Atlas Cycle Industries
BSE: 505029 | NSE: ATLASCYCLE | ISIN: INE446A01017 | Miscellaneous
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Directors Report | Year End : Mar '08 |
The directors have pleasure in submitting their Fifty seventh Annual
Report together with the audited accounts of the Company for the year
ended 31st March, 2008.
FINANCIAL HIGHLIGHTS (Lac/Rs.)
2007-08 2006-07
OPERATING PROFITS/(LOSSES) 1803.57 (2489.95)
ADD : PROFIT ON SALE OF ASSETS 32.96 10064.23
ADD : PROFIT ON SALE OF
MUTUAL FUND 83.14 84.86
ADD : DIVIDEND INCOME 111.11 227.21 78.05 10227.14
2030.78 7737.19
LESS : INTEREST 948.10 703.16
DEPRECIATION 640.78 1588.88 450.75 1153.91
441.90 6583.28
LESS : PROVISION FOR TAX 241.50 1217.00
200.40 5366.28
ADD : PROFIT BROUGHT FORWARD 316.05 120.97
516.45 5487.25
DIVIDEND
Your directors recommend dividend @ 45 % p.a. on 32,51,919 equity
shares for the year under report.
The amount of dividend will total Rs. 146.34 lacs (Previous year Rs.
146.34 lacs).
PRODUCTION
2868214 bicycles were produced during the period under consideration.
SALES
Sales during the year amounted to Rs. 56239.87 lacs including the sales
to foreign countries.
EXPORTS
During the period under consideration your Company exported bicycles
and bicycle components to several countries, thereby earning valuable
foreign exchange of Rs. 2315.11 Lacs.
The Company continued its efforts to increase export sales due to which
it achieved better export earnings than last year, despite stiff
competition.
PERFORMANCE OF THE UNITS
The Company achieved higher production during the year compared to
previous year. Sahibabad plant added a new state-of-the-art paint
plant during the year to improve the aesthetics of its bicycles. The
unit also introduced electric bikes in the market with technical
support from companies based in Korea and China.
The Tube Mill was shifted form Gurgaon to Bawal during previous year.
The operations were streamlined during the year. By the end of the year
the operations had come to the same level as was being performed at
Gurgaon plant. The teething trouble for new technology upgradation was
over and the plant is now running smoothly.
Further the Company introduced number of new models in all segments
like fancy gents, ladies and kids segments. A number of process
improvement have been done resulting in improvement in quality and cost
reduction.
CAPITAL EXPENDITURE
During the year, the Company acquired capital assets worth Rs. 2577.69
lacs as against Rs. 3719.87 lacs in the previous year. This includes
capital assets worth Rs. 850.47 lacs under construction/installation as
against Rs. 332.36 lacs in the previous year.
DEPOSITS (INCLUDING LOANS FROM MEMBERS)
a) Total number of depositors on 31.03.2008 who have not claimed their
deposits after the date on which their deposits became due for payment
-56.
b) The aggregate amount of deposits due to the depositors on 31.03.2008
who have not claimed their deposits, including interest accrued, if
any, after the dates on which their deposits became due for payment Rs.
12.99 lacs.
Deposits aggregating Rs. 4.60 lacs pertaining to 18 depositors have
since either been renewed or paid. Further 3 unclaimed deposits
aggregating to Rs. 0.41 lac have since been credited to Investors
Education and Protection Fund. The remaining depositors whose deposits,
including interest, amount to Rs. 7.97 lacs have not sent any
instructions for the disposal of their matured deposits. These will be
renewed or repaid as soon as instructions are received from the
concerned depositors. CONSERVATION OF ENERGY SONEPAT UNIT The
following measures were taken for Conservation of energy :-
A) Use of 5 HP Air Blower in place of 25HP Air Blower supplying air to
Granodising plant in Paint Shop thus saving of around Rs.0.33 Lac per
month.
B) Discontinuing the use of electric furnaces in Heat Treatment
sections thus saving electric energy by 50 KW per hour i. e. Rs. 1.10
Lac per month.
C) Replacement of power capacitors in Switch Board to increase power
factor from 0.95 to 0.96.
Further the unit is in process to use of 3 ton coal/wood fired Steam
Boiler in place of two 4 ton oil fired Steam Boilers which will
decrease the cost of fuel consumption by Rs.48 Lac per annum.
SAHIBABAD UNIT
Eposy Coating of paint in the plant has been introduced to achieve fuel
saving.
MALANPUR UNIT
Better and fuel efficient techonology is being introduced and
computerized controls are being installed in the burners. A very tight
maintenance schedule is being maintained for better efficiency.
Additional investment is being made in more energy efficient Metal
Finishing Plant. The above measures will give lasting benefits to the
Company.
TECHNOLOGY ABSORPTION
1. Specific areas In which R&D carried out by the Company :-
Sahibabad Unit installed and commissioned a new sophisticated painting
plant suitable to do painting wet over wet to improve upon the glow and
life of paint. Further the Unit also installed another cooling tower in
Debrassing Plant to achieve better finish. Further we worked during
the year, substantially on design and development of new models of
bicycles and upgrading/revamping of existing models and on improvement
of manufacturing processes.
2. Benefits derived as a result of the above R & D:-
New and upgraded models were introduced in the market during the year.
Cost reduction measures and improvement in the manufacturing processes
have helped in increasing the Companys market share despite adverse
market conditions.
With the installation of new painting plant, production capacity could
be increased to meet the increased demand and to compete in the market
for fancy and conventional bicycles.
3. Future Plan of action :-
Development of new models, revamping of existing models, improvement in
manufacturing techniques and finishing process, installation of
sophisticated and latest plants to meet the increased demand of
bicycles with better finish and above all to achieve the foregoing at
minimum cost without compromising on quality.
4. Expenditure on R & D :-
(a) Capital Nil
(b) Recurring Rs. 3.93 Lacs
(c) Total Rs. 3.93 Lacs
Total R&D expenditure as a
% of total turnover 0.007
Technology absorption, adaptation and Innovation :-
1. Efforts. In brief, made towards technology absorption, adaptation
and Innovation:-
Sonepat Unit developed new tube bending press tools which were replaced
with manually operated bending fixtures for production.
2. Benefits derived as a result of the above efforts
The new tube bending press tools have helped improve productivity.
FOREIGN EXCHANGE EARNING AND OUTGO
Total foreign exchange earned : Rs. 2315.11 lacs Total foreign exchange
used : Rs. 208.04 lacs
PARTICULARS OF EMPLOYEES
The information required under section 217(2-A) of the Companies Act,
1956 and the rules framed thereunder relating to particulars of
employees is given in the annexure to this report.
LISTING OF COMPANYS EQUITY SHARES
Your Companys shares continue to be listed on Delhi, Bombay and
National Stock Exchanges. The Annual Listing Fee for the year
2008-2009 has been paid to all the three stock exchanges.
SUBSIDIARY COMPANIES
Statement of Accounts of the subsidiaries together with statement under
section 212 of the Companies Act, 1956, are annexed herewith.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement of Section 217(2AA) of the Companies Act,
1956, Directors hereby confirm that:
I. in the preparation of the Annual Accounts, the applicable
accounting standards have been followed along with proper explanations
relating to material departures.
II. The directors had selected such accounting policies and applied
them consistently and made judgements 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 31st March, 2008 and of the profit of the Company
for that period.
III The directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
tor preventing and detecting fraud and other irregularities, to the
best of the knowledge and ability of the Directors.
IV The directors had prepared the Annual Accounts on a going concern
basis.
CORPORATE GOVERNANCE
A separate report on Corporate Governance is attached as a part of this
report (Annexure-1).
The Management Discussion and Analysis Report forms a part of the
Corporate Governance report.
AUDITORS
M/s Mehra Khanna & Company, Chartered Accountants, retire at the
forthcoming Annual General Meeting and, being eligible, offer
themselves for reappointment.
DIRECTORS
S/Shri Hira Lai Bhatia and Hari Krishan Abuja are retiring by rotation
at this Annual Generai Meeting and, being eligible, offer themselves
for reappointment.
Your directors like to take the opportunity to place on record their
appreciation of the contribution made by employees at all levels.
In the end, your directors wish to express their gratitude and
appreciation to Central and State Governments, and Companys bankers
for the continued support, assistance and encouragement accorded to the
Company.
HARI KRISHAN AHUJA
HIRA LAL BHATIA
ISHWAR DAS CHUGH DIRECTORS
JAI NARAIN SAWHNEY
PRITHVI RAJ CHAWLA
New Delhi, the 21st August, 2008 |
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| Source : Religare Technova | |
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