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Directors Report of Century Extrusions Ltd.

Mar 31, 2015

Dear Members,

We are pleased to present the 27th Annual Report of the Company for the year 2014 - 2015.

Growth of the Indian economy

The world economy grew at a faster pace in 2014-15 as modest revival in the Euro zone and pick up in India aided in off-setting slowdowns in China and Japan. According to the Organization for Economic Cooperation and Development (OECD), the gross domestic output of the Group of 20 largest economies (G-20), which accounts for more than 90% of world economic output, expanded to 3.4% in 2014-15 as compared to 3.2% in 2013-14.

According to World Economic Surveys conducted by International Monetary Fund (IMF), acute risks have decreased, but risks have not disappeared. In the United States the recovery seems solidly grounded. Geopolitical risks have arisen, although they have not yet had global macroeconomic repercussions.

Potential growth in many advanced economies is still low, this is bad on its own, but it also makes fiscal adjustments more difficult. Global activity in many developed economies have strengthened and improved further in 2014-15 compared to 2013-14. Inflation in these economies, have however undershot projections, reflecting still-large output gaps and recent commodity price declines. Activity in many emerging market economies has disappointed in a less favourable external financial environment, although they continue to contribute more than two-thirds of global growth.

IMF says that, "Finally, as the effects of the financial crisis slowly diminish, another trend may come to dominate the scene, namely, increased income inequality. Though inequality has always been perceived to be a central issue, until recently it was not believed to have major implications for macroeconomic developments." Overall, the global growth was not upto expectation in 2014-15, but it is expected to rise moderately in 2015-16.

In its latest World Economic Outlook in April 14,2015 IMF states that "India's growth is expected to strengthen from 7.2 percent in 2014 to 7.5 percent in 2015. Growth will benefit from recent policy reforms, a consequent pick-up in investments and lower oil prices." India is set to become the world's fastest growing economy by 2016 ahead of China, says IMF. India's macro-economic prospects have strengthened and the country is best positioned among emerging market economies.

The Scenario of the Aluminum Extrusion Industry

Aluminium is truly versatile, most sustainable and industry appealing metal. Aluminium's unique properties, i.e., light- weightedness, high strength and resistance to corrosion give it an edge over steel in conventional and novel applications. The metal, which is only one-third the weight of steel, is non-magnetic, non-combustible and is non-toxic as well as impervious, the reason why it has extensive use in the food and packing industry. Other properties are high reflectivity and rapid heat dissipation. It is malleable and can be easily worked by the common manufacturing and shaping processes.

According to the Department of Mines, Government of India, India's aluminium production was lower by 16.5% at 1.72 MT in 2013-14 fiscal compared to the target of 2.06 MT. Industry sources state that the non-availability of bauxite on time for some of the units has crippled production and falling global prices of the metal also contributed to the non-achievement of target.

For the period between 2010 and 2016, India would be the only country in the world registering a compounded annual growth rate in the consumption of aluminium. India is endowed with rich Bauxite reserve which is approx. 6.76% of the world total and ranks 5th among the world bauxite reserve base.

According to Aluminium Association of India, India has produced nearly 8% of the total world production as compared to China's 44%, USA's 11% and Japan's 4%.

Companies in India are investing heavily in the aluminium sector. Hindalco Industries Ltd which is Asia's largest integrated primary producer of aluminium, has already made a capital expenditure of US$ 5.5 billion, since 2009. This is a sure sign of dynamism in this sector.

The rapid growth of the emerging nations led by China and India is expected to drive aluminium consumption in the future. Aluminium consumption in BRIC nations alone is expected to increase at a CAGR of 9% over the period 2007-2020. Demand in the fast-growing Chinese market is expected to reach 40.8 MT by 2020. The gradual recovery of the recession-hit world markets, especially the construction and transportation sectors, would facilitate further expansion of aluminium consumption.

FINANCIAL PERFORMANCE

The Company reported a sales turnover of Rs. 19438 lacs as against Rs.21300 lacs in the previous financial year recording a decrease of about 8.75%.The Power Transmission & Distribution Hardware Power T&D

(Rs.in lacs, except per share data)

Year ended March 31 2015 2014

Sales 19438 21300

Profit before Interest, Depreciation and impairment of Assets 1073 869

Interest 632 682

Profit before Depreciation and Impairment of Assets 441 187

Depreciation and Impairment of Assets 337 441

Net Profit 104 (254)

Provision of Taxation 40 (150)

Profit after Tax 144 (104)

Profit brought forward 1647 1751

Balance carried to Balance Sheet 1738 1647

Hardware) division registered a sale of Rs.378 lacs as against Rs. 201 lacs in the previous financial year. The balance of the turnover was contributed by Company's principal business i.e. by Aluminium Extrusions Division.

The Profit after Tax (PAT) for the financial year is Rs.144 lacs as against loss of Rs. 104 lacs reflecting moderate improvement in the financial performance.

Spiraling costs resulted in increased cost of production. Our Company's cost control initiatives helped in mitigating inflationary pressures and curbed overall cost increases.

DIVIDEND

Due to inadequacy of distributable profits during the fiscal under review, the Board of Directors regrets their inability to recommend a dividend payout.

PRODUCTION

The Aluminium Extrusions production for the year was 8938 MT as against 10833 MT in previous financial year.

COMPANY OVERVIEW AND GROWTH STRATEGY

Effective and timely customer service-oriented approach has been our strength for business development.

Success Drivers

Our Legacy: A rich experience of 24 years is an asset to the Company and furthermore our Company enjoys a number of first mover advantages comprising a comprehensive understanding of aluminium and aluminium extrusions market, reputed brand and a strong customer base.

Integration: We possess in-house facilities for -

* Melting and casting of billets, Homogenizing

* Extrusions manufacturing with three press lines

* Complete Die manufacturing,

* Manufacturing various 'value-added' products of extrusions for engineering applications, and

* Manufacturing Power Transmission & Distribution Hardware.

With 3 extrusion press lines, the Company has a capacity to produce 15000MT of Aluminium Extrusions, which as per the information available with the Company, is the 3rd largest facility in India as on date.

Die Library. The Company possesses an inventory of more than 4500 dies to manufacture over 3000 profiles. The Company maintains back-up dies for meeting the requirements of fast moving profiles.

Availability of raw- material: The Company accesses raw material (aluminium ingots and billets) from three renowned and proximate primary metal manufacturers- Vedanta Aluminium, Nalco and Hindalco, The Company is one of India's largest institutional aluminum ingot/billets consumers with corresponding purchase economies.

Quality assurance: The Company's manufacturing facility is accredited with the prestigious ISO-9001:2008 certification endorsing its strong quality systems. Our Company continues to emphasize on maintaining the utmost quality and safety standards in its factory. Our unit is also ISO 14001:2004 and OHSAS18001:2007 certified.

The Company supplies extrusions as per tolerances laid down by the Bureau of Indian Standards in accordance with BIS: 2673-1979, BIS:3965-1981 and BIS : 6477-1983, and with even tighter tolerances as per customer needs.

The sharp focus on Quality in all its initiatives has enabled our Company to launch some specific value-added services

Product applications: We manufacture extruded products for varied applications, viz. :

- Profiles for Architectural Applications such as Building Systems, Structural Glazing, Curtain Walls, Aluminium Rolling Shutters, Windows, Doors, Partitions, False Ceilings, Tower Bolts, Hand Rails, Door Handles, Hinges, Drapery Rods, Modular Furniture, etc.;

- Profiles for Aluminium Form work;

- Profiles for Road Transport;

- Profiles for Rail Coach Windows & Doors;

- Profiles for manufacture of Automobile Components;

- Profiles for Heat Transfer in Electronics & Electrical Gadgets;

- Profiles for Electrical applications such as Tubes and Flats for Bus Bars;

- Transmission Line Hardware such as P.G. Clamps, H-Connectors, Repair Sleeves, Lugs, Solar Panels etc.;

- Profiles for Engineering Applications such as FHP Motor Housings, Hydraulic Gear Pump Casings, Ferrules, A.C.Louvres, Machinery Parts, Elevators, Pneumatic Actuators, Pneumatic Cylinders, Valve Bodies, etc.

- Profiles for Defence Applications and many more.

The Company also has necessary set up to supply extruded and cold drawn round bars and hexagonal bars in straight lengths for various engineering applications. It also has a set up to supply extruded and cold drawn rods/wires in coil form to be used as armour rods, lamp pin stock, metallizing wire, rivet stock, welding filler wire, etc.

Customer profile: The Company possesses a portfolio of over 500 reputed customers. The Company has retained most of the customers over a period of 24 years.

Our Company is in a position to supply Extruded Aluminum Profiles in Alloys lxxx to 7xxx series. This is our major competency. Our business strategy is to book maximum part of our installed capacity for supply directly to end- users.

Company's Presence across several verticals

The company's product portfolio comprises of extrusions in soft, medium and high strength aluminium alloys. It manufactures aluminium profiles for architectural applications such as windows, doors, door handles, modular furniture etc. Its profiles are also used in Aluminium Form- work. Its products are used in rail coach windows & doors, electrical gadgets, transmission line hardware, hydraulic gear pumps, elevators, pneumatic cylinders and defence applications. Along with diversified end-user industries the company has strong client base. Its top 10 clients do not account for more than 25% and no single client accounts for more than 10% of its total revenues. The company's diverse customer base provides revenue stability and risk mitigation to a slowdown in any particular sector.

The Company enters into long-term contracts with its suppliers for its annual raw material requirements, and receives cumulative annual discounts from Vedanta Aluminium Ltd and. National Aluminium Company Ltd on lifting pre-specified quantities.

Rich Market Presence

Our company markets its entire product range through a nationwide network of regional marketing offices and sales units. Their reach and prompt action helps the Company to supply timely to local markets.

The Company possesses a portfolio of over 500 reputed customers. Nearly 80 to 85% of the revenues in 2014-15 was derived out of sales to age-old customers. Vast number of customers spread across the country is our Company's forte.

FUTURE OUTLOOK

Extrusions

Our Company has an installed capacity to produce 15000MT of extrusions per annum. As against this, our production for the year 2014-15 was only 8938 MT. We thus have a significant spare capacity to increase production and sales volume.

The economic environment in the coming decade in India is likely to be highly conducive to the growth of aluminium extrusion sector thanks to the reviving fortunes of building and construction sector, massive thrust towards use of solar energy, new applications in the transportation sector, etc. The future of the aluminium industry is intrinsically related to the issue of global warming and emission of greenhouse gases. Production of aluminium is an energy intensive process and as per the International Aluminium Institute (IAI), new stocks of aluminium accounts for 1 % of total greenhouse gas emissions by humans. Therefore, a key focus of the industry is the reduction in emissions by promoting aluminium recycling and expanding use of the metal in automobiles, trains and aircrafts. Estimates provided by the IAI depict that every kilogram of a heavier material that is replaced by aluminium, in a vehicle results in the reduction of 22 kilograms of carbon dioxide over the lifetime of the vehicle.

Innovative products and solutions are also central to the future demand for aluminium and growth of the industry. Fuel-cell powered cars are promising applications that can potentially become a high growth segment for the aluminium industry. This is because aluminium could be used to produce hydrogen fuel efficiently, which would help in the growth of fuel-cell powered cars and thereby arrest greenhouse emissions.

The segment-wise expected demand growth is given hereunder:

1. Power Sector -

In India, the electrical sector is the largest consumer of this metal. Bulk of the Aluminium usage is in overhead conductors and power cables used in transmission and distribution of electricity. Aluminium is used in switchboards, coil windings, capacitors and many other applications as well. The strongly growing LED lights market in India will drive the demand for heat sinks, along with several other applications in electrical and electronic sectors.

2. The vibrant Real Estate Sector in our country -

Investments in infrastructure and housing segments are likely to boost demand for aluminium extruded profiles. Customers worldwide are growing ecologically conscious and are keen on using environmentally sustainable products coupled with rising incomes and demand for enhanced quality. Aluminium extrusions are being used in commercial and residential buildings as well as in shopping centers, bridges and stadiums, and also in restoring and reconstructing historical buildings.

3. Rapidly growing Automobile Industry

- The Automobile sector in India has been the key force behind the demand for aluminium castings. India's emergence as a hub for the manufacture of automobiles and the global trend towards reducing the weight of automobiles, is acting as growth factor in this area.

4. Engineering Applications -

The engineering sector is one of the largest sectors in Indian industry. Aluminium is widely used in engineering applications, machinery and equipment in India.

5. The Sustained Agriculture Emphasis in our Country

- The usage of Aluminium is on a constant rise in the agricultural sector in this country as aluminium extruded agricultural pipes are popular due to their versatility and affordability.

6. Solar Energy Industry -

Aluminum extrusions is aiding in converting sunlight to green power with strong and light-weight frames and structures.Aluminium extrusions can be used to create a comprehensive framework for solar panels in a variety of situations, including frames, supports and connectors. The versatility of aluminium extrusions makes them the preferred choice over other metals in this sector.

7. Indian Defence Sector - Missiles, rockets and spacecraft, all use Aluminium. In this sector, aluminium also finds its usage in the construction of bridges, pre- fabricated houses, etc.

The Indian Aluminium extrusions industry is fast becoming vibrant with strong growth prospects and high demand. Conventional applications such as curtain walls, windows and doors as well as new applications such as formwork and scaffolding are the driving factors behind demand for aluminium extrusions in India.

Power Transmission & Distribution

India is the fourth largest in power generation in the world. Presently, India has more than 144,565MW in installed capacities and a 250,000 ckt. kms in power transmission lines. It is the sixth largest consumer of electricity in the world with rapid rise in consumption growth (avg. Growth rate of consumption around 14%). Thermal power plants constitute 66% of the installed capacity, hydroelectric about 19% and rest being a combination of wind, small hydro, biomass, electricity from waste and nuclear.

The largest utilization area of the aluminum in this field is the power transmission lines. The steel-core aluminum conductors have become the only material preferred for the high voltage power transmission lines. Aluminum is widely used in the underground cables, electrical cable ducts and motor coil windings as well. In electronics, the frames, chips, transistor heat sinks, data recording systems and the electronic equipment cases are inducted in the utilization areas of aluminum.

Wireless communication with wireless sensors is another promising alternative medium for transmission and distribution systems.

Power Transmission and Distribution Hardware Fittings are required for use on Overhead Transmission and Distribution Lines for connecting Insulators with Tower/ Pole Cross Arms and Insulators with conductors.

The Company has manufacturing facilities for casting of Aluminium Alloys, manufacturing of Extruded products in Aluminium & its Alloys, Wire Drawing, Helical Products, Fabrication of Ferrous & Non-Ferrous Components, Argon Welding, Electric Arc Welding, Machining, Bundle Spacer Assembly, Vibration Damper Assembly, Conductor Accessories, Clamp Connectors for Hardware Assembly, and manufacturing of Tools, Dies & Moulds.

Aluminium is also used in insulated and underground cables laid in large populated urban areas and in reserved forests (to avoid deforestation), Round Tubes are used for corona control rings, grading rings, mid-span compression joints, dead-end clamps and jointing sleeves, among others, signifying huge opportunities for extrusions in the power sector.

During the financial year 2014-15 the Company recorded a sales turnover of T & D Hardware amounting to Rs. 201 lacs (approx.) against Rs. 378 lacs in the previous financial year. The Company has successfully registered itself as a supplier of its products with a number of State Electricity Boards during the year and the process is continuing. The process will get further momentum as company achieves requirements of minimum years of supply track record and experience, with each passing year.

Challenges in the Indian extrusions market

There are a number of disadvantages in the Indian aluminum extrusions industry amongst which cost is a key issue. High operational costs, higher administrative expenses per unit of manufacturing and sale of finished products are major hindrances.

However, there are certain other issues which the aluminium industry in India needs to address such as availability and quality of billets, especially in hard alloys. There is a perception in some quarters that the quality of billets that are imported from Dubai, Qatar or from Europe is significantly higher than what is available locally. The development of extrusion business depends on the ability of an extruder to source the high quality billets in multiple alloys and the ability to get manufacturing waste recycled locally. From the environmental perspective, it is important to have recycling plants that produce high quality billets from both manufacture waste and end of life scrap. Many Indian extrusion manufacturers do not have their own finishing lines for powder coating or anodising and depend on external resources for this value addition. Yet another issue facing the Indian aluminium extrusion sector is the lack of scale with far too many small players scattered across the country and there are just a handful of large players who can invest in the latest technology. Hence, it is time for the stakeholders of the aluminium extrusion sector in India, viz. the extruders, primary aluminium producers, recyclers and the end users to converge and put this sector firmly on the high growth trajectory.

RISKS AND AREAS OF CONCERN

Our Company has formulated a well-defined risk- management strategy to detect areas of risks at an early hour and thereby mitigating them promptly and efficiently and this is in conformity with the new regulatory requirements. The Company perceives the following risks and concerns :

a) Market Competition : Operating in a dynamic market environment with fluctuating price risks combined with competition from new entrants in the field of extrusion manufacturing is posing as a hindrance to the growth prospects of our Company.

Our Company is deliberately venturing into innovative avenues of aluminium extrusion alloys in order to set its mark in the emerging markets where demand is higher and return is reasonable.

b) Government Policy risk: The Government policies in the present economic state of affairs are pro-industry and pro-growth which minimizes the inherent policy risk. But at times there are delays in clearances /approvals by Govt, agencies in obtaining lease renewals for land mortgaged with financial institutions and banks. This adversely affects the financial facilities obtained from the Banks. A little attention towards development and budgetary support from the government will help in a big way to the overall benefit of the economy, as well as our Company.

c) Competition from local manufacturers: The Aluminium extrusions industry in this country is highly fragmented. Local market is growing at a rapid pace as customers prefer local extruders for faster supplies which save both time and cost. Competition with local extruders has compelled us to sacrifice our margin to counteract the effect of higher Freight and Central Sales Tax. Our location in a relatively under-developed part of the country and the demand in this part are not good enough to account for our capacity. We have to sell a substantial quantity (over 65%) in other parts of India where our realization is lower compared to local supplies due to impact of the high freight and Central Sales Tax.

d) Retention of experienced manpower: Our Company believes without the efforts of its employees it is not possible to accomplish organizational goals. A training oriented employee skill-development approach coupled with innovation and motivation aids the Company to retain its valued human resources.

e) Price Fluctuation Risk: Price is the major driving factor, particularly the price of raw materials, and India is one of the most price sensitive markets in the world. Regular supervision of aluminium metal inventory in order to get maximum benefit or alternatively to curtail loss by monitoring inventory levels in each circumstance is a major challenge, and this is regularly scrutinized at the highest level in the Company.

f) Trade Union Activities: Our Company's Workmen's unions operate under the control of three different political parties. It is a challenge to meet the growing demands from the Unions, who at times put irrational burden on the management due to inter-union enmity in a bid to secure the support of larger number of workmen.

RISK MANAGEMENT

Risk Management is a key attribute of the Corporate Governance Principles and Code of Conduct of our Company and it aims to deal with the governance practices across the Company's actions. Risk Management practices and policies enable the Company to proactively handle uncertainty and changes in the internal and external environment to limit negative impacts.

Your Company has a system based approach to business risk management. Backed by a well-planned internal control system, the current risk management agenda consists of the following elements:

- Enterprise Risk Management Policy manual clearly lays down the strategy, policy and initiatives in relation to risk management.

- A strong and independent Internal Audit Function carries out risk focused audits enabling identification of areas where risk management processes may need to be improved. The Audit Committee of the Board reviews Internal Audit findings and provides strategic guidance on internal controls. The Audit Committee closely monitors the internal control environment within the Company and ensures that Internal Audit recommendations are effectively implemented.

- The Senior Management of the Company periodically reviews the risk management framework to effectively address the emerging challenges in a dynamic business environment.

The Policy is in compliance with amended Clause 49 of the Listing Agreement with Stock Exchanges which requires the Company to lay down procedure for risk assessment and for mitigating risks.

SEGMENT-WISE / PRODUCT-WISE PERFORMANCE

The Company has two business segments i.e. manufacturing of Aluminum Extruded Products and manufacturing of Power Transmission and Distribution Line Hardware. However, the Company does not fall under any of the criteria laid down under AS-17 and hence Segment Reporting is not applicable.

INTERNAL CONTROL SYSTEM

The Company has a strong and pervasive internal control system to ensure well-organized use of the Company's resources, their security against any unauthorized use, accuracy in financial reporting and due compliance of the Company's policies and procedures as well as the Statutes. Internal Audit reports are regularly placed before the Audit Committee and management analysis of the same is done to ensure checks and controls to align with the expected growth in operations. The Internal audit is carried out by an independent firm of Chartered Accountants on regular basis and remedial actions are taken when any shortcomings are identified.

The Audit Committee reviews the competence of the internal control system and provides its guidance for constant upgrading in the system.

INFORMATION TECHNOLOGY

The Company is continuously working on the Information Technology to get the maximum benefits for the Organization. The Company is successfully using a software system which is single, comprehensive, integrated solution called SAP Business One application. With the use of this integrated software there have been profound improvements in all spheres of its activities.

HUMAN RESOURCE AND INDUSTRIAL RELATIONS

Our Company believes that targets of the Company can only be reached with efforts from all its employees. Our Company recognizes that job satisfaction requires congenial work environment that promotes motivation among employees and therefore results in enhanced productivity, and innovation and also provide avenues for employee training and development to identify their potential and develop their careers in the Company.

The Company values contribution of its employees and follows the principle of informing all its employees about its future growth strategies.

CORPORATE SOCIAL RESPONSIBILITY (CSR):

At Century Extrusions Ltd., Corporate Social Responsibility has always been an integral part of our corporate philosophy and it was followed much before the passing of the Companies Act, 2013. Aluminium being a green metal is less likely to cause environmental pollution as the processes employed are not harmful to the environment and are energy-efficient.

Our Company values safety as a prime concern. The manufacturing process and plant of our Company adhere to various safety standards laid down by regulatory authorities. Our Company has received the prestigious OHSAS 18001:2007 certification for its relentless commitment towards maintenance of Occupational Health and Safety Management System Standards.

Though our Company does not fall under the purview of Section 135 of the Companies Act, 2013, still it continues to undertake various activities for the welfare of the society by making contributions to educational institutions and for medical treatment of under-privileged children and other charitable causes.

The Company has constituted a Corporate Social Responsibility Committee to look after its CSR initiatives in order to integrate interest, welfare and aspirations of the community with those of the company itself in an environment of partnership and mutual trust for inclusive development. The Chairman of the Committee is the Board Chairman and other Members include Mr. M.G. Todi, Mr. V. Jhunjhunwala, Mr. R.K. Sharma and Mr. A.K. Hajra.

DIRECTORS

Mr. M.G. Todi, Mr. V.K. Mushran, Mr. R.K. Sharma and Mr. A.K. Hajra being re-appointed as Independent Directors for a term of 5years at the Annual General Meeting (AGM) held on 5th September, 2014 are not liable to retire by rotation at this AGM.

Mr. V. Jhunjhunwala retires from directorship of the Company by rotation, and being eligible, offers himself for re-appointment.

The Companies Act, 2013 requires that a Woman Director should be a member of the Board of Directors. Ms. Suhita Mukhopadhyay has been appointed as an Additional Director of the Company w.e.f. 31st March, 2015 and her appointment is subject to the approval of Members of the Company at the ensuing AGM.

Brief resume of the Directors proposed to be appointed/re- appointed, nature of their expertise in specific functional area and the names of the Companies in which they hold directorship and membership/chairmanship of Board Committees, as stipulated under Clause 49 of the Listing Agreement with the Stock Exchanges, are provided as an annexure to the Notice convening the Annual General Meeting.

KEY MANAGERIAL PERSONNEL

Mr. M.P. Jhunjhunwala, Chairman & Managing Director of the Company who is also a Whole-Time Director (WTD) and Ms. Sumana Raychaudhuri, Company Secretary both have been appointed before commencement of the Companies Act, 2013 and are the Key Managerial Personnel.,

POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION

The Company being a listed Company, Policy on Directors' appointment is to follow the criteria as laid down under the Companies Act, 2013 and the Listing Agreement with Stock Exchanges and good corporate governance practices. Emphasis is given to persons from diverse fields or professions.

The guiding Policy on remuneration of Directors, Key Managerial Personnel and employees of the Company is that:

* Remuneration to Key Managerial Personnel, Senior Executives, Managers, Staff and Workmen is commensurate with the industry standards in which it is operating taking into account the performance leverage and factors so as to attract and retain talent.

* For Directors, it is based on the Shareholders' resolutions, provisions of the Companies Act, 2013 and Rules framed therein, circulars, guidelines issued by the Central Government and other authorities from time to time.

DIRECTORS' RESPONSIBILITY STATEMENT

The Board of Directors of the Company confirms:

i. that in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

ii. that the selected accounting policies were applied consistently and the directors 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 March 31, 2015 and of the profit or loss of the Company for the year ended on that date;

iii. that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other -irregularities;

iv. that the annual accounts have been prepared on a going concern basis.

BRICKWORK RATING

BRICKWORK has assigned its 'BWR BBB-' rating to the cash credit facility of Century Extrusions Ltd (CEL) and affirmed its rating on CEL's letter of credit, bank guarantee and term loan facilities at 'BWR A3'. The ratings upgrade has factored, inter alia, experience of the promoters in manufacturing aluminium and allied products, long standing corporate relationship with reputed customer base, consistent operating performance with cash profits and moderate gearing level. BWR has also positively taken note of the developments regarding repayment of a loan availed by West Bengal Industrial Development Corporation (WBIDC). The rating is, however, constrained by volatility associated with raw materials and finished goods prices and consequent inadequate debt protection ratios

AUDITORS / AUDITORS' REPORT

The auditors, M/s. ALPS & Co., Chartered Accountants, retire at the ensuing Annual General Meeting and have confirmed their eligibility and willingness to accept office, if re-appointed. There are no qualifications or adverse remarks in the Auditors' Report, which require any clarification/explanation.

COST AUDITORS

As per the directive of Central Government pursuant to the provisions of Section 148(3) of the Companies Act, 2013, your Directors have re-appointed M/s. N Radhakrishnan & Co., a firm of Cost Accountants, to conduct the audit for the year ended 31st March, 2015. E-Form CRA-2 has been filed to give effect to the appointment of cost auditors.

PUBLIC DEPOSITS

The Company did not invite or accept any deposit from the public under Section 73 of the Companies Act, 2013

PARTICULARS AS PER SECTION 134(3) OF THE COMPANIES ACT, 2013

The information relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo required under Section 134(3) of the Companies Act, 2013 read with Rule 8(3) of Companies (Accounts) Rules, 2014, is set out in a separate statement attached to this report and forms part of it. The Company had no employee of the category indicated under section 134(3) (q) of the Companies Act, 2013.

CORPORATE GOVERNANCE

The Company has been proactive in following the principles and practices of good Corporate Governance as an important step towards building investor confidence, improve investors' protection and maximize long-term shareholder value.

The Company has complied with the Corporate Governance Code prescribed by the Stock Exchanges and also stringently followed the Corporate Governance Guidelines as stipulated by SEBI. A detailed report on Corporate Governance along with Auditors' Certificate on compliance with the mandatory recommendations on Corporate Governance is annexed to this report.

SECRETARIAL AUDIT

A Secretarial Audit was carried out by the Secretarial Auditor Mr. K.C. Khowala, Practicing Company Secretary pursuant to provisions of Section 204 of the Companies Act, 2013. The Secretarial Auditor's Report is annexed herewith and forms part of the Director's Report.

ACKNOWLEDGEMENT

We express our sincere gratitude to our customers, vendors, investors and bankers for their continued support during the year. We place on record our sincere appreciation of the dedication and commitment of all employees in achieving excellence in all spheres of business activities.

We thank the Government of India, the Customs and Excise Departments, the Sales Tax Department, the Income Tax Department, the State Government and other Government agencies for their support, and look forward to their continued support in the future.

CAUTIONARY STATEMENT

Statements forming part of the Management Discussion and Analysis covered in this report may be forward- looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement. The Company takes no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent developments, information or events.

For and on behalf of the Board of Directors

M P Jhunjhunwala Chairman & Managing Director

Date: 2nd July, 2015 Place: Kolkata


Mar 31, 2014

Dear Members,

FINANCIAL PERFORMANCE

The Company realized a sales turnover of Rs.21300 lacs as against Rs. 19944 lacs in the previous financial year recording an increase of about 6.8%. The Power

Transmission & Distribution Hardware (Power T & D Hardware) division registered a sale of Rs.347 lacs as against Rs.239 lacs in the previous year. The balance of the turnover was contributed by Company''s principal business i.e. by Aluminium Extrusions Division.

The Loss after Tax (LAT) for the year is Rs.104 lacs as against Rs.2 lacs for the previous financial year 2012-13 reflecting decline in financial performance due to:

a) Significant increase in Electricity tariff and fuel cost.

b) Significant increase in Finance Cost due to hardening of interest rates in India.

c) Apparent slowdown in general economic activity.

Cost control being the basis of its operations and to raise its output of value-added products, the Company is always committed to alleviate costs in all spheres of its operations basically to retain higher returns. The Company continually invests in upgradation of Technology for cost reduction & improved performance.

(Rs.in lacs, except per share data)

Year ended March 31 2014 2013

Sales 21300 19944

Profit before Interest, Depreciation and impairment of Assets 869 1194

Interest 682 713

Profit before Depreciation and Impairment of Assets 187 421

Depreciation and Impairment of Assets 441 442

Net Profit (254) (21)

Provision of Taxation (150) (19)

Profit after Tax (104) (2)

Profit brought forward 1751 1753

Balance carried to Balance Sheet 1647 1751

DIVIDEND

Due to absence of distributable profits during the year under review the Board of Directors do not recommend a dividend payout.

PRODUCTION

The Aluminium Extrusions production for the year was 10833 MT as against 10086 MT in previous financial year showing a growth of 7.4 %.

The Power T & D Hardware achieved production of Rs.347 Lacs during the year as against Rs.239 Lacs during the previous year. The industry has a longer gestation period

of roughly 4 to 6 years primarily because the prospective customers, mainly the State Power Distribution Companies require prior supply experience before they allow fresh participants in their tenders. The Company has already completed five financial years of operation in the Power T & D Hardware business and expects this division to contribute higher turnover and profitability from 2014-15 onwards.

COMPANY OVERVIEW AND GROWTH STRATEGY

Customer-centric approach and customer focused service have been our continued endeavour for business development. The customer demand in the infrastructure area, under the wings of which one can put everything from the real estate to power plants, is healthy in the medium to long term business planning.

Success Drivers

Our Legacy: With an experience spanning a rich 23 years, our Company enjoys a number of first mover advantages comprising a comprehensive understanding of the aluminium and aluminium extrusions market, reputed brand and a strong customer base.

Integration: We possess in-house facilities for -

- Melting, casting and homogenization of billets;

- Extrusions manufacturing with three press lines;

- Die manufacturing,;

- Manufacturing various value added products of extrusions for engineering applications, and

- Manufacturing Power Transmission & Distribution Hardware

With 3 extrusion press lines, the Company has a capacity to produce 15000MT of Aluminium Extrusions, which as per the information available with the Company, is the 3rd largest facility in India as on date.

Die Library: The Company possesses an inventory of more than 5000 dies to manufacture over 3500 profiles. The Company maintains back-up dies for meeting the requirements of fast moving profiles.

Availability of raw material: The Company accesses raw material (aluminium ingots and billets) from three renowned and proximate primary metal manufacturers- Vedanta Aluminium, Nalco and Hindalco, The Company is one of India''s largest institutional aluminum ingot/billets consumers with corresponding purchase economies.

Quality assurance: The Company''s manufacturing facility is accredited with the prestigious ISO-9001:2008 certification endorsing its strong quality systems. Or Company continues to emphasize on maintaining the utmost quality and safety standards in its factory. Our Company is also ISO 14001:2004 and OHSAS 18001:2007 certified.

The Company supplies extrusions as per tolerances laid down by the Bureau of Indian Standards in accordance with BIS: 2673-1979, BIS:3965-1981 and BIS : 6477-1983, and with even tighter tolerances as per customer needs.

The sharp focus on Quality in all its initiatives has enabled our Company to launch some specific value-added services

Product applications: We manufacture extruded products for varied applications, viz. :

- Profiles for Architectural Applications such as Building Systems, Structural Glazing, Curtain Walls, Aluminium Rolling Shutters, Windows, Doors, Partitions, False Ceilings, Tower Bolts, Hand Rails, Door Handles, Hinges, Drapery Rods, Modular Furniture, etc.

- Profiles for Aluminium F orm Work

- Profiles for Road Transport Sections

- Profiles for Rail Coach Windows & Doors

- Profiles for manufacture of Automobile Components

- Profiles for Heat Transfer in Electronics & Electrical Gadgets

- Profiles for Electrical applications such as Tubes and Flats for Bus Bars, Transmission Line Hardware such as P.G. Clamps, H-Connectors, Repair Sleeves, Lugs, Solar Panels etc.

- Profiles for Engineering Applications such as Motor Housings, Gear Pump Casings, Ferrules, A.C.Louvres, Machinery Parts, Elevators, Pneumatic Actuators, Pneumatic Cylinders, Valve Bodies, etc.

- Profiles for various Defence Applications and many more.

The Company also has necessary set up to supply extruded and cold drawn round bars and hexagonal bars in straight lengths for various engineering applications. It also has a set up to supply extruded and cold drawn rods/wires in coil form to be used as armour rods, lamp pin stock, metallizing wire, rivet stock, welding filler wire (MIG & TIG), etc.

Customer profile: The Company possesses a portfolio of over 500 reputed customers. The Company has retained most of the customers over a period of 23 years.

Our Company is in a position to supply Extruded Aluminum Profiles in Alloys 1xxx to 7xxx series. This is our major strength. Our Business strategy is to book maximum part of our installed capacity for supply directly to end-users.

Company''s Presence across several verticals

The company''s product portfolio comprises of extrusions in soft, medium and high strength aluminium alloys. It manufactures aluminium profiles for architectural applications such as windows, doors, door handles, modular furniture etc. Its products are used in rail coach windows and doors, electrical gadgets, transmission line hardware, gear pumps, elevators, pneumatic cylinders and defense applications. Along with diversified end- user industries the company has strong client base. Its top 10 clients account for more than 25% and no single client accounts

for more than 10% of its total revenues. The company''s diverse customer base provides revenue stability and risk mitigation to a slowdown in any particular sector.

The Company enters into long-term contracts with its suppliers for its annual raw material requirements, and receives discounts from Vedanta Aluminium Ltd and. National Aluminium Company Ltd on lifting pre-specified quantities.

Rich Market Presence

Our company takes pride in establishing strong bonding with all its customers and vendors as we think they are our partners-in-progress. We relentlessly work towards building deep ties with our vendors to develop specialized products in order to cater to diverse and evolving needs of our clientele.

A network of branches and sales offices in close proximity to the customers enable us to ensure efficient, effective and timely service. The Company possesses a portfolio of over 500 reputed customers. The real potency of the Company lies in its large number of customers in different customer segments spread in different geographical locations in a developing economy like India.

INFORMATION TECHNOLOGY

The Company is continuously working on the Information Technology to get the maximum benefits for the Organization. The Company is successfully using a sofware system which is single, comprehensive, integrated solution called SAP Business One application. With the use of this integrated software there have been profound improvements in all spheres of its activities.

HUMAN RESOURCE AND INDUSTRIAL RELATIONS

Human Resource is the most valuable asset in this planet. Our Company believes in providing a congenial and healthy work environment and emphasizes on performance appraisal and on-the-job trainings to value and retain talented manpower.

Our Company appreciates that individual efforts combined with integrated teamwork facilitate a concern to reach its defined targets Effective human resource management systems and practices are developed and followed by the organization to create a proactive work culture to ingrain core values.

Our Company believes that employees are the backbone of the organization. The relations with employees have throughout the year remained cordial.

CORPORATE SOCIAL RESPONSIBILITY (CSR):

The fundamental corporate philosophy of our Company is the guiding force behind ensuring sound Corporate Social Responsibility (CSR). The Aluminum Sector is one of the industries that cause least environmental pollution. The Aluminum production methods do not harm the environment as they are energy efficient.

Safety is an integral art of your Company''s operations and is viewed with prime concern. The manufacturing process and plant of our Company adhere to various safety standards laid down by regulatory authorities. Our Company has received the prestigious OHSAS 18001:2007 certification for its relentless commitment towards maintenance of Occupational Health and Safety Management System Standards.

Our Company continues to undertake various activities for the welfare of the society by making contributions to educational institutions and for medical treatment of under- privileged children and other charitable causes.

The Company has over the years pursuing as part of its corporate philosophy, an unwritten CSR policy voluntarily which goes beyond mere cosmetic philanthropic gestures and integrates interest, welfare and aspirations of the community with those of the company itself in an environment of partnership and mutual trust for inclusive development.

Even though our Company has always been conscious about its carbon footprint on the environment, CSR activities in its true sense haven''t been initiated, but being a responsible corporate citizen our Company however is greatly committed to conservation of environment and ensures to conduct all its industrial operations with minimal impact on the environment.

DIRECTORS

Mr. V. Jhunjhunwala retire from directorship of the Company by rotation, and being eligible, offer themselves for re- appointment.

In strict compliance with Section 149 of the Companies Act, 2013 Mr. V.K. Mushran, Mr. M.G. Todi, Mr. R.K. Sharma and Mr. A.K. Hajra retire from directorship at the upcoming Annual General Meeting and being eligible offer themselves for appointment. They will be designated as "Independent director and their tenure of directorship as an Independent Director, if approved by the Members of the Company will be for a term of 5 years commencing on and from the date of the Annual General Meeting in which they are elected by Members of the Company.

Brief resume of the Directors proposed to be appointed/re- appointed, nature of their expertise in specific functional area and the names of the Companies in which they hold directorship and membership/chairmanship of Board Committees, as stipulated under clause 49 of the listing agreement with the Stock Exchanges, are provided as an annexure to the Notice convening the Annual General Meeting.

BRICKWORK RATING

BRICKWORK has assigned its ''BWR BB /Stable'' rating to the cash credit facility of Century Extrusions Ltd (CEL) and affirmed its rating on CEL''s letter of credit, bank guarantee and term loan facilities at ''BWR BB /Stable/A4 ''. The ratings continue to reflect CEL''s healthy financial risk profile, marked by a low gearing and healthy interest coverage ratio, diversified end-user profile, and established relationships with its suppliers. These rating strengths are partially offset by CEL''s large working capital requirements, and susceptibility to volatility in raw material prices.

DIRECTORS'' RESPONSIBILITY STATEMENT

The Board of Directors of the Company confirms:

i. that in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

ii. that the selected accounting policies were applied consistently and the directors 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 March 31, 2014 and of the profit or loss of the Company for the year ended on that date;

iii. that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv. that the annual accounts have been prepared on a going concern basis.

AUDITORS / AUDITORS'' REPORT

The auditors, M/s. ALPS & Co., Chartered Accountants, retire at the ensuing Annual General Meeting and have confirmed their eligibility and willingness to accept office, if re-appointed. There are no qualifications or adverse remarks in the Auditors'' Report, which require any clarification/ explanation.

COST AUDITORS

As per the directive of Central Government pursuant to the provisions of Section 233B of the Companies Act, 1956, our Directors have re-appointed M/s. N Radhakrishnan & Co. a firm of Cost Accountants, to conduct the cost audit for the year ended 31st March, 2014.

PUBLIC DEPOSITS

The Company did not invite or accept any deposit from the public under Section 58A of the Companies Act, 1956.

PARTICULARS AS PER SECTION 217 OF THE COMPANIES ACT, 1956

The information relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo required under section 217 (1) (e) of the Companies Act,1956, is set out in a separate statement attached to this report and forms part off it. The Company had no employee of the category indicated under Section 217(2A) of the Companies Act, 1956.

CORPORATE GOVERNANCE

The Company has been proactive in following the principles and practices of good Corporate Governance as an important step towards building investor confidence, improve investors'' protection and maximize long-term shareholder value.

The Company has complied with the Corporate Governance code prescribed by the Stock Exchanges. A detailed report on corporate Governance along with Auditors'' Certificate

on compliance with the mandatory recommendations on Corporate Governance is annexed to this report. ACKNOWLEDGEMENT

We thank our customers, vendors, investors and bankers for their continued support during the year. We place on record our appreciation of the contribution made by employees at all levels.

We thank the Government of India, the Customs and Excise Departments, the Sales Tax Department, the Income Tax Department, the State Government and other Government agencies for their support, and look forward to their continued support in the future.

For and on behalf of the Board of Directors

Date: 27th May 2014 M P Jhunjhunwala Place: Kolkata Chairman & Managing Director


Mar 31, 2013

Dear Members,

The are pleased to present the 25tt Annual Report of the Company for the year 2012 - 2013.

Growth of the Indian economy

The world economy is yet to recover from the crisis of 2008- 2009 as the global growth rate dropped to 3% in 2012. This slowdown is expected to continue. Unlike in 2010 and 2011, emerging markets did not pick up the slack in 2012. The sluggish pace of the world economy can well be attributed to the uncertainties in different parts of the globe, i.e., post- election ''fiscal debate'' question in the United States to the Chinese leadership transition and reforms in the Euro-Asia. Majority of the European nations are trapped under vicious circles of debt, low growth and massive unemployment.

Indian economy is growing steadily despite the economic crisis that has engulfed the major economies of the world. Grand Thornton Global Dynamism Index has denoted India as the fifth best country in the world for dynamic growing businesses. A drop in private investment over rising policy uncertainty exacerbated supply blockage in India, which consequently led to headline inflation that was high compared to most Asian economies in 2012.

According to CR1SIL, India''s economic growth is expected to accelerate to 6.7 % in 2013-14 from the projected rate of 5 % in the current financial year on a revival of consumption. Factors like pick-up in agriculture, predictions about normal monsoon, increased welfare expenditure, moderation in inflation, lower interest rates and higher government spending all of which in a combined way contributing to the private consumption demand. Moreover these factors have benefited sectors such as consumer durables, hotels & restaurants and financial services.

The growth in GDP during 2012-13 is estimated at 5% as compared to a growth rate of 6.2 % in 2011-12 and is the lowest in a decade on account of poor performance of manufacturing, agriculture and services sector..

The Scenario of the Aluminum Extrusion Industry

Our country is signified as the fifth largest producer of aluminium in the world. Aluminium is the biggest non- ferrous industry in the world economy and one of the leading industries in the Indian economy. Aluminium has uses in sectors like automotive, transportation, packaging, building & construction, marine, consumer durables, solar, industrial equipments, defence security equipments and electricity and among all these in India, the power sector is the largest consumer of the metal closely followed by building & construction and automotive sectors.

The building & construction and automotive sectors have always been major patrons of aluminium extruded products.

Aluminum being lightweight, durable and anti-corrosive is used in large quantities for cladding the roofs and facades of the buildings and for manufacturing the doors and windows, stairs, roof frames, scaffolding, form work and green houses. Furthermore, utilization of aluminum is increasing in the highway traffic and direction signalization systems as well as expressway parapet walls and bridges. In the marine craft, especially in the boats, the center of gravity of the aluminum superstructures being less, the balance of the hull is improved, allowing for a larger functional volume. The sail masts of the smaller boats and yachts are made of aluminium. 70% of the weight of an airplane is aluminum. Aluminum has provided the largest contribution to the development of the airplanes, more so to the aviation sector, due to its lightness along with its durability.

Indian aluminium extrusion industry expanded at a swift pace during the last two decades. Infrastructural changes in the country like construction of shopping malls and high- rise buildings, whether residential or commercial have led to a surge in demand of aluminium extruded products. Teaming up with these sectors, are defence and railway requirements. Its utility and versatility coupled with affordable production cost marks it as one of the most sought after commodity in this country. However, extrusions industry like other industries could not combat the general recession and hence the demand for extrusions slightly subdued.

FINANCIALPERFORMANCE

The Company achieved a sales turnover of Rs. 19944 lakhs as against Rs. 21192 lakhs in the previous financial year recording a fall of about 6 %. The Power Transmission & Distribution Hardware (Power T & D Hardware) division registered a sale of Rs.239 lakhs as against Rs.459 lakhs in the previous financial year. The balance of the turnover was contributed by Company''s principal business i.e. by Aluminium Extrusions Division.

The Losses for the year is Rs. 2 lakhs as against Profit after Tax of Rs. 320 lakhs in the previous financial year reflecting decline in financial performance. The decline in performance during the year is mainly due to the following factors:

(1) Due to continued slowdown in general economic activity, the Company has not been able to increase prices in spite of increase in manufacturing cost for following reasons:

a) Payment on account of Entry Tax pursuant to the West Bengal Tax on Entry of Goods Into Local Areas Act, 2012;

b) Significant increase in Electricity tariff and fuel cost;

(2) Production loss on account of replacement of extrusions handling system.

Cost control being the basis of its operations and to raise its output of value-added products, the Company is always committed to mitigate costs in all spheres of its operations in order to maintain higher returns. The Company continually invests in upgradation of Technology for cost reduction & improved performance. The Company has taken steps to counter the above factors as have been mentioned elsewhere and expects to achieve higher Sales Turnover as well as profitability in the next financial year.

(Rs. in lacs, except per share data)

Year ended March 31 2013 2013

Revenue from Operations 19944 21192

Profit before Interest & Depreciation 1194 1433

Interest & Finance Charges 713 749

Profit before Depreciation 421 684

Depreciation 442 413

Net Profit/(Loss) (21) 271

Tax Expenses (19) (49)

Profit/(Loss) after Tax (2) 320

Profit brought forward 1753 1433

Balance carried to Balance Sheet 1751 1753



DIVIDEND

Due to losses in the year under review, the Board regrets their inability to recommend any dividend for the year 2012-13.

COMPANY OVERVIEW AND GROWTH STRATEGY

Improved service, prompt response and wider reach to dealers, distributors and the satisfaction of customers have been our continued endeavour for business development.

Success Drivers

Our Legacy: With an experience spanning a rich 22 years, our Company enjoys a number of first mover advantages comprising a comprehensive understanding of the aluminium and aluminium extrusions market, reputed brand and a strong customer base.

Integration: We possess in-house facilities for -

- Melting, casting and homogenization of billets,

- Extrusions manufacturing with three press lines Die manufacturing,

- Manufacturing various value added products of extrusions for engineering applications, and

- Manufacturing Power Transmission & Distribution Hardware

With 3 extrusion press lines, the Company has a capacity to produce 15000MT of Aluminium Extrusions, which as per the information available with the Company, is the 3rd largest facility in India as on date.

Die Library: The Company possesses an inventory of more

than 5000 dies to manufacture over 3500 profiles. The Company maintains back-up dies for meeting the requirements of fast moving profiles.

Availability of raw material: The Company accesses raw material (aluminium ingots and billets) from three renowned and proximate primary metal manufacturers- Vedanta Aluminium, Nalco and Hindalco, The Company is one of India''s largest institutional aluminum ingots/billets consumers with corresponding purchase economies.

Quality assurance: The Company''s manufacturing facility is accredited with the prestigious ISO-9001:2008 certification endorsing its strong quality systems. Our Company continues to emphasize on maintaining the utmost quality and safety standards in its factory. Our Company is also ISO 14001:2004 and OHSAS 18001:2007 certified.

The Company supplies extrusions as per tolerances laid down by the Bureau of Indian Standards in accordance with BIS: 2673-1979, BIS:3965-1981 and BIS: 6477-1983, and with even stringent tolerances as per customer needs based on mutual agreement.

The sharp focus on Quality in all its initiatives has enabled our Company to launch some specific value-added services

Product applications: We manufacture extruded products for varied applications, viz.:

- Profiles for Architectural Applications such as Building Systems, Structural Glazing, Curtain Walls, Aluminium Rolling Shutters, Windows, Doors, Partitions, False Ceilings, Tower Bolts, Hand Rails, Door Handles, Hinges, Drapery Rods, Modular Furniture, etc.

- Profiles for Aluminium Form work

- Profiles for Road Transport Sections

- Profiles for Rail Coach Windows & Doors

Profiles for manufacture of Automobile Components

Profiles for Heat Transfer in Electronics & Electrical Gadgets

- Profiles for Electrical applications such as Tubes and Flats for Bus Bars, Transmission Line Hardware such as P.O. Clamps, H-Connectors, Repair Sleeves, Lugs, Solar Panels etc.

- Profiles for Engineering Applications such as Motor Housings, Gear Pump Casings, Ferrules, A.C.Louvres, Machinery Parts, Elevators, Pneumatic Actuators, Pneumatic Cylinders, Valve Bodies, etc.

- Profiles for various Defence Applications and many more.

The Company also has necessary set up to supply extruded & cold drawn round bars and hexagonal bars in straight lengths for various engineering applications. It also has a set up to supply extruded & cold drawn rods/wires in coil form to be used as armour rods, lamp pin stock, metallizing wire, rivet stock, welding filler wire (MIG & TIG), etc.

Customer profile: The Company possesses a portfolio of over 500 reputed customers. The Company has retained most of the customers over a period of 22 years.

Our Company is in a position to supply Extruded Profiles in Aluminum Alloys ranging from lxxx to 7xxx series. This is our major competency. Our Business strategy is to book maximum part of our installed capacity for supply directly to end-users.

Company''s Presence across several verticals

The company''s product portfolio comprises of extrusions in soft, medium and high strength aluminium alloys. It manufactures aluminium profiles for architectural applications such as windows, doors, doorhandles, modular furniture etc. Its products are used in rail coach windows and doors, electrical gadgets, transmission line hardware, gear pumps, elevators, pneumatic cylinders and defence applications. Along with diversified end- user industries the company has strong client base. Its top 10 clients do not account for more than 25% and no single client accounts for more than 10% of its total revenues. The company''s diverse customer base provides revenue stability and risk mitigation to a slowdown in any particular sector.

The Company enters into long-term contracts with its suppliers for its annual raw material requirements, and receives cumulative annual discounts from Vedanta Aluminium Ltd and National Aluminium Company Ltd on lifting pre-specified quantities.

Rich Market Presence

Robust presence across the value chain and synergies in operations has given our Company a leading position in the domestic value-added products market.

A network of regional marketing offices and sales offices in close proximity to the customers enable us to ensure efficient, effective and timely service. The Company possesses a portfolio of over 550 reputed customers. Nearly 97 % of the revenues in 2012-13 were derived out of sales to long- standing customers. The real strength of the Company lies in its large number of customers in different segments spread in different geographical locations in a developing economy like India.

We at Century Extrusions Limited believe in growth-oriented business approach through sustainable use of human and natural resources which provide us the strength to reach new heights in the forthcoming years. Our forte is constant progress by identifying the areas of expansion.

FUTURE OUTLOOK

Extrusions

The Company has an installed capacity to produce 15000MT of extrusions per annum. As against this, our production for the year 2012-13 was 10086 MT. We thus have a significant spare capacity to increase production and sales volume.

The last decade witnessed the sudden upsurge in the demand for aluminium extrusions. The per capita consumption of aluminium in India remains abysmally low at 1.2 kg compared to 15-18 kg in the European countries and nearly 10 kg in China. Of late, the slower growth rate in China and the debt crisis in the euro zone have cast their shadow on the market. India is also stalled with many issues severely affecting her economic growth. Amidst all these, the physical demand for aluminium extruded products remains strong. The low per capita consumption in the country coupled with high quality Bauxite reserves, promises good future for the aluminium industry.

The segment-wise expected demand growth is given hereunder:

1. Power Sector - Power is the largest consumer of aluminium (about 48% of total).India has been facing very anomalous situation wherein investment in generation of power and execution of power plants has resulted in substantial growth in power generation. But attention towards evacuation of power plants through transmission and distribution system is not too adequate. Aluminium finds itself in the prime position in this sector and therefore deserves special attention in terms of incentives and benefits. Deemed export in this sector will be a boom to cable and conductor industry.

2. The vibrant Real Estate Sector in our country -

Construction sector is the major consumer of extrusions. Recent emphasis on ''Green'' or ''eco-friendly'' building applications will keep aluminium in the forefront of this emerging market. Commercial and residential building exteriors and solar panels make this metal highly popular. But, the high initial cost of aluminium has stood in the way of widely replacing the conventionally used materials like wood, steel, plastic and brick in building & construction applications.

The demand for aluminium composite panels cladding is increasing in urban areas primarily because it is less time consuming and highly appealing. It is used for front cladding as well as interior walls, partitions, false ceilings, etc. With the real estate sector and the national economy going through turbulent times, the momentum of growth in this sector has slowed down a bit.

The strength, low density, anti-corrosive and design flexibility of aluminum extrusion alloys make aluminium ideal for building & construction ranging from a louvre blade in an air-conditioning system to a structural support in a roofing system. At one third the weight of steel and extensive design options, Aluminium is the ideal solution for the building & construction industry

3. Rapidly growing Automobile Industry - Use of aluminium extruded products in the automobile sector is still at a nascent stage primarily because the rise in energy costs and the need for emission reduction world over have made aluminium more attractive to automobile industry than steel. Aluminium is finding extensive use in light-weight vehicles without compromising on quality and performance as mankind is becoming more and more concerned about fuel-efficiency with stricter environmental pollution norms to reduce greenhouse gas emissions.

4. EngineeringApplications-AluminiumExtrusionsisvery much appreciated in various mechanical applications, particularly for components of moving machines, such as engines and robotic devices.

5. The Sustained Agriculture Emphasis in our Country -

Aluminium is also of relevance in the agriculture sector as aluminium extruded pipes are used in farming. However, owing to increase in the rates of aluminium

pipes, the farmers are now opting for cheaper P VC pipes even though their shelf life is less. Exemption of aluminium irrigation pipes from excise duty will benefit this sector.

6. Solar Energy Industry is a promising sector, solar energy being a clean, renewable source of energy abundantly available during daytime. There are undoubtedly excellent opportunities for the use of aluminium extrusions in solar power applications. Solar power sector utilizes large quantities of aluminium extrusions for framing and mounting solar panels on commercial and residential building roof-tops and for ground and pole-mount applications. Improved extruded framing and mounting systems indicates more inroads into the sector.

7. Indian Defence Sector: Aluminium extrusions are consumed in a wide range of applications in this sector, comprising tail-end fuse connectors for detonator shells and grenades, frame-work for tents and as roll-over carpets for tanks to navigate difficult terrains. Our Company supplies rods/bars and tubes in medium and high-strength alloys to the defence sector. Our Company also supplied about 100 MT of rods in high- strength alloys to be used as forging stock and for making precision machined components to M/s. Brahmos Aerospace Limited for their missile indigenisation mission.

Given the significant supply deficits, high growth potential and conducive government policies, a large opportunity exists for the Aluminum extrusions suppliers including our Company.

The above projection of robust demand growth is however tempered by the fact that the extrusions industry is fragmented, and significant competition exists among players in the industry. As a result, the bargaining power of industry players is moderate.

Power Transmission & Distribution

Out of the entire aluminum utilization in the world, 10% is used in the electrical & electronics sector in Europe, 9% in the USA and 7% in Japan. The largest utilization area of the aluminum in this field is the power transmission lines. The steel-core aluminum conductors have become the only material preferred for the high voltage power transmission lines. Aluminum is widely used in the underground cables, electrical cable ducts and motor coil windings as well. In electronics, the frames, chips, transistor heat sinks, data recording systems and the electronic equipment cases are included in the utilization areas of aluminum.

Power Transmission and Distribution Hardware Fittings are required for use on Overhead Transmission & Distribution Lines for connecting Insulators with Tower/Pole Cross Arms and Insulators with conductors.

The Company has manufacturing facilities for casting of Aluminium Alloys, manufacturing of Extruded products in Aluminium & its Alloys, Wire Drawing, Helical Products, Fabrication of Ferrous & Non-Ferrous Components, Argon Welding, Electric Arc Welding, Machining, Bundle Spacer Assembly, Vibration Damper Assembly, Conductor Accessories, Clamp Connectors for Hardware Assembly, and manufacturing of Tools, Dies & Moulds.

Aluminium is also used in insulated and underground cables laid in large populated urban areas and in reserved forests (to avoid deforestation), Round Tubes are used for corona control rings, grading rings, mid-span compression joints, dead-end clamps and jointing sleeves, among others, signifying huge opportunities for extrusions in the power sector.

During the financial year 2012-13 the Company recorded a sales turnover of T & D Hardware amounting to Rs.239 lakhs (approx. ) against Rs. 459 lakhs in the previous financial year. The Company has successfully registered itself as a supplier of its products with a number of State Electricity Boards during the year and the process is continuing. The process will get further momentum as company achieves requirements of minimum years of supply track record and experience, with each passing year. The Company has received substantial orders from the said State Electricity Boards and State based utilities and Erection Contractors.

As the Company gets itself registered as a supplier with more electricity utility companies, the order book will become better and stronger, and the growth in the coming years is likely to be in multiples of the previous year performance.

Challenges in the Indian extrusions market

In spite of economic fluctuations the world over, demand for aluminium extruded products is on the rise. Though building & construction sector proves to be the most valued consumer of aluminium, an insight into the future prospects of aluminium extrusion industry will highlight its growing demand in the solar industry and automobile industry. In India, the aluminium industry is highly fragmented owing to presence of nearly 75 manufacturers. Volatility in the raw material prices and foreign exchange fluctuations has been affecting the growth of aluminium industry to a large extent. Construction sector with a massive population and vast open spaces / areas is an ideal choice for solar energy production. Aluminium is the most preferred metal in the manufacture of solar panels. Indian aluminium extrusion manufacturers need to stress on innovation and new design options and move further down the value chain through sharing of knowledge based information with consumers. This is mainly because in U.S.A. and European countries, extrusion manufacturers went further down the value chain and supplied fabricated products to customers. This growing trend is slowly gaining momentum in India also as new players are competing with the key ones.

RISKS AND AREAS OFCONCERN

Business ethics and core values are two locomotives that drive our Company to detect areas of risks at an early stage and thereby extenuating them promptly and efficiently. The potential of our Company to evaluate and cope with business risks is imperative in realization of the desired goals. The Company perceives the following risks and concerns.

a) Market Competition: The Company is operating in a fiercely competitive market as market dynamics are forever changing with entry of new players in the field of extrusion manufacturing. New players are targeting resellers. Consequently, old players who were earlier in reseller markets are turning towards end users creating competition for the Company.

In India, wider market accessibility and a liberal economy has paved the pathway for easy availability of world- class imported extrusions in the local market. Need of the hour is continual technological upgradation for Indian extrusion manufacturers to preclude the headwind of emerging market economies from sweeping it of its firm foothold in near future.

Our Company is consciously attempting to foray into new vistas of aluminium extrusion alloys in order to put its footprint in the growing markets where demand is higher and return is reasonable.

b) Government Policy risk: The Government policies in the present economic state of affairs are pro-industry and pro-growth which minimizes the inherent policy risk. But at times there are delays in clearances / approvals by Govt, agencies in obtaining lease renewals for land mortgaged with financial institutions and banks.

This adversely affects the financial facilities obtained from the Banks. A little attention towards development and budgetary support from the government will help in a big way to the overall benefit of the economy.

Entry Tax: The West Bengal Government has introduced "The West Bengal Tax on Entry of Goods onto local Areas Act, 2012" w.e.fO 1 /04/2012. This will increase the cost of raw material and other inputs procured from outside West Bengal by 1% thus lowering the profit margins.

c) Competition from local manufacturers: Local Extruders are expanding their capacities and have also started the production of extrusions in medium strength alloys. Some of the customers choose local suppliers for quicker deliveries. Further to compete with local suppliers, we have to sacrifice our margin to neutralize the effect of higher cost of packing, Freight & Central Sales Tax. Our location is in a relatively under-developed part of the country and the demand in this part is not good enough to account for our capacity. We have to sell a substantial quantity (over 65%) in other parts of India where our realization is lower compared to local supplies due to impact of the higher cost of packing, freight & Central Sales Tax and the newly introduced Entry Tax by the West Bengal Government.

d) Retention of experienced manpower: Our Company has always valued manpower as one of its greatest assets. Pool of talented, committed, and zealous workforce is the driving power behind its rapid growth. A dynamic and amicable work environment coupled with innovation and motivation aids the Company to maintain its treasured manpower.

e) Price Fluctuation Risk: Spiraling raw material prices have been looming large over the extrusion industry for the last couple of years Continuous supervision of aluminium metal inventory in order to get maximum benefit or alternatively to curtail loss by monitoring inventory levels in each circumstance is a major challenge, and this is regularly scrutinized at the highest level in the Company.

i) Trade Union Activities: Our Workmen''s unions operate under the control of three different political parties .It is a challenge to meet the ever-increasing expectations from the Unions, who at times put unreasonable demands due to inter-union rivalry in a bid to secure the support of large number of workmen.

R1SKMANAGEMENT

We believe that -"The first step to the risk management process is to acknowledge the reality of risk. Denial is a common tactic that substitutes deliberate ignorance for thoughtful planning ". Our Company has a system based approach to business risk management. Backed by a well- planned internal control system, the current risk management agenda consists of the following elements:

- Enterprise Risk Management Policy manual clearly lays down the strategy, policy and initiatives in relation to risk management.

- A strong and independent Internal Audit Function carries out risk focused audits enabling identification of areas where risk management processes may need to be improved. The Audit Committee of the Board reviews Internal Audit findings and provides strategic guidance on internal controls. The Audit Committee closely monitors the internal control environment within the Company and ensures that Internal Audit recommendations are effectively implemented.

- The Senior Management of the Company periodically reviews the risk management framework to effectively address the emerging challenges in a dynamic business environment.

The Company strives to identify opportunities that enhance Organizational values while managing & mitigating risks that can adversely impact its future performance.

SEGMENT-WISE / PRODUCT-WISE PERFORMANCE

The Company has two business segments i.e. manufacturing of Aluminum Extruded Products and manufacturing of Power Transmission & Distribution Line Hardware. However, the Company does not fall under any of the criteria laid down under AS-17 and hence Segment Reporting is not applicable.

INTERNAL CONTROL SYSTEM

The Company has an adequate internal control system to ensure proper and efficient use of the Company''s resources, their protection against any unauthorized use, accuracy in financial reporting and due compliance of the Company''s policies and procedures as well as the Statutes. Internal Audit reports are regularly placed before the Audit committee and management analysis of the same is done to ensure checks and controls to align with the expected growth in operations. The Internal audit is carried out by an independent firm of Chartered Accountants on a regular basis and corrective actions are taken when any shortcomings are identified.

The Audit committee reviews the adequacy of the internal control system and provides its guidance for constant improvement in the system.

INFORMATIONTECHNOLOGY

The Company is continuously working on the Information Technology to get the maximum benefits for the Organization. The Company is successfully using a software system which is single, comprehensive, integrated solution called SAP Business One application. With the use of this integrated software there have been profound improvements in all spheres of its activities.

HUMAN RESOURCE AND INDUSTRIAL RELATIONS

Of all the valuable assets on Earth Human Resource is the most valuable one. Keeping in view this perspective, our Company endeavours to provide a congenial and healthy work environment and emphasizes on performance appraisal and on-the-job trainings to value talented manpower.

Our Company appreciates that individual efforts combined with integrated teamwork facilitate a concern to reach its defined targets. Effective human resource management systems and practices are developed and followed by the organization to create a proactive work culture to ingrain core values

Our Company wishes to put on record its sincere appreciation for teamwork and efforts of all employees for the betterment of the organization.

CORPORATE SOCIAL RESPONSIBILITY (CSR):

All industrial applications make an impact on the environment. The Aluminum Sector is one of the industries that affects the environment least. The Extrusion production methods do not harm the environment. The wastes generated in such facilities are at a level, which is not harmful for the environment.

Our Company is committed to ensure adequate Health and Safety Standards. It is noteworthy that the Company has received the prestigious OHSAS 18001:2007 certification for its relentless commitment towards maintenance of Occupational Health and Safety Management System Standards.

Furthermore, our Company embraces its responsibility

towards impact of its operations on the society. In 2012-13, our Company made contribution towards blood donation, medical treatment for children belonging to poor families, child education and other charitable causes.

The Company over the years is pursuing as part of its corporate philosophy, an unwritten CSR policy voluntarily which goes beyond mere cosmetic philanthropic gestures and integrates interest, welfare and aspirations of the community with those of the company itself in an environment of partnership and mutual trust for inclusive development.

Even though your Company has always been conscious about its carbon footprint on the environment, CSR activities in its true sense haven''t been initiated, the Company however has always strived to be a responsible corporate citizen to create an eco-friendly impact.

DIRECTORS

Mr. M.G. Todi and Mr. A.K. Hajra retire from directorship of the Company by rotation, and being eligible, offer themselves for re-appointment.

Brief resume of the Directors proposed to be appointed/re- appointed, nature of their expertise in specific functional area and the names of the Companies in which they hold directorship and membership/chairmanship of Board Committees, as stipulated under clause 49 of the listing agreement with the Stock Exchanges, are provided as an annexure to the Notice convening the Annual General Meeting.

CRISILRATING

CRISIL believes that Century Extrusions Ltd (CEL) will maintain its financial risk profile over the medium term supported by its moderate capital structure and low gearing. CRISIL has assigned its ''CRISIL BBB-/Stable'' rating to the cash credit facility of CEL and reaffirmed its rating on CEL''s letter of credit, bank guarantee and term loan facilities at ''CRISIL BBB-/Stable/CRISIL A3'' on December 26,2012. The ratings continue to reflect CEL''s healthy financial risk profile, marked by a low gearing and healthy interest coverage ratio, diversified end-user profile, and established relationships with its suppliers. These rating strengths are partially offset by CEL''s large working capital requirements, and susceptibility to volatility in raw material prices.

DIRECTORS''RESPONSIBILrrYSTATEMENT

The Board of Directors of the Company confirms:

i. that in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

ii. that the selected accounting policies were applied consistently and the directors 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 March 31, 2013 and of the profit or loss of the Company for the year ended on that date;

iii. that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv. that the annual accounts have been prepared on a going concern basis.

AUDITORS /AUDITORS'' REPORT

The auditors, M/s. A L P S & Co., Chartered Accountants, retire at the ensuing Annual General Meeting and have confirmed their eligibility and willingness to accept office, if re-appointed. There are no qualifications or adverse remarks in the Auditors'' Report, which require any clarification/ explanation.

COSTAUDITORS

As per the directive of Central Government pursuant to the provisions of Section 23 3B of the Companies Act, 1956, your Directors have re-appointed M/s. N Radhakrishnan & Co. a firm of Cost Accountants, to conduct the audit for the year ended 31st March, 2013.

PUBLIC DEPOSITS

The Company did not invite or accept any deposit from the public under Section 58Aof the Companies Act, 1956.

PARTICULARS AS PER SECTION 217 OF THE COMPANIES ACT, 1956

The information relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and

Outgo required under section 217 (1) (e) of the Companies Act, 1956, is set out in a separate statement attached to this report and forms part it. The Company had no employee of the category indicated under section 217(2A) of the Companies Act, 1956.

CORPORATE GOVERNANCE

The Company has been proactive in following the principles and practices of good Corporate Governance as an important step towards building investor confidence, improve investors'' protection and maximize long-term shareholder value.

The Company has complied with the Corporate Governance code prescribed by the Stock Exchanges. A detailed report on Corporate Governance along with Auditors'' Certificate on compliance with the mandatory recommendations on Corporate Governance is annexed to this report.

ACKNOWLEDGEMENT

We thank our customers, vendors, investors and bankers for their continued support during the year. We place on record our appreciation of the contribution made by employees at all levels.

We thank the Government of India, the Customs & Excise Departments, the Sales Tax Department, the Income Tax Department, the State Government and other Government agencies for their support, and look forward to their continued support in the future.

CAUTIONARYSTATEMENT

Statements forming part of the Management Discussion and Analysis covered in this report may be forward-looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement. The Company takes no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent developments, information or events.

For and on behalf of the Board of Directors

Date: 28thMay 2013 MP Jhunjhunwala

Place: Kolkata Chairman & Managing Director


Mar 31, 2012

The are pleased to present the 24th Annual Report of the Company for the year 2011-2012.

Growth of the Indian economy

The Global Economy has entered into a very difficult phase characterized by significant downside risks and fragility. The financial mayhem generated by the deepening of the fiscal crisis in Europe has spread to both developing and high income countries and is generating significant headwinds.

Against a backdrop of an uncertain global environment, the Indian economy faced twin macroeconomic challenges of managing growth and containing inflation during the fiscal 2011-12. The factors which influenced the current macroeconomic climate in India and interrupted recovery were intensification of debt crises in Euro zone, political turmoil in Middle East, fluctuating global commodity prices, hardening of international prices of crude oil, stagnation in Japan, etc..

GDP is estimated to grow by 6.9 per cent in 2011-12, after having grown at 8.4 per cent in preceding two years. Slowdown in comparison to preceding two years is primarily due to deceleration in industrial growth. India however remained front runner in economic growth in any cross-country comparison. India's GDP growth in 2012-13 is expected to be 7.6 per Cent.

The Scenario of the Aluminum Extrusion Industry

The Aluminium Extrusion industry is characterized by high entry barriers, due to the capital-intensive nature of the business. The domestic primary aluminum industry is around 4-5 per cent of the global aluminum industry. The Indian aluminum extrusions market has an installed capacity of about 5,20,000 Metric Tonnes (MT) per annum. which is likely to see a double digit growth over the next few years due to robust demand from all its consumer segments, particularly Building & construction, power and electrical and automobile sectors.

Architectural, building and construction sectors are the major users of aluminium extrusions in India. The vibrant real estate sector will increase the demand for extrusions in the coming years. Automotive sector is growing at around 15% per annum and is expected to witness similar growth trend for the next few years. Large investments are proposed in the power sector and significant development is taking place in the electronics sector. In India, mega and ultra-mega power projects are being set up with a vision to make the country self reliant in electricity. Some of the key applications for extrusion include flat and tubular busbars, solar panels and heat sinks, etc.

Solar frames and mounting systems are also emerging as key applications and the demand from this sector is expected to increase rapidly in the next few years. Demand for extrusions is expected to grow at 12-15% during the next five years There is increasing emphasis on high quality extrusions in terms of specifications as well as aesthetics.

The Indian extrusion industry offers unlimited possibilities in terms of shapes and sizes for use across various industrial sectors, which has opened up a plethora of new applications.

FINANCIAL PERFORMANCE

The Company achieved a sales turnover of Rs. 21192 lacs as against Rs. 17961 lacs in the previous financial year recording an increase of about 18%. The Power Transmission & Distribution Hardware (Power T & D Hardware) division registered a sale of Rs. 400 lacs as against Rs. 216 lacs in the previous year. The balance of the turnover was contributed by Company's principal business i.e. by Aluminium Extrusions Division.

The Profit After Tax (PAT) for the year is Rs. 320 lacs as against Rs. 58 lacs showing moderate improvement in financial performance. The gain from higher volumes has been offset by:

(a) Significant increase in Electricity tariff and fuel cost..

(b) Significant increase in Finance Cost due to hardening of interest rates in India.

(c) Apparent slowdown in general economic activity.

The Company had continued to keep cost control as the cornerstone of its operations and to raise its output of value-added products. The Company continues to invest in upgradation of Technology for cost reduction & improved performance. The Company has taken steps to counter the above factors and expects to achieve higher Sales Turnover as well as profitability in the next financial year.

(Rs. in lacs, except per share data)

Year ended March31 2012 2011

Sales 21192 17961 Profit before Interest, Depreciation and impairment of Assets 1290 963

Interest 606 493

Profit before Depreciation and Impairment of Assets 684 470

Depreciation and Impairment of Assets 413 404

Net Profit 271 66

Provision of Taxation (-)49 8

Profit after Tax 320 58

Profit brought forward 1433 1375

Balance carried to Balance Sheet 1753 1433

DIVIDEND

The Company's inadequate profits does not justify a dividend payout. Hence to conserve our reserves we are unable to recommend any dividend for the year under review.

PRODUCTION

The Aluminium Extrusions production for the year 11086 MT as against 10033 MT in previous financial year showing a growth of 10.50%.

The Power T & D Hardware achieved production of 233 MT during the year as against 133MT during the previous year. The industry has a longer gestation period of roughly 4 to 6 years mainly because the prospective customers, mainly the State Power Distribution Companies require prior supply experience before they allow new vendors to participate in their tenders. The Company has already completed four financial years of operation in the Power T & D Hardware business and expects this division to contribute higher turnover and profitability from 2013-14 and onwards.

COMPANY OVERVIEW AND GROWTH STRATEGY

While we succeed only as an enterprise by serving our customers to their satisfaction, our relentless focus will remain on value creation.

Success Drivers

Our Legacy: With an experience spanning a rich 21 years, our Company enjoys a number of first mover advantages comprising a comprehensive understanding of the aluminium and aluminium extrusions market, reputed brand and a strong customer base.

Integration: We possess in-house facilities for -

- Melting and casting of billets, Homogenizing.

- Extrusions manufacturing with three press lines.

- Complete Die manufacturing,

- Manufacturing various value added products of extrusions for engineering applications, and

- Manufacturing Power Transmission & Distribution Hardware.

With 3 extrusion press lines, the Company has a capacity to produce 15000MT of Aluminium Extrusions, which as per the information available with the Company, is the 3rd largest facility in India as on date.

Die Library: The Company possesses an inventory of more than 5000 dies to manufacture over 3750 profiles. The Company maintains back-up dies for meeting the requirements of fast moving profiles.

Availability of raw material: The Company accesses raw material (aluminium ingots and billets) from three renowned and proximate primary metal manufacturers- Vedanta Aluminium, Nalco and Hindalco, The Company is one of India's largest institutional aluminum ingot/billets consumers with corresponding purchase economies.

Quality assurance: The Company's manufacturing facility is accredited with the prestigious ISO-9001:2008 certification endorsing its strong quality systems. Your Company continues to focus on maintaining the highest quality and safety standards in its factory. The Company is presently in process of upgrading its Quality Management System to become compliant with Environmental Management System ISO 14001:2004 & Occupational Health & Safety Assessment Series OHSAS 18001:2007.

The Company supplies extrusions as per tolerances laid down by the Bureau of Indian Standards in accordance with BIS: 2673-1979, BIS:3965-1981 and BIS:6477-1983, and with even tighter tolerances as per customer needs.

The sharp focus on Quality in all its initiatives has enabled our Company to launch some specific value-added services

Product applications: We manufacture extruded products for varied applications, viz.:

- Profiles for Architectural Applications such as Building Systems, Structural Glazing, Curtain Walls, Aluminium Rolling Shutters, Windows,Doors, Partitions, False Ceilings, Tower Bolts, Hand Rails, Door Handles, Hinges, Drapery Rods, Modular Furniture, etc.

- Profiles for Road Transport Sections.

- Profiles for Rail Coach Windows & Doors.

- Profiles for manufacture of Automobile Components.

- Profiles for Heat Transfer in Electronics & Electrical Gadgets

- Profiles for Electrical applications such as Tubes and Flats for Bus Bars, Transmission Line Hardware such as P.G. Clamps, H-Connectors, Repair Sleeves, Lugs, Solar Panels etc.

- Profiles for Engineering Applications such as Motor Housings, Gear Pump Casings, Ferrules, A.C.Louvers, Machinery Parts, Elevators, Pneumatic Actuators, Pneumatic Cylinders, Valve Bodies, etc.

- Profiles for various Defence Applications and many more.

The Company also has necessary set up to supply extruded and cold drawn round bars and hexagonal bars in straight lengths for various engineering applications. It also has a set up to supply extruded and cold drawn rods/wires in coil form to be used as armour rods, lamp pin stock, metallizing wire, rivet stock, welding filler wire etc.

Customer profile: The Company possesses a portfolio of over 600 reputed customers. The Company has retained most of the customers over a period of 21 years.

Our Company is in a position to supply Extruded Aluminum Profiles in Alloys 1xxx to 7xxx series. This is our major competency. Our Business strategy is to book maximum part of our installed capacity for supply directly to end-users.

Company's Presence across several verticals

The company's product portfolio comprises of extrusions in soft, medium and high strength aluminium alloys. It manufactures aluminium profiles for architectural applications such as windows, doors, door handles, modular furniture etc. Its products are used in rail coach windows and doors, electrical gadgets, transmission line hardware, gear pumps, elevators, pneumatic cylinders and defense applications. Along with diversified end-user industries the company has strong client base. Its top 10 clients do not account for more than 25% and no single client accounts for more than 10% of its total revenues. The company's diverse customer base provides revenue stability and risk mitigation to a slowdown in any particular sector.

The Company enters into long-term contracts with its suppliers for its annual raw material requirements, and receives cumulative annual discounts from Vedanta Aluminium Ltd and. National Aluminium Company Ltd on lifting pre-specified quantities. Our revenues have registered a compound annual growth rate (CAGR) of 13.41 % over the past five years

Rich Market Presence

Times are changing and markets are changing. The good thing is that a change is always a chance. This brings new expectations to the table that needs to be satisfied. The Company is committed to understand customer requirements and deliver products in totality. Prudent and conscious efforts are made with a dedicated team of professionals to satisfy the customers. High levels of ethics and transparency are maintained in dealing with the clients to improve their confidence in the brand and the Company.

A network of branches and sales offices in close proximity to the customers enable us to ensure efficient, effective and timely service. The Company possesses a portfolio of over 600 reputed customers. Nearly 87% of the revenues in 2011-12 were derived out of sales to long-standing customers. The real strength of the Company lies in its large number of customers in different customer segments spread in different geographical segments in a growing economy like India.

We at Century Extrusions Limited are looking forward to the forthcoming challenges and are confident to meet your expectations through continuous development of customer-optimised solutions.

FUTURE OUTLOOK

Extrusions

The Company has an installed capacity to produce 15000MT of extrusions per annum. As against this, our production for the year 2011-12 was 11086 MT. We thus have a significant spare capacity to increase production and sales volume.

The demand for aluminium extrusions has been growing in double digits for past few years. However, even today the present per capita consumption of aluminium in India is very low at below 2 kg. against over 10 kg. in developed countries. Due to this very low present consumption, meaning a low base, the demand growth for extrusions is likely to remain buoyant over many years to come.

The segment-wise expected demand growth is given hereunder:

1. Power Sector-Power and infrastructure sectors in India are witnessing and would continue to witness strong growth in the coming years with the boost from policy measures and budgetary allocations. Our country faces continuing power shortage. More investments to plug the gap means more aluminium extrusions.

2. The vibrant Real Estate Sector in our country-Building industry is the largest consumer of extrusions. Construction is now moving heavily into Tier II and Tier III cities in addition to Tier I cities. Current demand for extrusions from this sector is largely for simple door & window sections. The usage of building systems and Unitized systems are yet to gain large scale acceptance in the market.

Triggered by growth opportunities in the construction sector with increasing government budgetary support for the housing sector, the Company eyes for a wider market as more homes and offices mean more aluminium extrusions.

The light weight, high strength and durability of aluminum alloys make aluminum attractive for building and construction. At one third the weight of steel and extensive design options, Aluminium is the ideal solution for the building & construction industry.

3. Rapidly growing Automobile Industry - A bright perspective in consumption of aluminium extrusions is seen in the automobile industry. Aluminium extrusion is used in the manufacture of select automotive parts such

as small Chassis, suspension, bumper, exteriors, interiors, body structure and steering. Aluminium extrusion in automotive space frames is an upcoming application and is being used in high end cars of Audi, BMW and others. Some of the key applications of aluminium extrusions in passenger cars include: Structural Parts, Safety Parts and Heat Exchangers: More road and more vehicles mean more aluminium extrusions. The Growing Vehicular aluminium content for light weighting of vehicles to save fuel will drive aluminium demand further.

4. Engineering Applications- Aluminium Extrusions are increasingly being used to manufacture forged & machined components for use as parts of machinery, fasteners, rivets, wire rope ferrules, motor housings for domestic water pumps, hydraulic gear pump casings, heat sinks, ladders, elevators, etc.

5. The Sustained Agriculture Emphasis in our Country - More investments in irrigation mean more aluminium extrusions

6. Solar Energy Industry is an emerging opportunity, which implies significant consumption opportunities for aluminium extrusions from solar panels over the years to come.

7. Indian Defence Sector: Aluminium extrusions are consumed in a wide range of applications in this sector, comprising tail-end fuse connectors for detonator shells and grenades, frame-work for tents and as a roll-over carpets for tanks to navigate difficult terrains.

Given the significant supply deficits, high growth potential and conducive government policies, a large opportunity exists for the Aluminum extrusions suppliers including our Company.

The above projection of robust demand growth is however tempered by the fact that the extrusion industry is fragmented, and significant competition exists among players in the industry. As a result, the bargaining power of industry players is moderate.

Power Transmission & Distribution

The power sector provides one of the most important inputs for the development of a country and availability of reliable and inexpensive power is critical for its sustainable economic development. India today stands at the threshold of being an economic superpower. Power is one of the key requirements to support and sustain our economic growth. India's electricity demand is expected to grow at an average annual rate of 7.4% in the next 25 years. Power is a key ingredient in driving growth in manufacturing & services. Aluminium finds growing use in this space as it is directly used in the overhead transmission and distribution lines.

Power Transmission and Distribution Hardware Fittings are required for use on Overhead Transmission and Distribution Lines for connecting Insulators with Tower/Pole Cross Arms and Insulators with conductors.

The Company has manufacturing facilities for casting of Aluminium Alloys, manufacturing of Extruded products in Aluminium & its Alloys, Wire Drawing, Helical Products, Fabrication of Ferrous & Non-Ferrous Components, Argon Welding, Electric Arc Welding, Machining, Bundle Spacer Assembly, Vibration Damper Assembly, Conductor Accessories, Clamp Connectors for Hardware Assembly, and manufacturing of Tools, Dies & Moulds.

Aluminium is also used in insulated and underground cables laid in large populated urban areas and in reserved forests (to avoid deforestation), Round Tubes are used for corona control rings, grading rings, mid-span compression joints, dead-end clamps and jointing sleeves, among others, signifying huge opportunities for extrusions in the power sector.

During the financial year 2011-12 the Company recorded a sales turnover of T & D Hardware amounting to Rs. 400 lacs (approx) as against Rs. 216 lacs in the previous financial year. The Company has successfully registered itself as a supplier of its products with a number of State Electricity Boards during the year and the process is continuing. The process will get further momentum as company achieves requirements of minimum years of supply track record and experience, with each passing year. The Company has received substantial orders from the said State Electricity Boards and State based utilities and Erection Contractors.

As the Company gets itself registered as a supplier with more electricity utility companies, the order book will become better and stronger, and the growth in coming few years is likely to be in multiples of the previous year performance.

Challenges in the Indian Extrusions market

The outlook for aluminium extrusions demand this year has weakened mainly due to sovereign debt crisis in Europe. However the medium term outlook is still firm. The automobile sector will see solid gains in both the developed and developing world. Aluminium is still used only for simple applications at present in India. Complex applications a small market by itself, is catered to through imports. Technical know how is significantly lesser than in Europe & USA. Customers prefer to buy "off the shelf products; This will have to change with more industrial applications coming in. Price is a key driving factor and India is amongst the most price sensitive markets in the world. Quality extrusions will cost more, but pays in the long run. It needs to evaluate the whole life costs while deciding where to buy from. Building & Construction sector is becoming more quality conscious. Architects/Big builders are directly interacting with Extruder's for supply of profiles.

Some of changes happening are:

- Wider sections.

- More complex shapes.

- Tighter tolerances

- Focus towards buying 'Solutions' rather than 'off the shelf profiles' is increasing.

RISKS AND AREAS OF CONCERN

The Company's operations and value are continuously protected by identifying risks at an early stage which facilitates managing them better. The Company's capability to assess and manage business risks is crucial in achieving targets. The Company perceives the following risks and concerns.

a) Market Competition: The Company is operating in a highly competitive market as market dynamics are forever changing with entry of new players in the field of extrusion manufacturing. New players are targeting resellers consequently old players who were earlier in reseller markets are turning towards end users creating competition for the Company.

With free market economy now prevailing in India, high quality imported extrusions are freely available in the local market. Hence unless Indian Extrusion Industry, particularly in the unorganized sector undertakes technological up-gradation in the foreseeable future, over next five years, this sector may be wiped out of the market by availability of cheaper and superior quality imported products.

The Company is striving to developing extrusions in new alloys and can grasp the niche market where competition is still less and margins are higher.

b) Government Policy risk: The Government policies in the present economic scenario are pro-industry and pro- growth which minimizes the inherent policy risk. But at times there are delays in clearances/approvals by Govt. agencies in obtaining lease renewals for land mortgaged with financial institutions and banks. This adversely affects the financial facilities obtained from the Banks.

Entry Tax: The West Bengal Government has introduced "The West Bengal Tax on Entry of Goods onto local Areas Act, 2012" w.e.f 01/04/2012. This will increase the cost of raw material and other inputs procured from outside West Bengal by 1%.

c) Competition from local manufacturers: Local Extruders are expanding their capacities and have also started the production of extrusions in medium strength alloys. Some of the customers prefer local suppliers for faster deliveries. Further to compete with local suppliers, we have to sacrifice our margin to neutralize the effect of higher Freight and Central Sales Tax. We are located in a comparatively under-developed part of the country and the demand in this part is not good enough to account for our capacity. We have to sell a substantial quantity (over 70%) in other parts of India where our realization is lower compared to local supplies due to impact of the high freight and Central Sales Tax and the newly introduced Entry Tax by the West Bengal Government.

d) Retention of experienced manpower: Company faces a challenge in retaining the trained work force. The Company has created employee friendly policies and a conducive environment for work-life balance.

e) Price Inflation Risk: Fluctuating raw material prices have been witnessed too often over the past few years. Continuous monitoring of aluminium metal inventory in order to get maximum benefit or alternatively to minimize loss by keeping ideal inventory levels in each circumstance is a major challenge, and this is regularly monitored at the highest level in the Company.

f) Trade Union Activities: Our Workmen's unions operate under the control of three different political parties. It is a challenge to meet the ever-increasing expectations from the Unions, who at times put unreasonable demands due to inter-union rivalry in a bid to secure the support of larger number of workmen.

RISK MANAGEMENT

There is a quote which says "What gets measured is managed". Your Company has a system based approach to business risk management. Backed by a strong internal control system, the current risk management framework consists of the following elements:

Enterprise Risk Management Policy manual clearly lays down the strategy, policy and initiatives in relation to risk management.

A strong and independent Internal Audit Function carries out risk focused audits enabling identification of areas where risk management processes may need to be improved. The Audit Committee of the Board reviews Internal Audit findings and provides strategic guidance on internal controls. The Audit Committee closely monitors the internal control environment within the Company and ensures that Internal Audit recommendations are effectively implemented.

The Senior Management of the Company periodically reviews the risk management framework to effectively address the emerging challenges in a dynamic business environment.

The Company strives to identify opportunities that enhance Organizational values while managing & mitigating risks that can adversely impact its future performance.

SEGMENT-WISE/PRODUCT-WISE PERFORMANCE

The Company has two business segments i.e. manufacturing of Aluminum Extruded Products and manufacturing of Power Transmission and Distribution Line Hardware. However, the Company does not fall under any of the criteria laid down under AS-17 and hence Segment Reporting is not applicable.

INTERNAL CONTROL SYSTEM

The Company has an adequate internal control system to ensure proper and efficient use of the Company's resources, their protection against any unauthorized use, accuracy in financial reporting and due compliance of the Company's policies and procedures as well as the Statutes. Internal Audit reports are regularly placed before the Audit committee and management analysis of the same is done to ensure checks and controls to align with the expected growth in operations. The Internal audit is carried out by an independent firm of Chartered Accountants on regular basis and corrective actions are taken when any shortcomings are identified.

The Audit committee reviews the adequacy of the internal control system and provides its guidance for constant improvement in the system.

INFORMATION TECHNOLOGY

The Company is continuously working on the Information Technology to get the maximum benefits for the Organization. The Company is successfully using a software system which is single, comprehensive, integrated solution called SAP Business One application. With the use of this integrated software there have been profound improvements in all spheres of its activities.

HUMAN RESOURCE AND INDUSTRIAL RELATIONS

Your Company recognizes the importance of people in its growth and has been progressing with the unflinching commitment of the dedicated team of employees. The Company's recruitment practices ensure that suitable candidates with merit are recruited and provided with the right opportunities to grow within the Organization. The Company has developed an HR strategy comprising need based training. Employees are encouraged to attend seminars, lectures, and training. Key performance indicators by department heads were subject to regular management review meetings.

There was a contract labour unrest demanding revision of daily wage rate as a result of increase by the Government of West Bengal. They went on strike for a few days which was then resolved after successful negotiations. Our Casual workers who are getting wages less than contract workers have also demanded increase in the wages.

Developing a learning culture has always been and will continue to be our uppermost priority. Our efforts in the coming years will be to enable our employees to continually grow and build a competitive edge by translating the learnings into positive actions. Several trainings were conducted during the year under review. We believe that together we can and will make the Company achieve its corporate mission.

CORPORATE SOCIAL RESPONSIBILITY (CSR):

The Company has over the years pursuing as part of its corporate philosophy, an unwritten CSR policy voluntarily which goes beyond mere cosmetic philanthropic gestures and integrates interest, welfare and aspirations of the community with those of the company itself in an environment of partnership and mutual trust for inclusive development.

Even though your Company has always been conscious about its footprint on the environment, CSR activities in its true sense haven't been initiated, the Company however has always strived to be a responsible corporate citizen.

DIRECTORS

Mr. V K Mushran, Mr. Vikram Jhunjhunwala and Mr. RK Sharma retire from directorship of the Company by rotation, and being eligible, offer themselves for re-appointment.

Mr. R N Das, Independent Non-Executive director has tendered his resignation with effect from 28 May 2012. Mr. Arun Kumar Hazra was inducted as an additional director in the Board Meeting held on 28.05.2012. Mr. Hazra will hold office till the date of the forthcoming Annual General meeting and a notice has been received from a member proposing the candidature of Mr. Hazra, being appointed as a Director of the Company.

Brief resume of the Directors proposed to be appointed/re-appointed, nature of their expertise in specific functional area and the names of the Companies in which they hold directorship and membership/chairmanship of Board Committees, as stipulated under clause 49 of the listing agreement with the Stock Exchanges, are provided as an annexure to the Notice convening the Annual General Meeting.

CRLSIL RATING

CRISIL has assigned its 'CRISIL BBB-/Stable' rating to the cash credit facility of Century Extrusions Ltd (CEL) and reaffirmed its rating on CEL's letter of credit, bank guarantee and term loan facilities at 'CRISIL BBB-/Stable/CRISIL A3'.

The ratings continue to reflect CEL's healthy financial risk profile, marked by a low gearing and healthy interest coverage ratio, diversified end-user profile, and established relationships with its suppliers. These rating strengths are partially offset by CEL's large working capital requirements, and susceptibility to volatility in raw material prices.

DIRECTORS' RESPONSIBILITY STATEMENT

The Board of Directors of the Company confirms:

i. That in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

ii. That the selected accounting policies were applied consistently and the directors 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 March 31, 2012 and of the profit or loss of the Company for the year ended on that date;

iii. That proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv. That the annual accounts have been prepared on a going concern basis.

AUDITORS/AUDITORS' REPORT

The auditors, M/s. A L P S & Co., Chartered Accountants, retire at the ensuing Annual General Meeting and have confirmed their eligibility and willingness to accept office, if re-appointed. There are no qualifications or adverse remarks in the Auditors' Report, which require any clarification/explanation.

COST AUDITORS

As per the directive of Central Government pursuant to the provisions of Section 233B of the Companies Act, 1956, your Directors have re-appointed M/s. N Radhakrishnan & Co. a firm of Cost Accountants, to conduct the audit for the year ended 31st March, 2013.

PUBLIC DEPOSITS

The Company did not invite or accept any deposit from the public under Section 58A of the Companies Act, 1956.

PARTICULARS AS PER SECTION 217 OF THE COMPANIES ACT, 1956

The information relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo required under section 217 (1) (e) of the Companies Act, 1956, is set out in a separate statement attached to this report and forms part it. The Company had no employee of the category indicated under section 217(2A) of the Companies Act, 1956.

CORPORATE GOVERNANCE

The Company has been proactive in following the principles and practices of good Corporate Governance as an important step towards building investor confidence, improve investors' protection and maximize long-term shareholder value.

The Company has complied with the Corporate Governance code prescribed by the Stock Exchanges. A detailed report on corporate Governance along with Auditors' Certificate on compliance with the mandatory recommendations on Corporate Governance is annexed to this report.

ACKNOWLEDGEMENT

We thank our customers, vendors, investors and bankers for their continued support during the year. We place on record our appreciation of the contribution made by employees at all levels.

We thank the Government of India, the Customs and Excise Departments, the Sales Tax Department, the Income Tax Department, the State Government and other Government agencies for their support, and look forward to their continued support in the future.

CAUTIONARY STATEMENT

Statements forming part of the Management Discussion and Analysis covered in this report may be forward-looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement. The Company takes no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent developments, information or events.

For and on behalf of the Board of Directors M P Jhunjhunwala

Chairman & Managing Director

Date: 28th May 2012

Place: Kolkata


Mar 31, 2010

We are pleased to present the 22nd Annual Report of the Company for the year 2009-10.

General Economic Recovery

The financial Year 2009-10 saw improvement in all sectors of Indian economy with the global economy also showing signs of gradual recovery from 2008-09 slowdown. In FY 2009-10, India pursued aggressive easing of monetary policy, together with significantly higher public spending to counter weak external demand. As a result, despite several vulnerabilities, economic activity has shown signs of improvement, particularly in industrial production, private business confidence, access to foreign capital and exports. As per the Economic Survey 2010, Indias GDP has been estimated to have grown at 7.2% during F.Y. 2009-10.

Investment in infrastructure especially in deficit regions like Asia is growing at a phenomenal rate. Aluminium consumption in Asia will continue to grow in FY 2010-11 as stimulus measures in China, the worlds biggest metals consumer, India, a fast growing large economy, and rest of the region lift demand for the metal. In India, mega and ultra- mega power projects are being set up with a vision to make the country self reliant in electricity. Large Construction projects have revived with renewed focus on heavy investment projects like mega housing projects, modernization of railways etc. where aluminum consumption is very high, and therefore, the aluminium industry will

continue on high growth path in coming years.

The growth of primary aluminium industry over the past 5/6 years period in Asia has been impressive with China being the major growth driver. The growth of the industry in India has been impressive though at a comparatively slower rate. This is set to change significantly in the next few years as the manufacturers in India have lined up aggressive growth plans. The primary Aluminium metal production in India is set to grow to 3-folds its present size in less than 3 years from now.

During the FY 2009-10, aluminium production in India increased by 12.99 percent (from 1.34 Million MT in 2008-09 to 1.52 Million MT during FY 2009-10) contributed by all the primary producers in India, namely Hindalco, Balco, Vedanta Aluminium and Nalco.

The Aluminium Extrusions industry has also recorded double digit growth during 2009-10, and expected to continue growing in double digits driven by demand growth, mainly from within India.

Financial Performance

The Company has performed reasonably well during the FY 2009-10. The Sales turnover at Rs. 132.95 crores and PAT at Rs.5.35 crores show increase of 20% and 91% respectively. This growth is mainly attributable to higher volumes in Aluminum Extrusions resulting from capacity expansion and the recovery in aluminium metal prices.

(Rs,000, except per share data)

Year ended March 31 2010 2009

Sales 1329491 1105676

Profit before Interest, Depreciation and Impairment of Assets 127914 66684

Interest 26476 14482

Profit before Depreciation and Impairment of Assets 101438 52202

Depreciation and Impairment of Assets 23925 6370

NetProfit 77513 45832

Provision for Taxation 24062 17804

Profit after Tax 53451 28028

Profit brought forward 93367 74699

Surplus available for Appropriation 146818 102727 Appropriations:

Proposed Dividend 8000 8000

Corporate Tax on Dividend 1329 1360

Balance carried to Balance Sheet 137489 93367

Dividend

Considering the financial performance of the Company for the year and to appropriately reward the members while conserving resources to meet the future financial requirements, we are pleased to recommend a dividend of Re.0.10 per equity Share of Re.l/- each for the year ended 31 st March, 2010. This dividend is subject to approval of the members at the forthcoming Annual General meeting.

Production

The Aluminium Extrusions production for the year was 8829MT in comparison to 6338MT in previous financial year showing a growth of 39%. The growth has mainly come from capacity expansion of 7500MT per annum. The expanded capacity commenced commercial production on 24th August 2009. With full production capacity being available for whole of the next financial year, the Company expects to achieve significantly higher production and sales during the FY 2010-11.

The Power Transmission and Distribution Line Hardware (T&D Hardware) achieved production of 48MT during the year as against 28MT during the previous year. This industry has a longer gestation period of roughly 3 years mainly because the prospective customers, mainly the State Power Distribution Companies require prior supply experience before they allow new vendors to participate in their Tenders.

General Business Profile, Strengths and Strategy Initiatives

The Company with an experience spanning a rich 18 years enjoys a number of first mover advantages comprising a comprehensive understanding of the aluminium and aluminium extrusions market, reputed brand and a strong customer base.

The Company possesses in-house facilities for die- manufacturing, melting and casting of billets and the extrusions manufacturing facility with three press lines. The Companys new state-of-the art 2700MT press line is automated to 90% and will cover the production of a large product range. The Company enjoys easy raw material access. It accesses the raw material from three renowned and proximate primary metal manufacturers - Hindalco, Nalco, and Vedanta Aluminium. The Company is one of Indias large institutional aluminium metal consumers with corresponding purchase economies.

The Company manufactures and supplies extrusions for varied applications (architectural, road transport vehicles, railways, electrical and electronic applications, engineering applications, automotive sector, consumer durables, Defence applications and irrigation, among others). The power sector accounts for the largest revenue proportion. The Company also has necessary set up to supply value added extruded products for various engineering applications.

Rich Market Presence

A network of branches and sales offices in close proximity to the customers enable us to ensure efficient, effective and timely service. The Company possesses a portfolio of over 600 reputed customers. Customer delight has been the Companys "Mantra" with a dedicated team of professionals. Utmost importance is given to client satisfaction. The Sales Team is fully qualified and trained to look after the customers diverse requirements for their complete satisfaction. High levels of ethics and transparency are maintained in dealing with the clients to improve their confidence in the brand and the Company. Nearly 86 % of the revenues in 2009-10 were derived out of sales to long-standing customers. The real strength of the Company lies in its large number of customers in different customer segments spread in different geographical segments in a growing economy like India.

We manufacture extruded products for varied applications, viz.:

- Profiles for Architectural Applications such as Building Systems, Structural Glazing, Curtain Walls, Aluminium Rolling Shutters, Windows, Doors, Partitions, False Ceilings, Tower Bolts, Hand Rails, Door Handles, Hinges, Drapery Rods, Modular Furniture, etc.

- Profiles for Road Transport Sections

- Profiles for Rail Coach Windows & Doors

- Profiles for manufacture of Automobile Components

- Profiles for Heat Transfer in Electronics & Electrical Gadgets

- Profiles for Electrical applications such as Tubes and Flats for Bus Bars, Transmission Line Hardware such as P.G. Clamps, H-Connectors, Repair Sleeves, Lugs, Solar Panels etc.

- Profiles for Engineering Applications such as Motor Housings, Gear Pump Casings, Ferrules, A.C.Louvers, Machinery Parts, Elevators, Pneumatic Actuators, Pneumatic Cylinders, Valve Bodies, etc.

- Profiles for various Defence Applications And many more.

On account of direct pass through of any increase / decrease in primary aluminium prices to those for aluminium extrusions, the industry is de-commoditised and relatively insulated from fluctuating primary aluminium prices. With depreciated assets, efficient inventory turns and relatively quicker receivable cycles, return-on-the-employed capital is reasonably good. The Company reported an ROCE of 19.11% in 2009-10.

Future Outlook and New Business Opportunities

Extrusions

The Company has commenced commercial production from its new 2700 MT Aluminium Extrusion press line on August 24,2009 and is able to produce profiles of larger dimensions and more stringent tolerances. The new expansion project put up at a capital investment of Rs.40 crores has enhanced the installed capacity for manufacture of Aluminium Extrusions from 7500 MT per annum to 15000 MT per annum. This would provide opportunities to produce and supply larger product range to our existing customers and also cater to the consumer segments where we had been unable to supply due to our capacity limitations.

There are a number of attractive opportunities for developing further value-added products of extrusions. The Company proposes to put up facilities to manufacture value-added products of extrusions such as anodizing and powder Coating facilities, door & window systems manufacturing facility, and facility for producing components/finished parts for auto, Solar panel and engineering industries in future. The Company is geared up to avail emerging opportunities in the following areas:

1. Power Sector - Our country faces continuing power shortage. More investments to plug the gap means more aluminium extrusions.

2. The vibrant Real Estate Sector in our country - More homes and offices mean more aluminium extrusions. Increasing government budgetary support for the housing sector is expected to sustain.

3. Rapidly growing Transportation Sector - More road and more vehicles mean more aluminium extrusions. The Growing Vehicular aluminium content for light weighting of vehicles to save energy will drive aluminium demand further.

4. The Sustained Agriculture Emphasis in our Country - More investments in irrigation mean more aluminium extrusions

5. Solar Energy Industry is a big emerging opportunity, which implies significant consumption opportunities for alurninium extrusions from solar panels over the years to come.

6. Indian Defence Sector: Aluminium extrusions are consumed in a wide range of applications in this sector, comprising tail-end fuse connectors for detonator shells and grenades, frame-work for tents and as a roll-over mattress for tanks to navigate difficult terrains.

The Companys debt-equity ratio of 0.72 indicates adequate potential for funding growth. The Company enjoys an interest cover of 4.41 and average borrowing cost of under

10% with term loans and working capital loans from banks as well as subsidised loan from the West Bengal Government.

Power T & D Hardware

Despite 18 years of power reforms, over 40% of the countrys population is still without electricity, 60 % of Indian firms and a large percentage of homes rely on captive or back-up generation. The spot rates for power have significantly increased in the last 12-18 months, led by the sharp increase in the peak and energy deficit levels. Aluminium finds growing use in this space as it is directly used in the overhead transmission and distribution lines.

Our long experience and the robust credibility in the field of manufacturing Aluminium extrusions, where we have significant presence in making supplies to customers in Power Segment, encouraged us to enter into the field of manufacturing Power Transmission and Distribution Hardware.

Power Transmission and Distribution Hardware Fittings are required for use on Overhead Transmission and Distribution Lines for connecting Insulators with Tower/Pole Cross Arms and Insulators with conductors. The Company has manufacturing facilities for casting of Aluminium Alloys, manufacturing of Extruded products in Aluminium & its Alloys, Wire Drawing, Helical Products, Fabrication of Ferrous & Non-Ferrous Components, Argon Welding, Electric Arc Welding, Machining, Bundle Spacer Assembly, Vibration Damper Assembly, Conductor Accessories, Clamp Connectors for Hardware Assembly, and manufacturing of Tools, Dies & Moulds. Aluminium is also used in insulated and underground cables laid in large populated urban areas and in reserved forests (to avoid deforestation), Round Tubes are used for corona control rings, grading rings, mid- span compression joints, dead-end clamps and jointing sleeves, among others, signifying huge opportunities for extrusions in the power sector.

During the financial year 2009-10 the Company could make only a modest sales turnover of T & D Hardware amounting to Rs. 69 lacs approx. The Company is in the process of getting registered with various State Electricity Boards and looks forward to receive substantial order from State Electricity Boards, Transmission & Distribution Line State-based Utilities, Erection Contractors, Transmission & Distribution line hardware manufacturers, etc. in the coming years.

The Company remains focused in its objective to pursue the path of profitability and sustained growth, maximize operational efficiency and strategies to attain the highest standard of quality, safety and productivity. Our attempts in optimizing the value of resources and retaining talent will continue to serve us well in our journey to the next level of growth.

Risks and Areas of Concern

Cost overrun in the Expansion project : The expansion project which was initially estimated to be put up at a project cost of Rs.34.50 crores absorbed around Rs.40 crores mainly due to depreciation of Indian Currency against US Dollar as two of our equipment forming over 50% of the project cost and sourced from Japan and USA were contracted in US Dollars. The Project Cost increase was funded from higher Term Loan borrowing and from Internal Accruals putting some pressure on the Companys resources. Further a higher project cost means need for a higher revenue to maintain the projected profitability.

Market Risk : Market dynamics are ever changing and competition is increasing as more aluminum extrusion presses are coming all over the country. New players are targeting resellers, consequently old players who were earlier in reseller markets are turning towards end users creating competition for the Company.

Competition from local manufacturers : Some of the customers prefer local suppliers for faster deliveries. To compete with local suppliers, we have to sacrifice our margin to neutralize the effect of higher Freight and Central Sales Tax.

Employee Attrition : This is a risk for any industry where growth is in double digits and the Company also faces a challenge in retaining its trained personnel. The Company has created employee friendly policies and a conducive environment for work life balance.

Trade union Activities: Our Workmens unions operate under the control of three different political parties. It is a challenge to meet the ever increasing expectations from Unions, who at times put unreasonable demands due to inter-union rivalry in a bid to secure the support of larger number of workmen.

The Company is addressing all these concerns in a structured manner and various strategies are in place to overcome all challenges.

Managing Risk

The Company has formulated a comprehensive risk management policy with the objective of providing a framework for the organization that enables future activity to take place in a consistent and controlled manner, contributing to effective use / allocation of capital and resources within the organization. The Company has formulated systems for regular identification and measurement of risks and measures to be taken from time to time for avoidance, mitigation or reduction of risks.

Segment-wise / Product-wise performance

The Company has two business segments i.e. manufacturing of Aluminium Extruded Products and manufacturing of Power Transmission and Distri -bution Line Hardware. However, the Company does not fall under any of the criteria laid down under AS-17 and hence Segment Reporting is not applicable.

Internal Control System and their adequacy

The Company has an adequate internal control system to ensure proper and efficient use of the Companys resources, their protection against any unauthorized use, accuracy in financial reporting and due compliance of the Companys policies and procedures as well as the Statutes. The internal audit is carried out by an independent firm of Chartered Accountants on regular basis, and corrective actions are taken where any shortcomings are identified.

The audit committee reviews the adequacy of the internal control system and provides its guidance for constant improvement in the system.

Human Resources and Industrial Relations

The Company continues its focus on attracting and retaining the best talent in the industry. The Company makes continuous effort to upgrade the standard of present employees by conducting various training programs.

As new business challenges emerge, there is a need to continue to be a learning organization that supports operational excellence, continuous improvement and rising standards of performance at all levels. Towards this the Company reviews the HR Policies to accentuate performance- linked rewards and professional growth.

A congenial work environment with proper infrastructure, continuous training opportunities for its employees, future growth and development opportunities and various welfare measures keep our employees continuously motivated.

The Company focuses on ensuring that all new members of the company are quickly assimilated into the organization by imbibing core organizational values. The Induction Manual of the company has been framed keeping the above in mind.

Developing a learning culture has always been and will continue to be our uppermost priority. Our efforts in the coming years will be to enable our employees to continually grow and build a competitive edge by translating the learnings into positive actions.

Your company had a long term wage agreement with its workmen which was valid till 31st October 2009. The negotiation for a new long term wage agreement is in progress. Your company had employed 363 numbers of permanent employees as on 3 Is1 March 2010.

We believe that together we can and together we will make the company achieve its corporate mission.

Corporate Social Responsibility (CSR)

The Company is committed to being a good corporate citizenship and believes in shouldering responsibility towards society, community and environment. Unfortunately, the Company could not undertake any social responsibility during the year 2009-10, about which we can write in this Annual Report.

Directors

Mr. R.K.Sharma was appointed as Additional Director pursuant to the provisions of section 260 of the Companies Act, 1956 on 27.10.2009. He continues to hold office up to the date of the forthcoming Annual General Meeting of the Company. The Company has received notice under section 257 of the Act alongwith requiste deposit in respect of Mr. Sharma proposing his appointment as Director of the Company. Resolution seeking approval of the members for the appointment of Mr. R K Sharma as Director of the Company has been incorporated in the Notice of the forthcoming Annual General Meeting along with his brief details.

Mr.Vikram Jhunjhunwala and Mr. V K Mushran retire from directorship of the Company by rotation, and being eligible, offer themselves for re-appointment.

The Board of Directors of the Company has, at its meeting held on 20th May, 2010 proposed for increase in the remuneration of Mr. M P Jhunjhunwala, Chairman and Managing Director for the remaining tenure of his service. The terms and conditions of his appointment, including his remuneration, are subject to approval of the members. The Supplemental Agreement to be entered into with him for increase in remuneration is also subject to approval of the members.

Brief resume of the Directors proposed to be appointed/re- appointed, nature of their expertise in specific functional area and the names of the Companies in which they hold directorship and membership/chairmanship of Board Committees, as stipulated under clause 49 of the listing agreement with the Stock Exchanges, are provided as an annexure to the Notice convening the Annual General Meeting.

Credit Rating

During the year, CRiSIL, the Credit Rating Agency for the Companys Banking facilities has revised its rating outlook on the Company Term Loan to Stablefrom Negative, while reaffirming the rating at BB+. The short-term rating has been reclassified as P4+ from P4. The revision reflects CRISILs expectation that CEL will maintain its moderate financial risk profile on the back of its established market position, coupled with the benefits expected from the recently increased capacities. The ratings continue to reflect CELs susceptibility to stretched liquidity for the increased scale of operations. The impact of these weaknesses is mitigated by CELs diversified customer profile, which imparts stability to its revenues.

CEL will benefit from its increased capacity. A combination of benefits of increased capacity and moderate financial risk profile will help the company maintain its current credit risk profile.

Directors Responsibility Statement

The Board of Directors of the Company confirms:

L that in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

ii. that the selected accounting policies were applied consistently and the directors 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 March 31, 2010 and of the profit or loss of the Company for the year ended on that date;

iii. that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv. that the annual accounts have been prepared on a going concern basis.

Auditors / Auditors Report

The auditors, M/s. A L P S & Co., Chartered Accountants, retire at the ensuing Annual General Meeting and have confirmed their eligibility and willingness to accept office, if re-appointed. There are no qualifications or adverse remarks in the Auditors Report, which require any clarification/ explanation.

Cost Auditors

As per the directive of Central Government pursuant to the provisions of Section 233B of the Companies Act, 1956, your Directors have re-appointed M/s. N Radhakrishnan & Co. a firm of Cost Accountants, to conduct the audit for the year ended 31st March, 2011.

Public Deposits

The Company did not invite or accept any deposit from the public under Section 58A of the Companies Act, 1956.

Particulars as per Section 217 of the Companies Act, 1956

The information relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo required under section 217(1) (e) of the Companies Act, 1956, is set out in a separate statement attached to this report and forms part of it.

Information in accordance with the provisions of section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 as amended, regarding employees is given hereunder.

Corporate Governance

The Company has been proactive in following the principles and practices of good Corporate Governance as an important step towards building investor confidence, improve investors protection and maximize long-term shareholder value.

The Company has complied with the Corporate Governance code prescribed by the Stock Exchanges. A detailed report on corporate Governance along with Auditors Certificate on compliance with the mandatory recommendations on Corporate Governance is annexed to this report.

Corporate Governance Voluntary Guidelines 2009

The Company is yet to adopt the Corporate Governance Voluntary Guidelines as issued by the Ministry of Corporate Affairs, Government of India. However the Company is striving to achieve the highest standards of corporate governance by adopting and implementing these guidelines in a phased manner over a period of two to three years.

Acknowledgement

We thank our customers, vendors, investors and bankers for their continued support during the year. We place on record our appreciation of the contribution made by employees at all levels.

We thank the Government of India, the Customs and Excise Departments, the Sales Tax Department, the Income Tax Department, the State Government and other Government agencies for their support, and look forward to their continued support in the future.

Cautionary Statement

Statements forming part of the Management Discussion and Analysis covered in this report may be forward-looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement. The Company takes no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent developments, information or events.

For and on behalf of the Board of Directors

Date: 20th May 2010 MP Jhunjhunwala

Place: Kolkata Chairman & Managing Director



 
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