To The Members
Your Directors take pleasure in presenting their Annual Report together with theAudited Statements of Accounts for the year ended 31st March 2014.
The financial results of the Company for the year 2013-14 are summarized below :
| || ||(Rs. in lakhs) |
| ||31-03-2014 ||31-03-2013 |
|Sales and other revenue ||3003.00 ||2678.29 |
|Profit before Finance charges ||219.02 ||244.77 |
|Depreciation Tax & other adj's || || |
|Less : Finance charges ||0.68 ||0.75 |
|Profit before Depreciation Tax & other adj's ||218.34 ||244.02 |
|Less: Depreciation ||71.22 ||80.40 |
|Profit before Tax & other adj's ||147.12 ||163.62 |
|Less: Extraordinary & Exceptional Expenses ||- ||46.36 |
|Provision for current tax ||60.65 ||54.66 |
|Taxes of earlier years ||4.75 ||4.23 |
|Deferred Tax Asset/Liability adj's ||(14.88) ||(19.33) |
|Profit before appropriations and carried to Balance Sheet ||96.60 ||77.70 |
Your Directors are to report that the Company produced 4465 MT of AlF3 during theyear under review as against 4477 MT during 2012-13. During the year the Company sold4606 MT AlF3 as against 4172 MT in 2012-13. With the increased Sales and other Incomeduring the year under review reported at Rs.3003.00 lakhs as against Rs.2678.29 lakhsduring 201 2-1 3. With efficient working capital management planned other income and witheffective cost control measures the Company posted a net profit of Rs. 96.60 lakhs forthe year under review as against net profit of Rs. 77.70 lakhs in 2012-13.
In view of the proposed shifting of the Plant to the place where the Company will getassured acid supplies your Directors are not recommending any Dividend.
OUTLOOK FOR THE CURRENT YEAR
The sale price of Aluminium Fluoride for the current year has increased by 5%. With theadjacent fertilizer complex assurance for increasing their acid supplies for the currentyear as against their low supplies of 1439 MT acid in 2013-14 and with the availabilityof balance acid supplies from long distance acid suppliers the company is hoping to postgood returns in the current year.
During the year under review the Company registered an Export sale of Rs. 406.80 lakhsas against Rs.553.34 lakhs during 2012-13.
ENVIRONMENT & SAFETY MEASURES
Following the ISO Certifications of 9001 14001 and OHSAS 18001 the Company willcontinue taking all the necessary measures to maintain high standards of EnvironmentClean and Green Belt Water Harvesting Pollution Control Health and Safety Precautions.The Company proposes an energy audit during the current year.
All the properties of the Company including Buildings Plant and Machinery and Stockshave been adequately insured.
In accordance with the provisions of the Companies Act 1 956 and the Articles ofAssociation of the Company Dr. T.R. Ramachandran Director and Sri Ashok VemulapalliDirector will be retiring at the Annual General Meeting and are eligible forreappointment.
M/s Rao & Kumar Chartered Accountants Visakhapatnam the Auditors of the Companywill be retiring at the conclusion of this Annual General Meeting and have conveyed theirconsent for reappointment.
M/s D.V.J. Rao & Associates Cost Accountants Visakhapatnam as Cost Auditors havebeen appointed to conduct Cost Audit for the year ended 31 March 2014. They will submittheir report to the Board of Directors before filing it to the Ministry of CorporateAffairs New Delhi.
As per the provisions of Section 217 (2AA) of the Companies Act 1956 Directors state:
i. In the preparation of the annual accounts the applicable accounting standards havebeen followed along with proper explanation relating to material departures.
ii. The Directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give true andfair view of the state of affairs of the Company at the end of the financial year and ofthe Profit and Loss of the Company for that period.
iii. The Directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of this Act for safeguardingthe assets of the Company and for preventing and detecting fraud and other irregularities.
iv. The Directors have prepared the accounts on a going concern basis.
PARTICULARS OF EMPLOYEES
There are no employees falling within the purview of the Section 217(2A) of theCompanies Act 1956 read with Company's (Particulars of Employees) Rules 1975.
Additional information on conservation of energy technology absorption and foreignexchange earnings and outgo as required to be disclosed in terms of Section 217(1)(e) ofthe Companies Act 1956 read with the Companies (Disclosure of particulars in the Reportof the Board of Directors) Rules 1988 is given in Annexure - 1 and forms part of thisreport.
Pursuant to Clause 49 of the Listing Agreement your Company has to mandatorily complywith the requirements of Corporate Governance. A report of compliance of CorporateGovernance is annexed together with a Certificate from the Auditors of the Company oncompliance.
The Board of Directors of the Company take this opportunity to place on record theirappreciation of the cooperation and support extended by State Bank of India IDBI BankLtd HDFC Bank Ltd Axis Bank Ltd and Punjab National Bank. Your Directors also appreciatethe sincere and efficient services rendered by the Employees of the Company at all levelstowards successful working of the Company.
| ||For and on behalf of the Board |
| ||VENKAT AKKINENI |
| ||Managing Director |
|Hyderabad ||Dr. T.R. RAMACHANDRAN |
|29 July 2014 ||Director |