Amal Ltd 2012-13

Letter to the Shareholders Dear Shareholders, It is my pleasure to present before you the Annual Report for the year 2012-13 and share with you how the Company faredduring the year. You would be pleased to note that your Company made significant progress during the year in implementing planned key initiatives for enhancement of its performance.The plant operation efficiency showedmajor improvement and the supply of steamto the neighbouring plant at Ankleshwar was greatly enhancedover the previous year resulting intoadditional revenues. Our Company manufactures and markets in all 4 products, namely Sulphuric Acid 98%, Oleum 25%, Sulphur Trioxide and Sulphur Dioxide. Barring Sulphur Dioxide and to some extent Sulphur Trioxide, both of which have low demand, the other products are commodity in nature whose prices and contributions fluctuate significantly.The price of key rawmaterial, Sulphur, also varies frommonth to month. In essence, the way to succeed in these products is to ensure full deployment of steam product), excellent conversion efficiency andhigh capacityutilisation. The prices of Sulphur, a key raw material, showed a downward movement during the second half of the year to an extent of 10% over the previous half of the year, providing a much needed respite to the declining product contributions. However, owing to the market dynamics, Sulphuric acid selling prices were lower than the cost, impacting the overall product contributions during the year. Although our plant efficiencies andproductionoutput did improve over the previous year, there is still a lot tobedone in terms of consistent output aswell as our ability to sustaindesiredperformance levels. The Company ended the year 2012-13 with a sale from operations at 1716 lacs, and profit before exceptional and extraordinary items and tax at (60) lacs compared to 1354 lacs and (340) lacs respectively in the previous year. Income from exceptional items of 61 lacs during the year enabled the Company to register a profit of 1.31 lac as compared toa loss of 321 lacs during the previous year. The Company has identified key initiatives to ensure consistency in production performance with higher capacity utilisation tobe sustained throughout the year. At the same time, we are exploring and evaluating new value added product(s) in our chosen areas with relatively low investments so that we do not become highly leveraged. We will have more clarity about such investments,which formPhase2 of our strategy,during2013-14. TheModified Draft Rehabilitation Scheme (MDRS) submitted to BIFR is due for approval; this would enable theCompany to further implement various initiatives toenhanceperformance. We wish to take this opportunity to thank the Independent Directors for their significant involvement and guidance. On behalf of all our colleagues on the Board, we wish to thank our customers for their support and employees for their commitment anddedication. We look forward toyour understanding inour quest for recovery. Sincerely, Vasudev Koppaka Sunil Lalbhai (a by- ` ` ` ` ` ` ` Managing Director Chairman Amal Ltd | Annual Report 2012-13