Mar 31, 2015
The Directors submit their Forty First Annual Report together with the
Audited Balance Sheet as at 31st March, 2015 and the Statement of
Profit and Loss for the year ended 31st March, 2015.
Financial Results
2014-2015 2013-2014
Rs. in Lakhs
Sales and other income 790.76 812.61
Profit before Depreciation and amortization
Expenses 265.18 337.98
Depreciation and amortization Expenses 38.73 35.10
226.45 302.88
Add: Exceptional items 106.46 20.31
332.91 323.19 Less: Tax expense
- Current Tax - (-)35.88
- MAT Credit entitlement for earlier year 35.88 -
- Deferred Tax (-)107.51 23.67
261.28 310.98
Proposed dividend on 6% Cumulative
Redeemable Preference Shares for year ended
31-03-2013 - 51.00
Corporate Tax on Dividend - 8.67
Net Profit / Loss (-) 261.28 251.31
Add: Balance from the Previous year (-)1130.64 (-)1381.95
Add: Written down value of Assets less
Deferred Tax thereon transferred as per
Schedule II (-)17.87 -
Balance Carried Over (-)887.23 (-)1130.64
Operations
The operations during the year have resulted in a net profit of
Rs.332.91 lakhs after providing for depreciation of Rs.38.73 lakhs.
Weaving Machinery and Spares
The sale of Accessories and Spares of Weaving Machines during the year
was Rs.105.15 lakhs against Rs.129.75 lakhs in the previous year. Due
to lack of orders, there was no production of weaving machines during
the year. The income generated on utilisation of the idle Assets of
the Company during the year was Rs.317.98 lakhs against Rs.300.17 lakhs
in the previous year.
Other Engineering Services
The sale of Parts and Accessories for Machine Tools during the year was
Rs.250.15 lakhs against Rs.173.07 lakhs in the previous year. The
export market for Parts and Accessories for Machine Tools is highly
competitive and the inflow of orders is fluctuating from year to year.
Outlook
The company's discussion with a reputed foreign machinery manufacturer
for manufacture of Rapier and Airjet Weaving Machines is in the final
stage.
Dividend
No dividend on the Preference and Equity shares for the year has been
recommended on account of carried over previous losses.
Share Capital
The total paid up Share Capital as on March 31, 2015 is Rs. 1460.40
lakhs comprising of Equity Capital of Rs.610.40 lakhs and 6% Cumulative
Redeemable Preference Shares of Rs.850.00 lakhs. During the year under
review the company has not issued any shares or any convertible
instruments.
Particulars of Loans, Guarantees or Investments:
The company has not given any loans or guarantees covered under the
provisions of Section 186 of the Companies Act, 2013.
Deposits
The Company has not accepted any deposit from public falling within the
ambit of Section 73 of the Companies Act, 2013.
Extract of Annual Return
The Extract of Annual Return pursuant to the provisions of Section 92
of the Companies Act, 2013 read with Rule 12 of the Companies
(Management and Administration) Rules, 2014 in Form MGT-9 is furnished
in Annexure 1 forming part of the Board's Report.
Board and its Committees Meetings conducted during the year under
review During the year under review five Meetings of the Board of
Directors, four meetings of the Audit Committee, three meetings of the
Nomination and Remuneration Committee and one meeting of the
Stakeholder Relationship Committee were held. The details are given in
the Corporate Governance Report. The intervening gap between the
Meetings was within the period prescribed under the Companies Act,
2013.
Directors Responsibility Statement as required under Section 134(5) of
the Companies Act, 2013. Pursuant to the requirement under Section
134(5) of the Companies Act, 2013 with respect to the Directors'
Responsibility Statement, the Board of Directors of the Company confirm
that:
i) in the preparation of the annual accounts for the year ended 31st
March, 2015, the applicable Accounting Standards have been followed;
ii) the Directors have selected such Accounting Policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company as at 31st March, 2015 and of the profit of the Company
for the year ended 31st March, 2015;
iii) the Directors have taken proper and sufficient care 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 fraud and other
irregularities;
iv) the Directors have prepared the annual accounts on a going concern
basis.
v) The Directors had laid down internal financial controls to be
followed by the Company and that such internal financial controls are
adequate and were operating effectively.
vi) The Directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
Directors and Key Managerial Personnel
Sri S.Pathy and Smt. Aishwarya Pathy, Directors of the Company retire
by rotation at the ensuing Annual General Meeting and being eligible
offer themselves for re-appointment. A brief profile of the Directors
retiring by rotation and seeking re-election, is annexed to the Notice
of Annual General Meeting.
Sri V.B.Haribhakti, Independent Director owing to his advancing a ge
has tendered his resignation of the Directorship on the Board of
Directors of the Company with effect from 10.02.2015. The Board places
on record their appreciation of the valuable services rendered by Sri
V.B.Haribhakti and the co-operation extended by him as a Director and
Member of the Audit Committee during the tenure of his office.
The Board of Directors at their Meeting held on 20-05-2015 has
appointed Sri R.R.Balasundharam as an Independent Director in the
intermittent vacancy caused by the resignation of Sri V.B.Haribhakti,
who will hold office up to the date of the ensuing Annual General
Meeting. The Company has received requisite notice in writing from a
Member proposing Sri R.R.Balasundharam for appointment as an
Independent Director.
In accordance with the provisions of Section 203 of the Companies Act,
2013 the Company has the following Key Managerial Personnel:
Mr. A.Doraiswamy Chief Executive
Officer
Mr. K.P.Krishnakumar Chief Financial
Officer
Mr. R.Muthukumar Company Secretary
The details as required under Section 197(12) of the Companies Act,
2013 read with Rule 5 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 are furnished in Annexure 2 forming
part of the Board's Report.
Declaration of Independent Directors
The Company has received declaration from all the Independent Directors
of the Company confirming that they meet with the criteria of
independence as prescribed under sub Section (6) of Section 149 of the
Companies Act, 2013 and Clause 49 of the Listing Agreement with the
Stock Exchange.
Annual Performance Evaluation
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, a separate exercise was carried out by the
Board of Directors at their meeting held on 09.02.2015 to review the
performance of the individual Directors without the presence of the
Director who was evaluated on parameters such as level of engagement
and contribution and independence of judgment, etc. The board also
carried out annual performance evaluation of its Committees.
The independent Directors of the Company at their meeting held on
09.02.2015 without the attendance of the non independent Directors and
members of Management reviewed the performance of Non independent
Directors and the Board as a whole and about the quality, quantity and
timings of the flow of information between the Company Management and
the Board that is necessary for the Board to efficiently and reasonably
perform its duties.
Remuneration Policy
The Board has, on the recommendation of the Nomination & Remuneration
Committee framed a Policy for selection and appointment of Directors,
Key Managerial Personnel's and their remuneration. The Remuneration
Policy as approved by the Board is furnished as Annexure 3 to this
Report.
Auditors
M/s.N.R.Doraiswami & Co. Chartered Accountants, Statutory Auditors of
the Company are due to retire at the ensuing Annual General Meeting.
As recommended by the Audit Committee, it is proposed to re-appoint
M/s.N.R.Doraiswami & Co. as Statutory Auditors of the Company. The
Members are requested to consider their appointment and may authorize
the Board to fix their remuneration.
M/s.N.R.Doraiswami & Co. (ICAI Regn. No. 000771S) have confirmed their
appointment, if made, shall be in accordance with the provisions of
Section 141 of the Companies Act, 2013.
Secretarial Auditors
The Board has appointed Mr.M.R.L.Narasimha, Practising Company
Secretary, to conduct Secretarial Audit for the Financial Year 2014Â
15. The Secretarial Audit Report for the Financial Year ended March 31,
2015 is annexed to this Report (Annexure 4). The Secretarial Audit
Report does not contain any qualification, reservation or adverse
remark.
Related Party Transactions
All Related Party Transactions entered into during the financial year
were on arm's length basis and were in the ordinary course of the
business. There are no materially significant Related Party
Transactions made by the Company with Promoters, Key Managerial
Personnel or other designated persons which may have potential conflict
with the interest of the company at large. Hence Form AOC - 2 pursuant
to Section 134(3)(h) of the Companies Act, 2013 read with Rule 8 (2) of
the Companies (Accounts) Rules 2014 is not applicable.
The Policy on materiality of Related Party Transactions and dealing
with Related Party Transactions as approved by the Board may be
accessed on the Company's website at the link at
http://www.lakshmiautomatic.com / investors / policies /
related-party-transaction- policy/
Auditors' Report
There are no qualifications in the Auditors' Report
Report on Corporate Governance and Management Discussion and Analysis
The Report on Management Discussions and Analysis (Annexure 5) and the
Report on Corporate Governance (Annexure 6) along with the Auditors'
Certificate of compliance on Corporate Governance form part of the
Annual Report.
Risk Management
The Company has laid down the Risk Assessment and Minimisation
Procedures and on evaluation by the Audit Committee are reviewed by the
Board from time to time.
Internal Financial Controls
The Company has in place adequate internal financial controls with
reference to financial statements. During the year, such controls were
reviewed and no reportable material weakness in the system or operation
was observed.
Vigil Mechanism
The Company has a Whistle Blower Policy to deal with unethical or
improper practice or violation of Companies Code of Business Conduct or
concerns about unethical behavior, actual or suspected fraud or
disclosure practices of the Company. No person is denied access to the
Audit Committee.
Corporate Social Responsibility
Your Company is not coming under the purview of the Corporate Social
Responsibility under Section 135 of the Companies Act, 2013
General
Information with respect to Conservation of Energy, Technology
Absorption, Foreign Exchange Earnings and Outgo pursuant to Section
134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies
Rules, 2014 is appended hereto.
Your Directors state that no disclosure or reporting is required in
respect of the following items as there were no transactions on these
items during the year under review:
1. Details relating to Deposits covered under Chapter V of the Act.
2. Issue of Equity Shares with differential rights as to dividend,
voting or otherwise.
3. Issue of shares (including Sweat Equity Shares) to Employees of the
Company under any scheme.
4. There have been no material changes and commitments affecting the
financial position of the Company, which have occurred between the end
of the financial year under review and the date of this report.
5. No significant or material orders were passed by the Regulators or
Courts or Tribunals which impact the going concern status and Company's
operations in future.
6. Your Directors further state that during the year under review,
there were no complaints pursuant to the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013.
Acknowledgement
Your Directors thank the Indian Bank for their continued support and
Voltas Limited and In focus Marketing and Services Limited for their
services rendered during the year.
By Order of the Board
Coimbatore (Sd.) S. Pathy
06.08.2015 Chairman
Mar 31, 2013
The Directors submit their Thirty Ninth Annual Report together with
the Audited Balance Sheet as at 31st March, 2013 and the Statement of
Profit and Loss for the year ended 31st March, 2013.
Financial Results
2012-2013 2011-2012
Rs. in Lakhs
Sales and other Income 734.48 815.42
Profit before Depreciation and
amortization Expenses 235.67 99.85
Depreciation and amortization
Expenses 34.82 36.54
200.85 63.31
Add: Exceptional items 19.13 55.22
219.98 118.53
Deferred Tax (70.08) (9.65)
290.06 128.18
Proposed Dividend on
6% Cumulative
Redeemable Preference
Shares for the year ended
31.03.2012 51.00 51.00
Corporate Tax on Dividend 8.67 8.27
Net Profit / Loss (-) 230.39 68.91
Add : Balance from the
Previous year (-)1612.34 (-)1681.25
Balance Carried Over (-11381.95 (-11612.34
The operations during the year have resulted in a net profit of
Rs.290.06 lakhs after providing for depreciation of Rs.34.82 lakhs.
Weaving Machinery and Spares - (Unit 1)
The sale of Accessories and Spares of Weaving Machinery during the year
was Rs.148.15 lakhs against Rs. 161.90 lakhs in the previous year.
Due to availability of used Weaving Machines and increased use of
shuttleless Weaving Machines, no orders for ''C type shuttle Weaving
Machines were received during the year. Hence the operations were
limited to manufacture of accessories and spares Of Weaving Machines
only.
The income generated on utilisation of the surplus Building space in
Unit 1 during the year was Rs.237.06 lakhs.
Other Engineering Services - (Unit 2)
The 100% EOU of the Company at Kinathukadavu in Coimbatore District, on
expiry of the EOU permission granted,is functioning as DTA(Domestic
Tariff Area) with effect from 16.08.2012 and continues to manufacture
and supply the parts and tool holders to Eppinger Tooling Asia (P) Ltd
an 100% EOU. The deemed export of parts for Machine Tools including
Tool Holders to Eppinger Tooling Asia (P) Ltd during the year was lower
at Rs. 175.99 lakhs against Rs.363.68 lakhs in the previous year on
account of recession in the international market.
Current Industrial Trend
It is reported that the impact of recessionary trends prevailing in
textile machinery manufacturing in the global markets, have eased a
bit.
Scheme sanctioned by BIFR
On the net worth becoming positive as on 31.03.2010 the Company was
discharged from the purview of the BIFR as per its order dated
14-07-2010. The scheme sanctioned by the BIFR has been implemented as
on 31-03-2013.
Dividend
The Directors have recommended arrears of Dividend on the 6% Cumulative
Redeemable Preference Shares for the year ended 31 -03-2012 absorbing a
sum of Rs.59,66,745 and the Dividend for the year is deferred to
maintain liquidity. No Dividend on the equity shares for the year has
been recommended due to carry forward losses.
Directors
In accordance with the Companies Act, 1956 and the Articles of
Association, the following Directors are due to retire by rotation at
the ensuing Annual General Meeting and being eligible, offer themselves
for reappointment:
1. Sri S.Pathy
2. Sri RX.H.Reddy
Sri Sudhir Sharma has been appointed as a Director in the casual
vacancy caused by the resignation of Sri Milind M.Shahane, by the Board
of Directors at their Meeting held on 10-02- 2012 and holds office upto
the date of the 39th Annual General Meeting and is eligible for
appointment and in respect of whom the company has received notice in
writing proposing him for the office of Director.
DIRECTORS'' RESPONSIBILITY STATEMENT :
On the basis of the information furnished by the Company''s Officers and
the Auditors, the Directors state that:
i) In the preparation of the Statement of Profit and Loss for the year
ended 31st March, 2013 and the Balance Sheet as on that date, all the
applicable accounting standards have been followed.
ii) Accounting Policies, that are reasonable and prudent, have been
selected and applied consistently 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 the profit of the company for the year ended 31st March, 2013.
iii) The accounting records in accordance with the provisions of the
companies Act, 1956 and for safeguarding the assets of the company as
also for preventing and detecting fraud and other irregularities, have
been properly maintained and
iv) The Statement of Profit and Loss and Balance Sheet have been
prepared on a going concern basis.
Auditors
The Company''s Auditors M/s.N.R.Doraiswami & Co., are to retire at the
ensuing Annual General Meeting and are eligible for re-appointment and
necessary certificate has been received from them as required under
Section 224 (1B) of the Companies Act, 1956.
General
The information pursuant to Section 217 (1)(e) of the Companies Act,
1956 is appended hereto.
During the year under review, there was no employee drawing
remuneration in excess of the amount prescribed under Section 217 (2A)
of the Companies Act, 1956.
Your Directors thank the Indian Bank and Eppinger Tooling Asia (P) Ltd
for their continued support and Voltas Ltd and Infocus Marketing and
Services Ltd. for their services rendered during the year.
By Order of the Board
Coimbatore (Sd.) S. Pathy
20.05.2013 Chairman
Mar 31, 2012
The Directors submit their Thirty Eighth Annual Report together with
the Audited Balance Sheet as at 31st March, 2012 and the Statement of
Profit and Loss for the year ended 31st March, 2012.
Financial Results
2011-2012 2010-2011
Rs. in Lakhs
Sales and other Income 815.42 654.88
Profit before Depreciation and amortization
Expenses 99.85 91.31
Depreciation and amortization Expenses 36.87 40.07
62.98 51.24
Add : Exceptional items 55.55 41.30
118.53 92.54
Deferred Tax (9.65) -
128.18 92.54
Proposed dividend on 6% Cumulative
Redeemable Preference Shares for the
year ended 31.03.2011 51.00 -
Corporate Tax on Dividend 8.27 -
Net Profit / Loss (-) 68.91 92.54
Add : Balance from the Previous year (-)1681.25 (-)1773.79
Balance Carried Over (-)1612.34 (-)1681.25
The operations during the year have resulted in a net profit of
Rs.128.18 Lakhs after providing for depreciation of Rs.36.54 Lakhs.
Weaving Machinery and Spares - (Unit 1)
The sale of Weaving Machines and Accessories and Spares during the year
was Rs.161.90 Lakhs against Rs.273.57 Lakhs in the previous year.
The demand for 'C' type Shuttle Weaving Machines during the year
declined due to availability of used Weaving Machines as well as
increased use of shuttleless Weaving Machines on account of the
technological advantages.
In the absence of orders for machines, the Company's operations were
limited to manufacture of accessories and spares of Weaving Machines.
The income generated on renting out of surplus Building space during
the year was Rs.180.79 Lakhs.
Other Engineering Services - (Unit 2 & 3)
The deemed export of parts for Machine Tools including Tool Holders
during the year was Rs.363.68 Lakhs against Rs.154.24 Lakhs in the
previous year. The sale of parts and job work undertaken during the
year was Rs.21.66 Lakhs against Rs.62.64 Lakhs in the previous year.
Current Industrial Trend The use of shuttleless weaving machines both
by the organised and unorganised sectors of the Weaving Industry has
been increasing. The import of used and new shuttleless weaving
machines is continuing.
The development of a suitable indigenous shuttleless weaving machine
was hampered due to technoeconomic viability.
Implementation of the Scheme sanctioned by BIFR
The Company is implementing the scheme sanctioned by the BIFR and will
be completed by the current year ending 31.03.2013. On the networth
becoming positive as on 31.03.2010 the Company has been discharged from
the purview of the BIFR as per its order dated 14.07.2010. Dividend
The Directors have recommended arrears of dividend on the 6% Cumulative
Redeemable Preference Shares for the year ended 31.03.2011 absorbing a
sum of Rs.59,27,348 and the dividend for the year is deferred to
maintain liquidity. No dividend on the Equity shares for the year has
been recommended due to carry forward losses.
Directors
Sri Milind M.Shahane resigned his Directorship on 10.02.2012 in view of
his other commitments and in the causal vacancy caused Sri Sudhir
Sharma has been appointed as a Director by the Board of Directors at
their Meeting held on 10.02.2012.
The Board has placed on record the valuable services rendered and the
co-operation extended by Sri Milind M. Shahane during the tenure of his
Office as a Director.
Smt.Aishwarya Pathy has been appointed as an Additional Director of the
Company with effect from 23rd May, 2012.
Sri R.Varadarajan has been appointed as an Additional Director of the
Company with effect from 23rd May, 2012.
In accordance with the Companies Act, 1956 and the Articles of
Association, the following Directors are due to retire by rotation at
the ensuing Annual General Meeting and being eligible, offer themselves
for reappointment:
1. Sri V.B. Haribhakti
2. Sri N. Jaychander
DIRECTORS' RESPONSIBILITY STATEMENT
On the basis of the information furnished by the Company's Officers
and the Auditors, the Directors state that :
i) In the preparation of the Statement of Profit and Loss for the year
ended 31st March, 2012 and the Balance Sheet as on that date, all the
applicable accounting standards have been followed.
ii) Accounting Policies, that are reasonable and prudent, have been
selected and applied consistently 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 the profit of the company for the year ended 31 st March, 2012.
iii) The accounting records in accordance with the provisions of the
Companies Act, 1956 and for safeguarding the assets of the company as
also for preventing and detecting fraud and other irregularities, have
been properly maintained and
iv) The Statement of Profit and Loss and Balance Sheet have been
prepared on a going concern basis.
AUDITORS
The Company's Auditors M/s. N.R. Doraiswami & Co., are to retire at
the ensuing Annual General Meeting and are eligible for re-appointment
and necessary certificate has been received from them as required under
Section 224(IB) of the Companies Act, 1956.
GENERAL
The information pursuant to Section 217(1)(e) of the Companies Act,
1956, is appended hereto.
During the year under review, there was no employee drawing
remuneration in excess of the amount prescribed under Section 217 (2A)
of the Companies Act,1956.
Your Directors thank the Indian Bank and ESA Eppinger, Germany for
their continued support and co-operation and Voltas Ltd and Infocus
Marketing and Services Ltd, for their services rendered during the
year.
By Order of the Board
Coimbatore (Sd.) S. Pathy
23.05.2012 Chairman
Mar 31, 2011
Report of the Board of Directors to the Shareholders
The Directors submit their Thirty Seventh Annual Report together with
the Audited Balance Sheet as at 31st March, 2011 and the Profit and
Loss Account for the year ended 31st March, 2011.
Financial Results
2010-2011 2009-2010
Rs. in Lakhs
Sales and other Income 660.19 1693.00
Profit before Depreciation 65.45 963.74
Depreciation 39.74 38.51
25.71 925.23
Add: Excess provision for
interest withdrawn 67.16 -
Excess Depreciation withdrawn - 0.03
Less: Share issue expenses 0.33 11.79
92.54 913.47
Proposed dividend on 6% Cumulative
Redeemable Preference Shares - 5.87
Net Profit/Loss (-) 92.54 907.60
Add : Balance from the Previous year (-)1773.79 (-)2681.39
Balance Carried Over (-)1681.25 (-)1773.79
The operations during the year have resulted in a net profit of
Rs.92.54 lakhs after providing for depreciation of Rs.39.74 lakhs.
Weaving Machinery and Spares - (Unit 1)
The sale of Weaving Machines and Spares including export of 12 Weaving
Machines to China during the year was Rs.273.57 lakhs against Rs.149.40
lakhs in the previous year.
The demand for 'C' type Shuttle Weaving Machines is limited to specific
applications such as for weaving heavy sorts, industrial fabrics, etc.
and is unsteady. The continued import of used Weaving Machines has
further affected the market. The steep increase in the price of cotton
and consequent fluctuation in the yarn prices have also affected the
weaving industry.
Other Engineering Services - (Unit 2 & 3)
The sale of parts for Machine Tools including Tool Holders during the
year has increased to Rs.154.24 lakhs against Rs.88.66 lakhs in the
previous year. The prices offered are highly competitive and are not
remunerative. The manufacture and sale of parts and job work undertaken
during the year was Rs.62.64 lakhs against Rs.27.87 lakhs in the
previous year.
Current Industrial Trend
The demand for Weaving Machines depends on the growth of the textile
Industry. The textile Industry has been affected due to the steep
increase in the price of cotton, shortage of power, labour, etc. The
deferment of Technology Upgradation Fund Scheme(TUFS) has also affected
the market for weaving machines.
Implementation of the Scheme sanctioned by BIFR
The dues to the secured creditors have been cleared and payments under
the VRS to the workmen have been made. The Company was discharged from
the purview of the Board for Industrial and Financial Reconstruction
(BIFR) on the networth of the company becoming positive as on
31.03.2010, as per the order of the BIFR dated 14.07.2010.
Dividend
The Directors have not recommended dividend for the year on the 6% -
Cumulative Redeemable Preference Shares to maintain liquidity. The
Directors are unable to recommend a dividend on the Equity Shares on
account of the accumulated losses.
Directors
Sri S. Venkataraman resigned his directorship on 30.05.2011 in view of
his various other commitments and in the casual vacancy caused Sri
Milind M. Shahane has been appointed as a Director by the Board of
Directors at their Meeting held on 30.05.2011.
The Board has placed on record the valuable services rendered and the
co-operation extended by Sri S. Venkataraman during the tenure of his
office as a Director.
In accordance with the Companies Act, 1956 and the Articles of
Association, the following Directors are due to retire by rotation at
the ensuing Annual General Meeting and being eligible, offer themselves
for re-appointment.
1. Sri R. Santharam
2. Sri R.C.H. Reddy
Directors' Responsibility Statement
In compliance of Section 217 (2AA) of the Companies Act, 1956 the
Directors state that:-
i) In the preparation of Profit and Loss Account for the period ended
31st March, 2011 and the Balance Sheet as on that date, all the
applicable accounting standards have been followed.
ii) Accounting Policies, that are reasonable and prudent, have been
selected and applied consistently 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 the profit of the company for the period ended 31st March, 2011.
iii) The accounting records in accordance with the provisions of the
Companies Act, 1956 and for safeguarding the assets of the company as
also for preventing and detecting fraud and other irregularities, have
been properly maintained and
iv) The Profit and Loss Account and Balance Sheet have been prepared on
a going concern basis.
Auditors
The Company's Auditors M/s. N.R. Doraiswami & Co., are to retire at the
ensuing Annual General Meeting and are eligible for re- appointment and
necessary certificate has been received from them as required under
Section 224(IB) of the Companies Act, 1956.
General
The information pursuant to Section 217(1)(e) of the Companies Act,
1956 is appended hereto.
During the year under review, there was no employee drawing
remuneration in excess of the amount prescribed under Section 217 (2A)
of the Companies Act, 1956.
Your Directors thank the Indian Bank and ESA Eppinger, Germany for
their continued support and co-operation and Voltas Ltd and Infocus
Marketing and Services Ltd, for their services rendered during the
year.
By Order of the Board
(Sd.) S. Pathy
Chairman
Coimbatore
30.05.2011
Mar 31, 2010
Your Directors submit their Thirty Sixth Annual Report together with
the Audited Balance Sheet as at 31st March, 2010 and the Profit and
Loss Account for the year ended 31st March, 2010.
Financial Results
2009-2010 2008-2009
Rs. in Lakhs
Sales and other Income 1693.00 1229.37
Profit before Depreciation 963.74 (-)245.77
Depreciation 38.51 46.29
925.23 (-)292.06
Add : Amount set off against
claim for loss of profit - 212.09
Excess Depreciation withdrawn 0.03 -
Less: Fringe Benefit Tax - 1.54
Share issue expenses 11.79 -
913.47 (-)81.51
Proposed dividend on 6% Cumulative
Redeemable Preference Shares 5.87 -
Net Profit / Loss (-) 907.60 (-)81.51
Add : Balance from the Previous year (-)2681.39 (-)2599.88
Balance Carried Over (-)1773.79 (-)2681.39
The performance during the year was affected due to the continued
demand recession for Weaving Machines & Spares, Parts for Machine Tools
and Circular Knitting Machines. On taking into account the sale
proceeds of land at Hosur, the operations during the year have resulted
in a net profit of Rs.913.47 lakhs after providing for depreciation of
Rs.38.51 lakhs.
Weaving Machinery Division - Unit 1
The sale of Weaving Machines and Spares including exports during the
year was Rs.149.40 lakhs against Rs.652.74 lakhs in the previous year.
Due to the availability of Shuttleless Looms both used and new, the
Market for the companys C type Shuttle Weaving Machines was affected
drastically. The use of C type
Shuttle Weaving Machines is limited to specific applications such as
for weaving heavy sorts, industrial fabrics, etc. and the demand is
unsteady.
100% EOU - Unit 2 & DTA - Unit 3
The export of Parts for Machine Tools including Tool Holders and Parts
for Circular Knitting Machines during the year was lower at Rs.102.63
lakhs against Rs.479.49 lakhs in the previous year. The order inflow
for Parts for Machine Tools and Parts for Circular Knitting Machines
was sluggish during the year due to price competition and the global
recession.
Current Industrial Trend
The industrial growth though showed signs of improvement, the demand
for C type Shuttle
Weaving Machines continues to be dormant. The revival of textile
industry is hampered by the fluctuation in cotton prices, shortage of
power, demand for trained labour, etc. The demand for Weaving Machinery
is linked to the prospects of textile industry.
Modified Rehabilitation Scheme (MRS)
As per the Modified Rehabilitation Scheme sanctioned by the BIFR,
14.406 acres of land at Sipcot Industrial Complex, Hosur, was sold and
the sale proceeds of the land were utilised for settling the dues to
the secured creditors, payment of VRS compensation and other
liabilities of the company. An agreement for leasing a part of the
buildings at the Weaving Machinery Division at Hosur has been entered
into and the lease rental for the remaining area of the buildings is
under negotiation. The rental income from the buildings will contribute
to the overall income of the Company.
Issue of Preference Shares
The Authorised Capital of the Company has been increased from Rs.10
crores to Rs.15 crores on reclassification and issue of 8,50,000 - 6 %
Cumulative Redeemable Preference Shares of Rs.100/- each on
preferential basis in conformity with Section 81 (1A)of the Companies
Act, 1956. The Preference Shares are redeemable in one instalment on
expiry of ten years from the date of allotment. The proceeds were
applied in settling the outstanding liabilities to the unsecured
creditors, payment of VRS compensation, etc.
Dividend
The Directors have recommended a dividend of 6% for the year on the
Cumulative Redeemable Preference Shares, payable proportionally from
the date of allotment of the shares. The Directors are unable to
recommend a dividend on the Equity Shares on account of the accumulated
losses.
Directors
In accordance with the Companies Act, 1956 and the Articles of
Association, the following Directors are due to retire by rotation at
the ensuing Annual General Meeting and being eligible,offer themselves
for reappointment:
1. Sri S. Pathy
2. Sri V.B. Haribhakti
DIRECTORS RESPONSIBILITY STATEMENT:
Incompliance of Section 217 (2AA) of the Companies Act 1956, the
Directors state that:
i) In the preparation of Profit and Loss Account for the period ended
31st March, 2010 and the Balance Sheet as on that date, all the
applicable accounting standards have been followed.
ii) Accounting Policies, that are reasonable and prudent, have been
selected and applied consistently 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 the Profit of the company for the period ended 31st March, 2010.
iii) The accounting records in accordance with the provisions of the
Companies Act, 1956 and for safeguarding the assets of the company as
also for preventing and detecting fraud and other irregularities, have
been properly maintained and
iv) The Profit and Loss Account and Balance Sheet have been prepared on
a going concern basis.
AUDITORS:
The Companys Auditors M/s. N.R. Doraiswami & Co., are to retire at the
ensuing Annual
General Meeting and are eligible for re-appointment and necessary
certificate has been received from them as required under Section
224(IB) of the Companies Act, 1956.
GENERAL:
The information pursuant to Section 2l7(1)(e) of the Companies Act,
1956 is appended hereto.
During the year under review, there was no employee drawing
remuneration in excess of the amount prescribed under Section 217 (2A)
of the Companies Act, 1956.
Your Directors thank the Indian Bank and ESA Eppinger, Germany for
their continued support and co-operation and Voltas Ltd and Infocus
Marketing and Services Ltd, for their services rendered during the
year.
By Order of the Board
Coimbatore (sd-) S. Pathy
27.05.2010 Chairman
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