Nissan Copper Ltd

8/14/2019 Nissan Copper Ltd

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Introduction

Nissan Copper Ltd. was established during 1989 with an objective tomanufacture Copper Tubes. The company started its first copper pipe unit atUmergaon in September, 1991. As on date, Nissan is manufacturing copper

rods/Section/flats, Copper Ingots/Billets Bars, Copper Wire Bars, Copper Strips and Copper Pipes catering to FMCG, OEMs and constructionindustry. In short, as on date, Nissan has complete plant to manufacturetubes starting from melting of scrap/Cathod. These copper components aremainly used in switchgears/panels, radiators, refrigeration, electricappliances, connectors, heat exchangers etc.

Nissan's high standard quality products have enabled it to accredit the ISO9001:2000. The company is supplying its products for the projects of wellknown companies in the Air conditioning and Refrigeration, Engineering &

Gas Application industry and few of them are Eletrotherm India Ltd., BlueStar Ltd., Voltas Ltd., Siemens Ltd., Hindustan Copper Ltd., NutechConstruction Pvt. Ltd. Etc. Over a period of 16 years, Nissan has establishedits reputation and reliability in the market. With long experience andaccumulated technology, Nissan ensures, all the products of the companyconfirms with all the major specification and customer requirements.(ASTM, DIN, BS, JIS, IS).


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Various types of products

1) Copper tubes for refrigerator and air conditioner 2) High quality copper tubes3) Copper tubes for general engineering purpose4) High conductivity copper rodes

5) 70/30 cupro nickel tubes6) 63/37 brass tubes7) 70/30 brass tubes8) Admirately brass tubes9) Aluminium brass tubes


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1) Copper tubes for refrigerator and air conditioner

These are mainly used for the refrigerator and air conditioner

2) High quality copper tubes

These are mainly used for 1) Gas Heaters And Hydraulic Lines & Oil Burners2) Hollow ( round, square, rectanglular and eliptical) ElectricalConductors in High voltage instalation, induction furnaces etc.


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3) Copper tubes for general engineering purpose

As per B.S. 2871 Part 2/72 C106near Equivalent specification I.S. 2501/77 DHP

These are mainly used for

Condensers, Evaporaters, Oil Burner Tubing, Steam, Water, Air andHydraulic lines, Automobiles Plumbing, Chemicals And Fertilizers, ThermalPower plant, Petrochemical and Oil Refinery.

As per B.S. 2871 Part 2/72 C107 near Equivalent specification I.S.2501/77 DHA

These are mainly used for

Heat Exchanger Tubes, Brewery Tubes, Gas lines, Vapour Lines, SanitationLines, Locomotive Tubes


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4) High conductivity copper rodes

As per B.S. 2874/69 C10 near Equivalent specification I.S. 613/64

These are mainly used for,Electrical Conductors, Switches, Terminals, Radiators, Cotter Pins, NailsRivets, etc. requiring high electrical and thermal conductivity

As per B.S. 2874/69 C106 near Equivalent specification

(I.S. 4171/67) Phosphorus deoxidized non arsenical Copper

These are mainly used for,Household and General Purposes


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5) 70/30 Cupro Nickel Tubes

CHARACTERISTICS :

A Copper Nickel alloy having small amount of iron and manganese toimprove corrosion resistance in high velocity (from 1 to about 4 mtrs/sec. )waters, including sea water. The alloy is relatively insensitive to stresscorrosion. It has good cold and hot working properties and is readilyweldable.

Sea Water:

a) Dissolved salts from 10000 ppm. b) Absence of abrasive suspended solids.

c) Polluted with H2S and Ammonia.

Permissible average velocity of water 3 4 meters/sec

These are mainly used for,High Capacity Power plant, Ship Building & Ship repairs, Heat Exchangersand Condensers, Distiller Tubes, Evaporaters


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DIRECTORS REPORT

REVIEW OF OPERATIONS :

Inspite of adverse Market Condition, your Company could maintain theSales Turnover of Rs.14489.16 Lacs as compared to Rs.14138.12 Lacsduring the preceding year, registering a growth of over 2%.The Profit after taxation has gone down to 213.44 as compared to 941.70 registering adownfall of over 12.47%, during the preceding year, because of inventorylosses & increase in financial charges on the borrowings of the company.

The Company has undertaken the modernization cum expansion plan of approximately 120 Crores. The existing plant situated at Umbergaon &Silvassa have performed satisfactorily during the year and plant at Silvassacontinue to be eligible for tax holidays pursuant to section 80 IB of theIncome Tax Act, 1956.

The operation of the Company is carried in a single segment i.e.manufacturing and marketing of Copper Products .

DIVIDEND:

Your Directors are pleased to recommend a dividend at 5% (Rs. 0.50 per equity share of Rs. 10/- each) for the financial year ended 31st March 2009.

The total cash outflow on account of equity dividend payments includingdistribution tax will be Rs. 85.15 Lacs (Previous year Rs. 85.15 Lacs).

INCREASE IN AUTHORIZED CAPITAL:

The shareholders of the Company, in the extra-ordinary general meetingheld on 14th May 2009, have increased the authorized share capital fromRs.25 crores to Rs.40 crores.

PREFERENTIAL ISSUE:To meet the capital expenditure your Company came out with the

preferential allotment of 70,00,000 (Seventy Lacs) equity share warrantsduring the year. However due to sudden collapse in the stock market &decrease in the Companies share prices, the independent investors &

promoters preferred to surrender their warrant entitlement.


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Accordingly the Company forfeited the equity share warrants & the entireamount paid on application was credited to the Securities Premium Accountand General Reserve as per the applicable Accounting Standards.

Subsequently on 14th May 2009 the Company issued 2,33,00,000 (TwoCrores and Thirty Three Lacs) fresh equity share warrants of Rs.10/-(Rupees

Ten) each at a premium of Rs.4/- (Rupees Four Only) each per sharewarrant to the Promoters and independent investors as per the SEBI(Disclosure & Investor Protection) Guidelines, 2000.

DIRECTORS:

The Board of a Company provides leadership and strategic guidance,objective judgment independent of management to the Company andexercise control over the Company, while remaining at all times accountableto the shareholders.

In accordance with the Provision of the Companies Act, 1956 and theArticles of Association of the Company, Mr. Shailesh Shah & Mr. AtulMardia retire by rotation at the ensuing Annual General Meeting and beingeligible, have offered themselves for re-appointment.

Mr. Sunil Ghorawat, Director, resigned from the Directorship on 2nd March2009.

Mr. Nitin Mehta, aged 46 Years, has been appointed as Additional Director of the Company and is looking after sales promotion and day to dayactivities. He has pursued his Textile Engineering & got associated withMahalaxmi Textile Industries, as Partner & has an experience of 22 years.The Board recommends his appointment as Director of the Company.

CORPORATE GOVERNANCE:

Your Company has complied with the mandatory provisions of on corporategovernance pursuant to clause 49 of the listing agreement with the stock exchanges, and a separate report on the same including the shareholdersinformation and auditors certificate on its compliance, forms a part of thisAnnual Report.

INSURANCE :

All the assets of the Company wherever necessary and to the extent requiredhave been insured.

Documents

Nissan Copper Ltd