pittsburgh iron steels ltd Directors report

PITTSBURGH IRON AND STEELS LIMITED ANNUAL REPORT 2007-2008 DIRECTORS REPORT The Board of Directors is pleased to present the 14th Annual Report of the Company together with the Audited Accounts for the year ended 30th September, 2008; Rs.in Lacs Particulars 2007 - 2008 2006 - 2007 (01.10.2007 (01.04.2006 to to 30.09.2008 30.09.2007 Sales/Income 0.50 600.72 Gross Profit/(Loss) before Depreciation and Financial Charges 10.33 1.82 Less : A. Financial Charges 0.76 0.37 B. Depreciation 0.77 0.00 Net profit/(Loss) before Tax and prior period expenditure (8.80) 1.45 Net profit/(Loss) after tax (10.03) 1.45 OPERATIONS: The Company did not operate this year due to shifting of Registered Office from Chennai to Bangalore and also require to comply a lot of statutory formalities to start the business and hope the Company may do business activities this current year. The shares are suspended for trading on 28.12.2007 and we are tryingto revoke the,suspension of trading and hope BSE will recall the suspension of trade very soon. DIVIDEND: In view of Loss incurred during the year, your. Directors do not recommend any dividend for the financial year ended 30th September, 2008. DEPOSITS: Your Company has not accepted any deposits from the public during the year under review. DIRECTORS: Mr. G. Vijay Kumar, Director of your Company retires by rotation at the ensuing Annual General Meeting and is eligible for reappointment. None of the Directors of the Company are disqualified U/s. 274(1)(g) of the Companies Act, 1956. DIRECTORS RESPONSIBILITY STATEMENT U/S. 217 (2AA) OF THE (COMPANIES AMENDMENT).ACT, 2000, INDICATING THEREIN; i) That in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures; ii) That the directors had selected such accounting policies and applied them consistently and made judgmentsand 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 profit or loss of the company for that period; iii) That 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; iv) That the directors had prepared the annual accounts on a going concern- basis . PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO: Particulars of Conservation of Energy, Technology Absorption & Foreign Exchange Earnings and Outgo As required under Section 217(1)(e) of The companies Act, 1956, read with Rule 2 of the Companies (Disclosure of Particulars in the report of the Board of Directors) Rule 1988, the particulars relating to Conservation of Energy, Technology Absorption. and,Foreign Exchange Earnings arid Outgo are given, in Annexure - 1, which forms part of the Directors Report. AUDITORS: M/s T.N. Pratap & Associates, Chartered Accountants, Bangalore, Auditors of the Company retire at the conclusion of this Annual General Meeting and are eligible for re appointment. As required under-section 224(1-.B) of the Companies Act, 1956. CORPORATE GOVERNANCE: The Company has compiled with mandatory requirements of Corporate Governance as, prescribed in the Listing Agreement with the Stock Exchanges to the extent possible, taking into account, the operational requirements, financial position of the company etc. A separate report on Corporate Governance along with the Auditors Certificate on its Compliance is attached as Annexure to this report. STATEMENT PURSUANT TO LISTING AGREEMENT: The Companys Shares are listed with the Bombay Stock Exchange Limited, Madras Stock Exchange, Limited and Coimbatore Stock Exchange Limited. The Listing Fees have been paid up to date. ANNEXURE - 1: 1. CONSERVATION OF ENERGY: All possible measures have been taken by The Company for the conservation of energy in respect of all Manufacturing Process. FROM - A: Particulars of Power and Fuel Consumption: A. POWER AND FUEL CONSUMPTION: a. For the Financial Year 2006-2007 NIL b. For the Financial Year 2007-2008 NIL II. TECHONOLOGY ABSORPTION, RESEARCH AND DEVELOPMENT: Your company strives for continuous technology development and in house Research and Development in all its manufacturing processes. III. FOREIGN EXCHANGE EARNING & OUT GO: Particulars 2007-2008 2006-2007 (01.10.2007 to (01.04.2006 to 30.09.2008) 30.09.2007) EARNINGS: Sale (CIF) NIL USD 1,500,002 INR 59,715,100 OUTGO: Purchases (CIF) NIL USD 1,492,498 INR 59,416,340 ACKNOWLEDGEMENT: Your Directors place on record the valuable services & cooperation extended by the Companys Shareholders, employees, Bankers and other agencies, associated with the company. The Board looks forward to their continued support in all its future endeavors. Your Directors also place on record the co-operation extended by the State and Union Government and the various Statutory Bodies. By order of the Board of Directors for PITTSBURGH IRON AND STEELS LIMITED Place : Bangalore G. VIJAY KUMAR D. MADAN MOHAN Date : November 29, 2008 Managing Director Director MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL PERFORMANCE: The Company did not operate this year. Therefore, Company suffered loss of Rs. 8.03 Lacs. FUTURE OUTLOOK: The Company has changed its core business from textiles to steel, the Company is on the lookout for acquisition of steel units. The Company is also taking various steps and measures in order to facilitate the Companys proposed activities in the steel sector. OPPORTUNITIES, THREATS AND RISKS: Due to Globally recession in all industry including steel shall affect the demand of steel products and raw materials Iron ore etc. This recession will continue further. However, Govt. is taking strong steps for coming out from like recession. INTERNAL CONTROL SYSTEMS: Suitable control measure has been put in place and periodic checks are done to ensure norms are followed. The Company has adequate internal control procedures commensurate with the size of the company and the nature of its business. HUMAN RESOURCES & EMPLOYEES: The board wishes to place on record its appreciation for the services rendered by the employees for the growth of the company. The Company has maintained cordial relationship with its employees-throughout the year. None of the employees are in receipt of remuneration in excess of the limit specified in clause (a) of subsection 2A of section 217 of the Companies Act, 1956.