Enkei Annual Report 2009-10

CASTING THE FUTURE

ISO/TS 16949 COMPANYEXPERTISE IN DESIGN, ENGINEERING & ALUMINIUM CASTING

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HIGH LIGHTS 00CORPORATE INFORMATION 00MESSAGES FROM MD 00ORGANISATION STRUCTURE 00

NATIONWIDE NETWORK & GLOBAL PRESENCE 00PRODUCT PROFILE-INDIA & EUROPE 00DIRECTOR’S REPORT 00LEADERSHIP TEAM 00

ANNEXURE TO DIRECTOR REPORT 00CORPORATE GOVERNANCE REPORT 00AUDITOR’S REPORT 00ANNEXURE TO AUDITOR’S REPORT 00

FINANCIAL 00CONSOLIDATE FINANCIAL 00BALANCE SHEET ABSTRACT 00PROXY FORM 00

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ALICON HOLDS A HISTORY FOR INNOVATION, A COMMITMENT TO QUALITY, DELIVERY AND PRICE PERFORMANCE.

EXPERTISE IN DESIGN, ENGINEERING & ALUMINIUM CASTING

Alicon Group has a long history for Innovation, a commitment to Quality, Delivery and Price Performance. These fundamental principles have made us best-in-class. For us, Aluminium castings is not just a business; it is our passion and our way of life.

From sophisticated high performance cylinder heads to other critical engine components, Alicon Group is a leader in the Aluminum casting domain. We supply both raw castings as well as finished machined parts to USA, Europe and Asia.

Our state of the art plants are TS 16949 certified and employ the best talents in the die casting business.

Technologically superior and highly process driven, Alicon supplies castings to the Atuomotive industry, extreme sports and both Tier 1 and Tier 2 companies.Alicon works closely with its customers from the development stage of the project to understanding our customer needs and share our experience and knowledge to design and manufacture better products.It is our commitment to quality that has made Alicon the partner of choice to supply to various OEMs

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BOARD OF DIRECTORS

MR. S RAI, Managing Director

MR. JunIChI SuzukI

MR. TETSuRO MASuI

MR. ASIS RAy

MR. A. D. hAROlIkAR

MR. S. C. khAnnA

MS. VInAy PAnJABI

REGISTERED OFFICE & WORkS

REgISTER OFFICE

Gat No. 1426,

Village Shikrapur, Taluka Shirur,

District Pune 412 208

Maharashtra. INDIA

T: +91 2137 677100

F: +91 2137 677130

Email: [email protected]

WORkS

57 -58 km Stone, Delhi Jaipur,

NH 8, Industiral Area, Village Binola,

Haryana. INDIA

ShARE TRAnSFER AGEnT

Mondkar computers Pvt. Ltd.

21, Shakil Nivas,

Mahakali Caves Road,

Andheri [E], Mumbai.

T: +91 22 2825 7641 / 28369704

Email: [email protected]

AuDITORS

M/s. Asit Mehta & Asociates

BAnkERS

Bank of Maharashtra, IFB Branch, Pune

ING Vysya Bank Ltd., F. C. Road, Pune

Mizuho Corporate Bank Ltd., Mumbai

Kotak Mahindra Bank Ltd., Pune

State Bank of India, IFB Branch, Pune

Export Import Bank of India, Shankarseth Road, Pune

Axis Bank Ltd., J. M. Raod, Pune

Bank of Tokya Mitsubishi - UFJ Ltd., Mumbai

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Donec luctus mattis fermentum. Ut mollis luctus arcu, nec venenatis lectus varius et. Proin nec aliquet nisi. Curabitur ac dolor nec mi dignissim porttitor vel sed urna. Aenean suscipit posuere metus, ac cursus quam imperdiet quis. Duis non dignissim mi. Nulla mi diam, egestas sed tempor ut, luctus vel lorem. Nulla facilisi. Sed eget suscipit tellus. Donec iaculis massa nec purus tempor hendrerit. Nulla ac velit libero, commodo lobortis mi.

Donec luctus mattis fermentum. Ut mollis luctus arcu, nec venenatis lectus varius et. Proin nec aliquet nisi. Curabitur ac dolor nec mi dignissim porttitor vel sed urna. Aenean suscipit posuere metus, ac cursus quam imperdiet quis. Duis non dignissim mi. Nulla mi diam, egestas sed tempor ut, luctus vel lorem. Nulla facilisi. Sed eget suscipit tellus. Donec iaculis massa nec purus tempor hendrerit. Nulla ac velit libero, commodo lobortis mi. Fusce lacinia lobortis massa, ac tincidunt velit ullamcorper ut. Morbi mattis ante ac tellus hendrerit commodo.

Donec blandit congue iaculis. Fusce in lacinia lorem. Proin eget eleifend enim. Pellentesque et enim nisi, ut sagittis augue. Quisque id arcu arcu. Proin hendrerit nulla at magna porttitor ultricies. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas.

Integer vel arcu id dolor iaculis condimentum nec ut mauris. Praesent urna neque, mattis et eleifend eu, lobortis in lorem. Nulla ac nulla lacus. Duis ac neque urna. Pellentesque justo nunc, pellentesque at gravida ut, pellentesque eget ligula. Nullam

mauris quam, imperdiet in vehicula a, accumsan vel urna. Vestibulum vel erat tellus. Nam ac felis sit amet odio feugiat vestibulum laoreet vitae libero. Mauris gravida erat vehicula lectus feugiat hendrerit. Nam at sapien tellus, et auctor diam. Aliquam sagittis blandit augue at aliquam. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Nulla vestibulum, felis et rutrum rutrum, nisl odio fringilla orci, a dignissim enim nunc quis mauris. Curabitur vestibulum faucibus odio, nec scelerisque augue consequat nec. Suspendisse viverra, enim eget aliquet venenatis,

diam arcu viverra orci, in feugiat lacus erat at urna. Etiam lorem arcu, porttitor at posuere eget, pharetra et lacus. In posuere ligula quis odio placerat pellentesque. Maecenas posuere massa mattis ipsum consectetur euismod. Nulla facilisi. Maecenas vitae ante dui, sed elementum quam

Nulla M. FacilisiManaging Director

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ENKEI WORLDWIDE

Enkei Corporation was founded on 5th October 1950, in Hamamatsu, Japan as a manufacturer of die cast aluminum engine parts for motorcycles. Over a period of time, Enkei’s line of business diversi-fied continuing with their core strength of manufacturing aluminum wheels for automobiles, motorcycles and other prod-ucts using aluminum casting and forging technology.

Enkei’s business in the aluminum wheel industry ranges from very sophisticated racing wheels for Formula 1 Rally and others to the OEM market supplying to all the large auto manufacturers in Japan and USA. Enkei group is leader in alloy wheels worldwide and has the distinction of supplying magnesium alloy wheels to the prestigious McLaren Mercedes Formula 1 team.

Enkei has plants located in Japan, USA, China, Thailand, Malaysia, Indonesia, Philippines and India.

THE INDIAN FOOTpRINT

Enkei Castalloy Limited is a joint venture between Rai and Associates, India and Enkei Corporation, Japan. Enkei coopera-tion is the second largest manufacturer of alloy wheels in the world, garnering sales of over a million wheels per month and a turnover of USD 2B in sales.

Technical expertise from Enkei Japan has been instrumental in establishing one of the most advanced manufacturing systems in India for aluminum die cast products. Enkei Castalloy Ltd. currently leads the Indian market in manufacturing cylinder heads for two wheelers and 4 wheelers. Enkei Castalloy Ltd. has the distinction of being a single source supplier of many critical engine parts to some of India’s largest OEMs.

Establishing strong mechanisms to control quality, cost and delivery, Enkei Castalloy Ltd. not only supplies its products to India but also is foraying into international markets. Enkei currently supplies products to various Tier I / Tier II suppliers of global OEMs in Europe and USA. Some of Enkei Castalloy’s customers are Maruti Suzuki Limited, Honda Siel Cars Limited, Tata Motors, Bajaj Auto Limited, Hero Honda Motor Industries, Honda Scooter and Motorcycle Company. International custom-ers include John Deere, Behr Group, GE, Knorr Bremse, ZF Group, and GWK Group.

Aggressively tapping on the opportunities in the Indian and International markets, Enkei Castalloy Ltd. is growing rapidly at almost 100% each year for the last 3 years. In continuation of its growth pursuit, Enkei is aggressively targeting international cus-tomers and has a vision to achieve sales of 1000 Crores by 2015-16. The main site is located at Shikrapur, Pune with 1500 em-ployees while the other site is at Gurgaon in North India. Plans for the new plant are under finalization which is expected to come up at Pantnagar, Uttaranchal.

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WHERE TECHNOLOGY mEETS pERFORmANCE

When it comes to custom castings, quality is essential. That’s why Enkei Castalloy Limited has one of the most comprehensive quality control systems in the industry. But the best quality system isn’t enough for us. We are continually testing and monitoring the manufacturing process so we can achieve the highest standards possible. Regardless of your location, custom casting

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ENKEI CRADLE-TO-CRADLE ENGINEERINGFROm DESIGN INCEpTION, THROUGH TO THE FINISHED pRODUCT, ALICON IS YOUR SINGLE SOURCE FOR ALUmINUm CASTINGS. YOU CAN COUNT ON ENKEI CASTALLOY LImITED FOR pRECISION CASTINGS THAT ARE BACKED WITH THE HIGH-QUALITY SERVICE YOU’D EXpECT FROm AN INDUSTRY LEADER.

OUR CUSTOm CASTING SOLUTIONS DELIVER QUALITY THAT YOU CAN DEpEND ON — WHEN YOU NEED IT, WHERE YOU NEED IT. OUR GLOBAL REACH, STATE-OF-THE-ART mANUFACTURING AND THE mOST COmpREHENSIVE QUALITY CONTROL SYSTEm IN THE INDUSTRY mAKE US THE TRUSTED CHOICE FOR ALL YOUR CASTING NEEDS. WE DELIVER ALL THE BENEFITS AND pERSONAL ATTENTION OF A SmALLER FOUNDRY, SUppORTED BY A GLOBAL ORGANIZATION WITH LARGE AND FLEXIBLE pRODUCTION CApACITY.

customers can expect the same high quality castings produced at our state-of-the-art foundries around the world. Recognized over the years for the quality of our castings and customer service, we provide the metallurgical integrity and refined finishing processes necessary to produce custom castings that will meet and exceed your expectations.

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INNOVATION AT EVERY STEp

Enkei Castalloy Ltd. has a long history for Innovation, a commitment to Quality, Delivery and Price Performance. For us, Aluminium castings is not just a business; it is our passion and our way of life. From sophisticated high performance cylinder heads to other critical engine components, Enkei Castalloy Limited is a leader in the Aluminium casting domain, supplying both raw castings as well as finished machine parts to USA, Europe and Asia.

Our state of the art plants are TS 16949 certified and employ the best talents in the die casting business. Technologically superior and highly process driven, Enkei Castalloy Limited supplies castings to the Automotive industry, extreme sports and both Tier 1 and Tier 2 companies. Enkei Castalloy Limited works closely with its customers from the development stage of the project to understand our customer needs, share our experience and knowl-edge to design and manufacture better products.

Based on “sophisticated technology, advanced equipments, reliable inspec-tion, considerate services”, we are able to provide premium quality products to our customers. Meanwhile, we have acquired a very good reputation in the market, and with our ongoing commitment, we will improve our service constantly.

THE ENKEI WAY OF LIFE

Enkei Castalloy Limited’s culture and the exceptional commitment of the workforce to the creation of high-quality products, solutions, services and innovations, as well as the optimum use of company know-how and systems, whereby equal attention is allocated to work safety.

Employee motivation is characterised by quality awareness, productivity and inventiveness. Their suggestions constitute a major factor in Enkei Castalloy Limited’s success and the interplay between these various factors provides a high degree of flexibility and the ability to deal with cus-tomer needs through individual consulting and targeted solutions, which extend from the choice of material up to final process-ing steps.

SCIENCE WITH A VISION

Despite global economic and environ-mental pressures, Enkei Castalloy Limited has continued to remain competitive because of the ownerships commitment to constantly improve and automate the foundry process. The latest technology has been implemented to assist in all phases of the foundry process. From simple sand compaction and moisture controls, to rough robotic deburring, to highly accurate finish machining, Enkei Castalloy Limited is one of the most technologically advanced foundries in the industry. This forward thinking ideology, coupled with a conserva-tive business approach, has allowed the company to remain price competitive while maintaining, and improving, the highest standards of product quality in the industry.

This will provide us with the opportunity to manufacture a high volume of aluminum castings for this exciting and forward think-ing industry. Because of the need for clean transportation systems, these energy effi cient products appear to be well positioned for great future growth.

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AIR TANK

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Operations & Business The Company continues to see a profitable growth in the financial year 2008–09. For the year ended March 31, 2009, the Company earned a total income of Rs. 17,963.22 million, as increase of 34.56% over the previous year of Rs. 13,348.97 million. As per the Consolidated Accounts the total income was Rs. 24,743.04 million, an increase of 32.79% over the previous year’s Rs. 18,633.30 million.

The net profit of the Company for the year increased to Rs. 1,743.37 million as compared to Rs. 1,476.14 million in the previous year. As per the Consolidated Accounts the net profit for the year was Rs. 1,804.78 million as compared to Rs. 1,519.05 million in 2007–2008.The detailed report on the activities undertaken by the Company have been dealt with in the Management Discussion and Analysis (MDA), forming part of this annual report.

Unclaimed shares 1,346 unclaimed shares,relating to company’s Follow on Public issue 2006, were transferred to a separate demat account of the Company, in compliance with Clause 5A of the Listing Agreement entered with the Stock Exchanges.

TO,THE mEmBERS,THE DIRECTORS ARE pLEASED TO SUBmIT THE ANNUAL REpORT OF THE COmpANY TOGETHER WITH THE AUDITED STATEmENT OF ACCOUNTS FOR THE YEAR ENDED mARCH 31, 2009.

Consolidated Standalone

Particulars 2008-09 2007-08 2008-09 2007-08

Total Income 24,743.04 18,633.30 17,963.22 13,348.97

Profit before depreciation & extraordinary items 3,565.91 2,482.23 2,417.11 1,909.45

Add: Extraordinary income -- -- -- -

Less: Depreciation 1,195.61 627.13 440.72 327.27

Profit before tax 2,370.30 1,855.10 1,976.39 1,582.18

Tax and other adjustments 565.52 336.05 233.02 106.04

Profit after tax 1,804.78 1,519.05 1,743.37 1,476.14

Add: Balance in Profit & Loss A/c 2,389.83 1,588.79 2,404.32 1,557.44

Amount available for Appropriation 4,194.61 3,107.84 4,147.69 3,033.58

Appropriation:

a. Proposed Dividend (interim & final) 104.41 89.05 104.41 89.05

b. Tax on Dividend 17.74 15.21 17.74 15.21

c. General Reserve 225.50 288.75 200.00 200.00

d. Contingent Reserve -- 325.00 -- 325.00

e. Balance carried forward 3,846.96 2,389.83 3,825.53 2,404.32

Dividend For the year under review, the Directors have declared an interim Dividend of Re. 0.80 per share on its Equity shares. In addition, the Directors have recommended a final Dividend of Re. 0.95 per share. The total Dividend payout for the year is Rs. 1.75 per share (previous year Rs. 1.50 per share).

Financial Highlights

DONEC BLANDIT CONGUE IACULIS. FUSCE IN LACINIA LOREm. pROIN EGET ELEIFEND ENIm. pELLENTESQUE ET ENIm NISI, UT SAGITTIS AUGUE. QUISQUE ID ARCU ARCU. pROIN HENDRERIT NULLA AT mAGNA pORTTITOR ULTRICIES. pELLENTESQUE HABITANT mORBI TRISTIQUE SENECTUS ET NETUS ET mALESUADA FAmES AC TURpIS EGESTAS.

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CORpORATE GOVERNANCE IS ESSENTIALLY ABOUT LEADERSHIp FOR EFFICIENCY, RESpONSIBILITY, LEADERSHIp WHICH IS TRANSpARENT AND ACCOUNTABLE.

Donec blandit congue iaculis. Fusce in lacinia lorem. Proin eget eleifend enim. Pellentesque et enim nisi, ut sagit-tis augue. Quisque id arcu arcu. Proin hendrerit nulla at magna porttitor ultricies. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas.

Integer vel arcu id dolor iaculis condimentum nec ut mauris. Praesent urna neque, mattis et eleifend eu, lobortis in lorem. Nulla ac nulla lacus. Duis ac neque urna. Pellentesque justo nunc, pellentesque at gravida ut, pellen-tesque eget ligula. Nullam

Donec blandit congue iaculis. Fusce in lacinia lorem. Proin eget eleifend enim. Pellentesque et enim nisi, ut sagit-tis augue. Quisque id arcu arcu. Proin hendrerit nulla at magna porttitor ultri-cies. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Integer vel arcu id dolor iaculis condimentum nec ut mauris. Praesent urna neque, mattis et eleifend eu, lobortis in lorem. Nulla ac nulla lacus. Duis ac neque urna. Pellentesque justo nunc, pellentesque at gravida ut, pellentesque

Consolidated Standalone

Particulars 2008-09 2007-08 2008-09 2007-08

Total Income 24,743.04 18,633.30 17,963.22 13,348.97

Profit before depreciation & extraordinary items 3,565.91 2,482.23 2,417.11 1,909.45

Add: Extraordinary income -- -- -- -

Less: Depreciation 1,195.61 627.13 440.72 327.27

Profit before tax 2,370.30 1,855.10 1,976.39 1,582.18

Tax and other adjustments 565.52 336.05 233.02 106.04

Profit after tax 1,804.78 1,519.05 1,743.37 1,476.14

Add: Balance in Profit & Loss A/c 2,389.83 1,588.79 2,404.32 1,557.44

Amount available for Appropriation 4,194.61 3,107.84 4,147.69 3,033.58

Appropriation:

a. Proposed Dividend (interim & final) 104.41 89.05 104.41 89.05

b. Tax on Dividend 17.74 15.21 17.74 15.21

c. General Reserve 225.50 288.75 200.00 200.00

d. Contingent Reserve -- 325.00 -- 325.00

e. Balance carried forward 3,846.96 2,389.83 3,825.53 2,404.32

eget ligula. Nullam Donec blandit congue iaculis. Fusce in lacinia lorem. Proin eget eleifend enim. Pellentesque et enim nisi, ut sagittis augue. Quisque id arcu arcu. Proin hendrerit nulla at magna porttitor ultricies.

Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Integer vel arcu id dolor iaculis condimentum nec ut mauris. Praesent urna neque, mattis et eleifend eu, lobortis in lorem. Nulla ac nulla lacus. Duis ac neque urna. Pellentesque justo nunc,

pellentesque at gravida ut, pellentesque eget ligula. Nullam Donec blandit congue iaculis. Fusce in lacinia lorem. Proin eget eleifend enim. Pellentesque et enim nisi, ut sagittis augue. Quisque id arcu arcu. Proin hendrerit nulla at magna porttitor ultricies. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Integer vel arcu id dolor iaculis condimentum nec ut mauris. Praesent urna neque, mattis et eleifend eu, lobortis in lorem.

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BOOK pOST/

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ENKEI CASTALLOY LImITEDREGISTERED OFFICE:GAT NO. 1426, VILLAGE SHIKRApUR,TALUKA SHIRUR, DISTRICT pUN 412 208/

Enkei Annual Report 2009-10

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Transcript of Enkei Annual Report 2009-10