Amal Ltd 2017-18

Amal Ltd | Annual Report 2017-2018 Letter to Shareholders Dear Shareholders, It is our pleasure to present the Annual Report for the year 2017-18 and share with you how the Company performed during the year. The Company manufactures and markets four products, namely Sulphuric Acid 98%, Oleum 25%, Sulphur Trioxide and Sulphur Dioxide. The products are commodity in nature whose prices and contributions fluctuate significantly. The price of key raw material, sulphur, also varies from month to month. In essence, the way to succeed in these products is to ensure high capacity utilisation, excellent conversion efficiency and full deployment of the by-product, steam. You will be pleased to note that the Company made further progress during the year in implementing planned key initiatives to better its performance. Manufacturing efficiency and capacity utilisation were improved, and the supply of steam to a neighbouring plant was enhanced over the previous year. The overall contribution in all the products remained positive, and the price of sulphur remained relatively low. In light of the above, the Company ended the year 2017-18 with sales and other income of ` 3,197 lakhs and profit before exceptional and extraordinary items and tax of ` 971 lakhs compared to ` 2,579 lakhs and ` 890 lakhs respectively in the previous year. Althoughmanufacturing efficiency and output improved during 2017-18, there is still a lot to be done to sustain performance. The Company has identified key initiatives to ensure consistency inmanufacturing performance and higher capacity utilisation to be achieved throughout the year. At the same time, the Company is exploring investments in new value added product(s) in its chosen areas with relatively low investments so that it does not become highly leveraged. We wish to take this opportunity to thank the Independent Directors for their significant involvement and guidance. On behalf of the Board, we wish to thank all the customers for their support and every employee for his (her) commitment and dedication. We look forward to your understanding in our quest for sustained growth. Sincerely, (Rajeev Kumar) (Sunil Siddharth Lalbhai) Managing Director Chairman Office building in Ankleshwar, Gujarat