V COMPANY, MANAGEMENT & PROJECT
 
 ASHOK MAGNETICS LIMITED was incorporated as a public
 limited Company on 16th April, 1993 with the Registrar of
 Companies, Tamilnadu, at Madras and obtained the
 certificate of Commencement of Business on 24th May 1993.
 
 Manufacture of Video Cassettes was commenced on 31.10.92 by
 Trans Asia Exports which was acquired by Ashok Magnetics
 Limited by an agreement dated 14.08.93.  The Company
 commenced audio Cassettes with effect from 31.10.94 and the
 first phase of Rigid PVC pipes with effect from 04.02.95.
 
 THE PRODUCT & PRESENT ACTIVITIES
 
 The Company is manufacturing Rigid PVC Pipes, Video and
 Audio Cassettes.
 
 PRODUCT APPLICATION
 
 RIGID PVC PIPES
 
 Rigid PVC Pipes are commonly used for the following
 purposes:
 
 Chemical Process
 
 The excellent corrosion resistance of PVC makes it highly
 ideal for usage in chemical processes for handling acids,
 alkalis, abrasives, slurries and many other fluids.  It is
 also used for furnevent piping, reactor blow-off line etc.
 
 Distribution and Drainage Systems
 
 As it is unaffected by salt water, acid mine water or
 chlorinated water, sludge, crude oil, it is used in water
 cooling systems, filter and sewerage plants, irrigation
 purposes, distribution lines for crude oil and natural gas
 etc.  Rigid PVC pipes are also used as piping and
 electrical conduits in pulp and paper industry, ships,
 constructions of all kinds etc.
 
 AUDIO AND VIDEO CASSETTES
 
 Audio and Video Cassettes are popular and extensively used
 for entertainment and educational purposes by young and old
 alike.
 
 The manufacture of audio and video cassettes is an assembly
 oriented process.
 
 The Company is engaged mostly in the assembling of
 cassettes.  Major raw material required is magnetised film,
 most of which is imported.  The major activity is assembly
 of components.  The process is standardised and automatic
 involving use of sophisticated machinery and is not labour
 intensive.
 
 APPLICATION
 
 Audio, video cassettes are used for magnetically recording
 audio, visual data for educational and entertainment
 purposes, scientific processes and documentation.
 
 CURRENT OPERATIONS
 
 The Company is manufacturing Rigid PVC Pipes and Audio &
 Video Cassettes.  The Company has factories at Gummidipoondi
 in Tamil Nadu, Sulurpet in Andhra Pradhesh and Pondicherry.
 
 The unit at Gummidipoondi is for manufacture of Rigid PVC
 Pipes.  The Company now proposes to expand the production
 capacity of Rigid PVC Pipes.  ISI Certification for PVC
 Pipes has been obtained from Bureau of Indian Standards,
 Madras (Licence No. CM/L6083868 valid from 28.07.95 to
 27.07.96) vide their letter dated 28;07.95.
 
 The unit at Sulurpet where manufacture of video cassettes
 is carried on has been acquired by the Company from Trans
 Asia Exports vide the agreement dated 14th August, 1993 for
 a consideration of Rs.25,28,501/-.  The consideration of the
 said amount has been paid by allotment of 1,50,000 Equity
 Shares of the Company of Rs. 10/- each at par and the
 balance amount of Rs.10,28,501/- was treated as an interest
 free unsecured short term loan to be repaid within one
 year.  Trans Asia Exports was a sole proprietorship concern
 with Mr.Ashok Agarwal as the sole proprietor.  The short term
 loan of Rs.10,28,501/- was repaid by the Company by 31.01.94
 (i.e.) within 1 year as per the agreement.  The product
 manufactured in this unit is Video Cassettes.
 
 The abovesaid takeover of business from Trans Asia Exports
 was approved by the Board of Directors of the Company vide
 resolution passed on 14.08.93.
 
 The basis of valuation of assets relating to the take over
 being the networth, as detailed and arrived at from the
 audited statement of accounts of Trans Asia Exports for the
 period ended 31.03.93.
 
 There was no revaluation of the assets of Trans Asia
 Exports.  The unit at Pondicherry is for the manufacture
 of Audio Cassettes.  This unit was acquired from M/s. Indo
 Pacific Electronics a proprietorship firm (in which the
 promoter of this Company was not interested) under an
 agreement dated 30th November, 1994 for a purchase
 consideration of Rs.89,611/- paid by cheque No.520279 drawn
 on Central Bank of India on 14.08.95.
 
 The abovesaid take over of business of Indo Pacific
 Electronics was approved by the Board of Directors of the
 Company on 30.11.94.
 
 The amount of Rs.89,611/- paid as purchase consideration
 to indo Pacific Electronics as mentioned above was arrived
 at on the basis of its networth as an 30.06.94
 
 There was no revaluation of assets of indo Pacific
 Electronics.
 
 6. To undertake and execute any contracts, supply,
 erection, designing, fabrication of any kinds of pump,
 pipes, pipe work, fittings, tubular structures, pipe work
 systems and
 
 PAST FINANCIAL HIGHLIGHTS
 
 The past audited working results of the Company are as
 under:
 
 SUBSIDIARY COMPANIES
 
 The Company has no subsidiary Companies.
 
 2005
 
 -Company has changed its name from Ashok Magnetics Ltd. to AML Steel
 Ltd.