| Dear Members,
The company has delivered another year of steady performance in the
backdrop of continuing sluggishness in the macro-environment. Your
Director have pleasure in presenting before you fourteenth Annual
Report of the business and operation of the company and the audited
annual accounts for the financial year ended 31st March, 2015.
FINANCIAL RESULT
(Rs. In Lakhs)
Particulars 2014-15 2013-14
Sales 26,246.70 22,746.06
Less : Excise Duty 392.84 318.09
Total Income 25,853.86 22,427.97
Less : Expenditure 24,455.91 21,303.12
Operating Earnings / (Loss) before Financial
cost, Depreciation & Tax 1,397.95 1,124.85
Less : Financial cost 734.86 609.05
: Depreciation 180.88 140.99
Add : Other Income 15.76 55.93
Earnings / (Loss) before Tax 497.97 430.74
Less : Provision for Taxation 123.46 77.10
Profit/(Loss) after Tax 374.53 353.64
Add : Profit/(Loss) Brought Forward 1,044.40 690.76
Amount available for Appropriation 1,488.91 1,044.40
Less : Appropriation
Proposed Dividend 21.65 -
Surplus Carried Forward to Balance Sheet 1,397.26 1,044.40
Basic Earnings per share (face value of 2.02 1.91
Rs. 10/-each)
RESULT OF OPERATION AND STATE OF COMPANY'S AFFAIRS
The highlights of the Company's performance are as under:
During the current year of operations, your company has shown a good
improvement as the turnover has increased to the extent of 15.28% from
Rs 22427.97 Lakhs during F.Y.2013-2014 to Rs 25853.86 Lakhs during
F.Y.2014-2015
Company has witnessed a bit of slowdown as global aluminium prices
reduced however, company has managed to increase its profitability
against all odds.
During the Current year under review the company has decided to shift
the operations of Bhavnagar Plant to its Sangli Plant w.e.f 15th
November,2014. The decision was taken in order to capitalize the
benefits of economies of scale available due to mega size and scale of
operations at sangli plant.
FUTURE PROSPECTS
The fortunes of the Aluminum extrusion is closely linked with those of
the user industry. The Aluminum industry had been impacted during the
year due to a considerable slowdown of the manufacturing sector and
particularly the end user companies of aluminum. The industry has faced
its most formidable challenge still your company has been able to
maintain its volumes and margin
Your Company's main business is to manufacture aluminum
extrusions,ingots,and billets for varied industries. Your company has
seen considerable resilience,grit and determination during the year by
taking various initiatives to keep its pace to enlarge the market base
and share in particularly. And your company is also planning to
manufacture the others Non Ferrous alloys and it will create another
mile-stone for the company.
Your company expects that the policies of the new government at the
center will use a framework which shall act as a booster to user
industries which in turn will be beneficial to your company's fortune.
Your company is confident that it will surmount the macro environment
obstacles and achieve improved profitability in coming years.
On the horizon we see good days to start again at your Company
DIVIDEND
For approval of members at the ensuing 14th Annual General Meeting your
Directors are happy to recommend a dividend at 1% i.e. Paise 0.10/- per
equity shares which will absorb Rs 18.51 Lakh. The tax on aforesaid
dividend, to be borne by company,which will be Rs 3.14 Lakhs
ENVIRONMENT, HEALTH, SAFETY AND SOCIAL RESPONSIBILITY
The Company's commitment to preserve and enrich environment by
conducting all operations in an environment- friendly and safe manner
continues. We are continuing our initiatives to touch the lives of
communities in and around manufacturing units by supporting
environmental and health care projects as also educational programs.
Every plant is focused on drive safety work place initiatives, which
resulted in achieving a no fatal accident record. Regarding
environmental performance, we continued to strictly adhere to all
environmental conformances.
INTERNAL CONTROL SYSYTEM AND ADEQUACY
Your company maintains adequate internal control system in all area of
operations. Services of internal and external auditors are utilized
from time to time, as also in-house expertise and resources. The
company continuously upgrades these systems in line with the best
available practices.
These reports and deviation are regularly discussed with Management and
Committee Members and action taken whenever necessary.
An Independent Audit Committee of the Board reviews the adequacy of
internal control.
MAJOR EXPANSION PLANS
Projects are proceeding at place considered appropriate in the
prevailing economic situation global scenario and the company's
business strategy.
STEPS IN MANUFACTURING AND PROCUREMENT
Your company continues to focus on various initiatives to improve
operational efficiencies like improving yields, exploring new
geographies for entering new areas of business.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
As required under provisions of Section 134 of the Companies Act,2013
and read with Rule 8(3) of Companies (Accounts) Rules, 2014 details
relating to conservations of Energy, and foreign Exchange Earnings and
Outgo are given below:
Kala-Amb (HP)
A. POWER & FUEL CONSUMPTION -
Conservation of Energy 2014-2015 2013-2014
a) Electricity Purchased
(In Units) 1380260 1308900
Total Amount in (Rs. In Lakhs) 80.98 80.08
Rate/Unit (Rs.) 5.87 6.12
b) Furnace Oil & Other Fuel
Quantity (in Ltr) 358338 437506
Total Amount in (Rs. In Lakhs) 155.95 206.22
Rate/ Litre (Rs.) 43.52 47.14
c) Gas
Quantity (in Kgs.) 12274 9080
Total Amount in (Rs. In Lakhs) 9.21 8.79
Rate/ Kgs (Rs.) 75.05 96.77
The Company has been continuously attempting to create a conscious
awareness against excessive consumption and wastage at all levels.
B. CONSUMPTION PER UNIT OF PRODUCTION:-
Particulars 2014-2015 2013-2014
a) Electricity Purchased
Total Amount in (Rs. In Lakhs) 80.98 80.08
Production at Kala-Amb (in Kgs.) 2492822 2478701
Rate/Kgs. (Rs.) 3.25 3.23
b) Furnace Oil & Other Fuel
Total Amount in (Rs. In Lakhs) 155.95 206.22
Production at Kala-Amb (in Kgs.) 2492822 2478701
Rate/Kgs. (Rs.) 6.26 8.32
c) Gas
Total Amount in (Rs. In Lakhs) 9.21 8.79
Production at Kala-Amb (in Kgs.) 2492822 2478701
Rate/ Kgs (Rs.) 0.37 0.35
The Company is not in a position to compile and give information
relating to consumption per unit of production, since products are
having different processes of production. But efforts have been put to
compile the data presented.
Bhavnagar (Gujrat)
A. POWER & FUEL CONSUMPTION-
Conservation of Energy 2014-2015 2013-2014
a) Electricity Purchased
(In Units) 1440 2348
Total Amount in (Rs. In Lakhs) 0.16 0.27
Rate/Unit (Rs.) 10.90 11.41
b) Coke
Quantity (in Kgs.) 6300 22330
Total Amount in (' In Lakhs) 0.99 3.46
Rate/ Kgs (Rs.) 15.74 15.50
The Company has been continuously attempting to create a conscious
awareness against excessive consumption and wastage at all levels.
B. CONSUMPTION PER UNIT OF PRODUCTION:-
Particulars 2014-2015 2013-2014
a) Electricity Purchased
Total Amount in (Rs. In Lakhs) 0.16 0.27
Production at Bhavnagar (in Kgs.) 36554 107995
Rate/Kgs. (Rs.) 0.43 0.25
b) Coke
Total Amount in (Rs. In Lakhs) 0.99 3.46
Production at Bhavnagar (in Kgs.) 36554 107995
Rate/ Kgs (Rs.) 2.71 3.20
The Company is not in a position to compile and give information
relating to consumption per unit of production, since products are
having different processes of production.
Sangli (Maharashtra)
A. POWER & FUEL CONSUMPTION -
Conservation of Energy 2014-2015 2013-2014
a) Electricity Purchased
(In Units) 993712 549438
Total Amount in (Rs. In Lakhs) 66.64 46.90
Rate/Unit (Rs.) 6.71 8.54
b) Furnace Oil & Other Fuel
Quantity (in Ltr) 222192 217701
Total Amount in (Rs. In Lakhs) 96.85 89.30
Rate/ Litre (Rs.) 43.59 41.02
c) Coke
Quantity (in Kgs.) 25160 24439
Total Amount in (Rs. In Lakhs) 1.91 2.15
Rate/ Litre (Rs.) 7.61 8.81
The Company has been continuously attempting to create a conscious
awareness against excessive consumption and wastage at all levels.
B. CONSUMPTION PER UNIT OF PRODUCTION:-
Particulars 2014-2015 2013-2014
a) Electricity Purchased
Total Amount in (Rs. In Lakhs) 66.64 46.90
Production at Sangli (in Kgs.) 2162247 1564083
Rate/Kgs. (Rs.) 3.08 3.00
b) Furnace Oil & Other Fuel
Total Amount in (Rs. In Lakhs) 96.85 89.30
Production at Sangli (in Kgs.) 2162247 1564083
Rate/Kgs. (Rs.) 4.48 5.71
C) Coke
Total Amount in (Rs. In Lakhs) 1.91 2.15
Production at Sangli (in Kgs.) 98630 149387
Rate/Kgs. (Rs.) 1.94 1.44
The Company is not in a position to compile and give information
relating to consumption per unit of production, for each product
separately, since products are having different processes of
production.
C. TECHNOLOGY ABSORPTION, RESEARCH & DEVELOPMENT:-
The Company has incurred expenditure towards quality management,
quality control, and to improve the production capacity. The Company
has also undertaken cost reduction and cost control program to manage
and reduce the cost of production.
D. FOREIGN EXCHANGE INFLOWS & OUTFLOWS
(Rs. In Crores)
Particulars 2014-15 2013-14
Foreign Exchange Inflows Nil Nil
Foreign Exchange Outflows 58.46 46.28
(Actual Paid) (57.27) (48.53)
SHARE CAPITAL
The Paid up Equity Share Capital as on 31st March, 2015 was Rs 18.52
Crores. During the year under Review, the company has not issued shares
with differential voting rights, neither granted stock options nor
sweat equity shares.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS,
COURTS AND TRIBUNALS
No Significant and material orders has been passed by the regulator,
courts, tribunals impacting the going concern status and company's
operation in future.
AUDIT COMMITTEE
The Audit Committee of the Board of Directors of the company comprises
Mr. Ashok Surana as Chairman and Mr. Sunderlal Bothra, Mr. Kavindra Kr
Chhajer as members. The Company Secretary acts as Secretary of the
Committee. The Managing Director and Chief Financial Officer are
permanent invitees to the meeting. The details of all related party
transactions, if any, are placed before the Audit Committee. During the
Year there were no instances where the board has not accepted the
recommendation Audit Committee.
The Audit Committee has also been the responsibility of monitoring and
reviewing risk management assessment and minimization procedures,
implementing and monitoring the risk management plan and indentifying,
reviewing and mitigating all elements of risks which the Company may be
exposed to.
NOMINATION AND REMUNERATION COMMITTEE
A Nomination and Remuneration Committee was constituted with Mr. Ashok
Surana as Chairman and Mr. Nirmal Daga, Mr. Sardarmal Suthar as Members
of the Committees. The Company Secretary acts as the Secretary of the
Committee. The Company has delegated the responsibility for share
transfer and other routine share maintenance work to the Company
Secretary and to M/s Sharex Dynamics (India) Pvt Ltd, The Registrar and
Share Transfer Agent of the Company. All requests for dematerialization
and remateralisation of shares, transfer or transmission of shares and
other shares maintenance matters are completed within 10 days o receipt
of valid and complete documents. Minutes of the committee meeting are
circulated to all Directors and discussed at the Board Meeting.
VIGIL MECHANISM/WHISTLE BLOWER POLICY
In Compliances with provisions of Section 177(9) of the Companies Act,
2013 and Clause 49 of the Listing Agreement, the Company has framed a
Whistle Blower Policy/Vigil Mechanism to report concerns about the
Company's working or about any violation of its policies.
BOARD EVALUATION
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Board has carried out an annual performance
evaluation of its own performance, the director's individually as well
as the evaluation of the working of its Audit, Nomination and
Remuneration Committees.
RISK MANGEMENT
Risk Management is the process of identification, assessment, and
prioritization or risks followed by coordinated efforts to minimize,
monitor and mitigate/control the probability and/or impact of
unfortunate events or to maximize the realization of opportunities. The
Company has laid a comprehensive Risk Assessment and Minimization
Procedure, which is reviewed by the Audit Committee and approved by the
b Board from time to time. These procedures are reviewed to ensure that
executive management control risks through means of a properly defined
framework.
EXTRACTS OF ANNUAL REPORT
The details forming part of the extracts of the Annual Return in Form
MGT-9 as required under section 92 of Companies Act, 2013, is marked as
Annexure "A" which is annexed hereto and forms part of the Board
Report.
DECLARATION BY INDEPENDENT DIRECTOR
Mr. Ashok Surana, Mr. Nirmal Daga, Mr. Kavindra Kr Chhajer Mr. Vinod
Sohanlal Chordia and Miss Nikita Sand are Independent Directors on the
Board of the Company. The company has received declaration from all
Independent Directors of the company conforming that they meet the
criteria of Independence as prescribed both under the Companies Act,
2013 and Clause 49 of Listing Agreement.
SECRETARIAL AUDITORS
Pursuant to the provisions of Section 204 of Companies Act, 2013 and
Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014 the company has appointed Ms. Harsha Pugalia practicing Company
Secretaries to undertake the Secretarial Audit of the Company. The
Secretarial Audit Report for the financial year ended 31st March, 2015
is annexed herewith.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 134(3) (c) of the Companies Act, 2013, the
Directors to the best of their knowledge and belief confirm that :
i) in the preparation of the annual accounts for the financial year
ended 31st March,2015, the applicable accounting standards have been
followed;
ii) appropriate accounting policies have been selected and applied
consistently and made judgment 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 profit and loss of
the company for the period.
iii) proper and sufficient care have been taken for maintenance of
adequate accounting records in accordance with the provisions of the
companies Act,2013 for safeguarding the assets of the company and for
preventing and detecting frauds and other irregularities.
iv) the annual accounts have been prepared on a going concern basis.
v) Internal financial controls laid down by the Directors have been
followed by the company and such internal financial controls are
adequate and were operating effectively.
vi) proper system to ensure compliance with the provision of all
applicable laws were in place and were adequate and operating
effectively.
FORWARD LOOKING STATEMENT
This Report contains forward- looking statement that involves risks and
uncertainties. Actual results, performance or achievement could differ
materially from those expressed or implied in such forward looking
statement. Significant factors that could make a difference to the
Company's operations include domestic and international economic
condition affecting demand-supply and price conditions, foreign
exchange fluctuations, and change in government regulations, tax regime
and other statutes. The company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise. Readers are cautioned not
to place undue reliance on these forward- looking statements that
speaks only as of their dates. This Report should be read in
conjunction with the financial statements included herein and the notes
thereon
ACKNOWLEDGEMENT
Your Directors record their deep appreciation for the encouragement,
assistance and co-operation received from members, government
authorities, banks and customers. They also thanks them for the trust
reposed in the Management and wish to thanks all employees for their
commitment and contributions.
For and on Behalf of the Board
Sunderlal Bothra Sardarmal Suthar
Managing Director Director
Place : Mumbai
Date : 30th May, 2015
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