The are pleased to present the 24th Annual Report of the Company for the
Growth of the Indian economy
The Global Economy has entered into a very difficult phase
characterized by significant downside risks and fragility. The
financial mayhem generated by the deepening of the fiscal crisis in
Europe has spread to both developing and high income countries and is
generating significant headwinds.
Against a backdrop of an uncertain global environment, the Indian
economy faced twin macroeconomic challenges of managing growth and
containing inflation during the fiscal 2011-12. The factors which
influenced the current macroeconomic climate in India and interrupted
recovery were intensification of debt crises in Euro zone, political
turmoil in Middle East, fluctuating global commodity prices, hardening
of international prices of crude oil, stagnation in Japan, etc..
GDP is estimated to grow by 6.9 per cent in 2011-12, after having grown
at 8.4 per cent in preceding two years. Slowdown in comparison to
preceding two years is primarily due to deceleration in industrial
growth. India however remained front runner in economic growth in any
cross-country comparison. India''s GDP growth in 2012-13 is expected to
be 7.6 per Cent.
The Scenario of the Aluminum Extrusion Industry
The Aluminium Extrusion industry is characterized by high entry
barriers, due to the capital-intensive nature of the business. The
domestic primary aluminum industry is around 4-5 per cent of the global
aluminum industry. The Indian aluminum extrusions market has an
installed capacity of about 5,20,000 Metric Tonnes (MT) per annum. which
is likely to see a double digit growth over the next few years due to
robust demand from all its consumer segments, particularly Building &
construction, power and electrical and automobile sectors.
Architectural, building and construction sectors are the major users of
aluminium extrusions in India. The vibrant real estate sector will
increase the demand for extrusions in the coming years. Automotive
sector is growing at around 15% per annum and is expected to witness
similar growth trend for the next few years. Large investments are
proposed in the power sector and significant development is taking
place in the electronics sector. In India, mega and ultra-mega power
projects are being set up with a vision to make the country self
reliant in electricity. Some of the key applications for extrusion
include flat and tubular busbars, solar panels and heat sinks, etc.
Solar frames and mounting systems are also emerging as key applications
and the demand from this sector is expected to increase rapidly in the
next few years. Demand for extrusions is expected to grow at 12-15%
during the next five years There is increasing emphasis on high quality
extrusions in terms of specifications as well as aesthetics.
The Indian extrusion industry offers unlimited possibilities in terms
of shapes and sizes for use across various industrial sectors, which
has opened up a plethora of new applications.
The Company achieved a sales turnover of Rs. 21192 lacs as against Rs.
17961 lacs in the previous financial year recording an increase of
about 18%. The Power Transmission & Distribution Hardware (Power T & D
Hardware) division registered a sale of Rs. 400 lacs as against Rs. 216
lacs in the previous year. The balance of the turnover was contributed
by Company''s principal business i.e. by Aluminium Extrusions Division.
The Profit After Tax (PAT) for the year is Rs. 320 lacs as against Rs.
58 lacs showing moderate improvement in financial performance. The gain
from higher volumes has been offset by:
(a) Significant increase in Electricity tariff and fuel cost..
(b) Significant increase in Finance Cost due to hardening of interest
rates in India.
(c) Apparent slowdown in general economic activity.
The Company had continued to keep cost control as the cornerstone of
its operations and to raise its output of value-added products. The
Company continues to invest in upgradation of Technology for cost
reduction & improved performance. The Company has taken steps to
counter the above factors and expects to achieve higher Sales Turnover
as well as profitability in the next financial year.
(Rs. in lacs, except per share data)
Year ended March31 2012 2011
Sales 21192 17961
Profit before Interest, Depreciation and
impairment of Assets 1290 963
Interest 606 493
Profit before Depreciation and Impairment
of Assets 684 470
Depreciation and Impairment of Assets 413 404
Net Profit 271 66
Provision of Taxation (-)49 8
Profit after Tax 320 58
Profit brought forward 1433 1375
Balance carried to Balance Sheet 1753 1433
The Company''s inadequate profits does not justify a dividend payout.
Hence to conserve our reserves we are unable to recommend any dividend
for the year under review.
The Aluminium Extrusions production for the year 11086 MT as against
10033 MT in previous financial year showing a growth of 10.50%.
The Power T & D Hardware achieved production of 233 MT during the year
as against 133MT during the previous year. The industry has a longer
gestation period of roughly 4 to 6 years mainly because the prospective
customers, mainly the State Power Distribution Companies require prior
supply experience before they allow new vendors to participate in their
tenders. The Company has already completed four financial years of
operation in the Power T & D Hardware business and expects this
division to contribute higher turnover and profitability from 2013-14
COMPANY OVERVIEW AND GROWTH STRATEGY
While we succeed only as an enterprise by serving our customers to
their satisfaction, our relentless focus will remain on value creation.
Our Legacy: With an experience spanning a rich 21 years, our Company
enjoys a number of first mover advantages comprising a comprehensive
understanding of the aluminium and aluminium extrusions market, reputed
brand and a strong customer base.
Integration: We possess in-house facilities for -
- Melting and casting of billets, Homogenizing.
- Extrusions manufacturing with three press lines.
- Complete Die manufacturing,
- Manufacturing various value added products of extrusions for
engineering applications, and
- Manufacturing Power Transmission & Distribution Hardware.
With 3 extrusion press lines, the Company has a capacity to produce
15000MT of Aluminium Extrusions, which as per the information available
with the Company, is the 3rd largest facility in India as on date.
Die Library: The Company possesses an inventory of more than 5000 dies
to manufacture over 3750 profiles. The Company maintains back-up dies
for meeting the requirements of fast moving profiles.
Availability of raw material: The Company accesses raw material
(aluminium ingots and billets) from three renowned and proximate
primary metal manufacturers- Vedanta Aluminium, Nalco and Hindalco, The
Company is one of India''s largest institutional aluminum ingot/billets
consumers with corresponding purchase economies.
Quality assurance: The Company''s manufacturing facility is accredited
with the prestigious ISO-9001:2008 certification endorsing its strong
quality systems. Your Company continues to focus on maintaining the
highest quality and safety standards in its factory. The Company is
presently in process of upgrading its Quality Management System to
become compliant with Environmental Management System ISO 14001:2004 &
Occupational Health & Safety Assessment Series OHSAS 18001:2007.
The Company supplies extrusions as per tolerances laid down by the
Bureau of Indian Standards in accordance with BIS: 2673-1979,
BIS:3965-1981 and BIS:6477-1983, and with even tighter tolerances as
per customer needs.
The sharp focus on Quality in all its initiatives has enabled our
Company to launch some specific value-added services
Product applications: We manufacture extruded products for varied
- Profiles for Architectural Applications such as Building Systems,
Structural Glazing, Curtain Walls, Aluminium Rolling Shutters,
Windows,Doors, Partitions, False Ceilings, Tower Bolts, Hand Rails,
Door Handles, Hinges, Drapery Rods, Modular Furniture, etc.
- Profiles for Road Transport Sections.
- Profiles for Rail Coach Windows & Doors.
- Profiles for manufacture of Automobile Components.
- Profiles for Heat Transfer in Electronics & Electrical Gadgets
- Profiles for Electrical applications such as Tubes and Flats for Bus
Bars, Transmission Line Hardware such as P.G. Clamps, H-Connectors,
Repair Sleeves, Lugs, Solar Panels etc.
- Profiles for Engineering Applications such as Motor Housings, Gear
Pump Casings, Ferrules, A.C.Louvers, Machinery Parts, Elevators,
Pneumatic Actuators, Pneumatic Cylinders, Valve Bodies, etc.
- Profiles for various Defence Applications and many more.
The Company also has necessary set up to supply extruded and cold drawn
round bars and hexagonal bars in straight lengths for various
engineering applications. It also has a set up to supply extruded and
cold drawn rods/wires in coil form to be used as armour rods, lamp pin
stock, metallizing wire, rivet stock, welding filler wire etc.
Customer profile: The Company possesses a portfolio of over 600 reputed
customers. The Company has retained most of the customers over a period
of 21 years.
Our Company is in a position to supply Extruded Aluminum Profiles in
Alloys 1xxx to 7xxx series. This is our major competency. Our Business
strategy is to book maximum part of our installed capacity for supply
directly to end-users.
Company''s Presence across several verticals
The company''s product portfolio comprises of extrusions in soft, medium
and high strength aluminium alloys. It manufactures aluminium profiles
for architectural applications such as windows, doors, door handles,
modular furniture etc. Its products are used in rail coach windows and
doors, electrical gadgets, transmission line hardware, gear pumps,
elevators, pneumatic cylinders and defense applications. Along with
diversified end-user industries the company has strong client base.
Its top 10 clients do not account for more than 25% and no single
client accounts for more than 10% of its total revenues. The company''s
diverse customer base provides revenue stability and risk mitigation to
a slowdown in any particular sector.
The Company enters into long-term contracts with its suppliers for its
annual raw material requirements, and receives cumulative annual
discounts from Vedanta Aluminium Ltd and. National Aluminium Company
Ltd on lifting pre-specified quantities. Our revenues have registered a
compound annual growth rate (CAGR) of 13.41 % over the past five years
Rich Market Presence
Times are changing and markets are changing. The good thing is that a
change is always a chance. This brings new expectations to the table
that needs to be satisfied. The Company is committed to understand
customer requirements and deliver products in totality. Prudent and
conscious efforts are made with a dedicated team of professionals to
satisfy the customers. High levels of ethics and transparency are
maintained in dealing with the clients to improve their confidence in
the brand and the Company.
A network of branches and sales offices in close proximity to the
customers enable us to ensure efficient, effective and timely service.
The Company possesses a portfolio of over 600 reputed customers. Nearly
87% of the revenues in 2011-12 were derived out of sales to
long-standing customers. The real strength of the Company lies in its
large number of customers in different customer segments spread in
different geographical segments in a growing economy like India.
We at Century Extrusions Limited are looking forward to the forthcoming
challenges and are confident to meet your expectations through
continuous development of customer-optimised solutions.
The Company has an installed capacity to produce 15000MT of extrusions
per annum. As against this, our production for the year 2011-12 was
11086 MT. We thus have a significant spare capacity to increase
production and sales volume.
The demand for aluminium extrusions has been growing in double digits
for past few years. However, even today the present per capita
consumption of aluminium in India is very low at below 2 kg. against
over 10 kg. in developed countries. Due to this very low present
consumption, meaning a low base, the demand growth for extrusions is
likely to remain buoyant over many years to come.
The segment-wise expected demand growth is given hereunder:
1. Power Sector-Power and infrastructure sectors in India are
witnessing and would continue to witness strong growth in the coming
years with the boost from policy measures and budgetary allocations.
Our country faces continuing power shortage. More investments to plug
the gap means more aluminium extrusions.
2. The vibrant Real Estate Sector in our country-Building industry
is the largest consumer of extrusions. Construction is now moving
heavily into Tier II and Tier III cities in addition to Tier I cities.
Current demand for extrusions from this sector is largely for simple
door & window sections. The usage of building systems and Unitized
systems are yet to gain large scale acceptance in the market.
Triggered by growth opportunities in the construction sector with
increasing government budgetary support for the housing sector, the
Company eyes for a wider market as more homes and offices mean more
The light weight, high strength and durability of aluminum alloys make
aluminum attractive for building and construction. At one third the
weight of steel and extensive design options, Aluminium is the ideal
solution for the building & construction industry.
3. Rapidly growing Automobile Industry - A bright perspective in
consumption of aluminium extrusions is seen in the automobile industry.
Aluminium extrusion is used in the manufacture of select automotive
as small Chassis, suspension, bumper, exteriors, interiors, body
structure and steering. Aluminium extrusion in automotive space frames
is an upcoming application and is being used in high end cars of Audi,
BMW and others. Some of the key applications of aluminium extrusions in
passenger cars include: Structural Parts, Safety Parts and Heat
Exchangers: More road and more vehicles mean more aluminium extrusions.
The Growing Vehicular aluminium content for light weighting of vehicles
to save fuel will drive aluminium demand further.
4. Engineering Applications- Aluminium Extrusions are increasingly
being used to manufacture forged & machined components for use as parts
of machinery, fasteners, rivets, wire rope ferrules, motor housings for
domestic water pumps, hydraulic gear pump casings, heat sinks, ladders,
5. The Sustained Agriculture Emphasis in our Country -
More investments in irrigation mean more aluminium extrusions
6. Solar Energy Industry is an emerging opportunity, which implies
significant consumption opportunities for aluminium extrusions from
solar panels over the years to come.
7. Indian Defence Sector: Aluminium extrusions are consumed in a wide
range of applications in this sector, comprising tail-end fuse
connectors for detonator shells and grenades, frame-work for tents and
as a roll-over carpets for tanks to navigate difficult terrains.
Given the significant supply deficits, high growth potential and
conducive government policies, a large opportunity exists for the
Aluminum extrusions suppliers including our Company.
The above projection of robust demand growth is however tempered by the
fact that the extrusion industry is fragmented, and significant
competition exists among players in the industry. As a result, the
bargaining power of industry players is moderate.
Power Transmission & Distribution
The power sector provides one of the most important inputs for the
development of a country and availability of reliable and inexpensive
power is critical for its sustainable economic development. India today
stands at the threshold of being an economic superpower. Power is one
of the key requirements to support and sustain our economic growth.
India''s electricity demand is expected to grow at an average annual
rate of 7.4% in the next 25 years. Power is a key ingredient in driving
growth in manufacturing & services. Aluminium finds growing use in
this space as it is directly used in the overhead transmission and
Power Transmission and Distribution Hardware Fittings are required for
use on Overhead Transmission and Distribution Lines for connecting
Insulators with Tower/Pole Cross Arms and Insulators with conductors.
The Company has manufacturing facilities for casting of Aluminium
Alloys, manufacturing of Extruded products in Aluminium & its Alloys,
Wire Drawing, Helical Products, Fabrication of Ferrous & Non-Ferrous
Components, Argon Welding, Electric Arc Welding, Machining, Bundle
Spacer Assembly, Vibration Damper Assembly, Conductor Accessories,
Clamp Connectors for Hardware Assembly, and manufacturing of Tools,
Dies & Moulds.
Aluminium is also used in insulated and underground cables laid in
large populated urban areas and in reserved forests (to avoid
deforestation), Round Tubes are used for corona control rings, grading
rings, mid-span compression joints, dead-end clamps and jointing
sleeves, among others, signifying huge opportunities for extrusions in
the power sector.
During the financial year 2011-12 the Company recorded a sales turnover
of T & D Hardware amounting to Rs. 400 lacs (approx) as against Rs. 216
lacs in the previous financial year. The Company has successfully
registered itself as a supplier of its products with a number of State
Electricity Boards during the year and the process is continuing. The
process will get further momentum as company achieves requirements of
minimum years of supply track record and experience, with each passing
year. The Company has received substantial orders from the said State
Electricity Boards and State based utilities and Erection Contractors.
As the Company gets itself registered as a supplier with more
electricity utility companies, the order book will become better and
stronger, and the growth in coming few years is likely to be in
multiples of the previous year performance.
Challenges in the Indian Extrusions market
The outlook for aluminium extrusions demand this year has weakened
mainly due to sovereign debt crisis in Europe. However the medium term
outlook is still firm. The automobile sector will see solid gains in
both the developed and developing world. Aluminium is still used only
for simple applications at present in India. Complex applications a
small market by itself, is catered to through imports. Technical know
how is significantly lesser than in Europe & USA. Customers prefer to
buy off the shelf products; This will have to change with more
industrial applications coming in. Price is a key driving factor and
India is amongst the most price sensitive markets in the world. Quality
extrusions will cost more, but pays in the long run. It needs to
evaluate the whole life costs while deciding where to buy from.
Building & Construction sector is becoming more quality conscious.
Architects/Big builders are directly interacting with Extruder''s for
supply of profiles.
Some of changes happening are:
- Wider sections.
- More complex shapes.
- Tighter tolerances
- Focus towards buying ''Solutions'' rather than ''off the shelf profiles''
RISKS AND AREAS OF CONCERN
The Company''s operations and value are continuously protected by
identifying risks at an early stage which facilitates managing them
better. The Company''s capability to assess and manage business risks is
crucial in achieving targets. The Company perceives the following risks
a) Market Competition: The Company is operating in a highly competitive
market as market dynamics are forever changing with entry of new
players in the field of extrusion manufacturing. New players are
targeting resellers consequently old players who were earlier in
reseller markets are turning towards end users creating competition for
With free market economy now prevailing in India, high quality imported
extrusions are freely available in the local market. Hence unless
Indian Extrusion Industry, particularly in the unorganized sector
undertakes technological up-gradation in the foreseeable future, over
next five years, this sector may be wiped out of the market by
availability of cheaper and superior quality imported products.
The Company is striving to developing extrusions in new alloys and can
grasp the niche market where competition is still less and margins are
b) Government Policy risk: The Government policies in the present
economic scenario are pro-industry and pro- growth which minimizes the
inherent policy risk. But at times there are delays in
clearances/approvals by Govt. agencies in obtaining lease renewals for
land mortgaged with financial institutions and banks. This adversely
affects the financial facilities obtained from the Banks.
Entry Tax: The West Bengal Government has introduced The West Bengal
Tax on Entry of Goods onto local Areas Act, 2012 w.e.f 01/04/2012.
This will increase the cost of raw material and other inputs procured
from outside West Bengal by 1%.
c) Competition from local manufacturers: Local Extruders are expanding
their capacities and have also started the production of extrusions in
medium strength alloys. Some of the customers prefer local suppliers
for faster deliveries. Further to compete with local suppliers, we have
to sacrifice our margin to neutralize the effect of higher Freight and
Central Sales Tax. We are located in a comparatively under-developed
part of the country and the demand in this part is not good enough to
account for our capacity. We have to sell a substantial quantity (over
70%) in other parts of India where our realization is lower compared to
local supplies due to impact of the high freight and Central Sales Tax
and the newly introduced Entry Tax by the West Bengal Government.
d) Retention of experienced manpower: Company faces a challenge in
retaining the trained work force. The Company has created employee
friendly policies and a conducive environment for work-life balance.
e) Price Inflation Risk: Fluctuating raw material prices have been
witnessed too often over the past few years. Continuous monitoring of
aluminium metal inventory in order to get maximum benefit or
alternatively to minimize loss by keeping ideal inventory levels in
each circumstance is a major challenge, and this is regularly monitored
at the highest level in the Company.
f) Trade Union Activities: Our Workmen''s unions operate under the
control of three different political parties. It is a challenge to meet
the ever-increasing expectations from the Unions, who at times put
unreasonable demands due to inter-union rivalry in a bid to secure the
support of larger number of workmen.
There is a quote which says What gets measured is managed. Your
Company has a system based approach to business risk management. Backed
by a strong internal control system, the current risk management
framework consists of the following elements:
Enterprise Risk Management Policy manual clearly lays down the
strategy, policy and initiatives in relation to risk management.
A strong and independent Internal Audit Function carries out risk
focused audits enabling identification of areas where risk management
processes may need to be improved. The Audit Committee of the Board
reviews Internal Audit findings and provides strategic guidance on
internal controls. The Audit Committee closely monitors the internal
control environment within the Company and ensures that Internal Audit
recommendations are effectively implemented.
The Senior Management of the Company periodically reviews the risk
management framework to effectively address the emerging challenges in
a dynamic business environment.
The Company strives to identify opportunities that enhance
Organizational values while managing & mitigating risks that can
adversely impact its future performance.
The Company has two business segments i.e. manufacturing of Aluminum
Extruded Products and manufacturing of Power Transmission and
Distribution Line Hardware. However, the Company does not fall under
any of the criteria laid down under AS-17 and hence Segment Reporting
is not applicable.
INTERNAL CONTROL SYSTEM
The Company has an adequate internal control system to ensure proper
and efficient use of the Company''s resources, their protection against
any unauthorized use, accuracy in financial reporting and due
compliance of the Company''s policies and procedures as well as the
Statutes. Internal Audit reports are regularly placed before the Audit
committee and management analysis of the same is done to ensure checks
and controls to align with the expected growth in operations. The
Internal audit is carried out by an independent firm of Chartered
Accountants on regular basis and corrective actions are taken when any
shortcomings are identified.
The Audit committee reviews the adequacy of the internal control system
and provides its guidance for constant improvement in the system.
The Company is continuously working on the Information Technology to
get the maximum benefits for the Organization. The Company is
successfully using a software system which is single, comprehensive,
integrated solution called SAP Business One application. With the use
of this integrated software there have been profound improvements in
all spheres of its activities.
HUMAN RESOURCE AND INDUSTRIAL RELATIONS
Your Company recognizes the importance of people in its growth and has
been progressing with the unflinching commitment of the dedicated team
of employees. The Company''s recruitment practices ensure that suitable
candidates with merit are recruited and provided with the right
opportunities to grow within the Organization. The Company has
developed an HR strategy comprising need based training. Employees are
encouraged to attend seminars, lectures, and training. Key performance
indicators by department heads were subject to regular management
There was a contract labour unrest demanding revision of daily wage
rate as a result of increase by the Government of West Bengal. They
went on strike for a few days which was then resolved after successful
negotiations. Our Casual workers who are getting wages less than
contract workers have also demanded increase in the wages.
Developing a learning culture has always been and will continue to be
our uppermost priority. Our efforts in the coming years will be to
enable our employees to continually grow and build a competitive edge
by translating the learnings into positive actions. Several trainings
were conducted during the year under review. We believe that together
we can and will make the Company achieve its corporate mission.
CORPORATE SOCIAL RESPONSIBILITY (CSR):
The Company has over the years pursuing as part of its corporate
philosophy, an unwritten CSR policy voluntarily which goes beyond mere
cosmetic philanthropic gestures and integrates interest, welfare and
aspirations of the community with those of the company itself in an
environment of partnership and mutual trust for inclusive development.
Even though your Company has always been conscious about its footprint
on the environment, CSR activities in its true sense haven''t been
initiated, the Company however has always strived to be a responsible
Mr. V K Mushran, Mr. Vikram Jhunjhunwala and Mr. RK Sharma retire from
directorship of the Company by rotation, and being eligible, offer
themselves for re-appointment.
Mr. R N Das, Independent Non-Executive director has tendered his
resignation with effect from 28 May 2012. Mr. Arun Kumar Hazra was
inducted as an additional director in the Board Meeting held on
28.05.2012. Mr. Hazra will hold office till the date of the forthcoming
Annual General meeting and a notice has been received from a member
proposing the candidature of Mr. Hazra, being appointed as a Director
of the Company.
Brief resume of the Directors proposed to be appointed/re-appointed,
nature of their expertise in specific functional area and the names of
the Companies in which they hold directorship and
membership/chairmanship of Board Committees, as stipulated under clause
49 of the listing agreement with the Stock Exchanges, are provided as
an annexure to the Notice convening the Annual General Meeting.
CRISIL has assigned its ''CRISIL BBB-/Stable'' rating to the cash credit
facility of Century Extrusions Ltd (CEL) and reaffirmed its rating on
CEL''s letter of credit, bank guarantee and term loan facilities at
''CRISIL BBB-/Stable/CRISIL A3''.
The ratings continue to reflect CEL''s healthy financial risk profile,
marked by a low gearing and healthy interest coverage ratio,
diversified end-user profile, and established relationships with its
suppliers. These rating strengths are partially offset by CEL''s large
working capital requirements, and susceptibility to volatility in raw
DIRECTORS'' RESPONSIBILITY STATEMENT
The Board of Directors of the Company confirms:
i. That in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
ii. That the selected accounting policies were applied consistently and
the directors 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, 2012 and of the profit or loss of the
Company for the year ended on that date;
iii. 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 the Company and for
preventing and detecting fraud and other irregularities;
iv. That the annual accounts have been prepared on a going concern
The auditors, M/s. A L P S & Co., Chartered Accountants, retire at the
ensuing Annual General Meeting and have confirmed their eligibility and
willingness to accept office, if re-appointed. There are no
qualifications or adverse remarks in the Auditors'' Report, which
require any clarification/explanation.
As per the directive of Central Government pursuant to the provisions
of Section 233B of the Companies Act, 1956, your Directors have
re-appointed M/s. N Radhakrishnan & Co. a firm of Cost Accountants, to
conduct the audit for the year ended 31st March, 2013.
The Company did not invite or accept any deposit from the public under
Section 58A of the Companies Act, 1956.
PARTICULARS AS PER SECTION 217 OF THE COMPANIES ACT, 1956
The information relating to Conservation of Energy, Technology
Absorption and Foreign Exchange Earnings and Outgo required under
section 217 (1) (e) of the Companies Act, 1956, is set out in a
separate statement attached to this report and forms part it. The
Company had no employee of the category indicated under section 217(2A)
of the Companies Act, 1956.
The Company has been proactive in following the principles and
practices of good Corporate Governance as an important step towards
building investor confidence, improve investors'' protection and
maximize long-term shareholder value.
The Company has complied with the Corporate Governance code prescribed
by the Stock Exchanges. A detailed report on corporate Governance along
with Auditors'' Certificate on compliance with the mandatory
recommendations on Corporate Governance is annexed to this report.
We thank our customers, vendors, investors and bankers for their
continued support during the year. We place on record our appreciation
of the contribution made by employees at all levels.
We thank the Government of India, the Customs and Excise Departments,
the Sales Tax Department, the Income Tax Department, the State
Government and other Government agencies for their support, and look
forward to their continued support in the future.
Statements forming part of the Management Discussion and Analysis
covered in this report may be forward-looking within the meaning of
applicable securities laws and regulations. Actual results may differ
materially from those expressed in the statement. The Company takes no
responsibility to publicly amend, modify or revise any forward looking
statements on the basis of any subsequent developments, information or
For and on behalf of the Board of Directors
M P Jhunjhunwala
Chairman & Managing Director
Date: 28th May 2012