Mar 31, 2023
The Board of Directors are pleased to present your Company''s report on business and operations along with the audited financial statements (standalone and consolidated) for the financial year ended March 31,2023.
The financial results and performance of your Company for the year ended on March 31,2023 on Standalone and Consolidated Basis is summarized below:
Standalone Basis |
(Rs. in Lakhs |
|
Particulars |
2022-2023 |
2021-2022 |
Revenue from operations |
133525 |
92294 |
Profit for the year (before Interest, Depreciation & Tax) |
26497 |
22826 |
Less: |
||
Interest |
2597 |
1380 |
Depreciation |
3508 |
3077 |
Provision for Taxation (including deferred tax) |
3599 |
5649 |
Net Profit |
16793 |
12720 |
For the financial year 2022-23, your Company recorded a turnover of '' 133525 Lakhs and earned a net profit of '' 16793 Lakhs as compared to the previous year''s turnover of '' 92,294 Lakhs and net profit of '' 12720 Lakhs. Profit includes dividend received ('' 3723.69 Lakhs for FY 2022-23 and '' 2634.30 Lakhs for FY 202122) from M/s. Ngon Coffee Company Limited, wholly owned subsidiary of your Company.
Consolidated basis |
(Rs.in Lakhs) |
|
Particulars |
2022-2023 |
2021-2022 |
Revenue from operations |
207122 |
146203 |
Profit for the year (before Interest, Depreciation & Tax) |
40310 |
33516 |
Less: |
||
Interest |
3440 |
1636 |
Depreciation |
6370 |
5746 |
Provision for Taxation (including deferred tax) |
3612 |
5699 |
Net Profit |
26888 |
20435 |
For the financial year 2022-23, on a consolidated basis, your Company recorded a turnover of '' 207122 Lakhs and net profit of '' 26888 Lakhs as compared to previous year''s turnover of '' 146203 Lakhs and net profit of '' 20435 Lakhs.
Transfer of amount to General Reserve
No amount has been transferred to reserves during the year.
Your Company has spent an amount of '' 75.52 Crores towards its capital expenditure requirements.
Despite the increasing recessionary trends and unstable global political scenarios, your Company continued to grow at a healthy pace. This growth has been driven by all product types in our portfolio and has been spread across all geographies. During the year under review, your Company has secured the business of a few prestigious new customers. The inclusion of their brands in its portfolio has given further confidence to the innovation and R&D efforts. Capacity expansion at Ngon Coffee Company Limited, Vietnam has been completed and the additional capacity been operating at 50% utilization, driving the growth further.
The branded business in domestic market has been growing consistently and is firmly entrenched as one of the top 3 coffee brands in India. The brand has generated strong awareness among consumers, backed by an above-the-line marketing campaigns and below-the-line sampling activities. New products and variants were launched to cater to different market segments, including the launch of âContinental Greenbird'' products in the plant-based meat product category.
With an objective of gaining more penetration and access in European coffee markets with the help of locally popular brands, your Company has acquired Percol, Rocket Fuel, Plantation Wharf, The London Blend, Perk Up and Percol Fusion from Food Brands Group, a subsidiary of Lofbergs Group, UK. The agreement helps accelerate your Company''s strategy in expanding the manufacturing and distribution of FMCG products globally. Percol is a much-loved progressive brand, launched in 1987 which achieved several notable milestones and has stood for sustainability all along. The Percol product range currently comprises of Instant Coffee, Roast & Ground Coffee and Coffee Bags. Further, âROCKETFUEL'', one of the most successful brands, was co-developed by Food Brands Group along with CCL. Eventually Food Brands has created an exceptional brand position and reputation for premium products with an impressive level of product listings with the UK''s leading supermarket chains, thus providing your Company a readily available market for its various products.
The Global Coffee Market size is estimated at $126.17 billion in 2023, and it is expected to reach $158.89 billion by 2028, growing at a CAGR of 4.72% during the forecast period (2023-2028) (Mordor Intelligence).
According to the International Coffee Organisation (ICO), world coffee production was reported at 171.3 million bags in 2022-23, up from 168.5 million bags in coffee year 2021-22. On the other hand, world coffee consumption was at 178.5 million bags in 2022-23 up from 175.6 million bags in coffee year 2021-22. Due to consecutive years of shortfalls and a further shortfall anticipated in 2023-24, coffee prices have witnessed a sharp increase across all origins. In this backdrop, decelerating global economic growth rates coupled with sticky inflationary pressures will have a strong impact on coffee consumption for the upcoming year 2023-24.
Dividend
As you are aware, an interim dividend of '' 3/- per equity share (face value '' 2/- per share) was paid during the FY 2022-2023. Further your Board of Directors have recommended a final dividend of '' 2.5/- per equity share of '' 2/- each in their meeting held on May 16, 2023, which shall be subject to the approval of the Members in the forthcoming Annual General Meeting. If aggregated, total dividend for the financial year 2022-23 shall stand at '' 5.5/- per equity share. Pursuant to the Finance Act, 2020, dividend income is taxable in the hands of the shareholders w.e.f. April 1,2020 and your Company is required to deduct tax at source (TDS) from dividend paid to the Members at prescribed rates as per the Income-tax Act, 1961.
The record date for the purpose of payment of final dividend for the financial year ended March 31,2023 shall be August 11,2023.
As per 43A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 your Company has framed a Dividend Distribution Policy, which may be accessed at https://www.cclproducts.com/wp-content/ uploads/2021/07/Dividend-Distribution-Policy.pdf.
Demerger / Scheme of Arrangement
As you are aware, Continental Coffee Private Limited, a WOS of CCL Products (India) Limited has two divisions namely, Marketing and Distribution of Coffee and FMCG Products division (Coffee division) and the Food and Beverage Kiosks including âCoffee on Wheels'' (F & B division). During the year under review, CCL Products (India) Limited (the Resulting Company) and Continental Coffee Private Limited (the Demerged Company) entered into a Scheme of Arrangement whereby the coffee division of the Demerged Company shall be demerged into the Resulting Company, effective 01.10.2022, being the Appointed Date. Considering various advantages that would endure upon the proposed demerger, such as dedicated focus on their respective business, insulation from each other''s business risks, enhancement of shareholders value, greater economies of scale and efficient utilization of resources, the Board of Directors of both the said Companies, in their respective Meetings, have approved the said Scheme. Further, the respective secured creditors and unsecured creditors have also provided their consents / No Objections to the said Scheme.
Subsequently, both the said Companies have made applications with the Hon''ble National Company Law Tribunals (NCLT), seeking directions for / dispensations from convening Meetings of shareholders and creditors for their respective Companies. The Hon''ble NCLTs have allowed the applications and dispensed with the requirement of holding Meetings of shareholders and creditors. Further, requisite petitions have been filed with the respective NCLTs seeking their sanction to the proposed Scheme of Arrangement. The matter is listed for hearing and remains to be disposed off as on date.
Material Changes and Commitments
Save and except as discussed and stated in this Report, there were no material changes and commitments affecting the financial position of your Company that have occurred between the end of the Financial Year 2022-23 and the date of this report.
Share Capital
During the year under review, there was no change in the paid-up share capital of your Company. The paid-up Equity Share Capital of your Company as on March 31,2023 stood at '' 2660.56 Lakhs, comprising of 13,30,27,920 equity shares of face value of '' 2/- each. During the year under review, your Company has neither issued any shares with differential voting rights or sweat equity.
However, during the year under review, 264750 options have been granted pursuant to the CCL Employee Stock Option Scheme - 2022, which shall be convertible into equal number of shares, subject to fulfillment of certain conditions, as laid in the said Scheme.
Share based employee benefits are an effective mode aimed at promoting the culture of employee ownership, creating long term wealth in their hands which also helps the organisation to attract, motivate and retain the employees in the competitive environment and to reduce the employees retention rate in the organization.
With the said objective, your Company, pursuant to the resolutions passed by the Board of Directors on August 5, 2022, and by the Shareholders on August 30, 2022, adopted a Scheme under the name and style âCCL Employee Stock Option Scheme - 2022â (the CCL Scheme 2022/ the Scheme) for the eventual benefits of its employees and the employees of its subsidiaries. A Trust under the name and style âCCL Employees Trustâ has been formed in this regard, inter alia, for the purpose of administration of the Scheme. Your Company, pursuant to the said Scheme may grant upto a maximum of 4 Lakhs options convertible into equal number of Equity shares of '' 2/- each, in one or more tranches. Upon exercise and payment of the exercise price, the option holder will be entitled to one Equity Share per employee stock option.
During the year, 264750 options have been granted to the employees of your Company / employees of subsidiary(ies).
Further, information pursuant to Section 62 of the Companies Act, 2013 read with Rules made thereunder and details of the Scheme as specified in Part F of Schedule - I of SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 are provided as Annexure I to this Report and also available on Company''s website and may be accessed at https://www.cclproducts.com/wp-content/uploads/2023/07/ESQP-disclosure-pursuant-to-SEBI-SBEB-Regulations-2021.pdf
Further, your Company has framed a Policy with respect to the death or permanent incapacity of an employee, subject to compliance with applicable laws and the same may be accessed at https://www.cclproducts.com/ wp-content/uploads/2023/07/Policv-for-death-and-disablement-as-per-CCL-ESQP-Scheme-2022.pdf
Further, it is confirmed that the Scheme is in compliance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and during the year under review there were no material changes in the Scheme.
Certificate from M/s. P.S. Rao & Associates, Company Secretaries, Secretarial Auditors of your Company confirming that the scheme has been implemented in accordance with the SEBI Regulations will be placed at the forthcoming Annual General Meeting and on the website of your Company for inspection by the members.
The subsidiary companies situated in India and outside India continue to contribute to the business and overall performance of your Company. As of March 31,2023, your Company has the following wholly owned subsidiaries:
1. Jayanti Pte Limited (Singapore)
2. Continental Coffee Sa (Switzerland)
3. Ngon Coffee Company Limited (Vietnam)
4. Continental Coffee Private Limited (India)
5. CCL Food and Beverages Private Limited (India)
(incorporated during the FY 2022-23)
Performance and contribution of each of the Subsidiaries
As per Rule 8 of Companies (Accounts) Rules, 2014, a report on the financial performance of the subsidiary companies during the financial year ended March 31,2023 is summarized below:
i. Jayanti Pte Limited (Singapore)
Jayanti Pte Limited is a wholly owned subsidiary of your Company incorporated in Singapore to act as an investment vehicle for your Company, hence no operational performance is reported.
ii. Continental Coffee SA (Switzerland)
Continental Coffee SA is a wholly owned subsidiary of your Company incorporated in Switzerland. This is an agglomeration and packing unit. Operational performance of the Company, in brief is as hereunder:
('' in Lakhs] |
||
Particulars |
2022-2023 |
2021-2022 |
Revenue from operations |
29642 |
21807 |
Profit for the year (before Interest, Depreciation & Tax) |
1461 |
905 |
Less: |
||
Interest |
110 |
79 |
Depreciation |
105 |
90 |
Provision for Taxation |
38 |
31 |
Net Profit |
1208 |
705 |
iii. Ngon Coffee Company Limited (Vietnam)
Ngon Coffee Company Limited is a wholly owned subsidiary of your Company incorporated in Vietnam. This is an instant coffee manufacturing unit. Operational performance of the Company, in brief, is hereunder:
('' in Lakhs) |
||
Particulars |
2022-2023 |
2021-2022 |
Revenue from operations |
64724 |
45125 |
Profit for the year (before Interest, Depreciation & Tax) |
17655 |
12928 |
Less: |
||
Interest |
547 |
81 |
Depreciation |
2498 |
2443 |
Provision for Taxation |
- |
- |
Net Profit |
14610 |
10404 |
iv. Continental Coffee Private Limited
Continental Coffee Private Limited is a wholly owned subsidiary of your Company, incorporated in India, established with an objective of promoting instant coffee brands of your Company in the domestic market. It has two divisions namely, Marketing and Distribution of Coffee and FMCG Products division (Coffee division) and the Food and Beverage Kiosks including âCoffee on Wheels'' (F & B division). As stated elsewhere in this Report, it is proposed to demerge the Coffee division into your Company. The operational performance of
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('' in Lakhs) |
||
Particulars |
2022-2023 |
2021-2022 |
Revenue from operations |
20885 |
17376 |
Profit for the year (before Interest, Depreciation & Tax) |
(1281) |
(319) |
Less: |
||
Interest |
305 |
239 |
Depreciation |
260 |
136 |
Provision for Taxation |
6 |
14 |
Net Profit/Loss |
(1852) |
(708) |
('' in Lakhs) |
|
Particulars |
2022-2023 |
Revenue from operations |
- |
Profit for the year (before Interest, Depreciation & Tax) |
(11.08) |
Less: |
|
Interest |
0.56 |
Depreciation and other write offs |
|
Provision for Taxation |
- |
Net Profit/Loss |
(11.64) |
v. CCL Food and Beverages Private Limited
CCL Food and Beverages Private Limited is a wholly owned subsidiary of your Company, incorporated in India on September 07, 2022. The Company was incorporated with an objective of augmenting the current set of capacities of your Company. The Company is yet to commence its commercial operations. The performance of the Company, in brief, is hereunder:
The statement containing the salient features of the financial statement of subsidiaries as per sub-section (3) of Section 129 of the Companies Act, 2013 in Form AOC-1 is annexed as Annexure II to this report._
Consolidated Financial Statements
The Consolidated Financial Statements are prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of the Companies Act, 2013 and other relevant provisions of the Companies Act, 2013.
The Consolidated Financial Statements for the financial year ended March 31,2023 forms part of the Annual Report.
Further, we undertake that the annual accounts of the subsidiary companies and the related detailed information will be made available to the shareholders seeking such information at any point of time. Further, the annual accounts of the subsidiary companies shall also be kept open for inspection by any shareholder at our Registered office and that of the subsidiary Companies.
Further, pursuant to the provisions of Section 136 of the Act, the financial statements of your Company, consolidated financial statements along with relevant documents and separate audited financial statements in respect of subsidiaries, are available on the website of your Company at www.cclproducts.com.
The policy for determining material subsidiaries is available on the website of your Company which may be accessed at: https://www.cclproducts.com/wp-content/uploads/2021/07/policv-on-material-subsidiarv.pdf
Companies which have become or ceased to be the Subsidiaries, joint ventures or associate companies during the year:
Your Company does not have any associate or joint venture Company falling within the definition under the Companies Act, 2013. During the year under report, your Company has incorporated a wholly owned subsidiary under the name and style âCCL Food and Beverages Private Limitedâ on September 7, 2022. There was no other change in the list of subsidiaries of your Company.
Listing of Equity Shares
Your Company''s equity shares are listed on the following Stock Exchanges:
(i) BSE Limited, Phiroze JeeJeebhoy Towers, Dalal Street, Mumbai- 400001, Maharashtra, India; and
(ii) National Stock Exchange of India Limited, Exchange Plaza, Floor 5, Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra, India.
Your Company has paid the Annual Listing Fees to the said Stock Exchanges for the Financial Year 2023-24. Corporate Social Responsibility
Your Company, as part of its Corporate Social Responsibility (CSR) initiative, undertook and supported activities like contributions to old age homes, orphanages, promotion of education and health care activities, facilitating infrastructural and rural development to the identified rural areas in Anantapur District and also around the factories situated at Guntur District and Tirupati District of Andhra Pradesh including setting up of R.O plants for providing safe drinking water and also environmental preservation in rural areas around Hyderabad and Tirupati.
Your Company has a Policy on Corporate Social Responsibility (CSR). The Annual Report on CSR activities as per the Companies (Corporate Social Responsibility Policy) Rules, 2014 is annexed herewith as Annexure III to this report. The CSR Policy is posted on the website of your Company and the web link is https://www.cclproducts.com/wp-content/uploads/2021/07/csr-policy.pdf
Further, pursuant to the provisions of Section 135 of the Companies Act, 2013 your Company was required to spend an amount of W 461.63 Lakhs towards CSR Activities.
Your management feels proud to mention that for the financial year ended March 31,2023, your Company has spent a total amount of W 479.26 Lakhs towards various CSR activities which was in excess of its CSR Obligation under the Act.
Internal Control Systems & their adequacy
The Board has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to your Company''s policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial disclosures.
Statutory Auditors & their Report
M/s. Ramanatham & Rao, Chartered Accountants (FRN: 2934S) who were appointed as the Statutory Auditors of your Company at the 61st Annual General Meeting held on August 30, 2022 for a period of 5 years shall hold their office till the conclusion of 66th Annual General Meeting. The Statutory Auditors have confirmed that they are not disqualified from continuing as Auditors of your Company.
The standalone and the consolidated financial statements of your Company have been prepared in accordance with Ind AS notified under Section 133 of the Act. The Statutory Auditor''s reports do not contain any qualifications, reservations, adverse remarks or disclaimers.
The Statutory Auditors were present in the last AGM held on August 30, 2022.
The Board of Directors, based on the recommendation of the Audit Committee have re-appointed M/s. Ramesh & Co., Chartered Accountants, Hyderabad, as the Internal Auditors of your Company. The Internal Auditors are submitting their reports on quarterly basis.
In accordance with the provisions of Section 148(3) and other applicable provisions, if any, of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014, the Board of Directors, upon the recommendation of Audit Committee has appointed M/s. M P R & Associates, Cost Accountants, Hyderabad as the Cost Auditors of your Company to carry out the cost audit of the products manufactured by your Company during the financial year 2023-24 at a remuneration of W 200000/-. The remuneration payable to the cost auditor is required to be placed before the members in the general meeting for their ratification. Accordingly, a resolution seeking members ratification for the remuneration payable to M/s. M P R & Associates, Cost Accountants, is included in the Notice convening the Annual General Meeting. Your Company is maintaining cost records as specified by the Central Government under Section 148(1) of the Companies Act, 2013.
A Certificate from M/s. M P R & Associates, Cost Accountants, has been received to the effect that their appointment as Cost Auditor of your Company is in accordance with the limits specified under Section 141 of the Companies Act, 2013 and the Rules framed thereunder.
Reporting of Frauds
During the year under review, there was no instance of fraud, which required the Statutory Auditors to report to the Audit Committee and/or Board under Section 143(12) of the Companies Act, 2013 and the rules made thereunder.
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, your Company appointed M/s. P.S. Rao & Associates, Company Secretaries (Peer Review Number: 710/2020) to undertake the Secretarial Audit of your Company for the FY 2022-23. The Secretarial Audit Report issued by M/s. P.S. Rao & Associates for the FY 2022-23 is enclosed as Annexure IVto this Report.
The said Secretarial Audit Report does not contain any observation or qualification or reservation or adverse remark or disclaimer except as regards constitution of Nomination and Remuneration Committee during the period between 01.01.2022 to 05.08.2022, which did not meet the requirements of minimum 2/3rd Directors being Independent. It is clarified that the alleged non-compliance was purely a mathematical error, occurred on account of misinterpretation as regards rounding off to the nearest whole number. However, upon realising the mistake, your Company paid the prescribed fine and undertook requisite reporting and other compliances in accordance with the Circular No. SeBI/HO/CFD/CMD/CIR/P/2020/12, issued by SEBI.
Further, the Secretarial Audit Report of the material unlisted subsidiary of your Company, i.e., Continental Coffee Private Limited, as per Regulation 24(A) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is enclosed as Annexure IVA to this Report.
Compliance with Secretarial Standards
Your Company has devised proper systems to ensure compliance with the provisions of all applicable Secretarial Standards issued by the Institute of Company Secretaries of India and that such systems are adequate and operating effectively. During the year under review, your Company has complied with the Secretarial Standards issued by the Institute of Company Secretaries of India.
Directors & Key Managerial Personnel
The Board of directors of your Company has an optimum combination of Executive, Non-Executive and Independent Directors including Woman Directors.
In accordance with the provisions of Section 152 of the Companies Act, 2013, Sri B. Mohan Krishna and Dr. Krishnanand Lanka, the Directors of your Company retired by rotation in the 61st AGM and were reappointed thereat.
Further, Sri K. K. Sarma and Smt. Challa Shantha Prasad, Non-Executive Directors of your Company retire by rotation in the ensuing AGM and being eligible, have offered themselves for reappointment. The Board of Directors recommend their reappointment. Further, it may be noted that Sri K. K. Sarma is aged 73 years and if reappointed in the ensuing AGM, attains the age of 75 years during his forthcoming tenure. Hence, pursuant to Regulation 17(1A) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, consent of the members is sought by way of Special Resolution as proposed in the Notice attached hereto.
ii. Reappointments (Non-Executive / Independent Directors)
Your Board of Directors draw your kind attention to the following changes / reappointments that took place in the office of Non-Executive / Independent Directors of your Company, which are already detailed in the Statement to the Notice of the AGM attached hereto.
⢠appointment of Sri. Durga Prasad Kode (DIN 07946821) as an Additional Director in the capacity of Independent category in the Board Meeting held on July 14, 2023. If approved by the members in their ensuing AGM, Sri. Durga Prasad Kode shall hold office of Independent Director for another term of 5 years, i.e., upto July 13, 2028. Corresponding resolution forms part of Notice attached hereto.
⢠the current tenure of Smt. Kulsoom Noor Saifullah (DIN 02544686) as an Independent Director of the Company expires on February 13, 2024. In view of the said, resolution proposing her reappointment to the office of Independent Director for another term of 5 years, effective February 14, 2024 forms part of Notice attached hereto.
⢠the current tenure of Sri K. V. Chowdary (DIN 08485334) as an Independent Director of the Company expires on June 24, 2024. In view of the said, resolution proposing his reappointment to the office of Independent Director for another term of 5 years, effective June 25, 2024 forms part of Notice attached hereto.
⢠appointment of Dr. Krishnanand Lanka (DIN 07576368) as an Additional Director in the capacity of Independent category in the Board Meeting held on July 14,2023, who stepped down from his office of Non-Executive Director effective July 13, 2023. If approved by the members in their ensuing AGM, Dr. Krishnanand Lanka shall hold office of Independent Director upto July 13, 2028. Corresponding resolution forms part of Notice attached hereto.
⢠appointment of Sri Satyavada Venkata Ramachandra Rao (DIN 01869061) as an Additional Director in the capacity of Non-Executive Director in the Board Meeting held on July 14, 2023. If appointed by the members in their ensuing AGM, Sri Satyavada Venkata Ramachandra Rao shall hold office of NonExecutive Director of the Company, liable to retire by rotation.
iii. Reappointments (Whole Time Directors)
Your Board of Directors draw your kind attention to the following changes / reappointments that took place in the office of Whole Time Directors of your Company, which are already detailed in the Statement to the Notice of the AGM attached hereto.
⢠approved the reappointment of Sri Challa Srishant (DIN: 00016035) to the office of Managing Director for another term of 5 years, effective February 14, 2024, subject to the approval of members in their ensuing AGM.
⢠approved the reappointment of Sri B. Mohan Krishna (DIN: 03053172) to the office of Whole Time Director designated as an Executive Director, effective February 14, 2024, subject to the approval of members in their ensuing AGM.
In the opinion of the Board, all the Independent Directors of your Company (existing and proposed) possess integrity, experience, expertise, and the requisite proficiency required under all applicable laws and the policies of your Company.
All the Independent Directors have given declarations stating that they meet the criteria of independence as provided in Section 149(6) of the Companies Act, 2013 along with Rules framed thereunder and Regulation 16(1)(b) of the Listing Regulations. There has been no change in the circumstances affecting their existing status as independent directors of your Company.
In terms of Section 150 of the Companies Act, 2013 read with Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014, as amended, all the Independent Directors of your Company have got their names included in the data bank of Independent Directors maintained with the Indian Institute of Corporate Affairs.
Further, during the year under review, Sri Bharat Kumar Mahendrabhai Vyas (DIN 00043804), who was appointed as an Additional Director (Independent Director) of your Company effective December 02, 2022, resigned from his office effective January 18, 2023.
iv. Directors and Officers Insurance (âD&Oâ)
As per the requirements of Regulation 25(10) of the SEBI Listing Regulations, your Company has taken D&O for all its directors and members of the Senior Management.
Six meetings of the Board of Directors were held during the year. The details of the Board and Committee meetings and Independent Directors'' meeting are given in the Corporate Governance Report which forms part of this Annual Report.
Your Company has also adopted Governance Guidelines on Board Effectiveness which comprises the aspects relating to composition of board and committees, terms of directors, nomination, appointment, development of directors, code of conduct, effectiveness of board and committees, review and their mandates.
The Board has in place a duly constituted Audit Committee as per the provisions of Section 177 of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The composition, attendance, powers and role of the Audit Committee are included in the Corporate Governance Report which forms part of this Annual Report. All the recommendations made by the Audit Committee were accepted by the Board of Directors.
Apart from the Audit Committee, the Board has also constituted the following committees, in accordance with the provisions of Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as applicable, which are in place and discharging their functions as per terms of reference entrusted by the Board:
? Nomination and Remuneration Committee / Compensation Committee
? Stakeholders Relationship Committee
? Corporate Social Responsibility Committee
? Risk Management Committee
? Management Committee
The composition, attendance, powers and role of the Committees are included in the Corporate Governance Report which forms part of this Annual Report.
Policy on Directorâs Appointment and Remuneration and other matters (a) Procedure for Nomination and Appointment of Directors:
The Nomination and Remuneration Committee has been formed in compliance with Regulation 19 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and pursuant to Section 178 of the Companies Act, 2013. The main object of this Committee is to identify persons who are qualified to become directors and who may be appointed in senior management of your Company, recommend to the Board their appointment and removal and shall carry out evaluation of every Director''s performance, recommend the remuneration package of both the Executive and the Non-Executive Directors on the Board and also the remuneration of Senior Management, one level below the Board. The Committee reviews the remuneration package payable to Executive Director(s) makes appropriate recommendations to the Board and acts in terms of reference of the Board from time to time.
On the recommendation of the Nomination and Remuneration Committee, the Board has adopted and framed a Remuneration Policy for the Directors, Key Managerial Personnel and other Employees pursuant to the provisions of the Companies Act, 2013 and SEBI Listing Regulations and the same is enclosed as Annexure V and is posted on the website of your Company which may be accessed at https://www.cclproducts.com/ wp-content/uploads/2023/07/Remuneration-Policy.pdf
The remuneration determined for Executive/Non-Executive Directors is subject to the recommendation of the Nomination and Remuneration Committee and approval of the Board of Directors. The Non-Executive Directors are compensated by way of profit- sharing Commission and are entitled to sitting fees for the Board/ Committee Meetings. The remuneration paid to Directors, Key Managerial Personnel and all other employees is in accordance with the Remuneration Policy of your Company.
Neither the Managing Director nor any Whole Time Director of your Company received any remuneration or commission from any of its Subsidiaries. However it is proposed to pay commission to Sri Challa Srishant, Managing Director and Sri B. Mohan Krishna, Executive Director from Ngon Coffee Company Limited, Vietnam for the financial year 2023-24 as proposed in the notice attached hereto.
Brief terms of Nomination and Remuneration Policy and other matters provided in Section 178(3) of the Act and Regulation 19 of SEBI Listing Regulations have been disclosed in the Corporate Governance Report, which forms part of this Report.
(b) Familiarization/ Orientation program for Independent Directors:
A formal familiarization program was conducted about the amendments in the Companies Act, Rules prescribed thereunder, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and all other applicable laws to your Company and all the directors were also apprised about the business activities of your Company.
It is the general practice of your Company to notify the changes in all the applicable laws to the Board of Directors, from time to time. The objective of the program is to familiarize the Independent Directors with the business of your Company, industry in which your Company operates, business model, challenges etc. through various programs such as interaction with experts within your Company, meetings with our business leads and functional heads on a regular basis.
The details of such familiarization programs for Independent Directors are posted on the website of your Company and web link is https://www.cclproducts.com/wp-content/uploads/2021/07/Familiarization-programme-for-Independent-Directors.pdf
Annual Evaluation of Board Performance and Performance of its Committees and Individual Directors
Pursuant to the provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out the annual performance evaluation of its own performance, the directors individually as well as the evaluation of the working of its Audit, Nomination and Remuneration and all other Committees.
A structured questionnaire was prepared after taking into consideration inputs received from the Directors, covering various aspects of the Board''s functioning such as adequacy of the composition of the Board and its Committees, Board culture, execution and performance of specific duties, obligations and governance.
A separate exercise was carried out to evaluate the performance of individual Directors including the Chairman of the Board, who were evaluated on parameters such as level of engagement and contribution, independence of judgment, safeguarding the interest of your Company and its minority shareholders etc. The performance evaluation of the Independent Directors was carried out by the entire Board, excluding the Independent Director being evaluated.
In a separate meeting of Independent Directors, performance of Non-Independent Directors, the Board as a whole and the Chairman of your Company was evaluated, taking into account the views of the Executive Director and Non-Executive Directors who also reviewed the performance of the Secretarial Department. The Nomination and Remuneration Committee reviewed the performance of individual directors on the basis of criteria such as the contribution of the individual director to the Board and Committee meetings like preparedness on the issues to be discussed, meaningful and constructive contribution and inputs in meetings, etc.
The Directors expressed their satisfaction with the evaluation process.
Particulars of Loans, Guarantees and Investments
Details of Loans, Guarantees and Investments made during the Financial Year ended March 31,2023, covered under the provisions of Section 186 of the Companies Act, 2013 read with Companies (Meetings of Board and its Powers) Rules, 2014, are given in the notes to the Financial Statements.
Your Company has neither accepted nor renewed any fixed deposits from the public within the meaning of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014 and as such, no principal or interest was outstanding as on the date of the Balance sheet.
Directorsâ Responsibility Statement
Pursuant to Section 134 (5) of the Companies Act, 2013, your Directors confirm that to the best of their knowledge and belief and according to the information and explanation obtained by them,
i) In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;
ii) Such accounting policies as mentioned in the notes to the financial statements have been selected and applied consistently and judgments and estimates that are reasonable and prudent made so as to give a true and fair view of the state of affairs of your company at the end of the financial year 2022-23 and of the profit or loss of your company for that period;
iii) 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 your company and for preventing and detecting fraud and other irregularities;
iv) The annual accounts for the year 2022-23 have been prepared on a going concern basis.
v) Proper internal financial controls were in place and that the financial controls were adequate and were operating effectively.
vi) Systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.
Vigil Mechanism / Whistle Blower Policy
The Vigil Mechanism as envisaged in the Companies Act, 2013, the Rules prescribed thereunder and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is implemented through your Company''s Whistle Blower Policy, to deal with instance of fraud and mismanagement, if any in the Group. The Policy provides for adequate safeguards against victimization of employees who avail the mechanism and also provides for direct access to the Chairman of the Audit Committee. The details of the Policy are explained in the Corporate Governance Report and also posted on the_website of your Company and the web link is https:// www.cclproducts.com/wp-content/uploads/2021/07/whistle-blower-policy.pdf
The Whistle Blower Policy aims for conducting the affairs in a fair and transparent manner by adopting highest standards of professionalism, honesty, integrity and ethical behavior. All the employees of your Company are covered under the Whistle Blower Policy.
Your Company has constituted a Risk Management Committee and formulated a policy on the Risk Management in accordance with the Companies Act, 2013 and Regulation 21 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 to frame, implement and monitor the risk management plan for your Company. The Committee is responsible for monitoring and reviewing the risk management plan and ensuring its effectiveness. The Audit Committee has additional oversight in the area of financial risks and controls. The major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis. Furthermore, your Company has set up a robust internal audit function which reviews and ensures sustained effectiveness of internal financial controls by adopting a systematic approach to its work. The details of Committee and its terms of reference are set out in the Corporate Governance Report forming part of the Board''s Report. The Risk Management Policy of your Company is posted on the website of your Company and the web link is https://www.cclproducts.com/wp-content/uploads/2021/07/risk-management-policv.pdf
Related Party Transactions and particulars of contracts or arrangements with related parties
All related party transactions that were entered into during the financial year were on an arm''s length basis and were in the ordinary course of business. There are no materially significant related party transactions made by your Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of your Company at large.
All related party transactions are placed before the Audit Committee and also before the Board for approval. Prior omnibus approval of the Audit Committee is obtained as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the transactions which are foreseeable and repetitive in nature. Your Company has developed a Policy on Related Party Transactions for the purpose of identification and monitoring of such transactions.
None of the transactions with related parties falls under the scope of section 188(1) of the Companies Act, 2013. However, as a matter of disclosure, particulars of contracts or arrangements with related parties are provided in Annexure VI in Form AOC-2 pursuant to section 134(3)(h) of the Act read with rule 8(2) of the Companies (Accounts) Rules, 2014 and forms part of this report.
The policy on materiality of Related Party Transactions and dealings in related party transactions, as approved by the Board is uploaded on the website of your Company and the web link is: https://www.cclproducts.com/wp-content/uploads/2023/07/Policv-on-Related-Partv-Transactions.pdf
Disclosure under Regulation 34(3) read with Schedule V of the Listing RegulationsRelated Party disclosures as per Schedule V of the Listing Regulations
S.No |
In the accounts of |
Particulars |
Amount at the year ended 2022-23 |
Maximum amount of Loans/Advances/ Investments outstanding during the year 2022-23 |
1 |
CCL Products (India) Limited (Holding Company) |
(i) Loans/advances to subsidiaries -Continental Coffee Private Limited (Wholly owned subsidiary) - CCL Food and Beverages Private Limited (Wholly owned subsidiary) |
'' 9.98 Crores (including interest) '' 22.04 Crores |
'' 23.43 Crores (including interest) '' 22.04 Crores |
(ii) Loans/advances to associates |
NA |
NA |
||
(iii) Loans/advances to firms/ companies in which Directors are interested |
NA |
NA |
||
2 |
CCL Products (India) Limited (Holding Company) |
Investment by the Loanee in the shares of parent company/ subsidiary company when the company has made a loan or advance |
NA |
NA |
Policy on Material Subsidiaries
The Policy on Material Subsidiaries as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as approved by the Board is uploaded on the website of your Company which may be accessed at https:// www.cclproducts.com/wp-content/uploads/2021/07/policv-on-material-subsidiarv.pdf.
Annual Return
In accordance with Section 134 (3) (a) of the Companies Act, 2013, a copy of Annual Return in the prescribed format i.e. Form MGT-7 is placed on the website of your Company which may be accessed at https://www. cclproducts.com/wp-content/uploads/2023/07/MGT-7-2022-23.pdf
Management Discussion & Analysis
Pursuant to the provisions of Regulation 34(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 a report on Management Discussion & Analysis is herewith annexed as Annexure VII to this report.
Change in the nature of business
There has been no change in the nature of business of your Company during the year under review. Transfer of amounts to Investor Education and Protection Fund
Pursuant to the provisions of Section 124 (5) of the Companies Act, 2013, an amount of '' 7,13,145/- pertaining to financial year 2014-15, which remained unclaimed for a period of seven years has been transferred by your Company to the Investor Education and Protection Fund established by the Central Government during the financial year 2022-23.
Transfer of unclaimed shares to Investor Education and Protection Fund
Pursuant to the provisions of Section 124 of the Companies Act, 2013, all shares in respect of which dividend has not been paid or claimed for seven consecutive years or more upto and including the financial year 201415 were transferred by your Company to Investor Education and Protection Fund during the financial year 2022-23 and the statement containing such details as may be prescribed is placed on the website of your Company. Information in respect of unclaimed dividend and due dates for transfer to the IEPF are given below:
Sl |
For the Financial year ended |
Percentage of Dividend |
Date of Declaration |
Due date for transfer to IEPF |
1 |
2015-16 (Final) |
50% |
26.09.2016 |
30.11.2023 |
2 |
2016-17 (Final) |
125% |
11.07.2017 |
14.09.2024 |
3 |
2017-18 (Final) |
125% |
14.07.2018 |
17.09.2025 |
4 |
2018-19 (Interim dividend) |
87.5% |
23.03.2019 |
27.05.2026 |
5 |
2018-19 (Final) |
87.5% |
07.08.2019 |
11.10.2026 |
6 |
2019-20 (First interim dividend) |
100% |
27.01.2020 |
31.03.2027 |
7 |
2019-20 (Second interim dividend) |
150% |
26.02.2020 |
30.04.2027 |
8 |
2020-21 (Interim dividend) |
100% |
20.10.2020 |
24.12.2027 |
9 |
2020-21 (Final dividend) |
100% |
26.08.2021 |
30.10.2028 |
10 |
2021-22 (Interim dividend) |
150% |
19.01.2022 |
23.03.2029 |
11 |
2021-22 (Final dividend) |
100% |
30.08.2022 |
31.10.2029 |
12 |
2022-23 (Interim dividend) |
150% |
18.01.2023 |
22.03.2030 |
All properties and insurable interests of your Company have been fully insured.
Particulars of Employees and Remuneration
The information required pursuant to Section 197 of the Companies Act, read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of your Company is herewith annexed as Annexure VIII to this report.
Corporate Governance
Your Company has been making every endeavor to bring more transparency in the conduct of its business. As per the requirements of Regulation 34 (3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a report on Corporate Governance for the year 2022-23 and a Certificate from M/s. P S Rao & Associates, Practising Company Secretaries is furnished which forms a part of this Annual Report.
Human Resources
Your Company considers its Human Resources as the key to achieve its objectives. Keeping this in view, your Company takes utmost care to attract and retain quality employees. The employees are sufficiently empowered and such work environment propels them to achieve higher levels of performance. The unflinching commitment of the employees is the driving force behind your Company''s vision. Your Company appreciates the spirit of its dedicated employees.
Policy on Prevention, Prohibition and Redressal of Sexual Harassment at Work place
Your Company strongly supports the rights of all its employees to work in an environment, free from all forms of harassment. Your Company has adopted a Policy on Prevention, Prohibition and Redressal of Sexual Harassment at workplace as per the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made thereunder. The policy aims to provide protection to Employees at the workplace and prevent and redress complaints of sexual harassment and for matters connected or incidental thereto, with the objective of providing a safe working environment, where Employees feel secure. Your Company has also constituted an Internal Complaints Committee, known as Anti Sexual Harassment Committee to address the concerns and complaints of sexual harassment and to recommend appropriate action.
Your Company has not received any complaint on sexual harassment during the year.
Energy conservation, technology absorption and foreign exchange earnings and outgo
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of The Companies (Accounts) Rules, 2014, is annexed herewith as Annexure IXto this report.
Business Responsibility and Sustainability Report
Pursuant to the amended Regulation 34(2)(f) of the SEBI Listing Regulations, the Business Responsibility and Sustainability Report (BRSR) of your Company for the financial year ended March 31,2023 forms part of this Annual Report and is annexed herewith as Annexure X.
Significant and material orders passed by the regulators or Courts
There are no significant or material orders passed by the Regulators / Courts which would impact the going concern status of your Company and its future operations.
Details of application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year along with their status as at the end of the financial year:
No application was made or any proceedings were pending under the IBC, 2016 during the year ended on March 31,2023.
Details of difference between amount of the valuation done at the time of one-time settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof:
Not Applicable
Green initiative in Corporate Governance
The Ministry of Corporate Affairs (MCA) has taken a green initiative in Corporate Governance by allowing paperless compliances by the Companies and permitted the service of Annual Reports and documents to the shareholders through electronic mode subject to certain conditions and your Company continues to send Annual Reports and other communications in electronic mode to the members who have registered their email addresses with your Company/RTA.
Your Directors take this opportunity to express their sincere appreciation to the shareholders, customers, bankers, suppliers and other business associates for the excellent support and cooperation extended by them.
Your Directors gratefully acknowledge the ongoing co-operation and support provided by the Central and State Governments, Stock Exchanges, SEBI, RBI and other Regulatory Bodies.
For and on behalf of the Board
Sd/- Sd/-
Challa Srishant B. Mohan Krishna
Managing Director Executive Director
DIN: 00016035 DIN: 03053172
Place: Dak Lak Province, Vietnam Date : July 14, 2023
Mar 31, 2022
Dividend
Your Board of Directors have declared an interim dividend of '' 3/- per equity share of '' 2/- each in their meeting held on 19th January, 2022 and recommended a final dividend of '' 2/- per equity share of '' 2/- each in their meeting held on 26th May, 2022, subject to the approval of the members in the 61st Annual General Meeting. The total dividend for the financial year 2021-22 year shall be '' 5/- per equity share. Pursuant to the Finance Act, 2020, dividend income is taxable in the hands of the shareholders w.e.f. 1st April 2020 and your Company is required to deduct tax at source (TDS) from dividend paid to the members at prescribed rates as per the Income-tax Act, 1961.
The record date for the purpose of payment of final dividend for the financial year ended 31st March 2022 is fixed as 26th August, 2022.
As per 43A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 your Company has framed a Dividend Distribution Policy, which may be accessed at https://www.cclproducts.com/wp-content/ uploads/2021/07/Dividend-Distribution-Policv.pdf.
Material Changes and Commitments
Save as and except the proposed merger, which was completed during the FY 2021-22, the Russia - Ukraine war and the impact of Covid -19, as discussed elsewhere in this Report, there were no material changes and commitments affecting the financial position of your Company that have occurred between the end of the financial year 2021-22 and the date of this report.
During the year under review, there was no change in the paid up share capital of your Company. The paid-up Equity Share Capital of your Company as on 31st March, 2022 stood at '' 2,660.56 Lakhs, comprising of 13,30,27,920 equity shares of face value of '' 2/- each. During the year under review, your Company has neither issued any shares with differential voting rights nor has granted any stock options or sweat equity.
The subsidiary companies situated in India and outside India continue to contribute to the overall growth in revenues and performance of your Company. As of 31st March, 2022, your Company has the following wholly owned subsidiaries:
I. Jayanti Pte Limited (Singapore)
II. Continental Coffee Sa (Switzerland)
III. Ngon Coffee Company Limited (Vietnam)
IV. Continental Coffee Private Limited (India)
Performance and contribution of each of the Subsidiaries
As per Rule 8 of Companies (Accounts) Rules, 2014, a report on the financial performance of the subsidiary companies during the financial year ended 31 st March, 2022 is as mentioned below:
i. Jayanti Pte Limited (Singapore)
Jayanti Pte Limited is a wholly owned subsidiary of your Company incorporated in Singapore to act as an investment vehicle for your Company, hence no operational performance is reported.
ii. Continental Coffee SA (Switzerland) |
||
Continental Coffee SA is a wholly owned subsidiary of your Company incorporated in Switzerland. This is an agglomeration and packing unit. Operational performance of the Company, in brief is as hereunder: ('' in Lakhs) |
||
Particulars |
2021-2022 |
2020-2021 |
Revenue from operations |
21,807 |
18,429 |
Profit for the year (before Interest, Depreciation & Tax) |
905 |
929 |
Less: |
||
Interest |
79 |
53 |
Depreciation |
90 |
97 |
Provision for Taxation |
31 |
80 |
Net Profit |
705 |
699 |
iii. Ngon Coffee Company Limited (Vietnam) |
||
Ngon Coffee Company Limited is a wholly owned subsidiary of your Company incorporated in Vietnam. This is an instant coffee manufacturing unit. Operational performance of the Company, in brief, is hereunder: |
||
('' in Lakhs] |
||
Particulars |
2021-2022 |
2020-2021 |
Revenue from operations |
45,125 |
37,436 |
Profit for the year after meeting all expenses (before Interest, Depreciation & Tax) |
12,928 |
10,591 |
Less: |
||
Interest |
81 |
37 |
Depreciation |
2,443 |
2075 |
Provision for Taxation |
- |
(8) |
Net Profit |
10,404 |
8,487 |
iv. Continental Coffee Private Limited |
||
Continental Coffee Private Limited is a wholly owned subsidiary of your Company, incorporated in India, established with an objective of promoting instant coffee brands of your Company in the domestic market. Operational performance of the Company, in brief, is hereunder: ('' in Lakhs) |
||
Particulars |
2021-2022 |
2020-2021 |
Revenue from operations |
17,376 |
13,395 |
Profit for the year after meeting all expenses (before Interest, Depreciation & Tax) |
(319) |
(366) |
Less: |
||
Interest |
239 |
176 |
Depreciation |
136 |
68 |
Provision for Taxation |
14 |
10 |
Net Profit/Loss |
(708) |
(620) |
v. CCL Beverages Private Limited
CCCL Beverages Private Limited, pursuant to the order passed by the Hon''ble National Company Law Tribunal, Amaravati Bench, dated 09th November, 2021 stands amalgamated with CCL Products (India) Limited.
The statement containing the salient features of the financial statement of subsidiaries as per sub-section (3) of Section 129 of the Companies Act, 2013 in Form AOC-1 is herewith annexed as ââAnnexure I'''' to this report.
Consolidated Financial Statements
The Consolidated Financial Statements are prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of the Companies Act, 2013 and other relevant provisions of the Companies Act, 2013.
The Consolidated Financial Statements for the financial year ended 31st March, 2022 forms part of the Annual Report.
Further, we undertake that the annual accounts of the subsidiary companies and the related detailed information will be made available to the shareholders seeking such information at any point of time. Further, the annual accounts of the subsidiary companies shall also be kept open for inspection by any shareholder at our Registered Office and that of the subsidiary companies.
Further, pursuant to the provisions of Section 136 of the Act, the financial statements of your Company, consolidated financial statements along with relevant documents and separate audited financial statements in respect of subsidiaries, are available on the website of your Company which may be accessed at www. cclproducts.com.
The policy for determining material subsidiaries is available on the website of your Company which may be accessed at : https://www.cclproducts.com/wp-content/uploads/2021/07/policv-on-material-subsidiarv.pdf
Companies which have become or ceased to be its Subsidiaries, joint ventures or associate companies during the year:
Your Company does not have any associate or joint venture company falling within the definition under the Companies Act, 2013. Further, during the year under review, CCL Beverages Private Limited, the wholly owned subsidiary was amalgamated with CCL Products (India) Limited. There was no other change in the list of wholly subsidiaries of your Company.
Global Coffee Scenario
According to the estimates of the International Coffee Organisation (ICO), for the financial year 2021-22, global production is estimated to rise by 1.9% to 171.9 million bags vis-a-vis 168.7 million bags for the coffee year 2020-21. In the current financial year, the share of Arabica production is 101.88 million bags, up 5.2% from that of last year and Robusta production at 70.02 million bags is likely to be lower by 2.6% vis-a-vis last financial year.
World coffee consumption is projected to grow by 3.3% to 170.3 million 60-kg bags in 2021-22 as compared to 164.9 million for financial year 2020-21. In 2021-22, consumption is expected to exceed production by 3.1 million bags. However, exogenous factors such as reduced global economic growth and increased cost of inputs, production and trade may affect both supply and demand.
Your Company''s equity shares are listed on the following Stock Exchanges:
(i) BSE Limited, Phiroze JeeJeebhoy Towers, Dalal Street, Mumbai- 400 001, Maharashtra, India; and
(ii) National Stock Exchange of India Limited, Exchange Plaza, Floor 5, Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra, India.
Your Company has paid the Annual Listing Fees to the said Stock Exchanges for the Financial Year 2022-23. External Factors - COVID-19 and the Outbreak of war - impact thereof
The Financial Year 2021-22 suffered two major jolts, causing far reaching impact on the global economy. First, it was COVID-19 and then the Russia - Ukraine war. The beginning of the financial year witnessed unprecedented spread of COVID-19 resulting in lockdowns, restrictions on movements across the country and mass fatalities. Towards the end of 2nd quarter of the FY, while the waves of COVID started to subside steadily and normalcy was about to be restored, the Russia - Ukraine war broke out in the 4th quarter of the FY. The said events may have peculiar impacts on the global economy. Despite the said, we feel bolstered to mention that your Company not only could mitigate the adverse impacts, it also managed to encash the opportunities along the rough road to make the most of what it had to offer. Rise in ocean freights along with the war related scenarios did affect the delivery time and the transportation costs, but the overall scenario for your Company still remained favorable for carrying out its operations in an uninterrupted manner so as to be able to cater to the growing demands of its customers. Your Company''s overseas wholly-owned subsidiaries viz., Ngon Coffee Company Limited at Vietnam and Continental Coffee SA at Switzerland are operating smoothly without any disruptions. The Board and the Management will continue to closely monitor the situation as it evolves and do its best to take all necessary measures, in the interests of all stakeholders of your Company.
Corporate Social Responsibility
Your Company, as part of its Corporate Social Responsibility (CSR) initiative, undertook and supported activities like contributions to old age homes, orphanages, promotion of education and health care activities, facilitating infrastructural and rural development to the identified rural areas in and around the factories situated at Guntur and Tirupati Districts of Andhra Pradesh and rural housing to the underprivileged groups.
Your Company has a Policy on Corporate Social Responsibility (CSR). The Annual Report on CSR activities as per the Companies (Corporate Social Responsibility Policy) Rules, 2014 is annexed herewith as ââAnnexure IIâ to this report. The CSR Policy is posted on the website of your Company which may be accessed at https:// www.cclproducts.com/wp-content/uploads/2021/07/csr-policv.pdf
Further, pursuant to the provisions of Section 135 of the Companies Act, 2013 your Company was required to spend an amount of '' 458.22 Lakhs towards CSR Activities.
Your management feels proud to mention that for the financial year ended 31st March, 2022, your Company has spent a total amount of '' 492.46 Lakhs towards various CSR activities which was in excess of the mandatorily prescribed limit.
Internal Control Systems & their adequacy
The Board has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to your Company''s policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial disclosures.
Statutory Auditors & their report
The Shareholders in their meeting held on 11th July, 2017 (56th AGM) approved the appointment of M/s. Ramanatham & Rao, Chartered Accountants, Hyderabad, as the Statutory Auditors of your Company to hold office till the conclusion of 61st Annual General Meeting. The Board of Directors based on the recommendation of Audit Committee considered the re-appointment of M/s. Ramanatham & Rao, Chartered Accountants, Secunderabad (Registration No. 002934S) as Statutory Auditors of your Company from the conclusion of 61st Annual General Meeting till the conclusion of 66th Annual General Meeting, subject to approval of members at the ensuing Annual General Meeting. Accordingly, a resolution seeking the re-appointment of M/s. Ramanatham & Rao, Chartered Accountants, as the Statutory Auditors of your Company is included in the notice convening the Annual General Meeting for approval of the shareholders.
The standalone and the consolidated financial statements of your Company have been prepared in accordance with Ind AS notified under Section 133 of the Act. The Statutory Auditor''s report does not contain any qualifications, reservations, adverse remarks or disclaimers.
The Statutory Auditors were present in the last AGM held on 26th August, 2021.
The Board of Directors based on the recommendation of the Audit Committee have re-appointed M/s. Ramesh & Co., Chartered Accountants, Hyderabad, as the Internal Auditors of your Company. The Internal Auditors are submitting their reports on quarterly basis.
The Board places its deep condolences on the sudden demise of Mr. N V S Kapardhi (proprietor of M/s. Kapardhi & Associates, Cost Accountants) on 24th January, 2022, who was then holding the office of Cost Auditor of your Company for the FY 2021-22. In view of the said casual vacancy, the Board, pursuant to the recommendation of the Audit Committee, at its meeting held on 10th February, 2022 appointed M/s. M P R & Associates, Cost Accountants, (Registration No. 000413) to the office of Cost Auditor of your Company for the FY 2021-22, at a remuneration of '' 2,00,000/-, subject to the approval of members of your Company.
Further, in accordance with Section 148(3) and other applicable provisions, if any, of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014, the Board of Directors upon recommendation of the Audit Committee has appointed M/s. M P R & Associates, Cost Accountants, Hyderabad, as the Cost Auditors of your Company, to carry out the cost audit of the products manufactured by your Company during the financial year 2022-23 at a remuneration of '' 2,00,000/-. The remuneration payable to the cost auditor is required to be placed before the members in the general meeting for their ratification. Accordingly, resolutions seeking members ratification for the remuneration payable to M/s. M P R & Associates, Cost Accountants, are included in the Notice convening the Annual General Meeting. Your Company is maintaining cost records as specified by the Central Government under Section 148(1) of the Companies Act, 2013.
A Certificate from M/s. M P R & Associates, Cost Accountants, has been received to the effect that their appointment as Cost Auditor of your Company is in accordance with the limits specified under Section 141 of the Companies Act, 2013 and the Rules framed thereunder.
During the year under review, there was no instance of fraud, which required the Statutory Auditors to report to the Audit Committee and/or Board under Section 143(12) of the Companies Act, 2013 and the rules made thereunder.
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, your Company appointed M/s. P.S. Rao & Associates, Company Secretaries (Peer Review Number: P2001TL078000) to undertake the Secretarial Audit of your Company for the FY 2021-22. The Secretarial Audit Report confirms that your Company has complied with the provisions of the Act, Rules, Regulations, and Guidelines and that there were no deviations or non-compliances. The Secretarial Audit Report of the Company and the Secretarial Audit Report of the material unlisted subsidiary of the Company, Continental Coffee Private Limited as per Regulation 24(A) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 are provided in âAnnexure INâ and âAnnexure IMAâ to this Report
Further, we would like to clarify that the said Secretarial Audit Report does not contain any observations or qualifications or reservations or adverse remarks or disclaimers.
Compliance with Secretarial Standards
Your Company has devised proper systems to ensure compliance with the provisions of all the applicable Secretarial Standards issued by the Institute of Company Secretaries of India and that such systems are adequate and operating effectively. During the year under review, your Company has complied with the Secretarial Standards issued by the Institute of Company Secretaries of India.
Directors & Key Managerial Personnel
The Board of directors of your Company has an optimum combination of Executive, Non-Executive and Independent Directors including Women Directors.
i. Independent and Non-Executive Directors
In accordance with the provisions of Section 152 of the Companies Act, 2013, Mr. B. Mohan Krishna and Dr. Lanka Krishnanand, Non-Executive Directors of your Company retire by rotation and being eligible, have offered themselves for re-appointment.
In the opinion of the Board all the Independent Directors of your Company possess integrity, experience, expertise, and the requisite proficiency required under all applicable laws and the policies of your Company.
All the Independent Directors have given declarations stating that they meet the criteria of independence as provided in Section 149(6) of the Companies Act, 2013 along with Rules framed thereunder and Regulation 16(1)(b) of the Listing Regulations. There has been no change in the circumstances affecting their status as independent directors of your Company.
In terms of Section 150 of the Act read with Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014, as amended, all the Independent Directors of your Company have got their names included in the data bank of Independent Directors maintained with the Indian Institute of Corporate Affairs.
ii. Whole Time Directors & Other Key Managerial Personnel
During the year under review, there was no change in the office(s) of any Whole time Director.
During the year under review, Mr. K V L N Sarma, Chief Operations Officer resigned on 27th October, 2021, following which your Company appointed Mr. Praveen Jaipuriar as the Chief Executive Officer of your Company with effect from 29th October, 2021.
iii. Directors and Officers Insurance (âD&Oâ)
As per the requirements of Regulation 25(10) of the SEBI Listing Regulations, your Company has taken D&O for all its directors and members of the Senior Management.
Six meetings of the Board of Directors were held during the year. The details of the Board and Committee meetings and Independent Directors'' meeting are given in the Corporate Governance Report which forms part of this Annual Report.
Your Company also adopted Governance Guidelines on Board Effectiveness which comprises the aspects relating to composition of board and committees, terms of directors, nomination, appointment, development of directors, code of conduct, effectiveness of board and committees, review and their mandates.
Your Board has in place, a duly constituted Audit Committee as per the provisions of Section 177 of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The composition, attendance, powers and role of the Audit Committee are included in Corporate Governance Report which forms part of this Annual Report. All the recommendations made by the Audit Committee were accepted by the Board of Directors.
Apart from the Audit Committee, the Board has also constituted the following committees, in accordance with the provisions of Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as applicable, which are in place and are discharging their functions as per terms of reference entrusted by the Board:
? Nomination and Remuneration Committee
? Stakeholders Relationship Committee
? Corporate Social Responsibility Committee
? Risk Management Committee
? Management Committee
The composition, attendance, powers and role of the Committees are included in Corporate Governance Report which forms part of this Annual Report.
Policy on Directorâs Appointment and Remuneration and other matters (a) Procedure for Nomination and Appointment of Directors:
The Nomination and Remuneration Committee has been formed in compliance with Regulation 19 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and pursuant to Section 178 of the Companies Act, 2013. The main object of this Committee is to identify persons who are qualified to become directors and who may be appointed in senior management of your Company, recommend to the Board their appointment and removal and shall carry out evaluation of every Director''s performance, recommend the remuneration package of both the Executive and the Non-Executive Directors on the Board and also the remuneration of Senior Management, one level below the Board. The Committee reviews the remuneration package payable to Executive Director(s), makes appropriate recommendations to the Board and acts in terms of reference of the Board from time to time.
On the recommendation of the Nomination and Remuneration Committee, the Board has adopted and framed a Remuneration Policy for the Directors, Key Managerial Personnel and other Employees pursuant to the provisions of the Companies Act, 2013 and SEBI Listing Regulations and the same is enclosed as ââAnnexure IV'''' and the Remuneration is posted on the website of your Company which may be accessed at https://www. cclproducts.com/wp-content/uploads/2021/07/remuneration-policv.pdf
The remuneration determined for Executive/Non-Executive Directors is subject to the recommendation of the Nomination and Remuneration Committee and approval of the Board of Directors. The Non-Executive Directors are entitled to sitting fees for the Board/Committee Meetings and profit based commission. The remuneration paid to Directors and Key Managerial Personnel and all other employees is in accordance with the Remuneration Policy of your Company.
Neither the Managing Director nor any Whole Time Director of your Company has received any remuneration or commission from any of the subsidiaries of your Company.
Brief terms of Nomination and Remuneration Policy and other matters provided in Section 178(3) of the Act and Regulation 19 of SEBI Listing Regulations are disclosed in the Corporate Governance Report, which forms part of this Report.
(b) Familiarisation/ Orientation program for Independent Directors:
A formal familiarization program was conducted apprising the directors of the amendments in the Companies Act, rules prescribed thereunder, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and all other applicable laws to your Company. All the directors were also apprised about the business activities of your Company.
It is the general practice of your Company to notify the changes in all the applicable laws to the Board of Directors, from time to time. The objective of the program is to familiarize Independent Directors on the Board with the business of your Company, industry in which your Company operates, business model, challenges etc. through various programs such as interaction with experts within your Company, meetings with our business leads and functional heads on a regular basis.
The details of such familiarization programs for Independent Directors are posted on the website of your Company which may be accessed at https://www.cclproducts.com/wp-content/uploads/2021/07/Familiarization-programme-for-Independent-Directors.pdf
Annual Evaluation of Board Performance and Performance of its Committees and Individual Directors
Pursuant to the provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out the annual performance evaluation of its own performance, the directors individually as well as the evaluation of the working of its Audit, Nomination and Remuneration and all other committees.
A structured questionnaire was prepared after taking into consideration inputs received from the Directors, covering various aspects of the Board''s functioning such as adequacy of the composition of the Board and its Committees, board culture, execution and performance of specific duties, obligations and governance.
A separate exercise was carried out to evaluate the performance of individual Directors including the Chairman of the Board, who were evaluated on parameters such as level of engagement and contribution, independence of judgment, safeguarding the interest of your Company and its minority shareholders etc. The performance evaluation of the Independent Directors was carried out by the entire Board, excluding the Independent Director being evaluated.
In a separate meeting of Independent Directors, performance of Non-Independent Directors, the Board as a whole and the Chairman of your Company was evaluated, taking into account the views of the Executive Directors & Non-Executive Directors who also reviewed the performance of the Secretarial Department. The Nomination and Remuneration Committee reviewed the performance of individual directors on the basis of criteria such as the contribution of the individual director to the Board and Committee meetings like preparedness on the issues to be discussed, meaningful and constructive contribution and inputs in meetings, etc.
The Directors expressed their satisfaction with the evaluation process.
Particulars of Loans, Guarantees and Investments
Details of Loans, Guarantees and Investments made during the financial year ended 31st March, 2022, covered under the provisions of Section 186 of the Companies Act, 2013 read with Companies (Meetings of Board and its Powers) Rules, 2014, are given in the notes to the Financial Statements.
Your Company has neither accepted nor renewed any fixed deposits from the public within the meaning of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014 and as such, no principal or interest was outstanding as on the date of the Balance Sheet.
Capex
Your Company has spent an amount of '' 82.59 Crores towards its capital expenditure requirements. Directorsâ Responsibility Statement
Pursuant to Section 134 (5) of the Companies Act, 2013, your Directors confirm that to the best of their knowledge and belief and according to the information and explanation obtained by them,
i) In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;
ii) Such accounting policies as mentioned in the notes to the financial statements have been selected and applied consistently and judgments and estimates that are reasonable and prudent made so as to give a true and fair view of the state of affairs of your Company at the end of the financial year 2021-22 and of the profit or loss of your company for that period;
iii) 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 your Company and for preventing and detecting fraud and other irregularities;
iv) The annual accounts for the year 2021-22 have been prepared on a going concern basis.
v) That proper internal financial controls were in place and that the financial controls were adequate and were operating effectively.
vi) That systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.
Vigil Mechanism / Whistle Blower Policy
The Vigil Mechanism as envisaged in the Companies Act, 2013, the Rules prescribed thereunder and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is implemented through your Company''s Whistle Blower Policy, to deal with instances of fraud and mismanagement, if any in the Group. The Policy provides for adequate safeguards against victimization of employees who avail the mechanism and also provides for direct access to the Chairman of the Audit Committee. The details of the Policy are explained in the Corporate Governance Report and is also available on the website of your Company which may be accessed at https://www.cclproducts.com/wp-content/uploads/2021/07/whistle-blower-policv.pdf
The Whistle Blower Policy aims for conducting the affairs in a fair and transparent manner by adopting highest standards of professionalism, honesty, integrity and ethical behavior. All the employees of your Company are covered under the Whistle Blower Policy.
Your Company has constituted a Risk Management Committee and formulated a policy on Risk Management in accordance with the Companies Act, 2013 and Regulation 21 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 to frame, implement and monitor the risk management plan for your Company. The Committee is responsible for monitoring and reviewing the risk management plan and ensuring its effectiveness. The Audit Committee has additional oversight in the area of financial risks and controls. The major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis. Furthermore, your Company has set up a robust internal audit function which reviews and ensures sustained effectiveness of internal financial controls by adopting a systematic approach to its work. The details of the Committee and its terms of reference are set out in the Corporate Governance Report forming part of the Board''s Report. The Risk Management Policy of your Company is posted on the website of your Company which may be accessed at https://www.cclproducts.com/wp-content/uploads/2021/07/risk-management-policy.pdf
All related party transactions that were entered into during the financial year were on an arm''s length basis and were in the ordinary course of business. There are no materially significant related party transactions made by your Company with its Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of your Company at large.
All related party transactions are placed before the Audit Committee and also before the Board for approval. Prior omnibus approval of the Audit Committee is obtained as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the transactions which are foreseeable and repetitive in nature. Your Company has developed a Policy on Related Party Transactions for the purpose of identification and monitoring of such transactions.
None of the transactions with related parties falls under the scope of section 188(1) of the Companies Act, 2013. However, as a matter of disclosure, particulars of contracts or arrangements with related parties are provided in ââAnnexure V'''' in Form AOC-2 pursuant to section 134(3)(h) of the Act read with rule 8(2) of the Companies (Accounts) Rules, 2014 and forms part of this report.
The policy on materiality of related party transactions and dealings in related party transactions, as approved by the Board is uploaded on the website which may be accessed at https://www.cclproducts.com/wp-content/ uploads/2021/07/policv-on-related-partv-transactions.pdf.
Disclosure under Regulation 34(3) read with Schedule V of the Listing Regulations Related Party disclosure as per Schedule V of the Listing Regulations |
||||
S.No |
In the accounts of |
Particulars |
Amount at the year ended 2021-22 |
Maximum amount outstanding during the year 2021-22 |
1 |
CCL Products (India) Limited (Holding Company) |
(i) Loans/advances to subsidiaries -Continental Coffee Private Limited (Wholly owned subsidiary) (ii) Loans/advances to associates (iii) Loans/advances to firms/ companies in which Directors are interested |
'' 17.93 Crores (including interest) NA NA |
'' 23.43 Crores (including interest) NA NA |
2 |
CCL Products (India) Limited (Holding Company) |
Investment by the Loanee in the shares of parent company/ subsidiary company when the company has made a loan or advance |
NA |
NA |
Policy on Material Subsidiaries
The Policy on Material Subsidiaries as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as approved by the Board is uploaded on the website of your Company which may be accessed at https:// www.cclproducts.com/wp-content/uploads/2021/07/policv-on-material-subsidiarv.pdf.
In accordance with Section 134 (3) (a) of the Companies Act, 2013, a copy of Annual Return in the prescribed format i.e. Form MGT-7 is placed on the website of your Company which may be accessed at: https://www. cclproducts.com/wp-content/uploads/2022/08/MGT-7-2021-22.pdf
Management Discussion & Analysis
Pursuant to the provisions of Regulation 34(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 a report on Management Discussion & Analysis is herewith annexed as âAnnexure VIâ to this report.
Change in the nature of business
There has been no change in the nature of business of your Company during the year under review. Transfer of amounts to Investor Education and Protection Fund
Pursuant to the provisions of Section 124 (5) of the Companies Act, 2013, an amount of '' 7,63,060/- pertaining to financial year 2013-14, which remained unclaimed for a period of seven years had been transferred by your Company to the Investor Education and Protection Fund established by the Central Government during the financial year 2021-22.
Transfer of unclaimed shares to Investor Education and Protection Fund
Pursuant to the provisions of Section 124 of the Companies Act, 2013, all shares in respect of which dividend has not been paid or claimed for seven consecutive years or more upto and including the financial year 2013-14
were transferred by your Company in the name of Investor Education and Protection Fund during the financial year 2021-22 and the statement containing such details as may be prescribed is placed on the website of your Company. Information in respect of unclaimed dividend and due dates for transfer to the IEPF are given below:
Sl |
For the Financial year ended |
Percentage of Dividend |
Date of Declaration |
Due date for transfer to IEPF |
1 |
2014-15 (Final) |
75% |
20.07.2015 |
23.09.2022 |
2 |
2015-16 (Interim dividend) |
75% |
11.03.2016 |
15.05.2023 |
3 |
2015-16 (Final) |
50% |
26.09.2016 |
30.11.2023 |
4 |
2016-17 (Final) |
125% |
11.07.2017 |
14.09.2024 |
5 |
2017-18 (Final) |
125% |
14.07.2018 |
17.09.2025 |
6 |
2018-19 (Interim dividend) |
87.5% |
23.03.2019 |
27.05.2026 |
7 |
2018-19 (Final) |
87.5% |
07.08.2019 |
11.10.2026 |
8 |
2019-20 (First interim dividend) |
100% |
27.01.2020 |
31.03.2027 |
9 |
2019-20 (Second interim dividend) |
150% |
26.02.2020 |
30.04.2027 |
10 |
2020-21 (Interim dividend) |
100% |
20.10.2020 |
24.12.2027 |
11 |
2020-21 (Final dividend) |
100% |
26.08.2021 |
30.10.2028 |
12 |
2021-22 (Interim dividend) |
150% |
19.01.2022 |
23.03.2029 |
All properties and insurable interests of the Company have been fully insured.
The information required pursuant to Section 197 of the Companies Act, read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of your Company is herewith annexed as âAnnexure VIIâ to this report.
Business Responsibility Report
A Business Responsibility Report as per Regulation 34 of the Listing Regulations, detailing various initiatives taken by your Company on the environmental, social and governance front forms an integral part of this Annual Report.
Corporate Governance
Your Company has been making every endeavor to bring more transparency in the conduct of its business. As per the requirements of Regulation 34 (3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a report on Corporate Governance for the year 2021-22 and a Certificate from M/s. P.S .Rao & Associates, Practising Company Secretaries is furnished which form part of this Annual Report.
Human Resources
Your Company considers its Human Resources as the key to achieve its objectives. Keeping this in view, your Company takes utmost care to attract and retain quality employees. The employees are sufficiently empowered and such work environment propels them to achieve higher levels of performance. The unflinching commitment of the employees is the driving force behind your Company''s vision. Your Company appreciates the spirit of its dedicated employees.
Policy on Prevention, Prohibition and Redressal of Sexual Harassment at Work place
Your Company strongly supports the rights of all its employees to work in an environment that is free from all forms of harassment. Your Company has adopted a Policy on Prevention, Prohibition and Redressal of Sexual Harassment at workplace as per the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made thereunder. The policy aims to provide
protection to employees at the workplace and prevent and redress complaints of sexual harassment and for matters connected or incidental thereto, with the objective of providing a safe working environment, where employees feel secure. Your Company has also constituted an Internal Complaints Committee, known as Anti Sexual Harassment Committee to address the concerns and complaints of sexual harassment and to recommend appropriate action.
Your Company has not received any complaint on sexual harassment during the year.
Energy conservation, technology absorption and foreign exchange earnings and outgo
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of The Companies (Accounts) Rules, 2014, is annexed herewith as âAnnexure VIMâ to this report.
Significant and material orders passed by the regulators or courts
There are no significant or material orders passed by the Regulators / Courts which would impact the going concern status of your Company and its future operations.
Details of application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year along with their status as at the end of the financial year:
No application was made or any proceedings pending under the IBC, 2016 during the year ended on 31st March, 2022.
Details of difference between amount of the valuation done at the time of one-time settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof:
Not Applicable
Green initiative in Corporate Governance
The Ministry of Corporate Affairs (MCA) has taken a green initiative in Corporate Governance by allowing paperless compliances by the Companies and permitted the service of Annual Reports and documents to the shareholders through electronic mode subject to certain conditions and your Company continues to send Annual Reports and other communications in electronic mode to the members who have registered their email addresses with your Company/RTA.
Acknowledgments
Your Directors take this opportunity to express their sincere appreciation to the shareholders, customers, bankers, suppliers and other business associates for the excellent support and co-operation extended by them.
Your Directors gratefully acknowledge the ongoing co-operation and support provided by the Central and State Governments, Stock Exchanges, SEBI, RBI and other Regulatory Bodies.
Mar 31, 2018
Directorsâ Report
Performance of CCL Group
(Rs, in Lakhs)
Particulars |
2017 - 2018 |
2016 - 2017 |
Revenue from operations |
1,13,800 |
98,316 |
Profit for the year after meeting all expenses (before Interest, Depreciation & Tax) |
24,374 |
23,334 |
Less: |
||
Interest |
783 |
1,117 |
Depreciation and other write offs |
3,408 |
3325 |
Provision for Taxation |
5,369 |
5,435 |
Net Profit |
14,813 |
13,456 |
Your Company, along with it''s 100% subsidiaries as a Group, posted good financial results during the year under review. Turnover of the Group is Rs, 1,13,800 Lakhs and the net profit of the Company is Rs, 14,813 Lakhs.
Performance of the Company
Your directors submit their report for the financial year ended 31.03.2018:
_(Rs, in Lakhs)
Particulars |
2017 - 2018 |
2016 - 2017 |
Revenue from operations |
82,466 |
71,406 |
Profit for the year after meeting all expenses (before Interest, Depreciation & Tax) |
16,867 |
17,061 |
Less: |
||
Interest |
620 |
683 |
Depreciation and other write offs |
1122 |
1067 |
Provision for Taxation |
5,349 |
5,431 |
Net Profit |
9,776 |
9,897 |
Turnover of the Company is Rs, 82,466 Lakhs and the net profit of the Company is Rs, 9,776 Lakhs.
Transfer of amount to General Reserve
No amount has been transferred to reserves during the year.
Dividend
Your Directors are pleased to recommend a dividend of Rs, 2.50/- per equity share of Rs, 2/- each for the year 2017-18 subject to the approval of shareholders. The Company has framed a Dividend Distribution Policy and the same is herewith annexed as âAnnexure I'' to this report. The Dividend Distribution Policy is posted on the website of the Company and the web link is http://cclproducts.com/dividend-distribution-policy.pdf
Subsidiaries Jayanti Pte Limited (Singapore)
Jayanti Pte Limited is a wholly owned subsidiary of the Company incorporated in Singapore for the purpose of promoting instant coffee projects in various countries. This is only an investment Company, hence no operational performance is reported.
Grandsaugreen SA (Switzerland)
Grandsaugreen SA is a wholly owned subsidiary of Jayanti Pte Limited and step down subsidiary of the Company incorporated in Switzerland. This is an agglomeration and packing unit and a brief operational performance of the Company is as below:
(Rs, in Lakhs)
Particulars |
2017 - 2018 |
2016 - 2017 |
Revenue from operations |
7,707 |
2,282 |
Profit for the year after meeting all expenses (before Interest, Depreciation & Tax) |
569 |
(54) |
Less: |
||
Interest |
7 |
14 |
Depreciation and other write offs |
473 |
483 |
Provision for Taxation |
26 |
21 |
Net Profit/Loss |
63 |
(572) |
Ngon Coffee Company Limited (Vietnam)
Ngon Coffee Company Limited is a wholly owned subsidiary, jointly owned by CCL and Jayanti Pte Limited. This is an instant coffee manufacturing unit and a brief operational performance is as below:
(Rs, in Lakhs)
Particulars |
2017 - 2018 |
2016 - 2017 |
Revenue from operations |
29,707 |
26,353 |
Profit for the year after meeting all expenses (before Interest, Depreciation & Tax) |
7,511 |
6,711 |
Less: |
||
Interest |
156 |
421 |
Depreciation and other write offs |
1,800 |
1,774 |
Provision for Taxation |
- |
- |
Net Profit/Loss |
5,555 |
4,516 |
The Board has decided to wind up M/s. Jayanti Pte Ltd by transferring the shares held by it in M/s.Grandsaugreen SA and M/s. Ngon Coffee Company Limited, to the parent Company, there by making both the Companies directly owned by CCL as 100% Subsidiaries.
Continental Coffee Private Limited
Continental Coffee Private Limited is a wholly owned subsidiary of the Company, which has been established with an objective of promoting instant coffee brands of the Company in the domestic market and a brief operational performance is as below:
(Rs, in Lakhs)
Particulars |
2017 - 2018 |
2016 - 2017 |
Revenue from operations |
2367 |
277 |
Profit for the year after meeting all expenses (before Interest, Depreciation & Tax) |
(573) |
(371) |
Less: |
||
Interest |
- |
- |
Depreciation and other write offs |
14 |
- |
Provision for Taxation |
- |
|
Net Profit/Loss |
(587) |
(371) |
The statement containing the salient features of the financial statement of subsidiaries as per sub-section (3) of Section 129 of the Companies Act, 2013 in Form AOC-1 is herewith annexed as âAnnexure II'' to this report.
Corporate Social Responsibility
The Company as part of its Corporate Social Responsibility (CSR) initiative, undertook many projects like promotion of education in rural areas, infrastructure and sanitation development, welfare of girl child, facilitating pure drinking water to the identified rural areas in and around the factory at Duggirala, Guntur District, Andhra Pradesh and also rural women empowerment and rural youth skill development programmes in rural areas around Hyderabad.
The Annual Report on CSR activities is annexed herewith as âAnnexure III'' to this report. The CSR Policy is posted on the website of the Company and the web link is http://cclproducts.com/csr-policy.pdf
Internal Control Systems & their adequacy
The Board has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to the Company''s policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial disclosures.
Statutory Auditors
The Shareholders in their meeting held on 11th July, 2017 approved the appointment of M/s. Ramanatham & Rao, Chartered Accountants, Hyderabad, as the Statutory Auditors of the Company, to hold office till the conclusion of 61st Annual General Meeting.
Internal Auditors
The Board of Directors based on the recommendation of the Audit Committee have re-appointed M/s. Ramesh & Co., Chartered Accountants, Hyderabad, as the Internal Auditors of your Company. The Internal Auditors are submitting their reports on quarterly basis.
Cost Auditors
In accordance with Section 148(3) and other applicable provisions, if any, of the Companies Act, 2013 and The Companies (Audit and Auditors) Rules, 2014 the Audit Committee has recommended and the Board of Directors had appointed M/s. Kapardi & Associates, Cost Accountants, Hyderabad, being eligible and having sought re-appointment, as Cost Auditors of the Company, to carry out the cost audit of the products manufactured by the Company during the financial year 2018-19 on a remuneration of Rs,1,50,000/-. The remuneration payable to the cost auditor is required to be placed before the Members in the general meeting for their ratification. Accordingly, a resolution seeking members ratification for the remuneration payable to M/s. Kapardi & Associates, Cost Accountants, is included in the Notice convening the Annual General Meeting.
Secretarial Audit
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. P.S.Rao & Associates, a firm of Company Secretaries in Practice to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is annexed herewith as âAnnexure IV'' to this report.
Directors
The Board of Directors have appointed Mr. Kode Durga Prasad, IPS (Retd.) as an Additional Director of the Company who holds office till the ensuing Annual General Meeting. The Board, based on the recommendation of Nomination and Remuneration Committee considered the appointment of Mr. Kode Durga Prasad as an Independent Director subject to approval of shareholders. Accordingly a resolution seeking approval of Shareholders for his appointment as an Independent Director for a period of five years is included at Item No.5 of the Notice convening the Annual General Meeting.
In accordance with the provisions of Section 152 of the Companies Act, 2013, Ms. Kulsoom Noor Saifullah and Dr. Lanka Krishnanand, Directors of the Company retire by rotation and being eligible, have offered themselves for re-appointment.
All the Independent Directors have given declarations stating that they meet the criteria of independence as per the provisions of Section 149 of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Meetings of the Board
Four meetings of the Board of Directors were held during the year. The details of the Board and Committee meetings and Independent Directors'' meeting are given in the Corporate Governance Report which form part of this Annual Report.
Audit Committee
The Board has constituted Audit Committee as per the provisions of Section 177 of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The composition, attendance, powers and role of the Audit Committee are included in Corporate Governance Report. All the recommendation made by the Audit Committee were accepted by the Board of Directors.
Policy on Directorâs Appointment and Remuneration and other matters (a) Procedure for Nomination and Appointment of Directors:
The Nomination and Remuneration Committee has been formed pursuant to and in compliance with Regulation 19 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and pursuant to Section 178 of the Companies Act, 2013. The main object of this Committee is to identify persons who are qualified to become directors and who may be appointed in senior management of the Company, recommend to the Board their appointment and removal and shall carry out evaluation of every Director''s performance, recommend the remuneration package of both the Executive and the Non-Executive Directors on the Board and also the remuneration of Senior Management, one level below the Board. The Committee reviews the remuneration package payable to Executive Director(s) and recommends to the Board the same and acts in terms of reference of the Board from time to time.
On the recommendation of the Nomination and Remuneration Committee, the Board has adopted and framed a Remuneration Policy for the Directors, Key Managerial Personnel and other employees pursuant to the provisions of the Companies Act, 2013 and SEBI Listing Regulations.
The remuneration determined for Executive/Independent Directors is subject to the recommendation of the Nomination and Remuneration Committee and approval of the Board of Directors. The Non-Executive Directors are compensated by way of profit sharing Commission and the Non-Executive Directors are entitled to sitting fees for the Board/Committee Meetings. The remuneration paid to Directors, Key Managerial Personnel and all other employees is in accordance with the Remuneration Policy of the Company.
The Nomination and Remuneration Policy and other matters provided in Section 178(3) of the Act and Regulation 19 of SEBI Listing Regulations have been disclosed in the Corporate Governance Report, which forms part of this Report.
(b) Familiarization/Orientation program for Independent Directors:
A formal familiarization programme was conducted about the amendments in the Companies Act, Rules prescribed there under, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and all other applicable laws of the Company.
It is the general practice of the Company to notify the changes in all the applicable laws from time to time in every Board Meeting conducted.
The details of such familiarization programmes for Independent Directors are posted on the website of the Company and web link is http://cclproducts.com/familiarization-programme-for-independent-directors.pdf
Annual Evaluation of Board Performance and Performance of its Committees and of Directors
Pursuant to the provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out the annual performance evaluation of its own performance, the Directors individually as well as the evaluation of the working of its Audit and other Committees.
A structured questionnaire was prepared after taking into consideration inputs received from the Directors, covering various aspects of the Board''s functioning such as adequacy of the composition of the Board and its Committees, Board culture, execution and performance of specific duties, obligations and governance.
A separate exercise was carried out to evaluate the performance of individual Directors including the Chairman of the Board, who were evaluated on parameters such as level of engagement and contribution, independence of judgment, safeguarding the interest of the Company and its minority shareholders etc. The performance evaluation of the Independent Directors was carried out by the entire Board. The performance evaluation of the Chairman and the Non Independent Directors was carried out by the Independent Directors who also reviewed the performance of the Secretarial Department. The Directors expressed their satisfaction with the evaluation process.
Particulars of Loans, Guarantees and Investments
Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements.
Fixed Deposits
Your Company has not accepted any fixed deposits and as such no principal or interest was outstanding as on the date of the Balance sheet.
Capex
Your company has spent the following amounts towards capex during this financial year:
1. At Duggirala plant for Civil works and line balancing of plant & machinery '' 23 crores
2. At SEZ in Kuvakolli, Chittoor District for establishment of a new freeze dried coffee plant '' 198 crores
Directorsâ Responsibility Statement
Pursuant to Section 134 (5) of the Companies Act, 2013, your Directors confirm that to the best of their knowledge and belief and according to the information and explanation obtained by them,
i) In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;
ii) Such accounting policies as mentioned in the notes to the financial statements have been selected and applied consistently and judgments and estimates that are reasonable and prudent made so as to give a true and fair view of the state of affairs of the company at the end of the financial year 2017-18 and of the profit or loss of the Company for that period;
iii) 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) The annual accounts for the year 2017-18 have been prepared on a going concern basis.
v) That proper internal financial controls were in place and that the financial controls were adequate and were operating effectively.
vi) That systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.
Vigil Mechanism / Whistle Blower Policy
The Company has a Whistle Blower Policy framed to deal with instance of fraud and mismanagement if any, in the Group. The details of the Policy are explained in the Corporate Governance Report and also posted on the website of the Company and the web link is http://cclproducts.com/whistle-blower-policy.pdf
Risk Management
The Company has constituted a Risk Management Committee and formulated a policy on the Risk Management. The details of Committee and its terms of reference are set out in the Corporate Governance Report forming part of the Board''s Report. The Risk Management Policy of the Company is posted on the website of the Company and the web link is http://cclproducts.com/risk-management-policy.pdf
Related Party Transactions
All related party transactions that were entered into during the financial year were on an arm''s length basis and were in the ordinary course of business. There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large.
All related party transactions are placed before the Audit Committee and also the Board for approval. Prior omnibus approval of the Audit Committee is obtained as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the transactions which are of a foreseen and repetitive nature. The Company has developed a Policy on Related Party Transactions for the purpose of identification and monitoring of such transactions.
None of the transactions with related parties falls under the scope of section 188(1) of the Companies Act, 2013. Information on transactions with related parties pursuant to section 134(3)(h) of the Act read with rule 8(2) of the Companies (Accounts) Rules, 2014 are given in âAnnexure V'' in Form AOC-2 and forms part of this report.
The policy on Related Party Transactions as approved by the Board is uploaded on the website of the Company and the web link is http://cclproducts.com/policy-on-related-party-transactions.pdf.
Policy on Material Subsidiaries
The Policy on Material Subsidiaries as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as approved by the Board is uploaded on the website of the Company and the web link is http://cclproducts. com/policy-on-material-subsidiary.pdf
Extract of Annual Return
Pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management and
Administration) Rules, 2014, the details forming part of the extract of the Annual Return in form MGT 9 is annexed herewith as âAnnexure VI'' to this report.
Management Discussion & Analysis
Pursuant to the provisions of Regulation 34(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 a report on Management Discussion & Analysis is herewith annexed as âAnnexure VIIâ to this report.
Particulars of Employees
The information required pursuant to Section 197 of the Companies Act, read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company is herewith annexed as âAnnexure VIIIâ to this report.
Business Responsibility Report
A Business Responsibility Report as per Regulation 34 of the Listing Regulations, detailing the various initiatives taken by the Company on the environmental, social and governance front forms an integral part of this Annual Report.
Corporate Governance
The Company has been making every endeavor to bring more transparency in the conduct of its business. As per the requirements of the per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a compliance report on Corporate Governance for the year 2017-18 and a Certificate from the Secretarial Auditors of the Company are furnished, which form part of this Annual Report.
Human Resources
Your Company considers its Human Resources as the key to achieve its objectives. Keeping this in view, your Company takes utmost care to attract and retain quality employees. The employees are sufficiently empowered and such work environment propels them to achieve higher levels of performance. The unflinching commitment of the employees is the driving force behind the Company''s vision. Your Company appreciates the spirit of its dedicated employees.
Policy on Prevention, Prohibition and Redressal of Sexual Harassment at Work place
Your Company strongly supports the rights of all its employees to work in an environment, free from all forms of harassment. The Company has adopted a Policy on Prevention, Prohibition and Redressal of Sexual Harassment at workplace as per the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made thereunder. The policy aims to provide protection to Employees at the workplace and prevent and redress complaints of sexual harassment and for matters connected or incidental thereto, with the objective of providing a safe working environment, where Employees feel secure. The Company has also constituted an Internal Committee, known as Anti Sexual Harassment Committee to address the concerns and complaints of sexual harassment and to recommend appropriate action.
The Company has not received any complaint on sexual harassment during the year.
Energy conservation, technology absorption and foreign exchange earnings and outgo
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of The Companies (Accounts) Rules, 2014, is annexed herewith as âAnnexure IX'' to this report.
Significant and material orders passed by the regulators or courts
There are no significant or material orders passed by the Regulators / Courts which would impact the going concern status of the Company and its future operations.
Material Changes and Commitments
There were no material changes and commitments affecting the financial position of the Company that have occurred between the end of the Financial Year 2017-18 of the Company and the date of the report.
Acknowledgments
Your Directors take this opportunity to express their sincere appreciation to the shareholders, customers, bankers, suppliers and other business associates for the excellent support and cooperation extended by them.
Your Directors gratefully acknowledge the ongoing co-operation and support provided by the Central and State Governments, Stock Exchanges, SEBI, RBI and other Regulatory Bodies.
On behalf of the Board
Place: Hyderabad Sd/-
Date: 21st May, 2018 Challa Rajendra Prasad
Executive Chairman
Mar 31, 2017
Directorsâ Report
The Directors submit their report for the financial year ended 31.03.2017:
(Rs. in Lakhs)
Particulars |
2016-17 |
2015-16 |
Revenue from operations Profit for the year after meeting all expenses |
70,739 |
67,719 |
(before Interest, Depreciation & Tax) Less: |
17,050 |
14,040 |
Interest |
683 |
430 |
Depreciation and other write offs |
1067 |
984 |
Provision for Taxation |
5,431 |
4,432 |
Net Profit |
9,869 |
8,194 |
Balance brought forward |
13,189 |
8,998 |
Balance available for appropriation |
23,058 |
17,192 |
Provision for dividend |
- |
3,326 |
Provision for dividend tax |
- |
677 |
Transfer to General Reserve |
- |
- |
Balance carried forward to Balance sheet |
23,058 |
13,189 |
Company Performance
Your Company posted good financial results during the year under review. Turnover of the Company has increased from Rs. 67,719 Lakhs to Rs. 70,739 Lakhs and the net profit of the Company increased from Rs. 8,194 Lakhs to Rs. 9,869 Lakhs.
Transfer of amount to General Reserve
No amount has been transferred to reserves during the year.
Dividend
Your Directors are pleased to recommend a final dividend of Rs. 2.50/- per equity share of Rs.2/- each for the year 2016-17 subject to the approval of shareholders.
Subsidiaries Jayanti Pte Limited (Singapore)
Jayanti Pte Limited is a wholly owned subsidiary of the Company incorporated in Singapore for the purpose of promoting instant coffee projects in various countries. This is only an investment Company, hence no operational performance is reported.
Grandsaugreen SA (Switzerland)
Grandsaugreen SA is a wholly owned subsidiary of Jayanti Pte Limited and step down subsidiary of the Company incorporated in Switzerland. This is an agglomeration and packing unit and a brief operational performance of the Company is as below:
(Rs. in Lakhs)
Particulars |
2016-17 |
2015-16 |
Revenue from operations |
2,282 |
8,572 |
Profit for the year after meeting all expenses |
|
|
(before Interest, Depreciation & Tax) |
(54) |
159 |
Less: |
|
|
Interest |
14 |
22 |
Depreciation and other write offs |
483 |
480 |
Provision for Taxation |
21 |
32 |
Net Profit/Loss |
(572) |
(375) |
Ngon Coffee Company Limited (Vietnam)
Ngon Coffee Company Limited is a wholly owned subsidiary, jointly owned by CCL and Jayanti Pte Limited. This is an instant coffee manufacturing unit and a brief operational performance is as below:
(Rs. in Lakhs)
Particulars |
2016-17 |
2015-16 |
Revenue from operations |
26,353 |
24,376 |
Profit for the year after meeting all expenses |
|
|
(before Interest, Depreciation & Tax) |
6,711 |
6,405 |
Less: |
|
|
Interest |
421 |
629 |
Depreciation and other write offs |
1,774 |
1,375 |
Provision for Taxation |
- |
- |
Net Profit/Loss |
4,516 |
4,401 |
Continental Coffee Private Limited
Continental Coffee Private Limited is a wholly owned subsidiary of the Company, which has been established with an objective of promoting instant coffee brands of the Company in the domestic market and a brief operational performance is as below:
(Rs. in Lakhs)
Particulars |
2016-17 |
2015-16 |
Revenue from operations |
277 |
12 |
Profit for the year after meeting all expenses |
|
|
(before Interest, Depreciation & Tax) |
(371) |
(2) |
Less: |
|
|
Interest |
- |
- |
Depreciation and other write offs |
- |
- |
Provision for Taxation |
- |
- |
Net Profit/Loss |
(371) |
(2) |
The statement containing the salient features of the financial statement of subsidiaries as per sub-section (3) of Section 129 of the Companies Act, 2013 in Form AOC-1 is herewith annexed as âAnnexure Iâ to this report.
Corporate Social Responsibility
The Company as part of its Corporate Social Responsibility (CSR) initiative, undertook many projects like promotion of education in rural areas, infrastructure and sanitation development, welfare of girl child, facilitating pure drinking water to the identified rural areas in and around the factory at Duggirala, Guntur District, Andhra Pradesh and also rural women empowerment and rural youth skill development programmes in rural areas around Hyderabad.
The Annual Report on CSR activities is annexed herewith as âAnnexure IIâ to this report. The CSR Policy is posted on the website of the Company and the web link is http://cclproducts.com/assets/csr-policy22.pdf
Internal Control Systems & their adequacy
The Board has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to the Companyâs policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial disclosures.
Statutory Auditors
The Shareholders in their meeting held on 19th July, 2014 approved the appointment M/s. M. Anandam & Co., Chartered Accountants, Hyderabad, as the Statutory Auditors of the Company to hold office till the conclusion of 56th Annual General Meeting. The Board of Directors based on the recommendation of Audit Committee considered the appointment of M/s. Ramanatham & Rao, Chartered Accountants, Secunderabad (Registration No. 002934S) as Statutory Auditors of the Company from the conclusion of 56th Annual General Meeting till the conclusion of 61st Annual General Meeting, subject to approval of shareholders in the 56th Annual General Meeting and thereafter ratification of their appointment by the members in every Annual General Meeting. Accordingly, a resolution seeking Membersâ appointment for M/s. Ramanatham & Rao, Chartered Accountants, as the Statutory Auditors of the Company is included in the Notice convening the Annual General Meeting for approval of the shareholders.
Internal Auditors
The Board of Directors based on the recommendation of the Audit Committee have re-appointed M/s. Ramesh & Co., Chartered Accountants, Hyderabad, as the Internal Auditors of your Company. The Internal Auditors are submitting their reports on quarterly basis.
Cost Auditors
In accordance with Section 148(3) and other applicable provisions, if any, of the Companies Act, 2013 and The Companies (Cost Records and Audit) Rules, 2014 the Audit Committee has recommended and the Board of Directors had appointed M/s. Kapardi & Associates, Cost Accountants, Hyderabad, being eligible and having sought re-appointment, as Cost Auditors of the Company, to carry out the cost audit of the products manufactured by the Company during the financial year 2017-18 on a remuneration of '' 1,50,000/-. The remuneration payable to the cost auditor is required to be placed before the Members in the general meeting for their ratification. Accordingly, a Resolution seeking Members ratification for the remuneration payable to M/s. Kapardi & Associates, Cost Accountants, is included in the Notice convening the Annual General Meeting.
Secretarial Audit
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. P.S.Rao & Associates, a firm of Company Secretaries in Practice to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is annexed herewith as âAnnexure IIIâ to this report.
Directors and Key Managerial Personnel
Based on the recommendation of Nomination and Remuneration Committee and subject to approval of the shareholders in the ensuing Annual General Meeting, the Board of Directors have appointed Mr. B.Mohan Krishna as Whole Time Director of the Company for a period of two years, designated as Director-Operations, whose office is liable to retire by rotation. Accordingly, resolutions seeking approval of Shareholders are included in the Notice convening the Annual General Meeting.
In accordance with the provisions of Section 152 of the Companies Act, 2013, Ms. Shantha Prasad Challa and Mr.B.Mohan Krishna, Directors of the Company retire by rotation and being eligible, have offered themselves for re-appointment.
All the Independent Directors have given declarations stating that they meet the criteria of independence as per the provisions of Section 149 of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
There was no resignation / appointment and removal of any Key Managerial Personnel during the year. A Brief Profile of the Directors of the Company is annexed with as âAnnexure IVâ to this report.
Meetings of the Board
Four meetings of the Board of Directors were held during the year. The details of the Board and Committee meetings are given in the Corporate Governance Report which form part of this Annual Report.
Audit Committee
The Board has constituted Audit Committee as per the provisions of Section 177 of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The composition, attendance, powers and role of the Audit Committee are included in Corporate Governance Report. All the recommendations made by the Audit Committee were accepted by the Board of Directors.
Policy on Directorâs Appointment, Remuneration and other matters
(a) Procedure for Nomination and Appointment of Directors:
The Nomination and Remuneration Committee has been formed pursuant to and in compliance with Regulation 19 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and pursuant to Section 178 of the Companies Act, 2013. The main object of this Committee is to identify persons who are qualified to become directors and who may be appointed in senior management of the Company, recommend to the Board their appointment and removal and to carry out evaluation of every Directorâs performance, recommend the remuneration package of both the Executive and the Non-Executive Directors on the Board and also the remuneration of Senior Management, one level below the Board. The Committee reviews the remuneration package payable to Executive Director(s) and recommends to the Board the same and acts in terms of reference of the Board from time to time.
On the recommendation of the Nomination and Remuneration Committee, the Board has adopted and framed a Remuneration Policy for the Directors, Key Managerial Personnel and other Employees pursuant to the provisions of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015.
The remuneration determined for Executive/Independent Directors is subject to the recommendation of the Nomination and Remuneration Committee and approval of the Board of Directors. The Non-Executive Directors are compensated by way of profit sharing Commission and the Non-Executive Directors are entitled to sitting fees for the Board/Committee Meetings. The remuneration paid to Directors, Key Managerial Personnel and all other employees is in accordance with the Remuneration Policy of the Company.
The Nomination and Remuneration Policy and other matters provided in Section 178(3) of the Act and Regulation 19 of SEBI Listing Regulations have been disclosed in the Corporate Governance Report, which forms part of this Report.
(b) Familiarization/Orientation program for Independent Directors: A formal familiarization programme was conducted about the amendments in the Companies Act, 2013, Rules prescribed there under, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and all other applicable laws of the Company.
It is the general practice of the Company to notify the changes in all the applicable laws from time to time in every Board Meeting conducted.
The details of such familiarization programmes for Independent Directors are posted on the website of the Company and web link is http://cclproducts.com/assets/familiarization-programme-for-independent-http://cclproducts.com/assets/familiarization-programme-for-independent-directors-123.pdf
Annual Evaluation of Board Performance and Performance of its Committees and of Directors
Pursuant to the provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out the annual performance evaluation of its own performance, the Directors individually as well as the evaluation of the working of its Audit and other Committees.
A structured questionnaire was prepared after taking into consideration inputs received from the Directors, covering various aspects of the Boardâs functioning such as adequacy of the composition of the Board and its Committees, Board culture, execution and performance of specific duties, obligations and governance.
A separate exercise was carried out to evaluate the performance of individual Directors including the Chairman of the Board, who were evaluated on parameters such as level of engagement and contribution, independence of judgment, safeguarding the interest of the Company and its minority shareholders etc. The performance evaluation of the Independent Directors was carried out by the entire Board. The performance evaluation of the Chairman and the Non Independent Directors was carried out by the Independent Directors who also reviewed the performance of the Secretarial Department. The Directors expressed their satisfaction with the evaluation process.
Particulars of Loans, Guarantees and Investments
Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements.
Fixed Deposits
Your Company has not accepted any fixed deposits and as such no principal or interest was outstanding as on the date of the Balance sheet.
Capex
The Company has spent Rs.1719.62 Lakhs towards plant & machinery and other equipment during the year.
Directorsâ Responsibility Statement
Pursuant to Section 134 (5) of the Companies Act, 2013, your Directors confirm that to the best of their knowledge and belief and according to the information and explanation obtained by them,
i) In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;
ii) Such accounting policies as mentioned in the notes to the financial statements have been selected and applied consistently and judgments and estimates that are reasonable and prudent made so as to give a true and fair view of the state of affairs of the company at the end of the financial year 2016-17 and of the profit or loss of the company for that period;
iii) 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) The annual accounts for the year 2016-17 have been prepared on a going concern basis.
v) That proper internal financial controls were in place and that the financial controls were adequate and were operating effectively.
vi) That systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.
Vigil Mechanism / Whistle Blower Policy
The Company has a Whistle Blower Policy framed to deal with instance of fraud and mismanagement, if any in the Group. The details of the Policy are explained in the Corporate Governance Report and also posted on the website of the Company and the web link is http://cclproducts.com/assets/whistle-http://cclproducts.com/assets/whistle-blower-policy4.pdf
Risk Management
The Company has constituted a Risk Management Committee and formulated a policy on the Risk Management. The details of Committee and its terms of reference are set out in the Corporate Governance Report forming part of the Boardâs Report. The Risk Management Policy of the Company is posted on the website of the Company and the web link is http://cclproducts.com/assets/risk-management-policy4.pd f
Related Party Transactions
All related party transactions that were entered into during the financial year were on an armâs length basis and were in the ordinary course of business. There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large.
All related party transactions are placed before the Audit Committee as also the Board for approval. Prior omnibus approval of the Audit Committee is obtained as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the transactions which are of a foreseen and repetitive nature. The Company has developed a Policy on Related Party Transactions for the purpose of identification and monitoring of such transactions.
None of the transactions with related parties falls under the scope of section 188(1) of the Companies Act, 2013. Information on transactions with related parties pursuant to section 134(3)(h) of the Act read with rule 8(2) of the Companies (Accounts) Rules, 2014 are given in âAnnexure Vâ in Form AOC-2 and forms part of this report.
The policy on Related Party Transactions as approved by the Board is uploaded on the website of the Company and the web link is http://cclproducts.com/assets/policy-on-related-party-transactions22.pdf
Policy on Material Subsidiaries
The Policy on Material Subsidiaries as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as approved by the Board is uploaded on the website of the Company and the web link is http://cclproducts.com/assets/policy-on-material-subsidiary4.pdf
Extract of Annual Return
Pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management and Administration) Rules, 2014, the details forming part of the extract of the Annual Return in form MGT 9 is annexed herewith as âAnnexure VIâ to this report.
Management Discussion & Analysis
Pursuant to the provisions of Regulation 34(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 a report on Management Discussion & Analysis is herewith annexed as âAnnexure VIIâ to this report.
Particulars of Employees
The information required pursuant to Section 197 read with Rule 5 of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company is herewith annexed as âAnnexure VIIIâ to this report.
Corporate Governance
The Company has been making every endeavor to bring more transparency in the conduct of its business. As per the requirements of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a compliance report on Corporate Governance for the year 2016-17 and a Certificate from the Auditors of the Company are furnished which form part of this Annual Report.
Human Resources
Your Company considers its Human Resources as the key to achieve its objectives. Keeping this in view, your Company takes utmost care to attract and retain quality employees. The employees are sufficiently empowered and such work environment propels them to achieve higher levels of performance. The unflinching commitment of the employees is the driving force behind the Companyâs vision. Your Company appreciates the spirit of its dedicated employees.
Policy on Prevention, Prohibition and Redressal of Sexual Harassment at Work place:
Your Company strongly supports the rights of all its employees to work in an environment free from all forms of harassment. The Company has adopted a Policy on Prevention, Prohibition and Redressal of Sexual Harassment at workplace as per the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made there under. The policy aims to provide protection to Employees at the workplace and prevent and redress complaints of sexual harassment and for matters connected or incidental thereto, with the objective of providing a safe working environment, where Employees feel secure. The Company has also constituted an Internal Committee, known as Anti Sexual Harassment Committee to address the concerns and complaints of sexual harassment and to recommend appropriate action.
The Company has not received any complaint on sexual harassment during the year.
Energy conservation, technology absorption and foreign exchange earnings and outgo
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of The Companies (Accounts) Rules, 2014, is annexed herewith as âAnnexure IXâ to this report.
Significant and material orders passed by the regulators or courts
There are no significant or material orders passed by the Regulators / Courts which would impact the going concern status of the Company and its future operations.
Material Changes and Commitments
There were no material changes and commitments affecting the financial position of the Company that have occurred between the end of the Financial Year 2016-17 of the Company and the date of the report.
Acknowledgments
Your Directors take this opportunity to express their sincere appreciation to the shareholders, customers, bankers, suppliers and other business associates for their excellent support and cooperation extended by them.
Your Directors gratefully acknowledge the ongoing co-operation and support provided by the Central and State Governments, Stock Exchanges, SEBI, RBI and other Regulatory Bodies.
On behalf of the Board
Sd/-
Place : Hyderabad Challa Rajendra Prasad
Date : 22nd May, 2017 Executive Chairman
Mar 31, 2015
Dear Members,
The Directors submit their report for the financial year ended
31.03.2015:
(in Lakhs)
Particulars 2015 2014
Revenue from operations 67,198 61,110
Profit for the year after meeting all expenses
(before Interest, Depreciation & Tax) 12,933 12,844
Less:
Interest 564 728
Depreciation and other write offs 945 1,297
Provision for Taxation 3,957 3,495
Net Profit 7,466 7,326
Balance brought forward 6,967 4,508
Balance available for appropriation 14,399 11,834
Provision for dividend 1,995 1,596
Provision for dividend tax 406 271
Transfer to General Reserve 3,000 3,000
Balance carried forward to Balance sheet 8,998 6,967
Company Performance
Your Company posted good financial results during the year under
review. Turnover of the Company has increased from Rs. 61,110 Lakhs
toRs. 67,198 Lakhs and the net profit of the Company increased from Rs.
7,326 Lakhs to Rs. 7,466 Lakhs.
Dividend
Your Directors are pleased to recommend a dividend of Rs. 1.50/- per
equity share of Rs. 2/- each for the year 2014-15 subject to the
approval of shareholders.
Subsidiaries
Jayanti Pte Limited (Singapore)
Jayanti Pte Limited is a wholly owned subsidiary of the Company
incorporated in Singapore for the purpose of promoting projects in
various countries. This is only an investment subsidiary, hence no
operational performance is reported.
Grandsaugreen SA (Switzerland)
Grandsaugreen SA is a wholly owned subsidiary of Jayanti Pte Limited
and step down subsidiary of the Company incorporated in Switzerland.
This is an agglomeration and packing unit and a brief operational
performance of the Company is as below:
(Rs. in Lakhs)
Particulars 2015 2014
Revenue from operations 6,655 4,422
Profit for the year after meeting all expenses
(before Interest, Depreciation & Tax) 224 158
Less:
Interest 15 126
Depreciation and other write offs 476 453
Provision for Taxation 27 20
Net Profit/Loss (294) (441)
Ngon Coffee Company Limited (Vietnam)
Ngon Coffee Company Limited is a wholly owned subsidiary, jointly owned
by CCL and Jayanti Pte Limited. This is an instant coffee manufacturing
unit and a brief operational performance is as below:
(Rs. in Lakhs)
Particulars 2015 2014
Revenue from operations 19,554 10,177
Profit for the year after meeting all expenses
(before Interest, Depreciation & Tax) 4,271 1,575
Less:
Interest 782 864
Depreciation and other write offs 1,261 1,161
Provision for Taxation - -- Net Profit/Loss 2,228 (450)
Continental Coffee Private Limited
Continental Coffee Private Limited is a wholly owned subsidiary of the
Company, which has been established with an objective of promoting
instant coffee brands of the Company in the domestic market.
The Statement containing the salient feature of the financial statement
of subsidiaries as per sub-section (3) of Section 129 of the Companies
Act, 2013 in Form AOC-1 is herewith annexed as ''Annexure I'' to this
report.
Corporate Social Responsibility
The Company as part of its Corporate Social Responsibility (CSR)
initiative, undertook many projects like promotion of education in
rural areas, infrastructure and sanitation development, welfare of girl
child, facilitating pure drinking water to the identified rural areas
in and around the factory at Duggirala, Guntur District, Andhra
Pradesh.
The Company also contributed towards improvement of health and
sanitation to set up Green Toilets at several places throughout Guntur
District.
The Company also took the initiative to construct houses to the Hudhud
cyclone victims at Visakhapatnam District of Andhra Pradesh.
The Annual Report on CSR activities is annexed herewith as "Annexure
II" to this report and CSR Policy is posted on the website of the
Company and the web link is http://cclproducts.com/wp-content/
uploads/2015/05/CSR-Policy.pdf
In furtherance of its commitment to the society, during the year under
review, your Company other than those covered under CSR, has donated
Rs. 213 Lakhs to many welfare and philanthropic activities in the areas
of education, sports, culture, construction of houses to weaker
sections and other charitable purposes.
Statutory Auditors
The shareholders in their meeting held on 19th July, 2014 approved the
appointment of M/s. M. Anandam & Co., Chartered Accountants, Hyderabad,
as the Statutory Auditors of the Company to hold office till the
conclusion of 56th Annual General Meeting subject to ratification of
shareholders in every Annual General Meeting. Accordingly, a resolution
seeking Members'' ratification on appointment of M/s. Anandam & Co.,
Chartered Accountants, Hyderabad, as the Statutory Auditors of the
Company for the financial year 2015-16 is included at Item No.4 of the
Notice convening the Annual General Meeting. As required under Clause
49 of the Listing Agreement.
Internal Auditors
The Board of Directors based on the recommendation of the Audit
Committee have re-appointed M/s. Ramesh & Co., Chartered Accountants,
Hyderabad, as the Internal Auditors of your Company. The Internal
Auditors are submitting their reports on quarterly basis.
Cost Auditors
In accordance with Section 148(3) and other applicable provisions, if
any, of the Companies Act, 2013 and The Companies (Audit and Auditors)
Rules, 2014, the Audit Committee has recommended and the Board of
Directors had appointed M/s. Kapardi & Associates, Cost Accountants,
Hyderabad, being eligible and having sought re-appointment, as Cost
Auditors of the Company, to carry out the cost audit of the products
manufactured by the Company during the financial year 2015-16 on a
remuneration of Rs.1,00,000/- . The remuneration payable to the cost
auditor is required to be placed before the Members in a general
meeting for their ratification. Accordingly, a resolution seeking
Members'' ratification for the remuneration payable to M/s. Kapardi &
Associates, Cost Accountants, is included at Item No.7 of the Notice
convening the Annual General Meeting.
Secretarial Audit
Pursuant to the provisions of Section 204 of the Companies Act, 2013
and The Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Company has appointed M/s. P.S.Rao &
Associates, a firm of Company Secretaries in Practice to undertake the
Secretarial Audit of the Company. The Secretarial Audit Report is
annexed herewith as "Annexure III" to this report.
Directors
The Board of Directors have appointed Mr. G.V. Krishna Rau, IAS (Retd.)
as an Additional Director of the Company who holds office till the
ensuing Annual General Meeting. The Board, based on the recommendation
of Nomination and Remuneration Committee considered the appointment of
Mr. G.V.Krishna Rau as an Independent Director subject to approval of
shareholders. Accordingly a resolution seeking approval of shareholders
for his appointment as an Independent Director for a period of five
years is included at Item No.5 of the Notice convening the Annual
General Meeting.
The Board of Directors have appointed Ms. Kulsoom Noor Saifullah as an
Additional Director of the Company who holds office till the Annual
General Meeting. The Board, based on the recommendation of Nomination
and Remuneration Committee considered the appointment of Ms. Kulsoom
Noor Saifullah as a Non-Executive Director subject to approval of
shareholders. Accordingly a resolution seeking approval of shareholders
for her appointment as a Non-Executive Director whose office is liable
to retire by rotation is included at Item No.6 of the Notice convening
the Annual General Meeting.
In accordance with the provisions of Section 152 of the Companies Act,
2013, Mr. B. Mohan Krishna, Director of the Company retires by rotation
and being eligible, has offered himself for re-appointment.
Mr. Zafar Saifullah, IAS (Retd.), Director of the Company passed away
on 25th July, 2014. He was associated with your Company as an
Independent Director since 2007. Your Directors paid their tribute to
him at their meeting held on 28th October, 2014.
Mr. Jonathan T Feuer resigned from the office of the Director w.e.f
17th March, 2015.
Every Independent Director, at the first meeting of the Board in which
he participates as a Director and thereafter at the first meeting of
the Board in every financial year, gives a declaration that he meets
the criteria of independence as provided under the Companies Act, 2013.
A Brief Profile of the Directors of the Company is annexed herewith as
"Annexure IV" to this report.
Particulars of Loans, Guarantees or Investments
Details of Loans, Guarantees and Investments covered under the
provisions of Section 186 of the Companies Act, 2013 are given in the
notes to the Financial Statements.
Fixed Deposits
Your Company has not accepted any fixed deposits and as such no
principal or interest was outstanding as on the date of the Balance
sheet.
Capex
The Company has spent Rs.1,074 Lakhs towards balancing equipment during
the year.
Directors'' Responsibility Statement
Pursuant to Section 134 (5) of the Companies Act, 2013, your Directors
confirm that to the best of their knowledge and belief and according to
the information and explanation obtained by them,
i) In the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
ii) Such accounting policies as mentioned in the notes to the financial
statements have been selected and applied consistently and judgments
and estimates that are reasonable and prudent made so as to give a true
and fair view of the state of affairs of the Company at the end of the
financial year 2014-15 and of the profit or loss of the Company for
that period;
iii) 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) The annual accounts for the year 2014-15 have been prepared on a
going concern basis.
v) That proper internal financial controls were in place and that the
financial controls were adequate and were operating effectively.
vi) That systems to ensure compliance with the provisions of all
applicable laws were in place and were adequate and operating
effectively.
Vigil Mechanism / Whistle Blower Policy
The Company has a Whistle Blower Policy framed to deal with instance of
fraud and mismanagement, if any in the Group. The details of the Policy
are explained in the Corporate Governance Report and also posted on the
website of the Company and the web link is
http://cclproducts.com/wp-content/
uploads/2015/05/Whistle-Blower-Policy.pdf
Risk Management
Pursuant to the requirement of Clause 49 of the Listing Agreement, the
Company has constituted a Risk Management Committee and formulated a
policy on the Risk Management. The details of Committee and its terms
of reference are set out in the Corporate Governance Report forming
part of the Board''s Report. The Risk Management Policy of the Company
is posted on the website of the Company and the web link is
http://cclproducts.com/wp-content/
uploads/2015/05/Risk-Management-Policy.pdf
Related Party Transactions
All related party transactions that were entered into during the
financial year were on an arm''s length basis and were in the ordinary
course of business. There are no materially significant related party
transactions made by the Company with Promoters, Directors, Key
Managerial Personnel or other designated persons which may have a
potential conflict with the interest of the Company at large.
All related party transactions are placed before the Audit Committee as
also the Board for approval. Prior omnibus approval of the Audit
Committee is obtained as per Clause 49 of the Listing Agreement for the
transactions which are of a foreseen and repetitive nature. The Company
has developed a Policy on Related Party Transactions for the purpose of
identification and monitoring of such transactions.
The Policy on Related Party Transactions as approved by the Board is
uploaded on the website of the Company and the web link is
http://cclproducts.com/wp-content/uploads/2015/05/Policy-on-Related-
Party-Transactions-.pdf
The particulars of contracts or arrangements with related parties
referred to in sub-section (1) of Section 188 of the Companies Act,
2013 in Form AOC-2 is herewith annexed as ''Annexure V'' to this report.
Policy on Material Subsidiaries
The Policy on Material Subsidiaries as per Clause 49 of the Listing
Agreement as approved by the Board is uploaded on the website of the
Company and the web link is http://cclproducts.com/wp-content/
uploads/2015/05/Policv-on-material-subsidiarv.pdf
Extract of Annual Return
The details forming part of the extract of the Annual Return in form
MGT 9 is annexed herewith as "Annexure VI" to this report.
Management Discussion & Analysis
Pursuant to the provisions of Clause 49 of the Listing Agreement, a
report on Management Discussion & Analysis is herewith annexed as
''Annexure VII'' to this report.
Particulars of Employees
The information required pursuant to Section 197 read with Rule 5 of
The Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 in respect of employees of the Company is herewith annexed
as ''Annexure VIII'' to this report.
Corporate Governance
The Company has been making every endeavor to bring more transparency
in the conduct of its business. As per the requirements of the Listing
Agreement with the Stock Exchanges, a compliance report on Corporate
Governance for the year 2014-15 and a Certificate from the Auditors of
the Company are furnished which form part of this Annual Report.
Human Resources
Your Company considers its Human Resources as the key to achieve its
objectives. Keeping this in view, your Company takes utmost care to
attract and retain quality employees. The employees are sufficiently
empowered and such work environment propels them to achieve higher
levels of performance. The unflinching commitment of the employees is
the driving force behind the Company''s vision. Your Company appreciates
the spirit of its dedicated employees.
Energy conservation, technology absorption and foreign exchange
earnings and outgo
The information on conservation of energy, technology absorption and
foreign exchange earnings and outgo stipulated under Section 134(3)(m)
of the Companies Act, 2013 read with Rule, 8 of The Companies
(Accounts) Rules, 2014, is annexed herewith as "Annexure IX" to this
report.
Significant and material orders passed by the regulators or courts
There are no significant material orders passed by the Regulators /
Courts which would impact the going concern status of the Company and
its future operations.
Acknowledgments
Your Directors take this opportunity to express their sincere
appreciation to the shareholders, customers, bankers, suppliers and
other business associates for the excellent support and co-operation
extended by them.
Your Directors gratefully acknowledge the ongoing co-operation and
support provided by the Central and State Governments, Stock Exchanges,
SEBI, RBI and other Regulatory Bodies.
On behalf of the Board
Sd/-
Place : Hyderabad Challa Rajendra Prasad
Date : 26th May, 2015 Executive Chairman
Mar 31, 2014
The Directors submit their report for the financial year ended
31.03.2014:
(Rs. in Lakhs)
Particulars 2014 2013
Revenue from operations 61110 58482
Profit for the year after meeting all expenses
(before Interest, Depreciation & Tax) 12844 10866
Less:
Interest 728 1196
Depreciation and other write offs 1297 1587
Provision for Taxation 3495 2624
Net Profit 7326 5459
Balance brought forward 4508 2822
Balance available for appropriation 11834 8281
Short provision for Income Tax earlier
Provision for dividend 1596 665
Provision for dividend tax 271 108
Transfer to General Reserve 3000 3000
Balance carried forward to Balance sheet 6967 4508
Company Performance
Your Company posted good financial results during the year under
review. The production and sales of Instant Coffee were 13,808 M.Ts.
and 13,840 M.Ts. as against 13,045 M.Ts. and 13,003 M.Ts. respectively
in the preceding year. Turnover of the Company has increased from Rs.
58,482 Lakhs to Rs. 61,110 Lakhs and the net profit of the Company
increased from Rs. 5,459 Lakhs to Rs. 7,326 Lakhs, registering a growth of
34%.
Dividend
Your Directors are pleased to recommend a dividend of Rs. 1.20/- per
equity share of Rs. 2/- each for the year 2013-14 subject to the approval
of shareholders.
Wholly Owned Subsidiaries
M/s. Ngon Coffee Company Limited, the step down subsidiary of the
Company at Vietnam, achieved a turnover ofRs. 10,177 Lakhs in the first
year of its commercial operations and expected to perform well during
the financial year 2014-15.
As part of promoting sales in domestic market for various brands
promoted by your Company, the Board has made M/s. Continental Coffee
Private Limited as wholly owned subsidiary.
Service to the Community
In furtherance of its commitment to the society, during the year under
review, your Company has donated Rs. 76.45 Lakhs to many welfare and
philanthropic activities in the areas of education, sports, culture and
other charitable purposes.
Statutory Auditors
Pursuant to the provisions of Section 139(2) of the Companies Act,
2013, on rotation of audit firms, and based on the recommendation of
the Audit Committee, the Board has at its meeting held on May 23, 2014
recommended the re-appointment of M/s. M. Anandam & Co., Chartered
Accountants, Hyderabad, as the Statutory Auditors of the Company to
hold office from conclusion of this Annual General Meeting for a period
of 3 years in accordance with the Act, subject to the ratification of
shareholders at every Annual General Meeting. M/s. M. Anandam & Co.,
Chartered Accountants, Hyderabad, have confirmed that the appointment,
if made, would be within the prescribed limits under Section 141 of the
Companies Act, 2013. Accordingly, the appointment of M/s. Anandam &
Co., Chartered Accountants, Hyderabad, as the Statutory Auditors, is
being proposed as an Ordinary Resolution.
Internal Auditors
The Board of Directors based on the recommendation of the Audit
Committee have re-appointed M/s. Ramesh & Co., Chartered Accountants,
Hyderabad, as the Internal Auditors of your Company. The Internal
Auditors are submitting their reports on quarterly basis.
Cost Auditors
In accordance with Section 141 of the Companies Act, 2013
(corresponding Section 233B of the Companies Act, 1956) and the MCA
General Circular No. 15/2011 dated April 11, 2011, (as amended vide
General Circular No. 36/2012 dated November 6, 2012), the Audit
Committee has recommended and the Board of Directors had appointed M/s.
Kapardi & Associates, Cost Accountants, Hyderabad, being eligible and
having sought re-appointment, as Cost Auditors of the Company, to carry
out the cost audit of the products manufactured by the Company during
the financial year 2014-15.
Directors
In accordance with the provisions of Section 152 of the Companies Act,
2013, Mr. Jonathan T Feuer retires by rotation and being eligible, has
offered himself for re-appointment.
Pursuant to provisions of Section 149 and other applicable provisions
of the Companies Act, 2013 read with Rules thereon, all Independent
Directors of the Company are seeking fresh appointment for five
consecutive years commencing from the ensuing Annual General Meeting.
Fixed Deposits
Your Company has not accepted any fixed deposits and as such no
principal or interest was outstanding as on the date of the Balance
sheet.
Directors'' Responsibility Statement
Pursuant to Section 217(2AA) of the Companies (Amendment) Act, 2000,
your Directors confirm that to the best of their knowledge and belief
and according to the information and explanation obtained by them,
i. In the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures, if any;
ii. Such accounting policies as mentioned in the notes to the financial
statements have been selected and applied consistently and judgments
and estimates that are reasonable and prudent made so as to give a true
and fair view of the state of affairs of the Company at the end of the
financial year 2013-14 and of the profit or loss of the Company for
that period;
iii. 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; and
iv. The annual accounts for the year 2013-14 have been prepared on a
going concern basis.
Management Discussion & Analysis
Pursuant to the provisions of Clause 49 of the Listing Agreement, a
report on Management Discussion & Analysis is set out in Annexure - I
attached to this report.
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
A statement of the particulars of the conservation of energy,
technology absorption and foreign exchange earnings and outgoings as
required under the Companies (Disclosure of particulars in the Report
of Board of Directors) Rules, 1988 is furnished in Annexure - II
attached to this report.
Your Company recycles solid waste generated during the production of
coffee as biomass fuel for energy input to the boilers, thus conserving
scarce fossil fuel, and in turn reducing pollution to the environment.
Particulars of Employees
The particulars of employees required to be furnished under Section
217(2A) of the Companies Act, 1956, read with the Companies
(Particulars of Employees) Rules, 1975, forms part of this Report and
is given as Annexure - III.
Corporate Governance
The Company has been making every endeavor to bring more transparency
in the conduct of its business. As per the requirements of the Listing
Agreement with the Stock Exchanges, a compliance report on Corporate
Governance for the year 2013-14 and a Certificate from the Auditors of
the Company are furnished which form part of this Annual Report.
Human Resources
Your Company considers its Human Resources as the key to achieve its
objectives. Keeping this in view, your Company takes utmost care to
attract and retain quality employees. The employees are sufficiently
empowered and such work environment propels them to achieve higher
levels of performance. The unflinching commitment of the employees is
the driving force behind the Company''s vision. Your Company appreciates
the spirit of its dedicated employees.
Acknowledgments
Your Directors take this opportunity to express their sincere
appreciation to the shareholders, customers, bankers, suppliers and
other business associates for the excellent support and co-operation
extended by them.
Your Directors gratefully acknowledge the ongoing co-operation and
support provided by the Central and State Governments, Stock Exchanges,
SEBI, RBI and other Regulatory Bodies.
On behalf of the Board
Sd/-
Place : Hyderabad Challa Rajendra Prasad
Date : 23rd May, 2014 Executive Chairman
Mar 31, 2013
The Directors submit their report for the financial year ended 31st
March, 2013:
(Rs.in Lakhs)
Particulars 2013 2012
Revenue from operations 58482 48973
Profit for the year after meeting
all expenses
(before Interest,
Depreciation & Tax) 10866 8175
Less: Interest 1196 1156
Depreciation and other write offs 1587 1585
Provision for Taxation 2624 1781
Net Profit 5459 3653
Balance brought forward 2822 942
Balance available for appropriation 8281 4595
Short provision for Income Tax
earlier
Provision for dividend 665 665
Provision for dividend tax 108 108
Transfer to General Reserve 3000 1000
Balance carried forward to
Balance sheet 4508 2822
Company Performance
Your Company posted good financial results during the year under
review. The production and sales of Instant Coffee were 13,045 M.Ts.
and 13,003 M.Ts. as against 12,392 M.Ts. and 12,589 M.Ts. respectively
in the preceding year. Turnover of the company has increased from Rs.
48,973 Lakhs to Rs. 58,482 Lakhs, registering growth of 19%. The net
profit of the Company for the current year is Rs. 5,459 Lakhs as against
Rs. 3,653 Lakhs in the preceding year, registering growth of 49%.
Dividend
Your Directors are pleased to recommend a dividend of Rs. 5 per equity
share of Rs. 10/- for the year 2012- 13 subject to the approval of
shareholders.
Wholly Owned Subsidiary
Your Company has successfully completed implementation of the instant
coffee project through its 100% stepdown subsidiary, M/s Ngon Coffee
Company Limited, Vietnam. The Plant was inaugurated by the Hon''ble
Minister of State, Ministry of Commerce and Industry, Dr. Smt. D.
Purandeswari on 28th of April, 2013. The operations of other subsidiary
namely M/s. Grandsaugreen SA, Switzerland are expected to improve in
the ensuing year.
Service to the Community
In furtherance of its commitment to the society, during the year under
review, your Company has donated Rs. 16.4 Lakhs to many welfare and
philanthropic activities in the areas of education, sports, culture,
etc.
Statutory Auditors
The present Statutory Auditors of the Company, M/s M. Anandam & Co.,
Chartered Accountants, Secunderabad, retire at the forthcoming Annual
General Meeting, and being eligible, offer themselves for
re-appointment.
Internal Auditors
The Board of Directors has appointed M/s. Ramesh & Co., Chartered
Accountants, Hyderabad, as the Internal Auditors of your Company. The
Internal Auditors are submitting their reports on quarterly basis.
Directors
As per the Company''s Articles of Association, Mr. Zafar Saifullah and
Mr. Jonathan T Feuer, Directors of your Company, retire by rotation
and, being eligible, offer themselves for re-appointment.
Fixed Deposits
Your Company has not accepted any fixed deposits and as such no
principal or interest was outstanding as on the date of the Balance
sheet.
Directors'' Responsibility Statement
In terms of Section 217 (2AA) of the Companies Act, 1956, your
Directors confirm the following with regard to the Annual Accounts,
Accounting Policies, Maintenance of accounting records, etc. -
i. That in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures, if any;
ii. That the Directors have selected such accounting policies and
applied them consistently and 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 at the end of the financial year 2012-13 and
of the profit or loss of the company for that period;
iii. That the Directors have taken proper and sufficient care forthe
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; and
iv. The annual accounts have been prepared on a going concern basis.
Management Discussion & Analysis
Pursuant to the provisions of Clause 49 of the Listing Agreement, a
report on Management Discussion & Analysis is set out in Annexure - I
attached to this report.
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
A statement of the particulars of the conservation of energy,
technology absorption and foreign exchange earnings and outgoings as
required under the Companies (Disclosure of particulars in the Report
of Board of Directors) Rules, 1988 is furnished in Annexure - II
attached to this report.
Your Company recycles solid waste generated during the production of
coffee as biomass fuel for energy input to the boilers, thus conserving
scarce fossil fuel, and in turn reducing pollution to the environment.
Particulars of Employees
Information as per Section 217(2A) of the Companies Act, 1956 read with
the Companies (Particulars of Employees) Rules, 1975, forms part of
this Report and is given as Annexure - III.
Corporate Governance
The Company has been making every endeavor to bring more transparency
in the conduct of its business. As per the requirements of the Listing
Agreement with the Stock Exchanges, a compliance report on Corporate
Governance for the year 2012-13 and a Certificate from the Auditors of
the Company are furnished which form part of this Annual Report.
Human Resources
Your Company considers its Human Resources as the key to achieve its
objectives. Keeping this in view, your Company takes utmost care to
attract and retain quality employees. The employees are sufficiently
empowered and such work environment propels them to achieve higher
levels of performance. The unflinching commitment of the employees is
the driving force behind the Company''s vision. Your Company appreciates
the spirit of its dedicated employees.
Acknowledgments
Your Directors take this opportunity to express their sincere
appreciation to the shareholders, customers, bankers, suppliers and
other business associates for the excellent support and co-operation
extended by them.
Your Directors gratefully acknowledge the ongoing co-operation and
support provided by the Central and State Governments, Stock Exchanges,
SEBI, RBI and other Regulatory Bodies.
On behalf of the Board
Sd/-
Place : Hyderabad Challa Rajendra Prasad
Date : 03rd July, 2013 Chairman and Managing Director
Mar 31, 2012
The Directors submit their report for the financial year ended 31st
March, 2012:
(Rs.in Lakhs)
Particulars 2011-12 2010-11
Revenue from operations 48936 35281
Profit for the year after
meeting all expenses
(before Interest, Depreciation
& Tax) 8175 6775
Less:
Interest 1156 1242
Depreciation and other write offs 1585 1505
Provision for Taxation 1781 1276
Net Profit 3653 2752
Balance brought forward 942 552
Balance available for appropriation 4595 3304
Short provision for Income Tax earlier - 53
Provision for dividend 665 266
Provision for dividend tax 108 43
Transfer to General Reserve 1000 2000
Balance carried forward to
Balance sheet 2822 942
Company Performance
Your Company posted good financial results during the year under
review. The production and sales of Instant Coffee were 12,392 M.Ts.
and 12,589 M.Ts. as against 11,607 M.Ts. and 11,277 M.Ts. respectively
in the preceding year. Turnover of the Company has increased from Rs.
35,550 Lakhs to Rs. 49,291 Lakhs, registering growth of 39%. The net
profit of the Company for the current year is Rs. 3,653 Lakhs as against
Rs. 2,752 Lakhs in the preceding year, registering growth of 33%.
Dividend
Your Directors are pleased to recommend a dividend of Rs. 5/- per equity
share of Rs. 10/- for the year 2011-12 subject to the approval of
shareholders.
Wholly Owned Subsidiary
Your Company's 100% stepdown subsidiary M/s. Grandsaugreen,
Switzerland, catering to the requirements of the clients in the Europe,
has performed well during the year.
Your Company has since completed implementation of the instant coffee
project through its 100% stepdown subsidiary, M/s. Ngon Coffee Company
Limited, Vietnam. Presently, the Company is carrying out trial runs and
the commercial production is expected to commence during the third
quater of the current financial year.
Service to the Community
In furtherance of its commitment to the society, during the year under
review, your Company has donated Rs.18.51 Lakhs to many welfare and
philanthropic activities in the areas of education, sports, culture,
etc.
Statutory Auditors
The present Statutory Auditors of the Company, M/s. M. Anandam & Co.,
Chartered Accountants, Secunderabad, retire at the forthcoming Annual
General Meeting, and being eligible, offer themselves for
re-appointment.
Internal Auditors
The Board of Directors has appointed M/s. Ramesh & Co., Chartered
Accountants, Hyderabad, as the Internal Auditors of your company. The
Internal Auditors are submitting their reports on quarterly basis.
Directors
As per the Company's Articles of Association, Mr. I. J. Rao and Mr.
Vipin K. Singal, Directors of your company, retire by rotation and,
being eligible, offer themselves for re-appointment.
Fixed Deposits
Your Company has not accepted any fixed deposits and as such no
principal or interest was outstanding as on the date of the Balance
Sheet.
Directors' Responsibility Statement
In terms of Section 217 (2AA) of the Companies Act, 1956, your
Directors confirm the following with regard to the Annual Accounts,
Accounting Policies, Maintenance of accounting records, etc. -
i. That in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures, if any;
ii. That the Directors have selected such accounting policies and
applied them consistently and 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 at the end of the financial year 2011-12 and
of the profit or loss of the company for that period;
iii. That the Directors have taken proper and sufficient care 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; and
iv. The annual accounts have been prepared on a going concern basis.
Management Discussion & Analysis
Pursuant to the provisions of Clause 49 of the Listing Agreement, a
report on Management Discussion & Analysis is set out in Annexure - I
attached to this report.
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
A statement of the particulars of the conservation of energy,
technology absorption and foreign exchange earnings and outgoings as
required under the Companies (Disclosure of particulars in the Report
of Board of Directors) Rules, 1988 is furnished in Annexure - II
attached to this report.
Your Company recycles solid waste generated during the production of
coffee as biomass fuel for energy input to the boilers, thus conserving
scarce fossil fuel, and in turn reducing pollution to the environment.
Particulars of Employees
Information as per Section 217(2A) of the Companies Act, 1956 read with
the Companies (Particulars of Employees) Rules, 1975, forms part of
this Report and is given as Annexure - III.
Corporate Governance
The Company has been making every endeavor to bring more transparency
in the conduct of its business. As per the requirements of the Listing
Agreement with the Stock Exchanges, a compliance report on Corporate
Governance for the year 2011-12 and a Certificate from the Auditors of
the Company are furnished, which form part of this Annual Report.
Human Resources
Your Company considers its Human Resources as the key to achieve its
objectives. Keeping this in view, your Company takes utmost care to
attract and retain quality employees. The employees are sufficiently
empowered and such workenvironment propels them to achieve higher
levels of performance. The unflinching commitment of the employees is
the driving force behind the Company's vision. Your Company appreciates
the spirit of its dedicated employees.
Acknowledgments
Your Directors take this opportunity to express their sincere
appreciation to the shareholders, customers, bankers, suppliers and
other business associates for the excellent support and co-operation
extended by them.
Your Directors gratefully acknowledge the ongoing co-operation and
support provided by the Central and State Governments, Stock Exchanges,
SEBI, RBI and other Regulatory Bodies.
On behalf of the Board
Sd/-
Place : Hyderabad Challa Rajendra Prasad
Date : 11th August, 2012 Chairman and Managing Director
Mar 31, 2011
Dear Members,
The Directors' submit their report for the financial year ended 31st
March, 2011:
(Rs. in Lakhs)
Particulars 2010-11 2009-10
Gross Income 35,550 28,201
Gross Profit (before Interest,
Depreciation & Tax) 6,775 6,306
Less:
Interest 1,242 1,394
Depreciation and other write offs 1,505 1,419
Provision for Taxation 1,276 792
Net Profit 2,752 2,700
Profit Brought Forward 552 1,085
Balance available for appropriation 3,304 3,785
Short provision for Income Tax 53 0
Provision for dividend 266 200
Provision for dividend tax 43 33
Transfer to General Reserve 2,000 3,000
Net Profit c/f to Balance sheet 942 552
Company Performance
Your Company has performed well inspite of the adverse global economic
conditions. During the year under review, the production and sales of
instant coffee were 11,607 M.Ts and 11,277 M.Ts. as against 8,510 M.Ts.
and 8,767 M.Ts. respectively in the previous year. Turnover of the
Company has grown to Rs. 35,550 Lakhs from Rs. 28,201 Lakhs and the net
profit of the Company is increased to Rs. 2,752 Lakhs as against Rs.
2,700 Lakhs.
Dividend
Your Directors are pleased to recommend a dividend of Rs. 2 per equity
share of Rs. 10/- face value for the year 2010-11 subject to the
approval of shareholders.
Wholly Owned Subsidiary
Your Company's wholly owned subsidiary, M/s Jayanti Pte. Ltd.
implemented an agglomeration plant through M/s Grandsaugreen S.A., in
Switzerland is in the process of implementing through its step down
subsidiary M/s Ngon Coffeee Limited, an instant coffee project in
Vietnam.
Service to the Community
To propagate its philosophy of responding to social welfare causes and
philanthropic activities in the areas of education, sports, cultural,
natural calamities, and other donations, your company has donated Rs.
8.93 Lakhs for the above said causes during the year under review.
Statutory Auditors
The present Statutory Auditors of the Company, M/s. M. Anandam & Co.,
Chartered Accountants, Secunderabad, retire at the forthcoming Annual
General Meeting, and being eligible, offer themselves for
re-appointment.
Internal Auditors
Your Board of Directors have appointed M/s. Ramesh & Co., Chartered
Accountants, Hyderabad as Internal Auditors of the Company. The
Internal Auditors are submitting their reports on quarterly basis.
Directors:
During the year Mr. Ian Breminer and Mr. Viplav Sharma resigned from
the Board of Directors. The Board of Directors placed on record their
appreciation for the valuable services rendered by them during their
tenure as Directors.
In accordance with the provisions of the Company's Articles of
Association Mr. Zafar Saifullah and Mr. Jonathan T. Feuer, Directors of
your company, retire by rotation at the ensuing Annual General Meeting
and being eligible, offer themselves for re-appointment.
Fixed Deposits
Your company has not accepted any fixed deposits and as such no amount
of principal or interest was outstanding as on the date of Balance
sheet.
Directors' Responsibility Statement
In terms of Section 217 (2AA) of the Companies Act, 1956, your
Directors confirm:
i. That in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
ii. That the Directors had selected such accounting policies and
applied them consistently and 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 at the end of the financial year 2010-11 and
of the profit or loss of the company for that period;
iii. That the Directors had taken proper and sufficient care 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 annual accounts have been prepared on a going concern basis.
Management Discussion & Analysis
Pursuant to the provisions of Clause 49 of the Listing Agreement, a
report on Management Discussion & Analysis is set out as an Annexure -1
to this report.
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
A statement of particulars of the conservation of energy, technology
absorption and foreign exchange earnings and outgo is given as required
under the Companies (Disclosure of Particulars in the Report of Board
of Directors) Rules, 1988 and is enclosed as Annexure - II to this
report.
Your Company recycles the solid waste generated during the production
of instant coffee to be used as biomass fuel for energy input to the
boilers, thus conserving the scarce fossil fuel and in turn reducing
pollution to the environment.
Particulars of Employees
Information as per Section 217(2A) of the Companies Act, 1956 read with
the Companies (Particulars of Employees) Rules, 1975, forms part of
this Report and is given as Annexure - III.
Corporate Governance
Your Company has been making every endeavor to bring more transparency
in the conduct of business. As per the requirements of Listing
Agreement with the Stock Exchanges a compliance report on Corporate
Governance for the year 2010-11 and Auditors' Certificate are furnished
as a part of this Annual Report.
Human Resources
Your Company considers its Human Resources as instrumental in achieving
its objects which cannot be done without their endeavors at every
level. Keeping this in view, the Company gives utmost care to attract
and retain quality manpower. The enabling and empowering work-
environment propels them to higher performance. Their unflinching
commitment is the driving force behind the Company's vision and
success. Your Company appreciates the spirit of its dedicated team of
employees.
Acknowledgments:
Your Directors take this opportunity to express their sincere
appreciation for the excellent support and co-operation extended by the
shareholders, customers, bankers, suppliers and other business
associates.
Your Directors gratefully acknowledge the continuous co-operation and
support provided by the Central and State Governments, Stock Exchanges,
SEBI, RBI and other Regulatory Bodies.
On behalf of the Board
Sd/-
Challa Rajendra Prasad
Chairman and Managing Director
Place : Hyderabad
Date : 27th May, 2011
Mar 31, 2010
The Directors submit their report for the financial year ended
31.03.2010:
(Rs.in Lakhs)
Particulars 2009-10 2008-09
Gross Income 28201 26669
Gross profit (before Interest,
Depreciation & Tax) 6306 5359
Less:
Interest 1394 1554
Depreciation 1419 1424
Provision for Taxation 792 482
Net profit 2700 1900
Net profit b/f 1085 1340
Balance available for appropriation 3785 3240
Provision for dividend 200 133
Provision for dividend tax 33 23
Transfer to General Reserve 3000 2500
Transfer to Fluctuation Reserve - (500)
Net profit c/f to Balance sheet 552 1085
Company Performance
Your Company has performed well, despite adverse global economic
conditions. During the year under review, the production and sales of
Instant Coffee were 8,510 MTs, and 8,767 MTs as against 7,448 MTs and
7,495 MTs respectively in the previous year. Turnover of the Company
has grown to Rs.28,201 lakhs from Rs.26,669 lakhs, registering a
moderate growth. The net profit of the Company is Rs.2,700 lakhs, as
against Rs.1,900 lakhs during the previous year, showing a growth rate
of 42%.
Dividend
Your Directors are pleased to recommend a dividend of Rs. 1.50 per
equity share of Rs.10/- for the year 2009-10 subject to the approval of
shareholders.
Wholly Owned Subsidiary
Your Company has promoted a wholly owned subsidiary company by the name
Jayanti Pte. Ltd. in Singapore, with the primary objective of
identifying and making investments in potential instant coffee markets
worldwide. The wholly owned subsidiary has implemented an agglomeration
project in Switzerland. Requisite permissions from the concerned
authorities to start the manufacturing process in relation to the said
project, has been received on 8th September, 2010. The wholly owned
subsidiary is also in the process of implementing an instant coffee
project in Vietnam.
Service to the Community
To propagate its philosophy of its active participation in social
welfare causes and philanthropic activities in the areas of education,
sports, culture, and in cases of natural calamities, your Company has
donated Rs.22.48 lakhs, for the above causes during the year under
review.
Statutory Auditors
The present Statutory Auditors of the Company, M/s. M. Anandam & Co.,
Chartered Accountants, Secunderabad, retire at the forthcoming Annual
General Meeting, and being eligible, offer themselves for
reappointment.
Internal Auditors
Your Board of Directors have appointed M/s. Ramesh & Co., Chartered
Accountants, Hyderabad as Internal Auditors of the Company. The
Internal Auditors are submitting their reports on quarterly basis.
Directors:
Mr. B.N. Jayasimha, Director of the Company, passed away on 26th
February, 2010. He was associated with your Company, as an Independent
Director, for a long time. Your Directors paid their tribute to him at
their meeting held on 30th April,2010.
In accordance with the provisions of the Companys Articles of
Association Mr. I.J. Rao, and Mr. Vipin K. Singal, Directors of your
company, retire by rotation and being eligible, offers themselves for
re-appointment.
Fixed Deposits
Your company has not accepted any fixed deposits, and as such no amount
of principal or interest was outstanding, as on the date of Balance
sheet.
Directors Responsibility Statement
In terms of Section 217 (2AA) of the Companies Act, 1956, your
Directors confrm the following, with regard to Annual Accounts,
Accounting Policies, maintenance of accounting records, etc.
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 Directors have selected such accounting policies and
applied them consistently and 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 at the end of the financial year 2009-10 and
of the profit or loss of the company for that period;
iii. That the Directors have taken proper and suffcient care 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. The annual accounts have been prepared on a going concern basis.
Management Discussion & Analysis
Pursuant to the provisions of Clause 49 of the Listing Agreement, a
report on Management Discussion & Analysis is set out as an Annexure -
I to this report.
Conservation of Energy, Technology Absorption, Foreign Exchange
Earnings and Outgo
A statement of particulars of the conservation of energy, technology
absorption and foreign exchange earnings and outgoings is given as
required under the Companies (Disclosure of particulars in the Report
of Board of Directors) Rules, 1988, and is enclosed as Annexure - II to
this report.
Company recycles the solid waste generated during the production of
coffee, to be used as biomass fuel for energy input to the boilers,
thus conserving the scarce fossil fuel and in turn reducing pollution
to the environment.
Particulars of employees
Information as per Section 217(2A) of the Companies Act, 1956 read with
the Companies (Particulars of Employees) Rules, 1975, forms part of
this Report and is given as Annexure à III.
Corporate Governance
The Company has been in compliance with all the conditions of Corporate
Governance, as stipulated in Clause 49 of the Listing Agreement with
the concerned Stock Exchanges. The detailed Report on Corporate
Governance in terms of Clause 49 of the Listing Agreement and a
certifcate of the Auditors thereon is attached to this report.
Human Resources
Your Company considers its Human Resources as instrumental in achieving
its objects which can not be done without their endeavors at every
level. Keeping this in view, the Company displays utmost care to
attract and retain quality persons. The enabling and empowering work-
environment propels them to higher performance. Their unfinching
commitment is the driving force behind the Companys vision and sucess.
Your Company appreciates the spirit of its dedicated team of employees.
Acknowledgments:
Your Directors take this opportunity to express their sincere
appreciation for the excellent support and co-operation extended by the
shareholders, customers, bankers, suppliers and other business
associates.
Your Directors gratefully acknowledge the ongoing co-operation and
support provided by the Central and State Governments, Stock Exchanges,
SEBI, RBI and other Regulatory Bodies.
On behalf of the Board
Sd/-
Place : Hyderabad Challa rajendra Prasad
Date : 29th September, 2010 Chairman and Managing Director