The Directors would like to present the 69th Annual Report, together
with the audited accounts for the financial year April 2006 to March
April 2006 - April 2005 -
March 2007 March 2006
Sales and Operating Revenues 876,001 729,664
Of which exports 102,727 101,457
Operating profit (profit before
Depreciation, Interest and Tax) 10,142 19,595
Interest 3,615 2,570
Depreciation 36,066 34,622
Profit (Loss) before tax (29,539) (17,597)
Tax- Current NIL 4,345
- Deferred (5,443) (9,166)
- Fringe Benefit 468 551
Profit/(Loss) after tax (24,564) (13,327)
Sales and Operating Revenues stood at Rs.876,001 thousand (previous
year Rs 729,664 thousand). Net Loss was Rs.24,564 thousand (previous
year Net Loss Rs. 13,327 thousand).
Since your Company has not made any profit, your Directors have not
recommended any dividend.
Hindalco Industries Ltd., the holding company of Indal, holds
approximately 97.06% of the share capital of the Company as on 31 March
Your Company has consistently focussed on value-added products and made
inroads into new markets. The major highlights:
- With increased demand in the Pharma sector, production volumes grew
at 2942 tonnes during FY07 as against 2451 tonnes in FY06, registering
a growth of 20%.
- Your Company widened its customer base by developing new customers in
the export and domestic markets.
- Overall delivery performance improved from 90% in 2005-06 to over
- Customer complaint settlement time reduced significantly from 65 days
in 2005-06 to 50 days in 2006-07.
Programmes on 5S - Housekeeping and Good Manufacturing Practice (GMP)
were launched during the year to meet the stringent quality standards
of pharma customers.
Major Engineering activities completed include:
- Installation of Bending System in the Rolling Mill with reversing and
separating operations, thereby improving foil quality in terms of
- Complete revamp of Furnace-1 which has helped reduce energy
- Installation of 13 Nos. Turbo Ventilators on the Poly Extruder
machine to improve working conditions on the shop floor.
- New Dry Air System for the Foil Rolling Mill which prevents moisture
getting into the foil, and eliminates the possibility of any corrosion.
- Procurement of New Chill Roll for the Poly Extruder
- Installation of New DC Drive in the Paper Laminator machine.
Your Company re-affirms its commitment to the standards of corporate
Human Resource Development and Industrial Relations
Your Company recognises the value of people as its most valuable asset
and believes that your Companys employees are central to its
Industrial Relations have remained cordial throughout the year with
good co-operation from all Operatives in improving the overall
performance of the Plant.
The plant has remained accident free over the last few years including
2006-07. It has achieved 2.64 million accident free man-hours up to 31
Corporate Social Responsibility
Your Company continues to strengthen its efforts towards sustainable
development with new initiatives and consistent improvements in the
economic, environmental and social aspects of the business.
In line with the Social Vision of the Aditya Birla Group your Company
has played an active role in various social activities for making a
difference to the surrounding community. ,
Quality, Environment Protection and Pollution Control
Your Company was presented the Appreciation Award from the National
Safety Council for obtaining OHSAS: 18001 (1999) Certification.
Surveillance audit for ISO: 9001 (2000), ISO 14001 (1996) and OHSAS :
18001 Systems certifications were carried out successfully by the
certification body BVQI.
In terms of the provisions of Section 205C of the Companies Act, 1956,
your. Company transferred an amount of Rs. 21,27,613.00 to the Investor
Education and Protection Fund, relating to amounts lying as unclaimed
dividend for more than seven years from the due date.
Mr. A. K. Agarwala and Mr. A. L. Mudaliar retire by rotation from the
Board in accordance with Article 117 of the Articles of Association of
the Company and are eligible for re-appointment.
Board of Directors
Your Companys Board includes six Non-Executive Directors, of which,
three Directors are independent directors. The Board met four times
during the year.
Your Company has an audit committee at the Board level. The Committee
acts as a link between the management, the statutory auditors and the
Board of Directors and oversees the financial reporting process. All
members of the Committee are Non- Executive Directors. The Chairman is
an independent director with sound financial and accounting knowledge.
The details of the composition of the Committee are as follows :
Name of Director Nature of Director Audit Committee
Mr. P. K. Choksey, Chairman Independent Director 2 2
Mr. A. K. Agarwala, Member Non-executive Director 2 2
Mr. A. L. Mudaliar, Member Independent Director 2 1
Mr. B. L. Shah, Member Non-executive Director 2 2
The Audit Committee met twice, on 28 April 2006 and 27 November 2006.
The Committee recommended the approval and adoption of the annual
accounts for the financial year 2005-06 and reviewed the Accounts for
the seven months ended 31 October 2006.
At the Annual General Meeting held on 11 July 2006, the members had
appointed Messrs Price Waterhouse, Chartered Accountants, as auditors
of your Company, at a remuneration as may be mutually agreed upon
between the Board of Directors and the Auditors. Accordingly, it was
agreed to pay Rs. 4,50,000/- to Messrs Price Waterhouse as auditors of
the Company from the conclusion of the sixty-eighth Annual General
Meeting to the conclusion of the next Annual General Meeting. Messrs
Price Waterhouse, being eligible, offer themselves for re-appointment.
The Company has no subsidiary company.
Energy Conservation and Foreign Exchange Earnings and Outgo, details
are given in Appendix I.
Information in terms of Section 217(2A) of the Companies Act, 1956 read
with the Companies (Particulars of Employees) Rules, 1975-NIL
Disclosures in compliance with Accounting Standard-18 on Related Party
Disclosures form a part of this Annual Report.
Directors Responsibility Statement
The Audited Accounts containing Financial Statements for the financial
year ended 31 March 2007 are in full conformity with the requirements
of the Companies Act, 1956. Your Directors believe that the Financial
Statements reflect fairly, the form and substance of transactions
carried out during the year and reasonably present your Companys
financial condition and results of operations.
Your Directors further confirm that:
(i) in the presentation of the annual accounts, applicable accounting
standards have been followed;
(ii) the accounting policies have been consistently applied and
reasonable, prudent judgement and estimates are made so as to give a
true and fair view of the state of affairs of your Company as at 31
March 2007 and of the profit for the financial year ended 31 March
(iii) 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 frauds and other irregularities;
(iv) the annual accounts of your Company have been prepared on a going
Your Directors place on record their deep appreciation of the
assistance and support provided by the financial institutions and banks
associated with your Company.
Your Directors recognise the commitment and contribution of your
Your involvement as shareholders is greatly valued.
For and on behalf of the Board
Mumbai Askaran Agarwala
5 May 2007 Chairman