Mar 31, 2018
The directors have great pleasure in submitting the Thirtieth Annual Report together with the audited accounts for the year ended 31st March 2018.
FINANCIAL RESULTS
The Financial results for the year ended 31st March 2018 are furnished below: (Rs. in Lakhs)
CURRENT YEAR 2017-18 |
PREVIOUS YEAR 2016-17 |
|
Sales & Other Income |
58569.81 |
52944.78 |
Profit Before Finance Cost and Depreciation |
11342.44 |
10525.30 |
Less: Finance Cost |
492.86 |
383.95 |
Gross Profit For the Year |
10849.58 |
10141.35 |
Less : Depreciation |
2887.60 |
2934.86 |
Profit before Tax |
7961.98 |
7206.49 |
Less : Tax Expense |
1855.21 |
1632.66 |
Profit after Tax |
6106.77 |
5573.83 |
Other Comprehensive income |
-7.22 |
-4.83 |
Total Comprehensive income for the year |
6099.55 |
5569.00 |
Add: Opening Balance of retained earnings |
20841.22 |
16272.22 |
Amount available for appropriation |
26940.77 |
21841.22 |
Less: Appropriations |
||
Transfer to General Reserve |
1000.00 |
1000.00 |
Interim Dividend on Equity Shares |
572.50 |
0.00 |
Dividend Tax on Interim dividend |
116.55 |
0.00 |
Closing Balance of retained earnings |
25251.72 |
20841.22 |
TRANSISTION TO IND AS
The Ministry of Corporate Affairs (MCA) has notified the applicability of Indian Accounting Standards (Ind AS) in the place of existing Indian GAAP prescribed under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 to certain classes of companies. Accordingly these are the companyâs first IND AS financial statements. The date of transition to IND AS is 1st April 2016. Note 31.13 to the financial statements provides further details on First time IND AS Adoption reconciliations.
PERFORMANCE AND STATE OF AFFAIRS
The Companyâs Total Income and Gross profit amounted to Rs. 58569.81 Lakhs (Previous year Rs. 52944.78 Lakhs) and Rs.10849.58 Lakhs (Previous year Rs. 10141.35 Lakhs). This represents growth of 10.62% in total income as compared to 7.15% growth in the previous year and growth of 6.98% in Gross Profit as against growth of 13.97% in the previous year.
For the year Companyâs Direct Export Turnover amounted to Rs.32728.88 Lakhs as compared to Rs.24965.35 Lakhs in the previous year representing a growth of 31.10% (Previous Year decline of 3.83% )
In terms of percentage the export turnover constituted 57.46% of the net sales as against 48.39% in the previous year.
The Company continued its focus on product innovation, broad basing product profile , working on value added products having better margins without orientation to export/ domestic markets and catering to reputed manufactures of upstream products. This policy orientation has contributed to the sustained financial performance of the company.
During the year the Company has further invested Rs.3203.82 Lakhs in Knitting segment and operationalized the knitting capacity of converting yarn into fabric for 30,000 Kgs per day. It is further proposed to invest during the current year an estimated amount of Rs.1300 Lakhs for additional conversion capacity of 7000 Kgs per day.
The Company is not carrying any long term debt.
TRANSFER TO RESERVES
The Company proposes to transfer Rs.10.00 Crores to the General Reserve out of the amount available for appropriation.
DIVIDEND
The Board of Directors have declared and paid interim Dividend for FY 2017-18 as under
Rate of Dividend |
Dividend per equity share |
Amount of Dividend |
(Rs.) |
(Rs.in Lakhs) |
|
100% |
10 |
572.50 |
The Board of Directors have recommended payment of final dividend for FY 2017-18 as under
Rate of Dividend |
Dividend per equity share |
Amount of Dividend |
(Rs.) |
(Rs.in Lakhs) |
|
250% |
25 |
1431.25 |
If approved by the members at the Annual General Meeting ( AGM) to be held on 27.09.2018 , the interim Dividend and proposed Final Dividend would result in cash outflow of dividend Rs.2003.75 Lakhs and dividend distribution tax Rs.410.75 Lakhs for FY 2017-18 .The payout ratio of dividend and dividend tax works out to 39.54%.
DIRECTORS
In terms of requirement of Section 149 of the Companies Act, 2013, the Independent Directors of the company are Sri.K.N.Sreedharan, Dr.K.Venkatachalam and Sri.E.M. Nagasivam.
Pursuant to the provisions of Section 152 of the Companies Act, 2013, Mrs.Vidya Jyothish Pillai (DIN 05215930) Director, who retires by rotation and being eligible, offers herself for reappointment.
DIRECTORSâ RESPONSIBILITY STATEMENT
In terms of Section 134 (3) (c) of the Companies Act 2013, your directors state that: -
i. In the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures;
ii. Accounting policies selected have been applied consistently. Reasonable and prudent judgments have been made so as to give a true and fair view of the state of affairs of the Company as at the end of 31st March, 2018 and of the profit of the Company for the year ended on that date;
iii. Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities;
iv. The annual accounts have been prepared on a going concern basis;
v. Internal financial controls have been laid down to be followed by the Company and such internal financial controls are adequate and operating effectively;
vi. Systems to ensure compliance with the provisions of all applicable laws are in place and were adequate and operating effectively.
MEETINGS OF THE BOARD
The Board held four meetings during the Financial Year 2017-18 namely, May 27,2017, August 12,2017, November 14,2017 and February 10, 2018 .
DECLARATION BY INDEPENDENT DIRECTORS
The Independent Directors have submitted the Declaration of Independence, as required pursuant to Section 149(7) of the Companies Act,2013, stating that they meet the criteria of independence as provided in sub-section(6).
DEPOSITS:
The Company has not accepted any deposits from the public and therefore furnishing of details in terms of Rule 8(v) &(vi) of Companies (Accounts) Rules ,2014 does not arise.
AUDITORS
Srikishen & Co., Chartered Accountants, ICAI Registration No.004009S was appointed as the Statutory auditors for a continues period of five years from the conclusion of 29th AGM till the conclusion of 34 th AGM.
Certificate from the Auditors has been received to the effect that they are eligible to act as auditors of the Company under Section 141 of the Companies Act, 2013 and further submitted the Peer Review Certificate dt:04.08.2016 issued to them by Institute of Chartered Accountants of India (ICAI).
AUDITORSâ REPORT
The Auditorsâ Report to the Shareholders does not contain any reservation, qualification or adverse remark.
SECRETARIAL AUDIT
Pursuant to the provisions of Section 204 of the Companies Act,2013, and the Companies (Appointment and Remuneration of Managerial Personnel ) Rules 2014, the Company has appointed Sri. Sundararajan Baalaji, Practising Company Secretary to undertake the Secretarial Audit of the Company.
The Secretarial Audit Report for the financial year ended March 31, 2018 is annexed herewith marked as Annexure A to this Report. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.
COST AUDITOR & COST AUDIT REPORT
Pursuant to Section 148 of the Companies Act,2013 read with the Companies (Cost Records and Audit ) Amendment Rules ,2014, cost audit records are maintained by the Company. As required under Companies Act,2013, a resolution seeking approval of the members in this regard is included in the Notice convening the Annual General Meeting. Cost Audit Report for the year ended 31st March, 2018 will be submitted in due course.
INTERNALFINANCIALCONTROLS
The Company has in place internal financial controls systems, commensurate with the size and nature of its operations to ensure proper recording of financial and operational information and compliance of various internal controls and other regulatory and statutory compliances.
AUDIT COMMITTEE
The Audit Committee was constituted by the Board at its meeting held on 31.01.2001. The Committee now comprises of Directors Sri. K.N.Sreedharan, Dr. K.Venkatachalam, Mrs .Vidya Jyothish Pillai and Sri. E.M.Nagasivam. Sri. E.M.Nagasivam was co-opted as a member of Audit Committee by the Board at its meeting held on 10.02.2018
VIGIL MECHANISM/WHISTLE BLOWER POLICY
The Company has in place a vigil mechanism /Whistle Blower Policy for Directors and Employees to report genuine concerns about any wrongful conduct with respect to the Company of its business or affairs. The details of the Vigil Mechanism / whistle Blower Policy are available on the Companyâs website www.acmills.in
CORPORATE SOCIAL RESPONSIBILITY (CSR) COMMITTEE
The Corporate Social Responsibility Committee consists of Directors Sri. P.V.Chandran Dr.K.Venkatachalam and Mrs.Bhavya Chandran as members of the committee. The Committee has formulated and recommended to the Board, a Corporate Social Responsibility Policy (CSR Policy) indicating the activities to be undertaken by the Company as specified in Schedule VII of the Companies Act, 2013, which has been approved by the Board, the details of the same are made available on the Companyâs website www.acmills.in.
NOMINATION AND REMUNERATION COMMITTEE
Nomination and Remuneration Committee presently consists of Directors Sri.K.N.Sreedharan ,Dr. K.Venkatachalam, and Mrs. Bhavya Chandran.
The Company has formulated the policy in this regard prescribing the criteria for determining qualifications positive attributes and independence of a director and the main attribute focused on is positive value creation and contribution in respect of ongoing activities of the Company and its value enhancement with adequate qualifications and independence. Details of the policy are made available in the Corporate Governance Report and on the Companyâs website www.acmills.in.
RISK MANAGEMENT POLICY
The Risk Management Committee consists of Directors Sri.P.V.Chandran, Dr.K.Venkatachalam and Mrs. Vidya Jyothish Pillai. The company has developed and adopted a detailed Enterprise Risk Management Policy to sustain the operations of the Company and the same is disclosed in the website of the Company, www.acmills.in.
STAKEHOLDERS RELATIONSHIP COMMITTEE
The Stakeholders relationship consists of Directors Dr.K.Venkatachalam, Mrs. Vidya Jyothish Pillai and Mrs. Bhavya Chandran . The Company has formulated policy for early resolution of stakeholdersâ grievances and the same is made available in the companyâs website www.acmills.in.
APPOINTMENT OF KEY MANAGERIAL PERSONNEL
There is no appointment of Key Managerial personnel during the year.
SUBSIDIARIES
The company does not have any subsidiaries.
SIGNIFICANT MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no Significant Material Orders passed by the Regulators / Courts which would impact the going concern status of the Company and its future operations.
LOANS, GUARANTEES AND INVESTMENTS
The Company has not made any investments or given any loans or guarantees or provided any security in connection with a loan to any person or body corporate, as defined under Section 186 of the Companies Act, 2013.
RELATED PARTY TRANSACTIONS
The Company does not have any related party transactions as defined in Section 188 of the Companies Act, 2013 hence Form AOC-2 is not enclosed.
MATERIAL CHANGES AND COMMITMENTS
There were no Material changes and Commitments affecting the financial position of the Company that have occurred between the end of the financial year March 31,2018 to which the financial statements relate and the date of this report.
CHANGE IN THE NATURE OF BUSINESS
There were no changes in the nature of business during the year under review as prescribed in Rule 8(ii) of the Companies (Accounts) Rules, 2014.
BOARD EVALUATION
The Board has carried out an annual Performance evaluation of its own performance and that of its Committees and individual Directors .Further the independent Directors have carried out review of performance of non- independent directors and the Board as a whole, performance of the Chairperson and further made an assessment of quality, quantity and timelines of flow of information between the Company management and the Board for effective and reasonable performance of its duties.
EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form MGT-9 is annexed herewith as Annexure -1.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND OUTGO
Particulars relating to Conservation of Energy, Technology absorption, Foreign Exchange Earning and outgo, as required to be disclosed under the Act, are set out in Annexure - II to this report.
CSR EXPENDITURE
The requirement to spend in this regard is Rs.129.77 Lakhs( Previous year Rs. 121.59 Lakhs) @ 2% of 3 years average net profit of the Company and the Company has spent Rs 136.32 Lakhs(Previous year Rs. 123.02 Lakhs) on various CSR activities which are into (i) Rural Development, (ii) Education (iii)Animal Protection (iv) Medical Support, (v) Relief to Poor and the details of expenditure are furnished in Annexure -III to this report.
PARTICULARS OF EMPLOYEES:
Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is enclosed in Annexure IV to this report.
ADDITIONAL DISCLOSURES PURSUANTTO SEBI REGULATIONS
The additional disclosures pursuant to Regulation 34 (3) and 53 (f) of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 in respect (i) Management Discussion and Analysis (ii) Corporate Governance Report (iii) Related Party Disclosures for the year under review are given as a separate statement in the Annual Report.
By order of the Board
Sd/-
(P.V.CHANDRAN)
DATE : 11/08/2018 Chairman and Managing Director
PLACE : Coimbatore (DIN : 00628479)
Mar 31, 2015
Dear Members,
The directors have great pleasure in submitting the Twenty Seventh
Annual Report together with the audited accounts for the year ended
31st March 2015.
FINANCIAL RESULTS
The Financial results for the year ended 31st March 2015 are furnished
below:
CURRENT YEAR PREVIOUS YEAR
2015 2014
Rs. Rs.
Sales & Other Income 4958319864 4770831958
Profit Before Finance Cost
and Depreciation 994101942 1033063175
Less: Finance Cost 63124228 120261790
Gross Profit For the Year 930977714 912801385
Less : Depreciation 293333103 316237718
Profit before Tax 637644611 596563667
Less : Tax Expense 125889272 115184093
Profit after Tax 511755339 481379574
Add: Surplus in Statement
of Profit and Loss 1075341418 779880500
1587096757 1261260074
Less : Appropriation
Transfer to General Reserve 100000000 100000000
Proposed Dividend on Equity Shares 82250000 73437500
Dividend Tax 16744165 12480703
Prior Period Dividend & Dividend Tax 539 453
Surplus Carried over in Statement
of Profit and Loss 1388102053 1075341418
PERFORMANCE AND STATE OF AFFAIRS
The Company's Total Income and Gross profit amounted to Rs.49583 Lakh
(Previous year Rs. 47708 Lakh) and Rs.9310 Lakh (Previous year Rs.9128
Lakh). This represents growth in total income of 3.93% as compared to
19.85% in the previous year and growth in Gross Profit of 1.99% as
against 34.06% in the previous year.
For the year Company's Direct Export Turnover amounted to Rs.28532 Lakh
as compared to Rs. 29582 Lakh in the previous year representing a
marginal decline of 3.55 % (Previous Year growth of 20.87%) . In terms
of percentage the export turnover constituted 58.98% of the net sales
as against 64.38% in the previous year.
The Company continued its emphasis on its core strength of making
speciality yarn made up of superior cotton, offering products to the
specific needs of the reputed customers, coupled with product
innovation. This has largely contributed to the sustained financial
performance of the company. It is relevant to note that the company's
focus is to maximize its spindle EBITDA and its spindle EBITDA is one
of the best in the standalone spinning industry.
During the year the Company has invested Rs.7.88 Crores for further
strengthening of the production base and other modernization works
which are met out of internal accruals and considerably reduced its
long term debt from Rs.61.64 Crores to Rs.16.78 Crores.
The Company plans to setup another spinning unit of 30,000 spindles
with 100% compact facility consisting of imported and indigenous
machinery, together with required value addition in knitting facility
at an estimated cost of Rs.130.00 Crores. The major cost of the scheme
is proposed to be met out of internal accruals with minimum possible
borrowing.
TRANSFER TO RESERVES
The Company proposes to transfer Rs.10.00 Crores to the General Reserve
out of the amount available for appropriation.
DIVIDEND
The directors are pleased to recommend a dividend of 140% (Rs.14.00/-
per share) for the year ended 31 March 2015 for your approval. The
outflow on account of Equity Dividend would be Rs.822.50 Lakh (Previous
year Rs. 734.37 Lakh) and dividend tax Rs.167.44 Lakh (Previous year
Rs. 124.81 Lakh). The total payout will be Rs.989.94 Lakh (Previous
year Rs. 859.18 Lakh). The payout ratio for the year works out to
16.07% as compared to 15.26% (exclusive of dividend tax) on the basis
of PAT of FY 2015 & 2014.
DIRECTORS
Pursuant to the provisions of Section 149 of the Act, Sri K. N.
Sreedharan, Dr K. Venkatachalam & Sri R. Soundararaja Perumal, were
appointed as Independent Directors at the Annual General Meeting of the
Company held on 24th September 2014.
IDBI has withdrawn its Nominee Director Sri G.Udayakumar with effect
from 25.11.2014, consequent to repayment of its term loan. The Board
wishes to place on record its appreciation of the services rendered by
Sri G.Udayakumar during his tenure of office.
Mrs.Bhavya Chandran retires by rotation and being eligible offers
herself for re- appointment.
DIRECTORS' RESPONSIBILITY STATEMENT
In terms of Section 134 (3) (c) of the Companies Act 2013, your
directors state that: -
i. In the preparation of the annual accounts, the applicable accounting
standards have been followed and there are no material departures;
ii. Accounting policies selected have been applied consistently.
Reasonable and prudent judgments have been made so as to give a true
and fair view of the state of affairs of the Company as at the end of
31 March, 2015 and of the profit of the Company for the year ended on
that date;
iii. Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 2013 for safeguarding the assets of the Company and for
preventing and detecting frauds and other irregularities;
iv. The annual accounts have been prepared on a going concern basis;
v. Internal financial controls have been laid down to be followed by
the Company and such internal financial controls are adequate and
operating effectively;
vi. Systems to ensure compliance with the provisions of all applicable
laws are in place and were adequate and operating effectively.
MEETINGS OF THE BOARD
During the year four Board Meetings were convened and held. The details
thereof are given in the Corporate Governance Report.
DECLARATION BY INDEPENDENT DIRECTORS
The Independent Directors have submitted the Declaration of
Independence, as required pursuant to Section 149(7) of the Companies
Act,2013, stating that they meet the criteria of independence as
provided in sub-section(6).
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis Report covering matters listed
in Clause 49 of the Listing Agreement for the year under review is
given as a separate statement in the Annual Report.
DEPOSITS
The Company has not accepted any deposits from the public and therefore
furnishing of details in terms of Rule 8(v) &(vi) of Companies
(Accounts) Rules ,2014 does not arise.
AUDITORS
The Auditors, M/ s L.Venkatasubbu & Co., Chartered Accountants, hold
office until the conclusion of the ensuing Annual General Meeting. As
per the provisions of the Companies Act, 2013, they are eligible to be
appointed for a maximum further period of two years. Certificate from
the Auditors has been received to the effect that they are eligible to
act as auditors of the Company under Section 141 of the Companies Act,
2013 and further submitted the Peer Review Certificate dt: 13.11.2013
issued to them by Institute of Chartered Accountants of India (ICAI).
The Board recommends the appointment of L.Venkatasubbu & Co, Chartered
Accountants, as auditors of the Company from the conclusion of the
ensuing AGM until the conclusion of the next AGM.
AUDITORS' REPORT
The Auditors' Report to the Shareholders does not contain any
reservation, qualification or adverse remark.
SECRETARIAL AUDIT
The Secretarial Audit for the financial year ended March 31, 2015 is
annexed herewith marked as Annexure A to this Report. The Secretarial
Audit Report does not contain any qualification, reservation or adverse
remark.
INTERNAL FINANCIAL CONTROLS
The Company has in place internal financial controls systems,
commensurate with the size and nature of its operations to ensure
proper recording of financial and operational information and
compliance of various internal controls and other regulatory and
statutory compliances.
AUDIT COMMITTEE
The Audit Committee was constituted by the Board at its meeting held on
31.01.2001. The Committee now comprises of Directors Sri.
K.N.Sreedharan, Dr .K.Venkatachalam and Sri.R. Soundararaja Perumal and
all of them are Independent Directors.
VIGIL MECHANISM /WHISTLE BLOWERPOLICY
The Company has in place a vigil mechanism /Whistle Blower Policy for
Directors and Employees to report genuine concerns about any wrongful
conduct with respect to the Company of its business or affairs. The
details of the Vigil Mechanism / whistle Blower Policy are available on
the Company's website www.acmills.in
CORPORATE SOCIAL RESPONSIBILITY (CSR) COMMITTEE
The Corporate Social Responsibility Committee was constituted
consisting of Directors Sri. P.V.Chandran, Dr.K.Venkatachalam and
Sri.R.Soundararaja Perumal as members of the committee. The Committee
has formulated and recommended to the Board, a Corporate Social
Responsibility Policy (CSR Policy) indicating the activities to be
undertaken by the Company, which has been approved by the Board, the
details of the same are made available in the Company's website
www.acmills.in.
NOMINATION AND REMUNERATION COMMITTEE
A Nomination and Remuneration Committee was constituted in place of
earlier Remuneration Committee and presently the members of the
Committee are Directors Dr. K.Venkatachalam, Sri. R. Soundararaja
Perumal & Mrs. Bhavya Chandran.
The Company has formulated the policy in this regard prescribing the
criteria for determining qualifications positive attributes and
independence of a director and the main attribute focused on is
positive value creation and contribution in respect of ongoing
activities of the Company and its value enhancement with adequate
qualifications and independence. Details of the policy are made
available in the Corporate Governance Report and in the Company's
website www.acmills.in.
RISK MANAGEMENT COMMITTEE
The Risk Management Committee was constituted consisting of Directors
Sri.P.V.Chandran, Dr.K.Venkatachalam and Mrs. Vidya Jyothish Pillai.
The company has developed and adopted a detailed Enterprise Risk
Management Policy to sustain the operations of the Company and the same
is disclosed in the website of the Company, www.acmills.in.
STAKEHOLDERS RELATIONSHIP COMMITTEE
The Stakeholders relationship committee was constituted consisting of
Directors Sri.R.Soundararajaperumal, Mrs. Vidya Jyothish Pillai & Mrs.
Bhavya Chandran. The Company has formulated policy for early resolution
of stakeholders' grievances and the same is made available in the
company's website www.acmills.in.
APPOINTMENT OF KEY MANAGERIAL PERSONNEL
Sri.M.Vijayakumar was appointed as Chief Financial Officer (CFO) of the
Company during the year. SUBSIDIARIES
The company does not have any subsidiaries.
SIGNIFICANT MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no Significant Material Orders passed by the
Regulators/Courts which would impact the going concern status of the
Company and its future operations.
LOANS, GUARANTEES AND INVESTMENTS
The Company has not made any investments or given any loans or
guarantees or provided any security in connection with a loan to any
person or body corporate, covered under Section 186 of the Companies
Act, 2013.
RELATED PARTY TRANSACTIONS
The Company does not have any related party transactions as defined in
Section 188 of the Companies Act, 2013, hence, Form AOC - 2 is not
enclosed.
MATERIAL CHANGES AND COMMITMENTS
There were no Material changes and Commitments affecting the financial
position of the Company that have occurred between the end of the
financial year 31.03.2015 to which the financial statements relate and
the date of this report.
CHANGE IN THE NATURE OF BUSINESS
There were no changes in the nature of business during the year under
review as prescribed in Rule 8(ii) of the Companies (Accounts) Rules,
2014.
BOARD EVALUATION
The exercise of Board evaluation is to be carried out during the
current financial year , as the requirement of the Companies Act, 2013,
in this respect is to have composition of Board to have atleast one -
third of the total number of directors as Independent Directors by
31.03.2015 and the same has been complied with by the Company.
EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in Form
MGT-9 is annexed herewith as Annexure - I.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING
AND OUTGO
Particulars relating to Conservation of Energy, Technology absorption,
Foreign Exchange Earning and outgo, as required to be disclosed under
the Act, are set out in Annexure - II to this report.
CSR EXPENDITURE
The requirement to spend in this regard is Rs.88.31 lakhs @ 2% of 3
years average net profit of the Company and the Company has spent
Rs.91.00 lakhs on various CSR activities which are into (i) Rural
Development, (ii) Animal Protection, (iii) Education, (iv) Medical
Support, (v) Relief to Poor and the details of expenditure are
furnished in Annexure -III to this report.
PARTICULARS OF EMPLOYEES:
The statement relating to the employees who have drawn remuneration of
the category specified in Rule 5(2) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 is enclosed in
Annexure -IV to this report .
Disclosures pertaining to remuneration and other details as required
under Section 197(12) of the Act read with Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 is
enclosed in Annexure V to this Report.
By order of the Board
Sd/-
DATE : 08/08/2015 (P.V.CHANDRAN)
PLACE : Coimbatore Chairman and Managing Director
Mar 31, 2014
Dear members,
The directors have great pleasure in submitting the Twenty Sixth
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 furnished
below :
CURRENT YEAR PREVIOUS YEAR
2014 2013
Rs. Rs.
Sales & Other Income 4770831958 3980542390
Profit Before Finance Cost
and Depreciation 1033063175 868785478
Less: Finance Cost 120261790 187886952
Gross Profit For the Year 912801385 680898526
Less : Depreciation 316237718 274332117
Profit before Tax 596563667 406566409
Less : Tax Expense 115184093 96725946
Profit after Tax 481379574 309840463
Add: Surplus in Statement of
Profit and Loss 779880500 634906720
1261260074 944747183
Less: Appropriation
Transfer to General Reserve 100000000 100000000
Proposed Dividend on Equity Shares 73437500 55812500
Dividend Tax 12480703 9054183
Prior Period Dividend & Dividend Tax 453 0
Surplus Carried over in Statement of
Profit and Loss 1075341418 779880500
DIVIDEND
The directors are pleased to recommend a dividend of 125% (Rs.12.50/-
per share) for the year ended 31st March 2014 for your approval. The
outflow on account of Equity Dividend would be Rs.734.37 Lakh (Previous
year Rs.558.13 Lakh) and dividend tax Rs.124.81 Lakh (Previous year
Rs.90.54 Lakh). The total payout will be Rs.859.18 Lakh (Previous year
Rs.648.67 Lakh). The payout ratio for the year works out to 15.26% as
compared to 18.01% (exclusive of dividend tax) on the basis of PAT of
FY 2014 & 2013.
OPERATIONS:
The Company''s Total Income and Gross profit amounted to Rs.47708 Lakh
(Previous year Rs.39805 Lakh) and Rs.9128 Lakh (Previous year Rs.6809
Lakh). This represents growth in total income of 19.85% as compared to
2.03% in the previous year and growth in Gross Profit of 34.06% as
against 15.50% in the previous year .
For the year Company''s Direct Export Turnover amounted to Rs.29582 Lakh
as compared to Rs.24475 Lakh in the previous year representing a growth
of 20.87%(Previous Year 6.80 %) . In terms of percentage the export
turnover constituted 64.38% of the net sales as against 63.57% in the
previous year.
The Company''s constant focus on speciality yarn and versatile product
mix, catering to the market leaders both in the domestic market and as
well as in the international market, differing from majority yarn
producers, has largely contributed to the overall improved financial
performance of the company.
The Company has invested so far as upto 31.03.2014 Rs.22.30 Crores
towards modernization of its Unit - I and implemented EHT facility (110
KVA Sub-Station) at a cost of Rs. 6.49 Crores ensuring dedicated
electric supply exclusively to support the operations of Unit - II ,
III & IV within the factory premises of the company. Further the
company has prepaid Rs.16.80 Crores of Term loans in the current year,
thereby reducing the high cost term loans and the remaining term loans
are covered under Technology Upgradation Fund Scheme(TUFS). All the
investments and prepayment of Term loans are out of Company''s internal
accruals.
MANAGEMENT''S DISCUSSION AND ANALYSIS
The Management Discussion and Analysis Report covering matters listed
in Clause 49 of the Listing Agreement for the year under review is
given as a separate statement in the Annual Report.
DEPOSITS :
The Company has not accepted any deposits from the public.
DIRECTORS :
In compliance with the requirements of the Companies Act , 2013 and
Listing Agreement , Independent Directors Sri K.N.Sreedharan, Sri
K.Venkatachalam and Sri R.Soundararaja Perumal are appointed to hold
office for a period of five consecutive years from the conclusion of
this Annual General Meeting and are not liable to retire by rotation.
Mrs.Vidya Jyothish Pillai, Director retires by rotation and being
eligible offers herself for re-appointment.
The notice convening the AGM includes the proposal / re- appointment of
Directors
AUDITORS:
The Auditors, M/s L.Venkatasubbu & Co., Chartered Accountants, hold
office until the conclusion of the ensuing Annual General Meeting . As
per the provisions of the Companies Act, 2013, they are eligible to be
appointed for a maximum further period of three years . Certificate
from the Auditors has been received to the effect that they are
eligible to act as auditors of the Company under Section 141 of the
Companies Act, 2013 and further submitted the Peer Review Certificate
dt: 13.11.2013 issued to them by Institute of Chartered Accountants of
India (ICAI). The Board recommends the appointment of L.Venkatasubbu &
Co, Chartered Accountants, as auditors of the Company from the
conclusion of the ensuing AGM until the conclusion of the next AGM.
COST AUDIT:
The company''s cost records are audited by Mr.G.Sivagurunathan, Cost
Accountant, Coimbatore for the financial year ended 31.03.2013 and in
respect of the same has submitted his report to the Central Government
on 20.08.2013. He was re-appointed to conduct cost audit of cost
records of the company for the financial year 2013-14.
DIRECTORS'' RESPONSIBILITY STATEMENT
In terms of Section 217 (2AA) of the Companies Act 1956, your directors
state that: -
1. In the preparation of the Annual Accounts, the applicable
accounting standards have been followed.
2. The Company has selected such accounting policies, applied them
consistently, 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 financial year and of the profit of the
company for that year.
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 for preventing and detecting fraud and other
irregularities.
4. The Company has prepared the attached annual statement of accounts
for the year ended 31st March 2014, on a going concern basis.
PARTICULARS OF EMPLOYEES:
The statement relating to the employees who have drawn remuneration of
the category specified in Section 217(2A) of the Companies Act, 1956 is
enclosed herewith.
DISCLOSURES OF PARTICULARS:
Particulars relating to conservation of energy, Technology absorption,
Foreign Exchange Earning and outgo pursuant to the Companies
(Disclosure of particulars in the Report of Board of Directors) Rules
1988 are set out separately and form part of this report.
By order of the Board
Sd/-
DATE : 09.08.2014 (P-V.CHANDRAN)
PLACE : Coimbatore Chairman and Managing Director
Mar 31, 2013
The directors have great pleasure in submitting the Twenty Fifth
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 furnished
below:
CURRENT YEAR PREVIOUS YEAR
2013 2012
Rs. Rs.
Sales and Other Income 398,05,42,390 390,12,85,314
Profit Before Finance
Cost and Depreciation 86,87,85,478 78,67,26,186
Less: Finance Cost 18,78,86,952 19,71,94,036
Gross Profit For the Year 68,08,98,526 58,95,32,150
Less: Depreciation 27,43,32,117 26,80,13,695
Profit Before Tax 40,65,66,409 32,15,18,455
Less: Tax Expenses 9,67,25,946 8,26,97,109
Profit after Tax 30,98,40,463 23,88,21,346
Add : Surplus in Statement
of Profit and Loss 63,49,06,720 53,02,25,734
94,47,47,183 76,90,47,080
Less : Appropriation
Transfer to General Reserve 10,00,00,000 10,00,00,000
Interim Dividend 0 1,17,50,000
Dividend Tax on Interim Dividend 0 19,06,144
Proposed Dividend on Equity Shares 5,58,12,500 1,76,25,000
Dividend Tax 90,54,183 28,59,216
Surplus Carried over in
Statement of Profit and Loss 77,98,80,500 63,49,06,720
DIVIDEND
The directors are pleased to recommend a dividend of 95% (Rs.9.50/- per
share) for the year ended 31st March 2013 for your approval. The
outflow on account of Equity Dividend would be Rs.558.13 Lakh (Previous
year Rs.293.75 Lakh) and dividend tax Rs.90.54 Lakh (Previous year
Rs.47.65 Lakh). The total payout will be Rs.648.67 Lakh (Previous year
Rs.341.40 Lakh). The payout ratio for the year works out to 18.01 % as
compared to 12.30% (exclusive of dividend tax) on the basis of PAT of
FY 2012 & 2013.
OPERATIONS
The Company''s Total Income and Gross profit amounted to Rs.39805 Lakh
(Previous year Rs.39013 Lakh) and Rs.6809 Lakh (Previous year Rs.5895
Lakh). This represents growth in total income of 2.03% as compared to
19.22% in the Previous year and growth in Gross Profit of 15.50% as
against decline of 29.85% in the Previous year as compared to the
previous year.
For the year Company''s Direct Export Turnover amounted to Rs.24475 Lakh
as compared to Rs.22916 Lakh in the previous year representing a growth
of 6.80%. In terms of percentage the export turnover constituted 63.57%
of the net sales as against 60.97% in the previous year.
The performance of the Company would exhibit that its constant efforts
towards focusing on manufacturing of high quality speciality yarn has
substantially strengthened its operational base both in our country and
outside India ensuring constant demand for the products of the company.
The usual factors, which continue to have a bearing over the operations
of the company, in recent periods, such as volatility in cotton prices,
fluctuation in foreign currency rates, adequate uninterrupted supply of
power and cost of interest have a cumulative bearing over the
operational performance of the company. The company would continue to
make fine performance in the coming years on account of its strategic
policies over sustaining of its operations. In order to strengthen and
modernize its production base the company has embarked on, in
modernizing its Unit-I at a cost of Rs.13.84 Crores, which will be met
fully out of internal accruals of the company.
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis Report covering matters listed
in Clause 49 of the Listing Agreement for the year under review is
given as a separate statement in the Annual Report.
DEPOSITS
The Company has not accepted any deposits from the public.
DIRECTORS
Mrs. Bhavy a Chandr an Director retires by rotation and being eligible
offers herself for re-appointment.
Sri.G.Udayakumar Director was appointed as a director of the Company
with effect from 27.06.2012 as a Nominee Director of IDBI Bank Ltd in
the place of Smt. Seethalakshmi Nagarajan.
The Remuneration of Sri. P.V. Chandran, Chairman and Managing Director
of the Company is varied to provide for a remuneration of Rs. 2.00 Lakh
per month plus commission at the reate of 2% of the net profit of the
company without ceiling, as against the earlier ceiling of Rs. 75.00
Lakh per annum.
AUDITORS
M/s. L.Venkatasubbu & Co., Chartered Accountants, Auditors of the
Company are to retire at the ensuing Annual General Meeting and being
eligible offer themselves for re-appointment. They have furnished the
necessary certificate in terms of Section 224 of the Companies Act,
1956.
COST AUDIT
The company''s cost records are audited by Mr.G.Sivagurunathan, Cost
Accountant, Coimbatore for the financial year ended 31.03.2012 and in
respect of the same has submitted his report to the Central Government
on 31.12.2012. He was re-appointed to conduct cost audit of cost
records of the company for the financial year 2012-13 and 2013-14 upon
his furnishing a certificate to the effect that he is independent, free
from any disqualification and his appointment if appointed, will be
within the limits as specified under the Companies Act, 1956.
DIRECTORS RESPONSIBILITY STATEMENT
In terms of Section 217 (2 A A) of the Companies Act 1956, your
directors state that: -
1. In the preparation of the Annual Accounts, the applicable
accounting standards have been followed.
2. The Company has selected such accounting policies, applied them
consistently, 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 financial year and of the profit of the
company for that period.
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 safe guarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
4. The Company has prepared the attached annual statement of accounts
for the year ended 31st March 2013, on a going concern basis.
PARTICULARS OF EMPLOYEES
The statement relating to the employees who have drawn remuneration of
the category specified in Section 217(2A) of the Companies Act, 1956 is
enclosed herewith.
DISCLOSURES OF PARTICULARS
Particulars relating to conservation of energy, Technology absorption,
Foreign Exchange Earning and outgo pursuant to the Companies
(Disclosure of particulars in the Report of Board of Directors) Rules
1988 are set out separately and form part of this report.
BY ORDER OF THE BOARD
Sd/-
Place : Coimbatore (P. V. CHANDRAN)
Date - 30 05 2013 Chairman and Managing Director
Mar 31, 2012
The directors have great pleasure in submitting the Twenty Fourth
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 furnished
below:
CURRENT YEAR PREVIOUS YEAR
2012 2011
Rs. Rs.
Sales and other Income 3,90,12,85,314 3,27,24,15,467
Gross Profit for the year 58,95,32,150 84,03,37,383
Less : Depreciation 26,80,13,695 24,21,96,256
Profit before tax 32,15,18,455 59,81,41,127
Less: Tax Expenses
Current Tax (MAT) 6,43,35,758 11,92,02,034
Less : MAT Credit 0 -9,80,22,617
Net Current Tax 6,43,35,758 2,11,79,417
Less : Deferred Tax 10,64,134 14,56,18,277
Less : MAT Credit Reversed 89,53,158 43,06,197
Less : Prior Period Income Tax 83,44,059 25,90,481
Profit after Tax 23,88,21,346 42,44,46,755
Add : Balance in Profit & Loss Account 53,02,25,734 23,91,15,361
76,90,47,080 66,35,62,116
Add : Depreciation Withdrawn 0 9,17,440
76,90,47,080 66,44,79,556
Less : Appropiration
Interim Dividend 1,17,50,000 1,17,50,000
Dividend Tax on Inteim Dividend 19,06,144 19,51,530
Transferred to General Reserve 10,00,00,000 10,00,00,000
Proposed Dividend on Equity Shares 1,76,25,000 1,76,25,000
Dividend Tax 28,59,216 29,27,292
Balance Carried Over in Profit & Loss
Account 63,49,06,720 53,02,25,734
DIVIDEND
The company has paid an Interim dividend of 20% (Rs.2/- per share)
during the year. The directors are pleased to recommend a Final
dividend of 30% (Rs.3/- per share) for the year ended 31st March 2012
for your approval. The outflow on account of Eauity Dividend would be
including interim dividend for the year works out to 50% (Rs.5/- per
share) and the total payout will be Rs.293.75 Lakh (Previous year Rs.
293.75 Lakh) and dividend tax Rs.47.65 Lakh (Previous year Rs. 48.79
Lakh).
OPERATIONS:
The Companys Total Income and Gross profit amounted to Rs.39013 Lakh
(Previous year Rs.32724 Lakh) and Rs.5895 Lakh (Previous year Rs. 8403
Lakh). This represents growth in total income of 19.22 % and decline in
Gross Profit of 29.85% as compared to the previous year.
For the year Company's Direct Export Turnover amounted to Rs.22916 Lakh
as compared to Rs. 17816 Lakh in the previous year representing a
growth of 28.63%. In terms of percentage the export turnover
constituted 60.97% of the net sales as against 55.94 % in the previous
year.
The company continued its fine performance for the current year on the
strength of its operational matrix, but was impacted on account of
volatility in foreign currency, hike in interest cost,'instability in
cotton prices and uninterrupted availability of power. Despite, the
above constraints having a bearing on the overall performance, the
company exhibited its strength as it can be seen from the financial
results. As of now the company is focusing on debt reduction. The
substantial investments made by the company over the years in spinning
segment and wind energy would contribute sustainable revenue ensuring
continued better performance of the company.
MANAGEMENT'S DISCUSSION AND ANALYSIS
The Management Discussion and Analysis Report covering matters listed
in Clause 49 of the Listing Agreement for the year under review is
given as a separate statement in the Annual Report.
DEPOSITS:
The Company has not accepted any deposits from the public.
DIRECTORS:
Sri. K.N.Sreedharan Director retires by rotation and being eligible
offers himself for re- appointment.
Dr. K.Venkatachalam Director retires by rotation and being eligible
offers himself for re- appointment.
Mrs. Vidya Jyothish was co-opted as an additional director of the
company by the Board of Directors of the company at the meeting held on
14.02.2012.
Sri P.V. Chandran, Chairman and Managing Director is re-appointed for a
period of 5 years to hold the office with effect from 01.04.2012 to
31.03.2017.
AUDITORS:
M/s. L.Venkatasubbu & Co., Chartered Accountants, Auditors of the
Company are to retire at the ensuing Annual General Meeting and being
eligible offer themselves for re-appointment. They have furnished the
necessary certificate in terms of Section 224 of the Companies Act,
1956.
COST AUDIT:
The companys cost records are audited by Mr. G. Sivagurunathan, Cost
Accountant, Coimbatore for the financial year ended 31.03.2011 and in
respect of the same has submitted his report to the Central Government
on 30.09.2011. He was re-appointed to conduct cost audit of cost
records of the company for the financial year 2011 - 12 and 2012 - 13
upon his furnishing a certificate to the effect that he is independent,
free from any disaualification and his appointment if appointed, will
be within the limits as specified under the Companies Act, 1956.
DIRECTORS RESPONSIBILITY STATEMENT
In terms of Section 21 7 (2AA) of the Companies Act 1956, your
directors state that: -
1. In the preparation of the Annual Accounts, the applicable
accounting standards have been followed.
2. The Company has selected such accounting policies, applied them
consistently, 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 financial year and of the profit of the
company for that period.
3. The Directors have taken proper and sufficient care for the
maintenance of adeguate accounting records in accordance with the
provisions of the Companies Act 1956, for safe guarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
4. The Company has prepared the attached annual statement of accounts
for the year ended 31st March 2012, on a going concern basis.
PARTICULARS OF EMPLOYEES:
The statement relating to the employees who have drawn remuneration of
the category specified in Section 217(2A) of the Companies Act, 1956 is
enclosed herewith.
DISCLOSURES OF PARTICULARS:
Particulars relating to conservation of energy. Technology absorption,
Foreign Exchange Earning and outgo pursuant to the Companies
(Disclosure of particulars in the Report of Board of Directors) Rules
1988 are set out separately and form part of this report.
By order of the Board
Sd/-
PLACE: Coimbatore (P.V.CHANDRAN)
DATE : 29.05.2012 Chairman and Managing Director
Mar 31, 2011
Dear Members,
The directors have great pleasure in submitting the Twenty Third
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 furnished
below:
CURRENT YEAR PREVIOUS YEAR
2011 2010
Rs. Rs.
Sales and other Income 3,27,24,15,467 2,23,13,91,816
Gross Profit for the year 84,03,37,383 44,63,45,979
Less : Depreciation 24,21,96,256 20,94,77,849
Profit before tax 59,81,41,127 23,68,68,130
Less: Provision for Taxation
Current Tax (Minimum
alternative tax) 11,92,02,034 4,02,50,000
Less : Minimum alternative
tax credit 9,80,22,617 0
Net Current Tax 2,11,79,417 4,02,50,000
Less : Provision for Deferred Tax
Liability 14,56,18,277 1,13,19,860
Provision for FBT 0 0
Profit after tax 43,13,43,433 18,52,98,270
Add: Balance in Profit & Loss
Account 23,91,15,361 15,61,19,796
(Brought Forward From
The Previous Year)
Excess Depreciation withdrawn 9,17,440 0
Prior Period Income Tax Written back 0 30,09,634
67,13,76,234 34,44,27,700
Less : Prior Period Income-tax
Written Off 25,90,481 57,09,485
Prior Period FBT 0 60,090
Prior Period Expenses 0 89,90,472
MAT Credit Adjusted 43,06,197 0
66,44,79,556 32,96,67,653
Appropriations :
Interim Dividend 1,17,50,000 0
Tax on Interim Dividend 19,51,530 0
Proposed Dividend 1,76,25,000 1,76,25,000
Tax on Dividend 29,27,292 29,27,292
General Reserve 10,00,00,000 7,00,00,000
Balance Carried Over in Profit
& Loss Account 53,02,25,734 23,91,15,361
DIVIDEND
The company has paid an Interim dividend of 20% (Rs, 21- per share)
during the year. The directors are pleased to recommend a Final
dividend of 30% (Rs, 3/- per share) for the year ended 31st March 2011
for your approval. The outflow on account of Equity Dividend would be
including interim dividend for the year works out 50% (Rs, 5/- per
share) and the total payout Rs. 293.75 Lakh (Previous year Rs, 1 76,25
Lakh) and dividend tax Rs, 48.79 Lakh (Previous year Rs. 29,27 Lakh),
OPERATIONS:
The Company's Total Income and Gross profit amounted to Rs,32724 Lakh
(Previous year Rs,22314 Lakh) and Rs.8403 Lakh (Previous year Rs, 4463
Lakh). This represents growth in total income of 46.65% and Gross
Profit of 88,28% as compared to the previous year.
For the year Company's Direct Export Turnover amounted to Rs. 1 7816
Lakh as compared to Rs. 12141 Lakh in the previous year representing a
growth of 46,74%, In terms of percentage the export turnover
constituted 55,93% of the net sales as against 58.35% in the previous
year,
During the year the demand environment in respect of Cotton Yarn remind
robust coupled with better realisation. This has contributed to higher
capacity utilization and the company was able to derive the consequent
benefits resulting in the overall financial performance of the company,
The Company has completed and put into operation its scheme of
expansion of Wind Power capacity by 12 MW and the total Wind Power
capacity has been enhanced to 27.4 MW. The total cost of the scheme
amounted to Rs, 73.1 7 Crores and was met out of internal accruals of
Rs, 25,75 Crores and Term Loans of Rs, 47,42 Crores. The company has
prepaid Term Loans amounting to Rs, 7,15 Crores in FY 2011 and
subsequently further prepaid Term Loans amounting to Rs. 15,82 Crores
up to the date of this report.
MANAGEMENT'S DISCUSSION AND ANALYSIS
The Management Discussion and Analysis Report covering matters listed
in Clause 49 of the Listing Agreement for the year under review is
given as a separate statement in the Annual Report,
DEPOSITS:
The Company has not accepted any deposits from the public.
DIRECTORS:
Sri. R. Soundaraja Perumal Director retires by rotation and being
eligible offers himself for re-appointment,
AUDITORS:
M/s. L.Venkatasubbu & Co., Chartered Accountants, Auditors of the
Company are to retire at the ensuing Annual General Meeting and being
eligible offer themselves for re-appointment. They have furnished the
necessary Certificate in terms of Section 224 of the Companies Act,
1956.
DIRECTORS RESPONSIBILITY STATEMENT
in terms of Section 217 (2AA) of the Companies Act 1956, your directors
state that: -
1. In the preparation of the Annual Accounts, the applicable
accounting standards have been followed,
2. The Company has selected such accounting policies, applied them
consistently, 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 financial year and of the profit of the
company for that period.
3. The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provision with Companies Act 1956, for safe guarding the assets of the
Company and for preventing and detecting fraud and other
irregularities.
4. The Company has prepared the attached annual statement of accounts
for the year ended 31st March 2011, on a going concern basis.
PARTICULARS OF EMPLOYEES:
The statement relating to the employees who have drawn remuneration of
the category specified in Section 217(2A) of the Companies Act, 1956 is
enclosed herewith.
DISCLOSURES OF PARTICULARS:
Particulars relating to conservation of energy, Technology absorption,
Foreign Exchange Earning and outgo pursuant to the Companies
(Disclosure of particulars in the Report of Board of Directors) Rules
1988 are set out separately and form part of this report.
By order of the Board
Sd/-
PLACE: Coimbatore (P.V.CHANDRAN)
DATE: 30.05.2011 Chairman and Managing Director
Mar 31, 2010
The directors have great pleasure in submitting the Twenty Second
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 furnished
below:
CURRENT YEAR PREVIOUS YEAR
2010 2009
Rs. Rs.
Sales and other Income 2,23,13,91,816 1,85,40,72,652
Gross Profit for the year 44,63,45,979 31,21,93,357
Less : Depreciation 20,94,77,849 18,06,01,178
Profit before tax 23,68,68,130 13,15,92,179
Less: Provision for Taxation
Current Tax (Minimum alternative tax) 4,02,50,000 1,49,10,000
Less : Minimum alternative tax credit 0 1,49,10,000
Net Current Tax 4,02,50,000 0
Less : Provision for Deferred Tax
Liability 1,13,19,860 3,72,68,015
Provision for FBT 0 1,00,000
Profit after tax 18,52,98,270 9,42,24,164
Add: Balance in Profit & Loss Account
(Brought Forward From The Previous Year) 15,61,19,796 12,81,47,856
Prior Period MAT Credit written back 0 1,73,23,416
Prior Period FBT Credit written back 0 66,510
Prior Period Income Tax Written back 30,09,634 0
Provision for
diminution in value of
investments written back 0 2,91,522
34,44,27,700 24,00,53,468
Less : Prior Period Income-tax
Written Off 57,09,485 1,86,759
Prior Period FBT 60,090 0
Prior Period Expenses 89,90,472 0
32,96,67,653 23,98,66,709
Appropriations:
Proposed Dividend 1,76,25,000 1,17,50,000
Tax on Dividend 29,27,292 19,96,913
General Reserve 7,00,00,000 7,00,00,000
Balance Carried Over in Profit &
Loss Account 23,91,15,361 15,61,19,796
DIVIDEND
Your directors are pleased to recommend for your approval payment of
dividend for the year ended 31 st March 2010 at 30% on the Equity
Shares of the Company. The outflow on account of Equity Dividend would
be Rs. 176.25 Lakh (Previous year Rs.l 17.50 Lakh) and dividend tax
Rs.29.27 Lakh (Previous year Rs.l9.97 Lakh). The payout ratio for the
year works out to 9.51% as compared to 12.47% on the basis of PAT of FY
2010 & 2009.
OPERATIONS:
The Companys Total Income and Gross profit amounted to Rs.22314 Lakh
(Previous year Rs, 18541 Lakh) and Rs.4463 Lakh (Previous year Rs. 3122
Lakh), This represents growth in total income of 20.35 % and Gross
Profit of 42.95 % as compared to the previous year.
For the year Companys Direct Export Turnover amounted to Rs.l2141 Lakh
as compared to Rs. 7506 Lakh in the previous year representing a growth
of 61.75%. In terms of percentage the export turnover constituted 58,35
% of the net sales as against 42.23 % in the previous year.
The performance of the company was affected on account of severe power
cut which continuous to prevail in the State of Tamil Nadu as in the
previous year. The marginal improvement is that industries are
permitted to use up to 75-80% of the total power connected as against
60% in the previous year. The restriction in use of power and the high
cost of alternative energy has affected the over all production and
sales performance. The rate of interest charged by the Banks remained
at higher levels. These factors had a bearing on the overall margins
and performance of the Company.
The mandatory system of registration of export contracts of Cotton yarn
brought in by the Central Government and further completion of the so
registered export contracts within the specified time limit from such
registration is causing considerable operational difficulties in the
matter of completion and execution of export contracts. The Central
Government has further withdrawn benefits for exports of Cotton yarn
which would severely affect the margins of the company in future. The
unwanted curbs and withdrawing export benefits would jeopardize the
long term interest and competitiveness of the Industry.
The State Government / TNEB has permitted for due set off of the
captive power generated out of wind mills even in respect of peak hour
generated units, which was not the case earlier. Consequent to this
policy change the company has decided to install 12MW of wind power
capacity, which would meet the entire energy demand of the Spinning
units of the Company at a cost of Rs.72.48 Crores which is to be met
out of internal accruals of Rs.l4.88 Crores. The balance cost of
Rs.57,60 Crores is to be met out of term loan from the Banks and the
same is tied up, The Company has commenced implementation of the scheme
and substantial progress has been made.
With the completion of the above scheme the total wind energy capacity
of the company would move to 27.4 MW as against the present 15,4 MW.
MANAGEMENTS DISCUSSION AND ANALYSIS
The Management Discussion and Analysis Report covering matters listed
in Clause 49 of the Listing Agreement for the year under review is
given as a separate statement in the Annual Report.
DEPOSITS:
The Company has not accepted any deposits from the public.
DIRECTORS:
Sri.Sunil Kumar Kolangara Director retires by rotation and being
eligible offers himself for re-appointment.
Ms. Bhavya Chandran Director retires by rotation and being eligible
offers herself for re-appointment.
AUDITORS:
M/s. L.Venkatasubbu & Co., Chartered Accountants, Auditors of the
Company are to retire at the ensuing Annual General Meeting and being
eligible offer themselves for re-appointment subject to furnishing
"Peer Reviewed" Certificate as mandated by SEBI. They have furnished
the necessary Certificate in terms of Section 224 of the Companies Act,
1956.
DIRECTORS RESPONSIBILITY STATEMENT
In terms of Section 21 7 (2AA) of the Companies Act 1956, your
directors state that: -
1. In the preparation of the Annual Accounts, the applicable
accounting standards have been followed.
2. The Company has selected such accounting policies, applied them
consistently, 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 financial year and of the profit of the
company for that period.
3. The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provision with Companies Act 1956, for safe guarding the assets of the
Company and for preventing and detecting fraud and other
irregularities.
4. The Company has prepared the attached annual statement of accounts
for the year ended 31st March 2010, on a going concern basis.
PARTICULARS OF EMPLOYEES:
The statement relating to the employees who have drawn remuneration of
the category specified in Section 217(2A) of the Companies Act, 1956 is
enclosed herewith.
DISCLOSURES OF PARTICULARS:
Particulars relating to conservation of energy, Technology absorption,
Foreign Exchange Earning and outgo pursuant to the Companies
(Disclosure of particulars in the Report of Board of Directors) Rules
1988 are set out separately and form part of this report.
By order of the Board
Sd/-
PLACE: Coimbatore (RV.CHANDRAN)
DATE: 31.07.2010 Chairman and Managing Director
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