Amal Ltd 2013-14

Amal Ltd | Annual Report 2013-14 Directors’ Report Dear Members, The Board of Directors (Board) presents the Annual Report of Amal Ltd, together with the audited statement of accounts for the year ended March 31, 2014. Financial Results ( ` ‘000) 2013-14 2012-13 Revenue from operations 162,437 171,610 Other income 2,104 1,492 Total revenue 164,541 173,102 Profit | (Loss) from operations before tax and exceptional items 4,284 (6,047) Exceptional items - (expense) | income 24,884 6,178 Profit for the year after exceptional items 29,168 131 Tax adjustments - - Profit after tax 29,168 131 Balance brought forward (457,589) (457,720) Balance carried forward (428,421) (457,589) Performance Net sales decreased by 7% from ` 1,523 lacs to ` 1,414 lacs; volumes decreased by 8% and prices increased by 1%. Sales income from steam, a by-product, increased by 11% from ` 176 lacs to ` 195 lacs; because of better price realisation. Revenue from operations decreased by 5% from ` 1,716 lacs to ` 1,624 lacs. Profit before tax (PBT) from operations improved from loss of ` 61 lacs to profit of ` 43 lacs. There was a non-recurring income of ` 62 lacs (write-back of provisions) in 2012-13 and ` 242 lacs (sale of scrap of a closed plant) in 2013-14. The total PBT therefore increased from ` 1 lac to ` 292 lacs. Dividend The Board regrets its inability to recommend dividend due to carried forward losses. Management Discussion and Analysis Management Discussion and Analysis covering performance is given at page no 4. Corporate Governance A Report on Corporate Governance along with the certificate from the Statutory Auditors regarding compliance of the conditions of Corporate Governance pursuant to Clause 49 of the Listing Agreement is given at page no 5 to 18. Status of Draft Rehabilitation Scheme (DRS) at the Board for Industrial and Financial Reconstruction (BIFR) 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 take n: • Settled majority of unsecured creditors at 30% of the Principal dues • Issued Redeemable Preference Shares of ` 1,000 lacs to Atul Ltd • Enhanced capacity of Sulphuric Acid plant to 140 MT per day Subsequently, the Appellate Authority for Industrial and Financial Reconstruction vide its order dated March 22, 2011 allowed the Appeal filed with it and remanded the case back to the BIFR for considering a revival scheme through an Operating Agency (OA). The BIFR appointed IDBI Bank Ltd (IDBI) as the OA vide order dated October 11, 2011. IDBI has reviewed the new Draft Rehabilitation Scheme (DRS) and subsequently submitted the same to the BIFR on February 16, 2012 for its review and approval. An Asset Sale Committee was constituted vide BIFR order dated December 06, 2012 and sale of obsolete plant at Atul site was confirmed to the highest bidder at ` 242 lacs which was completed during the year and funds realised were utilised for working capital. DRS submitted by the Company (with March 31, 2013 as cut-off date) was sanctioned as Modified Sanctioned Scheme (MS - 13) on July 01, 2013. The Company has initiated actions as per MS - 13.