Century Enka
BSE: 500280 | NSE: CENTENKA | ISIN: INE485A01015 | Textiles - Manmade
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Directors Report | Year End : Mar '08 |
The Directors present the 42nd Annual Report and Audited Statements of
Accounts of the Company for the year ended 31st March, 2008. The
turnover increased by 21% and profit before depreciation, interest and
taxation increased by 19%. However, increased depreciation charge, high
interest cost and adverse conditions, such as over supply of Polyester
POY, high raw material and energy cost, cheap import of Nylon Tyre Cord
Fabric (NTCF) continued through- out the year have affected the
profitability. Despite these adverse conditions, your Company
maintained its market position and achieved these results.
FINANCIAL RESULTS
Rs. / Crores
This Previous
Year Year
Income from Operations (Gross) 1313.34 1089.85
Profit before Depreciation,
Interest and Taxation 113.25 94.95
Add/(Less) :
Depreciation (59.02) (54.20)
Interest (Net) (30.62) (17.97)
Taxation (Net) (including
deferred and fringe benefits tax) (7.60) (6.06)
Voluntary Retirement Scheme
compensation (2.60) -
Net Profit 13.41 16.72
Add : Balance brought forward
from previous year 112.77 112.12
Profit available for appropriation 126.18 128.84
Less : Dividend 10.03 12.03
Tax on Dividend 1.70 2.04
General Reserve 1.35 2.00
Balance carried forward to
next year 113.10 112.77
DIVIDEND
We recommend a dividend of Rs. 5.00 per Equity Share of Rs.10/- each
for the year ended 31st March, 2008 (Previous year Rs. 6.00 per Equity
Share of Rs. 10/- each).
COURSE OF BUSINESS AND OUTLOOK
The Managements Discussion and Analysis Report, as required under
Corporate Governance, forming a part of this report, is a reflection of
the current state of business. It also deals with the opportunities and
threats faced by your Company and the Company outlook.
The demand growth of Polyester POY is good. Polyester being cheap yarn
among the synthetic yarns and having better properties is a preferred
yam for textiles, catering to both low and high income group. However,
over supply position of Polyester POY coupled with high and volatile
crude oil prices which moved during the year 2007-08 between U.S.
Dollar 76 per barrel in July 2007 to U.S. Dollar 110 per barrel in
March 2008 and high energy cost have considerably affected margins.
The demand for Nylon Tyre Cord Fabric (NTCF) is also good. Despite good
demand, the margins have been affected due to cheap imports. It is
expected that demand for NTCF would continue to grow with large
expansion announced by tyre industry.
Efforts are made to improve margins by rationalisation of work force,
improvement of plant productivity, cost control, product mix and saving
in interest cost. Your Directors are cautiously optimistic for improved
performance.
Your Companys thrust on modernisation and debottlenecking of plant
continued to improve plant efficiency and quality of products to
compete with products manufactured from latest technology plants.
EXPANSION
The capacity expansion of NTCF of 8000 M.T. per annum completed in the
quarter ended 31st March, 2007 has been stabilised and operating at
full capacity. The product is commanding preferential choice of
customers.
HUMAN RESOURCE DEVELOPMENT AND ENVIRONMENT
The report on Managements Discussion and Analysis includes its
observations on human relations, approach to human resource
development, safety, health and environment.
The fast changing business scenario has brought HRD functions on
forefront. The existing performance appraisal system has been fine
tuned so that talented and capable employees are identified,
appropriately rewarded and groomed for higher level.
The Board wishes to place on record its deep appreciation for sincerity
and commitment of its employees to the organisation.
AWARD
We are glad to report that your factory Rajashree Polyfil, Bharuch has
been conferred National Safety Award for Accident Free Year 2005 from
National Safety Council and for the fifth consecutive year Gujarat
State Safety Award for maintaining lowest Disability Injury Index (DM)
for the year 2006.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
Energy conservation measures, progress made in technology absorption
and foreign exchange earnings and outgo, as required by the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 are set out in a separate statement attached hereto and forming
part of the report.
CORPORATE GOVERNANCE
Your Company reaffirm its commitment to Corporate Governance and is
fully compliant with the conditions of Corporate Governance stipulated
in clause 49 of the Listing Agreement with Stock Exchanges. A separate
section on compliance with the conditions of Corporate Governance and a
Certificate from the firm of practising Company Secretaries dated 5th
May, 2008 in this regard is annexed hereto and forms a part of the
Report.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirements of Section 217(2AA) of the Companies Act,
1956 and on the basis of explanation and compliance certificate given
by the executives of the Company and subject to disclosures in the
Annual Accounts and also on the basis of discussions with the Statutory
Auditors of the Company from time to time, we state as under:
(i) that in the preparation of the annual accounts, the applicable
accounting standards had been followed;
(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 and of the
profit 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 safeguarding the assets of the
Company and for preventing and detecting fraud and other
irregularities; and
(iv) that the directors had prepared the annual accounts on a going
concern basis.
DIRECTORS
In accordance with Articles of Association of the Company, Mr. B.K.
Birla and Mr. V. Dixit, Directors of the Company will retire by
rotation and being eligible, offer themselves for re-appointment.
AUDITORS
Messrs. Price Waterhouse, the Auditors of the Company will retire from
the office of the Auditors and being eligible offer themselves for
re-appointment. Their remuneration for the current year is to be fixed
by you.
COST AUDITORS
The Cost Accounts Records maintained by your Company for both the
products - Polyester and Nylon are subject to yearly audit by qualified
Cost Auditors. Your Company has appointed M/s. N.I. Mehta & Co., a
firm of Cost Auditors for conducting the audit of such records for the
financial year 2007-08.
PARTICULARS OF EMPLOYEES
Details of remuneration paid to employees as required by Section
217(2A),of the Companies Act, 1956 are set out in a separate statement
annexed hereto and forms a part of the report.
For and on behalf of the Board of Directors
B. K. BIRLA
Place : Mumbai G. M. SINGHVI
Date : 5th May, 2008 Directors
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| Source : Religare Technova | |
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