Ennore Coke Ltd

BSE: 512369 | NSE:  | ISIN: INE755H01016 
Market Cap: [Rs.Cr.] 32.09 | Face Value: [Rs.] 10
Industry: Trading

Director's Report
DIRECTORS REPORT

Your Directors have pleasure in presenting the Twenty Ninth Annual Report together withthe accounts of your Company for the year ended March 31, 2014.

FINANCIAL HIGHLIGHTS

(Rupees in Lacs)
Particulars 2013-2014 2012-2013
Revenue from Operations and Other Income 50,090.91 35,885.07
Profit/(Loss) before Interest, Depreciation and Tax (438.11) (1,716.38)
Interest & Finance Charges 1,597.64 1,935.96
Depreciation 1,490.72 1,622.38
Provision for Tax 9.10 99.61
Deferred Tax 76.72 (1,395.40)
Net Profit/(Loss) for the year (3,612.29) (3,978.92)
Accumulated Profit/ (Loss) Brought forward From Balance Sheet (2,357.42) 1,621.50
Total Distributable profit/ (Loss) (5,969.71) (2,357.42)
Dividend Nil Nil
Dividend Tax Nil Nil
Profit/(Loss) Carried over to the Balance Sheet (5,969.71) (2,357.42)

Revenue from operations and other income for the year under review was Rs. 50,090.91lacs and for previous year Rs. 35,885.07 lacs and the loss before tax was Rs. (3,612.29)lacs and for previous year (Rs. 3,978.92 lacs). The loss after tax including loss carriedover to the Balance Sheet stands at Rs. (5,969.71) lacs and for previous year (Rs.2,357.42 lacs).

BUSINESS REVIEW

The Coke and steel market has witnessed turbulent times in the last three years whichhas continuously seen erosion of coke prices while there has been escalation in coalprices.

Added to this, there was dumping of metallurgical coke by various Chinese companies onaccount of industrial slowdown in China also led to glut of coke in India thuscontributing to fall in coke prices in Indian market. Further the Rupee losing its valueand depreciated by about 30% (i.e. Rs.60/$ from Rs.45/$) during the past 3 years hadworsened the situation. Delay in infrastructure projects implementation directly hit thesteel industry and due to this, its impact on coke was severe. Further, part of the yearsproduction were affected due to by shortage of Coal in view of certain Import Constraints.

With the advent of the new government Infra structure Projects have also been announcedand several other Project expected to announce and Import duties have been rationalisedwhich we hope the same might puts the Coal and coke industry on the development path.

OPERATIONS & FUTURE PROSPECTS

Your Company resumed full fledged operations with the newly redesigned coke ovenbatteries during the financial year 2013-14 achieving an operative capacity of 1,30,000 mtper annum. It has already identified new units and those will be in operations soon. Yourcompany is also in the process of taping Markets in other States. Your Company is alsopleased to announce that the production of Power has commenced through Waste Heat Recoveryand your company has been supplying power to the State Electricity Board under PowerPurchase Agreement. The Company had successfully maintained its coke quality and couldconsistently supply to end users like Tata Metalliks, Sun Flag Steel, Moneth Ispat etc.

Your Company is currently revisiting its Marketing Model and proposes to spread itspresence across geographical locations. Your company will persue identification of Dealersacross the country to evenly spread the customer base and increase profitability.

Going Forward, your company is currently regulating the Production parameters which hasresulted in enhanced yield.

PREFERENCE SHARES

During the year your Company has issued and allotted 10,00,00,000 fully paid upCumulative Redeemable Preference Shares (CRPS) of face value of Rs.10/-each with a minimumcoupon rate of 10% to Haldia Coke and Chemicals Private Limited, after complying with thenecessary formalities and procedures.

DEPOSITORY SYSTEM

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 2014, 99.91% of the Equity Shares of the Company were held in demat 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.

DIVIDEND

Your Directors have not recommended dividend in view of the losses incurred by thecompany during the year.

DEPOSITS

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.

DIRECTORS

Mr. G. Natarajan retires by rotation at the ensuing Annual General Meeting and beingeligible, offers himself for re-appointment.

In Compliance with Section 149, 152 and other applicable provisions if any, of theCompanies Act, 2013, your Company is seeking appointment of Mr. R Ramakrishnan and Mr.Aravind Subramanian as a Non-Executive and Independent Directors of the Company for fiveconsecutive years upto the date of the Thirty Third Annual General Meeting of the Company.The Company has received notice in writing along with requisite deposit from a memberunder Section 160 (1) of the Companies Act, 2013, and they are not subject to retire byrotation.

During the year, Mr. Rajeev Agarwal, Director resigned from the Board with effect from15th May 2014.

PARTICULARS OF EMPLOYEES:

There are no employees covered by Section 217 (2A) of the Companies Act, 1956, readwith Companies (particulars of employees) Rules, 1975.

DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 134(5) of the Companies Act, 2013, withrespect to

Directors' Responsibility Statement, it is hereby confirmed that:

a) in the preparation of the annual accounts, the applicable accounting standards hadbeen followed along with proper explanation relating to material departures;

b) 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 at the end of the financial year and ofthe loss of the company for that period;

c) the directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the company and for preventing and detecting fraud and other irregularities;

d) the directors had prepared the annual accounts on a going concern basis; and

e) the directors, in the case of a listed company, had laid down internal financialcontrols to be followed by the company and that such internal financial controls areadequate and were operating effectively.

f) the directors had devised proper systems to ensure compliance with the provisions ofall applicable laws and that such systems were adequate and operating effectively.

CORPORATE GOVERNANCE

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 1" to this Report.

AUDITORS

M/s. Sreedhar, Suresh & Rajagopalan, (Firm Regn. No. 003957S) CharteredAccountants, Chennai, the Statutory Auditors of the Company retire at the ensuing AnnualGeneral Meeting and to hold office from the conclusion of this Annual General Meetinguntil the conclusion of the Thirty First Annual General Meeting of the Company.

The Company has received a letter from the Statutory Auditor to the effect that theirre-appointment, if made, would be within the prescribed limits under Section 139 (1) and141 of the Companies Act, 2013.

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 commentsexcept that :

Point (vii) of the Annexure to the Auditors’ Report

The Company has since appointed Internal Auditor under Section 138 of the CompaniesAct, 2013 to take care of the Internal Audit System for the financial year 2014-15.

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 K U SIVADAS R RAMAKRISHNAN
Date : 13th August 2014 Director Director

ANNEXURE - 1

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 abase technology of conventional 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.

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

2013-14 2012-13
(a) Expenditure in Foreign Currency (Accrual basis)
Travelling Expenses 4,57,279 3,73,356
Demurrage Charges 7,58,37,896 1,45,63,890
Interest on Claims Payable 12,44,316 2,36,79,740
Freight Charges 6,16,50,948
Legal fees 1,45,83,947
15,37,74,386 3,86,16,986
(b) Value of Imports
(Cost Insurance Freight basis)
Raw Material 18,90,54,644
Traded Goods 29,53,74,169
48,44,28,813
(c) Earnings in Foreign Exchange Export Sale 1,85,36,839
Remittance of Dividends Nil Nil
   
Futures & Options Quote
Future Data Not present
Key Information

Key Executives:

R Ramakrishnan , Director

Arvind Subramanian , Director

K U Sivadas , Additional Director

Ganesan Natarajan , Director


Company Head Office / Quarters:

Sigappi Achi Bldg 1st Flr 18/3,
Rukmini Lakshmipathi Rd Egmore,
Chennai,
Tamil Nadu-600008
Phone : Tamil Nadu- / Tamil Nadu-
Fax : Tamil Nadu- / Tamil Nadu-
E-mail :
Web :

Registrars:

Cameo Corporate Services Ltd
Subramanian Building,1ST Floor No 1,Club House Road,Chennai - 600002

 
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