You are here » Home » Companies » Company Overview » Loyal Textile Mills Ltd

Loyal Textile Mills Ltd.

BSE: 514036 Sector: Industrials
NSE: N.A. ISIN Code: INE970D01010
BSE LIVE 11:21 | 16 Aug 680.00 -6.15
(-0.90%)
OPEN

684.50

HIGH

684.50

LOW

680.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 684.50
PREVIOUS CLOSE 686.15
VOLUME 195
52-Week high 889.95
52-Week low 515.00
P/E 12.28
Mkt Cap.(Rs cr) 328
Buy Price 680.00
Buy Qty 5.00
Sell Price 684.50
Sell Qty 100.00
OPEN 684.50
CLOSE 686.15
VOLUME 195
52-Week high 889.95
52-Week low 515.00
P/E 12.28
Mkt Cap.(Rs cr) 328
Buy Price 680.00
Buy Qty 5.00
Sell Price 684.50
Sell Qty 100.00

Loyal Textile Mills Ltd. (LOYALTEXTILE) - Director Report

Company director report

Your Directors have great pleasure in presenting their 70th Report on thebusiness and operations of the Company together with the audited Financial Statements(Standalone and Consolidated) of accounts for the year ended 31stMarch 2016.

1. SUMMARISED FINANCIAL HIGHLIGHTS

Financial results for the year under review are as follows:

Rs . in crore

except Earning per share data
Particulars Standalone Consolidated
Particulars 2016 2015 2016 2015
GROSS PROFIT 154.66 160.84 157.50 163.29
Less : Interest 54.52 68.84 54.78 69.23
OPERATING PROFIT 100.14 92.00 102.72 94.06
Less : Depreciation 67.21 82.30 67.96 82.93
Profit BEFORE TAX 32.93 9.70 34.76 11.13
Less: Current Tax 8.25 3.45 9.15 4.05
Profit AFTER CURRENT 24.68 6.25 25.61 7.08
TAX
Less: Excess Provision for FBT of earlier years reversed /Earlier Year tax provision (0.23) (0.02) (0.23) (0.02)
Less: Deferred tax (1.07) (8.72) (1.07) (8.72)
Profit AFTER 25.98 14.99 26.91 15.82
DEFERRED TAX
Add : Surplus brought forward from previous year 37.29 33.73 44.03 39.69
Less: Dividend Tax 0.98 0.74 0.98 0.74
Less: Proposed Dividend on Equity Shares (100%) 4.82 3.61 4.82 3.61
Less: Withdrawal on account of Depreciation as per Schedule II of the Companies Act 2013 NIL 8.45 NIL 8.45
Add: Reversal of Deferred Tax Liability on account of Transition NIL 2.87 NIL 2.87
Less: Transfer to General Reserve 2.61 1.50 2.71 1.55
Balance carried to next year 54.86 37.29 62.43 44.03
Earning Per Share
Basic – EPS Per Share 53.93 31.13 55.86 32.86
Diluted –EPS per Share 53.93 31.13 55.86 32.86

2. DIVIDEND

Your Directors recommend a Dividend of Rs.10.00 per equity share of Rs.10/- each (100%)for the financial year ended

31st March 2016 amounting to Rs. 4.82 Crores on which Dividend distributiontax comes to Rs. 0.98 Crores.

The Dividend will be paid to members whose names appear in the Register of Members ason 07th September 2016 and in respect of shares held in dematerializedform it will be paid to members whose names are furnished by National SecuritiesDepository Limited and Central Depository Services (India)

Limited as beneficial owners as on the same date.

3. SHARE CAPITAL

The paid up Equity Share Capital as on March 31 2016 was Rs.4.82 crores. During theyear under review the company has not issued any shares or any convertible instruments.

TRANSFER TO RESERVES

During the year under review the Company has transferred an amount of Rs. 2.61 Croresto the General Reserve out of the amount available for appropriation and an amount ofRs.17.56 Crores is retained in the profit and loss account.

4. MATERIAL CHANGES & COMMITMENT AFFECTING THE FINANCIAL POSITION OF THE COMPANY

There are no material changes affecting the financial position of the Companysubsequent to the end of the financial year of the Company till the date of this report.

5. PERFORMANCE REVIEW MANAGEMENT DISCUSSIONS ANALYSIS REPORT AND OUTLOOK FOR THECURRENT YEAR

The year under review has been similar to the previous year with respect to profitsalthough our turnover has dropped due to steep fall in merchant exports and yarn exports.

The textile industry continues to suffer from sluggish market conditions arising out ofexcess capacity and high tariffs faced by Indian textile exports in the backdrop of moreand more of our competing nations getting duty free or preferential entry.

Mills in Tamilnadu suffer additional disadvantages of higher transport costs highercost of power frequent transmission failures and much higher minimum wages.

Windmill evacuation continues to be poor and the company continues to suffer hugelosses on account of non evacuation of produced power.

Domestic markets remain weaker than international markets.

The total term loans stand at Rs. 253.20 Crores reduced from Rs.308.52 Crores at theend of last fiscal year . Our efforts to deleverage and reduce overall debt is on track.

While the overall turnover dropped from Rs.1417.09 Crores to Rs. 1178.25 Crores. Thegarment export turnover has shown an increase of Rs.23.47 Crores and now stands at Rs.103.62 Crores.

We have enjoyed cordial relationship with all our stake holders.

We have won the following TEXPROCIL awards continue to be the largest grey fabricexporter for the 09th year in the row.

We have also won several 5S awards at different competitions.

Renewable energy

During the year the company produced 52.38 Lakhs units of Solar energy and the entirequantity was consumed 447.77 Lakhs units of Wind energy was evacuated from own wind mills.

Consumption of wind energy was 757.87 Lakhs units including purchased wind energy.

Loyal International sourcing

Loyal International Sourcing Private Limited is wholly owned subsidiary company ofLoyal Textile Mills Limited has completed one full year of operation and has export salesand service Rs.2.47 crores of garments.

The service tax paid on the services rendered though the services were for exports arenot being currently refunded and it has reduced our operating results.

Italian Joint Venture

Italian Joint Venture is performing satisfactorily and has made a profit of 7.90 LakhEuros pre tax and 5.36 Lakh Euros post tax .

Prospects for the FY 16-17

The prospects for 16-17 will be similar to the year under review.

Lower than anticipated cotton production and the need to import cotton has pushed up.

Cotton prices by over 50% in two months. This will be severely impacting the working ofmills until November 2016 when the new cotton will arrive.

Large number of Assam workers who went for annual holidays stays back for the electionsand we were forced to find replacement for them besides train the new workers.

The situation is slowing improving and expected to get regularized by August 2016. Thishas caused lower utilizations and has impacted the Q1-2016 and will impact Q2-2016 working

Investments

This year most of the investments have been to augment garment capacity improve thespecial finishing capabilities and increasing process automation. The investmentscurrently being made will result in increased garmenting from September 2016 when theconstruction of new facilities gets completed and trained workers arrive from the 5training centers in Odhisha Jharkhand Bihar and MP besides Tamilnadu.

6. TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND

All amounts which are due to be transferred to the Investor Education and ProtectionFund are regularly monitored and transferred. During the year the Company has transferreda sum of Rs.4.13 Lakhs being the amount due and payable and remaining unpaid for a periodof 7 years as provided under Section 205C of the Companies Act 1956 read with theInvestor Education and Protection Fund (awareness and protection of investors) Rules 2001.

During the Financial year 2008-09 the company did not declared any dividend hencethere is no amount to be transferred to Investor Education and protection fund

Members who have not encashed the Dividend warrants for the financialyear ended 2009-10and/or any subsequent years are requested to write to the Company with necessary detailsbefore 20.09.2017.

7. EXPORTS

During the year under review the company exported goods to the tune of Rs. 1024.36Crores (Previous year Rs.1220.25 Crores).

8. MODERNISATION

A sum of Rs.48.75 Crores (previous year Rs.57.11 Crores) was spent on modernization/replacement of plant and machinery during the year under review.

9. CREDIT FACILITIES / FINANCE

During the year the company availed term loans to the tune of Rs.35.43 Crores andrepaid loans to the extent of Rs.90.89 Crores to Banks/Financial institutions.

10. FIXED DEPOSITS

During the year the company has not accepted any deposits from the public anddirectors.

11. DONATION

During the year 2015-16 the Company has paid a donation of Rs.157.47 Lakhs.

12. ENERGY CONSERVATION TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The information on conservation of energy technology absorption and foreign exchangeearnings and outgo stipulated under Section 134(3)(m) of the Companies Act 2013 read withRule 8 of The Companies (Accounts) Rules 2014 is annexed herewith as Annexure - A.

13. PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

The information required pursuant to Section 197(12) read with Rule 5(2) and Rule 5 (3)of The Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 inrespect of employees of the Company and Directors is attached as Annexure – B tothis report

Disclosures pertaining to remuneration and other details as required under Section197(12) of the Companies Act 2013 read with Rule 5(1) of the Companies (Appointment andRemuneration of Managerial Personnel) Rules2014 are provided in the Annexure –Bto this report

14. REPORT ON CORPORATE GOVERNANCE

A detailed report on Corporate Governance is annexed to this report as Annexure - C.The Company has complied with the conditions of corporate governance as stipulated inRegulation 24 25 26 and 27 of Securities and Exchange Board of India (Listing obligationand Disclosure Requirement) Regulation 2015. The Managing Director has given acertificate

Compliance with the Code of Conduct which forms part of Annexure – C asrequired Regulation 27 of Securities and Exchange Board of India (Listing obligation andDisclosure Requirement) Regulation 2015.

The Statutory Auditors of the Company have examined the requirements of CorporateGovernance with reference to Regulation 15(2) of SEBI ( Listing Obligation and DisclosureRequirement) Regulation 2015 and have certified the compliance as per the requirementof Listing regulations.

The Certificate inthisregard Annexure-D to this Report.

The Managing Director and Chief Financial officer (CFO) certification as required underRegulation 17(8) of Securities and Exchange Board of India (Listing Obligation andRegulation Requirement) Regulation 2015 is attached as Annexure –E to thisreport.

15. CONSOLIDATED FINANCIAL STATEMENT

The Consolidated Financial Statements of the Company prepared in accordance withrelevant Accounting Standards (AS) viz. AS 21 and AS 27 prescribed under Companies(Accounting Standards) Rules 2006.

16. SUBSIDIARIES AND JOINT VENTURES

Pursuant to Section 129(3) of the Companies Act 2013 read with Rule 5 of the Companies(Accounts) Rules 2014 the statement containing salient features of the financialstatements of the Company’s Subsidiaries and Joint Ventures (in Form AOC-1) isattached to the financial statements.

Loyal International Sourcing Private Limited (100 % Wholly Owned Subsidiary Company)was started in the year 2014.

17. CORPORATE SOCIAL RESPONSIBILITY (CSR)

In terms of section 135 and Schedule VII of the Companies Act 2013 the Board ofDirectors of your Company have constituted a CSR Committee. The Committee comprises ofthree Directors out of which two Directors are Independent Directors and other Director isa Whole Time Director. CSR Committee of the Board has developed a CSR Policy under HealthCare activities and Educational Activities which is enclosed as part of this report Annexure-F.The CSR Policy is available at www.loyaltextiles.com under investor info/ policydocuments/ CSR Policy link.

The company has contributed to a Charitable Trust a sum of Rs. 50 Lakhs for spendingfor CSR activities which is more than the amount required to be spent u/s .135 of theCompaniesof Act 2013. The details of amount spent and category the same will bepublished in the next report.

18 . VIGIL MECHANISM / WHISTLE BLOWER POLICY

In pursuant to the provisions of section 177(9) & (10) of the Companies Act 2013a Vigil Mechanism for Directors and employees to report genuine concerns has beenestablished. The Vigil Mechanism Policy has been uploaded on the website of the Company athttp:// www.loyaltextiles.com under investor info/ policy documents/ Whistle BlowerPolicy link.

19. RELATED PARTY TRANSACTIONS

Related party transactions that were entered during the financial year were on anarm’s length basis and were in the ordinary course of business. There were nomaterially significant related party Promoters Directors Management or their relativeswhich could have had a potential conflict with the interests of the Company. Transactionswith related parties entered by the Company in the normal course of business areperiodically placed before the Audit Committee for its omnibus approval Particulars ofcontracts or arrangements with related parties referred to in section 188(1) of thecompanies Act 2013 in the prescribed form AOC-2 is attached as Annexure – G. AlsoRefer Note No.47 of Financial statement which sets out the transactions withrelated parties.

The Board of Directors of the Company has on the recommendation of the AuditCommittee adopted a policy to regulate transactions between the Company and its RelatedParties in compliance with the applicable provisions of the Companies Act 2013 the Rulesthere under and the Listing Agreement. This Policy was considered and approved by theBoard has been uploaded on the website of the Company at www.loyaltextiles.com underinvestor info/ policy documents Related Party Transaction Policy link.

20. RISK MANAGEMENT POLICY

The board members were informed about risk assessment and minimization procedures afterwhich the board formally adopted steps for framing implementing and monitoring the riskmanagement plan for the company.

The main objective of this policy is to ensure sustainable business growth withstability and to promote a pro-active approach in reporting evaluating and resolvingrisks associated with the business. In order to achieve the key objective the policyestablishes a structured and disciplined approach to risk management in order to guidedecisions on risk related issues.

In today’s challenging and competitive environment strategies for mitigatinginherent risks in accomplishing the growth plans of the company are imperative. The commonrisks inter alia are: regulations competition business risk technology obsolescenceinvestments and retention of talent and expansion of facilities.

Business risk inter-alia further includes financial risk political risk fidelityrisk and legal risk.

As a matter of policy these risks are assessed and steps as appropriate are taken tomitigate the same.

Major risks which the organization faces have been identified and systematicallyaddressed through mitigating actions on a continuing basis. There is an adequate riskmanagement infrastructure in place capable of addressing the risks. with theCompany’s

The Board has developed and implemented a Risk

Management Policy for the company including identification of elements of risk whichin the opinion of the Board may threaten the existence of the Company. The said policy canbe viewed on the Company’s website at the link: http://www.loyaltextiles.com/policy-documents.html

21. REMUNERATION POLICY OF THE COMPANY

The remuneration policy of the company comprising the appointment and remuneration ofthe Directors Key Managerial Personnel and Senior Executives of the Company includingcriteria for determining qualifications positive attributes independence of a Directorand other related matters has been provided in the Corporate Governance Report which isattached as Part III to Para- 2 of Annexure – C to this report.

22. FAMILIARISATION PROGRAMME FOR INDEPENDENT DIRECTORS

In compliance with Regulation 25 of the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 the Board has adopted a policy on familiarisationprogramme for Independent Directors of the Company. The policy will enable the IndependentDirectors to understand their role rights and responsibility in the Company.

The Policy on Familiarisation Programme as approved can be viewed on the Company’swebsite at the link: http://www. loyaltextiles.com/policy-documents.html

23. DIRECTORS KEY MANAGERIAL PERSONNEL & COMMITTEES

At the 68th Annual General Meeting of the company held on 11thSeptember 2014 the company had appointed the existing independent directors Shri K.J.MShetty (DIN 00033296) Shri.S.Venkataramani (DIN 00053043) Shri.R.Poornalingam(DIN. 00955742) Shri. Shridhar Subrahmanyam (DIN. 01780475) and Shri.Mr.M.MadhavanNambiar (DIN. 03487311) as independent directors are not liable to retire by rotationunder the companies Act 2013 for 3 consecutive years for a term up to the conclusion ofthe 71stAnnual General Meeting.

The Key Managerial personnels of Company Secretary Mr.M.Arumugam was appointed in theBoard Meeting held on 12th August 2013 and Chief Financial Officer Mr.R.Mohanwas appointed in the Board Meeting held on 01st August 2014.

All independent directors have given declaration that they meet the criteria ofindependence as laid down under section 149(6) of the Companies Act 2013 and Regulation25 of Securities and Exchange Board of India (Listing Obligation and RegulationRequirement) Regulation 2015.

At a Board Meeting held on 11th February 2015 the board had appointed Smt.Valli M Ramaswami (DIN 00036508) as an Additional director (Woman director) and in thesame Board Meeting she was appointed as a Whole Time Director of the company.

23.1 AUDIT COMMITTEE

The company is having Audit Committee comprising of following Directors:

NAME STATUS CATEGORY
Shri. K.J.M.Shetty Chairman Independent Director
Shri.S.Venkataramani Member Independent Director
Shri.Shridhar Member Whole Time Director
Subrahmanyam

RECOMMENDATION OF AUDIT COMMITTEE

During the year under review all the recommendations made by the Audit Committee wereaccepted by the Board.

23.2 NOMINATION AND REMUNERATION COMMITTEE

The company is having a Nomination and Remuneration Committee comprising of thefollowing directors:

NAME STATUS CATEGORY
Shri. K.J.M.Shetty Chairman Independent Director
Shri.S.Venkataramani Member Independent Director
Shri.R.Poornalingam Member Independent Director

23.3 CSR COMMITTEE

The company is having a Corporate Social Responsibility Committee comprising of thefollowing directors:

NAME STATUS CATEGORY
Shri. K.J.M.Shetty Chairman Independent Director
Shri.Madhavan Nambiar Member Independent Director
Shri.P.Manivannan Member Whole Time Director

23.4 STAKEHOLDERS’ RELATIONSHIP COMMITTEE

The company is having a Stakeholders’ Relationship Committee comprising of thefollowing directors:

NAME STATUS CATEGORY
Shri. K.J.M.Shetty Chairman Independent Director
Shri.S.Venkataramani Member Independent Director
Shri.P.Manivannan Member Whole Time Director

23.5 RISK MANAGEMENT COMMITTEE

As per Regulation 21 of SEBI (Listing Obligation and Disclosure Requirement)Regulation 2015 risk management committee is applicable to Top 100 listed entities determined on the basis of market capitalization. Our Company does not come under TOP 100listed entities. Hence the board dissolved the Risk Management Committee in the BoardMeeting held on 10th February 2016.

24. BOARD EVALUATION

As required under the provisions of Section 134(3)(p) of the Companies Act 2013 andSEBI Listing Regulations the Board has carried out a formal annual evaluation of its ownperformance and that of its committees and individual directors based on the guidelineformulated by the Nomination & Remuneration Committee.

Further the Independent Directors of the Company met once during the year on 28.05.2016to review the performance of non-independent directors performance of the Chairman andperformance of the board as a whole.

Details of performance evaluation of Independent Directors as required under ScheduleIV to the Companies Act 2013 is provided in Report on Corporate Governance.

25. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has adequate system of internal control to safeguard and protect from lossunauthorized use or disposition of its assets. All the transactions are properlyauthorized recorded and reported to the Management. The Company is following all theapplicable Accounting Standards for properly maintaining the books of accounts andreporting financial statements. The internal auditor of the company checks and verifiesthe internal control and monitors them in accordance with policy adopted by the company.

DETAILS ON INTERNAL FINANCIAL CONTROLS RELATED TO FINANCIAL STATEMENTS

The Company has put in place adequate internal financial controls with reference to thefinancial statements some of which are outlined below.

The Company has adopted accounting policies which are in line with the AccountingStandards prescribed in the Companies (Accounting Standards) Rules 2006 that continue toapply under Section 133 and other applicable provisions if any of the Companies Act2013 read with Rule 7 of the Companies (Accounts) Rules 2014 and relevant provisions ofthe Companies Act 1956 to the extent applicable. These are in accordance with generallyaccepted accounting principles in India. Changes in policies if any are approved by theAudit Committee in consultation with the Statutory Auditors.

The policies to ensure uniform accounting treatment are prescribed to the subsidiariesof the Company. The accounts of the subsidiary company is audited and certified by theStatutory Auditors for consolidation.

The Company operates in an ERP system and has many of its accounting records stored inan electronic form and backed up periodically. The ERP system is configured to ensure thatall transactions are integrated seamlessly with the underlying books of account. YourCompany has automated processes to ensure accurate and timely updation of various masterdata in the underlying ERP system.

The Company in preparing its financial statements makes judgments and estimates basedon sound policies and uses external agencies to verify/ validate them as and whenappropriate. The basis of such judgments and estimates are also approved by the StatutoryAuditors and Audit Committee.

The Management periodically reviews the financial performance of the Company againstthe approved plans across various parameters and takes necessary action wherevernecessary. The Books and records of the company are checked by the qualified externalInternal auditors who render their report to the audit committee.

The Company has a code of conduct applicable to all its employees along with a WhistleBlower Policy which requires employees to update accounting information accurately and ina timely manner. Any non-compliance noticed is to be reported and actioned upon in linewith the Whistle Blower Policy.

Your Company gets its Standalone accounts reviewed every quarter by its StatutoryAuditors.

26. DIRECTORS’ RESPONSIBILITY STATEMENT

To the best of our knowledge and belief and according to the information andexplanations obtained by us your Directors make the following statements in terms ofSection 134(3)(c) of the Companies Act 2013:

a) in the preparation of the annual accounts for the year ended March 31 2016 theapplicable accounting standards have been followed along with proper explanation relatingto material departures;

b) the Directors have selected such accounting policies and applied them consistentlyand made judgements and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company at the March 31 2016 end of the profitof the company for the year ended on that date ;

c) the Directors have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities;

d) the Directors have prepared the annual accounts on a going concern basis;

e) the Directors have laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and are operatingeffectively; and

f) the Directors had devised proper system to ensure that systems to ensure compliancewith the provisions of all applicable laws and that such systems are adequate andoperating effectively.

27. LISTING

The Company’s equity shares continue to be listed on the Bombay Stock ExchangeMumbai. The listing fee for the financial year 2015 2016 has been paid to BSE and theAnnual Custodian fee has been paid to the NSDL and CDSL for the financial year 2015-16

28. AUDITORS

28.1 STATUTORY AUDITORS’

M/s. Suri & Co (Firm Regn No:004283S.) Chartered Accountants have been appointedas statutory auditors of the company at the 68th Annual General Meeting held on11.09.2014 for a period of three years subject to ratification by members at everyconsequent Annual General Meeting. Therefore ratification of appointment of StatutoryAuditors is being sought from the members of the Company at the ensuing AGM.

The Auditors’ Report to the shareholders does not contain any qualification

28.2 SECRETARIAL AUDITORS’

Pursuant to the provisions of Section 204 of the Companies Act 2013 and The Companies(Appointment and Remuneration of ManagerialPersonnel)Rules2014theCompanyhasappointed Mr.Krishna Sharan Mishra (FCS No.6447) representing KSM Associates Company SecretariesChennai to undertake the secretarial audit of the company. The Secretarial Audit Reportis annexed herewith as Annexure - H.

The Auditors’ Report to the shareholders does not contain any qualification

28.3 INTERNAL AUDITORS’

M/S SLSM & CO Chartered Accountants performs the duties of internal auditors ofthe company and their report is reviewed by the audit committee from time to time.

28.4 COST AUDITOR

Mr.V.Balasubramanian Cost Accountant was appointed as Cost Auditor for auditing thecost accounts of your Company for the year ended 31st March 2016 by the Boardof Directors.

The Cost Audit Report for the year 2014-15 has been filed under XBRL mode within thedue date of filing.

29. EXTRACT OF ANNUAL RETURN

An extract of the Annual return in form- MGT- 9 as on March 31 2016 is attached as Annexure– I to this report.

30. PARTICULARS OF LOANS GIVEN INVESTMENTS MADE GUARANTEES GIVEN AND SECURITIESPROVIDED

Particulars of loans given investments made guarantees given and securities providedalong with the purpose for which the loan or guarantee or security is proposed to beutilized by the recipient are provided in the standalone financial statement

(Refer note. No. 11)

31. GENERAL

A. Your Directors state that no disclosure or reporting is required in respect of thefollowing items as there were no transactions on these items during the year under review:

1. Issue of equity shares with differential rights as to dividend voting or otherwise.

2. Issue of shares (including sweat equity shares) to employees of the Company underany scheme.

3. Neither the Managing Director nor the Whole- time Directors of the Company receiveany remuneration or commission from its subsidiary.

4. No significant or material orders by the Regulators or Courts or Tribunals whichimpact the going concern status and Company’s operations in future.

B. A copy of the Financial Statements including Consolidated Financial StatementsDirectors Report Auditors Report etc. is available at the Registered office of theCompany for the inspection of the members of the company during the office hours up to thedate of Annual General Meeting.

C. The Company has not furnished the statement of Changes in Equity as the requiredformat has not yet been prescribed.

Your Directors further state as per information furnished by POSH Committee thatduring the year under review there were no cases filed pursuant to the Sexual Harassmentof Women at Workplace (Prevention Prohibition and Redressal) Act 2013.

32. ACKNOWLEDGEMENT

Your Directors wish to acknowledge the co-operation and assistance extended by CentralBank of India Exim Bank State Bank of India Karur Vysya Bank Ltd and Indian Bank. YourDirectors appreciate the continued co-operation extended by staff and workers of thecompany and look forward to the same cordial relationship in the coming years.

For and on behalf of the Board of Directors
P. MANIVANNAN MANIKAM RAMASWAMI
Whole Time Director Managing Director
Place: Chennai
Date: 26th May 2016