Amal Ltd 2016-17

Amal Ltd | Annual Report 2016-17 Dear Members, The Board of Directors (Board) presents the Annual Report of Amal Ltd together with the audited financial statement for the year ended March 31, 2017. 01. Financial results ( ` 000) 2016-17 2015-16 Revenue from operations 2,86,729 2,58,257 Other income 768 644 Total revenue 2,87,497 2,58,901 Profit | (Loss) from operations before tax and exceptional items 88,866 13,480 Exceptional items: income | (expense) - - Profit | (Loss) for the year after exceptional items 88,866 13,480 Other Comprehensive income (net of tax) 164 161 Profit | (Loss) after tax 89,030 13,641 Balance brought forward (4,46,785) (4,60,426) Balance carried forward (3,57,755) (4,46,785) 02. Financial performance During 2016-17, sales increased by 11% from ` 2,583 lakhs to ` 2,867 lakhs. The Company reported a profit of ` 890 lakhs in 2016-17 against a profit of ` 136 lakhs in 2015-16. 03. Dividend The Board regrets its inability to recommend dividend due to carried forward losses. 04. BIFR status Revised Draft Rehabilitation Scheme (DRS) submitted by the Company through IDBI Bank Ltd (Operating Agency) to the Board for Industrial And Financial Reconstruction (BIFR) was sanctioned by it as Modified Sanctioned Scheme (MS-13) on July 01, 2013. The Company has initiated actions as per MS-13. The Board approved the proposed merger of the Company with Atul Ltd. A share swap ratio of 1 Equity share of face value of ` 10 each fully paid up of Atul Ltd for every 50 Equity shares of the face value of ` 10 each fully paid up of Amal Ltd has been approved at its meeting held on December 05, 2014 subject to BIFR and other statutory approvals. The appointed date of the proposed Scheme was April 01, 2014. The Company has submitted the Modified Draft Rehabilitation Scheme (MDRS) Covering the proposed merger to the BIFR through the Operating Agency on March 31, 2016 for obtaining their approval. The Central Government vide notification dated November 26, 2016 notified the Sick Industrial Companies (Special Provisions) Repeal Act, 2003 effective December 01, 2016. As a result, the BIFR and the Appellate Authority for Industrial and Financial Reconstruction (AAIFR) were abolished and the Sick Industrial Companies (Special Provisions) Act 1985 got repealed. Pursuant to the aforesaid, all proceedings or appeals of whatever nature pending before the BIFR | AAIFR got abated. Consequently draft merger Scheme pending for approval of the BIFR, got abated. In this regard the Board of Directors in the meeting held on March 24, 2017 decided not to proceed with the Merger Scheme. However, any scheme of revival, which has been sanctioned by the BIFR in the past and under implementation , will continue to be in force. Accordingly, the modified sanctioned scheme (MS-13) approved by BIFR in the past and under implementation, will continue to be in force. 05. Conservation of energy, technology absorption, foreign exchange earnings and outgo This is given at page number 07. 06. Insurance The Company has taken adequate insurance to cover the risks to its employees, property, plant and equipment, buildings and other assets and third parties. Directors’ Report