ACCLAIM INDUSTRIES LIMITED
(FORMERLY KNOWN AS ELPRO PACKAGING LIMITED)
ANNUAL REPORT 2010-2011
TO THE SHAREHOLDERS
Your Directors have great pleasure in presenting the 19th Annual Report
together with the Audited Accounts for the year ended on March 31, 2011.
FINANCIAL RESULT Year Ended Year Ended
Amt in Rs. Amt in Rs.
Sales 2,877,158,145 1,236,847,240
Other Income 33,470,758 79,89,520
Less : Expenditure 2,879,936,330 1,235,129,755
Depreciation 653,779 179,650
Profit/(Loss) before tax and appropriations 30,038,794 9,527,355
Less : Provision for Tax 6,600,000 1,800,000
Less : Deffered Tax liability 722,883 -
Profit/(Loss) after tax 22,715,911 7,727,355
Add: Balance brought forward
from previous year (126,880,985) (134,608,340)
Surplus / (Deficit) carried to Balance Sheet (104,165,074) (126,880,985)
Though the Company earned net profit of Rs. 22,715,911 during the year, but
due to huge carry forward losses and deficit your directors did not
recommend dividend for the year ended March 31, 2011 for both equity and
The Company is presently trading in broad range of steel products,
including C.R. Coils & Sheets, C.T.D. Bars, H.R. Sheets & Plates and Hot
Rolled Steel Plates, Ingot irons M.S. Plates, Angles, Channels, Chequered
Plates, Wires, T.M.T Bars, Rebars and Tor Steel, Stainless Steel and other
Alloy Steels and importing & trading in Aluminum Scrap. The Company would
be starting manufacturing activity shortly.
The turnover of the Company rose from Rs. 1,236,847,240/- in the previous
year to Rs. 2,877,158,145/- in the year under review. The Profit after tax
marginally increased from Rs. 7,727,355/- in the previous year to
Rs.22,715,911/- for the year ended March 31, 2011.
The Company's present equity paid up capital stands at Rs.49,924,900/-
comprising 50,00,000 equity shares of Rs. 10/-which is listed on Bombay
Stock Exchange. The Company's paid up Preference Shares Capital stands at
Rs. 131,600,000 comprising of 13,16,000 9% Cumulative Redeemable Preference
Shares of Rs.100 each.
BOARD OF DIRECTORS
Mr. Ankit Pathak was appointed as Additional Directors by the board and his
appointment as director liable to retire by rotation is being sought in the
ensuing Annual General Meeting, on being demanded by members for which
necessary notice have been received by the Company.
Mr. Abhishek Mehta and Mr. Krishnat Desai, Directors of the Company retires
by rotation at the ensuing Annual General Meeting and being eligible offer
themselves for re-appointment.
The Company has taken proactive steps to ensure that the conditions of
Corporate Governance stipulated in Clause 49 of the Listing Agreement with
the Stock Exchange are complied with. A separate report on Corporate
Governance together with Auditors' Certificate on its compliance is
included in the Annual Report.
CHANGE OF NAME
The Company has changed its name from Elpro Packaging Limited to Acclaim
Industries Limited during the year in order to reflect its true business
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956 the Directors
1] In the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanations relating to
2] Appropriate accounting policies have been selected and applied
consistently and judgments and estimates wherever made are reasonable and
prudent so as to give a true and fair view of the state of affairs of the
Company as at the March 31, 2011.
3] 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.
4] The Annual Accounts have been prepared on a going concern basis.
Messrs. AMD & Co., Chartered Accountant, the retiring Auditors have
expressed their willingness to be re-appointed. It has been proposed to
reappoint Messrs. AMD & Co., Chartered Accountants as Auditors of the
Company. The Company has received a Certificate from them that they are
qualified under Section 224 (1) of the Companies Act, 1956 for appointment
as Auditors of the Company. Members are requested to consider their
appointment at a remuneration to be decided by the Board of Directors for
the financial year ending March 31, 2011 as set out in the Notice convening
The observations of the Auditors contained in their Report are self
explanatory and does not require any clarification. AUDIT COMMITTEE
In accordance with the provisions of the Section 292A of the Companies Act,
1956 and the Corporate Governance requirements as per the Listing
Agreement, the Company has re-constituted the Audit Committee comprising of
the following Directors viz.,Mr. Krishnat Desai, as Chairman, Mr. Karsan
Chitroda and Mr. Pandurang Nawghane as members. The Audit Committee acts in
accordance with the terms of reference specified from time to time by the
PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND OUTGO:
The Company has taken effective steps to conserve and minimize power and
fuel consumption. The Company has not exported any goods during the year
but the company has imported goods during the year. Foreign Exchange
Earning was Nil and Outgoing was Rs. 84,39,212/-.
PARTICULARS OF EMPLOYEES
None of the employees of the Company come within the purview of the
information required u/s 217[2A] of the Companies Act, 1956 read with the
Companies [particulars of Employees] Rules, 1975 as amended from time to
RESEARCH & DEVELOPMENT
The Company has been arduously working to improve the R & D so as to
provide quality and value for money to the customers in keeping with market
Your Company has not accepted any deposit within the meaning of Section 58A
of the Companies Act, 1956 from Public and the rules made there under.
SAFETY, ENVIRONMENTAL CONTROL AND PROTECTION
The Company has taken all the necessary steps for safety and environmental
control and protection. ACKNOWLEDGMENT
The Directors wish to convey their appreciation to the Company's
Shareholders, Customers, Suppliers, Bankers, and Distributors for their
support they have given to the Company over the past years and the
confidence, which they have reposed in its management and the employees for
the commitment and dedication shown by them.
For and behalf of the Board of Directors
Registered Office Acclaim Industries Limited
ACCLAIM INDUSTRIES LIMITED
Flat No. 13, Saubhagya Apts.,
3rd Floor, Pavananagar,
Dist. Pune - 411033 Abhishek Mehta
30th July, 2011 Managing Director
MANAGEMENT DISCUSSION AND ANALYSIS
During the financial year 2010-11, the Company has achieved healthy growth
in sales and profitability and is poised to emerge as a stronger Company to
deliver enhanced shareholder value over the coming years.
Your Company registered a good performance during 2010-11 with a 293%
growth in PAT to Rs. 22,715,911 which is exceptionally well and looking
ahead to continue the same trend.
(1) Global Economy
The global economy has witnessed a sustained growth largely driven by the
additional stimulus and bail out packages announced by various countries
which has created liquidity and stimulated demand, leading to the recovery
in the US and Europe. The Chinese and Indian economies have been the
fastest economies. However, this has led to inflationary pressures which
have forced central bank to raise interest rates.
The steel industry has also seen a reasonable growth in demand and increase
in production volumes especially in China and India. However, this has once
again put pressure on raw material availability and prices. The floods in
Queensland, Australia have put further pressure on the prices of Coking
Coal which has increased from USD 200 per MT levels to USD 300 per MT
levels. Due to the volatility in Coking Coal prices over the last couple of
years, there has been a shift in pricing mechanism for Coking Coal from
annual to quarterly to partly monthly benchmark prices. This has resulted
in volatility in prices of iron and steel products as well. China continues
to drive the global steel industry with a production of approx. 630 million
tons in 2010 which equates to approx. 45% of global Steel production.
Chinese Steel demand continues to be driven by large capital expenditure
and government infrastructure projects across the country. However, it is
expected that the production growth for steel in the current decade will
slow down, which should reduce raw material prices.
(2) The Indian Steel Industry
The Indian economy grew at 8.6% in 2010-11 against 7.2% last year which
shows a remarkable growth.The economy is likely to grow at over 8% over the
next decade driven by the infrastructure (power, road, railways, ports
etc.) and consumption (automobile, real estate etc.) sectors which will
result in robust growth in demand for various iron and steel products.
The States of Orissa, Chhattisgarh and Jharkhand which account for majority
of the iron ore and coal reserves in the country will remain the most
attractive locations for setting up iron and steel manufacturing capacity
in the coming years.
OPPORTUNITIES, THREATS, RISKS, CONCERNS AND OUTLOOK
Your Company is poised to seize the opportunities in the Iron & Steel
Industry (both for steel & intermediary saleable products) through its
strengths of locational and logistical advantages, raw material linkages,
technology edge and management expertise. These opportunities will be
linked directly to the growing demand from the automobile and auto
components, infrastructure, construction and power sectors. Your Company's
strategic location offer scope for seamless value addition in its
manufacturing process from hot metal to stainless steel.
The threats for your Company would come from adverse fluctuations in input
and capital costs, foreign exchange variations and taxes & duties. The
buoyancy in the Iron & Steel Sector has attracted many players, resulting
in reduced availability of skilled manpower and contractor workforce. Delay
in implementation of project may lead to opportunity loss in revenue
generation and rise in costs.
Your Company has identified major focus areas for risk management to ensure
organisational objectives are achieved and has a well defined structure and
proactive approach to assess, monitor and mitigate risks associated with
these areas, briefly enumerated below:
a) Project implementation - Project status is monitored on a regular basis
by the project management team to counter slippages and reviewed on a
monthly basis by the executive management. Consultants are present on-site
for mitigating contingencies on the implementation front. Necessary
coverage has been taken in the form of an extensive Erection All Risk
b) Foreign Exchange - Your Company deals in sizeable amount of foreign
exchange in imports of capital items and raw materials and exports of
finished products. A comprehensive and robust forex policy has been
formulated for insulating the Company by hedging foreign exchange exposure.
c) Statutory compliances - Procedure is in place for monthly reporting of
compliance of statutory obligations and is reported to the Board of
Directors at its meetings.
India has immense potential for creating new steel capacity. Indian per
capita steel consumption is presently very low compared to world average
which further re-confirms the opportunities for steel demand to continue
accelerating in the times ahead. Your Company with a well diversified
product portfolio is well poised to take advantage of the growth in the
demand for Special Steel products, Coke and Ferro Chrome.
PERFORMANCE OF THE COMPANY
The Company had an overall good performance in the year ended March 31,
2011. The current business of the company is trading in steel and iron
products including C.R. Coils & Sheets, C.T.D. Bars, H.R. Sheets & Plates
and Hot Rolled Steel Plates, Ingot irons M.S. Plates, Angles, Channels,
Chequered Plates, Wires, T.M.T Bars, Rebars and Tor Steel, Stainless Steel
and other Alloy Steels. The Company is also importing and trading in
The Company has established a Factory at Valsad, Gujarat during the year
for manufacturing of Iron & Steel Products which will be operational
shortly. This will help the Company for sustaining in the long run in the
competitive steel industry.
The Company recognizes the need for continuous growth and development of
its employees in order to provide greater job satisfaction and also to
equip them to meet growing organizational challenges.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:
Internal Control Systems are designed to ensure the reliability of
financial and other record and accountability of executive action to the
management's authorization. The Statutory Auditors have evaluated the
system of internal controls of the Company and have reported that the same
are adequate and commensurate with the size of the Company and nature of
The internal control systems are reviewed by the top Management and by the
Audit Committee of the Board and proper follow up action ensured wherever
Statement in the Management Discussion and Analysis describing the
Company's objectives, expectations, estimates or predictions may be forward
looking within the meaning of applicable securities laws and regulations.
Actual results may differ materially from those expressed in the statement.
Important factors that could influence the Company's operations include
global and domestic supply and demand conditions affecting selling prices
of finished goods, input availability and prices, changes in Government
regulations, tax laws, economic developments with in the country and other
incidental factors. The Company assumes no responsibility to publicly
amend, modify or revise any forward-looking statements, on the basis, of
any subsequent developments, events or information.