Home  »  Company  »  Coastal Corporation  »  Quotes  »  Directors Report
Enter the first few characters of Company and click 'Go'

Directors Report of Coastal Corporation Ltd.

Mar 31, 2014

The Members

Coastal Corporation Limited

Visakhapatnam.

The Directors have pleasure in presenting the Thirty Third Annual Report on the business and operations of the Company together with the Audited Statement of Accounts for the Financial Year ended 31st March, 2014 and the report of the Auditors thereon.

1. FINANCIAL RESULTS :

Year Ended Year Ended 31.03.2014 31.03.2013 Rs. Rs.

Sales 206,06,04,498 143,14,60,283

Interest 22,05,238 5,32,501

Other Income including Operating Income 24,06,80,401 15,41,28,435

Total Income 230,34,90,137 158,61,21,219

Less : Expenditure 212,22,23,435 149,38,20,496

Profit before Depreciation and Taxation 18,12,66,702 9,23,00,723

Less : Depreciation 1,56,34,498 1,00,19,198

Profit before Taxation 16,56,32,204 8,22,81,525

Less: Provision for Tax 5,66,90,231 3,01,90,639

Less: Prior Period Adjustments 21,926 5,890

Net Profit After Ta x & Prior period adjustments (a 10,89,20,048 5,20,84,996

Balance brought forward from last year(b) 10,30,86,063 7,40,01,067

Less : Transfer to General Reserve(c) 1,60,00,000 1,00,00,000

Less : Transfer to Capital Redemption Reserve(d) - 1,30,00,000

Balance Carried to Balance Sheet(a b-c-d) 19,60,06,111 10,30,86,063



2. REVIEW OF OPERATIONS :

During the year under review, the Company has earned an income of Rs. 230,34,90,137/- as compared to Rs 158,61,21,219/- during the previous year and the expenditure incurred amounted to Rs.212,22,23,435/- as against Rs. 149,38,20,497/- during the previous year. The deprecia- tion provided for the reporting year was Rs.1,56,34,498/- as compared to Rs. 1,00,19,198/- during the previous year. Hence, Net Profit after tax was amounted to Rs.10,89,20,048/- as compared to Rs. 5,20,84,995/- during the previous year. The Company has achieved these results by availing the opportunities in export of marine products to various countries and maintaining the stabilized dollar value.

Still, the efforts of Managerial Directors & Key Managerial Personnel have been continuing for effective operations and increasing the business of the company by improving the exports to various countries. The Company has identified viable parties for increasing the exports and the business of the company by adding more products for exporting to various other countries. Further, the Company has taken the necessary steps to add more new business activities of tuna fishing, processing and exporting to USA, Europe and Japan after acquiring the company as fully owned subsidiary company. Hence, the Company expects more business and prof- its in the years to come.

3. DIVIDEND:

The Company has not recommended any dividend in view of maintaining sound cash liquidity position for immediate requirements of the business, working capital for increasing the busi- ness of the Company and also to maintain the debt equity ratio for availing more loan/credit facilities from the banks and financial institutions from time to time.

4. CREDIT & GUARANTEE FACILITIES:

The Company has been availing Packing Credit limits and Term Loan and other facilities from Bank of India, Main Branch, Visakhapatnam.

5. AWARDS/CERTIFICATIONS:

CRISIL has assigned CRISIL BBB-/Stable Credit Rating for Bank Loan facilities for Long Term Loan and CRISIL A3 Credit Rating for short term Loan facilities provided by the Bank.

6. DEPOSITS:

The Company has not accepted any Deposits from the public attracting the provisions of Section 58A of the Companies Act, 1956 during the financial year.

7. INSURANCE:

All the assets of the Company wherever necessary and to the extent required have been adequately insured.

8. EMPLOYEE RELATIONS:-

The relationship with the staff and workers continued to be cordial during the entire year. The Directors wish to place on record their appreciation of the valuable work done and co-operation extended by them at all levels. Further, the Company has been in touch relating to recruitment of required personnel from time to time.

9. PARTICULARS AS PER SECTION 217(2A) OF THE COMPANIES ACT, 1956:

Particulars of employees as required by the Provisions of Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 are not given as your Company has not paid any remuneration attracting these provisions.

10. PARTICULARS REGARDING ENERGY CONSERVATION, TECHNOLOGY ABSORPTION ETC:

Your Company continues to explore all possible avenues to reduce energy consumption.

As your Company is covered in the Schedule to the Companies (Disclosures of Particulars in the Report of the Board of Directors) Rules, 1988, read with Section 217(1)(e) of the Companies Act, 1956, the details under Form ''A'' are furnished as an Annexure-I.

11. FOREIGN EXCHANGE EARNINGS AND OUTGO:

In accordance with the provisions of Section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, the information relating to foreign exchange earnings and outgo is provided as under :

Particulars 2013-2014 2012-2013 Rs. Rs.

Foreign Exchange Earnings (FOB) 1,98,31,86,504/- 96,26,31,954/-

Expenditure incurred in Foreign Currency :

1. Antidumping Fee 5,86,70,529/- 95,96,139/-

2. Marine Rejection Insurance 32,86,130/- 52,51,320/-

3. Export Claims 2,97,438/- 6,78,566/-

4. Commission 3,62,495/- 3,32,247/-

5. B.A.P. Audit fee 3,49,377/- 2,95,994/-

6. Travelling Expenses 8,55,979/- 1,12,168/-

7.Shrimp Council Sponsorships USA 191,729/- Nil

8. Avalon Risk Management insurance Agency LLC 43,54,761/- Nil

9. Imported Spares (including for Capital Goods spares worth of Rs. 23,06,880/- have been received) 1,07,80,234/- Nil

12. DIRECTORS'' RESPONSIBILITY STATEMENT:

Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956 with respect to Directors Responsibility Statement, it is hereby confirmed that:

i. in the preparation of the annual accounts for the year ended 31st March, 2014, the applicable accounting standards had been followed along with proper explanation relating to material departures ;

ii. the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as on 31st March, 2014 and of the profit or loss of your Company for that period;

iii. 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, and;

iv. The Directors had prepared the annual accounts for the financial year ended 31st March, 2014 on a going concern basis.

13. DIRECTORS:

(a) Pursuant to the provisions of Section 152 of the Companies Act, 2013(the Act") and the Articles of Association of the Company Smt. Jeeja Valsaraj retires by rotation at the ensuing Annual General Meeting and being eligible, offer herself for re-appointment. Notice convening the Annual General Meeting includes the proposal for his re -appointment as a Director

(b) As on the date of this report, the Company''s Board consists of the following Non-Execu- tive Independent Directors:

1. Sri Sirangu Rajaram

2. Prof.Kamireddi Venkateswara Rao

3. Sri Dilip Anant Biwalkar

The Period of office of the above mentioned Directors was liable to determination by retirement of Directors by rotation under the erstwhile Companies Act, 1956. In terms of Section 149 and other applicable provisions of the Companies Act, 2013, the aforementioned Directors are being eligible and offer themselves for appointment, are proposed to be appointed as Indepen- dent Directors for a term of 5 (Five) consecutive years commencing upto 29th September, 2019.

Brief profile of the proposed appointees together with other disclosures in terms of clause 49 of the Listing Agreement are part of the Annexure to the Notice of the 33rd Annual General Meeting.

14. Corporate Social Responsibility (CSR):

Pursuant to the provisions of Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, the Company has consti- tuted a CSR Committee. The Company has formulated a CSR Policy for adoption.

15. CORPORATE GOVERNANCE:

Corporate Governance is given as an Annexure-II.

16. MANAGEMENT DISCUSSION AND ANALYSIS:

Management Discussion & Analysis is given as an Annexure-III

17. COMPLIANCE CERTIFICATE:

The Compliance Certificate referred to in the proviso to sub-Section (1) of Section 383A of the Companies Act, 1956 was obtained and enclosed as Annexure-IV.

18. INTERNAL AUDIT:

The Internal Audit of the Company is done by CA.R.S.V.Raman, Chartered Accountant, Visakhapatnam, who is acting in independent manner and also responsible for regulatory and legal requirements relating to operational processes and internal systems. He reports directly to the Board of Directors. His name has been recommended for re-appoint- ment as Internal Auditors of the company for the Financial Year 2014-15.

19. AUDITORS:

The present Statutory Auditors of the Company CA V.V.S. Bhagavan, Chartered Accountant, Hyderabad, (Membership No. 8571 ) retire at the conclusion of the ensuing Annual General Meeting and being eligible for re-appointment. But, he has given his consent for appointment of M/s.K.P.Rao Associates, Chartered Accountants, Hyderabad due to organizational conve- nience. The Company has received a certificate to the effect that their appointment, if made, will be within the limits under Section 141 of the Companies Act, 2013. In view of this, the Board recommends the appointment of M/s.. K.P.Rao Associates, Chartered Accountants, Hyderabad as Statutory Auditors of the Company for the next 3 (Three) years from i.e. 2014-15 to 2016-17.

20. AUDITORS'' REPORT:

The Auditor''s Report is self Explanatory and does not require any comments from the Board of Directors.

21. COST ACCOUNTING RECORDS:

Pursuant to the provisions of Section 233B of the Companies Act, 1956 and in terms of General Circular No. 15/2011 dated 11th April''2011 and with the prior approval of the Central Government, M/s. A.S.Rao&Co., Practicing Cost Accountants, Visakhapatnam were appointed as Cost Auditors of the Company to conduct audit of Cost Records of Packaged Food Prod- ucts for the year ended 31st March''2014, Cost Audit Reports would be submitted to the Central Government within the prescribed time.

Pursuant to Rule 5 of the Companies (Cost Audit Report) Rules, 2011 cost Audit Reports for Packaged Food Products for the year ended 31st March''2013 were filed with the Central Government.

22. STATUTORY COMPLIANCE:

The Company has complied with the concerned provisions relating to statutory compliance with regard to the affairs of the Company in all aspects.

23. ACKNOWLEDGEMENTS:

Your Directors wish to place on record their appreciation of the continuous assistance and co- operation extended to your Company by the Customers, suppliers, dealers, Financial Institu- tions, Customs Authorities, Local Bodies, Overseas Bodies, other Corporate Bodies & Au- thorities and other Agencies. Your Directors also have pleasure in placing on record their appreciation for the assistance extended by the Company''s Bankers viz. Bank of India, Visakhapatnam. Your Directors also wish to acknowledge the continued support and confi- dence reposed in the management by the shareholders. Your Directors also wish to place on record and sincerely acknowledge the services rendered by the employees at all levels. Thanks are also extended to our advisors, professionals, well-wishers and all other persons dealing with the Company.

By Order of the Board For COASTAL CORPORATION LIMITED

Sd/- (T. VALSARAJ) MANAGING DIRECTOR

Sd/- Place: Visakhapatnam (G.V.V. SATYANARAYANA) Date :30.08.2014 DIRECTOR-FINANCE

 
Subscribe now to get personal finance updates in your inbox!