| Dear Members,
The Directors take immense pleasure in presenting this 19th Annual
Report together with the Consolidated Audited Accounts of the Company
for the Financial Year 2013-14 for the period ended on 31st March 2014.
Financial Results (Rs. Million).
Particulars 2013-14 2012-13
Sales & Other Income 5062.40 9299.63
Material Consumed 4714.25 8777.28
Changes in Inventory 0.09 4.95
Employee Benefits 4.66 7.21
Finance Cost 6.65 8.44
Depreciation 9.84 16.54
Other Expenses 46.68 60.07
Profit before Taxes 282.83 425.16
Taxes-Current Tax 0.04 0.73
- Deferred Tax (1.18) (2.40)
Profit After Taxes 283.98 426.82
Earnings per Share (Basic & Dilutive) 2.15 3.23
REVIEW OF OPERATIONS
During the year under review, the Company's financial performance has
been adversely affected due to the non-availability of raw material,
increasing raw material costs and volatile foreign exchange. The
company took various initiatives to improve its profitability by
diversification which helped the Company to post a reasonable
performance for the year.
DIVIDEND
In order to augment resources for the expansion plans, your Directors
do not recommend distributing any dividend for the year ended 31st
March 2014.
CONSOLIDATED FINANCIAL STATEMENTS
In accordance with the Accounting Standard AS-21 on Consolidated
Financial Statements, the Audited Consolidated Financial Statements are
provided in the Annual Report.
SUBSIDIARY
In accordance with the general circular issued by the Ministry of
Corporate Affairs, Government of India, the Balance Sheet, Profit and
Loss Account and other documents of the Subsidiary Company is not being
attached with the Balance Sheet of the Company, However the financial
information of the subsidiary companies is disclosed in the Annual
Report in compliance with the said circular. The Company will make
available the Annual Accounts of the subsidiary company and the related
detailed information to any member of the Company who may be interested
in obtaining the same. The annual accounts of the Subsidiary Company
will also be kept open for inspection at the Registered Office of the
Company and that of the respective Subsidiary Company. The Consolidated
Financial Statements presented by the Company include the financial
results of its subsidiary Company. Details of subsidiary of the Company
are covered in Management's Discussion and Analysis Report forming part
of the Annual Report.
EXPANSION PLANS
* Exploring Mining Opportunities & Securing Raw materials and
integrating backwards into mining of Iron Ore and Chrome Ore.
* Setting up a Beneficiated & Pelletizing plant with an installed
capacity of 12,00,000 TP A in Madhya Pradesh, India for exploiting the
mining operations & maximizing profits.
INTERNAL CONTROL SYSTEM
The Company has in place an adequate and appropriate system of internal
control, commensurate with its size and nature of business to ensure
efficacy of operations and compliance with applicable legislations.
The Company has comprehensive budgetary control system. The management
regularly reviews actual performance.
SOCIAL RESPONSIBILITY AND COMMUNITY DEVELOPMENT
Corporate Social Responsibility occupies a central position in
Companies activities and is an ongoing daily affair. Our Company's
plant at Kottayi, Palakkad is a leading industrial unit in the region
and therefore the local community look towards the Company for social
support. Company continues to provide necessary support to economically
backward people of the adjoining villages through various community
development, education and healthcare programmes.
HUMAN RESOURCES AND INDUSTRIAL RELATIONS
Your Company all the time strives towards the development of its
employees, to upgrade their skills and to boost the motivation levels
of its human resource through various mechanisms. For enhancing the
team spirit of the employees departmental quality circles and other
awareness programmes being organized from time to time. We were
successful in maintaining a healthy working environment and cordial
industrial relations throughout the year. The efforts put in by the
employees at all levels are highly commendable and have contributed
immensely to the excellent performance of the company. Your Company HR
team has been continuously striving for establishing a better and
congenial relationship with Workmen, Unions and all external agencies
resulting in achieving zero man days' loss due to industrial unrest.
BOARD OF DIRECTORS
To appoint Directors in place of Mr. Vinod Bajoria (DIN: 02661406) and
Mr. Manish Kumar Mishra (DIN: 05173129) who retire by rotation at the
Annual General Meeting and being eligible have offered themselves for
re-appointment.
Mr. Madhav Rao, Mr. Dinesh Kesri & Mr. T.N. Sivakumar Independent
Director retire by rotation at the ensuing Annual General Meeting and
being eligible offers himself for reappointment.
The proposals regarding the appointment/reappointment of the aforesaid
Director are placed for your approval.
PARTICULARS UNDER SEC 217
None of the employees of the Company was in receipt of remuneration
above Rs. 2,00,000/- per month or Rs. 24,00,000/- per annum during the
year under review and as such there is no need to give a declaration
u/s 217 (2A) of the Companies Act, 1956.
CORPORATE GOVERNANCE
Corporate Governance Report as stipulated under Clause 49 of the
Listing Agreement with the Stock Exchanges in India, is presented in a
separate section forming part of this Annual Report.
A certificate from Statutory Auditors of the Company, M/s Sunil Johri &
Associates, Chartered Accountants, confirming compliance with
conditions of Corporate Governance as stipulated under the aforesaid
Clause 49, is attached to Corporate Governance Report.
DEPOSITS
The Company has not accepted any fixed deposits during the period under
review.
AUDITORS AND AUDITORS REPORT
M/s. Sunil Johri & Associates, Chartered Accountants Auditors of the
company, hold office until the conclusion of the ensuing Annual General
Meeting and are eligible for reappointment.
The Company has received letters from M/S. Sunil Johri & Associates,
Chartered Accountants, to the effect that their appointment, if would
be within the prescribed limits under Section I41(3)(g) of the
Companies Act, 2013 and that they are not disqualified for
re-appointment.
The observations and comments given by the Auditors in their Report
read together with notes to accounts are self-explanatory and hence do
not call for any further comments.
COST AUDITORS
M/s Arindam & Associates, Cost & Management Accountants, Raipur, Cost
Auditors of the Company have been appointed as the Company's Cost
Auditors for the Financial Year 2014-15.
DIRECTOR'S RESPONSIBILITY STATEMENT
In accordance with Section 217(2AA) of the Companies Act, 1956 the
Directors state that:-
i. In the preparation of the financial statements for the year ended
31st March, 2014, the applicable accounting standards have been
followed along with proper explanation relating to material departures,
if any;
ii. The Directors had selected such accounting policies and applied
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 of the Company
for the year under review;
iii. The Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act. 1956, for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities; and
iv. The Directors had prepared the financial statements for the year
ended 31st March, 2014, on a 'going concern' basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO
The particulars as required to be disclosed pursuant to Section 217 (1)
(e) of the Companies Act,1956 read with Companies (Disclosures of
Particulars in the Report of Board of Directors) Rules 1988 are given
in Annexure : A forming part of this report.
ACKNOWLEDGEMENTS
The Directors would like to express their sincere appreciation of the
co-operation received from the Central Government, Government of Kerala
and Kerala Industrial Area Development Board. The Directors also wish
to place on record its appreciation for the commitment displayed by all
employees at all levels, resulting in the successful performance of the
Company during the year.
The Directors also take this opportunity to express its deep gratitude
for the continued co-operation and support received from its valued
shareholders.
The Directors express their special thanks to Mr. Vivek Agrawal,
Chairman & Managing Director of the Company, for his untiring efforts
for the progress of the Company.
For and on behalf of the Director
Dated : 31-05-2014
Place : Palakkad Sd/-
Vivek Agrawal
Chairman & Managing Director |