UNI-METAL ALLOYS LIMITED
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.
In the absence of Profit, your director express their inability to declare
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 The Power Cut imposed by APSEB has not yet been withdrawn
and there are very little chances of the same being withdrawn in the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.
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.
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.
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
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.
The comments in the Auditors report read with Notes to Accounts in Schedule
are self explanatory and do not call for further explanation.
Your Company has not accepted any deposit within the meaning of Section 58-
A of the Companies Act, 1956, and the rules made thereunder.
Shri M.Shyam Sunder & Shri Samir Kumar Bhagat retired by rotation at the
ensuing Annual General Meeting, and being eligible, offer themselves for
The Auditors, M/s.O.P.Bang & Co., Chartered Accountants, Hyderabad retire
on the conclusion of this Annual General Meeting and are eligible for
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)
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.
Your Company has declared a Lay-Off from 01.10.95.
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
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
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
B. CONSUMPTION PER UNIT OF PRODUCTION
Industry Current Previous
norms Year Year
(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
The Company is exploring new Export markets for its products.
b) Total Foreign Exchange Outgo and Earnings:
Outgo : 3,07,227
Earnings : NIL
ON BEHALF OF THE BOARD OF DIRECTORS
SUSHIL KUMAR BHAGAT
PLACE : HYDERABAD
DATE : 15TH JULY, 1995.