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Sangam (India) Ltd.

BSE: 514234 Sector: Industrials
NSE: SANGAMIND ISIN Code: INE495C01010
BSE LIVE 15:40 | 15 Dec 193.05 10.25
(5.61%)
OPEN

181.05

HIGH

215.00

LOW

181.05

NSE 15:54 | 15 Dec 195.05 10.95
(5.95%)
OPEN

185.60

HIGH

212.80

LOW

185.60

OPEN 181.05
PREVIOUS CLOSE 182.80
VOLUME 105876
52-Week high 324.00
52-Week low 177.00
P/E 29.16
Mkt Cap.(Rs cr) 761
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 181.05
CLOSE 182.80
VOLUME 105876
52-Week high 324.00
52-Week low 177.00
P/E 29.16
Mkt Cap.(Rs cr) 761
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sangam (India) Ltd. (SANGAMIND) - Director Report

Company director report

Director

Dear Shareholders,

The Board of Directors present the 27th Annual Report of the Company together with theAudited Statements of Accounts for the Financial Year ended March 31, 2013.

FINANCIAL RESULTS

(Rs in Crore)

March 31, 2013 March 31, 2012
Net Turnover 1478.84 1417.22
Profit before Tax & Depreciation 151.81 93.86
Depreciation 76.98 67.85
Provision for Doubtful Debts/Advances 0.45 0.30
Profit before Tax 74.83 26.01
Tax Expense - Current Tax 27.16 7.16
- Deferred Tax (3.63) 1.77
Profit after Tax 51.30 17.08
Brought forward Profit 59.23 56.73
Proposed Dividend 4.73 3.94
Tax on Dividend 0.80 0.64
Transfer to General Reserve 30.00 10.00
Carried to Balance Sheet 75.00 59.23

OPERATIONAL RESULTS

Your company’s performance during the financial year can be consideredsatisfactory considering overall economic scenario prevalent at domestic as well as globalspheres. Turnover increased from ` 1417.22 crore to ` 1478.84 crore, Net Profit up to `51.30 crore compared ` 17.08 crore in the previous financial year ended 31 March 2012.Exports have remained almost static at ` 300.75 crore as against ` 308.23 crore in lastyear.

DIVIDEND

In view of the better overall performance, your directors are pleased to recommend foryour approval, dividend of 12% on 3,94,21,559 equity shares for the financial year 2012-13aggregating to ` 4.73 crore, which is subject to approval at the forthcoming AnnualGeneral Meeting. The company would also pay corporate tax on dividend and dividend wouldbe tax free in the hands of the shareholders.

EXPANSION AND MODERNISATION

Execution of Capex plan of ` 180 Crore as reported earlier has been completed and newcapacities of denim fabric and open end spinning have become operational. Further theprocess house Capex of ` 16 crore has been completed resulting in the increase inprocessing capacity.

PUBLIC DEPOSITS

The company has not accepted any deposits from the general public within the meaning ofSection 58 A of the Companies Act, 1956 and rules made thereunder.

DIRECTORS

In accordance with the Companies Act, 1956 and Articles of Association of the Company,Shri Achintya Karati, Director of the Company retire by rotation and being eligible offerhimself for reappointment at the ensuing annual general meeting.

SUBSIDIARY COMPANY

The company has no subsidiary company.

AUDITORS

M/s R. Kabra & Company, Chartered Accountants, Mumbai and M/s BL Chordia &Company, Chartered Accountants, Bhilwara, Statutory Auditors of the Company, hold officeuntil the conclusion of the ensuing Annual General Meeting and are eligible forreappointment.

The Company has received letters from them to the effect that their reappointment, ifmade, would be within the prescribed limits under Section 224(1-B) of the Companies Act,1956 and that they are not disqualified for such reappointment within the meaning ofSection 226 of the said Act.

AUDITORS’ REPORT

As regards Auditors observations, the relevant notes on account are self explanatoryand therefore, do not call for any further comments.

CORPORATE GOVERNANCE

Your Company is committed to maintain the highest standards of Corporate Governance andadheres to the stipulations set out in the Listing Agreement with the Stock Exchanges andhave implemented all the prescribed requirements. Annexed reports on Corporate Governanceand Management Discussion and Analysis as stipulated under Clause 49 of the ListingAgreement with the Stock Exchanges form part of this Annual Report. Certificate from theAuditors of the Company, confirming compliance of conditions of Corporate Governance asstipulated under the aforesaid Clause 49, is annexed to this report.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the requirement under section 217 (2AA) of the Companies Act, 1956 withrespect to Directors Responsibility Statement, it is hereby confirmed that:

1. In the preparation of the annual accounts for the year ended on March 31, 2013, theapplicable accounting standards have been followed along with proper explanation relatingto material departures;

2. The directors have selected such accounting policies and applied them consistentlyand made judgments, and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company as at March 31, 2013 and of the profit ofthe Company for the year ended on that date;

3. The directors have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act, 1956 forsafeguarding the assets of the company and for preventing and detecting fraud and otherirregularities; and

4. The directors have prepared the annual accounts of the company for the year ended onMarch 31, 2013 on a ‘going concern’ basis.

PARTICULARS OF EMPLOYEES

In terms of the provisions of Section 217(2A) of the Companies Act, 1956, read with theCompanies (Particulars of Employees) Rules, 1975 as amended, the names and otherparticulars of the employees are set out in the Annexure I to the Directors’ Report.

PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGEEARNINGS AND OUTGO

The information relating to energy, technology absorption and foreign exchange earningsand outgo required to be disclosed under The Companies (Disclosure of Particulars in theReport of Board of Directors) Rules, 1988 is given in Annexure-II alongwith Form A andForm B.

HUMAN RESOURCES MANAGEMENT AND INDUSTRIAL RELATIONS

The Company continues to focus on training its employees on a continuing basis, both onthe job and through training programs. Relations with the staff members and the workmencontinued to be cordial and satisfactory during the year under consideration.

ACKNOWLEDGEMENT

The Board of Directors place on record their appreciation for the assistance andco-operation received from the Financial Institutions, Banks, Government, LocalAuthorities for their strong support and valuable guidance. The Directors are thankful tothe shareholders for their continued support to the Company. Your Directors also wish toplace on record their deep sense of appreciation for the devoted services of theExecutives, Staff and Workers of the Company for its success.

By Order of the Board of Directors
For Sangam (India) Limited
Place : Bhilwara R. P Soni
Dated : 25th April, 2013 Chairman

Annexure - I

Particulars of employees as per section 217 (2A) of the Companies Act, 1956 read withthe Companies (Particulars of Employees) Rules, 1975 and forming part of theDirectors’ Report for the year ended 31st March, 2013.

EMPLOYED THROUGH THE YEAR AND WERE IN RECEIPT OF REMUNERATION AGGREGATING TO NOT LESSTHAN ` 60,00,000 P.A.

Name Designation & nature of Duties Remuneration Received (Rs In Lacs) Qualification Age (Years) Experience (Years) Date of Commencement Last Employment held
1 Shri S.N. Modani Managing Director 118.54 M.Sc., M.B.A. 49 24 01.03.1991 Manglam Cement Ltd.

Note: Remuneration includes commission, allowance, company’s contributions toprovident funds and value or perquisites etc.

Annexure - II

INFORMATION REQUIRED UNDER SECTION 217(1)(e) READ WITH COMPANIES (DISCLOSURE OFPARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988, AND FORMING PART OF THEDIRECTORS REPORT FOR THE YEAR ENDED 31ST MARCH 2013.

CONSERVATION OF ENERGY

(A) Energy Conservation measures taken

1. Installation of Inverter on Carding for Doffer to reduce the friction loss.

2. Changed the air compressor line for energy efficiency.

3. Smaller size and energy efficient rings and spindles have been used in Ring Framesinstead of bigger size rings and spindles.

4. Provided invertors in the suction fans of Auto Coner Winding Machines.

5. Provided Small Dia Energy Efficient Fan in the Machine wherever low current isrequired.

6. Installation of Servo/Constant Voltage Stabilizer for lighting load after assemblingall wiring at Central location.

7. Installation of Energy Efficient Motor (EFF - 1) in TFO and other useful places likeFans, Humidification etc.

8. Use of Treated water at following areas for reduction of input water :-

Humidification Plant Air Washer, Cooling Towers, Gardening, Agriculture, Floor Washing,Ash quenching and Coal Spray etc.

9. Used High Temperature and high-speed grease (Synthox-HT) to reduce the overhaulingconsumption and reduce the bearing consumption also.

10. Installed Low dia meter pot type TFO instead of higher dia meter pot type TFO tosave the energy upto 35%. With the help of all these conservation activities, we havesaved substantial energy in the last year.

11. Redesigned 33 KV substation for reduction of losses.

12. Installed the 0.2S class CTPT set for proper metering.

13. Installed the Transport Fan in place of condenser in Blow room to save the energy.

14. Installed the standby meter for proper metering with AVVNL.

(B) Additional investment and proposal being implemented for reduction of consumptionof energy

Installation of High Efficiency Motors (IEC/Nema Standard).

Form - A

FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY

Particulars Current Year Previous Year
A POWER & FUEL CONSUMPTION
1 ELECTRICITY
(a) Purchased
Units(Kwh) 121511202 120723354
Total Amount (` In Lacs) 5922 5635
Rate/Unit (Rs) 4.87 4.67
(b) Own Generation:
(i) Through Generators - Units 349450 476658
Unit Per Litre of Fuel(Unit/Litres) 3.12 3.16
Rate/Unit (Rs) 12.62 12.06
(ii) Through Thermal Power - Units 126489305 95762080
Unit Per Kg of Coal (For Cogeneration of steam & power) 0.55 0.56
Cost Per Unit (Rs) 5.89 4.78
2 COAL
(a) Coal (For Thermal Power) (For Cogeneration of steam & power)
Quantity (M.T.) 228829 169692
Total Amount (` in Lacs) 7452 4573
Average Rate/M.T. (Rs) 3256 2695
(b) Coal (For Steam Generation)
Quantity(M.T.) 9036 7832
Total Amount (` in Lacs) 725 578
Average Rate/M.T. (Rs) 8028 7375
3 DIESEL
Quantity (Litres) 111867 150955
Total Amount (` in Lacs) 44 58
Average Rate (Rs) 39.44 38.09
B CONSUMPTION PER UNIT OF PRODUCTION
(a) Electricity Units :
Per kg of yarn 3.34 3.43
Per meter of fabric 0.84 0.77
Per kg of textile flock - 0.69
Per meter of flock fabric - 0.53
Per meter (job processing) 0.21 0.21
(b) Coal :
Per kgs of textile flock - 1.76
Per meter of flock fabric - 0.40
Per meter (job processing) 0.19 0.25
Per kg (job sizing ) 0.42 0.27

FOREIGN EXCHANGE EARNING AND OUTGO :

(Rs in Lacs)

2012-13 2011-12
a) Total Foreign Exchange used 2509 7456
b) Earning in Foreign Exchange 29526 30360