rohini strips ltd Directors report

1996 ROHINI STRIPS LIMITED DIRECTORS REPORT Your Directors have pleasure in presenting the 5th Annual Report on the operations of the Company alognwith Audited Accounts for the year ended March 31, 1996. OPERATIONS During the year under review sales of your Company registered an impressive increase over the last year. The Company achieved a turnover of Rs. 2646.90 lacs as compared to Rs. 1515.95 lacs during previous year. The Gross Profit before interest, depreciation and taxation was Rs. 259.73 lacs as compared to Rs. 174.25 lacs during previous year. Your Company recorded a Net profit of Rs. 153.23 lacs during the year under review against Rs. 107.44 lacs during last year. As you would have noticed your company has performed well during the year under review and is confident of further accelerating the growth. There was 43% increase in profits over the previous year. Your Company would have achieved better results and projections as stated in the Prospectus but for the delay in the project implementation and sanction of working capital facilities to the Company. The working capital facilities have since been released and results of which will be reflected in current financial year. Your Directors have pleasure in informing you that the products of ERW Steel Tube and Pipe plant of the Company, which started commercial production from September 1995 are being very well received in the market. With the ERW steel Pipe and Tube plant on line the Management is confident that there will be substantial increase in the turnover and profits during coming years. Your company is negotiating for export of Tubes. EXPANSION-CUM-DIVERSIFICATION Your Directors have pleasure in informing that your Companys Rs. 16 crore expansion-cum-diversification Program is under implementation. The Skin Pass Mill project under Phase I to cater to higher grades of CR coil/sheet is under progress and shall be completed shortly. The mill is being setup with a total cost of Rs. 5.41 crore which has been part financed by IDBI to the tune of Rs. 3.50 crore. The Re-rolling Mill to be set up under Phase II shall produce various heavy structural items. This Phase shall cost Rs. 11 crore appx. Your Company has already taken effective steps for its successful launching. Further arrangement with reputed suppliers for the supply of plant and the equipment including major spares are also at final stage. This will give the company a benefit of high value additions on its existing products also. This Phase is proposed to be completed by September 1997. The company is negotiating products also. This Phase is proposed to be completed by September 1997. The company is negotiating with All India Financial Institution for part financing the project and the negotiations are at final stages. FUTURE OUTLOOK The Company has plans for setting up of a plant for manufacturing Steel Tubes and Pipes with nominal bore of 1/2" to 3" a continuous Galvanizing Line with a capacity of 40,00 TPA to produce Galvanized Plain/ Galvanized Corrugated (GP/GC) Sheets and coils. The products will mainly be for exports. This will not only increase the turnover but also give increased per unit realisation. The aim is to increase the same by value added production in small quantities at initial at ages. The Management is confidant that the Company would further consolidate its position in the years to come. FIXED DEPOSITS During the year the Company has not accepted any Public deposits. DIRECTORS Smt. Suman Agarwal, Director, retires by rotation arid being eligible offers herself for re-appointment. Sh. Brijlal Kshatriya, Ex-Managing Director of Bokaro Steel Plant of Steel Authority of India Ltd., who is having more than three decades of experience at various senior levels of SAIL, was appointed as an Additional Director on the Board of your Company on 6th May, 1996. Mr. Kshtriya will hold office upto the date of forthcoming Annual General Meeting and a notice under Section 257 of the Companies Act, 1956 has been received from a member proposing the appointment of Sh. Brijlal Kshtriya as a director at the forthcoming Annual General Meeting. Your directors recommend these appointment/re-appointment. AUDITORS M/s. Kailash Sushil & Associates, Chartered Accountants, Auditors of the Company hold office until the conclusion of the ensuing Annual General Meeting and are recommended for re-appointment. AUDITORS REPORT The observations made in the Auditors report are self explanatory and do not require further clarification. PERSONNEL The Directors wish to place on record their appreciation for the services rendered by the employees of the Company. It is gratifying to note that the industrial relations remained cordial and high morale of the employees has contributed towards the improved performance of the Company. PARTICULARS OF EMPLOYEES & DISCLOSURE OF INFORMATION Information as per Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 as amended is enclosed as per Annexure - A and forms part of this report. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNING AND OUTGO. Information under Section 217(1) (e) of the Companies Act, 1956 read with Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988 is given in the Annexure B and forms part of this report. ACKNOWLEDGMENTS The directors desire to record their sincere appreciation for the continued valuable assistance, co-operation and support received from the Central and State Government Authorities, Financial Institutions and the Banks. The Board also gratefully acknowledge the support and goodwill extended by the dealers, customers, suppliers and shareholders. ANNEXURE TO DIRECTORS REPORT Particulars required under the Companies (Disclosure of particulars in the report of Board of Directors) Rules, 1988. CONSERVATION OF ENERGY: 1. Energy conservation measures taken. Installation of capacitors Bank to improve power factor by virtue of which the Company has been receiving incentive from the State Electricity Board. 2. Additional Investments and proposals for reduction of consumption of energy. The efforts are being made to examine and implement fresh proposals for further conservation of energy. 3. Impact of above measures The energy conservation measures taken will result in lower energy cost and cost of production. FORM - A FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY A. POWER AND FUEL CONSUMPTION: 1995-96 1994-95 Electricity a) Purchased Unit (in 000 Kwh) 1409.62 999.57 Total Amount (Rs. in thousands) 5101.26 3071.70 Rate/Unit (Rs.) 3.62 3.07 b) Own Generation NIL NIL B. CONSUMPTION PER UNIT OF PRODUCTION: (CR STEEL STRIPS/COILS) 1995-96 1994-95 Electricity 140 Units/MT 195 Units/MT II. PARTICULARS AS PER FORM - B FORM - B FORM OF DISCLOSURE OF PARTICULARS WITH RESPECTS TO TECHNOLOGY ABSORPTION i) Research and Development NIL ii) Technology Absorption, Adaptation & Innovation NIL iii) Imported Technologies NIL III. FOREIGN EXCHANGE EARNINGS AND OUTGO NIL For and on behalf of the Board BABU LAL AGARWAL Chairman-cum-Managing Director Place : New Delhi Date : 24th June, 1996.