Amal Ltd 2011-12

5 Directors’ Report Dear Members, The Board of Directors of Amal Ltd present the Annual Report of the Company together with the audited statement of accounts for the year ended March 31, 2012. Financial Results ( ` thousands) 2011-12 2010-11 Net Sales 135,380.00 131,882.00 Other income 172.00 108.00 Total income 135,552.00 131,990.00 Profit | (Loss) from operations before tax (34,021.00) (37,377.00) Add: Write back of balances and prior period provisions not required 1962.00 3,483.00 Less: Write off of balances and short provisions of prior period 87.00 3,256.00 Add | (Less) tax expenses - - Add: Write back on settlement with unsecured creditors - - Profit | (Loss) after tax (32,146.00) (37,150.00) Balance in Profit and Loss Account brought forward (425,574.35) (388,424.35) Balance in Profit and Loss carried forward (457,720.35) (425,574.35) Adjustments Less: Waiver from secured loan - - Less: Restructure of reserves and surplus - - Accumulated loss after adjustment of general reserve (457,720.35) (425,574.35) Dividend The Company incurred loss from operations of ` 340.21 lacs. The Board regrets its inability to recommend any dividend considering the loss from operations for the year and also the accumulated loss of ` 4,577.20 lacs as on March 31, 2012. Finance The Company is operating without any borrowing from the bank(s) or financial institution(s). It will obtain loans from bank(s) | financial institution(s) for working capital and for executing new projects after obtaining the requisite approvals. Safety, Health and Environment (SH&E) The Company accords high priority to SH&E. The Company has its own effluent treatment plant at Ankleshwar designed to fully comply with the norms stipulated by the Gujarat Pollution Control Board. The treated water is discharged into common effluent discharge pipeline of Narmada Clean Tech Ltd. BIFR Status The BIFR vide its order dated July 16, 2009 had sanctioned a revival scheme for the Company, and the same was modified vide order dated June 18, 2010. As per the sanctioned scheme, the following steps were taken: • Settled majority of unsecured creditors at 30% of the Principal dues • Issued Redeemable Preference Shares of ` 10 crores to Atul Ltd • Enhanced capacity of Sulphuric Acid plant to 140MT per day Subsequently, the Appellate Authority of Industrial and Financial Reconstruction (AAIFR) vide its order dated March 22, 2011 allowed an Appeal filed with it and remanded the case back to the BIFR for considering a revival scheme through an Operating Agency. Honourable BIFR appointed IDBI Bank as operating agency vide order dated October 11, 2011. IDBI Bank has reviewed