The Directors have pleasure in presenting the 22nd Annual Report
together with audited accounts of the Company for the year ended 31st
FINANCIAL RESULTS (Rs in Lakhs)
Profit before Depreciation 326.47 12,108.40
Less: Depreciation 3,722.63 3,720.03
Less : Taxes -1,758.55 2,838.91
Less : Extra Ordinary Item (Net of Tax Expenses) - 1,669.06
Profit after Tax -1,637.61 3,880.40
Surplus brought forward from last year 1,026.36 513.37
Amount available for appropriation -611.25 4,393.77
Provision for Equity Dividend - 315.08
Provision for Tax on Dividend - 52.33
Transfer to General Reserve - 3,000.00
Surplus carried over to Balance Sheet - 1,026.36
Total - 4,393.77
Your Directors have not recommended any dividend for the financial year
2011-2012 considering the Losses suffered by the Company.
REVIEW OF OPERATIONS
During the year under review, the Spinning Mills produced 14696.59
tonnes (22477.00 tonnes) inclusive of purchased quantity 56.68 tonnes
(242.23 tonnes) of Yarn and sold 16136.67 tonnes (21015.25 tonnes) of
Yarn. The sales include 8603.05 tonnes (7646.09 tonnes) by way of
Export. The total sales of this division amounted to Rs 34489.74 Lakhs
( Rs 44329.66 Lakhs) of which export sales amounted to Rs 18382.30
Lakhs ( Rs 17989.34 Lakhs) constituting 53.30% (40.58%) of the total
Volatility in the price of raw material, acute power shortage, glut in
the domestic and international markets, closure of dyeing units in
textile clusters - particularly Tirupur in Tamilnadu due to
environmental issues, have had adverse impact on the performance of the
The Weaving Division specializes in manufacturing wide-width cotton
fabric. During the year under review, 66.93 Lakh metres (86.33 Lakh
Metres) of Fabric were produced and 70.21 Lakh Metres (76.13 Lakh
metres) of Fabric were sold.
Wind Mill Division
The company has 4 windmills of 1250 KW each totaling 5MW in Radhapuram
Taluk, Tirunelveli District, Tamilnadu, 25 Nos windmills, each of 800
KW capacity totaling 20 MW capacity in Dharapuram Taluk, Tirupur
District and Palani Taluk, Dindigul District, Tamilnadu and 3 Windmills
of 1650 KW each in Kongalnagaram, Udumalpet Taluk, Tirupur District,
Tamilnadu. The total installed capacity of Windmills is 29.95 MW and
the whole of the power generated is captively consumed by the Spinning
The windmills produced 528.55 Lakh units of wind energy as against
563.67 lakh units produced in the last year.
Processing and Technical Textiles Division
During the year under review,16.03 Lakh Metres (18.84 Lakh Metres) of
Coated Fabric were produced and 16.52 Lakh metres (18.82 Lakh Metres)
of Coated Fabric were sold. During the year under review 2.53 Lakh
metres of Canvas were produced and 2.50 Lakh metres of Canvas were
sold. The end products/applications of these fabrics include Home
Textiles, upholstery, apparel fabric, performance and industrial
During the year under review, 3.35 Lakh Metres (2.12 Lakh Metres) of
Breathable water proof Fabric were produced and 3.46 Lakh metres (1.75
Lakh metres) were sold under the Brand name Quick dry.
Prospects for the Current Year
The full year operation of garment division is expected to add
favourable revenue. Power availability as well as market conditions are
expected to improve. Steps have been taken to increase export sales.
The working results are expected to be satisfactory.
During the year under review, the Company has not accepted any deposits
from the Public.
Sri K N V Ramani and Sri K Sadhasivam, Directors will retire by
rotation at the ensuing annual general meeting and they are eligible
The Audit Committee comprises of
1. Sri C S K Prabhu - Chairman (Non- Executive Independent Director)
2. Sri K N V Ramani - Member (Non- Executive Independent Director) and
3. Sri S Palaniswami - Member (Non- Executive Independent Director)
PARTICULARS OF EMPLOYEES
The information required under section 217(2A) of the Companies Act,
1956, read with Companies (Particulars of Employees) Rules, 1975 and
forming part of the Director''s report is not furnished as none of the
employees were drawing remuneration in excess of limits specified
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The particulars required to be included in terms of Section 217(1) (e)
of the Companies Act, 1956 with regard to conservation of energy,
technology absorption, foreign exchange earnings and outgo are given in
Annexure - I.
DIRECTORS'' RESPONSIBILITY STATEMENT
As stipulated in Section 217 (2AA) of the Companies Act, 1956 your
Directors confirm that:
(i) Your Directors have followed the applicable accounting standards in
the preparation of annual accounts;
(ii) Your Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the company at the end of the financial year 2011-2012 and of the
loss of the company for the year under review.
(iii) Your Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the company and for preventing and detecting fraud and other
iv) Your Directors have prepared the annual accounts on a going concern
A separate section on Corporate Governance, Management Discussion and
Analysis and a certificate from the Auditors of the Company regarding
compliance of conditions of Corporate Governance as stipulated under
clause 49 of the Listing Agreement form part of this Annual Report.
The present Auditors of the Company M/s P.N.Raghavendra Rao & Co,
Chartered Accountants, Coimbatore, are retiring at the ensuing Annual
General Meeting and are eligible for re-appointment.
Sri M Nagarajan, Cost Accountant, Coimbatore has been appointed as Cost
Auditor to conduct Cost Audit of the Company for the financial year
2012 onwards, subject to approval of Central Government.
The relationship with employees continued to remain cordial throughout
the year under review.
Your Directors acknowledge with gratitude the timely assistance and
help extended by the Bankers for having provided the required bank
facilities. Your Directors wish to place on record their appreciation
of the contributions made by the employees at all levels for the
excellent performance of your company.
BY ORDER OF THE BOARD
Coimbatore S V ARUMUGAM
30th May, 2012 Chairman & Managing Director