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Cochin Minerals & Rutile Ltd.

BSE: 513353 Sector: Industrials
NSE: N.A. ISIN Code: INE105D01013
BSE LIVE 13:22 | 08 Dec 102.00 0
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OPEN

100.30

HIGH

103.90

LOW

100.15

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 100.30
PREVIOUS CLOSE 102.00
VOLUME 3157
52-Week high 152.00
52-Week low 62.85
P/E
Mkt Cap.(Rs cr) 79.87
Buy Price 102.00
Buy Qty 95.00
Sell Price 102.60
Sell Qty 27.00
OPEN 100.30
CLOSE 102.00
VOLUME 3157
52-Week high 152.00
52-Week low 62.85
P/E
Mkt Cap.(Rs cr) 79.87
Buy Price 102.00
Buy Qty 95.00
Sell Price 102.60
Sell Qty 27.00

Cochin Minerals & Rutile Ltd. (COCHINMINERALS) - Director Report

Company director report

DIRECTORS

Your Directors are pleased to present the 25th Annual Report of your Company along withaudited statements of accounts for the year ended 31st March 2014.

FINANCIAL HIGHLIGHTS

Rs. in Lakhs
Year ended 31st March 2014 Year ended 31st March 2013
Sales and Other Income 13610.99 20038.37
Profit before Interest & Depreciation 116.75 6944.94
Interest 385.51 189.07
Depreciation 241.27 273.86
Net Profit for the year (510.04) 6482.01
Provision for Tax - 2160.14
Deferred tax asset (liability) (122.14) (12.44)
Profit after tax (387.90) 4334.31
Appropriations
Proposed Dividend 78.30 783.00
Dividend Tax 13.31 133.07
Transfer to General Reserves NIL 866.86
Balance Carried Forward NIL 2551.38

DIVIDEND

Although the company has incurred loss during the year your Directors are pleased torecommend a dividend on the equity shares at Re. 1 per share of Rs. 10/- each for thefinancial year ended 31st March 2014 out of the available reserves.

OPERATIONS

a) Production

The production of Synthetic Rutile during the year under review was 16200 MT ascompared to 18730 MT in the previous year. Ferric Chloride production during the year was16166 MT as compared to 16092 MT in the previous year. Ferrous Chloride productionduring the year was 32521730 MT as against 41446970 MT in the previous year. Theproduction of Iron' Hydroxide (Cemox) during the year was 12987 MT as against 23037 MTin the previous year.

The main reason for decrease in production of Synthetic Rutile is market recession inTitanium industry in the International Market.

b) Sales

Your company sold 15825.030 MT of Synthetic Rutile during the year as compared to lastyear's sales of 14826.450 MT. Ferric Chloride sales amounted to 16095.740 MT during theyear as compared to 16300.955 MT last year. Ferrous Chloride sales this year amounted to32481.940 MT (including export of 312 MT) as against 41456.410 MT (including export sales3072 MT)in the previous year. Iron Hydroxide (Cemox) sales was 9985.58 MT compared to34768.920 MT in the previous year.

c) Foreign Exchange

Your company earned export income of US$ 17506930.00 equivalent to Rs.1059617223.00 compared to US$35345546.40 (FOB) equivalent to Rs. 1922126571.00 inthe previous year. The utilization of Foreign exchange during the year was US$4640371.12UK2008 AED1110.00 HKD 25320.00 and AUD 6600.00 equivalent to Rs.276956169.00compared to US$8985939.23 UKX4267 AED100 equivalent to Rs.497123589.00 in theprevious year. The increase in foreign exchange utilization during the year was due toimport of ilmenite due to short supply of ilmenite in the domestic market. Statement inForm 'C is given in the Annexure-1.

d) Loss

Your company earned a profit of Rs.116.75 lakhs before interest depreciation and taxand suffered a net loss of Rs.387.90 lakhs after tax during the year as compared to profitof Rs.6944.94 lakhs and Rs.4334.31 lakhs respectively in previous year. The salesrealization during the year is Rs.136.11 crores against Rs.200.38 crores due to steep fallin the prices of Synthetic Rutile in the international market. On the other hand due tonon availability of the main raw material viz Ilmenite from domestic sources the cost ofproduction went up as a result of import of Ilmenite at high prices.

DIRECTORS

As per the provisions of the Companies Act 1956 your directors Shri. Mathew MCherian Shri. A J Pai and Smt. Jaya S Kartha retire by rotation at the Annual GeneralMeeting and being eligible have offered themselves for reappointment.

MANAGEMENT DISCUSSION AND ANALYSIS

Management Discussion and Analysis of the Working Results for the year and outlook forthe current year are given as Annexure - III.

CORPORATE GOVERNANCE

Your company has complied with all the conditions of corporate governance regulationsas contained in the revised clause 49 of the listing agreement. The corporate governancereport and the certificate from the auditors regarding the compliances are annexed to thisreport as Annexure II and IV.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the requirements under Section 217 (2AA) of the Companies Act 1956 it isHereby confirmed.

i) That in the preparation of the Annual accounts for the year ended 31st March 2014the applicable accounting standards have been followed.

ii) That the Directors had selected such accounting policies and applied themconsistently 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 as at the endof the financial year and of the profit/loss of the Company for the year under review.

iii) That the Directors had taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Companies Act 1956for safeguarding against fraud and other irregularities.

iv) That the Directors had prepared the accounts for the year ended 31st March 2014 ona going concern basis.

ISO CERTIFICATION

Your Company continues to be ISO 9001:2008 certified by the prestigious agency BureauVeritas Quality International with accreditation from UKAS London ANSI-RAB USA andNABCB India.

N S F Certification

Your company's products Ferric Chloride and Ferrous Chloride have got NSF/ANSIStandard 60 certification for drinking water treatment chemicals from M/s N S FInternational the only organization designated as a Collaborating Center by the WorldHealth Organization (WHO) for both food safety and drinking water safety and treatment.

The afore-said products of your company are the only NSF(National SanitationFoundation) certified in Asia. While in the case of Ferrous Chloride our Company is oneamong the 8 companies in the world who got certified by N S F International and in thecase of Ferric Chloride we are one among the 39 companies certified by them.

AWARDS

Your Directors are pleased to report that your company bagged the Award forimplementing pollution control measures from Government of Kerala for the 7th consecutiveyear - "'Excellence Award for 5 years 2008 to 2012 and certificate of merit forsecuring 1st place among the medium scale industries in the preceding 2 years.

The company has secured Excellence Award for safety for the second year in successioninstituted by the Department of Factories and Boilers Government of Kerala. The companybagged the Kerala State safety Award consecutively for the fifth year for outstandingperformance in industrial safety health and welfare of employees.

AUDITORS

Mr. Saghesh Kumar K A. Chartered Accountant Aluva who was appointed as Auditor of theCompany for the year under review retires at the Annual General Meeting and beingeligible has offered to be reappointed at the Annual General Meeting.

STATUTORY APPROVALS & LICENCES

The Company has renewed all statutory approvals and licences from variousDepartments/Authorities for carrying on its normal business. The licenced and installedcapacity of Synthetic Rutife production now stands at 50000 MT per annum.

INDUSTRIAL RELATIONS

The Labour-Management relations have been cordial and a long term agreement with TradeUnions of the Employees. valid till 2015 is in force.

ENERGY CONSERVATION

The statements in Form A for Energy Conservation and Form B on Technology upgradationare given in the Annexure-1.

PARTICULARS OF EMPLOYEES

No employee in the service of the Company draws annual remuneration of Rs. 2400000 ormore per year or Rs.200000 or more per month for any part of the reporting yearrequiring disclosure as per Section 217 (2A) of the Companies Act 1956.

FIXED DEPOSITS

The Company has not accepted any deposit during the year within the meaning of Section58A of the Companies Act 1956 and the rules made there under.

DEMATERIALISATION

The shares of your Company are compulsorily dematerialised for trading. The ISIN numberof the shares is INE105D01013.

LISTINGS

The shares of your Company are listed with Bombay Stock Exchange Ltd. The listing feeas required has already been paid upto and including the year 2014-2015.

ACKNOWLEDGEMENTS

Your Directors wish to place on record their deep sense of gratitude to the Banks andFinancial Institutions Central and State Government Departments and local authorities fortheir co-operation and support. Your directors are also grateful to the customerssuppliers and business associates for their co-operation. Your directors also like toplace on record their appreciation of the valuable contribution put in by the employees ofthe company at all levels. Finally your directors are deeply grateful to the members fortheir continued confidence and faith in the management of the company.

For and on behalf of the Board

Sd/-

R.K. Garg

Chairman.

Place: Aluva

Date: 05.05.2014.

Annexure -I to the Directors' Report.

Statement containing particulars pursuant to Companies (disclosure of particulars inthe report of Board of Directors) Rules 1988 and forming part of the Directors Report.

FORM A

(See Rule 2)

Form for Disclosure of Particulars with respect to Conservation of Energy.

A. Power and fuel consumption
1. Electricity
(a) Purchased Current Year Previous Year
Unit 3318787 KWH 3819610KWH
Total Amount Rs. 17883196.80 Rs. 18273404.42
Rate/Unit (Rs.4.60/KWH+ (Rs.4.10/KWH+
Rs.300/KVA+ Rs.300/KVA+
0.10/KWH+ 0.10/KWH+
Surcharae@ 0.025 Surcharge@0.025
Ps. Per KWH+ Ps.PerKWH +
Part there of) Fuel surcharge
0.020 Ps./KWH or
Part thereof)
(b) Own generation
Through diesel Generator
Units 86780 KWH 145105.40 KWH
Unit/Ltr. of Diesel 2.99 Unit/Ltr. 3.06 Unit/Ltr
Cost/Unit Rs. 19.35/Unit Rs. 16.47/Unit
Through steam turbine/
Generator Units Nil Nil
Unit/Ltr. of }
Fuel oil/gas J Nil Nil
Cost/Unit
2. Coal (specify quality and where used) (1) Indonesian C - In Kiln as reductant and in Boiler for steam generation
(2) Pet. Coke In Kiln as reductant
(3) Biomass Gasifier for generation of
Biogas as substitute to
furnace oil
(a) Indonesian Coal 7843.80 MT
(b) Pet. Coke 9.54 MT
(c) Biomass 436.115 MT
Total 8289.455 MT
Total cost Rs.36548842.57 Rs.42804183.26
Average Rate Rs.4653.92 Rs.4846.06
3 Furnace Oil
Quantity (k. ltrs ) 1679.428 KL 2167.995 KL
Total amount Rs.68499098.21 Rs.83952531.2
4. Others/internal generation (please give details) Quantity
Total cost Nil Nil
Rate/unit }

B Consumption per unit of production

- Standards (If any) Current Year Previous Year
Particulars of Energy 1 2
Electricity 210.22 Units 211.68 Units
Furnace Oil 103.67 Ltrs. 115.75 Ltrs
Indonesian Coal + 0.512MT 0.481 MT
Pet. Coke + Biomass

B. TECHNOLOGY ABSORPTION

FORMB

(See rule 2)

FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO TECHNOLOGY.

Research and development (R & D)
1 Specific areas in which R&D carried out by the Company (a) Studies are continued for using our Iron Hydroxide Cake (Cemox) in Steel Industry.
(b) Lab studies are in progress with N11ST Trivandrum for producing Nano Titania coated ceramic ultra filtration membrane for industrial waste water treatment.
(c) Studies were carried out for use of Ferrous Chloride and Ferric chloride in water treatment.
(d) Plant level studies formicronising recovered Titanium Dioxide to make pigments
2 Benefits derived as a result of the above R&D Increased the sale of Ferrous Chloride Ferric Chloride & Iron Hydroxide Cake (Cemox).
3 Future plan of action (a) Nano Titanium Dioxide manufacturing Pilot Plant scale production and market development.
(b) Setting up of facility for producing off-grade TiO2
(c) Market Research and Pigment standardization in Paints Ink Paper and Polymer applications for recovered and micronized pigment.
Expenditure on R & D : - Revenue : Rs.71.13 lakhs
Total R&D expenditure as a Percentage of total turnover : 0.53%
Technology absorption adaptation and Innovation:
1 Efforts in brief made towards technology absorption adaption and innovation : Plant scale trials and process standardization work undertaken for using ilmenite from different sources for Synthetic Rutile Production. Application Research for utilization of Recovered Ti02 Pigment in Paints Inks Polymers and Paper
2. Benefits derived as a result of the above : efforts eg. product improvement cost reduction product development import substitution etc. Cost reduction and new applications for recovered Ti02 Pigment Iron Hydroxide Cake and Ferric Chloride.
3. In case of imported technology (imported : during the last 5 years reckoned from the beginning of the financial year) following information may be furnished. N.A.
(a) Technology imported
(b) Year of import
(c) Has technology been fully absorbed
(d) If not fully absorbed areas where this has not taken place reasons therefore and future plans of action. N.A.

FORM-C

Foreign Exchange Earnings and Outgo

Foreign Exchange Earnings (FOB Value of export) US$ 17506930.00
Foreign Exchange outgo on Revenue Account US$ 4653855.28
Net Earnings US$12853074.72

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