Indal chairman and chief executive officer Chris Bark-Jones, in his review, had noted the challenges facing the company and its responses. "Our efforts are now focused towards one common goal: Enhancing shareholder value," he had written. The directors' report had noted the increase in net profit without mentioning the other income.

In the financial year to March 31, 1998, Indal's net profit of Rs 7.14 crore had included Rs 1.68 crore from the import licence sales and export incentives.

Total turnover for the latest year was Rs 1,163.99 crore, against Rs 1,173.29 crore in the previous year.

The depreciation of the Indian rupee cost Indal Rs 25.08 crore as exchange loss, of which Rs 3.71 crore was booked as cover loss and the balance Rs 21.37 crore was booked under fixed assets. During 1998-99,Indal's foreign exchange loans from banks came down Rs 170.93 crore from Rs 201.39 crore the previous year.

When contacted, Indal's vice-president (legal) and company secretary, Vijaya Sampath, said the company "...does have a forward cover on its forex loans up to nearly 50 per cent". She pointed out that the company repaid $11 million.

In the last two fiscals, the company lost Rs 45.13 crore on account of the depreciation of the Rupee.

Sampath pointed out that, "Indal....is a net exporter and the volume of foreign currency loans that it carries can be comfortably hedged against the total amount of net exports generated on a year to year basis".

Earnings in foreign currency for the year to March 31, 1999, dipped by 7 per cent to Rs 185.14 crore as compared to Rs 226.62 crore in the previous fiscal. However, foreign exchange outflow due to imports of aluminium and other raw materials increased by 4 per cent to Rs 142.14 crore to March 31, 1999, against Rs 136.67 crore in the previous year.

In thetussle between Alcan Aluminium Ltd of Canada and Sterlite Industries (India) Ltd, for majority stake in the Indian aluminium major, Indal incurred an expenditure of Rs 3 crore. This was paid as professional charges in connection with meetings, representations to various government agencies and financial institutions, affirming the company's position during the public bid.

According to Sampath, the expenditure was incurred for paying "certain professional agencies to seek financial and legal advice". Indal board had constituted a committee of independent directors to advise the board on the recommendation to be made to its shareholders.

Bark-Jones had noted in his review that the company, "...successfully countered the hostile takeover attempt by Sterlite Industries (India) Ltd..." Alcan Aluminium Ltd, which previously held close to 35 per cent stake in Indal, had upped its stake to over 54 per cent after thwarting the takeover attempts.

Indal's list of contingent liability include cess on bauxite,excise duty and power bills all of which are disputed aggregating to Rs 6.93 crore.

Apart from this, Rs 8.07 crore is disputed on account of excise duty, electricity charges, income tax which are considered untenable and not payable, in the opinion of its counsel.

During 1998-99, the company paid Rs 50 lakh under the Kar Vivadh Samadhan Scheme.