Anup Malleables Ltd Management Discussions

ANUP MALLEABLES LIMITED ANNUAL REPORT 2011-2012 MANAGEMENT DISCUSSION AND ANALYSIS Industry Structure & Development During the Financial Year your Company has invested huge amount to procure CNC Vertical Milling Machine, 600 KVA Diesel Generator and lot of Jigs, Fixtures & Dies for development of extra large fabricated items such as Bogie Frame Assembly of different Diesel & Electric Locomotives. Your Company is planning to further invest a substantial amount of money for procurement of CNC Plano miller Machine, Co-ordinate Measuring Machine, Spectrometer and Retro fitment of some of its existing Milling Machines with CNC Control Panel. Your Company has already developed Fabricated Bogie Frame Assembly and Oil Pan Machined Assembly of EMD Locomotives and bulk production of both the items are likely to be started from the month of October 2012 onwards. Your Company is making every effort to develop all the pending items for which order has been received from Chittaranjan Locomotive Works (CLW), Chittaranjan and Diesel Locomotive Works (DLW), Varanasi. Your Company is quite confident to develop all the items by the end of this financial year. Opportunities & Threats: There is great demand for machining of castings and fabrication items. However, threat from small firm is still continuous, Their prices are very low and developed and established firms are not able to match their prices. In line with the aspirations of ongoing growth in the fiscal year 2012-13, company integrating its resources and investing in new technologies to achieve greater performance and long term growth. India needs a policy to bring another round of multifaceted reforms for the industrial sector to have a sustained double-digit output growth in the medium to long term. Financial Performance: Total income of the Company for the financial year 2011-12 comprises of Net Sales, work contract receipt and other income amounts to Rs.1342 Lac which was an increase of 34% over last years figure. Profit before tax for the year under review was Rs.89.78 Lac, an increase of 36% over the last years figure Profit after tax for the year under review was Rs.82.18 Lac registered an a\increase of 27% over the last years figure Earnings per share for the year under review was Rs.10.96 as compared to Rs.8.62 for the last year. Internal Control System and their Adequacy The company has adequate Internal Control System commensurate with the size and nature of the business. The system has been designed to ensure that, all assets are acquired economically, used efficiently and protected against loss, destruction or unauthorized use. All resources are used efficiently and effectively. Accounting, Financial and other operational information are accurate, reliable and provided timely and all applicable laws and internal policies are complied with true spirit.