Overview
As on December 15th, 2020, your company had taken on lease the Land, Building and Machinery of Arcee Ispat Udyog Private Limited, a unit for manufacturing of Black Steel tubes & pipes, for a period of 10 years. Company had started its Commercial production of Black Steel tubes & pipes on January 14th, 2021. After this, Company was working in two segment:- 1. PVC pipe 2. Steel pipe. But due to continuous loss in the steel pipe manufacturing, On 22nd May, 2023, Company had cancelled the Lease of Land, Building and Machinery with Arcee Ispat Udyog Private Limited.
The company is suffering losses since last many years. In this era of fast changing technology, Plant and Machinery of PVC unit has become outdated/obsolete having low efficiency. The company has also tried to establish itself in manufacturing of MS Pipes and also capitalize amount in Plant and Machinery. But could not get success due to longer working capital cycle in steel pipe industry. Company has not been able to get working capital or term loan from bank and has continue manufacturing with the help of raw material supplier via longer payment period allowed by them. Due to continue losses payment of raw material supplier could not be made. Now to avoid legal action by them, sale to plant and machinery is inevitable for payment to creditors. Moreover, till date company could not be able to recover money from outstanding advances to supplier, security deposit and earnest money deposited with Government Department. There was no production during the year 2024-2025.Still there is no production in the factory. The board is considering various sources/ways to raise funds for new technology-based plant and machinery for PVC Pipe manufacturing.
PRODUCT SEGMENT WISE SHARE IN TURNOVER FOR THE LAST TWO YEARS
The Revenue from operations of the Company constitutes of: -
The Turnover of the PVC Pipe segment is Rs. Nil as against Rs. 15.55 Lacs during the previous year.
The Turnover of the Steel Pipe segment is Rs. 15.25 Lacs as against Rs. 108.56 Lacs during the previous year.
RISK MANAGEMENT
Company continuously monitors the risks associated with its business and operations including timely identification of new risks, if any, and plans to mitigate risks so as to avoid any adverse impact on the Companys operations.
HUMAN RESOURCES / INDUSTRIAL RELATIONS
Human Resources are one of the most important ingredients to fuel future growth and progress of the organization. The Company therefore strives to align human resource policy and initiatives to meet business plans. Companys focus on promoting well being of its employees, providing safe and congenial work environment continues. Training of employees to maintain high level of motivation is an ongoing process.
Career development opportunities are provided at all levels and across all functions. lndustrial relations at all the units remained cordial during the year.
INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY
The internal control systems for safeguarding and protecting assets of the Company against loss from unauthorized use or disposition are in place.
Regular internal audits, review by management and documented policies, guidelines and procedures supplement the internal controls which are designed to ensure that financial and other records are reliable for preparing financial information and other data and for maintaining accountability of assets.
FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
The Company has nil production of PVC Pipe and Steel Pipes while the Company has sold Nil PVC Pipe and 40 MT of Steel Pipe as compared to 8 MT of PVC Pipe and 126 MT of Steel Pipe in the previous financial year. The company has stopped the production completely and in the process of to disposes of Plant and Machinery to pay outstanding dues to the supplier of raw material
The company has achieved turnover of Rs. 15.25 Lacs as compared to previous year turnover of Rs. 107 Lacs. During the year the company has Loss after tax of Rs. 13.37 Lacs as compare to last year Loss after tax of Rs. 72.50 Lacs. The reserve and surplus stood to Rs. (162.18) Lacs. The earnings per share is Rs. (0.26).
INDUSTRIAL RELATIONS AND RESOURCE MANAGEMENT:
The Company during the previous year continued its record of good industrial relations with its employees. During the year various initiatives had been taken to improve the performance and productivity levels in various departments of the Company. The Company conducts training sessions on various topics ranging from safety, productivity, handling of hazardous products etc. that help to train employees to overcome operational constraints. The Company has its in house technical centre in the plant to train the new recruits before their placement that helps in optimum utilization of resources as well as maintaining quality standards. It also indulges into and implements various HR initiatives and activities including employee welfare, special rewards, performance review system and various employee motivation activities.
CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis describing Companys objectives, estimates, expectations, or projections may constitute "forward looking statements", within the meaning of applicable laws and regulations. Actual results may differ materially from those either expressed or implied in the statements. Important factors that could make a difference to Companys operations include economic conditions affecting demand/ supply and price conditions in the domestic and international markets, changes in the Government regulations, tax laws / other statutes and other incidental factors.
FOR AND ON BEHALF OF THE BOARD
Shruti Gupta Akshat Gupta (Whole Time Director) (Director) DIN 01742368 DIN 00284927
Date : 13th June, 2025 |
CIN : L29120HR1992PLC031681 |
Phone : 98120-20111, 98120-40111 |
Email : arceeind@rediffmail.com |
Website: www.arceeindustries.in |
REGISTERED OFFICE : |
7th K.M. Barwala Road, |
Talwandi Rana, Hisar 125 001 |
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
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+91 9892691696
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