ensuing Annual General Meeting and is eligible for reappointment.
Mr. C.N.B. Nair was appointed as Special Director of BIFR w.e.f.
20.08.2008 by the Honble BIFR, New Delhi and resigned from the Board
w.e.f. 30.04.2009. The Board of Directors wishes to place on record the
appreciation for the service rendered by him during his tenure.
AUDITORS
M/s .Manohar Chowdhry & Associates, Chartered Accountants, Bangalore,
Auditors of the Company retire at the conclusion of this Annual General
Meeting and are eligible for reappointment. As required under section
224(1 -B) of the Companies Act, 1956, the present auditors have
furnished the necessary certificate.
FIXED DEPOSITS
Your Company has not accepted any deposits from the public during the
period under review.
CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO.
Conservation of energy and Technology absorption:
The information required to be furnished under section 217 (1) (e) of
the Companies Act, 1956 read with the Companies (Disclosure of
particulars in the report of the Board of Directors) Rules, 1968, is
given in Annexure-I forming part of this report.
Foreign Exchange Earnings and Outgo:
The foreign exchange earnings and outgo during the period are as under:
Amount
(Rs. In Lacs)
Earnings: - Nil -
Outgo:
1. Imports (CIF Value) NIL
2. Foreign Travel expenses 120.77
3. Consultancy NIL
PARTICULARS OF EMPLOYEES
There are no employees drawing remuneration beyond the stipulated limit
in accordance with section 217 (2A) of the Companies Act, 1956 read
with Companies (Particulars of Employees) Rules 1975 as amended up to
date.
INFORMATION UNDER THE LISTING AGREEMENT
The statement containing details as required under Clause 49 of the
Listing Agreement with the Stock Exchanges is appended hereto in
Annexure -11 and forms part of this report.
CORPORATE GOVERNANCE
The Company has implemented the Code of Corporate Governance as
required by the Listing Agreement introduced by Securities & Exchange
Board of India.
The report of Directors on the particulars prevalent on Corporate
Governance has been annexed as Annexure - III as 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, applicable
accounting standards have been followed;
(ii) That your Directors have selected such accounting policies and
applied them consistently and made judgements 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 the period;
(iii) That your Directors have taken proper and sufficient care 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 detecting fraud and other irregularities;
(iv) That your Directors have prepared the annual accounts as a going
concern basis.
HUMAN RESOURCE
Your company attaches considerable importance to Human Resource
Development (HRD) and harmonious industrial relations. The management
is continuously working on the development of human capital, vital in
an ever changing business environment towards achieving the goals and
realizing the Vision of the Company. Number of Employees on the rolls
of the Company as on 31.03.2009 is 224.
ACKNOWLEDGEMENT
The Board expresses its grateful appreciation of the assistance and
co-operation received from Financial Institutions and Banks, State, and
Central Governments and other Statutory Bodies, customers, suppliers,
share holders. Your Directors are grateful for the support extended by
them and look forward to receiving their continued support and
encouragement. Lastly, your Directors place on record their
appreciation for the dedicated efforts put in by the employees during
the year under review.
for and on behalf of the Board of Directors
Bangalore S.MADHAV S.PARVATHI
31 st August, 2009 Managing Director Director |