To The Members of Aditya Ispat Limited, Hyderabad
The Directors take pleasure in presenting the Twenty First Annual
Report on the affairs of the Company for the financial year 2011-2012
together with the Audited Financial Statements and Report of the
The overall performance of the Company for the financial year 2011-12
is summarized as under:
( Rs. in Lakhs)
S.No. Particulars 2011-2012 2010-2011
1. Sales ( Gross) 1815.00 1441.50
Less : Excise Duty 133.42 111.10
Sales ( Net) 1681.58 1330.40
2. Other Income 1.56 1.36
Total Revenue 1683.14 1331.76
3. Gross Profit before Finance Costs,
Depreciation, & taxation 106.84 82.80
4. Financial Costs 59.52 38.96
5. Depreciation 15.29 12.97
6. Profit before tax 32.03 30.87
Less: Provision for current tax 8.60 4.96
Less : Provision for Deferred Tax 1.28 4.63
Net Profit(loss) after tax 22.15 21.28
Add: Balance from previous year 91.68 70.4
Surplus carried to Balance Sheet 113.83 91.68
During the year 2011-12, the Company has posted a turnover of Rs.
1815.01 lakhs as against Rs. 1441.50 lakhs in the previous year and
has earned net profit of Rs. 32.03 lakhs before tax compared to
previous year''s profit of Rs. 30.87 lakhs. There is an improvement in
profitability due to increase in turnover and on account of cost
effective means adapted by the management for production. However on
account of inadequate profits, the Board has not recommended any
dividend nor any transfer to reserves.
Indian Steel demand growth is expected to remain subdued due to
slowdown in investments and delayed start-up of industrial projects.
However,the automotive/industrial segment, it is expected to grow by
11-13% in Financial year 2012-13. As per world steel forecasts, steel
demand in India should grow up by 6.9% in 2012 and the growth should
accelerate to 9.4% in 2013.
Your Company has registered increase in sales Turnover as well as
Profitability during the year under review. The company is making all
efforts to improve the quality of its products, sales network and
The company has made arrangements with its Banker to enhance cash
credit limit from Rs. 400 lacs to Rs. 600 lacs to meet its working
capital requirements. This will help Company to boosts its turnover in
the coming years.
Shri H.M.Duggar retires by rotation and being eligible offers himself
for reappointment. The Board recommends his reappointment.
DIRECTORS'' RESPONSIBILITY STATEMENT:
In accordance with the provisions of Section 217(2AA) of the Companies
Act,1956, your Directors state:
1. That the accounting standards to the extent applicable to the
Company have been followed in the preparation of the annual accounts
and there are no material departures
2. That the accounting policies selected by the Board for the purpose
of preparation and presentation of the financial statements have been
and are being applied consistently and reasonable and prudent judgments
and estimates (wherever applicable) have been made for the said
purpose, so as to give a true and fair view of the affairs of the
Company as at the end of the financial year under review and of the
profit and loss for the said year.
3. That proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of your company and for
preventing and detecting fraud and other irregularities.
4. That the annual Accounts have been prepared on a going concern
M/s. Dagliya & Co, Chartered Accountants, Secunderabad, the Auditors of
the company retire at the conclusion of the ensuing Annual General
Meeting and are eligible for reappointment. The Board recommends their
Your Company have appointed M/s Sagar & Associates, Cost Accountants,
Hyderabad, as Cost Auditor, with the approval of the Central
Government, for audit of cost records maintained by the Company for the
financial year ended 31st March, 2012. The due date for filing the Cost
Audit Reports is 30th September, 2012.
The shares of your company are listed on Mumbai and Kolkata Stock
PARTICULARS OF EMPLOYEES U/S 217(2A) OF THE COMPANIES ACT, 1956:
There are no employees whose particulars are required to be disclosed
pursuant to the provisions of Section 217 (2A) of the Companies Act,
During the year under review, the company has not accepted any deposits
under Section 58A of the Companies Act 1956 read with Companies (
Acceptance of Deposits) Rules, 1975.
CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY
ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:
Information regarding Energy Conservation, Technology Absorption,
Foreign Exchange Earnings and outgo in accordance with Section 217
(1)(e) of the Companies Act, 1956 read with Companies ( Disclosure of
particulars in the report of Board of Directors) Rules 1988, forming
part of the Directors Report for the year ended 31st March, 2012 are as
1. Conservation of Energy: The company''s operations require low energy
consumption. Adequate measures are taken to conserve energy wherever
possible. The details required are attached herewith.
2. Technology Absorption:
a. Research & Development There is no specific Research and
Development activity carried out
by the Company during the year.
b. Technology Absorption NIL
3. Foreign Exchange Earning
and Outgo NIL
The company has implemented the Code for Corporate Governance as
stipulated under the revised Clause 49 of the Listing Agreement. A
separate report on Corporate Governance is annexed to this report.
CODE OF CONDUCT
The Company has adopted a uniform Code of Conduct for Directors and
Senior Management and above Officers level to ensure ethical standards
and ensure compliance to the laid down standards.
DEMATERIALISATION OF SHARES:
M/s. X.L Softech Services Limited, Hyderabad were appointed as
Depository Registrars for dematerialization of shares as well for
transfer of physical shares were entrusted to them.
The ISIN of dematerialized share of the Company allotted by NSDL and
CDSL is INE570B01012.
The Board takes this opportunity to express its deep gratitude for the
continued co-operation and support received from its Bankers, State and
Central Governments, the customers, share holders, business associates
and employees during the year under review.
On behalf of the Board of Directors
CHAIRMAN & MANAGING DIRECTOR
Date : 31st August, 2012