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Uni-Metal Alloys Ltd.

BSE: 513482 Sector: Metals & Mining
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Uni-Metal Alloys Ltd
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Uni-Metal Alloys Ltd. (UNIMETALALLOYS) - Director Report

Company director report

1995 UNI-METAL ALLOYS LIMITED DIRECTOR'S REPORT Your Directors place the 11th Annual Report on the business and operations of the Company together with the Audited statement of Accounts for the twelve months period ended 31st March, 1995. DIVIDEND In the absence of Profit, your director express their inability to declare any dividend. OPERATION The Company's Sales-during the year in report was Rs.723 lacs compared to Rs.1168 lacs during the previous year. The sharp decline in Sales (38%) is due to the stiff Power Cut imposed on High Tension Consumers by Andhra Pradesh State Electricity Board (APSEB). Due to pre-planned efforts we have been able to achieve the same Productivity level inspite of the Power Cut Production of M.S.lngot has fallen by only 5% to 5759.460 MT from 6051.350 MT. However, in addition to the official Power Cut, APSEB has most of the time been imposing unofficial cuts as well. This has severely effect the profitability. The Power Cut imposed by APSEB has not yet been withdrawn and there are very little chances of the same being withdrawn in the current year. Consequently, the Current Year Operations continue to be depressed and the Board of Directors have been forced to declare a Lay-Off with effect from 01.10.95. INVESTMENT The Company has invested Rs 100 lacs in the Equity of M/s.Unimetal Ispat Limited, a Company set up for the manufacture of 75000 TPA of Pig Iron at Bellary, Karnataka. M/s Unimetal Ispat Ltd has commenced commercial Production and the company is hopeful of receiving a good return on its Investment in the said company. FUTURE OUTLOOK Due to the uncertain Power situation in the state of Andhra Pradesh, the future outlook of the company is depressing. However, the company is trying to enter into other areas so as to earn a good profitability. DIVERSIFICATION: Having regard to the liberalised industrial policy initiated by the Government, the Directors consider it desirable to extend the object clause in the Memorandum of Association of the Company by way of insertion of new Sub-Clauses as set out in the Resolution No.5 to enable the company to take up all or any one of the activities in course of time as and when considered proper by the Board of Directors . As per the provisions of Section 17 of the Companies Act, 1956, the objects of the company can be amended by a Special Resolution passed by the Shareholders subject to confirmation of the Company Law Board. Accordingly, the Directors propose to amend Clause III of the Memorandum of Association of the Company as set out in the Resolution No.5. As per the provisions of Section 149(2A) of the Companies Act, 1956, approval of the Shareholders is also required for the commencement of any business as set out under the object clause of the Memorandum of Association. The Directors are of the view that it would be beneficial for the company and the shareholders that the company should diversify its activities in such of the areas specified above as the Directors may decide from time to time. The Directors are also. of the view that the specified activities could be conveniently and advantageously undertaken from time to time in addition to or in combination with the existing business activities of the company. SALE/LEASE OF EXISTING UNIT With the changed market situation and the power cuts imposed by the Andhra Pradesh State Electricity Board on high tension consumers the Directors are of the view that it would be beneficial for the company and the shareholders that the company should sell, lease, or otherwise dispose off the whole or part of the undertaking situated at A 21 & 22, A.P.I.E, Balanagar, HYDERABAD - 500 037 (A.P). Accordingly, the Directors propose the same as set out in the Resolution No.6. AUDITOR'S REPORT The comments in the Auditors report read with Notes to Accounts in Schedule are self explanatory and do not call for further explanation. DEPOSITS Your Company has not accepted any deposit within the meaning of Section 58- A of the Companies Act, 1956, and the rules made thereunder. DIRECTORS Shri M.Shyam Sunder & Shri Samir Kumar Bhagat retired by rotation at the ensuing Annual General Meeting, and being eligible, offer themselves for reappointment. AUDITORS The Auditors, M/s.O.P.Bang & Co., Chartered Accountants, Hyderabad retire on the conclusion of this Annual General Meeting and are eligible for reappointment. STATUTORY STATEMENTS None of the employees of the Company draw remuneration of or in excess of the amount prescribed as per Sub-section (2A) of Section 217 of the Companies Act 1956, read with the Companies (Particulars of Employees) Rules, 1975. Additional information on conservation of energy, technology absorption, foreign exchange earnings and outgo as required to be disclosed in terms of Sec.217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 is annexed hereto and forms part of this report. INDUSTRIAL RELATIONS Your Company has declared a Lay-Off from 01.10.95. ACKNOWLEDGEMENTS The Directors would like to place on record their deep gratitude to M/s. State Bank of Bikaner & Jaipur and Andhra Pradesh State Electricity Board for their continued support & co-operation received during the year. ANNEXURE TO DIRECTORS' REPORT Disclosure of Particulars with respect to conservation of Energy, Technology absorption and Foreign Exchange earnings and outgo as required under Companies (Disclosure of Particulars in the Board of Directors Report) Rules, 1988 A) CONSERVATION OF ENERGY a) Energy Conservation measures under implementation: Minimising unscheduled shut downs due to implementation of planned maintenance programme. b) Additional investments and proposal, if any, being implemented for reduction of consumption of energy: Usage of a better product mix to reduce consumption of Energy. c) Impact of the measures at (a) & (b) above for the reduction of energy consumption and consequent impact on the cost of production of goods: Significantly lower consumption of energy per MT of Liquid Steel produced compared to the Industry standards. FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY Current Year Previous Year A) POWER & FUEL CONSUMPTION 1. Electricity a) Purchased Unit (KWH) in lacs 65.66 75.17 Total Amount in lacs 154.30 165.12 Rate per Unit in Rs. 2.35 2.20 b) Own Generatio Nil Coal Nil B. CONSUMPTION PER UNIT OF PRODUCTION Industry Current Previous norms Year Year Electricity (KWH per MT of Steel) 1000 885 852 B) TECHNOLOGY ABSORPTION : The Company is having dialogues with Experts in field of Steel manufacturing to keep abreast of the latest technological developments and innovations. It is trying to adopt better raw material mix by using good quality to achieve optimum benefits and yield. FORM-B (See Rule 2) FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO TECHNOLOGY ABSORPTION A) RESEARCH AND DEVELOPMENT (R & D) 1) Specific areas in which R & D is carried out by the Company: 2) Benefits derived as a result of the above R & D : NIL 3) Future Plant of action : NIL 4) Expenditure on R & D: Current year Previous Year a) Capital Expenditure NIL NIL b) Recurring Expenditure NIL NIL c) Total Expenditure NIL NIL d) Total R & D expenditure NIL NIL as percentage of turnover B) TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION : NIL C) FOREIGN EXCHANGE SAVINGS & OUTGO: a) Activities relating to exports, initiatives taken to increase export, development of new export market for production and services and export plans. The Company is exploring new Export markets for its products. b) Total Foreign Exchange Outgo and Earnings: Rs. Outgo : 3,07,227 Earnings : NIL ON BEHALF OF THE BOARD OF DIRECTORS SUSHIL KUMAR BHAGAT MANAGING DIRECTOR PLACE : HYDERABAD DATE : 15TH JULY, 1995.