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Apollo Tubes & Steel Industries Ltd.

BSE: 504628 Sector: Metals & Mining
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Apollo Tubes & Steel Industries Ltd. (APOLLOTUBE) - Director Report

Company director report

1995 APOLLO TUBE AND STEEL INDUSTRIES LIMITED DIRECTORS' REPORT 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. PERFORMANCE 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. FUTURE PROSPECT 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. DEPOSITS As on 30th September 95 there are no unclaimed deposits and also no deposits which has been matured and remain unpaid. STATUTORY PARTICULARS 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. PERSONNEL: 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. DIRECTORS 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 company. 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. AUDITORS 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 production. 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 -- -- 2) COAL 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 blowing. 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 Exchange exports b) Foreign Exchange outgo : Rs. 1.59 Lacs For and on behalf of Board of Directors P. RAJARATHINAM Chairman Place : Madras Date : 1st March, 1996.