The Directors have pleasure in presenting the 24th Annual Report
together with audited accounts of the Company for the year ended 31st
FINANCIAL RESULTS :
(Rs. in Lakhs)
Profit before Depreciation 8,105.12 7,648.07
Less: Depreciation 3,500.16 3,575.65
Less : Taxes 1,448.15 1,340.61
Less : Extra Ordinary Item
(Net of Tax Expenses) - -
Net Profit 3,156.81 2,731.81
Surplus brought forward from last year 751.92 -611.25
Amount available for appropriation 3,908.73 2,120.56
Provision for Equity Dividend 315.09 315.09
Provision for Tax on Dividend 53.55 53.55
Transfer to General Reserve 2,000.00 1,000.00
Surplus carried over to Balance Sheet 1,540.09 751.92
Total 3,908.73 2,120.56
Your Directors are glad to recommend payment of dividend of Rs. 2/- per
equity share of Rs.10/- each to the equity shareholders (Last year Rs. 2/-
per share of Rs. 10/- each). The dividend is free from income tax in the
hands of shareholders.
REVIEW OF OPERATIONS
Your Company has achieved an increase of 25% in turnover as compared to
the previous year with improved working results
The Spinning Mills produced 20,700.32 tonnes (17,563.29 tonnes) and
purchased 1,378.53 tonnes (226.97 tonnes) of Yarn and sold 21,050.40
tonnes (17,286.64 tonnes) of Yarn. Sales include 10,732.84 tonnes
(9,337.58 tonnes) by export of yarn.
The total sales of this division amounted to Rs. 52,366.13 Lakhs (Rs.
40,210.94 Lakhs) of which export sales amounted to Rs. 25,454.37 Lakhs (Rs.
20,499.79 Lakhs) constituting 48.60% (50.98%) of the total revenue.
The Weaving Division specializes in manufacturing wider width cotton
fabric. During the year under review, 76.23 Lakh Metres (61.27 Lakh
Metres) of Fabric were produced and 71.59 Lakh Metres (69.58 Lakh
Metres) of Fabric were sold.
During the year under review, 1672.42 tonnes of Knitted fabric were
produced and 1529.40 tonnes were sold. The total sales of this division
amounted to Rs. 3640.95 Lakhs of which export sales accounted for Rs.
Processing Division and Technical Textiles Division
During the year under review, 583.32 tonnes (previous year - Nil) of
fabrics were processed and the total processing charges earned by this
division was Rs. 464.13 lakhs, 4.82 Lakhs (8.35 Lakhs) Meters of canvas
were produced and 2.54 Lakhs (6.28 Lakhs) meters of canvas were sold.
It also produced 1.49 Lakhs (0.37 Lakhs) meters of breathable water
proof fabric and 0.05 Lakhs (0.74 Lakhs) meters were sold.
7.46 Lakhs (4.86 Lakhs) pieces of Garments were produced and sold 7.09
Lakhs (5.14 Lakhs) pieces. The total sales in this division amounted to
Rs. 3192.49 Lakhs (Rs.1934.63 lakhs) of which export sales accounted for Rs.
3143.25 Lakhs (Rs. 1894.35 Lakhs).
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
Units and Weaving Unit.
The windmills produced 492.39 Lakh units of wind energy as against
618.25 Lakh units produced in the last year.
The lower production/consumption of power is on account of Non-
availability of grid facilities and non- evacuation.
Prospects for the Current Year
The parity between the cost of inputs and realisation on finished
products is expected to be favourable.
Improved margins are anticipated from value added products. The power
supply position has improved. Overall performance of your company is
expected to be satisfactory.
During the year under review, the Company has not accepted any deposits
from the Public.
Sri V Venkata Reddy ceased to be a Director of the Company by
resignation with effect from 30.5.2013 owing to his pre-occupations and
other busy schedules. The Board of Directors wish to place on record
their appreciation for the valuable services rendered by Sri V Venkata
Reddy during his tenure of office as Director in the growth of the
In compliance of the provisions of the Companies Act, 2013 and the
Listing Agreement entered into with the Stock Exchanges in which the
Companies shares are listed, Independent Directors are required to be
appointed for a term not exceeding 5 years at a time besides the other
requirements. Accordingly the Board of Directors have proposed to
appoint Sri K N V Ramani and Sri C S K Prabhu, Directors, who are
retiring by rotation at the ensuing Annual General Meeting, as
Independent Directors for a Term of 5 consecutive years, i.e. upto
24.8.2019. Further, Dr K R Thillainathan, Sri S Palaniswami and Sri K
Sadhasivam Directors are proposed for appointment as Independent
Directors of the Company for a Term of five consecutive years, i.e.
upto 24.8.2019. Your Directors recommend their appointment.
Details of the proposal for appointment of the above Directors are
mentioned in the Explanatory Statement under Section 102 of the
Companies Act, 2013 annexed to the Notice of the ensuing Annual General
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 furnished as Annexure I
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 read
with Rule 2 of the Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988 with regard to conservation of
energy, technology absorption, foreign exchange earnings and outgo are
given in Annexure -II.
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 2013-2014 and of the
profit of the Company for that period;
(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
In line with requirements of Clause 49 of the Listing Agreement our
Company is committed to the principles of good Corporate Governance and
continue to adhere good corporate governance practices consistently.
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
2013 - 2014 with the approval of Central Government.
The Financial Statements of the Company''s subsidiary Viz., Abirami
Amman Mills Private Limited, have been annexed to this report alongwith
the other required disclosures.
A Statement pursuant to Section 212 (1) (e) of the Companies Act, 1956,
containing the prescribed particulars in respect of the above
subsidiary is enclosed as Annexure - III to this report.
As required by listing agreement the Company has prepared the
consolidated financial statements of the company and its subsidiary
pursuant to Accounting Standard 21.
The relationship with employees continued to remain cordial throughout
the year under review.
CORPORATE SOCIAL RESPONSIBILITIES
The Company envisages to improve education in rural areas in and around
the factories of the Company by providing various facilities in
Government schools as part of its social responsibility.
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
21st May, 2014 Chairman & Managing Director