Description of state of companies affair
Statement of Company’s Affairs |
The financial performance of the Company as under: |
Particulars |
Amount ( in INR Lakhs) Standalone |
|
|
FY 21-22 |
FY 20-21 |
Revenue from operations |
37,032.68 |
41,144.78 |
Other Income |
1,768.15 |
1,605.84 |
Total Income |
38,800.83 |
42,750.62 |
Finance Cost |
1,899.72 |
1,935.53 |
Depreciation and amortization expense |
2,215.21 |
2,212.55 |
Total Expense |
37,249.63 |
40,669.65 |
Earnings before Exceptional item and tax |
1,551.20 |
2,103.03 |
Exceptional Item |
0 |
0 |
Profit/(Loss) before tax |
1,551.20 |
2,103.03 |
Current Tax |
536.95 |
671.08 |
Income Tax Adjustment related to earlier years |
-29.84 |
-12.85 |
Deferred Tax (Credit) / Charge |
-186.84 |
-766.83 |
Profit after Tax |
1,230.93 |
2,211.62 |
Net Comprehensive gain or loss |
10.79 |
22.85 |
Total comprehensive income for the year |
1,241.72 |
2,234.47 |
Earnings per share (Basic) (Rupees in actual) |
11.04 |
14.09 |
Earnings per share (Diluted) (Rupees in actual) |
11.04 |
14.09 |
b) Industry and Outlook: |
Piping Industry |
The India Metal Fabrication Market is anticipated to register a CAGR of greater than 5% during the forecast period. |
India's metal fabrication sector has suffered a significant blow on account of operational difficulties and poor demand due to COVID-19 and a slow recovery back to the pre-pandemic level of production is expected in the forecast period. According to the Business Standards, a severe dent in domestic demand for metals is anticipated and it will take until at least 2022-2023 to return to pre-pandemic levels. |
The Indian steel industry is considered one of the few bright spots in the global steel industry. The steel industry in the country revived from the demonetization and the goods and services tax (GST) reform and is growing at a rapid pace. |
The Indian metal fabrication market (henceforth, referred to as the market studied) is fragmented in nature, with the presence of a large number of small- and medium-sized companies and EPC companies. The rising demand for goods and services across various sectors in India, combined with the fact that global manufacturing companies focus to diversify their production by setting-up low-cost plants in countries, like China and India, is expected to drive the Indian manufacturing sector. |
Additionally, the Indian manufacturing sector is expected to register a growth of more than six times the current value, by 2025, to USD 1 trillion. This growth in the Indian manufacturing sector, in turn, is likely to increase the number of manufacturing facilities in the country, which is, thus, expected to drive the demand in the market studied. |
The Indian metal fabrication market is fragmented in nature, with the presence of a large number of small- and medium-sized companies and EPC companies. The majority of the large fabricators present in the market studied are majorly EPC companies, which handle end-to-end solutions for structural steel fabrication and process equipment fabrication services. In structural steel, fabricators in the market are focusing on expanding their product portfolio through pre-fabricated buildings and providing engineering solutions to their clients. The increasing construction sector and the preference for pre-engineered buildings are expected to grow. |
Biomass Industry |
The India biomass gasification market is expected to exhibit a CAGR of 3.9% during 2022-2027. Keeping in mind the uncertainties of COVID-19, we are continuously monitoring the influence of the pandemic. Biomass power is generally adopted to meet the thermal and electrical needs of various industries. Due to the rising environmental concerns among the masses, biomass is widely utilized as a preferred substitute for conventional fuels, such as diesel, coal and furnace oils. |
The market in India is primarily driven by the increasing demand for rural electrification. This is supported by the numerous initiatives undertaken by public and private agencies to provide electricity in rural areas across India. Investing in the installation of biomass gasification mini-grid systems that are expected to provide electricity and job opportunities to individuals living in rural areas. Along with this, the increasing investments by the Government of India (GoI) in the development of multifaceted biomass gasifier-based power plants that produce electricity with the help of locally available natural resources, including wood chips and cotton stalks, and agro-residues, are further creating a positive outlook for the market. Some of the other factors contributing to the market growth include rapid industrialization and extensive research and development (R&D) activities conducted by key players to introduce hybrid solar-biomass gasification systems that aim to improve reliability while reducing the overall cost. |
Heavy Metal Fabrication |
India added 275 MW wind power capacity in the first quarter (Q1) of 2022, a 30% quarter-over-quarter (QoQ) increase compared to 212 MW installed in Q4 2021, bringing the cumulative wind installations in the country to 40.4 GW, according to the recent data released by the Ministry of New and Renewable Energy(MNRE). |
Wind Installations: Tamil Nadu, Gujarat, Karnataka, and Maharashtra continued to be the primary markets for wind, accounting for 72% of the cumulative capacity. |
Gujarat led the way with nearly 202 MW of wind capacity added in Q1 2022. The state makes up 23% of the cumulative capacity with 9.2 GW of installations. Karnataka added 54 MW of capacity in the quarter and was ranked third with 5.1 GW of wind installations accounting for 13% of the total market share. Tamil Nadu, Gujarat, and Karnataka accounted for the 275 MW installed in Q1 2022. |
Previously, GWEC projected that India, which is currently the fourth-largest in terms of installed wind energy capacity, could save an extra 229 million metric tons of CO2 emissions over the lifetime of a wind farm while also creating more than a million green jobs. |
Details regarding energy conservation
The Company continued its efforts to utilise energy optimally at its manufacturing facilities and office locations in India. |
At Palwal, lighting systems were improved by optimising load and switching over to Light Emitting Diodes (LEDs) in workshops. |
Details regarding technology absorption
The Directors of your Company continuously making efforts to introduce world class technology into their business. On the same line following machines were introduced during the period under review. |
· Bevelling machines 105”- 1no, 16”- 2nos, 24”- 2nos. Now our Bevelling capacity enhance up to 105”. |
· Manual Plasma Cutting machines. |
· Hanger type blasting machine for fittings |
· EOT Cranes (5T- 3nos, 2T- 5nos, JIB Crane 3T-1no, 1T- 1no) |
· Furnace (HTF-05) upgradation for P-91 material |
· Hydro test capacity up to 85” & 22 mtr length wise |
· Addition of Welding Tractor technology |
· Flextec (5G) welding capacity up to SS pipe 64” |
Achievement |
· Develop Titanium Shop facility to handle jobs related to Exotic Material. |
· Heat Treatment capacity enhancement up to 56” Elbow with Quenching fork mechanism |
· Increase capacity of SAW Roll weld pipe 20” to 16” |
· Welding capacity development up to 96” dia |
· Addition of shop floor facility |
a) In P-1 33x23 mtr |
b) In P-2 47x14.5 mtr (2 bay) |
During the year Company has added three more features in its Hat: |
M-File :- allows you to finally understand how data and business processes flow across your enterprise, allowing you to finally conduct a risk-based approach to quality processes, approval history and audit trails mean that documents are always highly traceable in a way that meets your security expectations. The Companies must comply with laws and regulations as well as industry standards and internal policies. The ability to separate business-critical or confidential data from the big picture helps you handle sensitive information appropriately. Automated workflows facilitate regulatory compliance and automated audit trails. M-Files is also officially certified as an audit-proof document management system. |
CISCO VC Solution :- After Covid outbreak most of the Company communication shifted from physical meetings to virtual using various third party software. Your Company has also followed the trend and introduced CISCO VC Solution. The biggest advantage of CISCO video conferencing is the instant connection it provides. Essentially, you get the benefit of an in-person interaction regardless of the amount of people involved or where those people are located. |
E3D Software for Engineering Purpose :- As you know the manufacturers across industries racing to increase productivity, every new technology and process could mean another step ahead of the competition. To meet the market demand beforehand your Company has purchased E3D Software this will help Company to switch from 2D to 3D modelling. |
Details regarding foreign exchange earnings and outgoRefer note no. 34 of the Audited Standalone Financial. Disclosures in director’s responsibility statement
Pursuant to the provisions of Section 134(5) of the Companies Act, 2013, your Directors do hereby confirm that: |
a) In the preparation of the Annual Accounts for the year ended 31st March, 2022, the applicable Accounting Standards have been followed along with proper explanation relating to material departures; |
b) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2022 and of profit & loss of the Company for that period; |
c) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; |
d) The Directors have prepared the annual accounts on a going concern basis; and |
e) They have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively. |
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