Texmaco Rail & Engineering Ltd

BSE: 533326 | NSE: TEXRAIL | ISIN: INE621L01012 
Market Cap: [Rs.Cr.] 1,668 | Face Value: [Rs.] 1
Industry: Engineering

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TEXMACO RAIL AND ENGINEERING LIMITED ANNUAL REPORT 2011-2012 MANAGEMENT DISCUSSION AND ANALYSIS The Company for a greater part of the year faced a challenging time with forced idle capacity in its Rolling Stock Division with the wagon orders not materializing as per the projections and pronouncements of the Ministry of Railways. The Management's production plan indeed went awry waiting almost endlessly for the release of the orders. Notwithstanding such an unexpected turn of the situation, the company readjusted its working and took extraordinary measures to control its costs and overheads and geared up all its resources for accelerated output concomitant with the release of the orders in the last quarter of the year. With a robust current order book and the growing prospects of the Hydro Mechanical and Steel Casting Divisions, the Company expects appreciable improvement in the capacity utilization during the current year. Heavy Engineering Division: Rolling Stock: Your Directors have to report that despite trying conditions without adequate and timely release of wagon orders by Indian Railways, which was placed only during middle of January 2012 (i.e. after a lapse of almost 16 months), your Company has been able to roll out 3,471 wagons valued approx. Rs. 674 crore (excluding the cost of Free Issue Materials A/c. Indian Railways), comprising 2,954 wagons to Indian Railways and 517 wagons to private customers. During the year, the Company booked orders for a total of 5,837 wagons including private orders. The Indian Railways' order on the company during the year 2011-12 was for 4670 nos, which was the highest ever quantity ordered by the Indian Railways on any wagon builder. The Company also secured two prestigious export orders from Bangladesh Railways for 255 wagons valued at Rs. 117.03 crore, and another export order for 70 wagons valued at Rs. 12.43 crore for supply to Africa. The Company has a healthy order book of 6,000 wagons, valued approx. Rs.1,299.93 crore (excluding cost of FIMs A/c. Indian Railways' order). As per the Budget announcement for 2012-13, the Railways have planned the highest ever planned outlay of Rs. 60,100 crore during 2012-13, with a freight target of 1025 million tone. The budgeted expenditure for procurement of rolling stock is about 32% higher at Rs. 18,193 crore as against Rs. 13,824 crore last year, which is a significant increase. This will translate in acquisition of higher number of wagons. The Budget has focused on accelerated development of double-deck container flat wagons, autocars, and new Design 25T axle load freight cars for which the company is well positioned to take full advantage. Your Directors are pleased to inform that the Company has been maintaining its leadership in the field of BTAP wagons for transportation of Alumina Powder, and BCCW Wagons for transportation of Cement/Fly Ash. The company has successfully expanded its customer-base with the addition of prestigious public and private corporations during the year. The Company also stands out in meeting the requirement of Bottom Discharge Coal Hopper Wagon (MGR type) for Mega Power Plants. Looking to the fast growth of Automobile Industry in the country, the company expects a substantial demand for auto car wagons. The conceptual design for Double Deck Auto Rake, developed in collaboration with a European company, has already been submitted to the Indian Railways and is expected to be cleared shortly. As for the Container Flat Wagons, the private Container Operators are continuing to go through a tough time due to steep hike in haulage charges by Indian Railways. It is hoped that the Railways will address the issues bearing on the viability of the private Container fleets to find amicable solution in the near future. Dedicated Freight Corridors: The Government of India is actively pursuing and closely monitoring to ensure steady progress of the construction of the Dedicated Freight Corridors. Your Company has a special interest in the Western DFC. The entire Western DFC will be funded substantially by the Japan International Cooperation Agency (JICA), under the Special Terms of Economic Partnership (STEP) Scheme of the Government of Japan, with a tied loan of 30% of the total value of contracts to be sourced from Japan. Your Company is working closely with the Japanese consortium for indigenous participation. Joint Venture with UGL Rail Services Ltd., Australia.: A State-of-the-Art facility, one of the best of its kind, is being set up by your Company in Joint Venture with UGL Rail, Australia for manufacturing Locomotive Bogie Frames, Platforms & Cabs, Head Stocks for Coaches and Wagon components. The progress of the project is satisfactory, and the commissioning is scheduled in October, 2012, with ramp up to full production capacity by March next year. The products will be of top quality, manufactured on world class equipments by a highly skilled workforce. Your Company, along with UGL Rail Services Ltd., further subscribed Rs.20,25,10,000 each in the Capital of the said Joint Venture, taking up the total Partner's contribution to Rs. 72,02,20,000 in the Capital of the JV Company. Joint Venture with Touax Rail, a French Group. The Company has signed a Joint Venture Agreement on 16th May 2012, with the French Group Touax Rail, a leading Lease Finance Company of Europe, having vast experience in the business of leasing out freight cars etc. The JV Company has been named as 'Touax Texmaco Railcar Leasing Private Limited', and will be owned and controlled 50% each by Touax and Texmaco (with Touax holding 2 Shares of nominal value of Rs. 10/- each in excess of holding of the Company) to facilitate consolidation of Accounts of the JV Company in their holding company. To begin with, the JV will have a minimum net worth of Rs.25 crore, the threshold limit for eligibility to qualify for the business, which would be enhanced in due course. The JV would have an early bird advantage of the present policy of the Railways of permitting leasing companies to own and lease wagons to the Industry and other end users on operating lease basis, which was not permitted hitherto. Hydro Mechanical Eqpt, Steel Structures & Process Equipment: After slowdown of activities in the Hydro Power Sector for nearly 4 years, the enquiries for Hydro-mechanical equipments for various new projects have started flowing in, while deferred projects have also started reviving during the latter half of the year. A number of Hydro projects are now in the pipeline in India and neighboring countries namely Nepal & Bhutan, and the prospects of Hydro-mechanical Eqpt orders have brightened up. The Company has secured orders for Hydro-mechanical work in Upper Tamakoshi Hydro electric project, Nepal (456 MW), valued approx. Rs. 90 crore, Rangit Stg-IV Hydro electric Project, Sikkim (120 MW) valued approx. Rs. 37 crore, Farakka Barrage (Replacement/rehabilitation), West Bengal, valued approx. Rs. 8 crore and recently Rongnichhu Hydroelectric Project, Sikkim (96MW) for Rs. 46 Crore. There is opportunity for sizable business at Farakka Barrage where the Govt. of India has decided to replace all the gates in the 12th five year plan. The Notice Inviting the Tender has been published in the first week of May 2012 for the second phase comprising of 33 Nos. Gates, estimated at approx. Rs. 25 Crore. The execution of current projects had some setbacks due to geological surprises, natural calamities and local political problems. As a result, the turnover of the Division stagnated during the year. However, with improved business prospects, the Division is expected to fare better in the current financial year. Besides, the Company has intensified participation in steel bridge and flyover structure tenders, and has in fact been successful in securing a couple of orders of Railway Bridges for Kalindee and IRCON. In the Process Equipment segment, the Company successfully executed the orders for 3 nos. Direct Contact Air Coolers, 3 nos. Evaporative Coolers and 6 nos. Adsorber Vessels with internals of molecular sieves, which were all meant for Air Separation Plants. The overall operations of the Division were at rather low ebb. However, with the integrated steel plants going in for modernization, expansion and production of higher grade steel, there is a good potential for Heavy Pressure Vessels and Buffer Vessels. There are also fair prospects of orders for Horton Spheres and Storage Vessels required in the Oil Sector and Chemical Industry. Steel Foundry Division: In consequence of delayed wagon orders, the production & despatches of Steel Castings during the year were just maintained at the same level as last year, at 17837 Tons and 16951 Tons respectively. In terms of revenue, however, it has achieved a growth of 15% in its turnover at Rs. 209.37 crore as compared to the last year. On the export front, however, your Foundry turned out commendable performance, and its sales has jumped 3-fold compared to the last year with a turnover of Rs. 19.96 crore backed by a significant order-book of over Rs. 25 crore at the end of the year. After successful engagement with Australian, North American & European markets, the focus now is on booming CIS markets. A MOU has been signed with a CIS based company for development and supply of Railway castings to their design and the various formalities are well under way. Yet another highlight of the Foundry operations was in the area of import substitution. The Foundry took the lead in development and getting recognition as an approved indigenous source of supply of Upgraded High Tensile Centre Buffer Coupler in place of imported AAR approved couplers. The Division has won acclaim from Indian Railways for this outstanding achievement in meeting a critical requirement and has been awarded an order for 1800 sets of Coupler Assembly. Also noteworthy is the development and supply of Tight Lock Railway Coach Coupler castings for field trial to a internationally renowned coupler manufacturer, which are giving excellent performance on Duronto Trains. The bulk orders are expected to follow. Besides, the Division has initiated discussions with a major global player having significant presence in India for development of intricate and hi- tech castings to be used on heavy trucks and loaders for mining industry. Upon successful development, the Foundry will have opportunities to supply castings in this segment across the globe. Agro Machinery Division: The performance of the Division substantially depends on the Government Subsidy Schemes in the States with major markets for Power Tillers such as West Bengal, Assam, Orissa and Karnataka. The non-release of the subsidy schemes by the States impacted the performance of the Division. Furthermore, the import of Diesel Engine for Power Tiller from Siam Kubota Corporation stood totally suspended from October 2011 till March 2012 due to devastating flood that gripped Thailand. The Division under the circumstances, managed to despatch 552 Nos. Power Tillers during the year. The Division has introduced 'Power Reaper' - harvesting machine in the market which is well accepted by the farming community. The machine will be submitted shortly to SRFMTTI, Anantapur (A.P.), for testing to make it eligible for sale under all Government Assisted Programs. With enhanced budgetary allocation for Agricultural Machinery in the current financial year, the Division expects to improve its performance. Exports: Your Directors are delighted to report that based on the Foundry's consistently good export performance for the last 4 years, the Ministry of Commerce, Government of India has awarded the prestigious 'Export House' Status to the Company. The exports of the Company during the year stood at approx. Rs.74.54 crore including deemed exports. The Company has performed well in the Australian, American, European, South-East Asian and African Markets. R & D Activities: The Company is focused on development of new technology for improvement of its production methodology and reduction of cost by use of alternative materials etc. During the year the Company has developed a new welding technique of controlled MIG tack welding which reduces the time and also improves the weld quality. After 3D computer simulation of robotic welding of underframes, the Company has made an investment in a twin-robot welding machine which is currently being installed for start-up scheduled in 2nd quarter of the year. A special welding technique of controlled metal transfer was developed for making root runs with acceptable root bead geometry. This welding technique is being exploited in structural fabrication with considerable saving in fabrication time. In Steel Foundry, half-bead welding technique for weld repairs in castings now takes full advantage of re-crystallization of as-deposited weld metal. A desk top design and animation of a carousel for dressing of casting underpinned the benefits of this technology. Evaluation of the merits of a mechanized shuttle system for wet fluorescent magnetic particle inspection of side-frame and bolster castings with synchronized digital image capture of black light images led to the decision for installing a NDT system in Foundry. IT Services: During the year, the Company introduced the latest and most advanced system of Oracle R12 for its operations. The users of Procurement, Stores, and Finance functions are progressively attaining higher degree of efficiency while working with the R12 system. Considering the benefits - in terms of cost and quality, the Management is in the process of extending the R12 solution for entire Manufacturing operations. In another significant initiative, the real-time communication network bandwidth is being extended to cover all the Plants of the Company. The Management looks forward to significant operational gains from its IT initiatives. Human Relations: Your Company has maintained its reputation in the industry as a model employer for its unique track record of industrial harmony over several decades. There is a healthy and constructive co-operation between the workmen and management leading to productivity gains and improvement in quality, which have become the core strength of the Company. On 6th September, 2011, your Company entered into a historic Tripartite Wage Agreement with the Unions for a period of 4 years. In terms thereof, whereas the Management agreed to grant substantial increase in wages to its workmen, the Unions in turn assured the Management of their whole hearted co-operation to raise measurable productivity through effective and efficient utilization of working hours. The Unions also agreed for Multi- discipline working (at least 3 trades) by the workmen. The Company aims to align HR practices with business goals, motivate people for higher performance and build a competitive working environment. It launched various training scheme for upgrading the skill and knowledge of its employees in different operational areas. Various programs & workshops were conducted during the year, which included Personality Grooming, Communication Skill, Health & Safety, House Keeping, Energy Management, Productivity Improvement, Total Quality Management, and Customer Satisfaction etc. The Company's special program of providing an educational window for B. Tech 3-year course to its employees in collaboration with BITS, Pilani (at BITS-Texmaco Centre of Excellence within the premises of the Company) is yielding excellent results in strengthening the organization. Your Directors commend the dedication and deep commitment of the workmen, staff and officers in building the corporate image through sustained pursuit of excellence. Employees Stock Option Scheme (ESOS): Details of Employees Stock Option granted pursuant to Employees Stock Option Scheme 2007 (ESOS 2007), as also the disclosure in compliance with Clause 12 of the Securities and Exchange Board of India (Employees Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines, 1999 are set out in the Annexure 'A' to this Report. During the year, the Committee of Directors of the Company at its Meeting held on 9th March, 2012 has allotted 2,43,500 Equity Shares of the Company to its eligible employees, pursuant to exercise of 2,43,500 Options by the eligible employees under ESOS 2007 and consequently the Paid up Share Capital of the Company stands increased from Rs. 18,17,83,090/- to Rs. 18,20,26,590/- w.e.f 9th March, 2012. Under ESOS 2007, there were 3,65,000 Options outstanding as on effective date i.e. 1st April, 2010 of demerger of Heavy Engineering and Steel Foundry businesses of Texmaco Limited to the Company, out of which employees had exercised 2,43,500 Options and the Scheme thereafter, stands closed on the balance Options being not exercised and surrendered by certain eligible employees. Opportunity & Threats: It augurs well for the Company that all its business segments are critical to the economic growth of the country and have been accorded high priority in the resource allocation by the Planning Commission. The Rail Transport is recognised as the lifeline of the nation, and there is a massive long- term plan for the development of the Rail Infrastructure. The Dedicated Freight Corridor (DFC) Planned by the Government of India is one of the biggest national projects on the anvil, and the full momentum will gather with completion of the acquisition of the land in progress and the finalisation of the multi-lateral and/or bi-lateral international soft loans. Meanwhile, your Company is re-jigging itself to be in a state of readiness for successful participation in the bidding process for the new design, high pay-load freight cars and high powered locomotives to be used on the DFC. The renewed emphasis by the Government on the Hydro Power Sector in our power starved country is very promising. A number of new Hydro Power projects are getting cleared. There is also a big demand emerging from the neighbouring countries having rich water resources. However, in spite of strong positive indicators, there is a serious concern over delay in implementation of Dedicated Freight Corridor (DFC) and other high-end Railway Projects. The procrastination in implementation of the long term procurement policy for wagons is also a perennial problem in efficient operation and capacity utilization of the Wagon Industry. The continuing plight of the container freight car operators is also causing disappointment with an otherwise progressive policy initiative of the Railways. Last but not the least, the current dismal global economic scenario and the sharp depreciation in the Rupee value are casting long shadows on the general industry outlook. Corporate Social Responsibility: At TEXRAIL, Corporate Social Responsibility (CSR) means continuous improvement in the quality of life of the workmen/staff associated with the Company and the people living in its neighbourhood. Education, health care, hygiene and environment management are areas of priority. The Company has residential estate inhabiting more than 500 families with provision of all the amenities e.g. clubs, swimming pool, parks, playgrounds, gym, air conditioned auditorium, etc. for social, recreational and educational activities for the benefit of its workmen/staff and residents. The Company is committed to its mission to serve the poorer sections of the society through better education and training to promote self employment. Texmaco Neighbourhood Welfare Society Trust provides financial assistance to the poor & needy for their health, education, social needs etc.
TEXMACO RAIL AND ENGINEERING LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSIS The operations of the company ran through a difficult phase for a substantial part of the year owing to paucity of workload in absence of timely release of wagon orders by the Indian Railways. Besides, there was a set back in the order-flow from the private container train operators, as their business model suffered a severe impact owing to a hefty increase in haulage charges by the Indian Railways. Such increase for 5 major commodities ranged from 124 to 270% for using Railway infrastructure, which constituted 70-75% of the operating costs of container train operators. Notwithstanding the above, the company made some strategic moves to shore up its operations and managed to achieve a healthy growth in bottom line through accelerated execution of the new orders in the second half of the year with a series of cost-reduction measures. Heavy Engineering Division: Rolling Stock: Your Directors are pleased to inform that despite abnormal delay by Indian Railways in the release of wagon orders in September 2010 for FY 2009-10, your Company was able to deliver 3801 wagons valued approximately at Rs.871 crores. It would be pertinent to mention that whereas there was a slight fall in absolute numbers, the year ended with a higher turnover and profitability owing to product-mix and operational efficiency. The production of the Industry as a whole including the Public Sector was 14961 VUs, of which the Company's share was 25.24%. Of the total wagon production in the Private Sector, the Company's share was 30%. Rolling Stock Turnover: The order book position of the Company at the beginning of the current year FY 2011-12 stood at approx. Rs.774 crores (excluding the cost of Free Issue materials A/c. Indian Railways). In the budget for the current year, the Railways have provided for procurement of Rolling Stock worth Rs. 13,824 crore, including 18000 wagons (15715 for Private Sector) to realize a freight loading target of 993 million tones. The setting up of National High Speed Rail Authority, running of special freight trains by private operators, building of new 700 km rail lines, and the target for completion of Dedicated Freight Corridor (DFC) by 2016 (entailing a total outlay of Rs.77000 crore), are some of the positive initiatives in the Budget for FY '12. The Indian Railways are in a high growth trajectory, and your Company as an acknowledged leader in the wagon industry looks forward to a bright future ahead over the years. Your Directors are pleased to inform that during the year, the Company bagged export order for wagons valued Rs. 27 crore and expects to receive further orders in view of the resurgence of demand in the transport sector globally. The thriving Aluminium and Cement Industries, have a growing demand for BTAP wagons (for transportation of Alumina Powder) and BCCW wagons (for transportation of Cement/ Fly ash). Further, NTPC and other State Electricity Boards would be procuring Bottom Discharge Coal Hopper Wagons (MGR type), for mega power stations. Your Company with its leadership in this segment expects a major share of the hi-tech commodity specific special wagons. With the announcement of Automobile Freight Train Operator Scheme (AFTO) by Railways, there are active enquiries from the automobile manufacturers, who are in dialogue with the Company for development of Autocars. Your Company has already submitted the conceptual design to Indian Railways for Double Decker Auto Rake in collaboration with an European designer. Your Company is looking for new business opportunities in the field of wagon leasing in line with the Wagon Leasing Scheme introduced by the Railways. Considering the opportunities in railway logistic business and the railway projects are set up under PPP for locomotives and passenger coaches, your Company is seriously working on projects in joint ventures with world leaders in the field. It is already engaged in manufacture of Car Body Shells for WAG-9 Electric Locomotives. Joint Venture with UGL Rail Services Ltd., Australia. Your Directors are pleased to report that the Company signed a 50:50 Joint Venture Agreement with UGL Rail Services Ltd., Australia on December 21, 2010 for setting up a manufacturing facility by the JV Company, Texmaco United Group Rail Pvt. Ltd., primarily for export of Wagon Flat Packs, Locomotive Bogie Frames, Loco Platforms and developing new design wagons. Your Company along with UGL Rail Services Ltd., Australia, subscribed Rs. 15.75 crore each in the equity capital of the said joint venture for setting up a State-of-the-Art facility in your Company's own premises at Belgharia, leased out to the JV Company. Hydro Mechanical Eqpt, Steel Structures & Process Equipment: The Hydro Mechanical Equipment (HME) segment is beginning to look positive with revival of various stalled projects after a sluggish scenario for the last couple of years. The Empowered Committee of the GoM, Govt., of India, has activated some of the projects, which were on hold for various environmental and other clearances. After the initiative taken by the GoM, fresh enquiries have started flowing in, and the Division is targeting substantial orders during the current year, both domestic and export. The recent nuclear disaster in Japan has also fueled demand for clean and pollution-free power, which would boost the prospects of Hydel Power Projects. During the year, the current projects suffered due to local problems, and the turnover of the Division stood at approx. Rs.40 crore. The Company has bagged a HME order for a project in Bhutan, through Andritz Hydro, Austria, and also participated recently in a project in Nepal, where there is a fair prospect of securing the business. The Division has intensified efforts to take up new product lines by joining hands with international leaders in the respective fields. There is good business potential for Railway Bridges and Industrial Steel Structures for Power and Steel Projects. In the Process Equipment segment, the Company successfully executed the follow-on orders for 3 nos. 200m3 Buffer Vessels, each weighing 82 tones, for Steel Plants. The order for 12 nos. Process Equipments like Coolers and Adsorbers, as reported in the previous year, will be completed during the current year. Steel Foundry Division: The foundry capacity remained underutilized during the first 8 months of the year due to late release of orders by Indian Railways. However, your Company still managed to maintain the production and dispatches of castings at 18313 MT & 16934 MT respectively during the year, almost at the same level as in the last year. The turnover for the year was Rs. 182.23 crore, marginally lower compared to the previous year. There was something to cheer up, however, in the export market, and your Directors are pleased to inform that the foundry has successfully developed intricate, hi-tech castings for internationally renowned users, and established its credibility & reliability in the global market. The foundry achieved an export turnover of Rs. 73 million, and built an export order book of Rs. 210 million as at the end of the year. According to the trend of the current enquiries, the Management expects a significant spurt in export revenue during the current year. The high axle load (27.5T) Side Frame & Bolster castings developed by your foundry, which were under testing in USA, have successfully passed static & dynamic testing at the AAR (Association of American Railroad) approved laboratory. With this accreditation by the world recognized organization, your Foundry is now the only one in India, which is qualified to supply the Cast Steel Bogies to the North American Market and has, in fact, already started securing the orders. Further, the foundry has taken the lead in successfully developing, Tight-Lock Coupler castings for passenger trains, for an internationally renowned coupler manufacturer. These have been supplied to the Indian Railways and are giving excellent service on 'Duronto Express' train. Looking to the buoyant market for Steel Castings, with the spate of enquiries in the international market, the Management is actively planning to put up a green field modern Foundry with a capacity running up to 50000 MT per year. Agro Machinery Division: In spite of numerous policy and procedural issues, the Division managed to achieve a turnover of Rs. 610.72 Lakhs, which is marginally higher compared to the previous year. The Division has made a good break-through and expanded its market in the Southern States of India. The performance of the Division is expected to improve significantly during the current year. New agricultural machine like Power Reaper is being introduced to widen the product range. On successful field trials, the machine has been well accepted by the farming community. Besides, the performance of the newly developed Infrared Recycling Pot Hole Repairing Machine, delivered to Delhi Municipal Corporation, is highly satisfactory. The Management expects to receive good orders for the machines during the current year. Exports: The exports of the company during the year stood at approx. Rs. 53.65 crore including Deemed Export. Your Directors are pleased to inform that, the Company has successfully developed steel castings for the American market, and has already commenced export against orders from US Customers. The Company expects to receive good export orders for wagons/wagon components from the customers in South Asia, America and Australia, and foresees a bright future for its products in the export markets in the years to come. R&D Activities: R&D Projects undertaken in 2010-11 are: * Development of Coupler as an import substitute to be used in stainless steel wagons (BOXNHL & BCNHL). * Coupler casting for coaches * Development of Bogie Casting (New Design) for export market. In keeping with its drive to improve the quality all round, the Management is setting up a modern Painting Line comprising two paint booths and two heating chambers. This will considerably add to the quality and finish of the products. IT Services: Information Technology (IT) being an enabler for business growth and efficiency, the Company has deployed Oracle ERP system for its operations. The users of respective functions are progressively attaining higher degree of friendliness in application of the system. The Management believes that it will bring substantial advantages in terms of cost, quality, and delivery schedule. Restructuring of the Company: By a Scheme of Arrangement approved by the Hon'ble High Court, Calcutta, the Heavy Engineering and Steel Foundry businesses of Texmaco Limited were demerged to the Company, with the appointed date of 1st April 2010. The Scheme of Arrangement was duly approved by the Shareholders and thereafter by the Hon'ble High Court, Calcutta, vide its order dated 6th September 2010 received on 14th October 2010 and approved by the Registrar of Companies on 19th October 2010. Accordingly, the working of Heavy Engineering and Steel Foundry businesses of Texmaco Limited for the full financial year 2010-11 have been included in the Revenue and Expenses of the Company for the financial year 2010-11. In consideration of demerger of Heavy Engineering and Steel Foundry businesses of Texmaco Limited as above, the Company as per the Scheme of Arrangement has allotted one Equity Share of Re. 1/- each fully paid up against one Equity Share of Re. 1/-each of Texmaco Limited held by its Members and whose names were recorded in the Register of Members on the Record date of 2nd November 2010. The Company's Equity Capital post-demerger of Texmaco's Heavy Engineering and Steel Foundry businesses and allotment of Equity Shares to the Members of Texmaco Limited has increased to Rs.1817.83 Lakhs from Rs. 546.00 Lakhs. Human Relations: The Management regards 'Human Capital' as the prime source of Corporate strength and growth. The Company continues to maintain its excellent record of industrial harmony over the decades, which has been cited in the Industry as a model of constructive co-operation between the workmen and the Management. Modern work practices, comprehensive employee recruitment procedures, structured performance parameters, extensive employee engagement and training to improve the knowledge skills are part of integrated programs aimed at realization of the organizational goal. The Management believes that it is important to be pro-active in moving ahead of the times. Human Capital is critical for the Company's long term success, and in keeping with this philosophy, it has entered into collaboration with Institutes such as BITS Pilani and other academia for educational courses at the Company's Center of Excellence Employees Stock Option Scheme (ESOS): Details of Employees Stock Option granted pursuant to Employees Stock Option Scheme 2007 (ESOS 2007), as also the disclosure in compliance with Clause 12 of the Securities and Exchange Board of India (Employees Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines, 1999 are set out in the Annexure 'A' to this Report. Opportunity & Threats: Rail transport infrastructure figures high in the country's economic plan. The growth in the rail sector would be dramatic as the plans materialize to build a modern network for running high speed, high pay-load freight cars, hauled by high-powered locomotives. The multi-billion Dedicated Freight Corridor Project is a major highlight of Indian Railways' VISION 2020, and the next 5-7 years will witness an unprecedented growth in creation of new capacity to meet the emerging demand for goods and services thrown up by the project. While the journey onwards is exciting, and the Industry is gearing to build a world class infrastructure, the political compulsions sometimes impact the policy planning owing to a skewed approach to enlarge the public sector to meet the uninformed perceived gap in demand and supply. The Industry has been pleading for an objective appreciation of its role and performance and an opportunity for optimal utilization of its capacity, volume economy, and cost-effective operations. This would need efficient resource and procurement planning by the Indian Railways which has an annual procurement budget of over Rs.30,000 crore (Rupees thirty thousand crore). The national asset utilization should be a key determinant in new capacity creation with assured high returns. Corporate Social Responsibility: The Management reiterates its commitment to CSR as enshrined in its last Annual Report: 'CSR is not merely a statement of intent for TEXRAIL. It is an Article of Faith, a belief that the world would be a better place to live with strong human bonding. As a part of the corporate philosophy, Education, Health, Environment and Safety continue to be areas of priority for the Company'. The Company continues its mission to contribute to the society through specific programs. Going beyond reliefs and grants, the motto is to empower people, help them take charge of their lives by providing them better education, training, upgrading skills to realize their potential and aspirations.

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ISGEC Heavy 1,741.35 18.40 2.69 3.19 10.9 11.7 0.52
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TIL 439.06 194.56 1.65 9.03 0.9 6.9 0.93

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Key Information

Key Executives:

S K Poddar , Executive Chairman  

A C Chakrabortti , Director  

Ramesh Maheshwari , Executive Vice Chairman  

D H Kela , Director  

Company Head Office / Quarters:
West Bengal-700056
Phone : 91-33-25691500
Fax : 91-33-25412448
E-mail : ak.vijay@texmaco.in
Web : http://www.texmaco.in
Karvy Computershare Pvt Ltd
21Rd No-4
Street No-1
Banjara Hills
Hyderabad - 500 034

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