A PAckAge of solutions - :: MIDFIELD INDUSTRIES LTD. :: Discussion and Analysis 28 Corporate...
Transcript of A PAckAge of solutions - :: MIDFIELD INDUSTRIES LTD. :: Discussion and Analysis 28 Corporate...
Forward Looking Statement
In this Annual Report, we have disclosed forward-looking information to enable investors to comprehend
our prospects and take investment decisions. This report and other statements – written and oral – that we
periodically make contain forward-looking statements that set out anticipated results based on the management’s
plans and assumptions. We have tried wherever possible to identify such statements by using words such
as ‘anticipate’, ‘estimate’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, and words of similar substance
in connection with any discussion of future performance. We cannot guarantee that these forward-looking
statements will be realized, although we believe we have been prudent in assumptions. The achievements of
results are subject to risks, uncertainties, and even inaccurate assumptions. Should known or unknown risks or
uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially
from those anticipated, estimated, or projected. Readers should keep this in mind. We undertake no obligation
to publicly update any forward-looking statements, whether as a result of new information, future events or
otherwise.
contentsStatutory Reports
Directors’ Report 24
28Management Discussion and Analysis
36Corporate Governance Report
Company OverviewMidfield at a glance 02
06Milestones
08Financial highlights
22Board of Directors
Strategic Review
10MD’s review
12A Package of Solutions
46Financial Statements
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At Midfield Industries, we have witnessed multi-fold growth, offering an interesting range of industrial packaging solutions and services.
We are engaged in the design and development of protective
packaging systems for products that undergo all means of
transport. We provide best packaging value to the customers
and render value-added services with technical, engineering
and maintenance resources.
Midfield ensures cost optimisation for clients, improves arrival
condition of products, makes packaging operations more
productive, provides on-site sales and engineering assistance
with supervised installation and imparts maintenance and
safety training.
We have streamlined business operations and are seeking
growth opportunities aggressively. Midfield is also focused on
innovation to ensure we continue to offer great products and
services to stay at the forefront of market trends.
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
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Packaging wide-ranging innovations
Established in 1990, Midfield Industries Limited has emerged as one of the leading and
niche players in the organised segment of the Indian packaging industry, with a wide
range of packaging products marketed and distributed nationally and internationally.
These products are the result of its deep market insight and ceaseless innovations.
Accredited by ISO certifications, we enjoy 18 years of proven track record in providing
end-to-end packaging solutions, catering to 500 clients globally.
A specialised player in steel strapping in 1993
One stop shop packaging solutions in 2011
Global Visibility Midfield Industries is headquartered at Hyderabad
The organisation has installed plants at Hyderabad, Thane (Mumbai), Uttaranchal and upcoming plants will be built in
Orissa and the Middle East
The products are exported to USA, UK, Canada, South Africa, Australia, and the Middle East
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Business operations
We provide diversified and customised packaging solutions that extend long-term value for the customers. We add value to the packaging services with our technical and engineering expertise and this customer-centric approach ensure high reliability and profitability for our clients.
Midfield Industries Limited
Manufactured products
High Tensile Steel Strapping
Seals & L-Plates
Angle Boards
Collated Nails
PET Straps
Outsourced products
Tools & Spares
Stretch Films
Volatile Corrosion Inhibitor
(VCI) Paper
Operational contract
packaging
Midfield Industries end-to end
packaging solutions (men,
materials and equipment)
enable customers to focus on
the core business.
Value-added services After sales services
Turnkey packaging contracts
Packaging Equipment Maintenance
Study existing packaging and recommend the
best system
Technical and engineering resources for ongoing
packaging needs
Designing optimum protective packaging
systems
Company overview Strategic review Financial sectionStatutory reports
Midfield at a glance
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
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Manufacturing facilities
Midfield Industries has manufacturing facilities at Hyderabad, Roorkee (Uttaranchal) and Thane (Maharashtra). The recently installed manufacturing plant at Vasurikhurd, District Thane (Maharashtra) caters to western India, and is the export hub of the organisation.
HydErAbAdProducts Installed capacity in
2010-11Steel strapping 12,000 MT annually
Angle boards 75 lakhs meters annually
Seals 2,50,00,000 numbers
annually
Collated nails 8,40,000 coils annually
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Products Installed capacity in 2010-11
Angle boards 25 lakhs meters annually
Products Installed capacity in 2010-11
Steel strapping 6,000 MT annually
Critical for diverse sectors
We provide a wide array of packaging solutions, which enjoy applications across diverse industries. Such a strategy creates diverse revenue streams, enhances brand visibility and de-risks the business model. The result is sustainable and profitable growth. The Company has wide customer base and serving various Industrial segments like Steel, Aluminum, Copper, Glass, Paper, Jute, Refractories, Automobile, Battery and White goods.
rOOrkEE (Uttaranchal)
VASurIkHurd, dISTrIcT THAnE (Maharashtra)
Company overview Strategic review Financial sectionStatutory reports
Midfield at a glance
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
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A decade of consistent growth
1990 Incorporation of the organisation as Midfield Steels Private Ltd.
1993Commenced production of low tensile steel strapping with a capacity of
3600 MTPA in Hyderabad
1998Initiated the production of seals and L-plates with a capacity of 25 million
pieces a year
Mr. Madhu Mohan Reddy was appointed as the Managing Director
2000 Increased the capacity from 3,600 MTPA to 4,800 MTPA
Established a heat treatment plant with 3,600 MTPA capacity to facilitate the
processing of low-tensile strapping to high-tensile strapping
2001 Commenced the export business by shipping the consignment to Sri Lanka
2002Began the new business line of trading in VCI Paper and diversified the
scope of business with operational contracts
2005 Augmented the capacity of low-tensile steel strapping to 12,000 MTPA
2006
Instituted the production of angle boards and collated nails with a capacity
of 2.5 million metres a year and 1,20,000 coils annually respectively
Name of the Company was changed to Midfield Industries Limited and
became a Public Limited Company
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2007
Increased the capacity of collated nails to 4,20,000 coils annually
A new plant was commenced at Roorkee, Uttaranchal to produce angle
boards that has a capacity of 25 lakhs meters annually
The capacity of the Hyderabad plant was increased to manufacture
5 million meters annually
2008Increased the cumulative capacity of angle boards to 10 million meters
annually
2009The capacity of heat treatment plant was increased to 12,000 MTPA to
process low tensile steel strapping to high tensile steel strapping
2010Installed a plant at Thane (Maharashtra) with a capacity of 6,000 MTPA
to manufacture steel strapping
Customer satisfaction To exceed customer expectations for packaging value
and service
To build and maintain customer relationships and ensure
continued satisfaction
Commitment to excellence To deliver excellent quality packaging products and
services.
Teamwork To inculcate strong team work within the organisation,
maintain team spirit with customer.
Integrity To consistently demonstrate principled and ethical
judgment and practice the highest standards of social
conduct
Continuous improvement To dedicate ourselves for improvement on a continuous
basis, with new technologies and innovations
Greener tomorrow Commitment to eco-friendly practices in operations to
conserve the environment.
Values
Company overview Strategic review Financial sectionStatutory reports
Milestones
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
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Escalating numbers. Proven competence.
Sales Growth
(` in lakhs)
06-07 07-08 08-09 09-10 10-11
5325.66750.9
8347.19051.4
13225.7
cAGr 19.95%
Profit Before Tax (PBT)
(` in lakhs)
06-07 07-08 08-09 09-10 10-11
379.9
641.7819.9
1257.6
1879.1
cAGr 37.67%
Profit After Tax (PAT)
(` in lakhs)
06-07 07-08 08-09 09-10 10-11
245.9420.5
534.5
823.8
1255.7
cAGr 38.56%
EBITDA
(` in lakhs)
06-07 07-08 08-09 09-10 10-11
724.1
1073.1
1907.4
2661.2
cAGr 29.74%
1514.4
9
NET PROFIT MARGIN
(%)
06-07 07-08 08-09 09-10 10-11
4.61
6.22
9.089.47
6.39
EPS
(`)
06-07 07-08 08-09 09-10 10-11
3.58
5.21
9.909.79
6.42
EBITDA MARGIN
(%)
06-07 07-08 08-09 09-10 10-11
13.6
15.9
21.020.1
18.1
Company overview Strategic review Financial sectionStatutory reports
Financial highlights
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
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Dear Shareholders
Most of you must be aware that Midfield Industries has faced multiple challenges to reach where we are today. Our firm conviction in our capabilities and the increasing market potential has enabled us to sustain profitable growth in a rapidly developing economy.
It does not need to be re-emphasised that the Indian
economy has maintained a steady pace of GDP
growth for the last three to four years, setting into
motion a virtuous cycle of growth across all industries.
However, the present ecosystem of persistent inflation
and policy slowdown may dent economic growth.
The recent global turbulence (especially in the US and
the Eurozone) can also have a short-term moderating
influence on our economic growth. The long-term
prospects are however bright, and India may well
surpass others as the fastest growing economy in a
few years from now.
From CMD’s Desk
Indian economy has maintained a steady pace of GDP growth for the last three to four years, setting into motion a virtuous cycle of growth across all industries.
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This is the broad macroeconomic context in which we
have to evaluate our industry. The global packaging
industry today is estimated to be around $500 billion,
growing at a CAGR of 3.1%. The Indian packaging
industry contributes 3% to the global packaging market.
The key reasons for this trend include strong growth in
emerging markets Due to easy availability of raw materials
and low manufacturing costs, India is fast emerging as a
preferred hub for the packaging industry.
We were optimistic of growth in a liberalised economy and
that optimism encouraged us to invest around ` 2 crores
to commence the existing Hyderabad facility. We entered
the highly fragmented Indian packaging industry by
reducing the price of our offerings, so that we can acquire
clients and thus in five years following inception we had a
portfolio of 350 clients.
Today, Midfield Industries is one of the few organised
players in the highly fragmented Indian packaging
industry with a vision to drive multi-fold growth,
adding various packaging products & systems, global
competence, superior products and services. During
2010-11, our total revenue increased 46%, while EBIDTA
and PAT increased 20.1 and 9.47%, respectively. The
improved performance is the natural consequence of
our increasing business operation owing to capacity
expansions at multiple locations within India. Besides, we
are also focusing on exports to enhance global visibility.
We are continuously enriching our product portfolio to
cater to a widening fraternity of clients. A new plant is
being built at Rourkela that has 6,000 tons capacity for
steel strapping. We will be able to cater to the steel belt in
the eastern hub of the country..
One of the most valued offerings by Midfield Industries
is customised packaging solutions for our clients. We
have also forayed into the manufacture of polyester
strapping, PP strapping, VCI paper and stretch films. The
in-house production capabilities of a range of packaging
consumables would help arrest production cost and
ensure enhanced quality. With capacity enhancement,
enriched offerings and expansion of operational
contracts, Midfield Industries is poised to scale new
heights and emerge as one of the important players in the
national and international packaging industry.
Our commitment towards customer integrity and product
excellence, together with deep sensitivity towards
environment protection and ethical corporate governance
remain steadfast. I thank all of you for your unstinted
support and guidance, without which Midfield would
never be what it is today. You have made us a powerful
industry player to reckon with. We will continue to reward
your faith through our efforts.
Warm Regards,
M. Madhu Mohan Reddy Chairman and Managing Director
With capacity enhancement, enriched offerings and expansion of operational contracts, Midfield Industries is poised to scale new heights and emerge as one of the important players in the national and international packaging industry.
Company overview Strategic review Financial sectionStatutory reports
MD’s review
Our innovative packaging solutions reduce costs for clients, eliminate the wastage of materials and minimise in-transit damage. Midfield’s end-to-end operational contracts enhance reliability, reinforce client profitability and ensure complete peace of mind for clients.
Midfield Industries A total packaging solutions provider
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
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High Tensile Steel Strapping, Midfield Industries’ flagship product, is used to ensure that the material is strapped well and it does not shift during transit.
Seals & L-Plates: Seals are used to ensure sealing of both ends of tensioned strap in the strapping process. L plates are used to prevent edge damages.
Advantages Used for heavy-duty packaging
Excellent shock resistance
Resists dust and chemicals
Weather resistant
Brands Supreme and Mega Supreme
Current capacity Midfield Industries has currently installed an annual
capacity of 18, 000 MTPA. Steel strapping has
contributed 65.21% of the total revenue in 2010-11.
Advantages Facilitates products shipment
Prevents pilferage
Safeguards damage of the edge of products
Current capacityWe have an installed 2.50 crores (numbers) per annum
capacity
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Angle Boards are used to prevent any damage to the edges of the product during transit.
Collated Nails are the largest consumables in the packaging industry today.
Advantages Effective tension maintenance
Prevents sabotage
Current capacity Midfield Industries has an installed capacity of 100 lakhs
meters per annum
FunctionCollated Nails are used for uniformly fastening products,
while packaging. These are used with pneumatic nailers.
Advantages Large scale packaging
Mechanised nailing
Reliable clasp
CapacityMidfield Industries has an installed capacity of 8.4 lakhs
nail coils annually
Company overview Strategic review Financial sectionStatutory reports
A Package of Solutions
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
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Outsourced products
Tools & SparesWe cater to the light and heavy industries with an enormous range of manual, pneumatic and seal-less packaging tools.
Manual tools The manual tools are sourced from Midwest Industrial Packaging Ltd (USA). We provide after sales service for the tools and
spares purchased.
Sealers are primarily used to fasten the steel strap and hold together the strap and seal after fastening.
Tensioners are used to derive adequate pressure on the strapped area. It is used prior to the application of seals.
Pneumatic nailer tools (sourced from Orgapack, Switzerland); a common example is the pneumatic nailing
machine, which exerts continual hammering force. This machine saves time and facilitates fabrication on wooden surfaces.
Stretch films (one of the most cost-effective packaging solutions) palletize goods of multiple sizes, weight and
configuration. The load integrity is maintained in rough shipping conditions as well. It is easily recycled and is resistant to dust.
Volatile Corrosion Inhibitor (VCI) Papers safeguard goods against corrosion and facilitates long-term
storage. The biggest advantage of VCI Paper is that it serves as the best defence mechanism against moisture, rust and
humidity while shipping goods.
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Operational contractsMidfield Industries leverages its extensive experience and field engineering services to provide complete packaging solutions to clients. It involves the supply of packaging consumables, such as steel strapping, seals, angle boards, pneumatic packaging tools, L-plates, and VcI paper.
We handle the product from its finished state at the plant till it is dispatched at some other location (decided by the client).
We work in close coordination with the production and dispatch departments of clients to ensure smooth functioning of the
packaging activities.
Undertaking an operational contract entails capital outlay wherein an adequate inventory has to be built at the client’s site
and along with the requisite manpower to conduct the entire packaging activity. We are focusing on more operational
contracts to widen our product offerings, and create a ready market for our products. Essar Steel, NALCO, Vizag Steel
Plant, and Bhilai Steel Plant represent some of our key clients for whom we have undertaken operational contracts.
Company overview Strategic review Financial sectionStatutory reports
A Package of Solutions
We are planning to expand our geographical reach by building new manufacturing facilities and adding new capacities.
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
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Expansions and new facilities
HydErAbAdWe are investing an amount of ` 144.02 million to expand the existing manufacturing facility at Hyderabad to set up PET
strap, Stretch Films, collated nails and seals machines.
MuMbAIExpansion of the manufacturing facility near Mumbai (Dist. Thane) by setting up a capacity (25 lakhs mtrs annually) of angle
board, collated nails (4, 20,000 coils annually).
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New manufacturing facilities
OrISSA An extensive manufacturing unit (6000 mtpa) is being planned to be set up in Rourkela (Orissa). This will help us cater to
the eastern region with steel strapping product.
dubAI Dubai is a strategic location and to tap the overseas market a manufacturing facility is being set up at Jabel Ali with a
capital of ` 127.87million to cater to the Middle East and African markets. The Company proposes to use indigenous
technology to set up the facility and this would position us as one of the most cost-effective suppliers.
New product linesWe are focusing on enriching our products range with aggressive foray into the manufacture of polyester strapping, VCI
paper and stretch films. Midfield Industries has a multi-product portfolio in the Indian packaging sector. The multi-product
dimension will help us in enhancing the global reach.
Company overview Strategic review Financial sectionStatutory reports
A Package of Solutions
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
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Board of Directors
Mr. M. Madhu Mohan Reddy
Mr. Madhu Mohan Reddy has a Master’s degree in Business Administration
from Andhra University. Mr. Reddy possesses twelve years of rich experience
at ITW Signode prior to joining Midfield Industries and his designation was
Divisional Manager (steel strapping). He developed an efficient and robust
team of professionals as he took over the mantle in mid 1998, paving a smooth
growth passage. Mr. Reddy is responsible for strategic decisions at Midfield
Industries and is responsible for formulating a vision for the organisation.
Mr. Ashok Sagar MudumbaMr. Ashok Sagar Mudumba holds a Bachelor’s degree in Commerce from the Osmania University and a Diploma in Management (marketing) from the Indira Gandhi National Open University (IGNOU), New Delhi. He commenced his tenure in the organisation in 1994 as a Divisional Manager and currently he is a Whole-Time Director and is heading marketing operations. He has a rich and comprehensive work experience at Nagarjuna Steel Limited (Sr. Assistant- Project Department), Foundation to Aid Industrial Recovery (Field Investigator) and ITW Signode (Regional Manager- Mumbai) prior to joining Midfield Industries. He is in charge of the business development activities.
Mr. Ashok Kumar KollaMr. Ashok Kumar Kolla has an extensive experience of twenty five years in the
film industry. He started his career as an exhibitor and then moved on to different
roles like distributor, producer and artiste. He was felicitated by the Open
University of Complementary Medicines, Colombo, Sri Lanka with the ‘Doctorate
of Honor in Business Management’ in 2008.
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Mr. Raja Raju KothapalliMr. Raja Raju Kothapalli has a Bachelor’s degree in law from Andhra University
and Master’s in Business Administration (marketing and human resource)
from Sikkim Manipal University. He has worked as advocate for seven years,
representing clients in civil and criminal cases. He has also worked in the
marketing and legal division of Frontier Trading Company.
Mr. Kamlesh Kumar BhargavaMr. Bhargava is a Bachelor’s of Science from Osmania University and a qualified chartered accountant. He is a fellow member of the Institute of Chartered Accountants, India, New Delhi since 1979. Over the years, he has gained tremendous experience in the audit of public sector and private sector companies, educational institutes, charitable organisations and commercial banks. He is a partner at a practicing CA firm and advises clients on matters related to accounting, taxation and corporate affairs.
Mr. Vegulla Gopala Krishna RaoMr. Rao is a Bachelor of Engineering (Mechanical) from the Government College
of Engineering, Kakinada and Master of Technology in Industrial Engineering
from the Indian Institute of Technology (IIT), Chennai. He has over three decades
of work experience and has worked with companies like Carborundum Universal
Limited, Metal Box India Limited, Everest Building Products Limited, ITW
Signode India Limited, Surana Strips and so on.
Company overview Strategic review Financial sectionStatutory reports
Board of Directors
24
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
To,The Members,Midfield Industries Limited
Your Directors have pleasure in presenting the Twenty First Annual Report of your Company
together with the Audited Accounts for the financial year ended 31.03.2011 and the report
of the Auditors thereon.
Financial Highlights(in `)
Particulars FY 2010 – 11 FY 2009 – 10
Total Income 1,325,686,415 907,051,874
Expenditure 1,059,569,143 716,308,307
Profit before Tax, Interest and Depreciation 266,117,272 190,743,567
Less: Depreciation 16,557,611 15,116,617
Less: Interest 61,651,300 49,866,604
Profit before tax 187,908,361 127,760,346
Provision for Income Tax 55,600,000 44,000,000
Provision for Deferred Tax Liability 6,740,481 (620,064)
Net Profit after Tax 125,567,880 82,380,410
Profit Brought forward 229,769,286 147,388,876
Balance available for appropriation 355,337,166 229,769,286
Transferred to General Reserve 36,000,000 -
Provision for Dividend (` 2/- per Equity Share) 25,642,502 -
Provision for Tax on Dividend 4,259,220 -
Profit carried to Balance Sheet 289,435,444 229,769,286
Directors’ Report
25
Company overview Performance Strategic review Profile of the Board of Directors Financial sectionStatutory reports
Directors’ Report
OperationsYour Directors are pleased to inform you that the Company
has made a turnover of ̀ 132 crores compared to the turnover
of the previous year which stood at ` 90 crores and achieved
a growth of 46%.
The Company has achieved Net Profit after Tax of ` 12.55
crores compared to the Net Profit after tax of ` 8.24 crores
achieved during the previous year and recorded a growth
of 52%.
During the year under review the Company has come out with
an Initial Public Offer (IPO) and the IPO was a great success
and the Equity Shares of the Company got listed on the
Bombay Stock Exchange Limited on 4.08.2010.
Your Directors are happy to inform you that the manufacturing
facility at Sr. No. 5, Hissa No. 1, Vasurikhurd, Tal. Wada,
District – Thane, Maharastra has become operational during
the year.
New Manufacturing FacilitiesYour Company is in the process of setting up:
a. Manufacturing facility near Rourkela, Odisha to cater to
the requirements of the customers located in the Eastern
region.
b. Manufacturing facility for PET strapping and the same
would be operational during the second quarter of
financial year 2011 – 2012.
c. Plant at Dubai to cater Middle East and African countries.
Corporate GovernanceThe Corporate Governance Report regarding compliance of
the conditions of corporate governance by your Company as
stipulated in clause 49 of the Listing Agreement entered into with
The Bombay Stock Exchange Limited is annexed to this Report.
Material ChangesThere are no material changes affecting the business of the
Company after the date of the Balance Sheet.
DepositsDuring the year under review the Company has not accepted
any deposits from public as defined under the provisions of
Section 58 A of the Companies Act, 1956.
DividendYour Directors are pleased to recommend a dividend of
` 2/- per Equity Share of ` 10/- for the FY 2010 – 11. The
dividend, if approved at the ensuing Annual General Meeting
will be paid to those shareholders whose names appear on
the Register of Members of the Company as on 23.09. 2011.
The total outflow on account payment of dividend for the
FY 2010 –11 will be ` 299.02 lacs.
Transfer to ReservesYour Directors have proposed to transfer ` 360 lacs to the
General Reserve retaining ` 2894 lacs in the Profit and Loss
Account.
DirectorsSri K. Ashok Kumar and Sri Kamlesh Kumar Bhargava,
Directors retire by rotation and being eligible offer themselves
for re appointment. The Board recommends their re-
appointment.
Company SecretaryMr. A. Devi Prasad has resigned as the Company Secretary
of the Company due to his pre occupations with effect from
31.12.2010 and the Board has identified and appointed Mr.
Vivek Surana, a qualified member of the Institute of Company
Secretaries of India as the Company Secretary with effect
from 01.02.2011.
AuditorsM/s Sampath & Ramesh, Chartered Accountants, the
Statutory Auditors of the Company retire at the conclusion
of the ensuing Annual General Meeting and are eligible
for re-appointment. The Board recommends their
re-appointment
PersonnelDuring the year under review, there were no employees
drawing remuneration in excess of the limits laid down in
Section 217(2A) of the Companies Act, 1956 read with the
Companies (Particulars of Employee’s) Rules, 1975.
26
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
A. Conservation of Energy
1. Adequate measures have been taken to conserve
energy wherever possible.
2. Additional investments and proposals, if any, being
implemented for reduction of consumption of
energy: NIL
3. Impact of measures for reduction of energy
consumption / energy conservation: NIL
B. Research And Development
1. Specific areas in which research & development is
carried out: NIL
2. Benefits derived: NIL
3. Future plan of Action: NIL
4. Expenditure on R & D: NIL
C. Technology Absorption
a. Efforts in brief made towards Technology absorption,
adoption and innovation: NIL
b. Benefits derived as result of the above efforts e.g.,
product improvement, cost reduction, production
development, import substitution etc.: NIL
D. In case of imported technology, imported during
the last 5 years reckoned from the beginning of the
financial year, following information may be furnished
a. Technology Imported: N. A.
b. Year of Import: N. A.
c. Has technology fully absorbed areas where this has
not been taken place, reasons thereof and plan of
action: N. A.
DIRECTORS’ RESPONSIBILITY STATE-MENTPursuant to provisions of Section 217 (2AA) of the Companies
Act, 1956 we, the Board of Directors of the Company hereby
state:
(i) that in the preparation of the annual accounts for the year
ended 31.03.2011, the applicable accounting standards
had been followed along with proper explanation relating
to material departures;
(ii) that we had 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
at the end of the financial year and of the profit of the
Company for that period;
(iii) that we 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 we had prepared the annual accounts for the year
ended 31.03.2011 on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY
ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND
OUTGO:
The disclosures required under Section 217(1) (e) of the
Companies Act, 1956 read with Companies (Disclosure of
particulars in the Report of the Board of Directors) Rules,
1988, for the year ended March 31, 2011 are as follows:
27
Company overview Performance Strategic review Profile of the Board of Directors Financial sectionStatutory reports
Directors’ Report
ACkNowlEDgEmENTS :
The Board places a record of appreciation to the Bankers, Government and Non Government authorities, Members and
Employees of the Company for their continued support and confidence in the Company.
For and on behalf of the Board
For Midfield Industries Limited
Place: Hyderabad M. Madhu Mohan Reddy
Date: 06.08.2011 Chairman & Managing Director
(in `)
Sl. No. Particulars of the transaction FY 2010 – 11 FY 2009 – 10
1. Total Foreign Exchange earnings 2,95,47,406 3,02,16,486
2. Foreign Exchange outgo
a. on account of import of Equipment 2,48,49,365 17,30,909
b. on account of Travel 5,89,430 59,779
Total Foreign Exchange outgo 2,54,38,795 17,90,688
E. Foreign Exchange Earnings and outgo
1. Activities relating to exports, initiatives taken to increase exports, development of new export markets for products and
services, and export plans:
The new manufacturing facility set up at Thane, Maharashtra would cater to the export market and the Directors are
confident of achieved good turnover in exports.
2. Total Foreign Exchange used and earned
28
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
Management Discussion and AnalysisImportance of PackagingPackaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale and use. Packaging is a coordinated system of preparing goods for transport, warehousing, logistics, sale and use.
Sustainable Growth of the Indian EconomyThe intrinsic strengths of the Indian economy, along with positive stimulatory measures introduced by the government, resulted in an impressive GDP growth of 8.6% in FY 2010-11. The six infrastructure industries crude oil, petroleum refinery products, coal, electricity, cement and finished steel have a 26.7% weight in the index for industrial production. With manufacturing activities picking up in line with the growth, there is a likely possibility of a rebound in the infrastructure segment.
Furthermore, with the rebound in the economy and the demand from the emerging economies, rising environmental concerns, governments’ initiatives towards waste management, rising demand for cost-effective, lightweight and recyclable material will drive the demand in the global packaging industry. The industry is projected to grow at 3.6% CAGR over the next five years.
Global Packaging IndustryThe global packaging industry today is estimated to be
around $500 billion, growing at a CAGR of 3.1% (Source:
World Packaging Organisation)
Geographical breakdown of the global packaging
industry
India’s GDP trend
(Source: CSO * Growth in GDP at factor cost at 2004-2005 prices)
8.68.0
6.8
9.39.69.5
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Asia US Europe
Latin America Other
(Source: World Packaging Organisation)
27%
8%
7%
28%
30%
29
Company overview Performance Strategic review Profile of the Board of Directors Financial sectionStatutory reports
Management Discussion and Analysis
The Asian packaging industry forms around 27% of global
packaging demand and it is pegged at US$115bn. The
Asian packaging industry has three main players namely
Japan, China and India. Japan leads the market with 48%
while India has 12% market share in the Asian packaging
industry.
The projected global packaging market trend from 2008 onwards is as follows:
2008
(Source: Pike Research)
2009 2010 2011 2012 2013 2014
(` in billion)
486503
521 559578 577
597
Indian Packaging IndustryThe Packaging Industry is one of the most unique industries
in India that has significant role in creating wealth for the
nation, by preserving and protecting the value of goods
created by other manufacturing companies. The Indian
packaging industry is highly fragmented in nature.
Quick facts
3% contribution to the global world packaging market.
11th rank in the world
15% growth in FY 2010-11 and reached ` 65,000 crores
Estimated to grow at 18% and become ` 82,500 crores
by 2015
Asian packaging industry
Japan China India
Others
(Source: www.iip-in.com)
12%
8%
48%
32%
The structure of the Indian packaging industry is as follows:
Wood
Rigid Packaging Flexible Packaging
Polyester film
Biopp filmPlastics
Glass
Metal
Paper & Paper boards
Laminated tubes
Indian Packaging Sector
Primary Converters
30
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
34%
40%
14%
12%
The low per capita consumption at present offers mammoth
business opportunity to packing companies. Another
factor, which has in recent past provided substantial
stimulus to the packaging industry, is the rapid growth of
exports, which requires superior packaging standards for
the international market. The business of packaging is not
seasonal and hence no major cyclical trends are observed
in this industry.
Plastic Paper Glass
Metal
(Source: Indian Institute of Packaging)
Indian packaging market (material consumption)
Industrial Packing
The growth in demand for industrial packaging is not only
forcing the companies to think about how to make the
packaging better and durable it is also finding the ways and
means to be cost-effective without hampering the quality of
packaging solutions.
Industrial packaging is a part of the packaging industry that
primarily deals with bulk and industrial packaging and it caters
primarily to the manufacturing sector.
Industrial Packaging can be broadly divided into two segments-
heavy industries and light industries.
Industrial Packaging
Heavy Industries Light Industries
Heavy Industries require packaging solutions that does not only sustain the heavy weight of products like steel, aluminum and so on but it should facilitate easy movement of the same. On the other hand Light industries require packaging as per the specifications of the products and the mode of transportation plays a crucial role as well.
A perceptible change has been witnessed in the industrial packaging industry. The Companies are now proffering complete packaging solutions instead of merely supplying packaging consumables. India’s flexible packaging segment will treble from 1000 kilotons (2007) to 3100 kilotons by 2014.
The Indian manufacturing sector has fuelled the demand for enhanced and easy packaging needs. Due to easy availability of raw materials and low manufacturing costs, India is fast emerging as a preferred hub for packaging production.
Currently, rigid packaging enjoys more than 65% market
share but the traditional rigid packaging users are
migrating to flexible packaging in a big way. According to
industry sources, the main reason for this is that flexible
packages are found aesthetically attractive, cost-effective
and sturdy. Consumer preference for the use of convenient
packaging and packaged products in affordable quantities
in laminates is also one of the main reasons being attributed
to this growth.
17%
10%
6%
5%
Others
Glass Bottles
FlexiblePackaging
Metal Cans
Rigid Plastics
Caps & Closures
Printed Cartons
Labels
Indian packaging market
19%
4%
21%
18%
(Source: Indian Institute of Packaging)
31
Company overview Performance Strategic review Profile of the Board of Directors Financial sectionStatutory reports
Management Discussion and Analysis
Growth Drivers
Rising population: India’s population is estimated to be
1.21 billion in 2011 as it is growing at 1.3%. The ‘young’
population of the country comprises over 50% people below
25 years. This age group is expected to continue seeing a
growth - and the good news is that these individuals like to
spend on lifestyle products.
Surging per capita income: Per capita income was
` 46,492 in FY 2009-10 and it is expected to grow by 17.3%
and reach ` 54,527 in FY 2010-11.
Expanding middle class: The middle class comprises
22% of the total population and by 2010; this class is
expected to grow to about 32% of the total population.
Urbanisation: Only 28% of India’s population today lives
in urban areas. This number is expected to reach 40 % by
2020, signaling a significant consumer, infrastructure and
retail expenditure.
Policy changes: The first of the fiscal in India will witness
multi-brand retailing for foreign players which would allow
players like Wall Mart, Carrefour and Target to develop fully
fledged set up in India.
Downstream Industry Optimism
Steel
India has been ranked the world’s fourth largest producer of
crude steel and is projected to become the world’s second
largest producer by 2015. The production of finished steel
in FY 2010-11 is 8.8% higher than 60.62 million tonnes
produced in FY 2009-10.
(Source: India Steel Market Watch)
Aluminum
India is the fifth largest producer of aluminum. India
produces only 1.318 million tonnes as compared to world
production of 40 million tonnes. The per capita consumption
of the aluminum metal in India is less than 1kg, whereas the
same is estimated at 25 - 30 kgs in US & Europe, 15 kgs in
Japan, 10 kgs in Taiwan and 3 kgs in China.
Despite the lower per capita demand for the metal in
India, there is a heavy demand for aluminum in the
domestic market on account of the metal being used in
large quantities across a number of industries including
packaging. Of the total volume required by the domestic
market, the power industry makes use of about 44% and
the consumer durables and transportation industries
consume about 10-12%, while the construction and
packaging sectors buy about 17%.
Glass
The glass industry in India is poised to grow rapidly,
owing to its extensive use in numerous sectors. The
glass packaging industry is growing at 10-12%. The glass
industry is divided into 2 broad segments- float glass
and container glass. The current capacity of float glass
segment is 4750 TPD and the per capita consumption is
only 1 kg and as this segment is still at a nascent stage a
growth of 13-15% is expected in the next 4years to come.
Copper
The copper ore production in India was 3.2 million tonnes
in 2010. India’s per capita copper consumption is 0.5 kg
which is significantly less than that of China (4.6 kg per
person) and substantially lower than the world average.
The main consumers of copper include electrical and
telecom industry.
Total volume break up
44%
10%
17%
17%
12%
Transportation Construction Packaging
Power industry Consumer durables
32
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
Paper
The Indian paper industry is estimated to be worth ̀ 25,000
crores. The Indian paper industry is poised to grow and
touch 11.5 million tonnes in 2011-12 from the current 9.18
million tonnes in 2009-10.
(Source: ASSOCHAM)
The Indian Paper industry generated a turnover of ` 30,000 crores and it contributed ` 3000 crores to the national exchequer and provided employment to around 1.5 million people in India.
Food products are the largest consumption category in
India as it accounts for nearly 21% of the GDP. The Indian
FMCG market segments constitute the following products:
2.4
0.5
IndiaWorld
(Source: CRU statistics)
4.6
Kg
per p
erso
n
China
Per Capita Copper Consumption
(Source: IMCAS)
Electrical Products
Engineering, Construction and Transport
Telecom
Others
36.0%
18.0%
20.0%
26.0%
Copper consumption pie
FMCG goods
The Indian FMCG sector is the fourth largest sector in the
economy. It is estimated to reach US$ 33.4 by 2015.
FMCG market size
2003
11.6
33.4
2015
$ bi
llion
(Source: IBEF)
FMCG market segments
2%
12%
43%
8%8%
4%
4%
5%
22%
Baby care
Hair care
Others
Fabric care
Household
Personal care
Food products
OTC products
(Source: Motilal global Investor conference 2010)
33
Company overview Performance Strategic review Profile of the Board of Directors Financial sectionStatutory reports
Management Discussion and Analysis
SWOT Analysis of Midfield IndustriesStrengths Weakness Opportunities Threats
1. Niche segment of industrial packaging
1. Capacity constraints
1. Surge in packaging demand
1. Peer competition
2. Established brands 2. Lack of infrastructure development
2. Untapped international export markets
2. Fluctuating prices of raw materials and Interest rates
3. Operational contracts: one stop solution
4. Diverse clients
5. Adherence to stringent quality parameters
6. Incessant focus on expansion and business growth
Risk ManagementRisk management is essential for sustainable stakeholder value creation. Effective risk governance will result in achievement of business objectives, protection of people, assets and reputation. We run our business by identifying, assessing and managing risks
Risk identification Risk assessment Risk management
Risk Mitigation
Health and safety One of the most important pre-requisites for the smooth functioning of our business operations is well being of workers. We have a comprehensive and well audited safety practice standards. This tremendously helps in reduction of accidents at the factories.
Raw material price fluctuations In line with the strategic priority, Midfield Industries manages its inventory very well. Maximisation of available resources and all the goods are manufactured in house. Backward integration is helping the Company to overcome raw material price fluctuations.
Changes in consumer behavior We incessantly monitor the market and carefully observe the consumer trends. The political developments and varying needs are mapped by our market research team and this helps us in serving the diverse sectors with customised packaging solutions.
Cost management Midfield Industries has a sound economic objective and a good corporate practice. The funding requirements are negotiated in a timely manner so that there is enough room to mitigate the risk related to foreign currency, interest rate and commodity prices rates.
34
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
Company Overview
Products
High Tensile Steel StrappingSeals & L-PlatesAngle BoardsCollated NailsTools & SparesPet StrapsStretch FilmsVolatile Corrosion Inhibitor (VCI) Paper
Midfield Industries Limited
Services
Operational contract
Industrial packaging solutions
It will also help in augmenting the long term working capital of the Company and achieve the benefits of listing on the Stock
Exchange.
Financial Highlights Financial performance
Midfield’s growing list of clientele and attractive order book has enabled it to report attractive numbers.
Particular 2010-11 2009-10 Growth (%)
Revenue (` in mn) 1325.69 907.05 46
EBIDTA (` in mn) 266.12 190.74 40
PAT (` in mn) 125.57 82.38 52
Human Resources (HR)The Company recognises the importance of the Human Resources team to achieve its goals. Midfield Industries has an
experienced and a dynamic HR team that ensures the implementation of significant HR policies for the Company’s growth
and credibility. The recruitment cell focuses on hiring new talent and implements the retainment policy for the existing
employees. There is a lot of emphasis on training and development so that there are emerging leaders and creation of
extensive talent pool.
Health and safety measuresWe have a policy in place for the health and safety for our workmen which have the following salient features:
1. Compliance with relevant safety and statutory regulations and rules both in letter and in spirit.
2. Maintenance of safe, healthy and congenial working atmosphere by constant monitoring of work place environment.
35
Company overview Performance Strategic review Profile of the Board of Directors Financial sectionStatutory reports
Management Discussion and Analysis
3. Ensuring cleanliness and proper lighting system at the work place
4. Providing helmets, gloves, appropriate tools, and other safety precautions to the workers.
5. Conducting workshops on safety, first-aid, fire fighting, safety audit and risk analysis studies.
We comply with applicable health and safety legislations to ensure that the workers enjoy a safe and a healthy work
environment.
OutlookIndian packaging industry with a growth of more than 11% p.a. is expected to continue recording high growth for a
prolonged period in the wake of low current per-capita consumption. Packaging today has grown in importance and the
large growing middle class, liberalisation and organised retail sector are the catalysts to growth in packaging.
Internal Control systemMidfield Industries has a comprehensive and consolidated internal control system to ensure authorised business
transactions. Internal audit is an independent function, which is carried out by internal auditors through intensive audits.
Regular internal audits determine the operational and financial efficiencies of the Company.
The Audit Committee of the Board of Directors conduct periodic reviews of pan-organisational effectiveness and
recommends improvement whenever required. The internal control system also formulates well documented policies,
guidelines, authorisations and approval procedures and ensures compliance with applicable policies and statues.
36
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
Corporate Governance
Company’s Philosophy on Code of GovernanceThe Company’s Corporate Governance philosophy is
woven around its total commitment to the ethical practices
in the conduct of its business.
The Corporate Governance polices of your Company
recognises the accountability of the Board vis-à-vis its
various constituents including Customers, Shareholders,
Investors, Employees, Government and other Regulatory
Authorities, with prime objective to deliver “Superior
Shareholder Value”.
The schedule of implementation of Corporate Governance
Code mentioned in Clause 49 of the Listing Agreement
lays down certain mandatory requirements, which your
Company has implemented. Your Directors are pleased to
report the same.
Board of DirectorsComposition and Functions
The Board consists of 6 Directors with considerable
professional experience and expertise in various fields. The
Board of Directors has the ideal composition with more
than half the Directors being Non-Executive Directors. Since
the Company has an Executive Chairman, the Board’s
composition meets the stipulated requirement of at least
one – half of the Board comprising independent Directors.
None of the Non-Executive Directors have any pecuniary
relationship or transactions with the Company, except
receiving sitting for attending each Board Meeting.
The number and dates of the Board Meetings held during
the year under review:
Eight (8) Board Meetings were held during the
FY 2010 – 2011 on the following dates:
1. 10.05.2010
2. 28.05.2010
3. 09.07.2010
4. 23.07.2010
5. 27.07.2010
6. 31.07.2010
7. 13.11.2010
8. 11.02.2011
During the year under review the time gap between any two
consecutive meetings did not exceed four months.
37
Company overview Performance Strategic review Profile of the Board of Directors Financial sectionStatutory reports
Corporate GovernanceReport
Name of the Director and category of Directorship
Attendance particulars No. of other Directorships and committee memberships
Board Meetings Last AGM Other Directorships
Committee membership
Sri M. Madhu Mohan Reddy, Chairman & Managing Director (Executive and Non-Independent Director)
8 YES 1 1
Sri M. Ashok Sagar, Whole Time Director (Executive and Non- Independent Director)
8 YES NIL 2
Sri Kamlesh Kumar Bhargava, Director (Non-Executive and Independent Director)
6 YES NIL 2
Sri K. Ashok Kumar, Director (Non- Executive and Non- Independent Director)
7 YES 2 NIL
Sri K. Raja Raju, Director (Non- Executive and Independent Director)
6 NO NIL 3
Sri V. G. Krishna Rao, Director (Non-Executive and Independent Director)
4 NO 1 1
Name of the Director and category of Directorship Other Directorship
Sri M. Madhu Mohan Reddy, Chairman & Managing Director (Executive and Non- Independent Director)
Centaur India Steels and Tools Private Limited
Sri M. Ashok Sagar, Whole Time Director (Executive and Non- Independent Director)
NIL
Sri Kamlesh Kumar Bhargava, Director (Non -Executive and Independent Director)
NIL
Sri K. Ashok Kumar, Director (Non- Executive and Non- Independent Director)
Srimaan Industries Private Limited Vishwas Construction Industries
Private Limited
Sri K. Raja Raju, Director (Non -Executive and Independent Director) NIL
Sri V. G. Krishna Rao, Director (Non- Executive and Independent Director) S. V. Components Private Limited
Shares held by Non – Executive Directors in the Company
Sl. No. Name of the Director No. of shares held
1. Sri Kamlesh Kumar Bhargava -
2. Sri K. Raja Raju -
3. Sri V. G. Krishna Rao -
4. Sri K. Ashok Kumar 10,23,000
Code of Business Conduct and EthicsThe Company has adopted a Code of Business Conduct and Ethics (the ‘Code’), which applies to all senior management
personnel, and Directors of the Company. It is the responsibility of all senior management personnel and Directors to
familiarise themselves with this Code and comply with its standards.
The Code of Business Conduct and Ethics have been posted on the Company’s website – www.midfieldindustries.com.
The details of the attendance of Directors at meetings of the Board and Annual General Meeting, held during the year (April
2010 to March 2011), along with the details of Committee memberships and their other Directorships are furnished below:
38
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
a. Audit Committee
Composition, Names of Members & Chairperson and
terms of reference
The Audit Committee of the Board comprises of
2 Non-Executive Independent Directors and 1
Non-Independent Director. Sri Kamlesh Kumar
Bhargava is the Chairman of the Audit Committee
As on date the members of the Audit Committee are:
Sl. No. Name of the Director No. of shares held
1. Sri Kamlesh Kumar
Bhargava
Chairman
2. Sri K. Raja Raju Member
3. Sri M. Ashok Sagar Member
Powers of the Audit Committee
a. To invite such of the executives, as it considers
appropriate (and particularly the head of finance
function) to be present at the meetings of the
Committee,
b. To investigate any activity within its terms of
reference,
c. To seek information from any employee
d. To obtain outside legal or other professional
advice, and
e. To secure attendance of outsiders with relevant
expertise if considered necessary.
Terms of Reference of the Audit Committee
1. Overseeing the Company’s financial reporting
process and the disclosure of its financial
information to ensure that the financial statement
is correct, sufficient and credible.
2. Recommending to the Board, the appointment,
re-appointment and, if required, the replacement
or removal of the statutory auditor and the fixation
of audit fees.
3. Approval of payment to statutory auditors for any
other services rendered by them.
4. Appointment, removal and terms of remuneration
of internal auditors
5. Reviewing, with the management, the annual
financial statements before submission to the
Board for approval, with particular reference to:
a. Matters required to be included in the
Director’s Responsibility Statement to be
included in the Board’s report in terms
of clause (2AA) of Section 217 of the
Companies Act 1956;
b. Changes, if any, in accounting policies and
practices and reasons for the same;
c. Major accounting entries involving estimates
based on the exercise of judgment by
management;
d. Significant adjustments made in the financial
statements arising out of audit findings;
e. Compliance with listing and other legal
requirements relating to the financial
statements;
f. Disclosure of any related party transactions;
g. Qualifications in the draft audit report.
6. Reviewing, with the Management, the quarterly
financial statements before submission to the
Board for approval.
7. Monitoring the use of the proceeds of the
proposed initial public offering of the Company.
Reviewing with the management the statement
of uses/application of funds raised through
initial public offering by major category, as well
as statement of funds utilised for purpose other
than those stated in the Prospectus and making
appropriate recommendations to the Board to
take up steps in this matter.
8. Reviewing, with the management, performance
of statutory and internal auditors, and adequacy
of the internal control systems.
9. Reviewing the adequacy of internal audit function,
if any, including the structure of the internal audit
department, staffing and seniority of the official
heading the department, reporting structure,
coverage and frequency of internal audit.
10. Discussions with internal auditors on any
significant findings and follow up thereon.
11. Reviewing internal audit reports and adequacy of
the internal control systems.
39
Company overview Performance Strategic review Profile of the Board of Directors Financial sectionStatutory reports
Corporate GovernanceReport
12. Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit.
13. Reviewing management letters / letters of internal control weaknesses issued by the statutory auditors. Discussion with internal auditors any significant findings and follow up there on.
14. Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board.
15. Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern.
16. To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of nonpayment of declared dividends) and creditors.
17. To review the functioning of the whistle blower mechanism, when the same is adopted by the Company and is existing.
18. Carrying out any other function as may be statutorily required to be carried out by the Audit Committee.
Four meetings were held during the year. The dates on which the meetings were held are:
1. 28.05.2010
2. 31.07.2010
3. 13.11.2010
4. 11.02.2011
The attendance of each member of the Committee is
given below:
Sl. No Name of the Director No. of Meetings
Attended
1. Sri Kamlesh Kumar
Bhargava
3
2. Sri K. Raja Raju 3
3. Sri M. Ashok Sagar 4
Remuneration CommitteeThe Remuneration Committee was constituted in the
Board Meeting held on 02.06.2008 with Mr. V. G. Krishna
Rao, Mr. K. Rajaraju and Mr. Kamlesh Kumar Bhargava as
the Members. The powers and duties of the remuneration
committee are:
i. To review, assess and recommend the appointment of
Executive and Non Executive Directors from time to time;
ii. To periodically review the remuneration package of the
Executive Directors and recommend suitable revision
to the Board;
iii. To recommend compensation to the non executive
Directors in accordance with the Companies Act, 1956
iv. To consider and recommend Employee Stock Option
Scheme, if any, from time to time and to administer
and superintend the same.
The remuneration committee did not meet during the year.
Details of Remuneration paid to the Directors for the year
2010 – 2011
Particulars M. Madhu Mohan Reddy, Chairman & Managing Director
M. Ashok Sagar, Whole Time Director
Remuneration paid from 01.04.2010 to 30.09.2010
` 90,000 per month ` 25,000 per month
Remuneration paid from 01.10.2010 to 31.03.2011
` 90,000 per month ` 65,000 per month
Non-Executive Directors receive sitting fee for attending
each Board Meeting.
Shareholders and Investors Grievance CommitteeThe Committee was constituted in the meeting held on
02.06.2008 and the members of the Committee are as
follows:
Sl. No Name of the Member Designation
1. K Raja Raju Chairman
2 M. Madhu Mohan Reddy Member
3. M. Ashok Sagar Member
40
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
The Share Transfer Committee approves the transfer of shares, where shares are held in physical form and issues duplicate share certificates as per the provisions of the Companies Act, 1956 read with the Securities Contract (Regulations) Act, 1956 and other applicable Acts/Rules in this regard. The Committee also reviews the status of shares dematerialised and all other matters related to shares.
The Committee meets as often as is required to approve various matters relating to transfers, transmissions, issue of duplicate share certificate etc. The Share Transfer Committee generally meets two times in a month. There are no requests for share transfers pending for the year under review.
This Committee also looks into the redressal of shareholder and investor complaints like transfer of shares, non-receipt of Dividends/rights/bonus/split share certificate, replacement of lost/stolen/mutilated share certificate, non-receipt of Annual report, other related issues. There are no investor complaints pending for the year under review.
Name and designation of the compliance officer: Mr. M. Laxminarayana, Compliance Officer.
CEO CertificationAs required by Clause 49 of the Listing Agreement, the CEO certification is provided elsewhere in the Annual Report.
1. Auditors’ Certification on Corporate Governance
As required by Clause 49 of the Listing Agreement, the Auditors’ certification is provided elsewhere in the Annual Report.
2. Compliance With Non-Mandatory Requirements of Clause 49 of The Listing Agreement:
The Company is presently complying only one non mandatory requirement enumerated in the provisions of Clause 49 of the listing agreement i.e., constitution of remuneration committee.
Number of shareholders complaints received: 19
Number not solved to the satisfaction of shareholders: NIL
Number of pending share transfers: No Pending
share transfers as on 31.03. 2011
3. General Body Meetings
Location and date/time of last three Annual General Meetings
Year Location Date Time
2009 – 2010 Registered Office: Plot No. 6, Phase IV Extension, IDA, Jeedimetla, Hyderabad – 500055
29.07. 2010 11:30 A.M.
2008 – 2009 Registered Office: Plot No. 6, Phase IV Extension, IDA, Jeedimetla, Hyderabad – 500055
25.09. 2009 11:30 A.M.
2007 – 2008 Registered Office: Plot No. 6, Phase IV Extension, IDA, Jeedimetla, Hyderabad – 500055
30.09. 2008 11:30 A.M.
No special resolution requiring a postal ballot was placed before the last AGM. Similarly, no special resolutions
requiring postal ballot is being proposed at the ensuing AGM.
4. Disclosures
Disclosures on materially significant related party
transactions i.e. transactions of the Company of
material nature, with its promoters, the Directors or
the management, their subsidiaries or relatives etc.
that may have potential conflict with the interests of
Company at large.
Details of related party transactions have been
disclosed under Note 12 on Schedule 21 on the
financial statements. There are no transactions, which
may have potential conflict with the interests of the Company at large.
Details of non-compliance by the Company, penalties, and strictures imposed on the Company by Stock exchanges or SEBI or any statutory authority, on any matter related to capital markets, during the last three years
No penalties have been imposed on the Company by Stock Exchanges or SEBI or any Statutory Authority on any matter related to capital markets, during the last three years.
41
Company overview Performance Strategic review Profile of the Board of Directors Financial sectionStatutory reports
Corporate GovernanceReport
5. Proceeds from Public Issue
The Company is placing before the Audit Committee
on a quarterly basis the application of funds raised
through the public issue as required under the
provisions of Clause 49 of the Corporate Governance.
6. Means of Communication
No half-yearly reports were sent to the shareholders.
Quarterly results are published in Financial Express
/ Business Line (in English) and Andhra Prabha (in
Vernacular Language)
The results of the Company are displayed on
www.midfieldindustries.com
Management Discussion and Analysis forms part of the
Annual Report and is provided elsewhere in this report.
7. General Shareholder Information
a. Details of the ensuing Annual General Meeting
Date Day Time Venue
23.09.2011 Friday 10.00 A.M.
Copper Hall, Expotel Hotel, Lower Tank Bund Road, Hyderabad – 500029
b. Financial Calendar: 1.04. 2011 to 31.03.2012
Date Day Time Venue1st Quarterly results
Half yearly results
3rd Quarter 4th Quarter
August, 2011
November, 2011
February, 2012
May, 2012
c. Date of Book Closure:
17.09. 2011 to 23.09.2011 (both days inclusive).
d. Dividend Payment Date:
On or before 15.10.2011
e. Listing on Stock Exchanges and Stock code:
The shares of the Company are listed on The
Bombay Stock Exchange Limited, Mumbai and
the Stock Code is 533220.
f. Market Price Date: High/Low during each
month in last financial year (2010 – 2011)
In `
Period The Bombay Stock
Exchange Limited, Mumbai
High Low
April 2010 N. A. N. A.
May 2010 N. A. N. A.
June 2010 N. A. N. A.
July 2010 N. A. N. A.
August 2010 257.50 150.00
September 2010 436.30 214.00
October 2010 455.00 385.30
November 2010 455.80 380.20
December 2010 433.90 90.70
January 2011 99.75 67.50
February 2011 70.50 45.85
March 2011 66.85 48.00
g. Performance in comparison to broad-based
indices such as BSE Sensex:
Comparitive Graph
20500
20000
19500
19000
18500
18000
17500
17000
16500
450400350300250200150100500
Sha
re P
rice
BS
E S
ense
x
Aug
ust 2
010
Sep
tem
ber 2
010
Oct
ober
201
0
Nov
embe
r 201
0
Dec
embe
r 201
0
Jana
rt 20
11
Febr
uary
201
1
Mar
ch 2
011
BSE Sensex Share Price
42
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
h. Registrar and Transfer Agents
Bigshare Services Private Limited is the Registrar and Share Transfer agents of the Company. For any queries regarding transfer of shares and demat of share, shareholders may contact:
Bigshare Services Private Limited,
E/2, Ansa Industrial Estate, Sakivihar Road,
Sakinaka, Andheri (E), Mumbai – 400072
Tel: 022 – 28470562
Fax: 022 – 28475027
email: [email protected]
i. Share Transfer System
Pursuant to the appointment of Bigshare
Services Private Limited as Common Agency for
j. Distribution of Shareholding
Distribution Schedule as on 31.03.2011 is furnished below:
Category No of Holders No of Shares % of shares to Total Equity
From To
01 5000 3,066 2,98,034 2.3245
5001 10000 164 1,33,375 1.0403
10001 20000 63 94,722 0.7388
20001 30000 28 73,151 0.5705
30001 40000 16 58,380 0.4553
40001 50000 19 89,129 0.6952
50001 100000 33 2,55,106 1.9897
100001 ABOVE 68 1,18,19,354 92.1857
TOTAL 3,457 1,28,21,251 100.0000
undertaking Company’s electronic and physical
share registry work, all the requests for share
transfers received by the Company are sent to
the Registrar. Similarly some of the shareholders
send the requests for share transfers directly to
the Registrar.
Normally the shares, without any technical
objections, are transferred and the certificates
are sent to the shareholders within 30 days from
the date of receipt of the request. The requests,
which contain technical objections are rejected
and rejection letters along with the requests are
sent to the shareholders within 15 days from the
date of receipt of the request.
Shareholding pattern as on 31.03.2011
Sl. No. Category No. of Shares held % to the Total Capital
1. Promoter & Promoter Group 66,37,075 51.77
2. FII’s 5,69,910 4.45
3. Bodies Corporate 27,16,852 21.19
4. Individuals 16,09,428 12.55
5. Directors and their relatives 10,94,209 8.53
6. Employees 1,44,000 1.12
7. NRIs 34,350 0.27
8. Clearing Members 15,427 0.12
TOTAL 1,28,21,251 100.00
43
Company overview Performance Strategic review Profile of the Board of Directors Financial sectionStatutory reports
Corporate GovernanceReport
k. Dematerialisation of shares and liquidity
Name of Demat Registrars:
Bigshare Services Private Limited,
E/2, Ansa Industrial Estate, Sakivihar Road,
Sakinaka, Andheri (E), Mumbai – 400072
Tel: 022 – 28470562
Fax: 022 – 28475027
email: [email protected]
International Securities Identification Number
(ISIN): INE091K01010
The Company has entered into Agreements
with NSDL and CDSL, and as on 31.03.2011,
54,15,499 Equity Shares have been
dematerialised, constituting 42.24% of the total
equity. As per the directives of Securities and
Exchange Board of India (SEBI), the Company’s
shares are covered under the compulsory
dematerialisation list and are transferable
through the depository system.
Registered Office and Address for correspondence:
Mr. M. Laxminarayana,
Compliance Officer
Plot No. 6, Phase IV Extension,
IDA, Jeedimetla, Hyderabad – 500055
Tel: 040 – 23098502
Fax: 040 – 23096493
email: [email protected]
Plant Locations:
1. Plot No. 4A & 4C Phase IV
IDA, Jeedimetla, Hyderabad – 500055
2. Plot No. 6, Phase IV Extension,
IDA, Jeedimetla, Hyderabad – 500055
3. Plot No. D16, Khasra No. 32, Bantakhedi,
Pargana – Bhagwanpur, Teshil – Roorkee
4. Sr. No. 5, Hissa No. 1, Vasurikhurd,
Tal. Wada, District – Thane
5. S3/119 & S3/120, Industrial Estate Kalunga,
Sanbrahmanitarang Revenue Village,
Orissa (Under Implementation – Expected
to commence commercial production
during fourth quarter of Financial Year 2011
– 2012)
l. Outstanding GDRs / ADRs / Warrants or any
Convertible instruments, conversion date and
likely impact on equity
The Company has not issued any GDRs, ADRs/
warrants or any convertible instruments.
Shareholders holding shares in electronic mode
should address all their correspondence to their
respective Depository Participant (DP)
44
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
Chief Executive Officer (CEO) Certification
I M. Madhu Mohan Reddy, Chairman and Managing
Director of MIDFIELD INDUSTRIES LIMITED to the
best of our knowledge and belief, certify that:
1. I had reviewed the Balance Sheet and
Profit and Loss Account (Consolidated and
Unconsolidated), and all its schedules and
notes on accounts, as well as the cash flow
statements and the Directors’ Report;
2. Based on my knowledge and information, these
statements do not contain any untrue statement
of a material fact or omit to state a material fact
necessary to make the statements made, in
light of the circumstances under which such
statements were made, not misleading with
respect to the statements made;
3. Based on my knowledge and information,
the financial statements and other financial
information included in this report, present in
all material respects, a true and fair view of, the
Company’s affairs, the financial condition, results
of operations and cash flows of the Company
as of, and for, the periods presented in this
report, and are in compliance with the existing
accounting standards and / or applicable laws
and regulations;
4. To the best of my knowledge and belief, no
transactions entered into by the Company
during the year are fraudulent, illegal or violative
of the Company’s code of conduct.
5. I am responsible for establishing and maintaining
internal controls over financial reporting for the
Company, and I have:
a) designed such disclosure controls and
procedures to ensure that material
information relating to the Company,
including its consolidated subsidiary, is
made known to us by others within those
entities, particularly during the period in
which this report is being prepared.
b) designed such internal control over
financial reporting, or caused such
internal control over financial reporting
to be designed under our supervision, to
provide reasonable assurance regarding
the reliability of financial reporting and
the preparing of financial statements for
external purposes in accordance with
generally accepted accounting principles;
c) evaluated the effectiveness of the
Company’s disclosure, controls and
procedures and
d) disclosed in this report any change in
the Company’s internal control over
financial reporting that occurred during the
Company’s most recent financial year that
has materially affected, or is reasonably
likely to materially affect, the Company’s
internal control over financial reporting.
6. I had disclosed based on our most recent
evaluation, wherever applicable, to the
Company’s auditors and the audit committee of
the Company’s Board of Directors.
a) significant changes in internal controls
during the year covered by this report;
b) significant changes in accounting policies
during the year and that the same have
been disclosed in the notes to the financial
statements;
c) instances of significant fraud of which they
have become aware and the involvement
therein, if any, of the management or an
employee having a significant role in the
Company’s internal control system.
For Midfield Industries Limited
M. Madhu Mohan Reddy
Chairman & Managing Director
Place: Hyderabad
Date: 06.08.2011
45
Auditors’ Certificate on Corporate Governance
To,
The Members
MIDFIELD INDUSTRIES LIMITED,
We have reviewed the implementation of Corporate Governance procedures by MIDFIELD INDUSTRIES LIMITED for the
year ended 31st March, 2011 as stipulated in Clause 49 of the Listing Agreement of the said Company with the Bombay
Stock Exchange Limited.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was
limited to a review of procedures and implementation thereof, adopted by the Company for ensuring the compliance of
the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of
the Company.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency
or effectiveness with which the management has conducted the affairs of the Company.
On the basis of our review and according to the information and explanations given to us, the conditions of Corporate
Governance as stipulated in Clause 49 of the listing agreements with the stock exchanges have been complied with in
all material respect by the Company and no investor grievance is pending for a period exceeding one month against the
Company as per the records maintained by the Company.
For SAMPATH & RAMESH
Chartered Accountants
(Regd No. 005947S)
Date : 06.08.2011
Place : Hyderabad
A. Krishna Reddy
Partner
M. No. 204755
Company overview Performance Strategic review Profile of the Board of Directors Financial sectionStatutory reports
Corporate Governance
46
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 1121st Annual Report 10 11
51Profit and Loss Account
52Cash Flow Statement
53Schedules
64Balance Sheet Abstract
47Auditors’ Report
50Balance Sheet
financialstatements
47
Company overview Performance Strategic review Profile of the Board of Directors Financial sectionStatutory reports
To
The Members
MIDFIELD INDUSTRIES LIMITED
Hyderabad
1. We have audited the attached Balance Sheet of
M/s MIDFIELD INDUSTRIES LIMITED as at
31.03.2011 and the Profit & Loss Account and the
Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are
the responsibility of the Company’s management.
Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with the
auditing standards generally accepted in India.
Those standards require that we plan and perform
the audit to obtain reasonable assurance about
whether the financial statements are free of material
misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also
includes assessing the accounting principles used
and significant estimates made by management,
as well as evaluating the overall financial statement
presentation.
3. We believe that our audit provides a reasonable
basis for our opinion, as required by the Companies
(Auditor’s Report) Order, 2003 issued by the Central
Government of India in terms of sub section (4A) of
section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified
in the paragraphs 4 and 5 of the said order.
4 Further to our comments in the Annexure referred in
the paragraph 1 above, we report that:
i) We have obtained all the information and
explanations which to the best of our knowledge
and belief were necessary for the purposes of
our audit.
ii) In our opinion, proper books of account as
required by law have been kept by the Company
so far as appears from our examination of those
books.
iii) The Balance Sheet, Profit & Loss Account and
Cash Flow Statement dealt with by this report
are in agreement with the books of accounts.
iv) In our opinion, the Balance Sheet, Profit &
Loss Account and Cash Flow Statement dealt
with by this report comply with the accounting
standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956; to the
extent applicable.
v) On the basis of the written representations
received from the directors, as on 31.03.2011
and taken on record by the Board of Directors,
we report that none of the Director is disqualified
as on 31.03.2011 from being appointed as a
Director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
vi) In our opinion and to the best of our information
and according to the explanations given to us,
the said accounts read with the notes thereon
give the information required by the Companies
Act, 1956, in the manner so required and
give a true and fair view in conformity with the
accounting principles generally accepted in
India;
a) In so far as relates to Balance Sheet, of
the state of affairs of the Company as on
31.03.2011.
b) In so far as relates to Profit and Loss
account of the Profit of the Company for
the year ended on that date.
c) In so far as relates to Cash Flow Statement,
of the cash flows of the Company for the
year ended 31.03.2011.
For Sampath & Ramesh
Chartered Accountants
(Regd No.005947S)
A. Krishna Reddy
Partner
Place : Hyderabad
Date : 25.07.2011
M No. 204755
auditors’ Report
Auditors’ Report
48
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
annexure to the auditors’ ReportReferred to as in Paragraph (1) of our report of even date
1. In Respect of its Fixed Assets
a) The Company has maintained proper records
showing full particulars including quantitative
details and situation of fixed assets on the basis
of available information.
b) As explained to us, the fixed assets have been
physically verified by the management during
the year in a phased periodical manner, which in
our opinion is responsible, having regard to the
size of the Company and the nature of its assets.
No material discrepancies were noticed on such
physical verification.
c) During the year, the Company has not disposed
of substantial part of the Assets. According to
the information and explanations given to us,
we are of the opinion that no transactions are
effected involving disposal of assets so as to
affects going concern status company.
2. In respect of its Inventories :
a) As explained to us, inventories have been
physically verified during the year by the
management at regular intervals. In our opinion,
the frequency of verification is reasonable.
b) In our opinion and according to the information
and explanations given to us, the procedures of
physical verification of inventories followed by
the management are reasonable and adequate
in relation to the size of the Company and the
nature of its business.
c) The Company had maintained proper records
of inventories. In our opinion and according to
the information and explanations given to us, the
discrepancies noticed on verification between
the physical stocks and the book records were
not significant, have been properly dealt with in
the books of accounts.
3. In respect of Loans secured or unsecured, granted or
taken by the Company to/from companies, firms or
other parties covered in the register maintained under
section 301 of the Companies Act, 1956:
a) During the year the Company has not taken loans
from parties covered in the register maintained
under section 301 of the Companies act, 1956.
The Company has not granted any loans to the
parties covered in the register maintained under
section 301 of the companies act, 1956.
4. In our opinion and according to the information and
explanations given to us, there are adequate internal
control procedures commensurate with the size of the
Company and the nature of its business, for the
purchase of inventory, fixed assets and for the sale
of goods. During the course of our audit, based on
our audit procedures applied, we have not observed
any continuing failure to correct major weakness in
internal controls.
5. As explained to us, and based on our verification and
examination of the books of accounts we are of the
view that there are no transactions that need to be
entered into the register in pursuance of section 301
of the act. In view of this, in our view, no comment
under clause (v) (b) in considered necessary
6. In our opinion, and according to the information
and explanations given to us, the Company has not
accepted any Deposits for which the provisions of
section 58A or 58AA of the Companies Act, 1956, and
the Companies (Acceptance of Deposits) Rules 1975
apply.
7. In our opinion, the internal audit function carried out
during the year by a firm of Chartered Accountant
appointed by the Management have been
commensurate with the size of the Company and the
nature of its business.
8. We were explained that the maintenance of cost
records has not been prescribed by the Central
Government under Section 209 (1) (d) of the
Companies Act, 1956 for the products manufactured
of the Company.
9. In respect of statutory dues:
a) According to the records of the Company
and as per the information and explanations
given to us, the Company is generally regular
in depositing with appropriate authorities,
undisputed Statutory dues including, Provident
fund, Employee’s state insurance, Custom
duty, Income tax, Excise duty, Cess and other
material statutory dues applicable to it with the
appropriate authorities.
49
Company overview Performance Strategic review Profile of the Board of Directors Financial sectionStatutory reports
b) According to the information and explanations
given to us, no disputed amounts payable in
respect of Income tax, Sales tax, Custom duty,
Excise duty and Cess were outstanding, as at
31.03.2011.
10. In our opinion, the Company neither has accumulated
losses at the end of the year nor incurred cash losses
during the financial year covered by our audit in the
immediately preceding financial year.
11. As per the records of the Company and according
to the information and explanations given to us, we
are of the opinion the Company has not defaulted in
repayment of dues to banks and financial institutions.
12. According to the information and explanations given
to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of
shares, debentures and other similar securities.
13. In our opinion, the Company is not a chit fund or a
nidhi / mutual benefit fund/ society. Accordingly
the provisions of clause 4 (xiii) of the Companies
(Auditor’s Report) Order, 2003 are not applicable to
the Company.
14. In our opinion, the Company is not dealing in or
trading in shares, securities, debentures and other
investments. Accordingly the provisions of clause 4
(xiv) of the Companies (Auditor’s Report) Order, 2003
are not applicable to the Company.
15. In our opinion, according to the information and
explanations given to us, the Company has not given
any guarantee for loans taken by others from banks
or financial institutions.
16. In our opinion and according to the information and
explanations given to us, the term loans have been
applied for the purpose for which they were obtained.
17. In our opinion, and according to the information and
explanations given to us and on an overall examination
of statements and records of the Company, that the
funds raised on short-term basis have, prima facie, not
been used during the year for long-term investment.
18. In our opinion, the Company has not made any
preferential allotment of shares/securities during the
year to parties and companies covered in the register
maintained under section 301 of the Companies act,
1956.
19. The Company has not issued any debentures during
the year.
20. The Company has raised money by way of public
issue during the year.
21. In our opinion and according to the information
and explanations given to us and based on audit
procedures performed, no fraud on or by the
Company has been noticed or reported during the
year.
For Sampath & Ramesh
Chartered Accountants
(Regd No.005947S)
A. Krishna Reddy
Partner
Place : Hyderabad
Date : 25.07.2011
M No. 204755
Auditors’ Report
50
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
`
Particulars Schedule Reference
As at 31.03.2011
As at 31.03.2010
I SOURCES OF FUNDSShareholder’s Funds
a Share Capital 1 128,212,510 83,212,500
b Reserves & Surplus 2 916,710,967 267,544,686
Loan Funds
a Secured Loans 3 458,554,448 409,528,354
b Unsecured Loans 4 15,894,264 13,762,643
Deferred Tax 5 6,497,227 (243,254)
TOTAL OF 1, 2 & 3 1,525,869,416 773,804,929
II APPLICATION OF FUNDS
Fixed Assets 6
a Gross Block 391,357,932 207,888,109
b Less: Depreciation 92,590,684 76,033,073
c Net Block 298,767,248 131,855,036
Investments 7 5,000,000 5,000,000
Current Assets, Loans and Advances
a Inventories 8 198,641,646 146,678,533
b Sundry Debtors 9 887,910,422 584,663,252
c Cash & Bank Balances 10 17,226,685 14,721,209
d Loans & Advances 11 293,920,888 107,820,098
1,402,699,641 858,883,092
Less: Current Liabilities & Provisions 12
a Current Liabilities 134,927,186 166,151,856
b Provisions 87,425,397 50,781,343
Net Current Assets 1,180,347,058 641,949,893
Miscellaneous Expenditure
( To the extent not writton off ) 13 46,755,110 -
TOTAL OF 1,2,3 & 4 1,525,869,416 773,804,929
Significant Accounting Policies 20
Notes to Accounts 21
As per our report of even date
For Sampath & Ramesh Chartered Accountants Regd No. 005947S For and on behalf of the Board
A. Krishna Reddy M Madhu Mohan Reddy M. Ashok Sagar Vivek Surana
PartnerM.No. 204755
Chairman & Managing Director Executive Director Company Secretary
Place : Hyderabad
Date : 25.07. 2011
Balance sheet as at 31.03.2011
51
Company overview Performance Strategic review Profile of the Board of Directors Financial sectionStatutory reports
As per our report of even date
For Sampath & Ramesh Chartered Accountants Regd No. 005947S For and on behalf of the Board
A. Krishna Reddy M Madhu Mohan Reddy M. Ashok Sagar Vivek Surana
PartnerM.No. 204755
Chairman & Managing Director Executive Director Company Secretary
Place : Hyderabad
Date : 25.07. 2011
Profit and loss account for the year ended 31.03.2011
`
Particulars Schedule Reference
Year ended 31.03.2011
Year ended 31.03.2010
INCOMEa Sales
Domestic Sales 1,293,027,514 874,923,206
Export Sales 29,547,406 30,216,486
b Other Income 14 3,111,495 1,912,182
Total Income 1,325,686,415 907,051,874
EXPENDITURE
a Raw Material Consumed 15 882,748,409 584,853,583
b Personnel Cost 16 23,155,465 16,287,587
c Other Manufacturing Costs 17 14,527,729 12,958,551
d Administrative & Selling Expenses 18 133,942,528 102,208,586
e Preliminary Expenses Written off 5,195,012 -
1,059,569,143 716,308,307
Profit before Interest, Depreciation & Tax 266,117,272 190,743,567
f Financing Costs 19 61,651,300 49,866,604
g Depreciation 16,557,611 15,116,617
78,208,911 64,983,221
Profit/ (Loss) Before Tax 187,908,361 125,760,346
Provison for Current Tax 55,600,000 44,000,000
Provision for Deferred Tax 6,740,481 (620,064)
Net Profit after Tax 125,567,880 82,380,410
Balance brought forward 229,769,286 147,388,876
Balance available for appropriation 355,337,166 229,769,286
Transferred to General Reserve 36,000,000 -
Provision for Dividend 25,642,502 -
Tax on Dividend 4,259,220 -
Profit Carried to Reserves & Surplus 289,435,444 229,769,286
Earning per share (basic) (face value ` 10) 9.79 9.90
Earning per share (diluted) (face value ` 10) 9.79 9.90
Profit & Loss AccountBalance Sheet
52
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
`i(in lakhs)
Particulars Year ended 31.03.2011
A. CASH FLOW FROM OPERATING ACTIvITIES:Net Profit before Tax and Extraordinary items 1,879.08 Adjustments for:Depreciation 165.58 Finance and Interest Cost 616.51 Non Trade Income 31.11 Operating Profit before working capital changes 2,630.06 Inventories (519.63)Receivables (3,032.47)Loans & Advances (279.94)Other Current Assets (1,581.06)Current Liabilities (312.25)Provisions 6.76 Cash generated from operations (3088.54)Income -tax paid 635.07 Net Cash from Operating activities (3723.61)B. CASH FLOW FROM INvESTING ACTIvITIESPurchase of Fixed Assets (2,106.98)Sales of Fixed Assets - Capital WIP - Investment in Jv/ Others - Non trade income 31.11 Net Cash used in Investing Activities (2,075.87)C. CASH FLOW FROM FINANCING ACTIvITIESProceeds from issue of shares 450.00 Share Premium 5,535.00 Receipts / (Payments) of Secured Loans 490.26 Receipts / (Payments) of Unsecured Loans 21.32 Finance and Interest Cost (672.05)Net Cash used in Financing Activities 5,824.53 Net increase in cash and cash equivalents (A+B+C) 25.06 CASH AND CASH EQUIvALENTS:Opening balance 147.21 Closing Balance 172.27
cash flow statement for the year ending 31.03.2011
NOTES TO CASH FLOW STATEMENT FOR THE YEAR ENDED 31.03.2011 1. Cash and cash equivalents include:
Cash and cheques in hand 0.61 Balances with scheduled banks:In Current Accounts 13.53
In Deposit Accounts 158.13 Total cash and cash equivalents 172.27
As per our report of even date For Sampath & Ramesh Chartered Accountants Regd No. 005947S For and on behalf of the Board
A. Krishna Reddy M Madhu Mohan Reddy M. Ashok Sagar Vivek SuranaPartnerM.No. 204755
Chairman & Managing Director Executive Director Company Secretary
Place : HyderabadDate : 25.07. 2011
53
Company overview Performance Strategic review Profile of the Board of Directors Financial sectionStatutory reports
schedules
`
As at 31.03.2011
As at 31.03.2010
SCHEDULE - 1 SHARE CAPITALAuthorised Capital
1,75,00,000 Equity Shares of `10 each 175,000,000 175,000,000
(Previous Year 175,00,000 Equity Shares
of ` 10 each)
SUBSCRIBED,CALLED UP & PAID UP
12,821,251 Equity Shares of ` 10 each 128,212,510 83,212,500
fully paid up (previous year 83,21,250 Equity Shares of ` 10 each)
128,212,510 83,212,500
20,50,000 shares out of the issued and subscribed were alloted as Bonus
Shares by capitalisation of Reserves during the Year Ending 31.03.2007
SCHEDULE - 2 RESERvES & SURPLUSCapital & General Reserves
- Share Premium 589,275,523 35,775,400
- Investment Subsidy Received from
Andhra Pradesh State Financial Corporation 2,000,000 2,000,000
- Profit & Loss Account 289,435,444 229,769,286
General Reserve 36,000,000 -
916,710,967 267,544,686
SCHEDULE - 3 SECURED LOANSFrom Bank
- On Cash Credit Account 366,451,265 273,119,620
- On Term Loan Account 90,139,205 108,142,404
- Loan's for vehicles & Others 192,103 569,888
- S.E. Investments Ltd 1,771,875 27,696,442
458,554,448 409,528,354
SCHEDULE - 4 UNSECURED LOANSSales Tax Deferment 15,894,264 13,762,643
15,894,264 13,762,643
SCHEDULE - 5 DEFERRED TAXATION ASSETDeferred Tax
UPTO 31-03-2010 (243,254) 376,810
For the YEAR 6,740,481 (620,064)
6,497,227 (243,254)
SchedulesCash Flow Statement
54
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
GR
OS
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,572
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ENT
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9,81
8 6
,966
,586
2
,035
,629
9
,002
,215
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7,60
3 1
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5,08
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- 7
,800
7
,800
-
7,8
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- -
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,196
1
,752
,680
8
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,313
9
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,644
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,662
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45,
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46,
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TTER
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,716
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,549
,675
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174
,788
1
,140
,022
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,409
,653
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,081
,725
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108
,300
8
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9 7
,322
9
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9 4
,711
MO
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.89%
4,0
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18
672
,880
4
,702
,498
2
,586
,221
4
20,7
47
3,0
06,9
68
1,6
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97
TOTA
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80,6
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210
,698
,088
3
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76,
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92,
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298
,767
,248
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71
CAP
ITAL
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RK
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RO
GR
ESS
- -
- -
- -
- 2
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180
,659
,844
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,932
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,557
,611
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,590
,684
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,036
PREv
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S YE
AR 1
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76,6
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,888
,109
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,116
,617
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,033
,074
1
31,8
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36
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HE
DU
LE -
6 F
IXE
D A
SS
ETS
schedules`
55
Company overview Performance Strategic review Profile of the Board of Directors Financial sectionStatutory reports
`
As at 31.03.2011
As at 31.03.2010
SCHEDULE - 7 INvESTMENTSCentaur India Steels & Tools Pvt. Ltd 5,000,000 5,000,000
( 50,000 Equity Shares of ` 100 each)
5,000,000 5,000,000
SCHEDULE - 8 INvENTORIESRaw Materials 59,506,070 73,249,379
Consumables 7,485,168 11,335,659
Finished Goods 117,111,890 44,898,190
Work in Process 14,538,518 17,195,305
198,641,646 146,678,533
SCHEDULE - 9 SUNDRY DEBTORS ( Un-secured,considered good )
Outstanding
For a period exceeding six months 116,738,876 42,928,863
Less than six months 771,171,546 541,734,389
887,910,422 584,663,252
SCHEDULE - 10 CASH AND BANK BALANCESCash in Hand 61,204 61,527
Cash at Bank
with scheduled bank on Current Accounts
1,353,148 400,594
Margin Money Deposit Account 15,812,333 14,259,088
17,226,685 14,721,209
schedules
Schedules
56
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
schedules
`
As at 31.03.2011
As at 31.03.2010
SCHEDULE - 11 LOANS AND ADvANCES (Un-secured,considered good)
Advances recoverable in cash for which value is to be received
- Capital Advances 105,711,632 80,658,865
- Others 6,174,359 3,232,654
Income Tax (TDS) 3,958,547 1,111,988
Deposits
- With Government Authorities 2,246,702 2,246,702
- With Others 169,375,648 14,887,347
- Security & Earnest Money Deposits 6,454,000 5,682,542
293,920,888 107,820,098
SCHEDULE - 12 CURRENT LIABILITIES & PROvISIONSCURRENT LIABILITES :
Sundry Creditors
- Small Scale Industrial Units - 467,833
- Others 134,927,186 165,684,023
134,927,186 166,151,856
PROVISIONS:
Provision for Gratuity 2,897,650 2,221,346
Provision for Tax 54,626,025 48,559,997
Provision for Dividend 25,642,502
Tax on Dividend 4,259,220
87,425,397 50,781,343
SCHEDULE - 13 MISCELLANEOUS EXPENDITUREPreliminary Expenses (IPO Expenses) 51,950,122 -
Less: Preliminary Expenses Written off 5,195,012 -
46,755,110 -
57
Company overview Performance Strategic review Profile of the Board of Directors Financial sectionStatutory reports
schedules
SCHEDULE - 15 RAW MATERIAL CONSUMEDA. Raw Material:
Opening Stock 73,249,379 71,949,483
Purchases 796,064,250 503,222,919
869,313,629 575,172,402
Less: Closing Stock 59,506,070 73,249,379
809,807,559 501,923,023
B. Stores,Spares, Consumables & Packing Material
Opening Stock 11,335,659 10,265,896
Purchases (Including Traded Goods) 138,647,272 77,268,644
149,982,931 87,534,540
Less: Closing Stock 7,485,168 11,335,659
142,497,763 76,198,881
C. Increase And Decrease In Stocks
Opening Stock:
Finished Goods 44,898,190 52,918,105
Work in Process 17,195,305 15,907,069
62,093,495 68,825,174
Closing Stock:
Finished Goods 117,111,890 44,898,190
Work in Process 14,538,518 17,195,305
131,650,408 62,093,495
Net Increase/(Decrease) (Other Than Raw Material) 69,556,913 (6731679)
Total Material Consumed 882,748,409 584,853,583
SCHEDULE - 16 PERSONNEL COST Director's Remuneration 1,478,400 1,260,000
Salaries & Wages 17,307,813 12,821,183
Staff Welfare 562,770 444,451
Other benefits 4,306,505 2,373,023
23,655,488 16,898,657
Less: Expenses Capitalised 500,023 611,070
23,155,465 16,287,587
`
Year ended 31.03.2011
Year ended 31.03.2010
SCHEDULE - 14 OTHER INCOME Interest On Term & Consumption Deposits 7,84,123 6,63,517
Others 23,27,372 12,48,665
31,11,495 19,12,182
Schedules
58
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
schedules
`
Year ended 31.03.2011
Year ended 31.03.2010
SCHEDULE - 17 OTHER MANUFACTURING COSTPower 12,168,870 10,578,477 Repairs & Maintanance:- for Plant & Machinery 787,548 891,495 - for Others 1,168,614 674,586 Job Work Charges 766,533 880,563
14,891,565 13,025,121 Less: Expenses Capitalised 363,836 66,570 14,527,729 12,958,551
SCHEDULE - 19 FINANCE COSTOn Cash Credit Accounts 41,019,324 38,731,103 On Term Loans Accounts 12,809,134 18,628,392 Others 13,376,831 8,958,872
67,205,289 66,318,367 LESS: Interest to be Capitalisied 5,553,989 16,451,763
61,651,300 49,866,604
SCHEDULE - 18 ADMINISTRATIvE & SELLING EXPENSESRent 117,400 197,400 Rates & Taxes 1,969,450 627,586 Advertisement & Sales Promotion Expenses 1,176,014 467,789 Printing & Stationary 457,665 379,856 Postage,Telegrams & Telephones 764,055 993,592 Travelling & Conveyance 2,513,003 1,726,415 Car Hire Charges 15,961 7,795 Legal & Professional Charges 1,113,212 873,719 Consultancy Charges 798,900 1,102,772 Transport Charges 13,839,731 12,535,400 Bad Debts 2,826,138 2,604,842 Bank Charges ,LC, & Processing Charges etc 7,857,568 5,435,364 Auditors Remuneration 1,103,000 200,000 Internal Audit Fee 300,000 - Sales Commission 533,037 704,986 Excise Duty 2,130,841 3,652,872 Custom Duty 1,577,176 717,806 Service Tax 4,116,840 1,017,442 Sales Tax 38,942,621 20,119,538 Other Expenses 51,912,629 49,090,865 134,065,241 102,456,039 Less: Expenses Capitalised 122,713 247,453
133,942,528 102,208,586
CALCULATION OF DEFERRED TAX FY 2010-2011 Depreciation as per the Income Tax Act. 3,63,88,389 Depreciation as per the Companies Tax Act. 1,65,57,611 Difference in Depreciation 1,98,30,778 Deferred Tax 67,40,481
59
Company overview Performance Strategic review Profile of the Board of Directors Financial sectionStatutory reports
schedulesSCHEDULE - 20 SIGNIFICANT ACCOUNTING POLICIES
1. Basis for preparation of Financial Statements:
The Financial statements have been prepared under the historical cost conventions in accordance with the generally
accepted accounting principles in India and the provisions of the Companies Act, 1956 as adopted consistently by the
Company. All income and expenditure having a material bearing on the financial statements are recognised on accrual
basis.
2. (A) Fixed Assets:
Fixed assets are recorded at historical cost of purchase and do not reflect current values. Cost includes interest
and other financial charges attributable to the acquisitions of fixed assets.
B. Intangible Assets:
The IPO Expenditure incurred is amortised over the period of 10 years.
3. Investments:
Long Term Investments are stated at cost.
4. Inventories :
Inventories have been valued as under:
i) Raw materials, work-in-progress, stores and spares and finished goods have been valued at cost or net realisable
value whichever is lower.
5. Foreign Exchange Transactions:
All the Foreign exchange transactions entered into during the current period are accounted at the exchange rate
prevailing on the date of contract/documentation. Foreign Exchange fluctuations on transactions entered into during
the period and received/paid during the period are accounted in the current financial year. The out standing accounts
in foreign currency are restated at the end of the year at the foreign currency rate prevailing on that date and any
fluctuation on the same is recognised and accounted at the end of the period.
6. Revenue Recognition:
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have been
transferred to the buyer.
Revenue from Works Contracts is recognised by reference to the completion of the contract activity at the reporting
date, where the contract activity extended beyond the reporting date, on the basis of percentage of the completion
method.
7. Employee Benefits:
i) Provident Fund:
The Company contributes to the Employee Provident Fund maintained by the Central Government under the
Employees Fund Scheme. Both Employee and Company made make monthly contributions to this Provident
Fund plan to a specified percentage of the employees’ salary.
ii) Gratuity:
Provision has been made in the financial statements of the Company, in respect of gratuity on accrual basis.
8. Borrowing Costs:
Borrowing costs that are directly attributable or constructions of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended
use. All other borrowings costs are charged to Profit and Loss Account.
Schedules
60
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
9. Provision for Current & Deferred Tax:
Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax assets
and liabilities are recognised, subject to consideration of prudence, on “timing differences”, being the difference
between taxable incomes and accounting income, that originate in one period and are capable of reversal in one or
more subsequent periods. Deferred tax assets arising on account of unabsorbed depreciation or carry forward of
losses under tax laws are recognised only to the extent that there is virtual certainty supported by convincing evidence
that sufficient future taxable income will be available against which such deferred tax assets can be realised. Deferred
tax assets on account of other timing differences are recognised to the extent that there is a reasonable certainty of its
realisaton.
10. Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree if estimation in measurement is recognised when there is a present obligation
as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not
recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial
statements.
SCHEDULE - 21 NOTES TO ACCOUNTS1. Capital:
a) During the year Company has offered and allotted 45, 00,001 Equity Shares of `10 each at a premium of `123
per share to the public through prospects after obtaining the necessary statutory and regulatory approvals.
2. Secured Loans :
a) Term Loans by State Bank of India, Axis Bank Ltd. & State Bank of Hyderabad by joint mortgage by deposit of title
deeds of all immovable properties and first charge by way of hypothecation of all movable properties both present
and future.
b) Working Capital facilities sanctioned by State Bank of India, Axis Bank Ltd. & State Bank of Hyderabad are
secured by hypothecation of raw materials, stock in process, finished goods, stores and spares and book debts
both present and future on parri-passu basis. These are further secured by way of second charge on the fixed
assets of the Company.
c) The Company has availed loan of ` 350 lakhs from S.E. Investment Limited secured by charge on intangible
assets including Goodwill, Patent, Licence under patent, trademark, copyright or licence under copyright of the
Company. The said loan has further been secured by pledge of 500,000 equity shares by the promoter of the
Company, namely Mr. M. Madhu Mohan Reddy. The charge created in favour of S.E. Investments Limited was
satisfied and form No. 17 was filed with the Registrar of Companies, Andhra Pradesh on 01.07.2011.
3. Contingent Liabilities:
` (in lakhs)
As at As at
31.03.2011 31.03.2010i) Banks Guarantees given by Banks 107.00 111.10
4. Details of the disputed dues to customs & Sales Tax are given below
NIL
schedules
61
Company overview Performance Strategic review Profile of the Board of Directors Financial sectionStatutory reports
5. Particulars of Managerial Remuneration:
` (in lakhs)
Year ended Year ended
31.03.2011 31.03.2010Salary 14.78 12.60Perquisites - -Provident Fund 0.60 0.50Medical Expenses - 0.10
15.38 13.20
6. Auditors Remuneration :
` (in lakhs)
Year ended Year ended
31.03.2011 31.03.2010Audit Fees 5.03 1.50Tax Audit Fees 1.00 0.20Certification & other Tax matters 5.00 0.30
7. Additional information pursuant to the provision of paragraphs 3, 4C,& 4D of Part II of Schedule VI of the Companies Act, 1956.
Year ended Year ended
31.03.2011 31.03.2010a) Installed Capacity (as certified by the Management)
(i) Steel Strapping (Tonnes per annum) 18000 12000
As on 31.03.2011
As on 31.03.2010
c) Opening Stock of Finished Goods 448.98 529.18
d) Closing Stock Finished Goods 1,171.11 448.98
Year ended 31-03-2011
Year ended 31-03-2010
e) Production :
(i) Steel Strapping ( MT’s) 9,289.62 8,484.05
(ii) Seals ( Nos) 14,951,900 13,093,100
(iii) Scrap (MT’s) 334.64 336.080
schedules
` (in lakhs)
As on 31-03-2011
AS on 31-03-2010
f) Sales
i) Steel Strapping, Seals, Tools, Spares, Angle Boards, Nails, Scrap,
Packing Services and all other packaging products etc.
13,325.74 9,051.39
13,325.74 9,051.39
g) Total Materials Consumed 8,827.48 5,848.53
Schedules
62
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
` (in lakhs)
Sl.No Particulars Year ended 31.03.2011
Year ended 31.03.2010
(a) Outflow in foreign currency
i) Foreign Travel Expenses 5.80 0.60
ii) Raw Material - -
iii) Capital Equipment & Components 248.50 17.30
iv) Repayment of Loan & Interest - -
v) Others - -
(b) Inflow in foreign currency
i) FOB value of exports 295.40 302.10
ii) Others 0.00 0.00
8. Foreign Currency Transactions:
9. Deferred Tax Liability:
` (in lakhs)
Year ended 31.03.2011
Year ended 31.03.2010
a. Deffered Tax Liability
On a/c of Accumulated Tax Losses
Deffered Tax Asset
On a/c of Depreciation (6.30)
On a/c of MAT Credit available
Net Deferred Tax Liability
b. General Reserve adjusted against 67.40
Deffered Tax Asset
schedules
10. Sales Tax Deferment Loan:
During the year, the Company has availed an amount of ̀ 32,31,621/- under sales tax deferment scheme and the sales
tax deferment availed till the current accounting period is due for repayment ` 1,58,94,264 as under.
Sl.No. Year of Repayment ` (in lakhs)
1 2014-15 1.392 2015-16 20.943 2016-17 17.854 2017-18 29.495 2018-19 16.346 2019-20 12.927 2020-21 16.728 2021-22 6.769 2022-23 9.2210 2023-24 2.9011 2024-25 25.20
63
Company overview Performance Strategic review Profile of the Board of Directors Financial sectionStatutory reports
11. Working for the earnings per share in terms of AS 20- “Earning per share”
`
31-03-2011 31-03-2010Net Profit for basis EPS
12,55,67,880 8,23,80,410Weighted Average No. of Shares
12821251 8321250Annualised Basic Earnings per share 9.79 9.90
12. Related Party Disclosures:
a) Related parties where control exists : Nil
b) Other Group Companies : Centuar Steels & Tools Pvt. Ltd. No transaction has taken place during the yearc) Key Management Personnel : Mr.M. Madhu Mohan Reddy,
Chairman & Managing DirectorMr. M. Ashok Sagar, Executive Director. Other than Remunaration the KM P’s does not have any related transactions.
13. Raw Materials purchases includes carriage inwards, material handling and clearing & forwarding charges etc
14. Confirmations are still to be received in respect of the amounts relating to Debtors, Creditors and Loans & Advances.
15. Figures for the previous year have been regrouped/ reclassified/ recast wherever necessary. Figures are rounded off
to the nearest rupee.
As per our report of even date
For Sampath & Ramesh Chartered Accountants Regd No. 005947S For and on behalf of the Board
A. Krishna Reddy M. Madhu Mohan Reddy M. Ashok Sagar Vivek Surana
PartnerM.No. 204755
Chairman & Managing Director Executive Director Company Secretary
Place : Hyderabad
Date : 25.07. 2011
schedules
Schedules
64
MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11MiDFiELD iNDUSTRiES LTD.21st Annual Report 10 11
l. Registration Details :
Registration No. U 2 7 1 0 9 A P 1 9 9 0 P L C 0 1 1 3 5 3
Balance Sheet Date 3 1 0 3 2 0 1 1 State Code 0 1
ll. Capital Raised during the year : (Amount in Rupees)
Public Issue 4 5 0 0 0 0 1 0 Right Issue N I L
Bonus Issue N I L Private Placement N I L
lll. Position of Mobilisation and Deployment of Funds : (Amount in Rupees)
Total Liabilities 1 7 4 8 2 2 1 9 9 9 Total Assets 1 7 4 8 2 2 1 9 9 9
Sources of Funds
Paid-up Capital - 1 2 8 2 1 2 5 1 0 Reserves & Surplus 9 1 6 7 1 0 9 6 7
Secured Loans - 4 5 8 5 5 4 4 4 8 Unsecured Loans 1 5 8 9 4 2 6 4
Application of Funds
Net Fixed Assets 2 9 8 7 6 7 2 4 8 Investments - 5 0 0 0 0 0 0
Net Current Assets 1 1 8 0 3 4 7 0 5 8 Miscellaneous
Expenditure
- - - - - N I L
Accumulated Losses - - - - - - N I L
lV. Performance of Company : ( Amount in Rupees)
Turnover 1 3 2 2 5 7 4 9 2 0 Total Expenditure 1 1 3 7 7 7 8 0 5 4
Profit/Loss before tax (+) 1 8 7 9 0 8 3 6 1 Profit/Loss after tax (+) 1 2 5 5 6 7 8 8 0
(Please tick appropriate box + for Profit, - for Loss)
Earning per Share in ` - - - - 9 . 7 9 Dividend rate % 2 0
V. Generic Names of Three Principal Products / Services of Company (as per monetary terms)
Item Code No. (ITC Code) 7 2 1 2 . 4 0 0 0
Product/Service Descripition C O L D R O L L E D S T E E L S T R A P P I N G
Item Code No. (ITC Code) 8 3 0 9 . 9 0 3 0
Product/Service Descripition S E A L S
Item Code No.(ITC Code) 4 8 2 3 . 9 0 1 8
Product/Service Descripition C O R N E R B O A R D S / E D G E B O A R D
NOTE : For ITC Code of Products please refer to the publication Indian Trade Classification based on harmonised
commodity descriotion and Coding system by Ministry of Commerce, Directorate General of Commercial Intelligence &
Statistics, Calcutta - 700 001
Balance sheet abstract & company’s General Business Profile
M. Madhu Mohan Reddy M. Ashok Sagar Vivek SuranaChairman & Managing Director Executive Director Company Secretary
Place : HyderabadDate : 25.07. 2011
Additional Information as required under Part Iv of Schedule vI to the Companies Act, 1956
corPorAte informAtion
Board of Directors
Mr. M. Madhu Mohan Reddy
Chairman & Managing Director
Mr. M. Ashok Sagar
Executive Director
Mr. K Ashok Kumar
Director
Mr. K Raja Raju
Independent Director
Mr. Kamlesh Kumar Bhargva
Independent Director
Mr. V G Krishna Rao
Independent Director
Company SecretaryMr. Vivek Surana
Bankers
State Bank of India
Axis Bank Ltd.
State Bank of Hyderabad
AuditorsM/s. Sampath & Ramesh
Chartered Accountants
101 A, Sidhartha Harini Apartments
Besides DBR Mills
Lower Tank Bund Road
Hyderabad – 500 080
Email : [email protected]
Registrar & Share Transfer AgentM/s. Bigshare Services Private Limited
E/2, Ansa Industrial Estate, Sakivihar Road
Sakinaka, Andheri (E)
Mumbai – 400 072
Email : [email protected]
Registered Office
Plot No.6, Phase – IV Extn
I.D.A., Jeedimetla
Hyderabad – 500 055
Email : [email protected]
Plants1. Plot No. 6, Phase – IV Extension, I.D.A.,
Jeedimetla, Hyderabad – 500 055.
2. Plot No.4A & 4C, Phase – IV, I.D.A.,
Jeedimetla, Hyderabad – 500 055
3. Plot No.D-16, Khasra No.32, Bantakhedi,
Paragana-Bhagwanpur, Tehsil – Roorkee,
Dist:Haridwar, Uttaranchal.
4. Sy. No.5, Hissa No.1, Vasurikhurd,
Taluk – Wada, Dist : Thane, Maharasthra.