To the Members
Your directors are pleased to present their Annual Report together with the auditedaccounts of the Company for the financial year ended 31st March 2014.
|Particulars ||2013-14 ||2012-13 |
|Income from Operations ||911.05 ||141.62 |
|Other Income ||62.33 ||0.49 |
|Total Income ||973.38 ||142.11 |
|Profit before Tax ||129.62 ||28.80 |
|Provision for Current Tax ||47.00 ||9.00 |
|Prior year Tax ||4.05 ||0.00 |
|Provision for Deferred Tax ||(2.46) ||0.00 |
|Profit after Tax ||81.03 ||19.80 |
|Add: Opening balance in Profit and Loss account ||76.39 ||64.61 |
|Less: Prior year Expenses ||1.15 ||0.00 |
|Balance available for appropriations ||156.27 ||84.41 |
|Proposed Dividend ||10.00 ||6.00 |
|Dividend Tax ||1.70 ||1.02 |
|Transfer to General Reserve ||1.00 ||1.00 |
|Profit carried to Balance Sheet ||143.57 ||76.39 |
|Total appropriations ||12.70 ||8.02 |
|Profit carried to Balance Sheet ||143.57 ||76.39 |
Your Directors are glad to recommend for your approval a dividend of 10% (Rs. 1 pershare) [Previous year Rs. 0.60 per share] for the year ended 31st March 2014 involvingan outgo of
Rs. 10.00 lakhs. Additionally the dividend distribution tax will involve an outlay ofRs. 1.70 lakhs.
During the year the Company reported a Profit after Tax (PAT) of Rs. 82.43 lakhs asagainst
Rs. 19.80 lakhs for the previous year. During the year under review the sales andother income were at Rs. 973.38 lakhs as against Rs. 141.62 lakhs for the previous year.
Your Company has successfully completed its first year of operations with manufacturingof garments which has huge potential on export target of textiles set by the Government ofIndia. The Management is confident by bagging new orders from Direct buyers which willcontribute higher margin on our exports by improving capacity utilization of units duringthe financial year 2014-15.
As the members are aware the Company's shares are compulsorily tradable in electronicform. As on 31st March 2014 84.55% of the Company's total paid-up Capital representing845490 Shares is in dematerialised form. In view of the numerous advantages offered bythe Depository system members holding shares in physical mode are advised to avail of thefacility of dematerialization from either of the Depositories.
The Company has not accepted any deposit from the public within the meaning of Section58A of the Companies Act 1956 for the year ended 31st March 2014.
In accordance with the general circular issued by the Ministry of Corporate AffairsGovernment of India the Balance Sheet Profit and Loss and other documents of thesubsidiary companies Sri Mahasakthi Mills Limited and Sri Arumuga Cottspin PrivateLimited are not being attached with the Balance Sheet of the Company. The summary of thekey financials of the Company's Subsidiaries is included in this Annual Report.
The annual accounts of the subsidiary companies and the related detailed informationshall be made available to shareholders seeking such information at any point of time. Theannual accounts of the subsidiary companies shall be kept for inspection by anyshareholders at Registered Office of the holding company.
Disclosure of Particulars
As required under Section 217(1)(e) of the Companies Act 1956 read with Companies(Disclosure of Particulars in the Report of the Board of Directors) Rules 1988:
a. The Company has no activity involving conservation of energy or technologyabsorption;
b. The details of Foreign Exchange Earnings and Foreign Exchange Outgo are annexed inAnnexure - I of the Directors' Report.
The Company has no employee drawing remuneration more than the limits prescribed underSection 217(2A) of the Companies Act 1956.
Corporate Governance Report
As required under Clause 49 of the Listing Agreement a report on Corporate Governance(including Management Discussion and Analysis Report) and a certificate from the Auditorsof the Company regarding compliance of the conditions of corporate governance asstipulated under the Listing Agreement forms part of the Annual Report.
Consolidated Financial Statements
The Directors also present the audited consolidated financial statements incorporatingthe audited financial statements of the subsidiaries prepared in accordance with theAccounting Standards and Listing Agreement as prescribed by SEBI.
Directors' Responsibility Statement
The Board of Directors of the Company confirm: i. that in the preparation of theannual accounts the applicable accounting standards have been followed and there has beenno material departure;
ii. that the selected accounting policies were applied consistently and the Directorsmade judgements 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 31st March 2014 and of the profitof the Company for the year ended on that date;
iii. that proper and sufficient care has been taken 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;
iv. that the annual accounts have been prepared on a going concern basis.
Sri K Dhanakumar Director retires from the Board by rotation and is eligible forre-appointment and Sri Vaibhav Duvvur and Sri S Sanjay Independent Directors appointed asrequired under Companies Act2013 for a period of five years commencing from 29thSeptember 2014.
The profile of the director as required under Clause 49(IV)(G) of the ListingAgreement entered into with stock exchanges are given in the Annexure to the Notice of theAnnual General Meeting.
The Audit Committee consists of three Non-Executive Directors out of which two areIndependent Directors. The present members of the Committee are Sri S Sanjai Mr KDhanakumar and Sri Vaibhav Duvvur. Sri S Sanjai is the Chairman of Audit Committee. Therole terms of reference the authority and power of Chairman are in conformity with therequirements of the Companies Act 1956.
The Auditors M/s S Lakshminarayanan Associates hold office until the conclusion ofthe ensuing Annual General Meeting and are recommended for re-appointment. Certificatefrom the auditors has been received to the effect that their re-appointment if madewould be within the limits prescribed under Section 224(1B) of the Companies Act 1956.
Your Directors wish to place on record the valuable assistance and co-operationextended by the members and other stakeholders.
| ||For and on behalf of the Board |
|30th May 2014 ||T Rajkumar |
|Coimbatore ||Chairman & Managing Director |
ANNEXURE 'I' TO THE DIRECTORS' REPORT
Conservation of Energy
Your Company continues to ensure measures for conservation of energy whereverpossible.
Research & Development
The Company does not carry any research and development activity on its own. Howeveras a member of Apparel Export Promotion Council the Company adopts the tested and proventechnology recommended by the Council.
Wherever applicable the Company adopts the technology recommended by Council. Also inorder to gain updated knowledge the technicians of the Company are frequently undergoingvarious developmental programmes conducted by the Council and Trade bodies.
Foreign Exchange Earnings and Outgo a. Foreign Exchange earned during the year- Rs.886.38 Lakhs (FOB Value of Exports) b. Foreign Exchange Outgo - Rs. 9.15 Lakhs
Conservation of Energy
|A. Power and Fuel Consumption ||31.03.2014 ||31.03.2013 |
|1. Electricity || || |
|a) Purchased || || |
|Units ||91559 ||4564 |
|Amount - Rs. ||602017 ||29665 |
|Rate per Unit - Rs. ||6.57 ||6.50 |
|2. Own Generation || || |
|a) Through Diesel Generator || || |
|Amount - Rs. ||225546 ||79952 |
|Units per liter of Diesel Oil ||3.52 ||3.52 |
|Cost per Unit - Rs. ||15.71 ||17.60 |
|2. Other Fuels || ||Not Used |
|B. Consumption per unit: || || |
|a) Through Diesel Generator Production at actual no. || || |
|of garments(Unit) ||403370 ||1198 |
|Electricity (KWH) ||29.35 ||6.02 |