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Directors Report of Chettinad Cement Corporation Ltd. Company
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Directors Report of Chettinad Cement Corporation Ltd.

Mar 31, 2014

Dear Shareholders,

The Directors take pleasure in presenting the Fifty first Annual Report and the Audited Accounts of the Company for the year ended 31st March, 2014.

FINANCIAL RESULTS: (Rs in lakhs)

Current Previous Year ended Year ended 31/03/2014 31/03/2013

Profit before Depreciation and Interest 48391 63476 LESS: Depreciation 29824 37149 Interest 7968 10605 Profit before Tax 10599 15722 LESS: Provision for Income Tax - Current 43 2240 - Deferred (48) (272) Profit after current and deferred tax 10604 13754 Surplus brought from previous year 69878 59353

Total available for appropriation 69878 59353

APPROPRIATIONS

Transfer to General Reserve 1100 1500 Proposed Dividend 1910 1909 Tax on the Proposed Dividend 325 326 Balance Carried over to Balance Sheet 66543 59353

DIVIDEND

Your Directors are pleased to recommend a Dividend of Rs 5/- per Equity Share (i.e., 50% Dividend on the Equity Share Capital of the Company) for the Financial year ended 31st March, 2014. An amount of Rs 1100 lakhs have been transferred to the General Reserve.

PRODUCTION AND SALES FOR THE YEAR 2013-14

MT Clinker produced - 4584337

Cement produced - 5816358

Cement and Clinker Sales - 5854346

OPERATIONS

This is covered under the topic Management Discussion and Analysis.

MANAGEMENT DISCUSSION AND ANALYSIS

a) Discussion on financial performance with respect to operational performance.

The Production and Sale of Cement during the financial year 2013-14 was 5816358 MT and 5854346 MT, a reduction 6% and 5% respectively over the previous year. The Gross Turnover of the company for the financial year 2013-14 stood at Rs. 2557 crores as against Rs 2825 crores in the previous year, a negative growth of 9.5% over the previous year, mainly owing to sluggish market conditions. The Profit before Tax of Rs 106 crores was around 33% lower than the previous year, mainly on account of spiraling rise in Raw Material and Transportation Costs and lower realisation.

b) Economic Scenario and Future Outlook

The Indian Economic Scenario during the financial year 2013-14 was the worst in the last decade. The economic growth was at its lowest of less than 5% and inflation was also at its highest. The sluggish economic scenario affected almost all industries and the case with Cement Industry was no different, which is evident from the financial performance of the company.

The Demand potential is the biggest advantage of India today and the future lies in exploitation of the demand potential. With the continuing impetus on infrastructure development and adequate government support towards growth of economy, the future definitely augurs well for Cement Industry.

c) Internal control system and their adequacy

The Company has got an adequate system of internal control in place commensurate with the size of its operation and is properly designed to protect and safeguard the assets of the Company. There is a proper system for recording all the transactions which ensures that every transaction is properly authorized and executed according to the norms.

The company had also appointed M/s C. Muthukumar & Co., M/s J. Karthik Bharathi & Co., M/s M. Karuppiah & Co., and M/s Raghavan & Muralidharan, Chartered Accountants as Internal Auditors to conduct the Systems and compliance Audit of the company.

d) Material developments in Human resources / Industrial relations front, including number of people employed.

As always, the Industrial relation during the current year also has been very cordial and contributed to mutual development. Various seminars, counseling sessions, trainings etc., were conducted to improve the quality of the manpower available thereby increasing the productivity and efficiency of the personnel. The number of personnel employed in the company is: 1549

CAPTIVE THERMAL POWER PLANTS [CPP]

KARIKKALI WORKS

The Gross power generation from the 1 x 15 MW and 1 x 30 MW Captive Thermal Power Plants during the year under review was 205499465 Units, with an auxiliary consumption of 17147233 units. Out of the Net Generation of 188352232 Units, 140564632 units were captively consumed by the Cement Plant thereat and the remaining 47787600 units were sold under Power Purchase Agreements.

PULIYUR WORKS

The Gross power generation from the 1 x15 MW Captive Thermal Power Plant during the year under review was 100402100 Units, with an auxiliary consumption of 8258000 units. The Net generation was 92143850 Units and that no sale of power was made during the year from the Puliyur Captive Power Plant.

ARIYALUR WORKS

The Gross power generation from the 3 x 15 MW Captive Thermal Power Plant during the year under review was 223471825 Units, with an auxiliary consumption of 18877351 units. Out of the Net generation of 204594474 Units, 139565000 units were captively consumed by the Cement Plant thereat and the remaining 65029000 units were sold under Power Purchase Agreements.

KALLUR WORKS

The Gross power generation from the 1 x 30 MW Captive Thermal Power Plant during the year under review was 73560000 Units, with an auxiliary consumption of 6862000 units. Out of the Net generation of 66698000 Units, 64241000 units were captively consumed by the Cement

Plant thereat and the remaining 2457000 units were sold under Power Purchase Agreements.

The company has installed Waste Heat Generation Plant with a capacity of 7.3 MW. The Production during the financial year 2013-14 is 27,30,000 units.

INDUSTRIAL RELATIONS

The Employees at all ranks of the Company have been extending their fullest co-operation for the smooth conduct of the affairs of the Company and maintenance of cordial Industrial relations. The Directors wish to place on record their appreciation to the employees of the Company at all levels.

PUBLIC DEPOSITS

The company has no un-matured/unpaid Fixed Deposits at the end of financial year 2013-14.

DELISTING OF EQUITY SHARES

The Equity Shares of the company have got delisted from all the Stock Exchanges where they were listed with effect from the 7th June, 2013. The Exit Offer period given to the residual Shareholders of the company to surrender their Shares in favour of the Promoters at the Exit Price fixed on Delisting came to an end on 6th June, 2014. The Promoter acquired 253883 Equity Shares which have been surrendered by the residual shareholders in the Exit Offer. With this, the total No. of shares of the Promoters are 36343162 (95.14%).

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

As required under Section 217 (1) (e) of the Companies Act, 1956, the details regarding Energy Conservation, Technology Absorption, Foreign Exchange earnings and outgo are given in the Annexure hereto.

STATUTORY INFORMATION REGARDING EMPLOYEES

The particulars regarding employees fall within the purview of Section 217 (2-A) of the Companies Act, 1956 and the Rules made there under, are mentioned in the Annexure hereto.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to Section 217 (2- AA) of the Companies Act, 1956, the Directors confirm that:

a) in the preparation of the Annual Accounts, the applicable accounting standards had been followed.

b) 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 and of the profit or loss of the Company for that period.

c) The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

d) The Directors had prepared the Annual Accounts on a going concern basis

DIRECTORS

Mr. SP.ST. Palaniappan, Director had passed away on 3rd March, 2014. The Board condoled on the sudden demise of Mr. SP.ST. Palaniappan.

Mr.R.Ramakrishnan (DIN 00809342) has been co-opted on 30.07.2014 as Director on the Board of the Company, in the place of Mr.SP.ST. Palaniappan.

Dr. M.A.M. Ramaswamy, Chairman and Sri Ramanathan Palaniappan, Director retire under Clause 102 of the Articles of Association of the Company and being eligible, offer themselves for re - appointment.

AUDITORS

The Auditors, M/s P. B. Vijayaraghavan & Co., M/s Soundararajan & Co., and M/s Krishaan & Co., Chartered Accountants retire at the ensuing Annual General Meeting and they are eligible for re-appontment.

The Cost Audit of the Company is conducted by M/s Geeyes & Co., Chennai.

The Cost Audit Report/Compliance report for the financial year 2012-13 were due to be filed by 27th September, 2013. As the MCA stipulated that same had to be filed under the Extensible Business Reporting Language [XBRL] mode, the Cost Audit Report and the Compliance Report, in Form I and Form A, respectively, for the Financial Year 2012-13 have been filed with the Central Government in the prescribed mode on 27.09.2013.

The Cost Audit Report and the Compliance Report for the financial year 2013-14 is due to be filed within 180 days from the closure of the financial year in XBRL mode and will be filed within the stipulated period.

CAUTIONARY STATEMENT

Statements made in this Report, including those stated under the caption "Management Discussion and Analysis" describing the company''s objectives, expectations or projections may constitute "forward looking statements" within the meaning of applicable securities laws and regulations.

Important factors that could influence the Company''s operations include global and domestic supply and demand conditions affecting the selling prices of finished goods, availability of inputs and their prices, changes in the government regulations, tax laws, economic developments within the country and outside and other factors such as litigations and Industrial relations.

The Company assumes no responsibility in respect of the forward looking statements which may undergo changes in the future on the basis of subsequent developments, information or events.

ACKNOWLEDGEMENT

The Board of Directors wish to thank all the Shareholders, Government Authorities and Financial Institutions and Bankers, Suppliers, Customers and all the categories of Employees for the continued assistance, support and direction to the company during the year under review.

ADDENDUM

Auditors'' Report:

Regarding the liability, if any, under the provisions of Jute Packaging Materials (Compulsory use in the Packing Commodities) Act, 1987, the Note No.42 of the Notes forming part of the Accounts is self-explanatory and the Directors opine that as the amount of liability is not ascertainable, necessary provision can be made in the year in which the actual liability would arise.

For and on behalf of the Board, M.A.M. Ramaswamy Chairman Place: Chennai Date : 30.07.2014


Mar 31, 2013

The Shareholders,

The Directors take pleasure in presenting the Fiftieth Annual Report and the Audited Accounts of the Company for the year ended 31st March, 2013.

FINANCIAL RESULTS:

(Rs. in lakhs)

Current Previous Year ended Year ended 31/03/2013 31/03/2012

Profit before Depreciation and Interest 63476 69050

LESS :

Depreciation 37149 34681

Interest 10605 9249

Profit before Tax 15722 25120

LESS :

Provision for Income Tax

-Current 2240 5807

- Deferred (Assets) / Liabilities (272) 513

Profit after current and deferred tax 13754 18800

ADD :

Surplus brought from previous year 49334 35864

Total available for appropriation 63088 54664

APPROPRIATIONS

Transfer to General Reserve 1500 2000

Proposed Dividend 1909 2865

Tax on the Proposed Dividend 326 465

Balance Carried over to Balance Sheet 59353 49334

DIVIDEND

Your Directors are pleased to recommend a Dividend of Rs. 5.00/- per Equity Share (i.e., 50% Dividend on the Equity Share Capita I of the Company) for the Financial year ended 31" March, 2013.

PRODUCTION AND SALES FOR THE YEAR 2012-13

A/IT

Clinker produced - 4766369

Cement produced - 6160875

Cement and Clinker Sales - 6188277

OPERATIONS

This is covered under the topic Management Discussion and Analysts.

CAPTIVE THERMAL POWER PLANTS

KARIKKALI WORKS

The Gross power generation from the 1 x 15 MW and 1x30 MW Captive Thermal Power Plants during the year under review was 188299982 Units, with an auxiliary consumption of 16804926 units. Out ofthe Net Generation of 171489606 Units, 171182406 units were captively consumed by the Cement Plant thereat and the remaining 307200 units were sold under Power Purchase Agreements.

PULIYUR WORKS

The Gross power generation from the 15 MW Captive Thermal Power Plant during the year under review was 107660300 Units, with an auxiliary consumption of 86o6400units. The Net generation was 99053900 Units and that no sale of power was made during the year from the Player Captive Power Plant,

ARIYALUR WORKS

The Gross power generation from the 3 x 15 MW Captive Thermal Power Plants during the year under review was 206634560 Units, with an auxiliary consumption of 18602792 units. The Net generation was 188031768 Units and that no sale of power was made during the year from the Captive Power Plants at Ariyaiur.

CEMENT PLANT PROJECT AT KARNATAKA

Your company has commissioned a Captive Thermal Power Plant with 3 capacity of 30 MW at the site of the Greenfield Integrated Cement manufacturing

Unit at Sangam.K Village, ChinchoiiTaluk, Gulbarga District during the first half of the financial year 20.12-

13. The Gross power generation from the Captive Thermal Power Plant during the year under review was 40865729 Units, with an auxiliary consumption of 4658796 Units .The Net generation was 36206933 Units and that no sale of Power was made from the Captive Power Plants at Kaliur.

INDUSTRIAL RELATIONS

The Employees at all ranks of the Company have been extending their fullest co-operation for the smooth conduct of the affairs of the Company and maintenance of cordial Industrial relations. The Directors wish to place on record their appreciation to the employees of the Company at all levels.

PUBLIC DEPOSITS

The company has no unmetered/unpaid Fixed Deposits at the end of financial year 2012-13.

DELISTING OF EQUITY SHARES

A Promoter Group company M/s Cheftinad Holdings (P) Ltd. had announced 3 proposal for . Voluntary Delisting of Equity Shares of the company from the National Stock Exchange of India Limited ("NSE") and Madras Stock Exchange Limited ("MSE") where the Equity Shares of the company were listed and with drawls of the Company''s Equity Shares from the permitted to Tray the category in the Bombay Stock Exchange Limited ("BSE"), on the such May, 2012.

The proposal was approved by the Board of Directors of the company on the 15''*'' May, 2012 and recommended for getting the approval of the Shareholders and further process as per the provisions of Securities an
The Shareholders of the company had given their approval to the proposal for Voluntary Delisting of Equity Shares of the company through Postal Ballot held during the period from 4"1 January, 2013 to February, 2013 and the result of the same was announced on the 4lfl February, 2013. The Public Announcement for Delisting of the Equity Shares was made on the 23"'' February, 2013 and the Reverse Book Building process ("RBB") to ascertain the price . discovered by the Shareholders for the Voluntary Desisting was conducted from thei5thto21st March, 2013.

The maximum price discovered by the Shareholders in the RBB as per the provisions of Delisting Regulations was Rs. 700/- per Equity Share. The Promoters of the Company accepted an Exit Price of Rs. 720/- per Equity Share ("Exit Price")for successful Delisting of the Equity Shares from the NSE and the MSE, where the Securities of the company were listed and for withdrawal of the Company''s Equity Shares from the permitted to Trade category in BSE.

The Post Offer Public Announcement was made on the 25th March, 2013 and the payment of Sale Consideration at the Exit Price was made to all the Shareholders who had successfully tendered their Shares in the RBB at or below the Exit Price on the 26th March, 2013. The final Application for delisting was submitted to NSE, BSE and MSE on the 9th April, 2013.

The company received the final approval for delisting from NSE on the 17th May, 2013 informing that the Equity Shares of the company would be suspended from Trading from the closing hours of 31st May, 2013 and the Equity Shares of the company would be delisted from NSE with effect from 7th June, 2013. The MSE issued their final approval on the 24th May 2013 informing that the Equity Shares of the company would be delisted from MSE with effect from the by''s June, 2013. The BSE issued their final approval on the 22th May, 2013 informing that the Trading of the Equity Shares in the Exchange would be discontinued with effect from the closing hours of 31st May, 2013.

So the Equity Shares of the company have got delisted from all the Stock Exchanges where they were listed with effect from the 7''''''june, 2013. The Promoters have dispatched the Exit Letter of Offer to all the residual Shareholders who have not participated or have unsuccessfully participated, in the Delisting process so as to enable them to surrender their Shares in favors of the Promoters of the company, at the Exit Price offered in Delisting process, up to a period of one year from the date of delisting i.e., up to 6"1 June, 2014.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

As required under Section 217 (1) (e) of the Companies Act, 1956, the details regarding Energy Conservation, Technology Absorption, Foreign Exchange earnings and outgo are given in the Annexure hereto.

STATUTORY INFORMATION REGARDING EMPLOYEES .

The particulars regarding employees falling within the purview of Section 217 (2-A) of the Companies Act, 1956 and the Rules made there under, are mentioned in annexure hereto.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to Section 217 (2- AA) of the Companies Act, 1956, the Directors confirm that:

(i) in the preparation of the Annual Accounts, the applicable accounting standards had been followed.

(ii) The Directors had selected such accounting policies and Applied the 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 and of the profit or loss of the Company for that period.

(ili) The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

(iv) The Directors had prepared the Annual Accounts on a going concern basis.

CORPORATE GOVERNANCE

As per the provisions of the Listing Agreement with Madras Stock Exchange Ltd. and the National Stock Exchange of India Ltd., where the Company''s Equity Shares were listed, a Report on Corporate Governance is given in an Annexure hereto.

DIRECTORS

Sri R. Krishnamoorthy, and Sri SP.ST. Palaniappan, Directors retire under Clause 102 of the Articles of Association of the Company and being eligible, offer themselves for re-appointment.

The term of office of Sri M.A.M.R.Muthiah, as Managing Director of the Company is due to complete on 27th September, 2013. It is proposed to re-appoint him as the Managing Director of the Company for a period of 5 years as per the applicable provisions and Schedule XII! of the Companies Act, 1956 with effect from 28th September, 2013.

AUDITORS

The Auditors, M/s P. B. Vijayaraghavan &Co., M/ s Soundararajan & Co., and M/s Krishaan & Co., Chartered Accountants retire at the ensuing Annual General Meeting and they are eligible for re- appointment.

The Cost Audit of the Company is conducted by M/ s Geeyes & Co., Chennai.

The Cost Audit Report / Compliance report for the financial year 2011-12. were due to be filed by 2/h September, 2012. As the MCA stipulated that same had to be filed under the Extensible Business Reporting Language [XBRL} mode, the Cost Audit Report and the Compliance Report, in Form I and Form A, respectively, for the Financial Year 2011-12 have been filed with the Central Government in the prescribed mode on 09th January, 2013 that is, within the Permissible extension of time limit fixed up to 31st January, 2013.

The Cost Audit Report and the Compliance Report for the financial year 2012-13 15 due to be filed within 180 days from the closure of the financial year in XBRL mode and will be filed within the stipulated period.

CAUTIONARY STATEMENT

Statements made in this Report, including those stated under the caption "Management Discussion and Analysis" describing the company''s objectives, expectations or projections may constitute "forward looking statements" within the meaning of applicable securities laws and regulations.

Important factors that could influence the Company''s operations include global and domestic supply and demand conditions affecting the selling prices of finished goods, availability of inputs and their prices, changes in the government regulations, . tax laws, economic developments within the country and outside and other factors such as litigations and Industrial relations.

The Company assumes no responsibility in respect of the forward looking statements which may undergo changes in the future on the basis of subsequent developments, information or events.

ACKNOWLEDGEMENT

The Board of Directors wish to thank all the Shareholders, Government Authorities and Financial Institutions and Bankers, Suppliers, Customers and all the categories of Employees for their continued assistance, support and direction to the company during the year under review.

ADDENDUM

Auditors'' Report:

Regarding the liability, if any, under the provisions of Jute Packaging Materials (Compulsory use in the Packing Commodities) Act; 1987, the Note No. 39 of the Financial Statements is self-explanatory and the Directors opine that as the amount of liability is not ascertainable, necessary provision can be made in the year in which the actual liability would arise.

For and on behalf of the Board,

M.A.M. RAMASWAMY

Chairman

Place : Chennai

Date : 20.08.20n3


Mar 31, 2010

The Directors take pleasure in presenting the Forty Seventh Annual Report and the Audited Accounts of the Company for the year ended 31st March, 2010.

FINANCIAL RESULTS;

(Rs. inlakhs)

Current Previous

Yearended Yearended

31/03/2010 31/03/2009

Profit before Depredation and Interest 51209 47064

LESS:

Depreciation 30808 42900

Interest 7679 5075

Profit before Tax 11712 (914)

LESS:

Provision for Income Tax

-Current 3080 5125

- Deferred (Assets)/Liabilities (21) (5678)

- Fringe Benefit Tax 0 60

Profit aftercurrent and deferred tax 9663 (421)

ADD:

Provision for Taxation no longer required 2000 139

Prior Period expenses (880) -

Surplus brought from previous year 20570 25304

Profit of Amalgamating company 71 -

Total avail able for appropriation 31424 25022

APPROPRIATIONS

Transfer to General Reserve - 1000

Proposed Dividend - 2950

Tan on the Proposed Dividend - 502

Balance Carried overto Balance Sheet 31424 20570

DIVIDEND

The Company achieved 3 major milestone of Production and Sales in excess of 4 Million Tonnes for the fifst time in its history in the financial year 2009-10. Your Company has also installed and commenced Commercial Production of its Second Line Cement manufacturing Unit at Ariyalur with a Capacity of 2 MTPA along with Captive Power Plant of 15 MWand Cement Grinding Unit with a Capacity of 0.5 MTPA at Pullyur during the financial year 2000-10.

Your Company Is currently working towards installation of a Cement manufacturing Unit with a Capacity of 2.5 MTPA alongwith Captive Thermal Power Plant of 30 M W capacity at Gulbarga DIstrict, Kamataka and a Cement manufacturing Unit with a Capacity of 2 MTPA alongwith a Captive Thermal Plant of 30 MW at Karikkali. These two projects would involve substantial Capital investment in excess of Rs.1000 crores and realization from sale of Cement during the financial year 2010-11 have substantially reduced due to the sluggish market conditions. In these circumstances, it would be in the best interest of the company to conserve its internal Accruals to fund these Projects soas to minimize the Loan from Banks / Institution.

In view of the above and taking into accountthe long term benefit to the Shareholders, your Soard of Directors have not recommended Dividend for the financial year 2009-10.

PRODUCTION AND SALES FOR THE YEAR 1009-10

MT

Clinker produced - 3029280

Cement produced - 4003468

Cement and Clinker Sales - 4061789

OPERATIONS

This is covered under the topic Management Discussion and Analysis.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

As required under Section 217 (i) (e ) of the Companies Act, 1956, the details regarding Energy Conservation, Technology Absorption; Foreign Exchange earnings and outgo are given in the Annexure hereto.

STATUTORY INFORMATION REGARDING EMPLOYEES

The particulars regarding employees falling within the purview of Section 217 (2-A) of the Companies Act, 1956 and the Rules made there under, are mentioned In the annexure hereto.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to Section 217 (2- AA) of the Companies Act, 1956, the Directors confirm that:

(l) in the preparati on of the Annua I Accou ntsr the applicable Accounting Standards had been followed.

(ii) The Directors had selected such accounting

policies and applied them consistently and made Judgements and estimates that are reasonable

and prudent so as to jives true and fair view of the sta te of affa i rs of th e Co m pany all he end of the Fina nciaI Year and of the pnofit or loss of the Company for that period,

(lii) The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

(iv) The Directors had prepared the Annual Accounts on a going concern basis.

CORPORATE GOVERN ANCE

As per the provisions of the Listing Agreement with Madras Stock Exchange Ltd. and the National Stock Exchange of India Ltd., where the Companys Equity.

Shares are listed, a Report on Corporate

Governance is given in en Annexure hereto.

DIRECTORS

Sri, R. Krishna moor thy and Sri. K. Ganapathy, Directors retire under Clause 102 of the Articles of Associatio n of t he Co m pany a nd bei ngelIgl ble, offer themselves for re - appointment.

The term of Office of Sri M.A.M.R, Muthiah, as

Managing Director of the Company is due to complete on the 27th September, 2010- It is proposed to re-appoint him as the Managing Director of the Company for a period of three years as per the applicable provisions and Schedule XIII of the Companies Act, 1056 with effect from 18th September, iotd.

AUDITORS

The Auditors, M/s P. B. Vljayaraghavan & Co., M/s Soundararajan & Co., and M/s Krishaan & Co., Chartered Accountants retire at the ensuing Annual General Meeting and they are eligible for re- appointment.

The Auditors are cor re nth/ paid a remuneration of Rs, 1,50,000/- each, besides out of pockei expenses. Now In view of the increased work foad and additional compliance requirements, the Board recommended an increase of Rs.50,ooq/- on the remuneration to each of the Auditors, i.e. from Rs.1,50,000/- to Rs.2,00,000/- each, besides out of pocket expenses. The approval of the Shareholders of the Company at the ens ure Annual General Meeting is required for their re- appointment and fixation of remuneration.

Auditors Report:

Regarding the liability, if nay, under the provisions of fate Packaging Materials (Compulsory use in the Packing Commodities) Act, ia&j, the Note No. 0 ?/ the Notes forming part of the Accounts is self- explanatory and the Directors opine that as the amount of liability is not ascertainable, necessary provision can be made in the year in which the actual liability would arise,

ACKNOWLEDGEMENT

The Board of Directors wish to thank all the Shareholders, Government Authorities and Financial Institutions and Bankers, Suppliers, Customers and all the categories of Employees for the Continued assistance, support and direction to the company during the year under review.

For and on behalf of the Board,

M.A.M. RAMASWAMY

Place: Chennai Chairman Date : 27th July, 2010

 
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