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

Directors Report of KSE Ltd.

Mar 31, 2014

Dear members,

The Directors are pleased to present the 50th Annual Report and the audited accounts for the financial year ended 31st March 2014.

Financial Highlights (Rs.in lakhs) For the year For the year ended 31.03.2014 ended 31.03.2013

Profit before Finance costs, Depreciation and amortisation expenses and Tax expenses 2,956.30 1,401.84

Less : Finance Costs 236.66 313.65

Depreciation and amortisation expenses 375.77 422.10

Tax expenses 806.51 1,418.94 200.79 936.54

Profit after tax for the current year 1,537.36 465.30

Opening balance of Surplus 251.11 260.19

1,788.47 725.49

Appropriations:

Transfer to General Reserve 700.00 100.00

Dividend 640.00 320.00

Dividend distribution tax 108.77 1,448.77 54.38 474.38

Closing balance of Surplus 339.70 251.11

Dividend

To celebrate the Golden Jubilee of the Company and also considering the profits for the current year, your Directors recommend a dividend of 200 % (Rs. 20.00 per share of Rs. 10 each) for the year ended 31st March, 2014 which, if approved at the ensuing annual general meeting, will be paid to those members whose names appear in the Register of Members of the Company as on 25.09.2014. In respect of shares held in dematerialised form, the dividend will be paid on the basis of beneficial ownership as per the details furnished by the Depositories for this purpose at the end of business hours as on 09.09.2014.

Operations

The over-all profit after tax is Rs. 1537.36 lakhs in year 2013-14 compared to Rs. 465.30 lakhs in the previous year. The turnover of the Company improved by 16 % from Rs. 697 crores to Rs. 806 crores during the year ended 31st March, 2014.

During the second half of 2013-14, large numbers of cattle were affected by wide spread disease which resulted in a drop of aggregate demand for cattle feed in Kerala and Tamil Nadu. This in turn had an impact on our expected volume of growth in sales. However, we could maintain the previous year volume through excellent quality of the product and effective after sales service. Cattle feed sales volume improved marginally from 3.99 lakhs tonnes to 4.01 lakhs tonnes in the same period. There was abnormal increase in the price of raw materials for cattle feed in the first half of the year and we had managed to avoid loss during that period by revising the selling price of feed suitably. In the second half of the year the ingredient prices had eased and we could generate good margins. The Animal feed division generated a profit of Rs. 1701.50 lakhs against Rs. 882.03 lakhs in the previous year.

The volume of cake processing had decreased from 73,000 tonnes in the previous year to 64,000 tonnes in the year under report. The copra cake was not available in sufficient quantity and we could not fall back on imports due to lack of price parity. However, the increase in the market price of coconut oil helped us to improve the profitability of cake processing division. The cake processing division reported in year 2012-13 a loss of Rs. 46.88 lakhs and this year we reported a profit of Rs. 784.44 lakhs in that Division.

In the Dairy division, the volume of sale of ice cream improved to 1123 kl. against 967 kl. in the previous year, registering a growth of 14 %. The profit of Dairy division for the year 2013-14 is Rs. 159.69 lakhs, which was at Rs. 163.96 lakhs in the previous year. There was an advantage for us on the difference in milk procurement price in Kerala and Tamil Nadu. Off late the gap between the two price has narrowed to almost nil and this may affect the profitability of the Dairy division as a whole in year 2014-15 unless there is upward correction in the selling price of milk.

After the downward trend, the ingredient prices is going up in the current year. We are having good demand for our cattle feed and are hopeful of suitable correction of selling price in tune with ingredient prices. We do not expect further reduction in the cost of cattle feed ingredients in the immediate future. We firmly believe that the sales volume of cattle feed will further improve in the current financial year. We expect to better our performance in Animal feed division, by optimising the feed formulation and making suitable adjustments in the selling prices to match the ingredient prices.

Since there is shortage in the availability of copra cake locally, we have made arrangements for import of copra cake to adjust the shortage of local supply. The market price of coconut oil is above Rs. 150/kg. The price of coconut oil, if continues on the higher side, will improve our margins and we are hopeful of a better performance of Cake Processing Division.

We are taking all steps to improve the market for ice cream by appointing new dealers in untapped areas to improve the volume of sales and thereby utilise more of the unused production capacity. We expect to improve the volume of sale of ice cream and thereby better the margins of Dairy division in the current year.

More information relating to the operations of the Company has been furnished in the Management Discussion and Analysis Report, as per Clause 49 of the Listing Agreement.

Awards and Recognitions

The Company has won the SEA Award constituted by Solvent Extractors'' Association of India for highest processor of coconut oil cake for the year 2012-13. This Award is being received by the Company for the past 23 years consecutively since the inception of the award.

Directors

Shri. K.C. Vijayaraghavan, Shri PD. Anto and Shri John Francis K. will retire by rotation at the ensuing annual general meeting and being eligible, offer themselves for re-appointment. The Board commend the appointment of Shri K.P John, Shri Jose Paul Thaliyath and Shri Joseph Xavier, the existing independent directors of the Company, as per Section 149 of Companies Act, 2013.

Board also commend the appointment of Mrs. Sathi A. Menon, a practicing chartered accountant, as Independent Director of the Company. With her appointment in the Board, the requirement of a woman director in the Board as per Section 149 of Companies Act, 2013 will also be complied with.

Directors'' Responsibility

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

(i) in the preparation of the annual accounts the applicable accounting standards have been followed along with proper explanation relating to material departures.

(ii) accounting policies have been selected and applied 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 of the Company for that year.

(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.

(iv) the annual accounts have been prepared on a going concern basis.

Corporate Governance

Corporate Governance Report, Management Discussion and Analysis Report and Certificate from Auditors on Corporate Governance have been furnished separately and form part of this report.

Auditors

M/s. Varma & Varma, Chartered Accountants will retire at the forthcoming Annual General Meeting and are eligible for re-appointment.

With the prior approval of Central Government, M/s. A. R. Narayanan & Co., Cost Accountants, Ernakulam have been appointed as Cost Auditors for the financial year 2013-14 and they will be submitting their Cost Audit Report with in the time limit stipulated.

Disclosure of Particulars

Information as per the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 are given in Annexure ''A'' forming part of this report.

Particulars of employees

As there are no employees who are drawing the specified remuneration, particulars of employees under Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 are not given.

Acknowledgement

Your Directors wish to place on record their sincere appreciation for the assistance and co-operation received from shareholders, bankers, especially ICICI Bank, Registrars and Share Transfer Agents, customers, distributors and suppliers. Board also acknowledge the valuable committed services of the executives, staff and workers of the Company.

By Order of the Board

Sd/- Irinjalakuda M.C. Raul May 29, 2014 Chairman and Managing Director


Mar 31, 2013

The Directors are pleased to present the 49th Annual Report and the audited accounts for the financial year ended 31st March 2013.

Financial Highlights (Rs. in lakhs)

For the year For the year ended 31.03.2013 ended 31.03.2012

Profit before Finance costs, Depreciation and amortisation expenses and Tax expenses 1,401.84 2,291.78

Less : Finance Costs 313.65 245.27

Depreciation and amortisation expenses 422.10 459.47

Tax expenses 200.79 936.54 542.11 246.85

Profit after tax for the current year 465.30 1,044.93

Opening balance of Surplus 260.19 224.36

725.49 1,269.29

Appropriations:

Transfer to General reserve 100.00 600.00

Dividend 320.00 352.00

Dividend distribution tax 474.38 1,009.10

Closing balance of Surplus 251.11 260.19

Dividend

Considering the profits for the current year, your Directors recommend a dividend of 100 % (Rs. 10.00 per share of Rs. 10 each) for the year ended 31st March, 2013 which, if approved at the ensuing annual general meeting, will be paid to those members whose names appear in the Register of Members of the Company as on 31.07.2013. In respect of shares held in dematerialised form, the dividend will be paid on the basis of beneficial ownership as per the details furnished by the Depositories for this purpose at the end of business hours as on 23.07.2013.

Operations

The turnover of the Company improved by 29 % from Rs. 542 crores to Rs. 697 crores during the year ended 31st March, 2013. Cattle feed sales volume improved by 9 % from 3.66 lakhs tonnes to 3.99 lakhs tonnes in the same period. Unprecedented increase in the price of raw materials for cattle feed had affected the performance of the Animal feed division. That division was under loss till the third quarter. In the last quarter, the ingredient prices stabilised and then the Division could cover up the loss incurred during the first three quarters and earn profit for the year under report. The Animal feed division generated a profit of Rs. 882.03 lakhs against Rs. 1445.52 lakhs in the previous year.

The volume of cake processing improved from 73,000 tonnes in the previous year to 77,000 tonnes in the year under report. However, due to the low price for coconut oil and high cost for copra cake, the performance of cake processing division was seriously affected. The cake processing division had reported a loss of Rs. 46.88 lakhs compared to a profit of Rs. 283.99 lakhs during the year 2011-12. In the Dairy division, the volume of sale of ice cream improved to 960 kl. against 865 kl. in the previous year, registering a growth of 11 %. The profit of Dairy division for the year 2012-13 is Rs. 163.96 lakhs, which was at Rs. 96.95 lakhs in the previous year. The over-all profit after tax is Rs. 465.30 lakhs in year 2012-13 compared to Rs. 1,044.93 lakhs in the previous year.

After the downward trend in the ingredient prices in the last quarter of year 2012-13, the prices are going up again. We do not expect further reduction in the cost of cattle feed ingredients in the immediate future. We have adjusted the selling prices of feed, to match the increase in ingredient prices. We firmly believe that the sales volume of cattle feed will further improve in the current financial year. We expect to better our performance in Animal feed division, by optimising the feed formulation and making suitable adjustments in the selling prices to match the ingredient prices.

At present we are getting sufficient quantity of local copra cake at reasonable price. If sufficient quantity of copra cake is available in the market at reasonable rates and fetches a better realisation for coconut oil in the current year, we can better the performance of Cake Processing Division.

We are taking all steps to improve the market for ice cream. We are appointing new dealers in untapped areas to improve the volume of sales and thereby utilise more of the unused production capacity. We expect to improve the volume of sale of ice cream and thereby better the margins of Dairy division in the current year.

More information relating to the operations of the Company has been furnished in the Management Discussion and Analysis Report, as per Clause 49 of the Listing Agreement.

Capital Expenditure

For the future development and expansion of Irinjalakuda Unit, around 72 Ares of land adjacent to Irinjalakuda Unit has been purchased with a total capital outlay of Rs. 5.60 crores. In Palakkad Unit facilities for manufacture of cattle feed in pellet form has been set up by investing around Rs. 70 lakhs. We have entered into a third party arrangement for production of cattle feed in Trivandrum to cater the nearby markets and the production has started.

Awards and Recognitions

The Company has won the SEA Award constituted by Solvent Extractors'' Association of India for highest processor of coconut oil cake for the year 2011-12. This Award is being received by the Company for the past 22 years consecutively since the inception of the award.

Directors

Shri. A.P. George, Shri Jose Paul Thaliyath and Shri Joseph Xavier will retire by rotation at the ensuing annual general meeting and being eligible, offer themselves for re-appointment.

Directors'' Responsibility

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

(i) in the preparation of the annual accounts the applicable accounting standards have been followed along with proper explanation relating to material departures.

(ii) accounting policies have been selected and applied 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 of the Company for that year.

(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.

(iv) the annual accounts have been prepared on a going concern basis.

Corporate Governance

Corporate Governance Report, Management Discussion and Analysis Report and Certificate from Auditors on Corporate Governance have been furnished separately and form part of this report.

Auditors

M/s. Varma & Varma, Chartered Accountants will retire at the forthcoming Annual General Meeting and are eligible for re-appointment.

With the prior approval of Central Government, M/s. A. R. Narayanan & Co., Cost Accountants, Ernakulam have been appointed as Cost Auditors for the financial year 2012-13 and they will be submitting their Cost Audit Report with in the time limit stipulated.

Disclosure of Particulars

Information as per the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 are given in Annexure ''A'' forming part of this report.

Particulars of employees

As there are no employees who are drawing the specified remuneration, particulars of employees under Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 are not given.

Acknowledgement

Your Directors wish to place on record their sincere appreciation for the assistance and co-operation received from shareholders, bankers, especially ICICI Bank, Registrars and Share Transfer Agents, customers, distributors and suppliers. Board also acknowledge the valuable committed services of the executives, staff and workers of the Company.

By Order of the Board

Sd/-

Irinjalakuda M.C. Paul

May 29, 2013 Chairman and Managing Director


Mar 31, 2012

The Directors are pleased to present the 48th Annual Report and the audited accounts for the financial year ended 31st March 2012.

Financial Highlights (Rs in lakhs)

For the year For the year ended 31.03.2012 ended 31.03.2011

Profit before Finance costs, Depreciation and amortisation expenses and Tax expenses 2,387.83 1,446.98

Less : Finance Costs 341.32 323.82

Depreciation and amortisation expenses 459.47 455.85

Tax expenses 542.11 1,342,90 217.50 997.17

Profit after tax for the current year 1,044.93 449.81

Opening balance of Surplus 224.36 246.46

1,269.29 696.27

Appropriations:

Transfer to General reserve 600.00 100.00

Dividend 352.00 320.00

Corporate Dividend tax 57.10 1009.10 51.91 471.91

Closing balance of Surplus 260.19 224.36

Dividend

Considering the profits for the current year, your Directors recommend a dividend of 110% (Rs 11.00 per share of Rs 10 each) for the year ended 31st March, 2012 which, if approved at the ensuing annual general meeting, will be paid to those members whose names appear in the Register of Members of the Company as on 31.07.2012. In respect of shares held in dematerialised form, the dividend will be paid on the basis of beneficial ownership as per the details furnished by the Depositories for this purpose at the end of business hours as on 23.07.2012.

Operations

The turnover of the Company improved from Rs 454 crores to Rs 542 crores during the year ended 31st March, 2012, thus registering an increase of 19 % over that of previous year. Cattle feed sales volume improved from 3.20 lakhs tonnes to 3.66 lakhs tonnes by recording a growth of 14 %. The Animal feed division generated a profit of Rs 1533.88 lakhs against Rs 397.73 lakhs in the previous year. The volume of cake processing improved from 62,000 tonnes in the previous year to 73,000 tonnes in the year under report. However, as a result of fall in the price of coconut oil by around 40 % at a time when we had around 10,000 tonnes of imported copra cake on hand, the profit of cake processing division experienced a fall in profit from Rs 481.30 lakhs in the previous year to Rs 291.64 lakhs during the year 2011-12. In the Dairy division, the volume of sale of ice cream remained more or less at the same levels that of previous year at 865 kl. The profit of Dairy division for the year 2011-12 is Rs 96.99 lakhs, which was at Rs 145.03 lakhs in the previous year. The over-all profit after tax thereby improved from Rs 449.81 lakhs in year 2010-11 to Rs 1,044.93 lakhs in the year under report.

As a result of increase in railway freight and introduction of service tax on railway freight in March, 2012, the prices of major ingredients have gone up by around Rs 750 per tonne. We do not expect a significant fall in the cost of cattle feed ingredients in the immediate future. We have adjusted the selling prices of feed, to match the increase in ingredient prices. We firmly believe that the sales volume of cattle feed will further improve in the current financial year. We expect to better our performance in Animal feed division, by optimising the feed formulation and making suitable adjustments in the selling prices along with the ingredient prices.

At present we are getting sufficient quantity of local copra cake at reasonable price. If the price of coconut oil and copra cake remains at this level and sufficient quantity is available in the market for processing, in the current year, we expect to better our performance.

We are taking all steps to improve the market for ice cream. We are appointing new dealers in untapped areas to improve the volume of sales and thereby utilise more of the unused production capacity. We expect to improve the volume of sale of ice cream and thereby better the margins of Dairy division in the current year.

More information relating to the operations of the Company has been furnished in the Management Discussion and Analysis Report, as per Clause 49 of the Listing Agreement.

Capital Expenditure

The office of Koratty Unit has been shifted to the new administrative building costing Rs 66 lakhs in November, 2011. A new silo for storage of material costing Rs 35 lakhs has been added in Irinjalakuda Unit. A new tailor made ERP has been implemented in all Units and an amount of Rs 101 lakhs has been incurred thereto including hardware.

For the future development and expansion of Irinjalakuda Unit, negotiations for acquiring adjacent properties of around 72 Ares are at final stages, which may involve a capital outlay of around Rs 5.70 crores.

Awards and Recognitions

The Company has won the SEA Award constituted by Solvent Extractors' Association of India for highest processor of coconut oil cake for the year 2010-11. This Award is being received by the Company for the past 21 years consecutively since the inception of the award.

Directors

Shri. K. P John, Shri John Francis K. and Shri T.R. Ragulal will retire by rotation at the ensuing annual general meeting and being eligible, offer themselves for re-appointment.

Directors' Responsibility

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

(i) in the preparation of the annual accounts the applicable accounting standards have been followed along with proper explanation relating to material departures.

(ii) accounting policies have been selected and applied 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 of the Company for that year.

(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.

(iv) the annual accounts have been prepared on a going concern basis.

Corporate Governance

Corporate Governance Report, Management Discussion and Analysis Report and Certificate from Auditors on Corporate Governance have been furnished separately and form part of this report.

Auditors

M/s. Varma & Varma, Chartered Accountants will retire at the forthcoming Annual General Meeting and are eligible for re-appointment. Disclosure of Particulars

Information as per the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 are given in Annexure 'A' forming part of this report.

Particulars of employees

As there are no employees who are drawing the specified remuneration, particulars of employees under Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 are not given.

Acknowledgement

Your Directors wish to place on record their sincere appreciation for the assistance and co-operation received from shareholders, bankers, especially ICICI Bank, Registrars and Share Transfer Agents, customers, distributors and suppliers. Board also acknowledge the valuable committed services of the executives, staff and workers of the Company.

By Order of the Board

Sd/-

Irinjalakuda M.C. Paul

May 30, 2012 Chairman and Managing Director

 
Subscribe now to get personal finance updates in your inbox!