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.
(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 |
Your companys 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.
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.
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.
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.
The company has no subsidiary company.
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.
As regards Auditors observations, the relevant notes on account are self explanatoryand therefore, do not call for any further comments.
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.
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, companys 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 |