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Perspective Management

SUBJECT: PERSPECTIVE MANAGEMENT

Group Members Sheldon Tejal Gavankar Dipti Gavande Jay Patel Pritam Mundarkar

Roll no. 51 52 53 54 55

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ACKNOWLEDGEMENT
We would like to express special thanks of gratitude to our Professor Mr. Govind Gadiyar who gave us the golden opportunity to do this wonderful project under the subject Perspective Management, which also helped us in doing a lot of Research and we came to know about so many new things. We are really thankful to him. Our thanks and appreciations also go to our colleague in developing the project and people who have willingly helped us out with their abilities.

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ACTION CONSTRUCTION EQUIPMENT LIMITED (ACE) is Indias leading material handling and construction equipment manufacturing company with over 50% market share in mobile cranes segment. In addition to Mobile Cranes, ACE also offers Mobile / Fixed Tower Cranes, Loaders, Vibratory Rollers, Truck Mounted Cranes, Crawler Cranes, Forklifts, Tractor and other Construction Equipment. ACE has a consolidated presence in all major Infrastructure, Construction, Heavy Engineering and Industrial Projects across the country.

Background
ACE is promoted and managed by professionals having rich experience in Construction Equipment domain. ACE is a 15 years old enterprise with its fullfledged state of the art production facilities based at industrial townships of Faridabad (Haryana) and Kashipur (Uttranchal). These Plants are fully equipped to produce around 12000 P.A. Construction Equipment and 6000 P.A. Tractors The workforce comprises of qualified professionals having undaunted commitment towards total quality management and our strength lies in standardization of class products. We are dedicated to provide our customers with latest technology Construction Equipment and efficient sales and product support aimed at satisfying their real needs. In our endeavour to expand our business and product offerings, we have also entered into marketing tie-ups with leading foreign companies which facilitate the availability of latest technology and machines from around the world.

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BUSINESS OF COMPANY The policy of responding with speed and expertise has been rewarded over the years in the form of repeat business resulting in constant growth making us one of the leading companies in the Mobile Cranes, Tower Cranes and Construction Equipment sector in the country. Another factor driving our growth has been the versatility of our equipment to satisfy a vast range of possible applications. Our equipment has been successfully used in many sectors like Infrastructure Construction, Power Projects, Ports & Shipyards, Dams, Metro Rail, Roads, Mining , Steel Industry, Engineering Industry, Railways, Cement, Petroleum, Defence, Chemicals & Fertilizer Plants, Warehousing, Logistics, Building Construction etc., to name a few.

VISION TO EXCEL
To be the leading company in cranes and construction equipment sector, with a global focus As said, this is a take-off phase not only from the Company's point of view but from economy's point of view as well, with the government emphasizing to achieve a growth rate in double figures, we are sure to capitalize on it. As discussed in the last Annual report that the Government plans a US $514.04 billion projected investment in infrastructure, with major emphasis on ports, airports, railways, road & highways, energy, pipelines etc., I am quite pleased to inform you that the Company is all set to take the advantage of the same and act as catalyst to the same. It cheers me to say that the Company has started making almost every equipment which is needed for Infrastructure development and is also increasing capacities for the same. As told in previous annual report regarding doubling of our capacity and installing a new plant each in Faridabad and Uttaranchal for Mobile Cranes, Company has started a new plant in Palwal nearby Faridabad, wherein the Company has already started making upto 500 Nos. Mobile Cranes and which can be utilized for production upto 800 Nos. equipment. The Company would soon be opening another plant at Kashipur, as a part of its expansion plans. The Company is planning to double its capacity every year for tractors for next - 3 years, this is to inform that the company is well-poised for the same and hopefully in FY 2011-12, construction equipment and tractor business would see unprecedented growth. The company also introduced indigenously manufactured Tower Cranes and Crawler Cranes in FY11 which received a very hearty response from the customers. Company also plans to add bigger models of Tower Cranes & Crawler Cranes in the near future.

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INDUSTRY STRUCTURE AND DEVELOPMENTS

The year under review was very challenging on many fronts. Inflationary pressures continued persistent during the year with adverse impact on our overheads. Steep depreciation in the Indian Rupee added to input costs. Liquidity conditions were very tight with persistent hardening of interest rates. Growth in Emerging & Developing economies also slowed from 7.5% in 2010 to 6.2% in 2011 with China, India and Brazil recording significant decline in growth rates. Capital flows into Emerging and Developing economies declined and remained volatile due to lower risk appetite caused by the financial uncertainty in the developed world which also led to sharp fluctuations in the exchange rates in many of these economies. The world economy is passing through a very tough phase and is expected to grow by 3.5% in 2012.Together with global economic changes, this affected inflows and investments into India, resulting in delayed and cancelled investments in business manufacturing and infrastructure segments. This also had an adverse impact on various projects and the developments of infrastructure in the country which led to lower of demand for construction equipment. GDP growth and Steel consumption two key indicators that have a bearing on the Industry's growth rates were clearly below expectations. GDP growth during this period was around 7% while Steel consumption relevant to our operating segments is estimated to have grown by less than 3% for the most part of 2011.

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Board Of Directors
Chairman & Managing Director Whole-time Director Executive Director Vijay Agarwal Mona Agarwal Sorab Agarwal Girish Narain Mehra Subhash Chander Verma Amar Singhal K C Agarwal Rajan Luthra Surbhi Garg

Independent Director Director Company Secretary Executive Director

ACE CLIENTS :
ACE Equipment has been endorsed by all the leading companies in India such as Reliance, L&T, BSES, BHEL, Punj Lloyd, Essar, Gammon, NCC, Gujarat Ambuja, IISCO, Simplex, Coal India, BSNL, Gannon Dunkerley, Bhushan, PSL, Oswal, ISPAT, IVRCL, Indian Railways, ABB, Adani, NTPC, IOCL, Shapoorji Pallonji, Alstom, NHPC, UB, ACC, Tata, Kalpataru, KEC, Krupp, Airport Authority of India, Ministry of Defence, HPCL, IPCL, Unitech, Welspun, Jindal, Aditya Birla Group, Areva, etc., to name a few.

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Reliance Punj Lloyd ACC Shapoorji Pallong Gannon Dunkerley KEC Gammon PSL NCC Simplex IVRCL

Tata Welspun Havell's Petron Essar ABG Hindalco Unitech Alston Reliance ADAG Kalpataru

Gujarat Ambuja Krupp Patel Engineering L&T Soma MPEB Airport Authority of India BHEL Bridge & Roof Coal India Limited Neyveli Lignite Corporation Chennai Port Trust COFMOW Indian Railways
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Ministry Defence NALCO NHPC

of

Nuclear Power Corporation Paradip Port Trust NTPC

Perspective Management

DRDO HVPNL HPCL

IISCO Bongaigon Refinery IFFCO

IOCL BSNL MRPL Numaligarh Refinery IPCL

ACE machines are also being exported to :

U.A.E. Saudi Arabia Qatar Bahrain Kuwait Iran Portugal and Australia

South Africa Kenya Nigeria Mozambique Ethiopia Algeria Libya

Libya Mauritius Madagascar Sri Lanka Nepal Bangladesh Bhutan

Malaysia Singapore New Zealand Sri Lanka Kazakhstan Romania

ACE Equipment Mobile cranes:

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Pick & Move Cranes

Crawler Cranes

Truck Mounted Cranes

Tower cranes:
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FTC Backhoe & Loaders:

MTC

Backhoe

Loaders

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Road constructions

Rollers

Graders

Forklifts

Forklifts

Tele handlers

Agricultural equipment

Tractors Balance sheet

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SOURCES OF FUNDS : Share Capital Reserves Total Total Shareholders Funds Secured Loans Unsecured Loans Total Debt Total Liabilities APPLICATION OF FUNDS : Gross Block Less : Accumulated Depreciation Less:Impairment of Assets Net Block Lease Adjustment Capital Work in Progress Investments Current Assets, Loans & Advances Inventories Sundry Debtors Cash and Bank Loans and Advances Total Current Assets

19.79 277.84 297.63 121.07 24.01 145.08 442.71 259.84 33.21 0.00 226.63 0.00 5.30 10.43 135.76 85.55 21.34 39.15 281.80 132.25 2.30 134.55 147.25 0.00 2.85 5.77 -2.92 386.69 70.94

18.58 243.70 262.28 71.52 0.00 71.52 333.80 174.48 22.49 0.00 151.99 0.00 3.37 7.65 120.95 83.14 23.98 46.03 274.10 139.71 13.20 152.91 121.19 0.00 0.47 1.55 -1.08 283.12 48.83

17.98 152.93 170.91 30.18 0.00 30.18 201.09 88.53 16.43 0.00 72.10 0.00 38.42 2.00 56.33 51.17 18.88 82.56 208.94 76.86 42.83 119.69 89.25 0.07 0.00 0.75 -0.75 201.09 22.47

17.98 138.97 156.95 39.14 0.00 39.14 196.09 80.54 11.42 0.00 69.12 0.00 0.05 1.09 50.86 52.58 17.77 91.66 212.87 58.14 28.20 86.34 126.53 0.08 0.00 0.78 -0.78 196.09 6.66

17.98 120.44 138.42 21.39 0.00 21.39 159.81 69.84 6.66 0.00 63.18 0.00 4.07 0.42 33.50 52.68 20.76 69.54 176.48 55.76 27.67 83.43 93.05 0.09 0.00 1.00 -1.00 159.81 16.36

17.98 92.57 110.55 8.06 0.00 8.06 118.61 32.04 3.90 0.00 28.14 0.00 0.53 0.01 25.01 39.26 39.84 51.18 155.29 43.97 21.08 65.05 90.24 0.00 0.00 0.31 -0.31 118.61 10.06

Less : Current Liabilities and Provisions

Current Liabilities Provisions Total Current Liabilities Net Current Assets Miscellaneous Expenses not written off Deferred Tax Assets Deferred Tax Liability Net Deferred Tax Total Assets Contingent Liabilities

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