A) STEEL INDUSTRY - PERSPECTIVE
During the year under review, the world wide sluggish business environment has hit theexport hard and has also impacted the domestic market. The demand of steel was low in allsectors form capital goods industry to auto mobiles to constuction. In the last quarter,the economic indicators have shown improvement and it is expected that the steel industrywould perform well in the coming years.
B) PRODUCTION AND SALES REVIEW
During the year under review, the company has produced 43450.044 metric tonnes of Steelproducts. Due to lower demand for steel products, the operating receipts of the companyhas decreased to 160.92 Crores from 178.61 Crores in the previous year.
C) INTERNAL CONTROL SYSTEM
The company has adequate internal control procedures commensurate with its size andnature of its business. These internal policies ensure efficient use and Protection ofassets and resources. Compliance with policies, ensure reliability of financial andoperational reports.
D) RISK AND CONCERNS
The Steel Industry witnesses Cyclical price movements. The fortunes of the industrymove up and down in time with the market trend of prices. This phenomenon has become moreuncertain and unpredictable with the increased integration of domestic and global markets.The company has taken the cost cutting initiatives, enriching the product mix andstrengthened its marketing to cope with the business trend.
E) HUMAN RESOURCE DEVELOPMENT / INDUSTRIAL RELATION
During the year, the company has employed 173 persons. The Industrial Relations remaincordial during the year. The company is continuing its efforts for improvement in the workculture wherein employees can contribute to their fullest potential. The managementacknowledges the contribution of all employees in achieving better performance.