The Directors submit their report for the financial year ended 31st
Particulars 2011-12 2010-11
Revenue from operations 48936 35281
Profit for the year after
meeting all expenses
(before Interest, Depreciation
& Tax) 8175 6775
Interest 1156 1242
Depreciation and other write offs 1585 1505
Provision for Taxation 1781 1276
Net Profit 3653 2752
Balance brought forward 942 552
Balance available for appropriation 4595 3304
Short provision for Income Tax earlier - 53
Provision for dividend 665 266
Provision for dividend tax 108 43
Transfer to General Reserve 1000 2000
Balance carried forward to
Balance sheet 2822 942
Your Company posted good financial results during the year under
review. The production and sales of Instant Coffee were 12,392 M.Ts.
and 12,589 M.Ts. as against 11,607 M.Ts. and 11,277 M.Ts. respectively
in the preceding year. Turnover of the Company has increased from Rs.
35,550 Lakhs to Rs. 49,291 Lakhs, registering growth of 39%. The net
profit of the Company for the current year is Rs. 3,653 Lakhs as against
Rs. 2,752 Lakhs in the preceding year, registering growth of 33%.
Your Directors are pleased to recommend a dividend of Rs. 5/- per equity
share of Rs. 10/- for the year 2011-12 subject to the approval of
Wholly Owned Subsidiary
Your Company''s 100% stepdown subsidiary M/s. Grandsaugreen,
Switzerland, catering to the requirements of the clients in the Europe,
has performed well during the year.
Your Company has since completed implementation of the instant coffee
project through its 100% stepdown subsidiary, M/s. Ngon Coffee Company
Limited, Vietnam. Presently, the Company is carrying out trial runs and
the commercial production is expected to commence during the third
quater of the current financial year.
Service to the Community
In furtherance of its commitment to the society, during the year under
review, your Company has donated Rs.18.51 Lakhs to many welfare and
philanthropic activities in the areas of education, sports, culture,
The present Statutory Auditors of the Company, M/s. M. Anandam & Co.,
Chartered Accountants, Secunderabad, retire at the forthcoming Annual
General Meeting, and being eligible, offer themselves for
The Board of Directors has appointed M/s. Ramesh & Co., Chartered
Accountants, Hyderabad, as the Internal Auditors of your company. The
Internal Auditors are submitting their reports on quarterly basis.
As per the Company''s Articles of Association, Mr. I. J. Rao and Mr.
Vipin K. Singal, Directors of your company, retire by rotation and,
being eligible, offer themselves for re-appointment.
Your Company has not accepted any fixed deposits and as such no
principal or interest was outstanding as on the date of the Balance
Directors'' Responsibility Statement
In terms of Section 217 (2AA) of the Companies Act, 1956, your
Directors confirm the following with regard to the Annual Accounts,
Accounting Policies, Maintenance of accounting records, etc. -
i. That in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures, if any;
ii. That the 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 2011-12 and
of the profit or loss of the company for that period;
iii. That the 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. 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 in Annexure - I
attached to this report.
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
A statement of the particulars of the conservation of energy,
technology absorption and foreign exchange earnings and outgoings as
required under the Companies (Disclosure of particulars in the Report
of Board of Directors) Rules, 1988 is furnished in Annexure - II
attached to this report.
Your Company recycles solid waste generated during the production of
coffee as biomass fuel for energy input to the boilers, thus conserving
scarce fossil fuel, and in turn reducing pollution to the environment.
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.
The Company has been making every endeavor to bring more transparency
in the conduct of its business. As per the requirements of the Listing
Agreement with the Stock Exchanges, a compliance report on Corporate
Governance for the year 2011-12 and a Certificate from the Auditors of
the Company are furnished, which form part of this Annual Report.
Your Company considers its Human Resources as the key to achieve its
objectives. Keeping this in view, your Company takes utmost care to
attract and retain quality employees. The employees are sufficiently
empowered and such workenvironment propels them to achieve higher
levels of performance. The unflinching commitment of the employees is
the driving force behind the Company''s vision. Your Company appreciates
the spirit of its dedicated employees.
Your Directors take this opportunity to express their sincere
appreciation to the shareholders, customers, bankers, suppliers and
other business associates for the excellent support and co-operation
extended by them.
Your Directors gratefully acknowledge the ongoing co-operation and
support provided by the Central and State Governments, Stock Exchanges,
SEBI, RBI and other Regulatory Bodies.
On behalf of the Board
Place : Hyderabad Challa Rajendra Prasad
Date : 11th August, 2012 Chairman and Managing Director