To the Members,
We are delighted to present the 13th annual report on our business and operations for the year ended March 31, 2014.


Financial Results of our operations:

( In )
PARTICULARS 2013-14 2012-13
Profit Before Depreciation and Tax 5,95,00,622 4,81,26,798
Less : Depreciation 2,39,15,011 1,54,69,810
Profit for the year before taxation 3,55,85,611 3,26,56,988
Provision for Taxation:
Current Year Tax 76,17,130 92,83,440
Deferred Tax 50,94,237 17,10,397
Profit after taxation 2,28,74,244 2,16,63,151
Add:Surplus brought forward from previous year 7,75,56,542 5,58,93,391
Balance carried to Balance Sheet 10,04,30,786 7,75,56,542

Issue of Equity Shares:
960000 equity shares of the Company were issued and allotted, of Riddhi Steel & Tube Private Limited to the equity shareholders on 29th July, 2013. As a result of this, the issued, subscribed and paid up capital of the Company has increased from Rs. 4,99,02,520/- to Rs. 5,95,02,520/-.

Review of our operations:
During the year under review, Our Company achieved Net sales turnover of Rs. 2,06,08,76,267/- compared to previous year figure of Rs. 1,79,44,02,995/-. The profit before depreciation and tax has increased to Rs. 5,95,00,622/- from Rs. 4,81,26,798/-. The net profit after tax has Increase to Rs. 2,28,74,244/- from Rs. 2,16,63,151/-. At the end of the year, Company’s free reserves stood at Rs. 10,04,30,786/- (Previous Year Rs. 7,75,56,542/-) and Earnings per Share (Basic and Diluted) stood at Rs. 4.06/- per share (Previous Year Rs. 4.34 /- per share).

Auditors and Their Report:
The Auditor’s Reports on the accounts of the Company for the accounting year 2013-14 is self explanatory and does not call for further explanations or comments that may be treated as adequate compliance of the provisions of section 217 of the Companies Act, 1956.

Statutory Auditors of the Company, M/S. C. P. Shah & Co., Chartered Accountants, Ahmedabad (M. No. 31239) will retire at the conclusion of the ensuing Annual General Meeting and being eligible, offers themselves for re-appointment for the year 2014-15. The Company has received a certificate from the auditors to the effect that their re-appointment if made, would be in accordance with the provisions of section 224(1B) of the Companies Act, 1956. The directors recommend the re-appointment of M/S. C. P. Shah & Co. and authority to Board to fix their remuneration.



Insurance:
The Company has taken adequate insurance cover for all movable and immovable assets for various types of risks.


Directors' Responsibility Statement:
In accordance with the provisions of section 217(2AA) of the Companies Act, 1956, and based on the representations received from the operating management, the directors hereby confirm that:

(a) The financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments, which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 2013 and guidelines issued by SEBI. There are no material departures from prescribed accounting standards in the adoption of these standards.

(b) The Board of Directors accepts responsibility for the integrity and objectivity of these financial statements. The accounting policies used in the preparation of financial statements have been consistently applied except as otherwise stated in the notes accompanying the respective tables. The estimates and judgments related to the financial statements have been made on a prudent and reasonable basis, so that the financial statements reflect in a true and fair manner the form and substance of transactions, and reasonably present our state of affairs and profits for the year.
(c) The Board of Directors has taken sufficient care to maintain adequate accounting records in accordance with the provisions of the Companies Act, 1956 to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

(d) The annual accounts of the company have been prepared on a going concern basis.


Appropriations:
(a) Dividend:
In Order to preserve liquidity, your directors do not recommend for payment of any dividend on equity shares for the year ended 31/03/2014.

(b) Fixed Deposits:
The company has accepted the deposit from the shareholders as well as from the friends & relatives of directors. There are no unclaimed or unpaid deposits and interest as on 31st March, 2014.

(c) Capital Expenditure:
During the year under review, the Company has incurred Rs. 11,57,70,649/- on Capital Expenditure for the business developments.

Particulars of Employees:
The particulars of employees as required by section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 as amended is not given as no employee is in receipt of remuneration of Rs. 60,00,000/- or more per annum or 5,00,000/- or more per month.

Conservation of Energy, Technology Absorption, Adaptation, Innovation:

A statement containing the information as per section 217 (1) (e) of the Companies Act, 1956 is not applicable to the company. During the year under review, there was no foreign exchange earnings and outgo.


a) Foreign Exchange earnings and outgo: Nil

b) Foreign exchange earned and used: Nil

Secretarial Compliance Certificate:
A Secretarial Compliance Certificate pursuant section 383(a) of the Companies Act, 1956 is required.

Note on accounts:
The notes forming part of the accounts are self-explanatory and therefore, do not call for any further comments.

Industrial relations:
Relations with the company’s employees continue to be cordial. The company has a good track record of harmonious relations with employees.

Acknowledgements:
We thank our customers, financial Institutions, bankers, Collaborators, Central and State Government Departments and Local Authorities for their continued support during the year. We place on record our appreciation of the contribution made by our employees at all levels. Our consistent growth was made possible by their hard work, solidarity, cooperation and support.


Registered Office: For and on behalf of the Board of Directors
83-84,
Village Kamod,
Piplaj-Pirana Road,
Aslali,
Ahmedabad- 382 405, Rajesh R. Mittal
Gujarat, India. Director
05th September, 2014

A statement containing the information as per section 217 (1) (e) of the Companies Act, 1956 is not applicable to the company.

A statement containing the information as per section 217 (1) (e) of the Companies Act, 1956 is not applicable to the company.

During the year under review, there was no foreign exchange earnings and outgo.

The particulars of employees as required by section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 as amended is not given as no employee is in receipt of remuneration of Rs. 60,00,000/- or more per annum or 5,00,000/- or more per month.

In accordance with the provisions of section 217(2AA) of the Companies Act, 1956, and based on the representations received from the operating management, the directors hereby confirm that: (a) The financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments, which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 2013 and guidelines issued by SEBI. There are no material departures from prescribed accounting standards in the adoption of these standards. (b) The Board of Directors accepts responsibility for the integrity and objectivity of these financial statements. The accounting policies used in the preparation of financial statements have been consistently applied except as otherwise stated in the notes accompanying the respective tables. The estimates and judgments related to the financial statements have been made on a prudent and reasonable basis, so that the financial statements reflect in a true and fair manner the form and substance of transactions, and reasonably present our state of affairs and profits for the year. (c) The Board of Directors has taken sufficient care to maintain adequate accounting records in accordance with the provisions of the Companies Act, 1956 to safeguard the assets of the Company and to prevent and detect fraud and other irregularities. (d) The annual accounts of the company have been prepared on a going concern basis.