Your Directors have pleasure in presenting the Twenty Ninth Annual Report together with the accounts of your Company for the year ended March 31, 2014.
|(Rupees in Lacs)|
|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|
|Provision for Tax||9.10||99.61|
|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)|
|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. 50,090.91 lacs 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 carried over to the Balance Sheet stands at Rs. (5,969.71) lacs and for previous year (Rs. 2,357.42 lacs).
The Coke and steel market has witnessed turbulent times in the last three years which has continuously seen erosion of coke prices while there has been escalation in coal prices.
Added to this, there was dumping of metallurgical coke by various Chinese companies on account of industrial slowdown in China also led to glut of coke in India thus contributing to fall in coke prices in Indian market. Further the Rupee losing its value and depreciated by about 30% (i.e. Rs.60/$ from Rs.45/$) during the past 3 years had worsened the situation. Delay in infrastructure projects implementation directly hit the steel industry and due to this, its impact on coke was severe. Further, part of the years production 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 announced and several other Project expected to announce and Import duties have been rationalised which 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 oven batteries during the financial year 2013-14 achieving an operative capacity of 1,30,000 mt per annum. It has already identified new units and those will be in operations soon. Your company is also in the process of taping Markets in other States. Your Company is also pleased to announce that the production of Power has commenced through Waste Heat Recovery and your company has been supplying power to the State Electricity Board under Power Purchase Agreement. The Company had successfully maintained its coke quality and could consistently 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 its presence across geographical locations. Your company will persue identification of Dealers across the country to evenly spread the customer base and increase profitability.
Going Forward, your company is currently regulating the Production parameters which has resulted in enhanced yield.
During the year your Company has issued and allotted 10,00,00,000 fully paid up Cumulative Redeemable Preference Shares (CRPS) of face value of Rs.10/-each with a minimum coupon rate of 10% to Haldia Coke and Chemicals Private Limited, after complying with the necessary formalities and procedures.
Your Company's Equity Shares are available in dematerialised form through National Securities 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 its business is given in the Management Discussion and Analysis Report, which forms a part of this report.
Your Directors have not recommended dividend in view of the losses incurred by the company during the year.
The Company has not accepted any deposits either from the shareholders or public within the meaning of The Companies (Acceptance of Deposits) Rules, 1977 as amended.
Mr. G. Natarajan retires by rotation at the ensuing Annual General Meeting and being eligible, offers himself for re-appointment.
In Compliance with Section 149, 152 and other applicable provisions if any, of the Companies 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 five consecutive 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 member under Section 160 (1) of the Companies Act, 2013, and they are not subject to retire by rotation.
During the year, Mr. Rajeev Agarwal, Director resigned from the Board with effect from 15th May 2014.
PARTICULARS OF EMPLOYEES:
There are no employees covered by Section 217 (2A) of the Companies Act, 1956, read with Companies (particulars of employees) Rules, 1975.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 134(5) of the Companies Act, 2013, with respect to
Directors' Responsibility Statement, it is hereby confirmed that:
a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
b) the directors had 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 affairs of the company at the end of the financial year and of the loss of the company for that period;
c) the directors had 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;
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 financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.
f) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
Your Company is in compliance with the requirements and disclosures with respect to the Code of Corporate Governance as required under Clause 49 of the Listing Agreement entered into with the Stock Exchange. A report on Corporate Governance along with a certificate from 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, foreign exchange earnings and outgo, as required to be disclosed under Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 are provided as "Annexure 1" to this Report.
M/s. Sreedhar, Suresh & Rajagopalan, (Firm Regn. No. 003957S) Chartered Accountants, Chennai, the Statutory Auditors of the Company retire at the ensuing Annual General Meeting and to hold office from the conclusion of this Annual General Meeting until 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 their re-appointment, if made, would be within the prescribed limits under Section 139 (1) and 141 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 comments except that :
Point (vii) of the Annexure to the Auditors Report
The Company has since appointed Internal Auditor under Section 138 of the Companies Act, 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 the concerned department. A substantial level of taxes have been paid subsequently as on the date 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 date of 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 continued support even in this global recession. Further the Directors also wish to thank the customers and suppliers for their continued cooperation and support. The Directors further wish to place on record their appreciation of employees at all levels for their commitment and 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 the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 in 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 per annum and is in the verge of integrating it with 12 MW waste heat power generation facility at Haldia. The coke making facility through non recovery coke oven technology and generation of electricity using the waste heat from waste gases of the coke ovens would contribute towards reduction of emissions of clean gases to atmosphere when compared with by product recovery type coke making facility and production of the same power through a base technology of conventional coal based thermal power plant.
1. The coke making process when integrated with co - generation power plant facility qualifies as a Clean Development Mechanism under KYOTO PROTOCOL of United Nations framework.
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 of receiving 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
|(a) Expenditure in Foreign Currency (Accrual basis)|
|Interest on Claims Payable||12,44,316||2,36,79,740|
|(b) Value of Imports|
|(Cost Insurance Freight basis)|
|(c) Earnings in Foreign Exchange Export Sale||1,85,36,839|||
|Remittance of Dividends||Nil||Nil|
R Ramakrishnan , Director
Arvind Subramanian , Director
K U Sivadas , Director
M Saravanan , Company Secretary
Company Head Office / Quarters:
Cameo Corporate Services Ltd
Subramanian Building,1ST Floor No 1,Club House Road,Chennai - 600002