Your Directors have pleasure in presenting the Twenty Eighth Annual Report togetherwith the accounts of your Company for the year ended March 31, 2013.
(Rupees in Lacs)
|Particulars ||2012-2013 ||2011-2012 |
|Revenue ||35885.07 ||63931.01 |
|Profit/(Loss)before Interest, Depreciation and Tax ||(1716.38) ||4314.09 |
|Interest & Finance Charges ||1935.96 ||2330.41 |
|Depreciation ||1622.38 ||1499.63 |
|Provision for Tax ||99.61 ||200.16 |
|Deferred Tax ||(1395.40) ||82.18 |
|Net Profit/(Loss) for the year ||(3978.92) ||201.71 |
|Accumulated Profit / (Loss) Brought forward From Balance Sheet ||1621.50 ||1419.79 |
|Total Distributable profit / (Loss) ||(2357.42) ||1621.50 |
|Dividend ||Nil ||Nil |
|Dividend Tax ||Nil ||Nil |
|Profit/(Loss) Carried over to the Balance Sheet ||(2357.42) ||1621.50 |
During the year, your company has not dealt with the much of trading transactions andit is one of the reasons for achieving lesser turnover when compared to last year.
The Company has redesigned its coke oven batteries at Haldia, West Bengal inorder to enhance the production capacity of the battery and also for cost reduction and inview of that the production was halted till August 2012. The company has absorbed fixedoverhead costs during non-operational period which is one of the reason for loss arisesduring the year.
Further during the non-operational period the Company has liquidated the stocksavailable in the Inventory with lesser margin which has resulted in the reduction in theinventory margin on the closing stocks which has resulted in the operational loss duringthe year under review.
However your Company had taken all steps to enhance the foundry coke sale in thewestern region for getting more margin and neutralise the effect during the year underreview.
OPERATIONS & FUTURE PROSPECTS
As stated in the earlier, the Company had redesigned the Coke Oven Batteries andresumed the Coke operations from August 2012. The power production also started fromDecember 2012.
Coke Production out of the newly re-designed coke oven batteries are being traded/soldto our major clients
like Steel Authority of India Limited (SAIL), TATA
Metaliks and other Integrated Steel plants. The company is also expected to get moreorders from the Major Steel plants in India.
Your company is constantly pursuing the goal of reaching half a million tonnes ofproduction and is hopeful of achieving a good part of the same during the later part ofthe financial year 2013-14
Your company is also planning to commence exports to Pakistan and South Africa.
Your Company's Equity Shares are available in dematerialised form through NationalSecurities Depository Limited (NSDL) and Central Depository Services (India) Ltd. (CDSL).As at 31st March 2013, 99.91% of the Equity Shares of the Company were held indemat form.
MANAGEMENT DISCUSSION AND ANALYSIS
A detailed review of the operations, performance and outlook of the company and itsbusiness is given in the Management Discussion and Analysis report, which forms a part ofthis report.
Your Directors have not recommended dividend in view of the losses incurred by thecompany during the year.
The Company has not accepted any deposits either from the shareholders or public withinthe meaning of The Companies (Acceptance of Deposits) Rules, 1977 as amended.
Mr. G Natarajan, Whole Time Director of the Company ceased to be a Whole time Directorwith effect from 31st July 2013, but continues to be a Director in the Boardsubject to retirement by rotation in accordance with the Articles of Association of theCompany and the relevant provisions of the Companies Act, 1956.
Mr. K U Sivadas was appointed as an Additional Director with effect from 30thJanuary 2013.
The Company has received notice under Section 257 of the Companies Act, 1956 proposingthe appointment of Mr. K U Sivadas as Director liable to determination through retirementby rotation at the ensuing Annual General Meeting.
Mr. M Aravind Subramanian, retires by rotation at the ensuing Annual General Meetingand being eligible, offers himself for re-appointment.
During the year, Mrs. Uma Karthikeyan, Director resigned from the Board of Directors ofthe Company with effect from 5th September 2012. The Board wishes to place on recordappreciation of the service rendered by Mrs. Uma Karthikeyan as Director of the Companyduring her tenure.
PARTICULARS OF EMPLOYEES:
As required under the provisions of Section 217 (2A) of the Companies Act, 1956 readwith the Companies (Particulars of Employees) Rules, 1975, as amended, the name and otherparticulars of the employees is set out in Annexure -1 to this Report.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, withrespect to Directors' Responsibility Statement, it is hereby confirmed that:
(i) in the preparation of the annual accounts, the applicable accounting standardsissued by the Institute of Chartered Accountants of India read with the requirements setout under Schedule VI to the Companies Act, 1956 have been followed and there is nomaterial departures from the same;
(ii) the directors had selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company as at 31st March, 2013 and ofthe loss of the company for the year ended on that date;
(iii) the directors had taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Companies Act, 1956for safeguarding the assets of the Company and for preventing and detecting fraud andother irregularities; and
(iv) the directors had prepared the annual accounts of the Company on a 'going concern'basis.
Your Company is in compliance with the requirements and disclosures with respect to theCode of Corporate Governance as required under Clause 49 of the Listing Agreement enteredinto with the stock exchange. A report on Corporate Governance along with a certificatefrom the Auditors forms a part of this report.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The particulars relating to energy conservation, technology absorption, foreignexchange earnings and outgo, as required to be disclosed under Section 217(1)(e) of theCompanies Act, 1956 read with the Companies (Disclosure of Particulars in the Report ofBoard of Directors) Rules, 1988 are provided as "Annexure 2" to this Report.
M/s. Sreedhar, Suresh & Rajagopalan, Chartered Accountants, Chennai, the StatutoryAuditors of the Company retire at the ensuing Annual General Meeting and are eligible forreappointment.
AUDIT REPORT AND EXPLANATION UNDER
SECTION 217 (3) OF THE COMPANIES ACT, 1956
The Auditors' Report is self explanatory and does not require any further commentsunder Section 217 (3) of the Companies Act, 1956, except that :
Point (vii) of the Annexure to the Auditors' Report
The Company has since appointed Internal Auditor to take care of Internal Audit systemfor the financial year 2013 -14.
Point (ix) (a) and (b) of the Annexure to the Auditors' Report
The Company is in the process of regularising all statutory remittances to theconcerned department. A Substantial level of taxes have been paid subsequently as on thedate of this report.
Point (xi) of the Annexure to the Auditors' Report
The company had initiated the process of regularising the bank dues and as on the dateof this report all dues have been updated.
APPRECIATION & ACKNOWLEDGEMENTS
The Directors wish to thank all the bankers for their continued assistance and support.The Directors also wish to thank the Shareholders of the Company for their continuedsupport even in this global recession. Further the Directors also wish to thank thecustomers and suppliers for their continued cooperation and support. The Directors furtherwish to place on record their appreciation of employees at all levels for their commitmentand their contribution.
| ||On behalf of the board |
| ||For ENNORE COKE LIMITED |
|Place : Chennai ||G NATARAJAN ||R RAMAKRISHNAN |
|Date : 13th August 2013 ||Director ||Director |
ANNEXURE - 1 TO THE DIRECTORS' REPORT
Information as per Section 217 (2A) of the Companies Act, 1956 read with the Companies(Particulars of employees) Rules, 1975, and forming part of the directors report for theyear ended March 31, 2013.
|Employee Name ||Designation ||Qualification ||Age ||Joining Date ||Experience (in years) ||Gross Remuneration (for 1 month and 15 days) ||Previous Employment and Designation |
|Mr. Anupam Mittal* ||Chief Executive Officer ||B.Tech (Metallurgical) ||55 ||1st July, 2011 ||29 ||8,02,582/- ||Jindal Steel and Power Ltd. Business Head (Middle East) |
Notes : Remuneration comprises basic salary, allowances and taxable value ofperquisites. None of the employees is related to any Director of the company.
None of the employees owns more than 2% of the outstanding shares of the company as onMarch 31, 2013.
* resigned wef 15th May, 2012, 1 month and 15 days (for the period from 1.4.2012 to15.5.2012).
ANNEXURE - 2
ANNEXURE TO THE DIRECTORS' REPORT
Information pursuant to Section 217 (1) (e) of the Companies Act, 1956 read with theCompanies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988in respect of conservation of energy, technology, foreign exchange earnings and outgo.
A. CONSERVATION OF ENERGY
The Company has implemented non recovery coke oven facility of capacity 1,30,000 MT perannum and is in the verge of integrating it with 12 MW waste heat power generationfacility at Haldia. The coke making facility through non recovery coke oven technology andgeneration of electricity using the waste heat from waste gases of the coke ovens wouldcontribute towards reduction of emissions of clean gases to atmosphere when compared withby-product recovery type coke making facility and production of the same power through aconventional based technology of coal based thermal power plant.
1. The coke making process when integrated with co - generation power plant facilityqualifies as a Clean Development Mechanism under KYOTO PROTOCOL of United Nationsframework.
2. Energy saving through installation of Energy Saving motor.
3. By replacing existing street lights by Light Emitting Diod (LED) types at factorypermises.
B. TECHNOLOGY ABSORPTION
1. Specific areas in which R& D is carried out by the Company :
The Company has not carried out any specific R&D activities.
2. Benefits derived as a result of the above R&D
The Company has not carried out any R&D activities and hence the question ofreceiving benefits does not arise.
3. Future Plan of action
Under process of implementation.
4. Expenditure on R & D - NIL
C. FOREIGN EXCHANGE EARNINGS AND OUT GO
| ||2012-13 ||2011-12 |
|(a) Expenditure in Foreign Currency (Accrual basis) || || |
|Travelling || || |
|Expenses ||3,73,356 ||42,30,831 |
|Demurrage || || |
|Charges ||1,45,63,890 ||- |
|Claims ||2,36,79,740 ||- |
| ||3,86,16,986 ||42,30,831 |
|(b) Value of Imports (Cost Insurance Freight basis) || || |
|Raw Material ||- ||- |
|Traded Goods ||- ||35,20,54,177 |
| ||- ||35,20,54,177 |
|(c) Earnings in Foreign Exchange || || |
|Export Sale ||- ||1,36,21,405 |
|Remittance of Dividends ||Nil ||Nil |