| The Directors have pleasure in presenting the 36th Annual Report of
the Company with the Audited Annual Accounts of the Company for the
financial year ended on 31st March. 2007.
1. FINANCIAL RESULTS:
The salient features of the Companys financial results during the year
are as under:
In Rupees
PARTICULARS 2006-07 2005-06
Sales and Other Income 3800,847,329 3372,476,332
Expenditure 3706,903,998 3294,462,801
Profit before Depreciation & Tax 93,943,331 78,013,531
Less: Depreciation 36,071,535 33,376,125
Profit after Depreciation 57,871,796 44,637,406
Add: Amount withdrawn from General Reserve 9,420,677 9,420,677
Profit before Tax 67,292,473 54,058,083
Less: Provision for current tax 6,000,000 3,500,000
Deferred tax 460,667 5,833,544
Provision for Fringe Benefit Tax 315,876 255,000
Net Profit for the year 60,515,930 44,469,538
Less: Prior Year Adjustments 535,262 0
Add: Balance Brought Forward 62,281,697 47,812,158
PROFIT AVAILABLE FOR -- --
APPROPRIATION 122,262,365 92,281,697
APPROPRIATION
Proposed Dividend 9,381,740 0
Tax on Dividend 1,594,427 0
Transfer to General Reserve 30,000,000 30,000,000
Surplus Carried to Balance Sheet 81,286,198 62,281,697
122,262,365 92,281,697
2. DIVIDEND
The Board of Directors are pleased to recommend a dividend @ 8%
(previous year: Nil) on the paid up capital for the year ended 31st
March , 2007, subject to deduction of tax . The total outgo on this
account will be Rs. 109.76 lacs including dividend tax.
3. PERFORMANCE
The Company during the year under review has registered a gross
Turnover of Rs. 37947.23 lacs in comparison to previous years turnover
of Rs. 33707.56 lacs, a growth of 12.58%. The Net Profit (aftertax)
during the year has increased to Rs. 605.16 lac showing 36.08% rise
over the previous year Rs. 444.70 lacs. The main reason for excellent
performance during the year is attributed to the overall booming like
conditions prevailing in general and steel industry in particular.
The prospects of the industry is very bright in coming years. The
Company is having huge orders ,both domestic as well as export, in hand
of its different products and the Company is very much confident to
strengthn its position in domestic as well as international market
during the financial year 2007-08.
4. FIXED DEPOSITS
The Company did not invite any deposits from the public in the year
within the meaning of Section 58A of the Companies Act, 1956 and the
Rules framed there under during the year.
5.CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO.
Information pursuant to Section 217(2e) of the Companies Act, 1956 read
with the Companies (Disclosure of particulars in the Report of Board of
Director) Rules 1988, is annexed and forms part of this report.
6. PARTICULARS OF EMPLOYEES
None of the Employee is covered under the provisions of Section 217(2A)
of the Companies Act, 1956, thus information in terms of Section 217(2
A) of the Companies Act, 1956 read with the Companies particulars of
Employees Rules. 1975 is not required.
7. DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Shri Jay Prakash Mathur and
Shri Nirmal Kumar Sharma Directors retire by rotation at the ensuing
Annual General Meeting of the Company and being eligible offer
themselves for reappointment. They are appointed as non-executive
independent directors of the Company.
Shri Dilip Kumar Sinha was appointed as Additional Director in the
meeting of Board of Directors held on 31st July, 2007. The said
Director holds office up to the date of the Annual General Meeting. In
accordance with the requirements under Section 257 of the Companies
Act, 1956, notice is received proposing the candidature of the said
Director for appointment as Director liable to retire by rotation.
8. AUDITORS
M/s S. S. Solanki & Co. Chartered Accountants, Auditors of the Company
hold office until the conclusion of the forthcoming Annual General
Meeting and being eligible, offered themselves for reappointment. The
Company has received a certificate from them to the effect that their
reappointment, if made shall be within the limits prescribed under
Section 224(1B) of the Companies Act, 1956.
9. AUDIT COMMITTEE
The Audit Committee set up by the Board comprises of Shri Jai Prakash
Mathur, Shri Nirmal Kumar Sharma and Shri Shararig Soni as its members.
Shri Jai Prakash Mathur is its Chairman and the terms, role, powers and
authority of the Audit Committee are in conformity with the provisions
of the Companies Act, 1956 and the
Listing Agreement.
10. DIRECTORS RESPONSIBILITY STATEMENT
As required under Section 217(2A A) of the Companies Act, 1956, the
Directors here by connrm that:.
1. In the preparation of the Annual Accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures.
2. The Directors have 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 affair
.of,the Company at the end of the
financial year and of the profit of the company for that period.
3. The 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 the Company and
for preventing and detecting fraud and other irregularities.
4. The Directors have prepared the Annual Accounts on a Going Concern
basis.
11. CORPORATE GOVERNANCE
The Company has complied with the Corporate Governance requirements as
stipulated under Clause 49 of the Listing Agreement. Report on
Corporate Governance is annexed as Annexure and forming a part of this
Annual Report.
12. AUDITORS REMARKS
Observations made by the Auditors read along-with the notes on accounts
are self- Explanatory.
13. ACKNOWLEDGEMENT
The Board expresses its sincere gratitude to the Shareholders, Bankers
and Clients for their continued support. The Board also thanks the
dedicated efforts of all the staff and employees of the Company.
FOR AND ON BEHALF OF THE BOARD
Place: Indore
Date: 31.08.2007 CHAIRMAN |