You are here » Home » Companies » Company Overview » Anil Special Steel Industries Ltd

Anil Special Steel Industries Ltd.

BSE: 504629 Sector: Metals & Mining
NSE: ASILIND ISIN Code: INE904B01013
BSE LIVE 15:40 | 15 May 1.08 0.03
(2.86%)
OPEN

1.00

HIGH

1.10

LOW

1.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 1.00
PREVIOUS CLOSE 1.05
VOLUME 2040
52-Week high 2.31
52-Week low 1.00
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.00
CLOSE 1.05
VOLUME 2040
52-Week high 2.31
52-Week low 1.00
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Anil Special Steel Industries Ltd. (ASILIND) - Chairman Speech

Company chairman speech

1995 ASIL INDUSTRIES LIMITED CHAIRMAN'S SPEECH Speech delivered by Shri S.N. Khaitan, Chairman, at the 27th Annual General Meeting of the Company held in Jaipur on the 17th day of June, 1995. Reaching Higher. Aiming Higher. Ladies & Gentlemen, I take the pleasure in welcoming you to the 27th Annual General Meeting of your Company The notice convening this meeting, the audited accounts for the year 1994-95 and the Directors' Report have been with you for sometime, and with your permission, I take them as read. FINANCIAL PERFORMANCE DURING THE YEAR UNDER REVIEW In the Financial year under review, your Company put up another commendable performance by showing steep increase in income, profit and overall growth. While the turnover has registered a 25% increase - from Rs. 27.42 crores in 1993-94 to Rs. 34.38 crores in 1994-95 the cash profit and the net profit after tax has shot up to Rs. 4.30 crores from Rs. 2.74 crores and Rs. 3.38 crores from Rs. 1.26 crores, an Increase of 57% and 168% respectively over the last year This incredible performance has been achieved through a relentless effort of upgradation of the quality of the product. The decision to maintain the dividend at 30% has been envisaged by the long- term consideration of expanded capital base of your company through the conversion of fully Convertible Debentures issued during the year under review. THE RIGHT-CUM-PUBLIC ISSUE During the year under review, your Company came out with a Rights cum Public Issue of Fully Convertible Debentures of Rs. 1019.40 lacs. The debentures were issued in the ratio of 1:1 on right basis to the tune of Rs. 384.87 lacs, RS. 157.53 lacs firm allotment to the promoters, directors, their friends, relatives and associates and the remaining portion of Rs. 477.00 lacs was offered to the public who reciprocated with overwhelming confidence in the future of your Company by oversubscribing by 14.83 times. EXPANSION AND DIVERSIFICATION UNDERTAKEN The Company has attained a breakthrough in the closely-held International technology for hardening and tempering the steel strips. This will place your Company in the international map and will enable the user industries to come up with products which are on par with the international standard. The Plant has already been commissioned to manufacture Steel Strips and various types of Engineering Steel Strips, Granite Cutting and Marble Cutting Knives, Circular saws with various kinds of tips. All these, manufactured with the latest technology will save precious foreign exchange by reducing imports and will also be exported to the industrially advanced West. The Company has also commissioned a project for manufacture of Circular Saws for increasing value addition. This will give the Company its first product in the tool industry which will be directly supplied to the end user. EXPORTS In keeping with the national priorities, exports were earmarked as the thrust area on the eve of the country's embarking on the New Economic Policy. From an initial Rs. 3 lacs, the Company's exports have grown to Rs. 100 lacs during the year under review. The exports will take a quantum leap once the switch to new technology is complete. THE ECONOMIC SCENARIO The Government's astute management of inflation during the current financial year and bringing it down gradually to single digit level, deserves commendation from all sections. However, stabilising and lowering the interest rate so vital for industrial growth - requires a more cautious handling of the prime lending rates which, in recent past, seems to be framed from a narrow stabilisation perspective rather than from a holistic long-run growth objective. Reducing import duties in a phased manner is a step in the right direction. We take a special note of the fact that during the current year the Import tariffs on HR and CR Coils have been reduced from 50% and 40% to 40% and 30% respectively. This reinforces the Government's commitment to the principle of consumer sovereignty and the will to make Indian Industries internationally competitive -- a process in which we look forward to Participate. However, the Government's hesitation is manifested in their foot-dragging over the vital issues of PSU disinvestment, liberalisation of labour laws and subsidizing low productivity in the Government-run Infrastructural sectors. since the outputs of these sectors enter as cost components into the private sector's output, artificially maintained levies, freights and prices would have the effect of escalating the costs of the commodities produced by the industry. Apart from reducing the Indian industries' competitiveness and rendering them vulnerable these have the baleful effect of distorting the structure of prices in both the product and factor markets. The effect of low productivity of Indian labour due to institutional impediments to mobility not just acts as a closure for attaining higher employment, but also acts as a constraint for adapting innovations, upgrading technology and investment on human resources. Therefore, without taking necessary steps in these directions, the Government's unilateral thrust on disciplining the credit market and slashing down import tariffs would merely aggravate stagflation and make the country a happy dumping ground for cheap imports. The industrial sector and the investing public expect the Government to take things to their logical end, not only out of 'patriotism' but out of the need to be consistent in its policies and priorities. CURRENT YEAR'S OUTLOOK For several reasons, the outlook for the current year appears to be rather favourable. On the demand side the market for consumer durables, automobiles included, is increasing at an unprecedented rate, against a 12% growth in industrial production envisaged during the current year, the automobile and the white good sector is expected to grow by 25%, raising the demand for steel strips pro tanto. On the supply side new capacities are being created for our raw material as Hot Rolling Mills are stepping up their production and new plants are being commissioned. This will reduce our dependence on imported raw material. The prospects generally speaking, are thus excellent and your Company will take full advantage of these factors in optimizing their output and maximising returns. The Indian Railways has converted the Jaipur- Bombay route into broadgauge and since the line shares a common boundary with our factory, the event Will benefit the Company by reducing transportation costs. FUTURE GROWTH The Company has entered into a technical collaboration agreement with a world wide renowned manufacturer of Germany for Supply and commissioning of a most modern Cold Rolling Mill with a capacity of 30,000 MT per annum which will produce Cold Rolled Steel Strips with very close tolerance. The Company is also putting additional H&T lines with the new technology in order to expand the capacity of H&T The total capital outlay involves In acquiring and installing the above C Mill Project and H&T line is about Rs. 65 crores, which, will be partly financed by All India Term Lending Institutions and for balance the Company will approach shareholder for right issue sometime during October-December 1995._ The project is expected to be commissioned by June, 1996 and the enhanced output will cater to the captive domestic demand for DD/ EDD Steel strips emanating from the quality conscious segment of the consumer durables and automobile industries which are gearing up to make big strides in near future. Out of 30,000 MT, around 10,000 MT strips shall be used inhouse for hardening and tempering Division. With such high quality of hardened and tempered strips we shall be comparable with the best in the world. We would also be able to make inroads in advanced countries as our price will be cheaper. This, in turn, will enhance Company's turnover and profitability manifold over the coming years. ACKNOWLEDGEMENT For this impressive performance and the promise of a brighter future, I wish to thank the shareholders of the Company and the investing public, who have shown their faith in the management. I would also like to thank the Financial Institutions, the Government of Rajasthan, the Bankers to the Company and the employees for their immense support. S.N. KHAITAN CHAIRMAN Place : JaipurDated : 17th June, 1995.