HIND ALUMINIUM INDUSTRIES LTD.€¦ · annual report 201 0-201 1 financial highlights 7 in crores particulars total income pbdlt 2010-11 361.28 11.93 2009-10 184.14 7.07 depreciat'on

\

HIND ALUMINIUM INDUSTRIES LTD.

ANNUAL REPORT 2010-201 1

ANNUAL REPORT 201 0-201 1

FINANCIAL HIGHLIGHTS 7 in Crores

PARTICULARS

TOTAL INCOME

PBDlT

2010-11

361.28

11.93

2009-10

184.14

7.07

DEPRECIAT'ON 1 2.70 2.64

4.43

0.80

3.63

15

5.00

27.32

32.32

22.85

PBlT

INTEREST

I PBT

EQUITY DIVIDEND %

SHARE CAPITAL

RESERVE 8 SURPLUS

NET WORTH

NET FIXED ASSETS

2008-09

220.05

7.32

9.23

1.14

8.09

15

6.30

35.56

41.86

22.19

2.54

4.78

I

1.20

3.58

15

' 5.00

25.47

30.47

23.92

2007-08

206.50

8.85

1.12

7.73

1.12

6.61

15

5.00

23.99

28.99

24.65

2006-07

202.49

10.55

2005-06

167.44

6.06

1.12

9.43

0.38

9.05

15

5.00

20.63

25.63

18.92

0.43

5.63

0.07

5.56 ~ 12

=.OO ' 15.59

20.59

9.09

1

HIND ALUMINIUM INDUSTRIES LTD. - NOTICE OF THE ANNUALGENERAL MEETING

NOTICE is hereby given that the 24thAnnual General Meeting of the members of Hind Aluminium Industries Ltd. will be held at "Maheshwari Pragati Mandal-Mumbai" 1 st Floor, Maheshwari Bhavan, 603, Jagannath Shankar Sheth Marg, Cheera Bazar, Marine Lines (East), Mumbai - 400 002 on Thursday, the 11th August,2011 at 11 .OO a.m. to transact the following business:

ORDINARY BUSINESS: 1. To receive, consider and adopt the Audited Balance Sheet and the Profit & Loss Account for the

year ended 31st March, 2011 and the Reports of the Directors' andAuditorsl thereon.

1 2. To declare dividend on Equity Sharesfor the year ended 31st March, 2011.

3. To appoint a Director in place of Shri Navin Shah who retires from oftice by rotation and, being eligible, offers himself for re-appointment.

4. To appoint Auditor of the Company. to hold office from the conclusion of this Annual General Meeting until the conclusion of the nextAnnual General Meeting of the Company and to fixtheir remuneration.

SPECIAL BUSINESS:

I 5. To consider and it thought fit, to pass the following Resolution which will be proposed as a Special Resolution:

RESOLVED that in accordance with the provisions of sections 198, 269, 309 and other applicable provisions, if any, of thecompanies Ad, 1956 (the act) read with Schedule XIII of the said Act, and subject to approval of members in the forthcoming General Meeting, the Company hereby approves the re- appointment of Shri Shailesh Daga as Managing Director of the Company for the period of 5 years with effect from 1st July, 2011, on the following remuneration (subject to maximum Rs.2,00.0001- per month):

A) Period : From 1st July,2Ol1 to 30th June,2016 B ) Salary : Up to Rs.2,00,0001-per month

C) Perquisites &Allowances: (a) In addition to the salary & commission payable, the Managing Director shall also be entitled to perquisites

and allowances like accommodation (furnished or othetwise) or house rent allowance in lieu thereof; house maintenance allowance, together with reimbursement of expenses or allowance for utilities such as gas, electricity, water, furnishings and repairs, medical reimbursement, club fees and leave travel concession, for himself and his family, medical insurance or and such other perquisites and allowances in accordance with the rules of the Company or asmay be agreed to by the Board of Directors.

(b) Provision for use of the Company's car for ofticial duties and telephone including cellular phone at residence (including payment for local calls and long distance ofticial calls) shall not be included in the computation of perquisites.

(c) Company's contribution to Provident Fund and Superannuation or Annuity Find, to theextent theseeither singly or together are not taxable under the Income-taxAct, gratuity payable at a rate not exceeding half a month salary for each completed year of service and encashment of leave at the end of the tenure, shall not be included in the computation of ceiling on remuneration specified paragraph 1 Section II of Part II of Schedule Xlll of the Companies Act.

D) Minimum Remuneration : In event of loss or inadequacy of profit in any year, the Managing Director shall be entitled to payment by way of salary (1) and perquisites and allowances (2) as specified above.

For and on behalf of the Board

Lallt Kumar Daga Chairman

I Place : Mumbqi Dated : 30th May, 2011

ANNUAL REPORT 2010-2011

NOTES FOR MEMBERS' ATTENTION 1 A MEMBER ENTITLED TO AlTEND AND VOTE AT THE ANNUAL GENERAL MEETING IS

ENTITLED TO APPOINT A PROXY TO AlTEND AND VOTE INSTEAD OF HIMSELFIHERSELF AND THE PROXY NEED NOT BE A MEMBER OF THE COMPANY. THE INSTRUMENT APPOINTING A PROXY SHOULD HOWEVER BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOT LESSTHAN FORTY EIGHT HOURS BEFORETHE COMMENCEMENT OFTHE MEETING.

2. The Register of Members and Share Transfer Books of the Company will remain closed from 10th August,2011 to 11th August,2011 (both days inclusive) for the purpose of Annual General Meeting & Dividend.

3. The dividend as recommended by the Board, if approved at the Annual General Meeting, will be paid on or after 16th August,2011 to those Members or their mandates whose names are registered on the Company's Register of Members:

a) as Beneficial Owners as at the end of business on the 9thAugust,2011 as per the list to be furnished by the National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) in respect of the shares held in electronic form, and

b) as Member in the Register of Members of the Company after giving effect to all valid share transfer in physical form which are lodged with the Company or its Registrar & Share Transfer Agents (RTA) on or before 9th August,2011.

4. Members are requested to make all correspondence in connection with shares held by them by addressing lettersdirectly to the RTAorland the Company at its registered office address.

5. As per the provisions of the Companies Act, 1956, facility for making nominations is available to INDIVIDUAL holding shares in the Company. The Nomination Form can be obtained from the RTAor the Company's registered office.

6. Disclosure pursuant to Clause 49 of the Listing Agreement with respect to the Director seeding re- appointment at the forthcoming Annual General Meeting are as under:

Re-appointment: Shri Navin Shah (70 years) is a Bachelor in Science (B.Sc.) from Kolkata University & Bachelor of Electrical Engineering (B.E.)from Jadavpur University and has over 43 years business experience. (Note: Pursuant to Clause 49 of the listina aareement. onlv Public Limited Com~anies directors hi^ have - - . . been considered).

7. Pursuant Section 205A read with Section 205C of the Companies Act,1956 as amended from time to time, the amount of dividend remains unpaidlunclaimed for the period of 7 years from the date of payment is required to be transferred to the Investor Education and Protection Fund (IEPF) ofthe Central Government. After that there remains no claim of the members whatsoever on the said amount accordingly, the dividend for the financial year ended 31st March,2004 and thereafter, which remains unclaimed for a period of 7 years will be transferred to the said account.

8. Members1 proxies should bring their Attendance slip herewith, duly filled in, for attending the meeting.

ANNEXURE TO NOTLA --

Ex~lanatorv statement under section 173/2\ of the Com~anies, Act, 1956

At the meeting of the board of Directors held on 30th May,2011, Shri Shailesh Daga has re-appointed as Managing Director of the Company for a further period of 5 years with effect from 1 st July,2011.

Shri Shailesh Daga (42 yrs) is a Commerce Graduate from Mumbai University and Master in Business Administration from Bond University, Australia. Under his leadership the Company has made rapid progress and therefore board of directors of the Company wishes to re-appoint him as Managing Director of the Company for a further period of 5 yearsw.e.f. 1st July,2011 to 30th June,2016..

The resolution & explanatory statement be treated as an abstract under section302 of the Companies Act,1956. No Director of the Company except Shri Shailesh Daga and Shri Lalit Kumar Daga (who is related to Shri Shailesh Daga) islare concerned or interested in the resolution.

For and on behalf of the Board

Lalit Kumar Daga Chairman

Place : Mumbai \ Dated : 30th May, 2011


( DIRECTORS' REPORT TO THE SHAREHOLDERS

Dear Shareholders, Your Directors have pleasure in presenting the 24m

Annual Report together with Audited Balance Sheet and Profit 8 Loss Account for the year ended 31st March. 2011. The highlights ofthe financial resultsare as under:

FINANCIAL RESULTS: 201 0-2011 2009-201 0 (7 . in Crores) (?.in Crores)

Total Income 3~61.28 184.14 Gross Profit 10.79 6.27 Less: Depreciation 2.70 2.64 Profit before tax 8.09 3.63 Tax expenses .- 3.03 0.89

1 Profit afler tax 5.06 2.74 Add: Balance brought forward from previous year 25.62 24.01 ' Surplus available for appropriation 30.68 26.75 Appropriation : General Reserve 0.25 0.25 Dividend 0.94 0.75 Corporate tax on dividend 0.16 0.13 Balance bansferred to Balance Sheet 29.33 2562

REVIEW OF OPERATIONS During the year your Company has shown improved performance. Your Company's income has increased to Rs.361.28 Crores from Rs.184.14 crores in the previous year. This has been possible due to increased sale in the Conductor division of the Company. The total volume handled by the company has increased and this also led to an increase in the net profit to Rs.5.06 Crores as compared to Rs.2.74 Crores in the previous year.

WIND POWERGENERATION Your Company has two Wind Turbine Generator ( W G ) , one is of 1.25 Mega Watts located at District Nandurbar and another is 1.50 Mega Watts located at Sangli, both are in Maharashtra State. During the year 47,18,492 units of power were generated as compared to 56.61,920 units in the previous year and reduction in generation of power was due to low wind pattern in that area.

IS0 9002 The Wire Rod as well as Conductor divisions of the Company are IS0 9001:2008 certified and the Company is committed to maintain and improve quality.

ALLOTMENT OF EQUITY SHARES ON PREFERENTIAL BASIS During the year 2010-2011, your Company has allotted 13,00,000 preferential equity shares of Rs.101- each fully paid-up for cash at a premium of Rs.331- per share aggregat ing Rs.5,59.00,0001- to non-promoter shareholders in compliance with the provisions of Section 81. 81(A) and other applicable provisions, if any of the Companies Act,1956 and listing agreement entered into between the Company and Bombay Stock Exchange Ltd (BSE), the guidelines, regulations and clarifications issued by Security Exchange Board of India (SEBI).

In view of the same, the authorized share capital of the Company has increased from Rs.5,50.00,0001- to Rs.6,50,00.0001- and subsequently issued, subscribed 8 paid-up capital hasalso increased by Rs. 1,30,00,0001- and now its became Rs.6,30,02,000/-.

DIVIDEND SUBSIDIARY COMPANIES Your Directors are pleased to recommend a Dividend of During the year Company has incorporated a subsidiary Rs.1.50 per equity share (same as Previous year) i.e 15% Company named 'Associated Industries Ltd. SFZ' in which will be paid in line with the applicable rules after your Sultanate of oman for exploring the processing approval at the ensuingAnnual General Meeting. opportunities of mineral resources.

WIRE RODS 8 CONDUCTORS In the year gone by theAluminium Division of the Company has shown an increase in its production from 25,232 MT in the previous year to 27,687 MT in the current year. This has primarily on account of increase in production of Conductors which has gone up from 6458 MT to 8554 MT. The capacity utilization of Conductor Plant is consistently

CORPORATE GOVERNANCE Pursuant to Clause 49 of the Listing Agreements with the Bombay Stock Exchange Ltd., a Management Discussion and Analysis Report on Corporate Governance and a Certificate from the Company's Statutory Auditors are a part of this report.

going up and we hope in the current year we will see significant jumpoverthe last year figures. CONSERVATION OF ENERGY, TECHNOLOGY

ABSORPTION 8 FOREIGN EXCHANGE EARNING AND We are pleased to inform you that the Company has got OUTGO itself registered with most Electricity Boards in the country. The information pursuant to Section 217 (1) (e) of the We have SuccessfullY supplied to a lot of them and are Companies Act, 1956 read with the Companies (Disclosure presently having g w d orders for supply of Aluminium of particulars in the Report of Board of Directors) Rules. Conductors. All these should contribute to an increase in the 1988 is annexed to this report, Aluminium Division's sales.

MINING BUSINESS PARTICULARS OFEMPLOYEES

In the year2010-2011 the Company hasshown an increase At the end Of the year 2010-2011 the Company has

in trading of it^ and sold 41,950 MT ~~~~i~~ as executive who was in receipt of remuneration exceeding the compared to 15,424 MT in previous year. Due to dramatic Sum Prescribed under Section 217 (2A) of the Companies fluctuation in the price of Iron Ore, the Company has Act, 1956 read with the Companies (Particulars of restricted its exposure in this commodityduring the ear. Employees) Rules, 1975.


T DIRECTORS RESPONSIBILITY STATEMENT Pursuant to the requirement under Section 217 (2AA) of the Companies Act. 1956. with respect to Directors' responsibility statement, it is hereby confirmed that:

I) in the preparation of Annual Accounts, the applicable Accounting Standards have been followed along with properexplanation relating to material departures;

ii) the directors had selected such accounting policies , and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2011 and of the profit ofthe 1 Company for the said period;

AUDITORS Mls. A.J. Baliya & Associates, Chartered Accountants, Auditors of the Company, retire at ensuring annual general meeting and being eligible for re-appointment.

ACKNOWLEDGEMENT The Directors would like to express their sincere appreciation of assistance and Co-operation received from their Bankers during the year under review. Directors also wish to place on record their deep sense of appreciation of the devoted services rendered by all the employees of the Company.

. ~

For and on behalf of the Board iii) the directors have taken proper and sufficient care of

the maintenance of adequate accounting records in accordance with the provisions of the Companies Act1956 for safeguarding the assets of the Company Ldit Kumar Daga and for preventing and detecting fraud and other Chairman irregularities: Place : Mumbai.

Dated : 30thMay, 2011 iv) the directors have prepared the Annual Accounts on a

going concern basis.

I ANNEXURE TO DIRECTORS'REPORT IV. FOREIGN EXCHANGE EARNING AND OUTGO I I. CONSERVATION OF ENERGY There are no major areas where energy conservation measures were viable. However, wherever possible. efforts were made to conserve use energy through improved operational methods.

II. RESEARCH AND DEVELOPMENT a. Specific areas in which R&D was carried out by the C o m ~ a n v The domiany is actively engaged in product up gradation, design, development and new product development.

b. Benefits derived as a result of the above R & D Improved product designs resulted in higher value added products which achieved better realisation.

c. Future plan of action Emphasis on the above activities will be an on going exercise.

d. Expenditure on R&D Since the expenditure incurred on research and development activities were not substantial, no separate account for the same was being maintained.

a. Activities relating to exports During the year, the company could not export any material as compared to Rs. Nil in the previous year.

b. Initiatives taken to increase exports Your Company has been in constant touch with various customers around the world. We hope that our regular follow-up will result in procuring export orders.

c. Development of new export markets Your Company is constantly exploring the possibilities of exporting its products. This is anon going process.

d. Export Plans Export sales can only be increased by developing relationship with prospective buyers. In this connection your Company's officials plan to visit some countries to explore pogsibilities of export sales.

e. Total Foreign exchange used and earned The information on the above is given in Notes on Account (Schedule-N to the Accounts).

For and on behalfofthe Board

1 Ill. TECHNOLOGY ABSORPTION. ADAPTATION AND I I INNOVATION

Since Company's products are being developed by an in- house R & D team, no further information under this head is Place : Mumbai. required to be given. Dated : 30th May, 2011


f \ ( REPORT ON CORPORATE GOVERNANCE I Hind Aluminium Industries Ltd. believes in conducting its affairs in a fair, transparent and professional manner and maintaining the good ethical standards in its dealing with all its constituents. I In terms of Clause49 of the Listing Agreement executed with The Bombay Stock Exchange Ltd.. the details of compliance for the yearended 3lst March,2Oll areasfollows:

I. BOARD OF DIRECTORS

Composition of the Board :

.:. Your Company's Board compriseof 6 Directors, which include one Managing Director and three lndependent Directors. The details of the Directorswith regard to outside directorship and committee position are as follows:

1. lndependent Director means a Director as defined under Clause49 of the Listing Agreement. 2. Only two committees viz. the Audit Committee and the Shareholders I Investor Grievance Committee of all other public limited Companies are considered

( .:. Non-Executive Directors compensation and disclosure I Apart from sitting fees that are paid to Non-Executive and lndependent Directors for attending Board I Committee meetings, no other fees I commission were paid during the year. No transactions have been made with the Non- Executive and lndependent Directors vis-a-vis your Company. The details of sitting fees paid to the Directors are given separately in this report.

.:- Other provisions as to Board and Committees During the yearunderreview, the Board met 10 times. The number of Board meetings held, number of Directors present and details of sitting fees paid to non-executive 8 lndependent Directors for board meetings are as follows:

Director I - - - - I

No. of Board Meetings held

Shri Lalit Kurnar Daga 1 10 Shri Shailesh Daga CA. Sudhir Goel Shri Navin Shah

Annual operating plans, capital budgets thereof. Quarterly financial results Minutes of meetings of Audit Committee, InvestorsGrievance Committee and other committees of the Board. Information on recruitment and remuneration of senior officers just below the Board level. Materially important show cause, demand, prosecution and penalty notices. Fatal or serious accidents, dangerousoccurrences, any material effluent or pollution problems. Any materially relevant default in financial obligations to and by the Company, or substantial non-payment Issue which involves possible public or product liability claims of a substantial nature. Significant development on the human resources and industrial relations front Quarterly details of foreign exchange exposure and steps taken by the management to limit the risk of adverse exchange rate movement. Non-compliance of any regulatory, statutory or listing requirements and shareholders service such as non-payment of dividend, delay in etc.

I I - -

NO. o f Board Meetings attenrled

10 10 10

Shri Sundeep Mohta

Yes 10

Total eittlng fees paid for board meeting

7.

75001- 10 10 10

Shri Narayan Das Mundhral 10 10 75001- Yes J The information placed before the Board includes :

10

Attended last AGM

N.A. 75001- 75001-

10

Yes Yes Yes

75001- Yes


The Board of Directors of your Company is routinely presented with all information under the above heads whenever applicable and materially significant. These are submitted either as part of the agenda papers well in advance of the Board Meetings or are tabled in course of the Board meeting or are tabled before the appropriate committee of the Board.

+:- Code of Conduct

The Board of Directors has adopted Code of Conduct for all the board members and senior management of the Company and all the board members and senior management personnel have aftirmed compliance with the Code of Conduct for the current year.

II. AUDIT COMMITTEE

Your Company has an Audit Committee. The composition, procedure, rolelfunction of the committee complies with the requirements of the CompaniesAct,l956 as well as in accordance with Clause 49 of the Listing Agreement.

-2 Composition of Committee meeting's held 8 attended andsitting fees paid During the year, Audit Committee met four times.

Name of Member 1 No. of Meetings Held 1 Attended

> , I I

Shri Sundeep Mohta flndeoendent Director) 4 4 7-71

Sitting Fees Paid i 1 I I

Shri Navin Shah - Chairman llndeoendent Director)

Details of the Directors seeking re-appointment at the forthcoming Annual General Meeting are provided in the Notice convening theAGM.

. .

Ill. SUBSIDIARY COMPANY Associated Industries Ltd. SFZ'incorporated in Sultanateof Oman

4

CA. Sudhir Goel (Non Executive Director)

IV. DlSCLOSURES Disclosures on materially significant related party transactions that may have potential conflict with the interest of the Company at large.

Particulars of related party transactions are listed out in Schedule N (16) of the Balance Sheet forming part of the Annual Report.

4

4

Disclosure of accounting treatment Your Company has followed all relevantAccounting Standards while preparing the financial statements.

30001-

Risk Management The Audit Committee of the Board has periodically reviewed the procedures laid down by your Company for assessing and managing risks.

4

Procedure frompublic issue, right issue, preferential issue etc. During the year, your Company has raised fund of Rs.5.59 Crores by way of allotment of Equity shares on preferential basis.

30001-

Remuneration of Directors No separate remuneration committee has been constituted. All decision relating to the remuneration of the Managing Directoris taken by the Board in accordance with the approval received from the members of your Company.

The details of remuneration d aid toihe Manaaing Director are as follows:

Relationshrp with 1 Managing Director 1 I Remuneration paid during 2010-2011

t - - . -. - .. - -

1 I All elements of I

I Fixed comoonent & I Service contracts. 1 Stock ootion

Shri Shailesh Daga ::,Of ~ " : ~ ~ ~ ~ h,i,,,,,,,

remuneration package i.e.salaiy, benefits,bonuses, pensions etc. (a)

8,40,0001-

performance linked incentives, along with performance criteria (b)

Nil

notice period, Details, if any severance Fee

~- A

HIND ALUMINIUM INDsUSTRlES LTD.

f a) The appointment is for a period of 5 years w.e.f. 30.06.2006. No severance fees is payable to Managing Director.

The board has re-appointed him for a further period of 5 years w.e.f. 01.07.2011 in their meeting heldon 30.05.2011. b) The Company does not have any scheme forgrant of stockoptions to its Directors or Employees. Management The Management Discussion and analysis form part of the Annual Report and is in accordance with the requirements laid down in Clause 490f the Listing Agreement. There are no material transactions with related parties that may have potential conflict with the interests of the Company. As perAccounting Standard 18, relevant disclosures are made in the financial statement for the year.

Shareholders Grievance Committee Your Company has a Shareholders1 Investors Grievances Committee at the Board level under the Chairmanshipof a Non- Executive Director.

The Committee meets to review the status of investor grievances and systems and procedures followed to track investor complaints and suggest measures for improvement from time to time. During the year the Committee met twotimes.

During the year, Shareholders1 Investor Grievance Committee met 2 times i.e. on 28th September.2010 and 25th March.2011. The composition and sitting fees paid are asfollows:

To expedite the Share transfer in physical segment, necessary authority has been delegated by your Board of Directors of your Company to approve transferltransmission of shares. Details of the transfer/transmission approved by the committee placed before theBoard.

Name of Member

CA. Sudhir Goel - Chairman (Non-Executive Director)

Shri Navin Shah (Independent Director)

Shri Sundeep Mohta (Independent Director)

Shri Narayan Das Mundhra (Independent Director)

Code of Conduct for Board Members Pursuant to Clause 49 of Listing Agreement with the Bombay Stock Exchange Ltd., the Board Members of the Company have affirmed compliance with the Code of Conduct forthe year ended 31 st March. 201 1.

V. CEO/ CFO CERTIFICATION A certificate from the Managing Director on the Financial Statements of the Company in terms of Clause 49 of Listing Agreementwas placed before the Board, who took the same on record.

No. Meetings HeM

2

2

2

2

VI. REPORTON CORPORATE GOVERNANCE The Corporate Governance Report forms part of the Annual Report. Your Company has complied with all the mandatory requirements of Clause 49ofthe Listing Agreement.

VII. COMPLIANCES Certificate from the Statutory Auditors confirming compliance with all the conditions of corporate governance as stipulated in Clause 49 of the Listing Agreement is annexed to the Report and form partof the Annual Report.

Attended

2

2

2

2

VIII. GENERAL BODY MEETINGS Location and time, where last 3 Annual General Meetings held

Sitting Fees Paid (R.4

1500

1500

1500

1500

Year Location Date Tlrne - -.- .

2010 Maheshwari Pragati Mandal.Mumbai-400002 SthAugust, 2010 ll.OOa.m. 2009 Maheshwari Pragati Manda1,Mumbai-400 002 29thAugust. 2009 10.30 a.m. 2008 Maheshwari Pragati Mandal,Mumbai-400002 30 th~u~us t , 2008 11 .OO a.m.

Whether special resolutions passed in the previous 3AGMs. -NO

IX. MEANS OF COMMUNICATION The quarleliy, half yealiy and annual results are published In dally Engllsh new8 paper 'The Free Press Journal" and Marathl daily news paper 'Navshakti" in its Mumbai editions.


f SHAREHOLDER INFORMATION 1. Annual General Meeting

Date and Time : Thursday, 11TH August.2011 at 11.00 a.m.

Venue : 'Maheshwari Pragati Mandal-Mumbai' 1st Floor, Maheshwari Bhavan, 603, Jagannath Shankar Sheth Marg, Chwra Bazar, Marine Lines (E), Mumbai - 400 002.

2. Financial Calendar Fin. reporting for the quarter ending Jun. 30,2011 : By 14th August, 2011 Fin. reporting for the half year ending Sep.30, 2011 : By 14th November, 2011 Fin. reporting for the quarter ending Dec. 31,2011 : By 14th February, 2012 Fin. reporting for the year ending Mar.31. 2012 : By 30th May, 2012

3. Dates of Book Closure : 10th August, 2011 to 11th August. 2011 (Both days inclusive)

4. Dividend payment date : On or afler 16th August,2011

5. Registered Office : Hind Aluminium Industries Ltd. B-1, Tulsi Vihar, Dr.A.B. Road, Wodi Naka. Mumbai - 400 018. Tel. : (022) 40457100 Fax.: (022) 24936888 Email: [email protected] Website : w.associatedgroup.com

6. Listing Details B Stock Exchange's Script Code : Bombay Stock Exchange Ltd. Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 023.

7. Stock Code : Bombay Stock Exchange : 531979

8. lSlN allotted to Equity Shares : INE227B01019

Note : Listing fees for the year 2011-2012 has been paid to Bombay Stock Exchange Ltd.

9. Stock market price data for the year Months High Low Close Total Volume

(in Rs.) (in Rs.) (in Rs.) (In Nos.) April. 10 50.90 40.75 45.20 1.53,976 May, 10 58.60 41.70 46.70 3.43,705 Jun., 10 49.00 44.55 45.50 56.239 July, 10 52.00 43.00 47.95 95,558 August,lO 55.90 43.20 48.95 1.80,636 September.10 71.60 48.45 67.25 4.82.728 October, 10 70.70 56.25 58.60 259,975 November, 10 64.40 45.00 50.20 1.09,314 December,lO 54.50 41.30 49.65 40,897 January, 11 54.90 43.15 46.15 25.534 February, 11 48.50 38.30 42.70 20,012 March, 11 45.75 35.85 40.35 13.611

10. Stock Performance Stock P.rForm.mr Vs BSE %nux 1


/ 11. Registrar and Transfer Agents

12. Share Transfer System

13. Investors Service

Computronics Financial Services (India) Ltd. 1, Mittal Chambers, Nariman Point, Mumbai - 400 021 email : [email protected] Share transfer in physical form are dispatched within the prescribed time limit, if documents are clear in all respect. The trading in the Company's share are permitted only in the dematerialized segment. Complaints received during the year:

Nature of complaints Pendingfor more that 2ldavs Closinu b a l m Relating to transfer, transmission, Nil Nil dividend, demat, remat and change of address etc.

1 14. Distribution of Shareholding as on 31st March, 2011

No.of Equity No.of Share Shares held holders 1- 500 2785 501-1000 263 1001 -2000 114 2001 -3000 48 3001 -4000 17 4001 -5000 17 5001 -10000 20

47 10001 and above 3311

--

% of Share holders

84.11 7.94 3.44 1.45 0.51 0.51 0.61

No.of shares held

4,99,433 2,13,243 1,81,917 1,27,430

58,989 81,842

1,34,019

1 15. Categories of Shareholding as per Listing Clause 35. as on 31st March. 2011

Category No.of Shares Holders

Indian Promoters 14 Corporate Bodies 115 NRlsIOCBs 29 Indian Public 3153

3311

16. Dematerialisation of Shares and Liquidity

17. Plant Locations i. Aluminium Wire Rod 8 Conductor

ii. Wind Turbine Generators

iii. Minerals Division

18. Investor correspondence

% Share holding

7.93 3.38 2.89 2.02 0.94 1.30 2.13

79.41 100.00

% of Share No.of Shares % Share Holders Held Holding

0.42 31,98,619 50.77 3.47 2,84,689 4.52

: 96.48% Equity shares of your company have been dematerialized upto 31st March,2011.

: Survey No.112, Village Khutali, Khanvel- Doodhani Road, Conductor Village; Khanvel, Dist.; Silvassa - 396230 (UT of DNH)

i) Gut No.59-1/A, Village; Akhtwade, Dist.; Nandurbar (Maharashtra)

ii) Location No. 275, Survey No.818 of Village Narasewadi, Taluka; Tasgaon, Dist.; Sangli.

: 5, Aishwara Residency G.E.Road, Telebandha, Raipur-492001 (Chattisgarh)

: For shares held in physical form Computronics Financial Services (India) Ltd. 1, Mittal Chambers, Nariman Point, Mumbai - 400021 email: [email protected] For shares held in demat form Your Depository Participant (DP) Any other queries Hind Aluminium Industries Ltd.. 0-1, Tulsi Vihar, Dr.A.B.Road, Worli Naka, Mumbai - 400 018. email : [email protected]


Auditor's Certificate on Corporate Governance

I To the members of HindAluminium Industries Ltd.

We have examined the compliances of the conditions of Corporate Governance by Hind Aluminium lndustries Ltd. for the year ended 31st March, 2011 as stipulated in Clause 49 of the Listing Agreement of the Bombay Stock Exchange Ltd.

The compliance of conditions of the corporate governance is the responsibility of the management. Our examination was limited to the procedure and implementation thereof, adopted by the Company for ensuring the compliance with conditions of the certificate of corporate governance as stipulated in the said clause. It is neither an audit nor an expression of the opinion of the financial statement of the Company.

In our opinion and to the best of our information and according to explanations given to us and the representations made by the Directors and management, we certify that the Company has complied with the conditions of corporate governance as stipulated in clause 49 of the above mentioned listing Agreement.

As required by the guidance note issued by the Institute of Chartered Accountants of India, we have to state that while the shareholders1 investors grievance committee has not maintained record to show the investors grievances pending for a period of one month against the Company. The Registrar and Share Transfer Agent of the Company have maintained the records of investors grievance and certified that as at 31st March, 201 1, there was no investor grievance remaining unattended1 pending for more than 30 days.

We further state that such compliance is neither as assurance as to the future viability of the Company nor the efficiency of effectiveness with which the management has conducted affairs of the Company.

For A.J.Baliya & Associates Chartered Accountants

M.P.Mody (Partner)

Place : Mumbai Dated : 30th May, 2011


f . I Managements' Discussion and Analysis

Industry sector and development Your Company is involved primarily in two areas of business, namely Aluminium and Minerals. The year 2010-11 has shown good growth of aluminium and the coming year promises even better growth especially in the electrical sector where most of the aluminum products made by the Company are used.

In the mineral sector your Company is trying to look for more sources of bauxite so as to increase it's business in this sector.

Opportunities The Government of lndia has an ambitious mission of powerfor all by 2012, so we continue to remain positive on opportunity in the power sector. Our analysis of proposed I ongoing infrastructure projects indicates that the strong order inflow momentum would continue in thissector. Every rupee spent in generation of power would be followed by an equivalent spending in the transmission & distribution sector. Over the last few years we have witnessed considerable investment in the generation space. We are, therefore feel there should be more demand forthese products in the coming years.

Major threats While significant investments are planned by the Government of India, there has always been a lag in the planned investments and in the actual implementation and execution of those investments. The Company operates in a highly competitive environment and most orders in lndia are finalized through the tendering process. While the Company is well placed in this segment, with increase competition realisation may be hit going forward.

In the mineral area there are always certain issues like logistics, local environment which are difficultto predict and can become an impediment in the working of thisdivision.

Segment-wise performance. We closed F Y l l with revenue of Rs.361.28 Crores, which is a growth of 96% over last year's revenue of Rs.184.14 Crores. The net profit for the year was Rs.5.06 Crores as compared to Rs.2.74 Crores in previous year and this translated into a growth of 85% for this year against the last year.

The Aluminium Products division has reported an increase in sales from Rs.176.10 Crores to Rs.355.45 Crores. This is primarily on account of sharp increase in Conductors.

I In the mining division the total loss has reducedfrom Rs.0.17 Crores to Rs.0.04 Crores.

The company has two Wind Turbine Generators of 1.25 MW & 1.50 MW each. The combined units generated by both the Wind Turbine Generators in the financial year were 47,18,492 units as compared to 56.61,920 units in previous year and reduction in units generated was due to low wind pattern in that area. The total billing for the same was Rs. 1.90 Crores as compared to Rs.2.20 Crores in the previous year.

Outlook As mentioned in the earlier paragraph with the government initiating investments in the power sector there seems to be a positive outlook for our products. We also hope to significantly expand our Bauxite operations in the coming year.

Risk and concern As always, volatility in the price of aluminium will affect the performance of the aluminium division. The mineral division will always be subject to commodity pricesfluctuation as well as local issues.

Internal control system and their adequacy The entire facility of both Wire Rods as well as Conductor manufacturing are IS0 certified. Your Company has a real time system of monitoring its targets as well as expenditure. Your Company has been awarded BBB+ rating by CRISIL. This has infused great confidence in the bankers of the Company.

Performance For the first in the history of your Company the total revenue has crossed Rs.350 Crores. This has been mainly possible due to sharp increased in sales of Conductors. We are optimistic thatthis trend will continue in future too.

Development in human resourceIindustrial relations The company places high importance on the development of its human resources. It imparts regular training to its employees to make them more focused to adapt to the constant change in the business environment. Industrial relation in both the unitswas satisfactory.


T AUDITORS' REPORT

To the Membersof HINDALUMINIUM INDUSTRIES LTD. We have audited the attached Balance Sheet of Hind Aluminium Industries Limited as at March 31,2011 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date both annexed thereto. These financial statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statements based on our audit.

1. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

2. As required by the Companies (Auditots Report) Order, 2003, issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956 and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we set out in the annexure a statement on the matters specified in paragraph 4 and 5 of the said Order to extent applicable.

3. Further to our comments in the annexure referred to above, we report that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit;

(ii) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of these books of accounts;

(iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of accounts;

(iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealtwith by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

(v) On the basis of written representations received from the directors as on March 31, 2011 and taken on record by the Board of Directors, we report that none of the directors of the Company is disqualified as on March 31,2011 from being appointed as a director in terms of Clause (g) of sub-section (1) of Section 274 of the CompaniesAct, 1956;

Subject to above in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required bv the Companies Act. 1956. in the manner so required and give a true and fairview in conformitywith h e accounting principles generallyaccepted in India:

la) In the caseof the Balance Sheet. of the state of affairs of the Com~anv as at 31st March. 201 1 : (bj In the caseof Profit and ~oss~ccount , of the Profit forthe yearendedbn that date; and (c) In the case of Cash Flow Statement, of the cash flows forthe year ended on that date.

FOR A.J. BALIYA 8 ASSOCIATES, Chartered Accountants

(CA M. P. MODY) Partner

Membership No.FCA42975 Place : Mumbai Dated: 30th May, 201 1


f . I ANNEXURE TO AUDITORS' REPORT

I [[Referred to in paragraph 2 of our report of even date]

(1) (a)The Company has maintained proper records to show full particulars including quantitative details and situation of fixed assets.

(b) As explained to us, the fixed assets have been physically verified by the management during the year in a phased periodical manner, which in our opinion is reasonable having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification.

(c) The fixed assets disposed off during the year, in our opinion, do not constitute substantial part of the fixed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company.

(2) In respect of its inventories: (a) As explained to us, inventories have been physically verified by the management at regular intervals during the year.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical v e r i f i t i of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

-

(c) The Company has maintained proper records of inventories. As explained to us, there was no material discrepancies noticed on physical verification of inventory as compared to the book records.

(3) The Company has neither granted nor taken any loans. secured or unsecured, from companies, firms or other parties listed in the register maintained Under Section 301 of the CompaniesAct, 1956.

(4) In our opinion and according to the information and explanations given to us, there exist adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and also for the saleof goods. During the course of our audit, we have not observed any major weaknesses in internal control.

(5) (a)ln our opinion and according to the information and explanations given to us, the contracts and arrangements that need to be entered in the register maintained under Section 301 of the Companies Act 1956. have been entered in the said register.

(b)ln our opinion and according to the information and explanations given to us, transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act 1956, and exceeding the value of Rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time where such market prices are available.

1 (6) The Company has not accepted any deposits from the public.

(7) In our opinion, the internal audit system of the Company is commensurate with its size and nature of its business.

(8) To the best of ow knowledge, the Central Government has prescribed maintenance of cost records under Section 209 (And) of the Companies Act. 1956. In our opinion, prime facie, the prescribed accounts and records have been maintained. However, we are not required to and have not made examination of the records.

(9) In respect of statutorydues: (a)According to the records of the Company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income-Tax, Sales-Tax, Wealth Tax, Customs Duty, Excise Duty, Cess, Service Tax and other material statutory dues have been regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2011 for a period of more than six monthsfrom the date of becoming payable. .


Place : Mumbai Dated: 30th May, 2011

(b)According to the information and explanations given to us, except income tax there are no dues in respect of Sales-Tax, Custom Duty. Wealth-Tax, Excise Duty, Service Tax or Cess outstanding on account of any dispute. The details of dues of Income Tax which have not been deposited on account of dispute are given below:

Particulars Assessment years to Forum where Which the matters dispute is Amount Pertains pending Rs.

Income Tax 2003-04 Commissioner (Appeals) 11 , I 3,3261- Act, 1961 2006-07 Commissioner (Appeals) 10,51,442/-

2007-08 Commissioner (Appeals) 4,41,875/-

(10) The Company has no accumulated losses at the end of the financial year and it has not incurred any cash losses in the current and immediately preceding financial year.

(11) According to the information and explanations given to us and the records examined by us, the Company has not defaulted in repayment of duesto any financial institution or bank.

(12) In our opinion and according and explanation given to us no loans and advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and othersecurities.

(13) The Company is not a chit fund ora nidhilmutual benefit fundlsociety.

(14) In our opinion and according to the information and explanationsgiven to us, the Company is not dealing in or trading in shares, securities, debentures and other investments.

(15) According to the information and explanations given to us, the Company has not given any guarantees for loan taken by others from banks and financial institutions.

(16) To the best of our knowledge and belief and according to the information and explanation given to us, in our opinion, t e n loans availed by the company were, primafacie, applied by the company during the year forthe purposes for which the loans were obtained, other than amount temporary deployed pending utilization of the funds for the intended use.

(17) In our opinion and according to the information and explanations given to us, and on an overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been usedfor long term investment.

(18) During the year Company has made preferential allotment of 13,00,000 equity shares of Rs.101- each fully paid up at the premium of Rs.331- per share to parties and a company. covered in the Register maintained under section 301 of the CompaniesAct.

(19) The Company has not issued any debentures during the year.

(20) The Company has not raised any money by public issue during the year.

(21) During the course of our examination of the books and records of the company, carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have been informedof such case by the Management.

FOR A. J. BALIYA & ASSOCIATES Chartered Accountants

(CA M.P. MODY) Partner.

Membership No.FCA 42975


BALANCE SHEET AS AT 31ST MARCH, 2011

SCHEDULE 2010-2011

(7) 2009-2010 (7) 1 I SOURCES OF FUNDS I

SHAREHOLDERS FUND Share Capital Reserves & Surplus

LOAN FUNDS Secured Loans Unsecured Loans

DEFERRED TAX LIABILITIES (NET) 43,633,592 44,830,855 TOTAL

1,078,326,163 635,608,586 APPLICATION OF FUNDS

FIXED ASSETS D Gross Block 368,320,812 347,962,039 Less: Depreciation 146,407,901 11 9,454,656 NET BLOCK 221,912,911 228,507,383

I INVESTMENTS E 3,474,268 3.474.268 1 I CURRENT ASSETS. LOANS &ADVANCES F I

Inventories Sundry Debtors Cash & Bank Balances Loans & Advances

I LESS: CURRENT LIABILITIES & PROVISIONS G I Liabilities Provisions

NET CURRENT ASSETS

TOTAL 1,078,326,163 635.608.586 1 NOTES ON ACCOUNTS N I

As per our report of even date FOR & ON BEHALF OF THE BOARD FOR A.J. BALIYA & ASSOCIATES

Chartered Accountants

LALIT KUMAR DAGA - CHAIRMAN

(CA. M.P. MODY) SHAILESH DAGA - MANAGING DIRECTOR Partner

Place : Mumbai

Dated: 30th May, 2011 CA. SUDHIR GOEL - DIRECTOR


F \

PROFIT 8 LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2011

SCHEDULE 2010-2011 2009-201 0 (7) (7)

INCOME

Sales Local: Conversion Charges Received Other Income

EXPENDITURE Materials Cost Manufacturing Expenses Employees' Remuneration Administrative Expenses Selling & Distribution Expenses Depreciation Interest

PROFIT BEFORE TAX Provision for Taxation Less:Prior period tax adjustment Current Tax Deferred Tax (Net) PROFIT AFTER TAX Balance brought forward PROFIT AVAILABLE FOR APPROPRIATION

APPROPRIATION Proposed Dividend Tax on Dividend General Reserve Balance Carried to Balance Sheet

NOTES ON ACCOUNTS

H TOTAL

TOTAL

As per our report of even date FOR 8 ON BEHALF OF THE BOARD FOR A.J. BALIYA 8 ASSOCIATES Chartered Accountants

LALIT KUMAR DAGA - CHAIRMAN

(CA. M.P. MODY) Partner Place : Murnbai Dated: 30th May, 2011

SHAILESH DAGA - MANAGING DIRECTOR

CA. SUDHIR GOEL - DIRECTOR


/ 7

SCHEDULES FORMING PART OF THE BALANCE SHEET AS AT 31ST MARCH, 2011

2010-2011 (7)

2009-201 0 It\

SCHEDULE : A SHARE CAPITAL Authorised: I 65.00.000 Equity Shares of Rs.101- each.

I issued. subscribed 8 Paid UD:

I 63,00,200 (Previous year 50,0b.200 ) Equity Shares of Rs.101- 63,002,000 I each fully paid up

SCHEDULE : B RESERVES 8 SURPLUS General Reserve 16,617,115 14,117,115 Add : Transferred from Profit 8 Loss Account 2,500,000 2,500.000

19,117,115 16,617,115 Share Premium 42.900.000 Capital Reserve Balance in Profit 8 Loss Account

SCHEDULE : C - - . . - - - - - . - SECURED LOANS a) Cash Credit /Buyers Credit I LC from 443,471,059 100,830,065 lClCl Bank Ltd- Mumbai (F~rst charge by way of hypothecation of entire stock of Raw materials. Work in process,Finished and Stroes B Book debts and second charge on Plant B Machinery,Factory Building, Flat at silvassa). b)HDFC Bank Ltd. (Motor Car) 1,592,222 (Secured by hypothecation of a Motor Car) c)FCNB (Cbl) USD Term Loan from State Bank of India, Vapi 35,012.973 (Secured by hypothecation of Lease hold land,Fixed Assets- and personal guarantees of Directors ) d)Terrn Loan from State Bank of Indla, Vapi 37,875,340 3351 0,742 (Secured by hypothecation of Lease hold land.Fixed Assets- guarantees of Directors ) e)Cash Credit /Buyers Credlt I LC from 55,416,451 98,237,316 Standard Chartered Bank Lid.- Mumbai (Secured by way of Pan Passu Charge on all present and future current assets of the Company) 5,38,355,072 267,591.096 UNSECURED LOANS Aditya Birla Finance Ltd. 77,721,749

SCHEDI!LE : D

GROSS BLOCK DEPRECIATION NET BLOCK AS at Adjustments AS at Upto For the Ad~ustmenk Uplo As at As at

1.4.2010 (Dedudons) 31.3.2011 31.3.2010 year (Deductions) 31.3.2011 31.3.2011 31.3.2010 Additions

LAND 8 SITE DEVELOPMENT FACTORY BUILDING RESIDENTIAL FLAT PLANT 8 MACHINERY CAPITAL WORK IN PROGRESS WIND TURBINE GENERATOR ELECTRICAL INSTALLATIONS FURNITURE 8 FIXTURES COMPUTERS

ANNUAL REPORT 201 0-2011

SCHEDULES FORMING PART OF THE BALANCE SHEET AS AT 31ST MARCH, 2011 --A --

2010-2011 2009-20 10 (7) (t)

SCHEDULE : E INVESTMENTS (AT COST - NON TRADE) Quoted :

121 Equity Shares of Rs.101- each fully 163,545 paid up of Grasim Industries Ltd.

69 Equity Shares of Rs. 101- each fully paid up of Ultratech Cement Ltd

163,545 340.597

- . . - - - - - . a)National Saving Certificate Vlth Issue 5,703 b)70 Equity Shares of Rs. loo/- each fully paid up of Dynavent Air System Pvt. Ltd. 371,000 c) 45.000 Equity Shares of Rs.101- each fully paid up of Associated Aluminium Industries Pvt. Ltd. 450,000 d) 500 Equity Shares of Rs.1001-each fully paid up of Dnyaneshwar Hydreed Seeds Co Pvt Ltd 684,020 e) 90 Equity Shares of Rs.1001-each fully paid up of Urvi Estate Pvt Ltd. 900.000 f) 90 Equity Shares of Rs.1001-each fully paid up of Babydoll Wizkid Communication Pvt Ltd. 900.000

3.310.723 3,474,268

SCHEDULE : F CURRENTASSETS,LOANS&ADVANCES INVENTORIES : (As per inventories taken, valued 8 certified by the Managing Director) Raw Materials 60,423,616 Semi-Finished Goods 9,335,432 Finished Goods 28,858,252 Stores 8 Spares 9,686,096

108,303,396

SUNDRY DEBTORS : (Unsecured, considered good) Outstanding for more than six months 13,514.117 Others 179,054,717 Due from Companies under the Same Management or in which director is a director or member : Associated Aluminium Industries Pvt. Ltd 45,612,665 (Outstanding less than six months)

238,181,493

- (a) 3,310,723

(A)+@) 3,4 74,268


( SCHEDULES FORMING PART OF THE BALANCE SHEET AS AT 3 lST MARCH, 2011 1 CASH & BANK BALANCES Cash on hand 238,401 372.928 Balances with Scheduled Banks in Current Account 26,743,611 19,531,924 Fixed Deposit Accounts (for Lcs,Bank guarantees b others) 64,274,144 20,535,927

91,256,156 , , LOANS 8 ADVANCES - (Unsecured, considered good) Advances recoverable in cash or in kind or for value to be received Balance with Revenue Authorities VAT receivable Deposits Taxes less Provisions

SCHEDULE : G CURRENT LIABILITIES 8 PROVISIONS CURRENT LIABILITIES : Sundry Creditors Unclaimed Dividend Other Liabilities

PROVISIONS : Proposed Dividend Tax on Dividend

ANNUAL REPORT 201 0-2011

c SCHEDULES FORMING PART OF THE PROFIT 8 LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2011

SCHEDULE : H

OTHER INCOME Rent (TDS.48,000-I- previous year Rs.51,600/-) Dividend Interest 8 UC Discounting (Net) (TDS. Nil previous year Rs.12,88,531/-) Miscellaneous Income

SCHEDULE : I

MATERIALS COST Raw Materials Consumption : Opening stock 60,423,616 Add: Purchases 2,879,803,179

2,940,226,795 Less: Closing Stock 106,843,675

Purchases for Trading Inventory Adjustments : Opening Stock: Semi-Finished Goods Finished Goods

Less : Closing Stock: Semi-Finished Goods Finished Goods

SCHEDULE - J I MANUFACTURING EXPENSES Stores 8 Spares Furnace Oil Transportation Charges Power 8 Fuel

Plant 8 Machinery Factory Bullding Electrials lnstallatlons Computers Others

Watch 8 Ward Expenrer


SCHEDULES FORMING PART OF THE PROFIT 8 LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2011

SCHEDULE : K EMPLOYEES' REMUNERATION Salary, Wages, Bonus 8 Allowances Gratuity Staff Welfare Expenses

SCHEDULE : L ADMINISTRATIVE EXPENSES Travelling 8 Conveyance Managing Director's Remuneration ' Printing 8 Stationery Telephone 8 Postage Electricity Charges Legal 8 Professional Fees Vehicle Maintenance Rent, Rates 8 Taxes Sitting Fees Membership 8 Subscription lnsurance Auditors' Remuneration Audit Fees In Other Capacity: Tax Audit Tender Fees 8 Vendor Registration Expenses Testing 8 Analysis Miscellaneous Expenses Donation

SCHEDULE : M SELLING 8 DISTRIBUTION EXPENSES

Brokeraae. Commission 8 Sales Promotion 8.569.087 2,892,915

SCHEDULE : N NOTES ON ACCOUNTS :

i) Basis of Accountlna : All financial items of Income and Ex~enditure hav~na a material bearina on the financial statement are recognised on accrual basis, except ~ndome by way ofdividend , and ~xpense by way of leave encashment which is accounted on cash basis.

ii) Sales exclude Sales Tax, Transportation, Insurance, discount, penaltyllate delivery charges and include sale of Scraps and Excise Duty but net of Sales Returns and Discount.ln the case of Mining division Sales include Royalty 8 Rewards.

iii) Fixed Assets: (i) All fixed assets are valued at cost less depreciation.The cost is inclusive of incidental expenses related to acquisition and put to use.Pre-operative expenses including trial run expenses (net of revenue) are capitalised. Interest on borrowings and financing costsduring the period of construction is added tocost offixed assets. (ii) lmpairement loss ,if any is recognised in the year in which impairementtakes place.

iv) De~reciation : Depreciation on Fixed Assets is provided on Straight Line Method at the rate and in the manner specified in Schedule XlVof the Companies Act, 1956.

v) Retirement Benefits : Gratuity liability isaccounted as pertheactuarial contribution demanded by Life lnsurance Corporation of India.

vi) Inventories:

\ Inventories are valued at lower of cost or net realisable value. /


i

vii) Deferred Tax Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonablecertaintythattheassets can be realised in future.

viii) T-y Transaction in foreign currency are recorded at the rate of exchange in force on the respective date of such transactions. Foreign currency transaction remain unsettled as at the end of the year are translated at the year end /contracted rates. Exchange difference on repayment/conversion/translation are adjusted to (i) Carrying cost offixed assets,ifforeign currency liability relates tofixed assets. (ii) the Profit8 Loss account in other cases.

2. National Saving Certificate VI issue deposited with Sales Tax Omce at Daman (U.T.) as security for registration is yet to be encashed even afler maturity.

3. Miscellaneous Expenses shown in Schedule - 'L' for Administrative Expenses indudes Miscellaneous balances written off of?.3.28,397/- (Previous Year-r 9,11,429/-) and Miscellaneous income shown in Schedule - 'H' for Other Income includes Miscellaneous balanceswritten back?.6.25.1691-(PreviousYear - ? 2,363421-).

4. There was no amount due to Small Scale undertaking exceeding 7.1 lac each outstanding for more than 30 days at the close of the year. This disclosure is based on the docurnenVinforrnation available to the company regarding their status of the small scale undertaking.

5. During the year Company has made preferential allotment of 13,00,000 equity shares of r 101- each fully paid up at the premium of r 331-per share to parties and a company.

6. Licensed Capacity, Installed Capacity and Actual Production : 2010-2011 2009-201 0

a) Licensed Capacity Wire Rod Plant N. A. N. A. Conductors N. A. N. A. Wind Turbine Generator N. A. N. A.

b) Installed Capacity Wire Rod Plant 25,000 M. T. 25,000 M. T. Conductors 12,000 M.T. 12,000 M.T Wind Turbine Generator 2,750 KW 2,750 KW

c) 'Actual Production : Wire Rod M.T. 17,471.711 11,269.301 Conductors M.T 7,649.666 1,699.547 Conversion of Others' Materials Wire Rod M.T 1,661.120 7.504.833 Conductors M.T. 904.205 4,758.729

27,686.702 25,232.410

d) Wind Turbine Generator KWH 4,718,491.69 5,661,919.83

'As certified by Managing Director.

7. ' Raw Material Consumed : 201 0-2011 2009-201 0

Items % of total M. T. (TI % of total M.T. (7) consumption consumption

Indigenous Alloy Rodmire 24.20 5,632.175 622,241,735 13.07 1,707.405 122,946,805 Aluminium Ingots 75.80 17,643.662 2,211,141,385 86.93 11.360.513 1,190,049,197

- - Total 100.00 23,275.837 2,833,383,120 100.00 13,067.918 1,312,996,002 - - ' As certified by Managing Director.

8. Stores 8 Spares Consumed (indigenous) : 2010-2011 2009-201 0

(7) (7)

Stores 8 Spares 44,741,965 14,917,878

24


9. Sales:

ltems 2010-2011 2009-201 0

Units Q'Y. (7 ) Units Qty. (7)

Alumin~um Wire Rods (net of return) Almn.Scrapllngots(Trading) Aluminium Wire Aluminium Conductor lron Ore (Trading) Bauxite (Trading) Power Others

M. T. 13,638.954 1.823 480.879 M. T. 6,677.741 675,005.034 M. T. 75,380 9.399 950

Kilometer 23,242.366 999.517.737 M. T. - M.T. 41,950.280 38475.181 KWH 4,718,491.69 19,023.124 M. T. 516.516 35,537.455

M. T. M. T. M. T.

Kilometer M. T. M. T. KWH M. T.

Total (Rs.)

10. Purchases for Tradinq 2010-2011 2009-201 0

Items Units Q'Y. If1 Units QTY. (7)

Aluminium Scrapllngot (Imported) M. T. 6,677.741 671,333,815 M. T. 3,404.700 291,174,016 Iron Ore M. T. M. T. 28,020.900 29,022,806 Bauxite M. T. 22,622.450 14,108.364 M. T. 35,588.760 33,900,034

Total (Rs.) 685,442,179 354.096.856

11. 'Openina Stock 2010-2011

Units Q'Y. ( f )

2009-2010 Units W . (7) ltems

Finished Goods : Aluminium Wire Rods lron Ore (Trading) Trading of Bauxite Stores 8 Consumables

' As certified by Managing Director

2010-2011 Units QW ( 7 )

2009-2010 Units QV. (7)

Finished Goods : Aluminium Wire Rods Bauxite (Trading) Stores 8 Consumables

' As certified by Managing Director

13. CIF Value of l m ~ o r t s : Silicon Metal Aluminium Scrapllngots


2010-2011 2009-201 0 if1 (7)

14. Earning Per Share (Equity Shares Par Value Rs.101- Each) Basic 8.03 5.47 Diluted 8 03 5.47 No. of Shares used for computing earning per share Basic 6.300.200 5,000,200 Diluted 6,300200 5,000,200

t i n Lacs -

Aluminium Product Power UnallocaMe Total

Segment Revenue

Gross Turnover 35,544.89 17,609 51 384 75 523.14 190.23 219 71 - 61.30 36,119.87 18,413.66

Less: intersegment Turnover

External Tumover - 61 30 36,119.87 18.413.66 --

Segment Rerun before

Interest and Taxes 933 07 375.83 11 1% 116.61) 6 821 33.60 0 '3 - 922 7:) 392.82

Add :Interest Income (Net) 247 .G 50.19 - 247 15 50.19

Less:lnterest Expenses 313.~3 25.04 - 17:O 55.40 - ;El 25 80.44

Net Profit before Tax 86640 400.98 i4 19! (16.61) (54.22) (21.80) L.73 - 808 72 362.57

Prlor Year Adjustments - 24.86 1.21 24 "6 1.21

Pmisim for Current Tax 8 FBT - 290 CO 125.00 290 CO 125.00

Deferred Tax - i;l 971 (37.00) (11 9:) (37.04)

Pmfit atel Tax 866.40 400.98 ! 1 (16.61) js4 22) (21.80) - 50s $; 273.40

Other Intonnations

Segment Assets 12 528.14 5,922.37 1% 5i! 457.54 8i'S i:, 1,023.94 7.95 (10.12) 13.431. 5? 7.393.73 --

Total Assets 13 400 52 7,393.73

Segment Liabilities 2.319 22 1,013 97 l i 77 15.98 7 26 (10.12) 2,398 2: 7,393.73

Total Liabilities i . i ~ n : i 1,018.93

Cap~tal Expenditure 2Cli 5Y 161.30 - 2C3 59 157.17

r l ? j 9 106.72 $ 6 5 1.61 ?5530 155.30 269 14 263.63

Non-cash expenses other than

depreciation

Segment assels and segment liabilities represent assets and liab~lities in respective segrnents.The assets and liabilities that cannot be allocaled lo a segmenl on reasonable basis have been d~sdosed as "Unallocabie".

16. Related Party Disclosures A) Associates:

Associated Aluminium Industries Pvt. Ltd. Nirav Commercials Ltd. Associated Non-Ferrous Metals Pvt. Ltd. Daga Rubber Works Pvl. Ltd. Dynavent Air-Systems Pvt. Ltd.

B) Key Managerial personnel : Shailesh Daga Managing Director

26

HIND ALUMINIUM INDUSTRIES LTD. I

I C) Transactions during the year with related parties I I

Sales I Rent Conversion Charaes

Deferred tax liabilities

i) Depreciation

I Deferred tax assets I

Associates Key Managerial Personnel As at 31 st March As at 31 st March

2011 2010 2011 2010 t. 7. t . 7.

Investments,Sundry Debtors 8 Loans 8 Advances Current Liabilities Income:

Interest Expenses: Purchases Rent lnterest Directors Remuneration

17. Deferred Tax Liabilities(net) Deferred tax Deferred tax

0110412010 IC\

I) Gratuity Provision AA Q 7 n QZZ

20 Previous year figures have been rearrangedlregrouped wherever necessary.

27

~ , " " " 1 " " "

Deferred tax liability (net) I I Persuant to accounting standard (AS) 22- Accounting for taxes on income, the impact of Deferred Tax Liability (Net) for the year ended 31.03.2011 of t 11,97,2631-has beencredited toProfit&LossAcwunt. I I 18 Certain balances in respect of Unsecured Loans, Sundry Debtors, Sundry Creditors, and Loans &Advances are subject to confirmation

by respective parties.

19 Contingent Liabilities: IncomeTax t 26,06,6431-. I


21. Balance sheet Abstract and Companies General Profile :

1.

II.

Registration Details : Company Identification No. State Code Balance Sheet Date

Capital Raised during the Year : Public lssue Rights lssue Bonus lssue

in f. Lacs) PLC043472

011 31.03.2011

in f. Lacs) 130 Nil Nil

Private Placement (Promoters) Nil

Ill. Position of Mobilisation and Deployment of Funds : (Amount in T . Lacs) Total Liabilities Total Assets

1 Sources of Funds : I Paid-up Capital Reserves & Surplus Secured Loans Unecured Loans Deferred Tax Liabilities (Net) Application of Funds : Net Fixed Assets Investments Net Current Assets

1 IV. Performance of the Company : Turnover (Gross Revenue) Total ~x~end i tu re Profit Before Tax

(Amount in f. Lacs) 36.127.62 I

I Profit After Tax 505.85 I Earning per Share (Rs.) Dividend Rate %

Generic Terms of Three Principal Item Code No. llTC Code)

Cor per I

8.03 15

monetary tel

I Product ~escridtion ~ lumh ium Wire Rod whether or not alloyed1 76011040.76012040 1 Bauxitellron ( >re

Signatories to Sche from 'A' to 'N'

As per our report of even date FOR 8 ON BEHALF OF THE BOARD FOR A.J. BALIYA & ASSOCIATES Chartered Accountants

CHAl

I (CA. M.P. MODY) Partner M.No. FCA42975

SHAILESH DAGA - MANAGING DIRECTOR

CA. SUDHIR GOEL - DIRECTOR

Place : h Dated: 3

L


C A S H F L O W S T A T E M E N T F O R T H E Y E A R E N D E D --

A) CASH FLOW FROM OPERATING ACTIVITIES Net Profit Before Tax and Extraordinaly Items 80.873.436 Adiustments For : Depreciation 26,953,245 interest & L.C. Discounting (Net) (2,522,864) ProfiU(ioss) on Sale of Fixed Assets Profit on Sale of Units Dividend Income

Operating Profit Before Working Capital Changes 105,299.828 Adiustments For : Trade and Other Receivables (314,206,740) 38,947,353 inventories (242,169.034) (67,994,651) Trade Payables 137.944.273 67,545,764

(4-501) Cash Generated From Operations (313,211,673) Direct Taxes Paid (8,984,699) (17,120,277) -

- (8,984,699) Cash Flow before Extraordinary Items (322,796,372) Prior Yeat's Tax Adjustments (2,485,677) Net Cash from Operating Activities A (324,662,049) B) CASH FLOW FROM INVESTING ACTIVITIES Purchases of Fixed Assets (20,358,773) Salel(Purchases) of Investment (including Dividend re-invested) Sale of Fixed Assets Dividend Received 3,989 Net Cash used in Investing Activities B C) CASH FLOW FROM FINANCING ACTIVITIES Proceeds of Long Term Borrowings 348.485.725 (44,305,595) interest & L.C. Discounting (Net) 2,522,864 5,018,905 Share Capital 13,000.000 Share Premium 42,900,000 Dividend Paid (9,450.300) (7,500,300) Tax on Dividend Paid (1,606,0791 (1,274,676) Net Cash Used in Flnanclng Activlties C 395,852,210 Net lncnase In Cash and Cash equivalents (A + B + C) 50,815,377 Cash and Cash equivalents as at 1st Aprll, 2010 40,440,779 (Openlng Balance) Cash and Cash equivalents as at 31st March, 2011 91,256,156 (Closlng Balance)

F O R 8 O N B E H A L F O F T H E B O A R D

LALIT KUMAR DAGA - C H A I R M A N Place : Murnbai SHAILESH DAGA - M A N A G I N G D I R E C T O R Dated: 30th May, 2011. CA. SUDHIR GOEL - D I R E C T O R

AUDITOR'S CERTIFICATE TO The Board of Directors HlndAlumlnlum Industries Ltd. 8-1, TulaIVlhar, Dr.A. 8. Road, Worll Naka, Mumbal-400018. We haveexamined the attached Cash Flow Statement of Hlnd Aluminium industries Ltd. forthe year ended 31st March, 2011.The Statement has been prepared by the Company in accordance with the requirements of Clause 32 of listing agreement with Stock Exchange 8 is based on and in agreement with the corresponding Proflt 8 Loss Account and Balance Sheet of the Company covered by our report of even date to the members ofthe Company.

FOR A.J. BALIYA & ASSOCIATES Chartered Accountants

P lace : Mumba i \~ated: 30th May, 2011.

29

, ~ .. . ,. ,

Documents

HIND ALUMINIUM INDUSTRIES LTD.€¦ · annual report 201 0-201 1 financial highlights 7 in crores particulars total income pbdlt 2010-11 361.28 11.93 2009-10 184.14 7.07 depreciat'on