The Directors have pleasure in presenting the Fifty Second Annual
Report covering the operations for the year ended 31st March 2013
together with the accounts and Auditors'' Report thereon.
Year Ended Year ended
(Rs. in Lacs) (Rs. in Lacs)
Net Revenue 16595.32 17855.88
Profit before Interest,
Depreciation and Taxation 1361.48 2334.07
Less: Interest 30.38 48.66
Depreciation 422.57 405.73
Profit before Tax 908.53 1879.68
Less: Taxation [including
Deferred Tax 232.83 594.63
Profit after Tax 675.70 1285.05
Add: Balance brought
forward from previous year 264.31 216.65
Profit available for
appropriation 940.01 1501.70
Proposed Dividend 344.25 420.75
Dividend Tax 58.50 66.64
General Reserve 250.00 750.00
Balance Carried to Balance Sheet 287.26 264.31
The revenue for the year was lower by about 7% when compared to
previous year. This was due to significant reduction in the off-take by
the segments of some Original Equipment Manufacturers in the domestic
market which was partly made up the increased presence in the
after-market. The export of company''s products which are alloy powders
and bearings were affected with substaintial reduction due to market
The significant impact on the profitability was conditioned by
increased cost of inputs including power and limited opportunities to
compensate them from the market. Continued efforts to control costs and
further rationalise the production with emphasis on material
utilisation-are expected to progressively relfect better perofmance.
Your Directors are happy to recommend a Dividend of ? 9/- per share,
(Previous Year: ? 11 /- per share) on the Paid-up capital for the year
DIRECTORS'' RESPONSIBILITY STATEMENT:
Statement under Section 217(2AA) of the Companies Act, 1956:
(a) The applicable accounting standards had been followed with no
(b) The Accounting policies that have been selected have been applied
consistently and the judgments and estimates based on them are prudent
and reasonable to give a true and fair view of the state of the affairs
of the company as on 31 -03-2013 and of the profit for the year ended
on that date.
(c) Proper and sufficient care have been taken for 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 irregularities.
(d) The Accounts have been prepared on a going concern basis.
The matters relating to Corporate Governance as per the Listing
Agreement are given in the Annexure forming part of this Report.
CODE OF CONDUCT:
The Company has adopted a code of conduct for the Board of Directors
and senior management of the Company and all of them have affirmed
compliance of the same.
As contemplated under Clause 49 of the Listing Agreement, the
certificate from Mr.A.Krishnamoorthy, the Chief Executive Officer, and
Mr.N.Venkatarman, Chief Financial Officer was placed before the Board
of Directors at their meeting held on 22-05-2013 which was read and
taken on record.
DISCLOSURE OF PARTICULARS:
The information required under Section 217(1 )(e) of the Companies Act,
1956 read with the Companies (Disclosure of Particulars in the Report
of Directors), Rules 1988 is given in the Annexure forming part of this
Mr. S. Narayanan was appointed as Additional Director and also as
Whole-time Director effective 01-11-2012. Mr. N.P. Mani ceased to be a
Whole-time Director effective 01 -11 -2012 and continues to be a
Director on the Board. Dr. R. Mahadevan ceased to be a Director with
effect from 01-11-2012.
Mr.N.Venkataramani and Mr. R.Vijayaraghavan, Directors are retiring at
the ensuing Annual General Meeting and being eligible, offer themselves
M/s.Price Waterhouse, Chennai the retiring Auditors are eligible for
re-appointment. The Audit Committee had recommended to the Board for
In terms of circular issued by the Government of India in respect of
the products of the Company, cost audit is to be carried out. M/s. S.
Mahadevan & Co., Coimbatore, practicing Cost Accountants have been
appointed as Cost Auditors of the Company based on the recommendations
of the Audit Committee.
Your Directors wish to thank the customers, employees, suppliers and
Bankers for their support and co-operation extended during the year.
Our thanks are due to Daido Metal Company for their co-operation. We
wish to particularly thank our share-sholders for the continued support
extended by them.
For and on behalf of the Board
Chennai A. Krishnamoorthy
22nd May 2013 Chairman & Managing Director