The Directors take pleasure in presenting their Annual Report together
with the Audited Statements of Accounts for the year ended 31st March,
The financial results of the Company for the year 2011-12 are
summarized below :
(Rs. in lakhs)
Sales and other revenue 2,560.42 1,886.51
Profit before Finance charges, 258.40 (27.86)
Depreciation, Tax & other adj''s
Less: Finance charges 0.55 1.81
Profit before Depreciation,
Tax & other adj''s 257.85 (29.67)
Less: Depreciation 80.19 78.40
Profit before Tax & other adj''s 177.66 (108.07)
Less: Provision for current tax 55.80 --
Taxes of earlier years (0.29) 0.16
Deferred Tax Asset/Liability adj''s (10.58) (26.43)
Profit before appropriations and 132.73 (81.80)
carried to Balance Sheet
Your Directors are to report that, with the improved supply of
Hydrofluosilicic Acid, a major raw material for producing Aluminium
Fluoride (AIF3), the Company produced 4,436 MT of AIF3 during the year
under review as against 3,894 MT during 2010-11. During the year the
Company sold 4,451 MTAIF3 as against 3,963 MT in 2010-11. With the
increased sale price of AIF3, Sales and other Income during the year
under review, reported at Rs. 2,560.42 lakhs as against Rs. 1,886.51
lakhs during 2010-11. With efficient working capital management,
planned other income and with effective cost control measures, the
Company posted a net profit of Rs. 132.73 lakhs for the year under
review as against net loss of Rs. 81.80 lakhs in 2010-11.
In view of the proposed shifting of the Plant to the place where the
Company will get assured acid supplies, your Directors are not
recommending any Dividend.
OUTLOOK FOR THE CURRENT YEAR
The sale price of Aluminium Fluoride for the current year has
increased. However, the Company has a huge pending export order, which
is to be executed at the 2009 recession price levels. To improve the
profitability levels compared to the last year, the Company requested
and obtained the overseas client''s permission for executing part
pending order in 2012-13 and agreed to complete the balance in 2013-14.
Though the adjacent fertilizer complex supplied record low supplies of
742 MT acid in 2011-12, the Company is confident of getting its
required acid supplies from long distance suppliers, to maintain the
last year''s (2011-12) AIF3 Production & Sales levels and to post good
During the year under review, the Company registered an Export sale of
Rs. 85.78 lakhs as against Rs.410.18 lakhs during 2010-11.
ENVIRONMENT & SAFETY MEASURES
Following the ISO Certifications of 9001,14001 and OHSAS 18001 the
Company will continue taking all the necessary measures to maintain
high standards of Environment, Clean and Green Belt, Water Harvesting,
Pollution Control, Health and '' Safety Precautions. The Company
proposes an energy audit during the current year.
All the properties of the Company including Buildings, Plant and
Machinery and Stocks have been adequately insured.
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Dr. T.R. Ramachandran and Sri
Ashok Vemulapalli, Directors will be retiring by rotation at the Annual
General Meeting and are eligible for re-appointment.
M/s Rao & Kumar, Chartered Accountants, Visakhapatnam, the Auditors of
the Company will be retiring at the conclusion of this Annual General
Meeting and have conveyed their consent for re-appointment.
M/s D.V.J. Rao & Associates, Cost Accountants, Visakhapatnam as Cost
Auditors have been appointed to conduct Cost Audit for the year ended
31 March, 2012. They will submit their report to the Board of Directors
before filing it to the Ministry of Corporate Affairs, New Delhi.
As per the provisions of Section 217 (2AA) of the Companies Act, 1956,
i. In the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures.
ii. The Directors have selected such accounting policies and applied
them consistently and made judgements and estimates that are reasonable
and prudent so as to give true and fair view of the state of affairs of
the Company at the end of the financial year and of the Profit and Loss
of the Company for that period.
iii. The Directors have takers proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
iv. The Directors have prepared the accounts on a going concern basis.
PARTICULARS OF EMPLOYEES
There are no employees falling within the purview of the Section
217(2A) of the Companies Act, 1956 read with Company''s (Particulars
of Employees) Rules, 1975.
Additional information on conservation of energy, technology absorption
and foreign exchange earnings and outgo as required to be disclosed in
terms of Section 217(1)(e) of the Companies Act, 1956 read with the
Companies (Disclosure of particulars in the Report of the Board of
Directors) Rules, 1988 is given in Annexure -1 and forms part of this
Pursuant to Clause 49 of the Listing Agreement, your Company has to
mandatorily comply with the requirements of Corporate Governance. A
report of compliance of Corporate Governance is annexed together with a
Certificate from the Auditors of the Company on compliance.
The Board of Directors of the Company take this opportunity to place on
record their appreciation of the cooperation and support extended by
State Bank of India, IDBI Bank Ltd., HDFC Bank Ltd., Axis Bank Ltd. and
Punjab National Bank. Your Directors also appreciate the sincere and
efficient services rendered by the Employees of the Company at all
levels towards successful working of the Company.
For and on behalf of the Board
Visakhapatnam Dr. T.R. RAMACHANDRAN
30 July, 2012 Director