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Directors Report of Kakatiya Cement Sugar & Industries Ltd.

Mar 31, 2014

To The Members

The Directors have pleasure in presenting the 35th Annual Report together with the Audited Accounts for the year ended 31st March 2014.

FINANCIAL RESULTS

The Financial Results for the year ended 31st March, 2014 are summarised below:



(` in Lakhs)

Particulars 2013-14 2012-13

Income (Sale and

other Income) 20324.37 18729.13

Profit before Depreciation,

Interest & Taxes 1678.01 3124.45

Depreciation 713.77 730.07

Interest 46.04 6.21

Provision for Taxation 178.68 937.74

Provision for Deferred

Taxation (144.54) (160.61)

Profit after Taxation 884.06 1611.04

Profit brought forward from Previous year 11518.79 10363.32

APPROPRIATIONS

Transfer to General

Reserve 88.40 210.00

Proposed Dividend 209.89 209.89

Corporate Tax on Dividend 35.67 35.68

Balance carried over to Balance Sheet 12068.89 11518.79

Segment-wise performance has been furnished under Notes on Accounts.

DIVIDEND

Your Directors are pleased to recommend for your consideration a Dividend of ` 2.70 per equity share for the year ended 31.03.2014, as against ` 2.70 per equity share in the previous year aggregating an amount of ` 245.56 lakhs including Dividend Distribution Tax.

PERFORMANCE OF THE YEAR UNDER REVIEW

Cement Division:

During the year under review, the Cement Division has produced 2,51,535 MT of cement as against 2,69,966 MT of cement for the previous year. The profit for the Division was ` 475.93 lakhs as against ` 1190.51 lakhs for the previous year.

Sugar Division:

The Sugar Division crushed 2,20,815 MT of sugarcane for the current season as against 2,73,281 MT for the previous season. The recovery rate was 10.20% compared to 10.08% for the previous season. The Loss for the Division was ` 1038.87 lakhs as against profit of ` 746.97 lakhs for the previous year.

Power Division:

During the year under review, the Power Division has generated 7,47,99,524 KWH against 6,78,57,924 KWH of power for the previous year. The Loss for the Division was ` 1446.99 lakhs as against loss of ` 326.44 lakhs for the previous year.

CURRENT YEAR OUTLOOK:

Cement Division:

The outlook for cement industry is challenging in terms of decreasing margins due to rising input costs, competitive selling prices. However, with the bifurcation of A.P. in to two states, and development of new capital, there is likely to be spurt in the demand for cement and other infrastructure related products. As such the coming years performance is estimated to be good.

Sugar Division:

Depending on a good monsoon the Sugarcane crop in the factory zone is likely to remain stable as last year. We estimate to crush over 250,000 lakh MT during the crushing season 2014-15

Power Division:

The matters relating to down ward revision of tariff by the APERC on the Power sales to APTRANSCO, and PLF ceiling, contested in the Courts by the Company are pending. Much depends on the power policy of the new government.

INSURANCE:

All the properties of the Company including its buildings, Plant and Machinery and Stocks wherever required have been adequately insured.

PARTICULARS OF EMPLOYEES:

The information required under Section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules 1975, as amended, forms part of this Report. However, the report and accounts are being sent to all the shareholders of the company excluding the above information. Those shareholders, who desire to obtain these particulars, would be provided the same upon receiving such request.

DIRECTORS'' RESPONSIBILITY STATEMENT:

The Board of Directors of the Company hereby declares and states that -

1. In the preparation of annual accounts, the applicable accounting standards have been followed and there were no material departures there from.

2. 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 status of the Company as on 31st March, 2014 and Profit & Loss Account of the Company for the year ended as on 31st March, 2014.

3. 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 preventing and detecting fraud and other irregularities.

4. The accounts were prepared on a going concern basis.

ENVIRONMENTAL PROTECTION:

The Company consciously makes efforts to preserve the environment and control the pollution from time to time.

Planting of saplings and seedlings in and around the factories and colonies is being done on a continuous basis, so as to develop green belt around the plant to improve the environment.

AUDITORS:

M/s. M. ANANDAM & CO., Chartered Accountants, Secunderabad, the Auditors of the Company retire at the conclusion of this Annual General Meeting and they are eligible for re- appointment.

COST AUDIT:

For the year ended 31st March 2014, with the approval of Central Government, M/s. Narasimha Murthy & Co., Cost Accountants, Hyderabad have been appointed to conduct the Cost Audit. In respect of financial year 2012-2013 Cost Audit Report was filed on 23.09.2013. In respect of 2013-2014 it will be filed before the due date i.e. 30th September 2014.

ACKNOWLEDGEMENTS:

Your Directors appreciate the support and the cooperation received from the State Government, NEDCAP, APTRANSCO and the Central Government for the Company''s growth and development.

Your Directors would like to convey the deep appreciation to all the employees and workers of the Company for their sustained effort and wholehearted co-operation throughout the year.

Your Directors thank the Distributors, Dealers and Suppliers for their continuous support and active involvement.

Finally your Directors record their deep sense of gratitude to all the Shareholders for the abundant confidence reposed in the Board of Directors.



For and on behalf of the Board

P. Venkateswarlu

Place : Hyderabad Chairman &

Date : 26th May 2014 Managing Director


Mar 31, 2013

To The Members

The Directors have pleasure in presenting the 34th Annual Report together with the Audited Accounts for the year ended 31st March 2013.

FINANCIAL RESULTS

The Financial Results for the year ended 31st March, 2013 are summarised below:

(RS. in Lakhs)

Particulars 2012-13 2011-12

Income (Sale and other Income) 18729.13 17297.96

Profit before Depreciation, Interest & Taxes 3124.45 3680.52

Depreciation 730.07 736.31

Interest 6.21 9.59

Provision for Taxation 937.74 1034.34

Provision for Deferred Taxation (160.61) (154.36)

Profit after Taxation 1611.04 2054.64

Profit brought forward from Previous year 10363.32 8762.62

APPROPRIATIONS

Transfer to General

Reserve 210.00 210.00

Proposed Dividend 209.89 209.89

Corporate Tax on Dividend 35.68 34.05

Balance carried over to

Balance Sheet 11518.79 10363.32

Segment-wise performance has been furnished under Notes on Accounts.

DIVIDEND

Your Directors are pleased to recommend for your consideration a Dividend of RS. 2.70 per equity share for the year ended 31.03.2013, as against RS. 2.70 per equity share in the previous year aggregating an amount of RS. 245.56 lakhs including Dividend Distribution Tax.

PERFORMANCE OF THE YEAR UNDER REVIEW

Cement Division:

During the year under review, the Cement Division

has produced 2,69,966 MT of cement as against 2,66,968 MT of cement for the previous year. The profit for the Division was RS. 1971.20 lakhs as against RS. 3114.05 for the previous year.

Sugar Division:

The Sugar Division crushed 2,73,281 MT of sugarcane for the current season as against 2,24,189 MT for the previous season. The recovery rate was 10.08% compared to 9.50% for the previous season. The Profit for the Division was RS. 749.80 lakhs as against loss of RS. 242.44 lakhs for the previous year.

Power Division:

During the year under review, the Power Division has generated 6,78,57,924 KWH against 6,72,82,462 KWH of power for the previous year. The Loss for the Division was RS. 326.44 lakhs as against profit of RS. 63.02 lakhs for the previous year.

CURRENT YEAR OUTLOOK:

Cement Division:

The outlook for cement industry is challenging in terms of thinning margins due to rising inputs, pressure on capping selling prices due to supply - demand equation and overall sluggishness in housing and infrastructure projects. However, the management is confident of sustained performance by maintaining its customer base for the coming year.

Sugar Division:

Sugarcane crop in the factory zone is likely to improve and estimated to crush around 275,000 lakh MT during the crushing season 2013-14

Power Division:

The matters relating to down ward revision of tariff by the APERC on the Power sales to APTRANSCO, and PLF ceiling, contested in the Courts by the Company are pending. Viable performance is contingent upon revised tariff which is awaited from APERC.

INSURANCE:

All the properties of the Company including its buildings, Plant and Machinery and Stocks wherever required have been adequately insured.

PARTICULARS OF EMPLOYEES:

The information required under Section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules 1975, as amended, forms part of this Report. However, the report and accounts are being sent to all the shareholders of the company excluding the above information. Those shareholders, who desire to obtain these particulars, would be provided the same upon receiving such request.

DIRECTORS'' RESPONSIBILITY STATEMENT:

The Board of Directors of the Company hereby declares and states that -

1. In the preparation of annual accounts, the applicable accounting standards have been followed and there were no material departures therefrom.

2. 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 status of the Company as on 31st March, 2013 and Profit & Loss Account of the Company for the year ended as on 31st March, 2013.

3. 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 preventing and detecting fraud and other irregularities.

4. The accounts were prepared on a going concern basis.

ENVIRONMENTAL PROTECTION:

The Company consciously makes efforts to preserve the environment and control the pollution from time to time.

Planting of saplings and seedlings in and around the factories and colonies is being done on a continuous basis, so as to develop green belt around the plant to improve the environment.

AUDITORS:

M/s. M. ANANDAM & CO., Chartered Accountants, Secunderabad, the Auditors of the Company retire at the conclusion of this Annual General Meeting and they are eligible for re-appointment.

COST AUDIT:

For the year ended 31st March 2013, with the approval of Central Government, M/s. Narasimha Murthy & Co., Cost Accountants, Hyderabad have been appointed to conduct the Cost Audit. In respect of financial year 2011-2012 Cost Audit Report was filed on 04.01.2013. In respect of 2012- 2013 it will be filed before the due date i.e. 30th September 2013.

ACKNOWLEDGEMENTS:

Your Directors appreciate the support and the cooperation received from the State Government, NEDCAP, APTRANSCO and the Central Government for the Company''s growth and development.

Your Directors would like to convey the deep appreciation to all the employees and workers of the Company for their sustained effort and wholehearted co-operation throughout the year.

Your Directors thank the Distributors, Dealers and Suppliers for their continuous support and active involvement.

Finally your Directors record their deep sense of gratitude to all the Shareholders for the abundant confidence reposed in the Board of Directors.

For and on behalf of the Board

P. Venkateswarlu

Place : Hyderabad Chairman &

Date : 27.05.2013 Managing Director


Mar 31, 2012

The Members

The Directors have pleasure in presenting the 33rd Annual Report together with the Audited Accounts for the year ended 31st March 2012.

FINANCIAL RESULTS

The Financial Results for the year ended 31st March, 2012 are summarized below:

(Rs. in Lakhs)

Particulars 2011-12 2010-11

Income (Sale and 17297.96 10308.69 other Income)

Profit before Depreciation, 3680.52 1163.28 Interest & Taxes

Depreciation 736.31 742.61

Interest 9.59 34.42

Provision for Taxation 1034.34 131.00

Provision for Deferred (154.36) (135.90) Taxation

Profit after Taxation 2054.64 391.15

Profit brought forward 8762.62 8655.41 from Previous year

APPROPRIATIONS

Transfer to 210.00 40.00

General Reserve

Proposed Dividend 209.89 209.89

Corporate Tax 34.05 34.05

on Dividend

Balance carried over to 10363.32 8762.62 Balance Sheet

Segment-wise performance has been furnished under Financial Statements.

DIVIDEND

Your Directors are pleased to recommend for your consideration a Dividend of Rs. 2.70 per equity share for the year ended 31.03.2012, as against Rs. 2.70 per equity share in the previous year aggregating an amount of Rs. 243.94 lakhs including Dividend Distribution Tax.

PERFORMANCE OF THE YEAR UNDER REVIEW Cement Division:

During the year under review, the Cement Division has produced 2,66,968 MT of cement as against 2,52,992 MT of cement for the previous year. The profit for the Division was Rs. 3114.05 lakhs as against Rs. 830.46 lakhs for the previous year.

Sugar Division:

The Sugar Division crushed 2,24,189 MT of sugarcane for the current season as against 1,24,458 MT for the previous season. The recovery rate was 9.50% compared to 9.53% for the previous season. The loss for the Division was Rs. 242.44 lakhs as against loss of Rs. 747.86 lakhs for the previous year.

Power Division:

During the year under review, the Power Division has generated 6,72,82,462 KWH against 6,11,34,753 KWH of power for the previous year. The Profit for the Division was Rs.63.02 lakhs as against Rs.303.65 lakhs for the previous year.

CURRENT YEAR OUTLOOK:

Cement Division:

In the first three months of the current year i.e. April - June 2012, the production of cement was 63,187 MT as against 62,020 MT of the first three months of the previous year. Your Directors expect that current price realizations will sustain during the remaining part of the current year.

Sugar Division:

Sugarcane crop in the factory zone is likely to improve and estimated to crush around 2,00,000 lakh MT during the crushing season 2012-13.

Power Division:

The matters relating to down ward revision of tariff by the APERC on the Power sales to APTRANSCO, and PLF ceiling, contested in the Courts by the Company are pending.

FIXED DEPOSITS:

The company has no fixed deposits. All Fixed deposits matured have been repaid in full and there are no unclaimed deposits as on 31.3.2012.

INSURANCE:

All the properties of the Company including its buildings, Plant and Machinery and Stocks wherever required have been adequately insured.

PARTICULARS OF EMPLOYEES:

The information required under Section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules 1975, as amended, forms part of this Report. However, the report and accounts are being sent to all the shareholders of the company excluding the above information. Those shareholders, who desire to obtain these particulars, would be provided the same upon receiving such request.

DIRECTORS' RESPONSIBILITY STATEMENT:

The Board of Directors of the Company hereby declares and states that -

1. In the preparation of annual accounts, the applicable accounting standards have been followed and there were no material departures therefrom.

2. 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 status of the Company as on 31st March, 2012 and Profit & Loss Account of the Company for the year ended as on 31st March, 2012.

3. 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 preventing and detecting fraud and other irregularities.

4. The accounts were prepared on a going concern basis.

ENVIRONMENTAL PROTECTION:

The Company consciously makes efforts to preserve the environment and control the pollution from time to time.

Planting of saplings and seedlings in and around the factories and colonies is being done on a continuous basis, so as to develop green belt around the plant to improve the environment.

AUDITORS:

M/s. M. ANANDAM & CO., Chartered Accountants, Secunderabad, the Auditors of the Company retire at the conclusion of this Annual General Meeting and they are eligible for re-appointment.

COST AUDIT:

For the year ended 31st March 2012, with the approval of Central Government, M/s. Narasimha Murthy & Co., Cost Accountants, Hyderabad have been appointed to conduct the Cost Audit. In respect of financial year 2010-2011 Cost Audit Report was filed on 14.09.2011. In respect of 2011- 2012 it will be filed before the due date i.e. 30th September 2012.

ACKNOWLEDGEMENTS:

Your Directors appreciate the support and the cooperation received from the State Government, NEDCAP, APTRANSCO and the Central Government for the Company's growth and development.

Your Directors would like to convey the deep appreciation to all the employees and workers of the Company for their sustained effort and wholehearted co-operation throughout the year.

Your Directors thank the Distributors, Dealers and Suppliers for their continuous support and active involvement.

Finally your Directors record their deep sense of gratitude to all the Shareholders for the abundant confidence reposed in the Board of Directors.

For and on behalf of the Board

P. Venkateswarlu

Place : Hyderabad Chairman &

Date : 20.08.2012 Managing Director


Mar 31, 2011

The Members

The Directors have pleasure in presenting the 32nd Annual Report together with the Audited Accounts for the year ended 31st March 2011.

FINANCIAL RESULTS

The Financial Results for the year ended 31st March, 2011 are summarised below:

(Rs in Lakhs)

Particulars 2010-11 2009-10

Income (Sale and 10308.69 12628.75

other Income)

Profit before Depreciation, 1163.28 2339.45

Interest & Taxes

Depreciation 742.61 803.60

Interest 34.42 57.09

Provision for Taxation 131.00 516.82

Provision for Deferred (135.90) (157.16)

Taxation

Profit after Taxation 391.15 1119.10

Profit brought forward 8655.41 7931.06 from Previous year

APPROPRIATIONS

Transfer to 40.00 150.00 General Reserve

Proposed Dividend 209.89 209.89

Corporate Tax 34.05 34.86 on Dividend

Balance carried over to 8762.62 8655.41

Balance Sheet

Segment-wise performance has been furnished under Notes on Accounts.

DIVIDEND

Your Directors are pleased to recommend for your consideration a Dividend of Rs 2.70 per equity share for the year ended 31.03.2011, as against Rs 2.70 per equity share in the previous year aggregating an amount of Rs 243.94 lakhs including Dividend Distribution Tax.

PERFORMANCE OF THE YEAR UNDER REVIEW

Cement Division:

During the year under review, the Cement Division has produced 2,52,992 MT of cement as against 2,58,863 MT of cement for the previous year. The profit for the Division was Rs 830.46 lakhs as against Rs 980.65 lakhs for the previous year.

Sugar Division:

The Sugar Division crushed 1,24,458 MT of sugarcane for the current season as against 48,575 MT for the previous season. The recovery rate was 9.53% compared to 9.19% for the previous season. The loss for the Division was Rs 747.86 lakhs as against Rs 154.26 lakhs profit for the previous year.

Power Division:

During the year under review, the Power Division has generated 6,11,34,753 KWH against 4,69,03,336 KWH of power for the previous year. The Profit for the Division was Rs 303.65 lakhs as against Rs 343.85 lakhs for the previous year.

CURRENT YEAR OUTLOOK:

Cement Division:

In the first three months of the current year i.e. April - June 2011, the production of cement was 62,020 MT as against 64,122 MT of the first three months of the previous year. Your Directors expect that current price realisations will sustain during the remaining part of the current year.

Sugar Division:

Sugarcane crop in the factory zone is likely to improve and estimated to crush around 2,00,000 MT during the crushing season 2011-12.

Power Division:

The matters relating to down ward revision of tariff by the APERC on the Power sales to APTRANSCO, and PLF ceiling, contested in the Courts by the Company are pending.

FIXED DEPOSITS:

The aggregate amount of deposits accepted by the Company as on 31.03.2011 stood at Rs 20.06 lakhs. There were no fixed deposits, which were matured but not paid, other than unclaimed deposits, as on that date.

INSURANCE:

All the properties of the Company including its buildings, Plant and Machinery and Stocks wherever required have been adequately insured.

PARTICULARS OF EMPLOYEES:

The information required under Section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules 1975, as amended, forms part of this Report. However, the report and accounts are being sent to all the shareholders of the company excluding the above information. Those shareholders, who desire to obtain these particulars, would be provided the same upon receiving such request.

DIRECTORS' RESPONSIBILITY STATEMENT:

The Board of Directors of the Company hereby declares and states that -

1. In the preparation of annual accounts, the applicable accounting standards have been followed and there were no material departures therefrom.

2. 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 status of the Company as on 31st March, 2011 and Profit & Loss Account of the Company for the year ended as on 31st March, 2011.

3. 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 preventing and detecting fraud and other irregularities.

4. The accounts were prepared on a going concern basis.

ENVIRONMENTAL PROTECTION:

The Company consciously makes efforts to preserve the environment and control the pollution from time to time.

Planting of saplings and seedlings in and around the factories and colonies is being done on a continuous basis, so as to develop green belt around the plant to improve the environment.

AUDITORS:

M/s. M. ANANDAM & CO., Chartered Accountants, Secunderabad, the Auditors of the Company retire at the conclusion of this Annual General Meeting and they are eligible for re-appointment.

COST AUDIT:

For the year ended 31st March 2011, with the approval of Central Government, M/s. Narasimha Murthy & Co., Cost Accountants, Hyderabad have been appointed to conduct the Cost Audit. In respect of financial year 2009-2010 Cost Audit Report was filed on 27.09.2010. In respect of 2010-2011 it will be filed before the due date i.e. 30th September 2011.

ACKNOWLEDGEMENTS:

Your Directors thank the State Bank of India, Industrial Finance Branch, Somajiguda, Hyderabad and Andhra Bank, Specialised Corporate Finance Branch, Somajiguda, Hyderabad for extending the support towards working capital to meet the requirements of its operations.

Your Directors appreciate the support and the cooperation received from the State Government, NEDCAP, APTRANSCO and the Central Government for the Company's growth and development.

Your Directors would like to convey the deep appreciation to all the employees and workers of the Company for their sustained effort and wholehearted co-operation throughout the year.

Your Directors thank the Distributors, Dealers and Suppliers for their continuous support and active involvement.

Finally your Directors record their deep sense of gratitude to all the Shareholders for the abundant confidence reposed in the Board of Directors.

For and on behalf of the Board

P. VENKATESWARLU Place : Hyderabad Chairman &

Date : 24.08.2011 Managing Director


Mar 31, 2010

The Directors have pleasure in presenting the 31st Annual Report together with the Audited Accounts for the year ended 31st March 2010.

FINANCIAL RESULTS

The Financial Results for the year ended 31st March, 2010 are summarised below:

(Rs. in Lakhs)

Particulars 2009-10 2008-09

Income (Sale and 12167.51 14307.39

other Income)

Profit before 2339.45 3794.65

Depreciation,

Interest & Taxes

Depreciation 803.60 781.64

Interest 57.09 301.54

Provision for Taxation 516.82 768.74

Provision for Deferred (157.16) (175.67)

Taxation

F B T - 8.08

Profit after Taxation 1119.10 2110.32

Profit brought forward 7931.06 6341.31

from Previous year

APPROPRIATIONS

Transfer to General 150.00 275.00

Reserve

Proposed Dividend 209.89 209.89

Corporate Tax on 34.86 35.68

Dividend

Balance carried over

to Balance Sheet 8655.41 7931.06

Segment-wise performance has been furnished under Notes on Accounts.

DIVIDEND

Your Directors are pleased to recommend for your consideration a Dividend of Rs. 2.70 per equity share for the year ended 31.03.2010, as against Rs.2.70 per equity share in the previous year aggregating an amount of Rs.244.75 including Dividend Distribution Tax.

PERFORMANCE OF THE YEAR UNDER REVIEW

Cement Division:

During the year under review, the Cement Division has produced 2,58,863 MT of cement as against 2,36,612 MT of cement for the previous year. The profit for the Division was Rs.980.65 lakhs as against Rs.1,050.11 lakhs for the previous year.

Sugar Division:

The Sugar Division crushed 48,575 MT of sugarcane for the current season as against 86,996 MT for the previous season. The recovery rate was 9.19% compared to 9.59% for the previous season. The profit for the Division was Rs.154.26 lakhs as against Rs.817.69 lakhs for the previous year.

Power Division:

During the year under review, the Power Division has generated 4,69,03,336 KWH against 6,77,21,066 KWH of power for the previous year. The Profit for the Division was Rs.343.85 lakhs as against Rs.843.67 lakhs for the previous year.

CURRENT YEAR OUTLOOK:

Cement Division:

In the first three months of the current year i.e. April - June 2010, the production of cement was 64,122 MT as against 70,515 MT of the first three months of the previous year. Your Directors expect that current price realisations will improve during the remaining part of the current year.

Sugar Division:

Sugarcane crop in the factory zone is likely to improve and estimated to crush double the last year quantity during the crushing season 2010-11.

Power Division:

The matters relating to down ward revision of tariff by the APERC on the Power sales to APTRANSCO, and PLF ceiling, contested in the Courts by the Company are pending.

FIXED DEPOSITS:

The aggregate amount of deposits accepted by the Company as on 31.03.2010 stood at Rs.95.51 lakhs.

There were no fixed deposits, which were matured but not paid, other than unclaimed deposits, as on that date.

INSURANCE:

All the properties of the Company including its buildings, Plant and Machinery and Stocks wherever required have been adequately insured.

PARTICULARS OF EMPLOYEES:

The information required under Section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules 1975, as amended, forms part of this Report. However, the report and accounts are being sent to all the shareholders of the company excluding the above information. Those shareholders, who desire to obtain these particulars, would be provided the same upon receiving such request.

DIRECTORS RESPONSIBILITY STATEMENT:

The Board of Directors of the Company hereby declares and states that -

1. In the preparation of annual accounts, the applicable accounting standards have been followed and there were no material departures therefrom.

2. 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 status of the Company as on 31st March, 2010 and Profit & Loss Account of the Company for the year ended as on 31st March, 2010.

3. 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 preventing and detecting fraud and other irregularities.

4. The accounts were prepared on a going concern basis.

ENVIRONMENTAL PROTECTION:

The Company consciously makes efforts to preserve the environment and control the pollution from time to time.

Planting of saplings and seedlings in and around the factories and colonies is being done on a continuous basis, so as to develop green belt around the plant to improve the environment.

AUDITORS:

M/s. M. ANANDAM & CO., Chartered Accountants, Secunderabad, the Auditors of the Company retire at the conclusion of this Annual General Meeting and they are eligible for re-appointment.

COST AUDIT:

The Central Government had ordered audit of cost accounts relating to manufacture of cement. For the year ended 31st March 2010, with the approval of Central Government, M/s. Narasimha Murthy & Co., Cost Accountants, Hyderabad have been appointed to conduct the Cost Audit.

ACKNOWLEDGEMENTS:

Your Directors thank the State Bank of India, Industrial Finance Branch, Somajiguda, Hyderabad and Andhra Bank, Specialised Corporate Finance Branch, Somajiguda, Hyderabad for extending the support towards working capital to meet the requirements of its operations.

Your Directors appreciate the support and the cooperation received from the State Government, NEDCAP, APTRANSCO and the Central Government for the Companys growth and development.

Your Directors would like to convey the deep appreciation to all the employees and workers of the Company for their sustained effort and wholehearted co-operation throughout the year.

Your Directors thank the Distributors, Dealers and Suppliers for their continuous support and active involvement.

Finally your Directors record their deep sense of gratitude to all the Shareholders for the abundant confidence reposed in the Board of Directors.



For and behalf of the Board



Place : Hyderabad P. VENKATESWARLU

Date : 14.08.2010 Chairman & Managing Director

 
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