CCL Products India

The directors submit their report for the financial year ended
 31.03.2008:
 
                                                       (Rs.in Lakhs)
                                           2007-08          2006-07 
 
 Gross Income                             24555.43         21679.21
 
 Gross Profit (before Interest, 
 Depreciation & Tax)                       5583.18          5303.61
 
 Less:
 
 Interest                                   809.66           607.51
 
 Depreciation and other write-offs         1195.70           667.02
 
 Provision for Taxation                      58.67           271.59
 
 Net Profit                                3519.15          3757.49
 
 Balance available for appropriation       4918.51          4662.62
 
 Provision for dividend                     665.14           665.14
 
 Provision for dividend tax                 113.04           113.04
 
 Transfer to General Reserve               2300.00          2485.00
 
 Transfer to Exchange Fluctuation Reserve   500.00                -
 
 Net Profit c/f to Balance sheet           1340.41          1399.44
 
 Company Performance
 
 During the year under review the production and sales of Instant Coffee
 were 9,863 M.T and 9,535 M.T. respectively as against 8,868 M.T. and
 8,580 M.T. respectively in the previous year.  Turnover of the Company
 has grown to Rs. 24,555 lakhs from Rs. 21,679 lakhs registering
 moderate growth. The net profit of the Company is Rs. 3,523 lakhs as
 against to Rs.3,757 lakhs during the previous year mainly due to
 additional depreciation and interest costs.
 
 Dividend
 
 Your directors are pleased to recommend a dividend of Rs. 5/- per
 equity share of Rs. 10/- each for the year subject to the approval of
 shareholders.
 
 Expansion
 
 Your Company has recently completed Freeze Dried and Spray Dried
 capacities which will be available for full production from the current
 year onwards. Company is also in the process of wrapping up the
 expansion of 5000 tonnes of Freeze Concentrate Coffee during the
 current year, which will provide Company with more opportunities to
 venture into European and Far East markets, where the demand for such
 coffee is more. Your Company is also undertaking a few line balancing
 measures whereby total equipment capacity is properly correlated and
 full scale production is obtained.
 
 Wholly Owned Subsidiary
 
 Your Company has promoted a wholly owned subsidiary company by the name
 Jayanti Pte. Ltd. in Singapore with the primary objective of making
 investments into coffee related businesses. Since this Company is yet
 to commenced its financial operations, accounts for the said Company
 are not forming part of this Annual Report.
 
 Service to the Community
 
 To propagate its philosophy of responding to social welfare causes and
 philanthropic activities in the areas of education, sports, cultural
 and natural calamities, your company has donated Rs.22.48 Lakhs for the
 above said causes during the year under review.
 
 Statutory Auditors
 
 The present Statutory Auditors, M/s. M. Anandam &Co., Chartered
 Accountants, Secunderabad, the auditors of the Company retire at the
 forthcoming Annual General Meeting and being eligible, offer themselves
 for reappointment.
 
 Internal Auditors
 
 Your Board of Directors appointed M/s.Ramesh & Co., Chartered
 Accountants, Hyderabad as Internal Auditors. The Internal Auditors are
 submitting their reports on quarterly basis.
 
 Directors
 
 In accordance with the provisions of the Companys Articles of
 Association, Mr. I J Rao, Mr. B N Jayasimha and Mr. Vipin K Singal,
 Directors of your company, retire by rotation and being eligible,
 offers themselves for re-appointment.
 
 Fixed Deposits
 
 Your company has not accepted any fixed deposits and as such no amount
 of principal or interest was outstanding as on the date of Balance
 Sheet.
 
 Fire Accident
 
 Members are aware that there was a fire accident in the Freeze Dried
 Coffee Plant during the second quarter of the financial year. After the
 fire broke out, the company team worked hard to bring back the FD-1
 plant to production levels within one month. FD-2 plant capacity was
 brought back to normal production levels within four months.
 
 On refurbishment, the FD has achieved full capacity utilization levels
 right within a months time. The claims in respect of material damage
 and consequential loss of profits were settled by insurance company.
 Your Directors place on record their appreciation and thanks for all
 the efforts put in by the employees, Insurance Surveyors and Insurance
 Company in enabling a faster come back to your Company.
 
 Directors Responsibility Statement
 
 In terms of Section 217 (2AA) of the Companies Act, 1956, your
 directors confirm the following with regard to Annual Accounts,
 Accounting Policies, maintenance of accounting records etc:
 
 (i) That in the preparation of the annual accounts, the applicable
 accounting standards had been followed along with proper explanation
 relating to material departures;
 
 (ii) That the directors had 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 2007-08 and
 of the profit or loss of the company for that period;
 
 (iii) That the directors had 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
 irregularities;
 
 (iv) The annual accounts have been prepared on a going concern basis.
 
 Management Discussion & Analysis
 
 Pursuant to the provisions of Clause 49 of the Listing Agreement, a
 report on Management Discussion & Analysis is set out as an Annexure -1
 to this report.
 
 Conservation of Energy, Technology Absorption and Foreign Exchange
 Earnings and Outgo
 
 A statement of particulars of the conservation of energy, technology
 absorption and foreign exchange earnings and outgoings is given as
 required under the Companies (Disclosure of Particulars in the Report
 of Board of Directors) Rules, 1988, is enclosed as Annexure - II to
 this report.
 
 The company recycles the solid waste generated during the production of
 coffee to be used as biomass fuel for energy input to the boilers, thus
 conserving the scarce fossil fuel and in turn reducing pollution.
 
 Particulars of Employees
 
 Information as per Section 217(2A) of the Companies Act, 1956 read with
 the Companies (Particulars of Employees) Rules, 1975, forms part of
 this Report and is given as Annexure - III.
 
 Corporate Governance
 
 The Company has been making every endeavor to bring more transparency
 in the conduct of business. As per the requirements of Listing
 Agreement with the Stock Exchanges, a compliance report on Corporate
 Governance for the year 2007-2008 and a Certificate from the Auditors
 of the Company are furnished as a part of this Annual Report.
 
 Human Resources
 
 Your Company considers its Human Resources as instrumental in achieving
 its objects which can not be done without their endeavors at every
 level. Keeping in view this, the Company gives utmost care to attract
 and retain quality persons. The enabling and empowering work-
 environment propels them to higher performance. Their unflinching
 commitment is the driving force behind the Companys vision.  Your
 Company appreciates the spirit of its dedicated team of employees.
 
 Acknowledgments
 
 The Directors of your Company express their gratitude to the bankers,
 government agencies, suppliers, clients, collaborators and the
 shareholders of the Company for their continuous support.
 
 Further, your Directors are glad to place on record their appreciation
 for the commitment and contribution of the employees at all levels of
 the company who put in hard work and are dedicated to the growth,
 development and prosperity of the company.
 
                                             On behalf of the Board
 
                                                      Sd/-
 
 Hyderabad                                   Challa Rajendra Prasad
 28-08-2008                            Chairman & Managing Director