Apollo Tubes & Steel Industries Ltd.
||Sector: Metals & Mining
||ISIN Code: N.A.
05:30 | 01 Jan
Apollo Tubes & Steel Industries Ltd
05:30 | 01 Jan
Apollo Tubes & Steel Industries Ltd
Apollo Tubes & Steel Industries Ltd. (APOLLOTUBE) - Director Report
Company director report
APOLLO TUBE AND STEEL INDUSTRIES LIMITED
The Directors have great pleasure in submitting the Annual Report and
Audited Accounts of your Company for the period ended 30th September, 1995,
beginning from 1st April, 1994.
The performance during the period under review has resulted in increased
turn over of Rs. 94.31 Crores as against Rs. 52.95 Crores during the
previous year 1993-94 and registered a growth rate of 17% on annualised
basis. The company has also engaged in trading business which would help
for future operations of the company.
Your Company has received good response from the market due to the optimum
product mix of your company. Your company has decided to plough black the
entire profit made during the period under review for the expansions scheme
on the anvil and as such your directors express their inability in
declaring dividend for the current period.
Your company's product mix have an excellent brand image both in domestic
and international market. Your company is heading for diversification and
expansion plans with an investment of Rs. 400 Crores. M/s. Dastur & Co.,
have already submitted a Project Report and your company's expansions
scheme is on anvil. The major thrust in the proposed diversification plans
is to product APL pipes, SAW pipes, Spiral weld pipes and also to establish
the unit to manufacture CRCA / HR COILS plant for captive consumption and
for exports. Your company is also envisaged for establishing service
centres, which is a new concept in India to manufacture steel tubes using
the steel produced in the CRCA plant for manufacturing LPG cylinders, H-
Beam, etc. The service Centres will be in line with the service centre
established by M/s. Mitsubishi Corporation, Japan.
As on 30th September 95 there are no unclaimed deposits and also no
deposits which has been matured and remain unpaid.
Particulars of employees pursuant to section 217(2A) of the Companies Act,
1956 and the particulars of conservation of energy, technology absorption
and foreign exchange earnings and outgo, are set out in the Annexures to
the Director's Report.
Relations with employees continued to be cordial. The directors wish to
express their appreciation of the team spirit and dedicated services by all
employees at all levels.
We wish to conform that the CBI BS & FC, Bangalore, has filed an FIR that
the liability of State Bank of India seems to be on account of fraudulent
transactions by some of the officials of the company alongwith the
officials of State Bank of India. Your directors are taking appropriate
steps to protect the interest of your company.
Shri. K.V. Krishnamurthy, Shri. P.R. Vittel, Shri. U Kassim Razvi, Shri. R.
Seshadri, and shri. A.M. Sundararaj have all resigned from the directorship
of the company. The board praises on record its appreciation of valuable
services rendered by them during their tenure of directorship of the
Shri. T. Palanivelu, Shri. Mei Sendil Iniya ananthar, Shri. U. Mohammed
Ibrahim Shri. K. Palaniappan and Shri.K. Ranganathan have been co-opted as
Additional Directors of the company.
M/s. Selvam & Kumar expressed his willingness for appointment of Auditor of
the Company in place of M/s. S. Viswanathan, Chartered Accountants, who
retire and expressed his inability for re-appointment.
ANNEXURES TO DIRECTORS' REPORT
Particulars under companies (Disclosures of particulars in the Report of
Board of Directors) Rules 1988 for the period ended 30th September 1995.
(A) CONSERVATION OF ENERGY
(a) Energy conservation measures taken.
The Company lays major emphasis on conservation of energy in its various
manufacturing operations. Conservation of energy systematically monitored,
improvements, planned and implemented in phased manner in areas like power
factor, preventive maintenance and improves insulation of ducts.
b) Additional investments and proposals for reduction of energy.
(c) Impact of measures (a) and (b) above for reduction of energy
consumption and consequent impact on cost of production of goods.
The modification is under trial.
(d) Total energy consumption and energy consumption per unit of
The energy consumption and cost per unit of production in respect of
industry specified in the Scheduled namely - Steel :
(A) POWER AND FUEL CONSUMPTION :-
1) ELECTRICITY Current Year Previous Year
a] Purchased Units (Lacs) 8.32 18.89
Total amount (Rs. Lacs) 32.92 39.21
Rate / Unit 3.96 2.08
b] Own Generation:
i) Through Diesel Units (Lacs) 0.27 0.19
Rate / Litre of Diesel Rs. 7.70 6.87
Cost / Unit Rs. 3.18 2.72
ii) Through Steam Turbine -- --
3) FURNACE OIL
Quantity Kilo Ltrs. 452 351
Total Amount (Rs. Lacs) 27.14 21.04
Average / Kilo Ltrs. (Rs.) 6005.60 5998.07
4) Others / Internal Generation -- --
A) Consumption / Unit of Production
Product: Steel Tubes and Pipes
1) Electricity Kvm/mt 188.22 85.70
2) Furnace Oil Ltrs/mt 99.01 15.75
3) Coal / Others -- --
B) TECHNOLOGY ABSORPTION:
RESEARCH AND DEVELOPMENT (R&D)
a) Specific areas in which R&D carried out by the company.
The major activity is concentrated in zinc consumption and recycling of
b) Benefits derived as a result of R&D
The major benefit will be saving up of zinc cost and effective utilisation
of scarce materials.
c) FUTURE PLAN OF ACTION
Conversion of semi automatic machines to fully automatic machines and
efforts to reduce cost reduction on wastages and waste recovery process.
C) FOREIGN EXCHANGE / EARNINGS / OUTGO
1) a) Earning in Foreign - FOR value of: Rs. 161.26 Lacs
b) Foreign Exchange outgo : Rs. 1.59 Lacs
For and on behalf of Board of Directors
Place : Madras
Date : 1st March, 1996.
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