Annual-Report-2011-12.Pdf
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CONTENTS Corporate Information 2 Notice of the Annual General Meeting 3 Directors' Report 16 Management Discussion & Analysis 20 Risk Management 24 Corporate Governance Report 26 Auditors' Certificate on Corporate Governance 37 Auditors' Report 39 Balance Sheet 42 Profit and Loss Account 43 Cash Flow Statement 44 Schedules / Notes 45 1 CORPORATE INFORMATION CHAIRMAN Mr. Binod Khaitan DIRECTORS Mr. Umang Kejriwal Mr. Naresh Pachisia Mr. Lalit Kumar Singhi Mr. Sunil V Diwakar (Nominee Director) Mr. Lawrence M Roy (Alternate Director to Mr. Sunil V Diwakar) WHOLETIME DIRECTOR Mr. Nigam Chander Bahl COMPANY SECRETARY Mr. Vikram Saraogi STATUTORY AUDITORS M/s. B Chhawchharia & Co., Chartered Accountants BANKERS State Bank of India (Facility Agent) Allahabad Bank LIC of India Andhra Bank Oriental Bank of Commerce Bank of Baroda Punjab & Sind Bank Bank of India Punjab National Bank Bank of Maharashtra State Bank of Hyderabad Canara Bank State Bank of Mysore Central Bank of India State Bank of Patiala Corporation Bank State Bank of Travancore Dena Bank Syndicate Bank HUDCO The J&K Bank Ltd ICICI Bank Ltd UCO Bank IL&FS Financial Services Ltd Union Bank of India Indian Bank United Bank of India Indian Overseas Bank Vijaya Bank REGISTERED OFFICE 801, Uma Shanti Apartments, Kanke Road, Ranchi - 834 008 Jharkhand. PROJECT SITE Village Siyaljori, P.O - Jogidih, P.S - Chandankyari, Dist - Bokaro, Pin - 828 303, Jharkhand. HEAD OFFICE G K Tower, 2nd & 3rd Floor, 19, Camac Street, Kolkata - 700 017, West Bengal 2 Notice Notice is hereby given that the Fifth Annual General Meeting of the Company will be held at Topaz Banquet Hall, Hotel Landmark, Jatin Chandra Road, Lalpur, Ranchi - 834001 on Tuesday, the 7th Day of August 2012, at 12:30 P.M. to transact the following business: Ordinary Business: 1. To receive, consider and adopt the Audited Balance Sheet as at March 31, 2012 and the Profit & Loss Account and Cash Flow Statement for the year ended on that date together with the Reports of the Directors and Auditors thereon. 2. To appoint a Director in place of Mr Naresh Pachisia who retires by rotation and is eligible for re-appointment. 3. To appoint a Director in place of Mr Nigam Chander Bahl who retires by rotation and is eligible for re- appointment. 4. To appoint the Statutory Auditors of the Company and to fix their remuneration. Special Business: Item No. 5 To consider and if thought fit, to pass, with or without modification(s) the following resolution as an Ordinary Resolution: “RESOLVED THAT in accordance with the provisions of Section 255 and other applicable provisions, if any, of the Companies Act, 1956 or any statutory modifications or re-enactment thereof for the time being in force and the Articles of Association of the Company, Mr. Lalit Kumar Singhi, who was appointed as an Additional Independent Director (Non Executive) of the Company pursuant to the provisions of Section 260 of the Companies Act, 1956 and who holds office up to the date of this Annual General Meeting and in respect of whom the Company has received a notice under Section 257 of the Companies Act, 1956 from a member, in writing, proposing his candidature for the office of Director, be and is hereby appointed as a Non Executive Independent Director of the Company liable to retire by rotation.” Item no. 6 Issue of fresh equity shares of the Company, through preferential allotment under section 81(1A) of the Companies Act, 1956. To consider and if thought fit, to pass, with or without modification(s) the following resolution as Special Resolution: “RESOLVED THAT pursuant to Section 81(1A) and all other applicable provisions of the Companies Act, 1956 (including any statutory modification or re-enactment thereof, for the time being in force), the provisions of the Foreign Exchange Management Act, 1999, as amended, and rules and regulations made there under, including the Foreign Exchange Management (Transfer or Issue of Securities by a Person Resident outside India) Regulations, 2000, if applicable, and any other applicable law or laws, rules and regulations (including any amendment thereto or re-enactment thereof for the time being in force) and enabling provisions of the Memorandum and Articles of Association of the Company and the applicable provisions of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, (hereinafter referred to as the “SEBI Regulations”) and the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations, 2011 (hereinafter referred to as the “Takeover Code”) and the Listing Agreement, including amendments thereto entered into by the Company with the Stock Exchanges where the shares of the Company are listed and subject to any approval, consent, permission and/or sanction of the appropriate authorities (hereinafter collectively referred to as the “Appropriate Authorities”) and subject to such conditions as may be prescribed by any of them while granting any such approval, consent, permission and/or sanction (hereinafter referred to as the “Requisite Approvals”), and which may be agreed to by the Board of Directors of the Company (hereinafter referred to as the “Board” which expression shall be deemed to include any Committee), the Board be and is hereby authorized to create, offer, issue and allot, from time to time in one or more tranches, up to 15.20 crores (fifteen crores twenty lacs) equity shares (hereinafter referred to as 'Equity Shares') of Rs 10/- each or such convertible securities which are convertible into 15.20 crores (fifteen crores twenty lacs) equity shares of Rs 10/- each or such non-convertible securities in such denominations that do not exceed Rs. 152.00 crores (Rupees one hundred and fifty two crores only) to be subscribed by the promoters / promoters group of the Company as Preferential Issue, as detailed in the explanatory statement to 3 this resolution, at a price not less than the price computed with respect to the Relevant Date, as prescribed under Chapter VII of the SEBI Regulations, in one or more tranches, under a preferential issue through offer letter and/or circular and/or information memorandum and/or such other documents/writings, in such a manner and on such terms and conditions as may be determined by the Board in terms of Chapter VII of the SEBI Regulations.” “RESOLVED FURTHER THAT the Relevant Date shall be determined in terms of regulation 71 of Chapter VII the SEBI Regulations and shall be the date thirty days prior to the date on which the meeting of shareholders is held to consider the Preferential Issue i.e. July 7, 2012.” “RESOLVED FURTHER THAT the Board be and is hereby authorized to create, issue and allot up to 15.20 crores (fifteen crores twenty lacs) Equity Shares and such Equity Shares allotted shall rank pari passu in all respects with the then existing equity shares of the Company.” “RESOLVED FURTHER THAT for the purpose of giving effect to the above, the Board be and is hereby authorized on behalf of the Company to take all actions and do all such deeds, matters and things including to vary , modify or alter any of the terms or conditions including the size of such issue as it may, in its absolute discretion, deem necessary, desirable or expedient to the issue or allotment of the aforesaid Equity Shares and listing thereof with the Stock Exchanges as appropriate and to resolve and settle all questions and difficulties that may arise in the proposed issue, offer and allotment of any of the said Equity Shares , utilization of the issue proceeds and to do all acts, deeds and things in connection therewith and incidental thereto as the Board in its absolute discretion deem fit, without being required to seek any further consent or approval of the Members or otherwise and that they shall be deemed to have given their approval thereto expressly by the authority of this resolution.” “RESOLVED FURTHER THAT the Board be and is hereby authorized to delegate all or any of the powers herein conferred to a committee comprising of at least three directors to give effect to the aforesaid resolution.” Item no. 7 Raising of additional long term funds through the issue of fresh capital by way of equity shares or other convertible / non convertible securities of the Company. To consider and if thought fit, to pass, with or without modification(s) the following resolution as Special Resolution: “RESOLVED THAT pursuant to Section 81 (1A) and all other applicable provisions, if any, of the Companies Act, 1956, Foreign Exchange Management Act, 1999 (“FEMA”), the Issue of Foreign Currency Convertible Bonds (“FCCB”) and Ordinary Shares (through Depository Receipt Mechanism) Scheme, 1993 (including any statutory modification or re-enactment thereof, for the time being in force), and the applicable Rules, Guidelines, Regulations, Notifications and Circulars, if any, of the Securities and Exchanges Board of India (“SEBI”), Reserve Bank of India (“RBI”), the Stock Exchanges where the securities of the Company are listed (including provisions of the listing agreement with them) and any other concerned and relevant authorities, and other applicable laws if any, and the relevant provisions of the Memorandum and the Articles of Association of the Company and subject to such approval(s), consent(s), permission(s) and / or sanction(s) of the Government of India (“GOI“), SEBI, RBI and any other concerned and relevant authorities, institutions or Bodies whether in India or abroad (hereinafter collectively referred to as