elango steels ltd share price Directors report

1995 ELANGO STEELS LIMITED DIRECTORS REPORT Your Directors have pleasure in presenting Sixth Annual Report with the Audited Accounts of your Company for the year ended 31st March 1995. DIVIDEND Your Directors already declared and paid a Dividend of 10% amounting to Rs. 38.16 Lakhs for the year 1994-95. PERFORMANCE AND FUTURE PROSPECTS Production is steadily increasing and the Company is confident of earning more profits during this year. The second furnace could not be installed last year due to non availability of power at the right voltage for the expanded capacity. A new power substation is being erected by the Electricity Board and is expected to be completed by March 96. Once it is ready second furnace will be installed. FUTURE OUTLOOK The Company plans to enter into activities like Power Generation, Ferro Alloys manufacturing and Financing etc. The Company plans to invest in the above through formation of subsidiary Companies in the future. DIRECTORS During the year under review Shri. M.A.A. Annamalai has vacated the Directorship of the Company. The Board places on record the services rendered by him during the tenure of the office. Shri. P.E. Subramaniam, Shri. R. Marimuthum, Shri. K. Murugan are retiring by rotation and being eligible, offer themselves for re-appointment. Shri. Sa. Ganesan, who was appointed as Director Marketing resigned from the post in April 1995 and he continues as a Director in the Company. DEPOSITS Your Company has not accepted any Deposits from the Public. AUDITORS M/s. C. Ramasamy & B. Srinivasan, Chartered Accountants, the auditors of your Company retire at the conclusion of the forthcoming Annual General Meeting and are eligible for reappointment. Regarding the report of the Auditors on Internal Control System and Internal Audit the Directors wish to state as follows : The Company has employed qualified people in the respective areas in the current year and comprehensive Internal Control System is being designed and implemented. PERSONNEL None of the employees of your Company were drawing a remuneration exceeding Rs. 3,00,000/- p.a. or Rs. 25,000/- p.m. or part thereof. Hence no particulars of employees as per Section 217 (2A) of Companies Act., 1956, need to be furnished. Conversion of Energy, Technology Absorption and Foreign Exchange Earning and out go. Please Refer Annexure A, ACKNOWLEDGEMENT Your Directors would like to place on record their deep appreciation and gratitude towards the members for their continued support and confidence. The Directors wish to thank and deeply acknowledge the co-operation and assistance extended by the financial institution, Bankers, Govt. authorities and other business associates. The Board would also like to take this opportunity to commend the employees of the Company of all levels for their contribution. A. Power and Fuel Consumption Current Year Previous Year 1994-95 1993-94 1. Electricity (a) Purchased Unit 5585360 NIL Total Amount Rs. 90,72,676 Rate/Unit Rs. 1.62 NIL (b) Own Generation i) Through diesel generator Unit per Ltr. of diesel oil Cost/Unit NIL NIL ii) Through steam turbine/generator (unit) Unit per ltr of fuel oil/gas cost/unit NIL NIL 2. Coal (Specify quality and where used) Quantity (tonnes) Total Cost Average Rate NIL NIL 3. Others/Internal generation Quantity Total Cost Rate/Unit NIL NIL B. Consumption per unit of production Electricity (Units per ton) 507 NIL Coal (specify quality) Others (specify) FORM B : A. Technology absorption NIL NIL B. Foreign Exchange Earnings NIL NIL C. Foreign Exchange Outgo Rs. 10,44,252 NIL For and on behalf of the Board S. ELANGOVAN, MANAGING DIRECTOR Place : Madras Dated : 11.10.95