DIRECTORS
FOR THE YEAR ENDED 31st MARCH, 2014
The Shareholders,
With heavy heart, we inform you that our beloved Chairman Shri Satyadeva Prakash Sinha
left for his heavenly abode on 11.4.2014. He was 72. This has created a void which is
difficult to get filled. Our homage to the departed soul.
Your Directors submit herewith their Report together with the audited accounts for the
year ended 31st March '2014
1.0 FINANCIAL RESULTS
|
(Rupees in Lacs) |
|
Year ended 31.03.2014 |
Year ended 31.03.2013 |
Total Turnover including other income |
25665.92 |
27511.19 |
1. Profit before depreciation, interest, tax and other appropriations |
(542.02) |
(957.15) |
2. Less : |
|
|
(i) Finance Costs |
1808.92 |
1582.59 |
(ii) Depreciation |
768.34 |
993.43 |
3. Net Loss |
(3119.28) |
(3533.17) |
4. Loss carried to Balance Sheet |
(3119.28) |
(3533.17) |
2.0 PRODUCTION
It was once again a bad year for the economy, the fourth in succession, pushing the
Cement Industry deeper into distress. In the face of high input cost, stagnant cement
prices and oversupplied market, the Company experienced severe financial constraints.
While this on one hand impeded smooth input supplies, on the other affected plant
maintenance resulting in tower plant availability as well as efficiencies. While Capacity
utilization n Clinker fell to 80% from 92% achieved lasti year, capacity utilization in
cement was lower at 64% from 74% last year.
3.0 FINANCIAL PERFORMANCE
Economy appeared on threshold of a major crisis. Apersistently high inflation, high
interest rates , falling consumer spending, piling up of inventories and a general decline
in corporate sales and profitability were all symptoms of an economy in distress. As per
the advance estimates released by the Central Statistics Organisation, GDP growth for
2013-14 was expected to be below 5% for the second year in succession, at 4.9%.
Manufacturing sector, which had grown at a CAGR of over 10% between 2005 till 2011 put up
its worst performance in 20 years in 2013-14, contracting by 0.20% following an equally
dismal growth of 1.1% in 2012-13. Construction sector grew by 1.1% against 1.7% last year
and Services sector by 11.2%. But for a healthy growth of 4.6% in Agricultural sector
against 1.6% last year, GDP growth would have been still more dismal.
4.0 FINANCES
The position of the cement Industry has gradually worsened over the last 3 years to the
extent that now the existence of atleast the smaller units, constantly squeezed by high
cost, uneconomic scale of operation and unremunerative prices, is under threat. On the one
hand, while the increase in Diesel and coal rates, as a part of Govt. strategy to cut back
subsidies, unleashed an inflationary spiral, substantial)/pushing up cost of power, fuel
and transportation, on the other, unabated capacity additions without significant
consumption growth, resulted n i continued supply overhang and erosion of pricing power.
In view of the extraordinary situation resulting in severe working capital constraints, it
was very difficult to maintain viable operations resulting in substantial losses. The
liabilities exposure of the Company, including those of statutory nature, went up
substantially. All these factors cumulatively resulted in lower production at 6.39 lac
tons during 2013-14, a significant 13% fall compared to the immediately preceding
financial year. This resulted in negative EBIDTA Margin and net loss as reported above.
5.0 DIVIDENDS
The Directors regret their inability to recommend any dividend in view of the present
position of the Company.
6.0 LISTING AGREEMENTS WITH STOCK EXCHANGES
The Company's Equity Shares are listed on the Calcutta Stock Exchange and BSE Ltd.
There are no arrears of Annual Listing Fees pending with the Company.
7.0 AUDITORS' REPORT
The adverse remarks / qualifications contained in the Auditors' Report have been
appropriately explained in a statement "Auditor's Remarks and Management's
Replies" placed at ANNEXURE- 1 hereto.
8.0 DIRECTORS' RESPONSIBILITY STATEMENT
In terms of Section 217 ( 2AA ) of the Companies Act,1956 , your Directors have -
i. followed the applicable accounting standards in preparation of the Annual Accounts
for the year ended 31.03.14.
ii. selected the accounting policies and applied them consistently and made judgements
and estimates which 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 loss of the
Company for that period.
iii. taken proper and sufficient care for the maintenance of adequate accounting
records in accordance with the provisions of the Companies Act for safeguarding the assets
of the Company and for preventing and detecting fraud and other irregularities.
iv. prepared the Accounts on a going concern basis.
9.0 CORPORATE GOVERNANCE
In terms of Clause 49 of the listing Agreement, the Company is required to comply with
the Corporate Governance Code. The Corporate Governance code has already been implemented
by the Company and a separate section thereon is included in the Directors' Report as
ANNEXURE- 2
10.0 DIRECTORS
Under Articles 108 & 109 of the Articles of Association of the Company, Mr.
Mahendra Lodha retires by rotation in this Annual General Meeting and being eligible
offers himself for reappointment.
11.0 AUDITORS
The Auditors M/s M. Mukerjee & Co., Chartered Accountants retire in terms of their
appointment and being eligible offer themselves for re-appointment .
12.0 ENERGY,TECHNOLOGY & FOREIGN EXCHANGE
Statement giving the particulars relating to conservation of energy, technology
absorption and foreign exchange earnings and outgo as required under the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 is annexed as
ANNEXURE-3 .
13.0 PARTICULARS REGARDING EMPLOYEES
The particulars regarding an employee of the Company who was in receipt of remuneration
stipulated under Section 217 (2A) of the Companies Act, 1956 read with the companies
(Particulars of Employees) Rules, 1975 have been provided in para 7 (v)(f) of Annexure-2
of the Directors' Report.
14.0 MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis has been appended to the Report, in terms of the
Listing Agreement, as ANNEXURE-4.
15.0 APPRECIATION
The Directors wish to put on record their appreciation for the support and contribution
made by the Employees of the Company towards the operation.
The Directors also wish to place on record their thanks and appreciation for the help
and support given by State Govt. and Central Govt. in carrying out its operations.
|
On behalf of the Board |
|
(Shailendra Prakash Sinha) |
|
Managing Director |
|
(Dr. K.C. Varshney) |
|
Director |
|
(B.C. Srivastava) |
|
Director |
Patna |
|
Dated: 23rd May, 2014 |
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