ASIAN ALLOYS LIMITED
Your Directors have pleasure in presenting the TENTH ANNUAL REPORT together
with the Audited Accounts for the Financial year ended 31st March, 1996.
Your Directors are pleased to recommend a dividend of 12% for the year
ended 31st March, 1996 subject to deduction of tax at source as per the
provisions of Income Tax Act, 1961.
The Company is setting up a state of the art 100% Export Oriented Unit for
manufacture of knitted fabrics and garments at Village Sihi Sikanderpur,
Distt. Gurgaon, Haryana. The Civil work is in full swing. The Machinery for
the Textile Project has started arriving at the Project Site. The first
phase of the Project i.e. production of processed fabrics will be completed
by November 1996. The second phase of the Project including garmenting
division would start commercial production by March, 1997.
In view of low pace of receipt of allotment money the Steel Castings
Project to be set up at Bhiwadi, Rajasthan was slowed down.
To further optimise the return on investment on existing plants, the
company has undertaken a modernisation programme involving a capital outlay
of Rs. 8.50 crores which will enlarge the product range. The Punjab State
Industrial Development Corporation has sanctioned a term loan of Rs. 418
lacs to part finance the Project.
During the year, the Company came out with a premium Right-cum-public Issue
of Rs. 2900 lacs. So the share capital has increased from Rs. 340 lacs to
Rs. 872.73 lacs.
Inspite of tremendous pressure, on Company's profits, of adverse
fluctuations in Foreign Exchange and other factors, your Company has been
able to post a profit after tax of Rs.348 lacs and cash accruals of Rs.500
lacs as compared to profit after tax of Rs. 447 lacs and cash accruals of
Rs. 534 lacs during the previous year.
The Turnover increased to Rs. 11737 lacs from Rs. 8004 lacs recording a
growth of 46%.
The statement showing Projections V/s Performance has been given in
Annexure - C forming part of this report.
With the completion of modernisation programme at Mandi Gobindgarh, the
Company expects to significantly improve the profitability. The bottom line
of the Company will further improve with the commissioning of the Knitwear
IDBI has nominated Mr. M.F. D'costa as a Director on the Board of Directors
of your Company. Nomination of a Director was one of the condition of the
sanction of Working Capital Loan and Term Loan sanctioned by IDBI.
Mr. Ravinder Kumar Sachdeva and Mr. Sohan Lal Kalra retire by rotation and
being eligible, offers themselves for re- appointment.
M/s. Datta Singla Co., Chartered Accountants, retire at this Annual General
Meeting and being eligible, offer themselves for re-appointment. The
Company has received a certificate from them that re-appointment if made,
will be in conformity with the Provisions of Section 224 (1B) of the
Companies Act, 1956.
The observations of the Auditors and Notes on accounts are self-
The Fixed Deposits mobilised from the share holders and public as on 31st
March, 1996 aggregate to Rs.158.14 lacs. During the year under review there
were no deposits which were overdue or unclaimed. The company has complied
with the provisions of Section 58-A of the Companies Act, 1956 and rules
Information pursuant to Clause (e) of Sub-section (1) of Section 217 of the
Companies Act, 1956 read with the Companies (Disclosure of particulars in
the Board of Directors) rules 1988 is annexed hereto (Annexure 'A') and the
same forms an integral part of this report.
Industrial relations continue to be cordial throughout the year. Your
Directors are pleased to place on record their appreciation for the
dedicated services rendered by the Officers, staff and workers of the
The particulars of employees as per section 217(2) of the Companies Act,
1956 read with Companies (Particulars of employees) rules, 1975 are set out
in the Annexure hereto (Annexure B) and form part of this report.
The Directors wish to thank the Central Government, Governments of Punjab,
Haryana & Rajasthan, Financial Institutions, Company's Bankers, Customers
and Suppliers for all the help and encouragement they extended to the
Company. Your Directors deeply acknowledge the trust and confidence you
have placed in this Company.
ANNEXURE TO THE DIRECTOR'S REPORT
Statement of particulars under Companies (Disclosure of particulars in the
Report of Board of Directors) Rules, 1988.
A. Conservation of energy.
The company constantly endeavour to conserve and optimise the use of
energy. The details of conservation of power are given as under :
Purchased unit (KWH) 46787904 46972154
Total amount (Rs.) 93374862 83942566
Rate per unit (Rs.) 2.00 1.79
2. Consumption per unit 1102 1101
Electricity (Unit per MT)
B. Research, Development and Technology absorption:
1. The Company constantly endeavours to bring improvement in all
operational areas for better productivity. 2. The company used foreign
exchange for the import of raw material amounting to Rs.1272.73 lacs during
the year under review.
Projections VS. Performance for the year 1995-96
(Rs. in lacs)
Particulars Projections as per Prospectus Performance
dated 30th October, 1995
Total Income 10410 11861
Profit after tax 555 348
Dividend % 20 12
The profits for year 1995-96 are lower than projections due to adverse
impact of Foreign Exchange fluctuations and other uncontrollable factors.
In order to conserve resources for the speedy implementation of the
Projects, Board of Directors have recommended the dividend @ 12%.
For and on behalf of the Board
Chairman & Managing Director
Place : New Delhi
Dated : 7th August, 1996.