Adhunik Metaliks
BSE: 532727 | NSE: ADHUNIK | ISIN: INE400H01019 | Steel - Sponge Iron
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Directors Report | Year End : Mar '08 |
Financial highilights
Rs. in lakhs
2008 2007
Sales, services and job work 1,10,404 81,154
Less: excise duty 9,945 7,579
1,00,459 73,575
Profit before interest, depreciation and tax 17,134 12,329
Less: Interest 5,676 2,618
Depreciation 2,325 1,134
Profit before tax 9,133 8,577
Less: Provision for taxation
Current tax 1,042 803
Deferred tax -
Fringe benefit tax 45 27
Profit after taxation 8,046 7,747
Add: Balance brought forward from previous year 10,650 3,971
Profit available for appropriation 18,696 11,718
Less: Proposed dividend 1,095 912
Dividend tax 186 155
Profit carried to Balance Sheet 17,415 10,651
Dividend
The Board, for the year ended 31 st March, 2008, recommended a dividend
of Rs, 1.20 per share (Re. 1/- per share for the year ended 31 st
March, 2007), subject to approval of the shareholders at the Annual
General Meeting. The dividend will be paid on 9,12,31,247 ordinary
shares of the Company (9,12,31,247 ordinary shares for the year ended
31st March, 2007).
Operations
During the year, your Company witnessed a robust growth in sales and
profit figures, coupled with wider geographic extension of customer
base and extension of the product mix to growing sectors. The
production of billets increased from 1,78,000 MT in the last year to
2,22,000 MT in year 2007-08. Your Company also capitalised on higher
realisations, a complement to its service, product mix and production.
Billet realisations strengthened from Rs. 20,153 to Rs. 25,341 per MT
and rolled products from Rs. 31,598 to Rs. 33,617 per MT across the
period. Your Company evolved a product mix from 79-21 (semi-rolled) to
an enhanced value-addition of 61-39. Your Company, during the year,
commissioned its vacuum degassing unit, which reduced gas traces and
metal impurities, enhancing ductility and longevity. Cost of production
also marked a reduction during the last quarter of the fiscal year due
to the commissioning of iron ore fines usage in the sinter plant.
Expansion
During the year, your Company completed the second phase of its
expansion in terms of increasing its production capacity from 0.25
million MT to 0.46 million MT. The ferro-alloy plant with a capacity of
6 MVA commenced production during the year. Your Company also
commissioned a rolling mill, with 2,00,000 TPA steel capacities during
November 2007, which had reported a capacity utilisation of 50%. During
the year, the Company had also set up a 17 MW captive power plant using
the waste heat recovery technology, thus leveraging the generation of
waste heat from the DRI plant.
Subsidiary
During the year under review, your Company acquired Orissa Manganese
and Mineral Pvt. Limited (converted into public company subsequently)
on April 5, 2007, having iron ore and manganese ore reserves of 90MN
and 50MN tons respectively. These iron ore mines possess quality iron
ore with 64% plus Fe content and manganese ore with 34-36% manganese
content. The mines are located in
Jharkhand and Orissa, respectively.
Your Company also acquired VCube Forge (India) Limited (subsequently
its name was changed into Neepaz VForge (India) Limited) on October 4,
2007, which has a manufacturing facility of forged machine parts
catering to the demands of the automobiles and railways segment, with
an installed capacity of 24,000 TPA.
The Ministry of Corporate Affairs, Government of India, vide letter
dated 25/06/2008 directed that the requirement to attach various
documents with respect to subsidiary Companies, namely Orissa Manganese
and Minerals Limited, Neepaz VForge (India) Limited and Unistar
Galvanisers and Fabricators Pvt. Limited, as set out in Sub-section (1)
of Section 212 of the Companies Act, 1956, shall not apply to the
Company. Accordingly, the Balance Sheet, Profit & Loss Account and
other documents of the subsidiary Companies are not attached with the
Balance Sheet of the Company. Financial information of the subsidiary
Companies is disclosed in the Annual Report. Investors who wish to
have a copy of annual accounts and detailed information on the
subsidiaries may write to the Company. The annual accounts of the
subsidiary Companies will also be kept open for inspection by any
investor at the corporate office of the Company. The consolidated
financial statements presented by your Company includes financial
results of its subsidiaries.
Personnel:
At Adhunik, values make for more than just a powerful tagline. We have
a proven role model for creating wealth ethically and legally. We
engage employees through a fair and rewarding work environment.
Information in accordance with the provisions of Section
217(2A) of the Companies Act, 1956, read with the Companys
(Particulars of Employees) Rules, 1975, is given in the annexure
attached hereto, forming a part of this report.
Directors
In accordance with the provisions of the Companies Act, 1956, Mr. Jugal
Kishore Agarwal, Mr. Nirmal Kumar Agarwal and Mr. Mahesh Kumar Agarwal
retires by rotation at the ensuing Annual General Meeting and being
eligible offer themselves for re-appointment.
Your Company received a notice from a member under the provisions of
Section 257 of the Companies Act, 1956, nominating re-appointment of
Dr. Ramgopal Agarwala in the ensuing Annual General Meeting. Dr.
Agarwala was appointed on the Board of the Company as an Additional
Director on January 28,,2008 and holds his office till the ensuing
Annual General Meeting (AGM).
Directors Responsibility Statement :
Pursuant to Section 217 (2AA) of the Companies Act, 1956, your
Directors confirm and state that:
(i) In the preparation of the annual accounts for the financial year
ended 31st March, 2008, the applicable accounting standards were
followed so that there were no material departures;
(ii) The Directors selected such accounting policies, applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state-of-affairs of
the Company as at March 31, 2008 and of the profit of the Company for
that period;
(iii)The Directors took proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
(iv)The Directors prepared the annual accounts on a going concern
basis.
Your Company has been assigned an Issuer Rating of A- (ind) [A minus
ind] by Fitch Ratings India Private Limited for its long-term bank
loans and working capital limits denoting a strong credit risk relative
to other issuers or issues in the country. The short- term bank loans
were rated as F1(ind) [F one ind] indicating the strongest capacity
for timely payment of financial commitments relative to other issuers
or issues in the country. The outlook on the rating is stable by the
same rating agency.
Fitch Ratings India Pvt. Limited affirmed F1(ind) [F one ind] rating to
the commercial paper program of the Company.
Corporate Governance
The conditions laid down in the amended Clause 49 of the Listing
Agreement with the stock exchanges are complied with and certified from
Mr. B.P. Dhanuka, practicing Company Secretary regarding compliance of
conditions and provisions of the Corporate Governance, given as
annexure to the Report.
Code of conduct
The Board laid down a code of conduct for all the Board members and
senior management of your Company.
The Board Members and senior management personnel have affirmed
compliance with the Code for the financial year 2007-08. A certificate
from the CEO is annexed in this regard.
None of the Directors of the Company are disqualified as per the
provisions of Section 274(1 )(g) of the Companies Act, 1956. The
Directors have made necessary disclosures, as required under the
various provisions of the Act and Clause 49 of the Listing Agreement.
Information as required by Section 217(1)(e) of the Companies Act,
1956, read with the Companys (Disclosure of Particulars in the Report
of Board of Directors) Rules 1988, is given in the annexure attached
hereto, forming a part of this report.
The Consolidated Financial Statements prepared by your Company, in
accordance to the applicable accounting standards issued by the
Institute of Chartered Accountants of India and the same together with
the Auditors Report, thereof form a part of the Annual Report.
The Auditors, M/s S. R. Batliboi & Co., Chartered Accountants, retire
at the ensuing Annual General Meeting and have expressed their
willingness to be re-appointed.
The comments made by the auditors in their report are self-explanatory.
As a measure of good Corporate Governance practice, the Board of
Directors of the Company appointed Mr. B.P. Dbanuka, practicing
Company Secretary (past President of the Institute of Company
Secretaries of India), to conduct independent secretarial audit of the
Company. The Secretarial Compliance Certificate for the financial year
ended March 31, 2008, is provided in the Annual Report.
The Secretarial Compliance Certificate confirms that the Company has
complied with all the applicable provisions of the Companies Act, 1956,
Depositories Act, 1996, Listing Agreements with the stock exchanges,
Securities Contract (Regulation) Act, 1956, and all the regulations of
SEBI as applicable to the Company, including the SEBI (Substantial
Acquisition of Shares and Takeovers) Regulations, 1997 and the SEBI
(Prohibition of Insider Trading) Regulations, 1992.
The Board takes this opportunity to express its heartfelt appreciation
for the excellent support and co-operation received from your Companys
customers, suppliers, government authorities, bankers, investors,
financial institutions and shareholders for their consistent support to
the Company. The Directors also sincerely acknowledge the significant
contributions and the dedicated services of all the employees.
For and on behalf of the Board
G.D. Agarwal Manoj Kumar Agarwal
Chairman Managing Director
Registered Office:
14 Netaji Subhas Road, Kolkata 700001
Date: June 30, 2008 |
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| Source : Religare Technova | |
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