asian alloys ltd share price Directors report

1996 ASIAN ALLOYS LIMITED DIRECTORS REPORT Your Directors have pleasure in presenting the TENTH ANNUAL REPORT together with the Audited Accounts for the Financial year ended 31st March, 1996. DIVIDEND Your Directors are pleased to recommend a dividend of 12% for the year ended 31st March, 1996 subject to deduction of tax at source as per the provisions of Income Tax Act, 1961. NEW PROJECTS The Company is setting up a state of the art 100% Export Oriented Unit for manufacture of knitted fabrics and garments at Village Sihi Sikanderpur, Distt. Gurgaon, Haryana. The Civil work is in full swing. The Machinery for the Textile Project has started arriving at the Project Site. The first phase of the Project i.e. production of processed fabrics will be completed by November 1996. The second phase of the Project including garmenting division would start commercial production by March, 1997. In view of low pace of receipt of allotment money the Steel Castings Project to be set up at Bhiwadi, Rajasthan was slowed down. To further optimise the return on investment on existing plants, the company has undertaken a modernisation programme involving a capital outlay of Rs. 8.50 crores which will enlarge the product range. The Punjab State Industrial Development Corporation has sanctioned a term loan of Rs. 418 lacs to part finance the Project. SHARE CAPITAL During the year, the Company came out with a premium Right-cum-public Issue of Rs. 2900 lacs. So the share capital has increased from Rs. 340 lacs to Rs. 872.73 lacs. OPERATIONS Inspite of tremendous pressure, on Companys profits, of adverse fluctuations in Foreign Exchange and other factors, your Company has been able to post a profit after tax of Rs.348 lacs and cash accruals of Rs.500 lacs as compared to profit after tax of Rs. 447 lacs and cash accruals of Rs. 534 lacs during the previous year. The Turnover increased to Rs. 11737 lacs from Rs. 8004 lacs recording a growth of 46%. The statement showing Projections V/s Performance has been given in Annexure - C forming part of this report. FUTURE PROSPECTS With the completion of modernisation programme at Mandi Gobindgarh, the Company expects to significantly improve the profitability. The bottom line of the Company will further improve with the commissioning of the Knitwear Project. DIRECTORS. IDBI has nominated Mr. M.F. Dcosta as a Director on the Board of Directors of your Company. Nomination of a Director was one of the condition of the sanction of Working Capital Loan and Term Loan sanctioned by IDBI. Mr. Ravinder Kumar Sachdeva and Mr. Sohan Lal Kalra retire by rotation and being eligible, offers themselves for re- appointment. AUDITORS M/s. Datta Singla Co., Chartered Accountants, retire at this Annual General Meeting and being eligible, offer themselves for re-appointment. The Company has received a certificate from them that re-appointment if made, will be in conformity with the Provisions of Section 224 (1B) of the Companies Act, 1956. AUDITORS REPORT The observations of the Auditors and Notes on accounts are self- explanatory. PUBLIC DEPOSITS The Fixed Deposits mobilised from the share holders and public as on 31st March, 1996 aggregate to Rs.158.14 lacs. During the year under review there were no deposits which were overdue or unclaimed. The company has complied with the provisions of Section 58-A of the Companies Act, 1956 and rules made thereunder. STATUTORY INFORMATION Information pursuant to Clause (e) of Sub-section (1) of Section 217 of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the Board of Directors) rules 1988 is annexed hereto (Annexure A) and the same forms an integral part of this report. PERSONNEL Industrial relations continue to be cordial throughout the year. Your Directors are pleased to place on record their appreciation for the dedicated services rendered by the Officers, staff and workers of the Company. The particulars of employees as per section 217(2) of the Companies Act, 1956 read with Companies (Particulars of employees) rules, 1975 are set out in the Annexure hereto (Annexure B) and form part of this report. ACKNOWLEDGEMENTS The Directors wish to thank the Central Government, Governments of Punjab, Haryana & Rajasthan, Financial Institutions, Companys Bankers, Customers and Suppliers for all the help and encouragement they extended to the Company. Your Directors deeply acknowledge the trust and confidence you have placed in this Company. ANNEXURE TO THE DIRECTORS REPORT Statement of particulars under Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988. A. Conservation of energy. The company constantly endeavour to conserve and optimise the use of energy. The details of conservation of power are given as under : 1995-96 1994-95 1. ELECTRICITY Purchased unit (KWH) 46787904 46972154 Total amount (Rs.) 93374862 83942566 Rate per unit (Rs.) 2.00 1.79 2. Consumption per unit 1102 1101 of production: Electricity (Unit per MT) B. Research, Development and Technology absorption: 1. The Company constantly endeavours to bring improvement in all operational areas for better productivity. 2. The company used foreign exchange for the import of raw material amounting to Rs.1272.73 lacs during the year under review. Projections VS. Performance for the year 1995-96 (Rs. in lacs) Particulars Projections as per Prospectus Performance dated 30th October, 1995 Total Income 10410 11861 Profit after tax 555 348 Dividend % 20 12 The profits for year 1995-96 are lower than projections due to adverse impact of Foreign Exchange fluctuations and other uncontrollable factors. In order to conserve resources for the speedy implementation of the Projects, Board of Directors have recommended the dividend @ 12%. For and on behalf of the Board PAWAN SACHDEVA Chairman & Managing Director Place : New Delhi Dated : 7th August, 1996.