Mar 31, 2016
To the Members,
The Directors have pleasure in presenting their 24th Annual Report and Audited Statement of Accounts of the Company for the year ended 31st March, 2016.
PERFORMANCE AT A GLANCE:
(Rs, in Lakhs)
Particulars |
Year ended 31.03.2016 |
Year ended 31.03.2015 |
Gross Income |
5459.27 |
5507.30 |
Profit/(Loss) Before Depreciation, Tax & Financial |
||
Expenses |
741.73 |
772.56 |
Financial Expenses |
613.80 |
439.38 |
Depreciation |
312.88 |
286.88 |
Profit/ (Loss) Before Tax |
(184.95) |
46.30 |
Less: Exceptional Items |
- |
- |
Less: Extraordinary Items |
- |
- |
Tax expenses: |
||
a. Current Tax |
8.82 |
|
b. Fringe Benefit Tax |
- |
- |
c. Deferred Tax Liability |
123.23 |
23.98 |
d. Income-Tax for earlier year |
- |
- |
Profit/(Loss) for the year carried to Balance Sheet |
(308.18) |
13.50 |
DIVIDEND
In view of absence of Profit in the Financial year 2015-16, the Board of Directors has not recommended Dividend.
TRANSFER TO RESERVES:
The total Reserves and Surplus as on March 31, 2016 is Rs, 18,23,13,212/- comprising of General Reserve Rs, 49,38,773/-; Surplus in Profit & Loss Account is Rs, 1,32,58,440/- and Share Premium Account Rs, 16,41,16,000/-.
BUSINESS OPERATIONS:
The Company has made a gross income of Rs, 5459.27 Lakhs during the year under review (previous year- Rs, 5507.30 Lakhs). The depreciation for the year under review amounted to Rs, 312.88 Lakhs as against Rs, 286.88 Lakhs in the corresponding period of the previous year. The Company has registered a loss of Rs, 308.18 Lakhs during the year under review as against the profit after tax of Rs, 13.50 Lakhs of the previous year. Higher depreciation and Finance cost were the main reasons for the loss.
MARKET SCENARIO
Market scenario is still challenging and competitive. However your Company has managed to maintain the turnover.. We are mainly involved in manufacturing and trading of Wedding Invitation Cards, Greeting Cards, Visiting Cards, Office Envelopes, and Cloth lined Covers, Student Notebooks, Account Books, Files, etc. and we are also involved in the trading of the items like Screen-Offset Inks. Our Brand name âOLYMPICâ is popular and well known to the general public for its quality, affordability, variety and reliability for many decades.
MANAGEMENT DISCUSSION AND ANALYSIS
A detailed review of operations, performance and future outlook of the Company is contained in the âMANAGEMENT DISCUSSION AND ANALYSIS REPORTâ that forms an integral part of this report. (Annexure -1).
MATERIAL CHANGES & COMMITMENTS:
There is no change in the nature of business of the company during the year. There are no material changes and commitments in the business operations of the company since the close of the financial year on 31st March 2016 to the date of this report.
EXTRACT OF ANNUAL RETURN:
As required pursuant to Section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014, an extract of annual return in MGT 9 is given in (Annexure-II).
REAPPOINTMENT OF DIRECTOR:
Mrs S. Jarina (DIN: 00269434), Director is retiring by rotation at this Annual General Meeting and being eligible offer herself for re-appointment.
DECLARATION FROM INDEPENDENT DIRECTORS ON ANNUAL BASIS:
The Company has received necessary declaration from each Independent Director of the Company under Section 149 (7) of Companies Act, 2013 that the Independent Directors of the company meet with the criteria of their Independence laid down in Section 149 (6) of the Companies Act, 2013.
PARTICULARS OF EMPLOYEES:
Disclosure pertaining to remuneration and other details as required under Section 197(12) of the Companies Act, 2013 read with Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided elsewhere in the annual report.
No employee of the Company was in receipt of remuneration during the financial year 2015-16 in excess of the sum prescribed under Section 197(12) of the Companies Act, 2013 read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
DIRECTORS AND KEY MANAGERIAL PERSONNEL:
The details about the changes in the Directors and Key Managerial Personnel by way of appointment, resignation, etc. and disclosure of relationships between directors inter-se under relevant Regulation(s) of SEBI(LODR) Regulations, 2015 is included as part of Corporate Governance Report.
The Directors who are liable to retire by rotation and also whether they offer for re-appointment is included in the Notice of Annual General Meeting.
NUMBER OF MEETINGS OF BOARD:
The details of number of meetings of Board of Directors is included as a part of Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013.
COMPOSITION OF COMMITTEES OF BOARD:
Currently the board has the following committees: Audit Committee, Nomination & Remuneration Committee, Stake holders Relationship Committee, Internal Complaints Committee and Whistle Blower Committee.
The Composition & Activities are as follows:
Name of the Committee |
Composition of the Committee/ No of times the committee met |
Highlights of duties, responsibilities & Activities |
Audit Committee |
Mr. Abdul Latif Ameer Ali Chairman of the Committee. (Independent director) Mr. Ramanathan Lakshmanan (Independent director) Dr. S. Amuthakumar (Independent director) Mr. H.Noor Mohammed (Managing Director) |
The Audit Committee was mandated with the same Terms of Reference specified in the relevant provisions of the Companies Act, 2013 & Regulation(s) of the SEBI (LODR) Regulations, 2015. The Audit Committee is responsible for overseeing the Companyâs financial reporting process, reviewing the quarterly / half-yearly / annual financial statements, reviewing with the management the financial statements and adequacy of internal audit function, |
The Committee met |
recommending the appointment/re |
|
4 times on |
appointment of statutory auditors |
|
27-05-2015 |
and fixation of audit fees, |
|
11-08-2015 |
reviewing the significant internal |
|
14-11-2015 |
audit findings/related party |
|
09-02-2016 |
transactions, reviewing the Management Discussion and Analysis of financial condition and result of operations and also statutory compliance issues. The Committee acts as a link between the management, external and internal auditors and the Board of Directors of the Company. |
|
Mr. Abdul Latif Ameer Ali |
To fix salary allowances and |
|
Chairman of the Committee |
other perks to senior level |
|
(Independent director) |
personnel as and when appointed |
|
Nomination & |
by the Company. |
|
Remuneration |
Mr. Ramanathan |
REMUNERATION POLICY: |
Committee |
Lakshmanan |
The Remuneration Policy of the |
(Independent director) |
Company for the managerial |
|
Dr. S. Amuthakumar (Independent director) |
personnel is based on the |
|
performance potential and performance of the |
||
The Committee met |
individual/personnel. |
|
one time on |
CEO/CFO CERTIFICATION |
|
09-02-2016 |
by Mr. H. Noor Mohamed, Managing Director & Chief Executive Officer and Mr. R. Dhanasekaran, Chief Financial Officer as required under SEBI (LODR) Regulations 2015 was placed before the Board at its meeting held on 25.05.2016 |
Stakeholders Relationship Committee |
Mr.Ramanathan Lakshin anan Chairman of the Committee (Independent director) Mr. Abdul Latif Ameer Ali (Independent director) Dr. S. Amuthakumar (Independent director) No. of Meetings: Nil |
The company has a Stakeholders Relationship Committee that which meets according to the necessity. The shares received are usually transferred within a period of 10 to 15 days from the date of receipt, subject to their validity. Investors are eligible to file their nomination against shares held under physical mode. The facility of nomination is not available to non-individuals shareholders such as societies, trust, bodies corporate, karta of Hindu Undivided Families and holders of Power of Attorney. Investors are advised to avail this facility, especially investors holding securities in single name, to avoid the process of transmission by law. Investors holding shares held in electronic form, the nomination has to be conveyed to the relevant Depository participants directly, as per the format prescribed by them. |
Internal Complaints Committee |
Mr. Ramanathan Lakshmanan (Independent director) Dr. S. Amuthakumar (Independent director) No. of Meetings : Nil |
To consider & redress complaints of sexual harassment. |
Whistle Blower Committee |
Mr. Ramanathan Lakshmanan (Independent director) Dr. S. Amuthakumar (Independent director) No. of Meetings : Nil |
This provides adequate safeguards against victimization of Directors / Employees or any other person. |
POLICIES OF THE BOARD:
WHISTLE BLOWER POLICY:
WHISTLE BLOWER POLICY (POLICY ON VIGIL MECHANISM)
As per Section 177(9) of the Companies Act, 2013 read with relevant Rule 7 of the Companies (Meetings of Board and its Powers) Rules, 2014 and Regulation 22 of SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015 the Company has established vigil mechanism overseen by the Audit Committee. The Policy ensures that strict confidentiality is maintained whilst dealing with concerns and also that no discrimination will be meted out to any person for a genuinely raised concern. This has been uploaded in the Companyâs website. No complaint under this facility was received in the financial year 2015-16. There has been no change to the Whistle Blower Policy adopted by the Company during fiscal 2016.
REMUNERATION POLICY:
The Remuneration Policy of the Company for the managerial personnel is based on the performance potential and performance of the individual/personnel.
Criteria for payment of Remuneration to Non-Executive Directors (Pursuant to Part-D Schedule II (1) of SEBI(LODR) Regulation 2015.
The Non-Executive Directors will be paid sitting fees for attending the Board and Committee Meetings as per the stipulations in the Act, and the Articles of Association of the company and as recommended by the Nomination and Remuneration Committee. Different scales of sitting fee may be fixed for each category of the directors and type of meeting. However, the fees payable to the Independent Directors and Woman Directors shall not be lower than the fee payable to other categories of directors.
In addition to this, the travel and other expenses incurred for attending the meetings are to be met by the Company. Subject to the provisions of the Act and the Articles of Association, the Company in General Meeting may by special resolution sanction and pay to the Directors remuneration not exceeding 1 % of the net profits of the Company computed in accordance with the relevant provisions of the Act. The company shall have no pecuniary relationship or transactions with any Non-Executive Directors.
RISK MANAGEMENT POLICY:
The Company has Business Risk Management framework to identify, evaluate business risks and opportunities. This framework seeks to create transparency, minimize adverse impact on the business objectives and enhance the Company''s competitive advantage.
RELATED PARTY TRANSACTION POLICY:
The Policy regulates all transactions between the Company and its related parties.
INSIDER TRADING POLICY:
The Policy provides the framework in dealing with Securities of the Company.
AUDITORS:
M/S. C.S. Hariharan & Co (FR N0.OOIO86S), Chartered Accountants, Chennai-600 014, has been appointed as the auditors of the Company at the 22nd Annual General Meeting held on 11.09.2014 and their appointment is ratified for the current financial year. There are no qualifications in the Independent Auditors report.
SECRETARIAL AUDIT:
Pursuant to Section 204(1) of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed Mr. T.Murugan, a Practicing Company Secretary (C.P.No.4393) to undertake the Secretarial Audit of the Company for Financial Year 2015-16.
The Secretarial Audit Report was placed before the Board on 25th May 2016. There are no qualifications in the Secretarial Audit Report (Annexure-III).
PUBLIC DEPOSITS:
The Company has not accepted deposits during the year and there are no public deposits fallen due for payment and claimed but not paid as on 3151 March, 2016. The total amount of deposit outstanding as at 31st March, 2016 was Nil.
SIGNIFICANT & MATERIAL ORDERS:
There are no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company''s operations in future.
DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS:
The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. To maintain its objectivity and independence, the Internal Audit function reports to the Chairman of the Audit Committee of the Board. During the year, such controls were tested and no reportable material weaknesses in the operations were observed.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
The company did not give any Loan or Guarantee or provided any security or make investment covered under Section 186 of the Companies Act, 2013 during the year.
CORPORATE SOCIAL RESPONSIBILITY:
The requirements of compliance of Corporate Social Responsibility are not applicable to our company.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTY:
Particulars of contracts or arrangements with Related Parties referred in Section 188(1) of the Companies Act, 2013 is furnished in accordance with Rule 8(2) of the Companies (Accounts) Rules, 2014 inFormAOC-2 (Annexure-IV).
FORMAL ANNUAL EVALUATION:
The Board has carried out the annual performance evaluation of its own performance and the Directors individually after taking into consideration inputs received from the Directors, covering various aspects on the Boards'' functioning such as adequacy of the composition of the Board and its Committees, performance of specific duties, obligations and governance.
The Performance evaluation of the Independent Directors was carried out by the entire Board and the Performance evaluation of the Managing Director and the Executive Director was carried out by the Independent directors at their meeting held on 09.02.2016.
The Directors expressed their satisfaction with the overall evaluation process.
RATIO OF REMUNERATION TO EACH DIRECTOR:
Disclosure of Ratio of Remuneration to each Director to the median employeesâ remuneration
The ratio of the remuneration of each director to the median remuneration of the employee of the Company for the financial year |
|||
Name of the Director |
Ratio |
||
Mr. H.Noor Mohamed, Managing Director |
5.69:1 |
||
Mr. N. Mohamed Faizal, Whole Time Director |
5.69:1 |
||
The percentage increase in remuneration of each director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year |
NIL |
||
The percentage increase in the median remuneration of employees in the financial year |
0.98% |
||
The number of permanent employees on the rolls of company |
181 |
||
The explanation on the relationship between average increase in remuneration and Company performance |
The individual increments varied based on their performance. The increase in remuneration is in line with the market trends, internal parity and current salary of the employees. |
||
Comparison of the remuneration of the key Managerial Personnel against the performance of the Company |
Comparison of the remuneration of the Key Managerial Personnel against the performance of the Company in the period under review: Remuneration of KMP as a percentage of Revenue is : 0.0003 Remuneration of KMP as a percentage of PBT: Negative PBT. |
Variations in the market capitalization of the Company, price earnings ratio as at the closing date of the current financial year and previous financial year and percentage increase over decrease in the market quotations of the shares of the company in comparison to the rate at which the company came out with the last public offer in case of listed companies, and in case of unlisted companies, the variations in the net worth of the company as at the close of the current financial year and previous financial year |
Particulars |
31.03.2016 |
31.03.2015 |
change % over last public offer |
|||
Stock Price (in Rs,) |
17.50 |
20.75 |
(-) 41.67 |
||||
Market Cap (in Rs,) In Crores) |
28.54 |
33.84 |
(-) 41.67 |
||||
EPS |
-1.89 |
0.08 |
- |
||||
P/E |
- |
259.37 |
- |
||||
Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration |
The average annual increase in the salaries of employees other than the managerial personnel across the organization was around 4 to 12%. There is no increase in the managerial remuneration for the past six years . |
||||||
Comparison of the each remuneration of the Key Managerial Personnel against the performance of the company |
|||||||
Managing and Whole time Directors |
Company Secretary and Chief Financial officer |
||||||
Remuneration in FY 201516 |
Rs. 12,00,000/- |
Rs.5,04,000/- |
|||||
Revenue Rs.5413.57 La |
chs |
||||||
% of Revenue |
0.22 |
0.09 |
|||||
PAT Rs.(308.18) Lakhs |
|||||||
% of PBT |
Negative PBT |
Negative PBT |
|||||
The key parameters for any variable component of remuneration availed by the directors |
There is no variable component in the remuneration paid to the directors |
||||||
The ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in excess of the highest paid director during the year |
NIL |
||||||
Affirmation that the remuneration is as per the remuneration policy of the company |
Yes |
||||||
TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND:
There are no amount which remain unpaid/unclaimed for a period of seven years and hence no amount has been transferred to âIEPFâ.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The Particulars required to be given as per Section 134 (3) (m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 are annexed hereto and the same forms part of this Report. (Annexure-V)
REPORT ON CORPORATE GOVERNANCE
As required by Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 the auditors'' certificate on Corporate Governance is enclosed as Annexure-VI to the Board''s Report. The Auditors'' Certificate for fiscal 2016 does not contain any qualification, reservation or adverse remarks.
DIRECTORS'' RESPONSIBILITY STATEMENT:
The Financial Statements are prepared in accordance with the Generally Accepted Accounting Principles (GAAP) under the historical cost convention on accrual basis except for certain financial instruments, which are measured at fair values. GAAP Comprises Mandatory Accounting Standards as prescribed under Section 133 of the Companies Act, 2013 (âthe Actâ), read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). There are no material departures from the prescribed Accounting Standards in the adoption of these Standards.
The Directors confirm that
(a) In preparation of the annual accounts for the Financial Year ended March 31,2016, the applicable Accounting Standards have been followed.
(b) They 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 at the end of the financial year and of the Profit and Loss of the Company for that period.
(c) They have taken proper and sufficient care towards the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.
(d) They have prepared the annual accounts on a going concern basis.
(e) They have laid down internal financial controls which are adequate and are operating effectively.
(f) They have devised proper systems to ensure compliance with the provisions of all applicable laws and such systems are adequate and operating effectively.
LISTING FEES:
The Company confirms that it has paid the annual listing fees for the year 2016-17 to BSE where shares of the company are listed.
ACKNOWLEDGEMENTS:
Your Directors would like to take this opportunity to express their sincere thanks to its valued Customers, Distributors, Bankers and all other business associates for their continued co-operation and patronage. The Directors would also wish to express their gratitude to the valued shareholders for their trust and support. The Directors also wish to express their gratitude to the Employees at all levels, which has helped the Company to run its affairs smoothly
For and on behalf of the Board
Place: Chennai H. NOORMOHAMED
Date: 25.05.2016 CHAIRMAN
Mar 31, 2015
The Directors have pleasure in presenting their 23rd Annual Report and
Audited Statement of Accounts of the Company for the year ended 31st
March, 2015.
PERFORMANCE ATAGLANCE:
(Rs. in Lakhs)
Particulars Year ended Year ended
31.03.2015 31.03.2014
Gross Income 5507.30 5381.27
Profit(Loss) Before Depreciation, Tax &
Financial
Expenses 772.55 841.01
Financial Expenses 439.37 315.13
Depreciation 286.88 81.21
Profit/(Loss) Before Tax 46.30 444.67
Less: Exceptional Items
Less: Extraordinary Items - 50.59
Tax expenses:
a. Current Tax 8.82 71.33
b. Fringe Benefit Tax
c. Deferred Tax Liability 23.98 57.52
d. Income-Tax for earlier year
Profit/(Loss) for the year carried to
Balance Sheet 13.50 265.23
DIVIDEND
The Boards of Directors recommend for a Dividend of 5% i.e. Fifty paise
on each fully paid-up equity share of Rs.10/- each for the year ended
31 March, 2015 (Previous year-7%). The dividend will entail an outflow
of Rs.81.54 Lakhs excluding taxes. The Dividend, in the opinion of the
Board represents a prudent balance between the need for the Company to
reward its shareholders as well as the need to plough back the profits
for the Company's own requirements. Owing to reduction of profits as
against the previous year, the Board proposes to disburse the dividend
out of surplus in profit and loss account held by the company for the
current year.
TRANSFER TO RESERVES:
A sum of Rs. 1,15,741 /-has been transferred to General Reserve out of
the profits for the year under review. The total Reserves and Surplus
as on March 31,2015 is Rs.21,63,73,878/- comprising of General Reserve
Rs.49,38,773/-; Surplus in Profit & Loss Account Rs.4,73,19,105/- and
Share Premium Account Rs. 16,41,16,000/-.
BUSINESS OPERATIONS:
The Company has made a gross income of Rs.5507.30 Lakhs during the year
under review (previous year-Rs.5381.27 Lakhs). The depreciation for the
year under review amounted to Rs.286.88 Lakhs as against Rs.81.21 Lakhs
in the corresponding period of the previous year. The Company has
registered a profit after tax of Rs. 13.50 Lakhs during the year under
review as against the profit after tax of Rs.265.23 Lakhs of the
previous year. Due to implementation of the expansion, there was
increase in the Interest and depreciation. Consequently there has been
dip in the profitability.
MARKET SCENARIO
Market scenario is still challenging and competitive. However your
Company has managed to increase the turnover. The establishment of
company owned retail outlets has contributed towards turnover and
improved profitability is expected to grow in future. We are mainly
involved in manufacturing and trading of Wedding Invitation Cards,
Greeting Cards, Visiting Cards, Office Envelopes, and Cloth lined
Covers, Student Notebooks, Account Books, Files, etc. and we are also
involved in the trading of the items like Screen-Offset Inks. Our Brand
name "OLYMPIC" is popular and well known to the general public for its
quality, affordability, variety and reliability for many decades.
MANAGEMENT DISCUSSION AND ANALYSIS
A detailed review of operations, performance and future outlook of the
Company is contained in the "MANAGEMENT DISCUSSION AND ANALYSIS REPORT"
that forms an integral part of this report. (Annexure -I).
MATERIAL CHANGES & COMMITMENTS:
There is no change in the nature of business of the company during the
year. There are no material changes and commitments in the business
operations of the company since the close of the financial year on 31
st March 2015 to the date of this report.
EXTRACT OF ANNUAL RETURN:
As required pursuant to Section 92(3) of the Companies Act, 2013 and
rule 12(1) of the Companies (Management and Administration) Rules,
2014, an extract of annual return in MGT 9 is given in (Annexure-II).
REAPPOINTMENT OF DIRECTOR:
Mr. N.Mohamed Faizal (DIN: 00269448), Director is retiring by rotation
at this Annual General Meeting and being eligible offer himself for
re-appointment.
APPOINTMENT OF DIRECTOR:
Mrs. SJarina, (Din: 00269434) who was appointed as an additional
director, by a resolution passed by the Board of Directors in its
meeting held on 31st March 2015, vacates the office as an Additional
Director on the date of forthcoming Annual General Meeting in
accordance with the section 161(1) of the Companies Act, 2013. The
company has received a notice in writing under section 160 of the
Companies Act, 2013 from a member proposing the candidature of Mrs. S.
Jarina for the office of the director of the company along with the
required deposit
The Board considers it advantageous and in the interest of the Company
to have Mrs. SJarina as a director of the company.
The matter is being placed before the Members for their consideration
and approval.
RE-APPOINTMENT OF DIRECTOR:
Mr. N.Mohamed Faizal (DIN: 00269448), was re-appointed as a Whole-Time
Director of the Company with effect from 01.12.2012 for a period of 3
years and his term is expiring on 30.11.2015. Keeping in view his rich
experience and valuable contribution to the Company, the Board proposes
to re-appoint him as Whole-Time Director with effect fromOl. 12.2015
for aperiodof 3 years.
DECLARATION FROM INDEPENDENT DIRECTORS ON ANNUALBASIS:
The Company has received necessary declaration from each Independent
Director of the Company under Section 149 (7) of Companies Act, 2013
that the Independent Directors of the company meet with the criteria of
their Independence laid down in Section 149 (6).
COMPOSITION OF COMMITTEES OF BOARD:
Currently the board has three committees: Audit Committee, Nomination
and Remuneration Committee & Stakeholders Relationship Committee.
POLICIES OFTHE BOARD:
WHISTLE BLOWER POLICY:
As per Section 177 (9) of the Act read with relevant Rule 7 of the
Companies (Meetings of Board and its Powers) Rules, 2014 and Clause 49
of the Listing Agreement, the Company has established a vigil mechanism
overseen by the Audit Committee. The Policy ensures that strict
confidentiality is maintained whilst dealing with concerns and also
that no discrimination will be meted out to any person for a genuinely
raised concern. This has been uploaded in the Company's website. No
complaint under this facility was received in Financial Year 2014-15.
REMUNERATION POLICY:
The Remuneration Policy of the Company for the managerial personnel is
based on the performance potential and performance of the
individual/personnel.
Criteria for payment of Remuneration to Non-Executive Directors
(Pursuant to Clause 49 of the Listing Agreement)
The Non-Executive Directors will be paid sitting fees for attending the
Board and Committee Meetings as per the stipulations in the Act, and
the Articles of Association of the company and as recommended by the
Nomination and Remuneration Committee. Different scales of sitting fee
may be fixed for each category of the directors and type of meeting.
However, the fees payable to the Independent Directors and Woman
Directors shall not be lower than the fee payable to other categories
of directors.
[n addition to this, the travel and other expenses incurred for
attending the meetings are to be met by the Company. Subj ect to the
provisions of the Act and the Articles of Association, the Company in
General Meeting may by special resolution sanction and pay to the
Directors remuneration not exceeding 1 % of the net profits of the
Company computed in accordance with the relevant provisions of the Act.
The company shall have no pecuniary relationship or transactions with
any Non-Executive Directors.
RISK MANAGEMENT POLICY:
The Company has Business Risk Management framework to identify,
evaluate business risks and opportunities. This framework seeks to
create transparency, minimize adverse impact on the business objectives
and enhance the Company's competitive advantage.
AUDITORS
M/S. C.S. Hariharan & Co (FRN0.OOIO86S), Chartered Accountants,
Chennai-600 020, has been appointed as the auditors of the Company at
the 22nd Annual General Meeting held on 11.09.2014 & their appointment
has to be ratified for the current financial year. There are no
qualifications in the Independent Auditors report.
SECRETARIAL AUDIT:
Pursuant to Section 204(1) of the Companies Act, 2013 read with the
Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014, the Company has appointed Mr. T.Murugan, a Practicing Company
Secretary (C.PNo.4393) to undertake the Secretarial Audit of the
Company for Financial Year 2014-15.
The Secretarial Audit Report was placed before the Board on 27th May
2015. There are no qualifications in the Secretarial Audit Report.
(Annexure-III)
PUBLIC DEPOSITS
The Company has not accepted deposits during the year and there are no
public deposits fallen due for payment and claimed but not paid as on
31st March, 2015. The total amount of deposit outstanding as at 31st
March, 2015 was Nil.
SIGNIFICANT & MATERIAL ORDERS:
There are no significant and material orders passed by the regulators
or courts or tribunals impacting the going concern status and company's
operations in future.
DETAILSOF ADEQUACY OF INTERNAL FINANCIAL CONTROLS:
The Company has an Internal Control System, commensurate with the size,
scale and complexity of its operations. To maintain its objectivity and
independence, the Internal Audit function reports to the Chairman of
the Audit Committee of the Board. During the year, such controls were
tested and no reportable material weaknesses in the operations were
observed.
PARTICULARS OF LOANS. GUARANTEES OR INVESTMENTS:
The company did not give any Loan or Guarantee or provided any security
or make investment covered under Section 186 of the Companies Act, 2013
during the year.
CORPORATE SOCIAL RESPONSIBILTY:
The requirements of compliance of Corporate Social Responsibility are
not applicable to our company.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTY:
Particulars of contracts or arrangements with Related Parties referred
in Section 188(1) of the Companies Act, 2013 is furnished in accordance
with Rule 8(2) of the Companies (Accounts) Rules, 2014 in Form AOC-2
(Annexure-IV).
FORMAL ANNUAL EVALUATION:
The Board has carried out the annual performance evaluation of its own
performance and the Directors individually after taking into
consideration inputs received from the Directors, covering various
aspects on the Boards' functioning such as adequacy of the composition
of the Board and its Committees, performance of specific duties,
obligations and governance.
The Performance evaluation of the Independent Directors was carried out
by the entire board & the Performance evaluation of the Managing
Director and the Executive Directors was carried out by the Independent
directors at their meeting held on 10.2.2015.
The Directors expressed their satisfaction with the overall evaluation
process.
RATIO OF REMUNERATION TO EACH DIRECTOR:
Disclosure of Ratio of Remuneration to each Director to the median
employees' remuneration
The ratio of the remuneration of each
Director to the median remuneration of
the employee of the company for the
financial year Name of the Ratio
Director
H.Noor Mohamed 5.63:1
(Managing Director)
N. Mohamed Faizal 5.63:1
(Whole Time Director)
N.Mohamed Iqbal 5.63:1
(Whole Time Director)
The percentage increase in remuneration
of each director, Chief Financial
Officer, Chief Executive Officer,
Company Secretary or Manager, if any,
in the financial year: NIL
The percentage increase in the median
remuneration of employees in the
financial yea There is no overall increase in
the salary received by the
employees.
The number of permanent employees on
the rolls of company 229
The explanation on the relationship
between average increase in
remuneration and company performance There is overall increase in the
salary received by the employees.
The individual increments varies
based on their performance.
The increase in the remuneration
of the individual employees is
in line with the market trends,
internal parity.
Comparison of the remuneration of
the key Managerial Personnel against
the performance of the Company Comparison of the remuneration of
the Key Managerial Personnel
against the performance of the
Company in the period under
review: Remuneration of KMP as
a percentage of Revenue is: 0.20
Remuneration of KMP as a
percentage of PBT is 23.57
Variations in the market
capitalization of the company, pric
e earnings ratio as at the closing
date of the current financial year
and previous financial year and
percentage increase over decrease
in the market quotations of the
shares of the company in comparison
to the rate at which the company came
out with the 1 ast public offer in
case of listed companies, and in case
of unlisted companies, the variations
in the net worth of the company as at
the close of the current financial
year and previous financial year Particu
lars 31.03.2015 31.03.2014
Stock 20.75 27.60
Price(in
Rs.)
Market 33.84 45.01
Cap (Rs.
In crores)
EPS O.08 1.63
P/E 259.37 16.93
Average percentile increase already
made in the salaries of employees
other than the managerial personnel
in the last financial year and its
comparison with the percentile
increase in the managerial
remuneration and justification
thereof and point out if there
are any exceptional circumstances
for increase in the managerial
remuneration There is no overall increase in
the salary received by the
employees.
The individual increaments varied
based on their performance.
The is no increase in the
managerial remuneration for the
past 5 years.
Comparison of the each remuneration
of the Key Managerial Personnel
against the performance of the
company %of
Name of
the % of Pro
fit
Remune
ration
direc
tors Reve
nue After
Tax
H.Noor
Mohamed 6,00,000/- 0.11 44.45
(Mana
ging
Dire
ctor)
Gopala
swamy.N
(Comp
any 83,600/- 0.02 6.19
Secre
tary)-
resig
ned
on 12/
08/2014
K..Rafee
Anamed
(Comp
any
secre
tary)- 1,67,933 0.03 12.44
appoi
nted on
12/08/
2014
Rama
chand
ran
Dhana
sekaran 2,40,000 0.04 17.78
(CFO)
The key parameters for any variable
component of remuneration availed
by the directors There is no variable component in
the remuneration paid to the
directors
The ratio of the remuneration of
the highest paid director to that
of the employ ees who are not
directors but receive remuneration
in excess of the highest paid
director during the year NIL
Affirmation that the remuneration
is as per the remuneration policy of
the company Yes
CONSERVATION OF ENERGY. TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Particulars required to be disclosed under the Companies (Disclosures
of Particulars in the Report of the Board of Directors) Rules, 1988 are
annexed hereto and the same forms part of this Report. (Annexure-V)
REPORT ON CORPORATE GOVERNANCE
Your Company continues to strive towards highest standards of Corporate
Governance. The report of Board of Directors on Corporate Governance is
given in separate section titled "Report on Corporate Governance" which
forms part of this Annual Report. The company has established Whistle
Blower Mechanism. (Annexure-VT)
DIRECTORS' RESPONSIBILITY STATEMENT:
In pursuance of section 134 (5) of the Companies Act, 2013, the
Directors hereby confirm that:
(a) In the preparation of the annual accounts, the applicable
accounting standards have been followed and that there is no material
deviation there from.
(b) Reasonable and prudent accounting policies have been applied in the
preparation of the financial statements, that they have been
consistently applied and that reasonable prudent judgment and estimates
have been made in respect of items not concluded by the year end, 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 for the year ended on that date.
(c) Proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of this Act for
safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities.
(d) The financial statements have been prepared on a going concern
basis.
(e) 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 efficiently.
(f) The directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems are
adequate and operating efficiently.
DUES TO SSI
During the year under review, there are outstanding dues amounting to
or exceeding Rs. 1,00,000/- to the following Small Scale Industrial
Units by the Company
Particulars Rs.
Ambay Cards 5,70,588
Ambika Products 14,22,668
Anmol Cards 3,00,594
Bharath Printing Inks 2,37,394
Dishti Industries Ltd 1,17,515
Fuji Film Sericol India Pvt Ltd 2,18,555
G K Cards & Arts 1,90,439
Gripwell Tapes Private Ltd 1,33,740
Hindustan Paints & Printing Inks 4,61,057
Jay Kay Card Mfg Co 16,42,141
Kalakriti Creations 19,77,826
Particulars Rs.
Labh Card Products 3,43,332
M L Oswal Enterprises 2,20,497
N G Paper Industries 6,30,828
Nile Tech 5,76,059
Parasakthi Picture Mart 2,43,067
Pinnacle Cards 20,85,661
Premier Card Manufacturing Co 6,33,474
Raj shree Petrochemicals 2,31,573
Reprographics Systems & Supplies 1,87,104
RiccieArts 2,27,123
R S Industries 2,89,973
Rupa Colour Inks 2,70,059
Sanjay Card & Arts 17,23,600
Screen Aids 2,54,411
Sri Andal Textiles 30,27,208
Sri Annalaxmi Enterprise 3,83,400
Sri Vijayalakshmi Fabrics 1,15,104
Wilson Greetings Pvt Ltd 1,81,015
LISTING FEES:
The Company confirms that it has paid the annual listing fees for the
year 2015-16 to BSE where shares of the company are listed.
ACKNOWLEDGEMENTS:
Your Directors would like to take this opportunity to express their
sincere thanks to its valued customers, distributors, Bankers and all
other business associates for their continued co-operation and
patronage. The Directors would also wish to express their gratitude to
the valued shareholders for their trust and support. The Directors also
wish to express their gratitude to the Employees at all levels, which
has helped the Company to run its affairs smoothly.
For and on behalf of the Board
Place: Chennai H.NOORMOHAMED
Date : 27.05.2015 CHAIRMAN
Mar 31, 2014
The Shareholders
The Directors have great pleasure in presenting 22nd Annual Report of
the Company together with the Audited Annual Accounts for the year
ended 31st March, 2014.
FINANCIAL HIGHLIGHTS FOR THE YEAR ENDED (Rs. in Lakhs)
Description 31st March 2014 31st March 2013
Income from Operations 5238.61 4747.87
Other Income 142.67 221.02
Profit Before Interest &
Depreciation & Tax 841.0 769.96
Interest including finance charges 315.13 254.35
Depreciation 81.21 64.05
Profit Before Extraordinary item 444.66 451.57
Extraordinary item 50.59 50.59
Provision for Taxation 128.85 137.92
Profit After Tax 265.22 263.06
APPROPRIATIONS
Income Tax TDS Interest paid -- 8.18
Transfer to General Reserve 9.85 10.02
Final Dividend (Proposed) 114.16 97.85
Tax on Dividend 19.40 15.87
Profit carried to Balance Sheet 121.81 131.14
PERFORMANCE REVIEW
During the year under review your Company recorded a total revenue of
Rs.5381.28 Lakhs as compared to Rs.4968.89 Lakhs in the previous
financial year, up by 8.30% . The Net Profit After Tax for the same
period stands at Rs.265.22 Lakhs as against Net Profit After Tax of
Rs.263.06 Lakhs in the previous year up by 0.82%. Due to implementation
of the expansion of the overall operations, there was increase in the
Interest and depreciation. Consequently there has been dip in the
profitability.
MARKET SCENARIO
Market scenario is still challenging and competitive. However your
Company has managed to improve the turnover. The establishment of
company owned retail outlets has contributed towards turnover and
improved profitability is expected to grow in future. We are mainly
involved in manufacturing and trading of Wedding Invitation Cards,
Greeting Cards, Visiting Cards, Office Envelopes, Cloth lined Covers,
Student Notebooks, Account Books, Files, etc. and we are also involved
in the trading of the items like Screen-Offset Inks. Our Brand name
"OLYMPIC" is popular and well known to the general public for its
quality, affordability, variety and reliability for many decades.
STATUS OF EXPANSION PROJECT, RETAIL OUTLETS & INITIAL PUBLIC OFFER
Your Company has collected a sum of Rs. 2336.94 Lakhs through Initial
Public Offer of 77,89,800 Equity Shares of Rs.10/- each with a premium
of Rs.20/- each fully paid in March, 2012 for setting up of a new
manufacturing Unit near Chennai and establishment of 4 Own Retail
Outlets at Chennai. The details of the implementation/completion are
furnished below. The shares of your Company were listed at the Bombay
Stock Exchange Ltd (BSE Ltd) on 28.03.2012 and the shares are now
traded at the above Exchange.
Setting up of new manufacturing unit near Chennai: The average time for
implementation of the project as disclosed in the IPO offer document
was January, 2013. But due to delays in getting the required approvals
from various authorities for construction of the new manufacturing unit
the company has completed the implementation of the project and
commenced the commercial production with effect from 31.03.2014.
Capacity utilization is expected to grow in stages through the year. In
the IPO Prospectus it has been stated that the company do not intend to
purchase any second hand machinery. Since some suitable second hand
imported machinery at a comparatively lower price were available in
good working condition with latest model, the company has purchased
imported second hand machinery using Rs.255.21 Lakhs for the above
purpose.
Capital Expenditure for establishing 4 own retail outlets of the
company: Initially the company has planned to identify and establish 4
retail outlets at (1) Ambattur, Chennai, (2) Anna Nagar, Chennai, (3)
Tondiarpet, Chennai and (4) Valasarawakkam, Chennai. Due to non
availability of suitable places at Ambattur and Tondiarpet, the company
has identified suitable places at Peravallur and Velachery in Chennai.
The average time for implementation of the project as disclosed in the
offer document was December, 2012. But due to delays in identifying and
locating suitable places the company could complete the opening of all
the four retail outlets before January, 2014 and sales in the above
four retail outlets are encouraging. Your Company is also in the
process of identifying franchisees at commercially viable places.
DIVIDEND
Board of Directors recommend a Dividend of 7% i.e. seventy paise on
each fully paid-up equity share of Rs.10/- each for the year ended 31st
March, 2014 (Previous year-6%). The dividend will entail an outflow of
Rs.114.16 Lakhs excluding taxes. The Dividend, in the opinion of the
Board represents a prudent balance between the need for the Company to
reward its shareholders as well as the need to plough back the profits
for the Company''s own requirements.
RESERVES
A sum of Rs.9,85,192/- has been transferred to General Reserve out of
the profits for the year under review. The total Reserves and Surplus
as on March 31, 2014 is Rs.22,90,90,945/- comprising of General Reserve
Rs.48,23,032/-; Surplus in Profit & Loss Account Rs.6,01,51,913/- and
Share Premium Account Rs.16,41,16,000/-.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Particulars required to be disclosed under the Companies (Disclosures
of Particulars in the Report of the Board of Directors) Rules1988 are
annexed hereto and the same forms part of this Report.(Annexure - A)
PARTICULARS OF EMPLOYEES
None of the Employees drew salary more than Rs.5,00,000/- per month or
Rs.60,00,000/- in a year as required under the provisions of Section
217(2A) of the Companies, 1956 read with the Companies (Particulars of
Employees) Rules, 1975..
DIRECTORS
Mr.N. Mohamed Faizal, Director is retiring by rotation at this Annual
General Meeting and being eligible offer thimself for re-appointment.
The Board met 7 times on 01.05.2013; 12.08.2013; 24.09.2013;
12.11.2013; 30.11.2013; 27.01.2014; 12.02.2014.
In terms of Section 149 and any other applicable provisions of the
Companies Act 2013, Mr.Abdul Latif Ameer Ali (DIN No.02111528), Mr.
Ramanathan Lakshmanan (DIN No.00269439) and Dr. Shanmugasundaram
Amuthakumar (DIN No.03139309) offer themselves for appointment as
Independent Directors. The Board proposes to appoint them as
Independent Directors for a term upto March, 31,2019 not liable to
retire by rotation.
Mr. H. Noor Mohamed(DIN:00269456) was re-appointed as the Managing
Director of the Company with effect from 26.09.2011 for a period of 3
years and his term is expiring on 25.09.2014. Keeping in view his rich
experience and valuable contribution to the Company, the Board proposes
to re-appoint him as Managing Director with effect from 26.09.2014 for
a period of 3 years on the existing terms and conditions.
AUDITORS
The term of the Statutory Auditors M/S. C.S. Hariharan & Co.(FR
No.001086S), Chartered Accountants, Chennai the said auditors expires
at the conclusion of this Annual General Meeting. Pursuant to the
provisions of Section 139 of the Companies Act, 2013 read with Rule 6
of Companies (Audit and Auditors) Rules, 2014, an audit firm can be
appointed as auditors of a Company for not more than two consecutive
terms of five years each. For the purpose of calculating the period of
10 consecutive years, the period for which the audit firm had held
office as auditors, prior to April 1,2014, is required to be taken into
account. Accordingly, the aforesaid auditors are eligible to be
appointed for a maximum period of 3 years from the conclusion of this
Annual General Meeting until the conclusion of the 25th Annual General
Meeting of the Company. Accordingly, the Company proposes to appoint
M/S. C.S. Hariharan & Co.(FR No.001086S), Chartered Accountants,
Chennai as the auditors of the Company for one term of 3 consecutive
years and to hold office as such from the conclusion of this Meeting
until the conclusion of the 25th Annual General Meeting of the Company,
subject to ratification by the Members of the Company at every Annual
General Meeting, for the purpose of audit of the Company''s accounts.
The Board recommends the appointment of M/S. C.S. Hariharan & Co.(FR
No.001086S), Chartered Accountants, Chennai as the auditors of the
Company.
COST AUDITORS
The Company has appointed M/s. Thanigaimani & Associates (Registration
No. 101899) Cost Auditors in compliance with Companies (Cost Accounting
Records) Rules, 2011 and Companies (Cost Audit Report) Rules, 2011.
The Cost Audit Report shall be filed by the Cost Auditors in due course
for the FY 2013-14.
AUDIT COMMITTEE
The Company has constituted Audit Committee and the following are the
members:
Mr. Abdul Latif Ameer Ali - Chairman, Mr. Ramanathan Lakshmanan Dr. S.
Amuthakumar, Independent Directors and Mr.H. Noor Mohamed, Managing
Director as Members. The Committee met 6 times on 01.05.2013;
12.08.2013; 12.11.2013; 30.11.2013; 27.01.2014; 12.02.2014.
DUES TO SSI
During the year under review, there are outstanding dues amounting to
or exceeding Rs.1,00,000/- to the following Small Scale Industrial
Units by the Company:Grand Total
DIRECTORS'' RESPONSIBILITY STATEMENT
To the best of the knowledge and belief and according to the
information and explanation obtained, your Directors make the following
statements in terms of Section 217(2AA) of the Companies Amendment Act,
2000:
(i) That in the preparation of the annual accounts for the year ended
31st March, 2014, the applicable Accounting Standards have been
followed, along with proper explanation relating to material
departures, if any;
(ii) That such accounting policies as mentioned in the Notes to
Accounts, have been selected and applied consistently and judgments and
estimates have been made 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, 2014 and of the Profit of the Company for that date;
(iii) That proper and sufficient care has been taken for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities; and
(iv) That the annual accounts have been prepared on a going concern
basis.
PUBLIC DEPOSITS
Your Company has not accepted any deposit from the public.
INDUSTRIAL RELATIONS
The relations between the Company and its employees continued to be
cordial and harmonious throughout the year under review.
HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION
Your Company has substantially complied with all applicable
Environmental Laws and Labour Laws.
CORPORATE GOVERNANCE
As per Clause 49 of the Listing Agreement with the Stock Exchanges, a
separate section on Corporate Governance and Management Discussion and
Analysis Report together with a certificate from the Company''s Auditors
confirming compliance is set out in the annexure forming part of this
report.
In compliance with the new Corporate Governance requirements, the
Company has implemented a Code of Conduct for all its Board Members and
Senior Management Personnel, who have affirmed compliance thereto. The
said Code of Conduct has been posted on the Company''s website.
ACKNOWLEDGEMENTS
Your Directors would like to take this opportunity to express their
sincere thanks to its valued customers, distributors, Bankers and all
other business associates for their continued co-operation and
patronage. The Directors would also wish to express their gratitude to
the valued shareholders for their trust and support. The Directors also
wish to express their gratitude to the Employees at all levels, which
has helped the Company to run its affairs smoothly.
ON BEHALF OF THE BOARD
Place: Chennai H. NOOR MOHAMED
Date: 12.08.2014 CHAIRMAN
Mar 31, 2013
To The Shareholders
The Directors have great pleasure in presenting 21 st Annual Report of
the Company together with the Audited Annual Accounts forthe year ended
31 st March, 2013.
FINANCIAL HIGHLIGHTS FOR THE YEAR ENDED (Rs. in Lakhs)
Description 31st March 2013 31st March 2012
Income from Operations 4747.87 4316.76
Other Income 221.02 61.97
Profit Before Interest &
Depreciation 769.96 674.22
Interest including finance
charges 254.35 208.04
Depreciation 64.05 59.05
Profit Before Extraordinary item 451.57 407.13
Extraordinary item 50.59 50.59
Provision for Taxation 137.92 118.50
Profit After Tax 263.06 238.04
APPROPRIATIONS
Income Tax TDS Interest paid 8.18 -
Transfer to General Reserve 10.02 8.91
Final Dividend(Proposed) 97.85 48.93
Tax on Dividend 15.87 7.93
Profit carried to Balance Sheet 131.14 172.27
PERFORMANCE REVIEW
During the year under review your Company recorded a total revenue of Rs.
4968.89 Lakhs as compared to Rs. 4378.73 Lakhs in the previous financial
year, up by 13.48%. The Net Profit After Tax for the same period stands
at Rs. 263.06 Lakhs as against Net Profit After Tax of Rs. 238.04 Lakhs in
the previous year, up by 10.51 %.
MARKET SCENARIO
In the challenging market scenario your Company has managed to maintain
improvement in the turnover as well as profit after tax. The company
owned stores have significantly contributed towards turnover and the
profits. We are mainly involved in manufacturing and trading of
Wedding Invitation Cards, Greeting Cards, Visiting Cards, Office
Envelopes, Clothlined Covers, Student Notebooks, Account Books, Files,
etc. and we are also involved in the trading of the items like
Screen-Offset Inks. Our Brand name "OLYMPIC" is popular and well known
to the general public for its quality, affordability, variety and
reliability for many decades.
STATUS OF EXPANSION PROJECT, RETAIL OUTLETS & INITIAL PUBLIC OFFER
Your Company has successfully completed an Initial Public Offer of
77,89,800 Equity Shares of Rs. 10/- each with a premium of Rs. 20/- each
fully paid and got a total sum of Rs. 2336.94 Lakhs for setting up of a
new manufacturing Unit near Chennai at an approximate cost of Rs. 1982.50
Lakhs and for establishing 4 Own Retail Outlets at Chennai at an
approximate cost of Rs. 316 Lakhs. The shares of your Company were listed
at the Bombay Stock Exchange Ltd.(BSE Ltd) on 28.03.2012 and the shares
are now traded at the above Exchange.
Setting up of new manufacturing unit near Chennai: The average time for
implementation of the project as disclosed in the offer document was
January, 2013. But due to delays in getting the required approvals from
various authorities for construction of the new manufacturing unit it
could not be implemented within the time limit. Presently the
construction of factory building is in progress and expected its
completion before November, 2013. Purchase Orders were placed for
certain machineries and expected their delivery and erection before
December, 2013. Similarly purchase of furniture and fixtures, computers
& Accessories is expected before December, 2013.
Capital Expenditure for establishing 4 own retail outlets of the
company: Initially the company has planned to identify and establish 4
retail outlets at (1) Ambattur, Chennai, (2) Anna Nagar, Chennai, (3)
Tondiarpet, Chennai and (4) Valasarawakkam, Chennai. The company has
opened one Retail outlet at Valasarawakkam, Chennai. Due to non
availability of suitable places at the other three locations mentioned
above, Land for second retail outlet was purchased at Velachery,
Chennai by utilizing part amount earmarked for purpose of Interior
Designing and interior designing work is under process which is
expected to be completed before December, 2013. The company has entered
into a lease agreement for a Third Retail Outlet at Agaram, Chennai and
searching for a suitable place in Chennai for the fourth retail outlet
which is expected to be over before December, 2013. The average time
for implementation of the project as disclosed in the offer document
was December, 2012. But due to delays in identifying and locating
suitable places the company expects completion before December, 2013.
Your Company is also in the process of identifying franchisees at
commercially viable places.
DIVIDEND
Board of Directors recommend a Dividend of 6% i.e. sixty paise on each
fully paid-up equity share of Rs. 10/- for the year ended 31st March,
2013 (Previous year - 3%). The dividend will entail an outflow of Rs.
97.85 Lakhs excluding taxes. The Dividend, in the opinion of the Board
represents a prudent balance between the need for the Company to reward
its shareholders as well as the need to plough back the profits for the
Company''s own requirements.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Particulars required to be disclosed under the Companies (Disclosures
of Particulars in the Report of the Board of Directors) Rulesl 988 are
annexed hereto and the same forms part of this Report.(Annexure - A)
PARTICULARS OF EMPLOYEES
None of the Employees drew salary more than Rs. 5,00,000/- per month or Rs.
60,00,000/- in a year as required under the provisions of Section
217(2A) of the Companies, 1956 read with the Companies (Particulars of
Employees) Rules, 1975.
DIRECTORS
Capt.N.A. Ameer AN and Mr.N. Mohamed Iqbal, Directors are retiring by
rotation at this Annual General Meeting and being eligible offer
themselves for re-appointment. The Board met 5 times on 12.05.2012;
09.08.2012; 21.09.2012; 12.11.2012,11.02.2013.
AUDITORS
M/s.C.S. Hariharan & Co., Chartered Accountants, Chennai-600 014, the
Statutory Auditors of the Company retire at the conclusion of the
ensuing Annual General Meeting of the Company and have confirmed their
eligibility and willingness to accept the office of the auditors, if
re-appointed.
COST AUDITORS
The Company has appointed Cost Auditors in compliance with Companies
(Cost Accounting Records) Rules, 2011 and Companies (Cost Audit Report)
Rules, 2011. The Cost Audit Report shall be filed by the Cost Auditors
in due course for the FY 2012-13.
AUDIT COMMITTEE
The Company has constituted Audit Committee and the following are the
members:
Capt. M.A. Ameer Ali - Chairman, Mr. Lakshmanan Ramanathan (a) Lena
Tamilvanan and Dr. S. Amuthakumar, Independent Directors and Mr. H.
Noor Mohamed, Chairman & Managing Director as Members. The Committee
met 4 times on 12.05.2012; 09.08.2012; 12.11.2012,11.02.2013.
DUES TO SSI
During the year under review, there are no outstanding dues amounting
to or exceeding Rs. 1,00,000/- to any Small Scale Industrial Units by the
Company.
DIRECTORS'' RESPONSIBILITY STATEMENT
To the best of the knowledge and belief and according to the
information and explanation obtained, your Directors make the following
statements in terms of Section 217(2AA) of the Companies Amendment Act,
2000:
(i) That in the preparation of the annual accounts for the year ended
31 st March, 2013, the applicable Accounting Standards have been
followed, along with proper explanation relating to material
departures, if any;
(ii) That such accounting policies as mentioned in the Notes to
Accounts, have been selected and applied consistently and judgments and
estimates have been made that are reasonable and prudent, so as to give
a true and fair view of the state of affairs of the Company as at 31 st
March, 2013 and of the Profit or loss of the Company for the year ended
on that date;
(iii) That proper and sufficient care has been taken for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities; and
(iv)That the annual accounts have been prepared on a going concern
basis.
PUBLIC DEPOSITS
Your Company has not accepted any deposit from the public.
INDUSTRIAL RELATIONS
The relations between the Company and its employees continued to be
cordial and harmonious throughout the year under review.
HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION
Your Company has substantially complied with all applicable
Environmental Laws and Labour Laws.
CORPORATE GOVERNANCE
As per Clause 49 of the Listing Agreement with the Stock Exchange, a
separate section on Corporate Governance and Management Discussion and
Analysis Report together with a certificate from the Company''s Auditors
confirming compliance is set out in the annexure forming part of this
report.
In compliance with the new Corporate Governance requirements, the
Company has implemented a Code of Conduct for all its Board Members and
Senior Management Personnel, who have affirmed compliance thereto. The
said Code of Conduct has been posted on the Company''s website.
ACKNOWLEDGEMENTS
Your Directors would like to take this opportunity to express their
sincere thanks to its valued customers, distributors, Bankers and all
other business associates for their continued co-operation and
patronage. The Directors would also wish to express their gratitude to
the valued shareholders for their trust and support. The Directors also
wish to express their gratitude to the Employees at all levels, which
has helped the Company to run its affairs smoothly.
ON BEHALF OF THE BOARD
Place : Chennai H. NOOR MOHAMED
Date : 12.08.2013 CHAIRMAN
Mar 31, 2012
The Directors present their 20th Annual Report on the business and
operations of your Company and the Audited Statement of Accounts for
the year ended 31st March, 2012.
FINANCIAL RESULTS (Rs. in Lakhs)
Description 2011-12 2010-11
Profit Before Interests. Depreciation 674.22 710.69
Interest including finance charges 208.04 286.70
Depreciation 59.05 64.18
Profit Before Extraordinary item 407.13 359.81
Extraordinary item 50.59 -
Provision for Taxation 118.50 141.16
Profit After Tax 238.04 218.65
APPROPRIATIONS
Transfer to General Reserve 8.91 8.99
Final Dividend (Proposed) 48.93 38.13
Tax on Dividend 7.93 6.33
Profit carried to Balance Sheet 172.27 165.20
PERFORMANCE REVIEW
During the year under review your Company recorded a total revenue of
Rs. 4378.73 Lakhs as compared to Rs. 3919.99 Lakhs in the previous
financial year, up by 11.70%. The Net Profit After Tax for the same
period stands at Rs. 238.04 Lakhs as against Net Profit After Tax of
Rs. 218,65 Lakhs in the previous year up by 8.87%.
STATUS OF EXPANSION PROJECT, RETAIL OUTLETS & INITIAL PUBLIC OFFER
Your Company has successfully completed an Initial Public Offer of
77,89,800 Equity Shares of Rs.10/- each with a premium of Rs.20/- each
fully paid and got a total sum of Rs .2336.94 Lakhs tor setting up of a
new manufacturing Unit near Chennai at an approximate cost of Rs.
1982.50 Lakhs and for establishing 4 Own Retail Outlets at Chennai at
art approximate cost of Rs.316 Lakhs. The shares of your Company were
listed at the Bombay Stock Exchange Ltd.(BSE Ltd) on 28.03.2012 and the
shares are now traded at the above Exchange. Your management has
identified two retail outlets at Chennai and the sales at the new
outlets is expected before the end of the year. Your Company is in the
final stages of getting the required approvals for establishing the new
factory. Your Company is taking necessary steps to implement the
establishment of new factory immediately on receipt of all approvals.
Your Company is also in the process of identifying franchisees at
commercially viable places.
DIVIDEND
Your Directors recommend a 3% Dividend i.e. thirty paise for every
equity share of Rs. 10/- each fully paid-up for the year 2011-12,
(Previous Year-5%), aggregating to Rs.48.93 Lakhs excluding dividend
distribution tax.
MARKET SCENARIO
Your Company is a fully integrated manufacturing and trading Company.
We are mainly involved in manufacturing and trading of Wedding
Invitation Cards, Greeting Cards, Visiting Cards, Office Envelopes,
Clothlined Covers, Student Notebooks, Account Books, Files, etc. and we
are also involved in the trading of the items like Screen- Offset Inks
Stationery Items and Gift articles. Our Brand name "OLYMPIC is popular
and well known to the general public for its quality, affordability,
variety and reliability for many decades.
DIRECTORS
Dr. S. Amuthakumar & Mr, Lakshmanan Ramanathan Alias Lena Tamilvanan,
Directors are retiring by rotation at this Annual General Meeting and
being eligible offer themselves for re-appointment. Mrs. S. Jarina,
Whole-Time Director resigned with effect from 12.05.2012 and Board
places on record the valuable services rendered by her, Mr. N. Mohamed
Iqbal was appointed as Additional Director with effect from 12.05.2012
and is proposed to be appointed as Director, Whole-Time Director of the
company in the ensuing Annual General Meeting. The Company had received
a notice from a member proposing the appointment of Mr. N. Mohamed
Iqbal as Director of the Company. The Board met 11 times on 30.06.2011;
19,08,2011; 26,09,2011; 30.12,2011, 31,12.2011, 08,02,2012, 21,02,2012,
28.02.2012,16.03.2012,20.03.2012,27.03-2012.
AUDIT COMMITTEE
The Company has constituted Audit Committee and the following are the
members:
Capt.M.A Ameer Ali-Chairman, Mr. Lakshmanan Ramanathan Alias Lena
Tamilvanan and Dr. S. Amuthakumar as Members. The Committee met 4 times
on 30.06.2011, 19.08.2011, 30.11.2011 and 20.03.2012.
DUES TO SSI
During the year under review, there are no outstanding dues amounting
to or exceeding Rs.1,00,000/- to any Small Scale Industrial Units by
the Company.
DIRECTORS' RESPONSIBILITY STATEMENT
As required under the Companies Act,1956, your Directors wish to state:
(a) That in the preparation of the annual accounts, the applicable
accounting standards have been followed and that there is no material
deviation therefrom:
(b) Reasonable and prudent accounting policies have been applied in the
preparation of the financial statements, that they have been
consistently applied and that reasonable prudent judgment and estimates
have been made in respect of items not concluded by the year end, so as
to give a true and fair view of the state of affairs of the Company as
at 31st March, 2012 and of the Profit for the year ended on that date.
(c) 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.
(d) The financial statements have been prepared on a going concern
basis.
PUBLIC DEPOSITS
Your Company has not accepted any deposit from the public.
HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION
Your Company has substantially complied with all applicable
Environmental Laws and Labour Laws.
PERSONNEL
A statement concerning employees as required by Section 217(2A) of the
Companies, 1956 is attached to this report.
AUDITORS
M/S.C.S. Hariharan & Co., Chartered Accountants, Chennai-600 014, the
auditors of the Company retire at the ensuing Annual General Meeting
and are eligible for reappointment.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Particulars required to be disclosed under the Companies (Disclosures
of Particulars in the Report of the Board of Directors) Rules, 1988 are
annexed hereto and the same forms part of this Report.(Annexure-I)
REPORT ON CORPORATE GOVERNANCE
Your Company continues to strive towards highest standards of Corporate
Governance, The report of Board of Directors on Corporate Governance is
given in separate section titled "Report on Corporate Governance" which
forms part of this Annual Report.
MANAGEMENT DISCUSSION AND ANALYSIS
A detailed review of operations, performance and future outlook of the
Company is given separately under the head
"Management Discussion and Analysis" and forms part of this report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Particulars required to be disclosed under the Companies (Disclosure of
particulars in the Report of the Board of Directors) Rules, 1988 are
annexed hereto and the same forms part of this Report.
ACKNOWLEDGEMENTS
We are thankful to all Central and Statement Government Departments,
Securities and Exchange Board of India(SEBI), BSE Ltd.(The Bombay Stock
Exchange Limited), M/S.Ashika Capital Limited, Mumbai, M/S. Cameo
Corporate Services Limited, the Bankers to the IPO and the company's
Bankers for the cooperation and assistance extended by them. The Board
places on record their thanks to the shareholders and the public for
the confidence reposed by them in the Company and their appreciation
for the services and untiring efforts of the Doctors and Employees at
all levels, which has helped the Company to run its affairs smoothly.
ON BEHALF OF THE BOARD
H. NOOR MOHAMED
CHAIRMAN
Place: Chennai
Date : 09.08.2012
Mar 31, 2010
To The Members of Olympic Cards Limited
The Directors are pleased to present the 18th Annual Report together
with the Audited Statement of Accounts of the Company for the financial
year ended March 31, 2010.
FINANCIAL RESULTS 2009 - 2010 2008 - 2009
Rs. Rs.
Operating Profit 37,775,526 14,942.540
Less: Depreciation & Amortisation 5,953,853 4,983,597
Profit Before Tax 31,821,673 9,958,943
Provision for Tax 10,801,618 2,056,526
Transfer to Deferred Tax Liability A/C 8,090,202 117,716
Profit After Tax 12,929,853 7,784,701
Add: Previous Year's Profit 9,642,903 5,646,194
22,572,757 13,430,895
Appropriations:
Dividend Final 3,165,322 3,024,931
Dividend Tax(including Surcharge) 523,702 514,087
Transfer to General Reserve 795,542 248,974
18,088,191 9,642,903
OPERATIONS:
The total turnover during the year was Rs.3486.60 Lakhs as against
Rs.2837.57 Lakhs during the previous year recording an increase of
22.87%. The Profit Before Tax was Rs.318.22 Lakhs as against Rs.99.59
Lakhs during the previous year. The steps taken by the Company in the
areas of Operational, Administrative Department and Marketing
Departments have yielded good results. Your Company is continuously
evolving new techniques to improve the overall performance and profit.
FUTURE PLANS:
In order to carry out the expansion work your Company is planning to
tap the Capital Market in the near future for which the Company has
started the initial formalities such as appointing the Book Running
Lead Manager and Registrars to the issue. Your Company has initiated
the process of dematerialization of the existing shares.
DIVIDEND:
Your Directors recommended a final dividend of 5%(Rs. 0.50 per share)
(previous year also 5%) on the Equity Share Capital for the year
2009-2010. A sum of Rs.31,65,322/- towards Dividend and Rs.5,23,702/-
towards Dividend Tax are appropriated from the profit.
GENERAL RESERVE:
A sum of Rs.795,542/- was appropriated towards General Reserve.
FIXED DEPOSITS:
Your Company has not accepted any deposit from the Public.
DIRECTORS:
Captain N.A. Ameer Ali and Mr. Lakshmanan Ramanathan (Alias) Lena
Tamilvanan, Directors of the Company retire by rotation and being
eligible offer themselves for reappointment. During the year Mr. N.M.
Habibullah and Mr. Isari K. Ganesh, Directors resigned with effect from
31-03-2010. The Board of Directors placed on record the valuable
services rendered by them during their tenure as Directors.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of the Companies Act, 1956, the directors
hereby confirm that they have:
(i) Followed the applicable Accounting Standards in the preparation of
the annual accounts;
(ii) Selected such accounting policies and applied them consistently
and made judgments and estimates that were reasonable and prudent so
as to give a true and fair view of the state of affairs of the Company
at the end of the financial year and of the profits of the Company for
the year under review.
(iii) 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 detecting
fraud and irregularities.
(iv) Prepared the accounts for the financial year on a "going concern"
basis.
AUDITORS:
The Auditors M/S.C.S. Hariharan & Co., who retires at the conclusion of
this Annual General Meeting are eligible for reappointment.
AUDIT COMMITTEE:
As required under the Companies Act, 1956 the Company has an Audit
Committee consists of Mr.Lakshmanan Ramanathan (Alias) Lena Tamilvanan,
Captain N.A.Ameer Ali, Non-Executive Independent Directors and Mr. H.
Noor Mohamed, Managing Director. The Committee met four times during
the year 2009-2010.
PARTICULARS OF EMPLOYEES:
The Company has no employee receiving remuneration in excess of the
limits specified under Section 217(2A) of the Companies Act, 1956.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
OUTGO:
As required under Section 217(1 )(e) of the Companies Act, 1956 are set
out in a separate statement attached to the report.
INDUSTRIAL RELATIONS:
The employee relations were cordial. The Directors are pleased to
record their appreciation of the services rendered by the workmen and
the staff at all levels.
ACKNOWLEDGEMENT:
Your Directors wishes to place on record the sincere gratitude for the
support received from the Central/ State Government Departments, Banks,
Shareholders, Customers, Dealers and employees.
for and on behalf of the Board of Directors
Place: Chennai - 600 001. H. NOOR MOHAMED
Date: 25th June, 2010 Managing Director
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