Dear Shareholders,
Greetings fromTRF!
It's my privilege to write to you and present the Annual Report for the financial year
2022-23. I am extremely happy to convey my best regards to all of you and sincerely pray
for you and your family's health, safety and well-being.
I The world has come out of the shadow I of the pandemic and has been able to I survive
with it. With cases of Covid-19 subsiding after two years of havoc and turmoil, the year
gone by was being watched as a good opportunity for the economies around the world to
recover completely from the pandemic slump as the Covid cases fell.
Post pandemic, market has shown significant improvement and stabilization resulting in
more business opportunities. However, geopolitical crises, supply chain reorientations,
global inflation, rising interest rates, war in Ukraine, the lingering impact of COVID in
many parts of the world, tight monetary policy accompanied by mounting costs and increased
volatility is confronting Corporate Leaders with complexities and challenges.
Despite multiple headwinds and challenging operating environment, your Company has
demonstrated resilience and delivered good performance in terms of production and
financial results. This was possible due to the timely support received from Tata Steel
Limited, the Promoter Company, by way of fund infusion and capacity utilisation
arrangements. I would also take this opportunity to express gratitude to our team who have
done a commendable job to ensure that the Company delivered on the commitments made to our
Customers and Stakeholders.
Fiscal 2023, was significant year for the Company. Positive cash flow and
sustainability from the external projects continued to be a bottleneck. In spite of this,
your Company has demonstrated a strong financial performance resulting in positive Net
Worth and Working Capital after a gap of 8 long years, due to the financial and
operational support received from the Tata Steel Ltd. This has also helped your Company to
post all time high PBT of M 81.06 crore and to pay off all its external debts from banks
and financial institutions in FY23.
Health and Safety of our employees is the key focus area for the Company. The Company
has put in place strict safety protocols within the plant, office premises and project
sites. Continued focus on various dimensions, including procedural aspects and strategic
interventions, infrastructure reinforcement, capacity building and behavioural
improvement, comprehensive communication, and security governance have helped the
organization to remain a "Zero Fatality" Company for yet another year.
The greatest asset of a Company is its people. People policies and practices have been
revisited to hire, retain and engage the best talent. During the year, one of the
remarkable achievement was settling the Future Ready Skill Development Training Program
for employees of the Company. Additionally Contract Labour Management System (CLMS),
reward & recognition, employee engagement activities were some of the other
initiatives taken during FY23.
Our Manufacturing team along with collaboration of all functions like Supply Chain
Management, Planning, Quality Assurance, Dispatch, and Life Cycle Services have been able
to achieve manufacturing through put above 200 tonnes per month since December 22.
Further, we have been able to do 1,244 MT of production during FY23 for Tata Steel and
hope to do better in the coming years.
The Projects business vertical has also made significant progress, which includes
achieving, performance guarantee test from one of the prestigious project i.e. 3x660 MW
NTPC Nabinagar Power Plant along with other projects like Vizag Steel Plant, BHEL-Meja and
DVC, Raghunathpur which are on the verge of completion. Further, your Company is
responsibly engaging and working closely with its key customers, focussing on physical
completion and contractual closure of all major projects, to expedite liquidation of
outstanding debtors. We also managed to reduce Bank Guarantee by 36% compared to last
financial year and collected from debtors M72 crore during the year gone by. However, in
spite of all the efforts, the Company still have critical exposure to bank guarantees and
collection of old debtors.
To enhance durability, safety, and security we will continue to invest in
infrastructure upgrades including modernization of building and shopfloor and we believe
that investing in state-of-the-art machinery will significantly contribute to the success
and efficiency of our operations. We have taken target to modernize / upgrade the plant
and machinery in a phased manner.
Strengthening safety and health, skill development, employee engagement and career
progression, improving manufacturing capacity and capability, optimizing cost structure,
expeditious closure of legacy projects will continue to remain our key focus areas.
Your Company has synergized its operations with Tata Steel resulting in optimal usage
of its assets and human resource. Further, the Board ofTata Steel and TRF have announced a
merger which will result in better sustainability, focused growth, operational
efficiencies and business synergies.
Together, with the contribution from all our employees and the Union, we have ensured a
very supportive and productive workplace. We are committed to the well-being of all our
stakeholders and the communities where we operate. Drawing from the legacy of the Tata
Group, we work closely with our communities to create equitable and inclusive pathways for
all.
I would end by thanking my colleagues and all our stakeholders for their continued
trust, confidence and support. We seek the shareholders relentless support in securing a
sustainable future for the Company.
| Best Regards, |
| Umesh Kumar Singh |