The Directors have pleasure in presenting the Nineteenth Annual Report
together with the Audited Balance Sheet and Profit and Loss Statement
for the year ended 31.03.2012.
FINANCIAL RESULTS :
The operating results for the year 2011-2012 are given below : -
(Rs in Lakhs)
Profit before Interest and Depreciation
and Other adjustments 337.27
Less : Interest 64.68
Depreciation 42.98 107.66
Net Profit before Tax 229.61
Provision for Tax :
Current Tax 46.04
Deferred Tax (Assets) / Liability (3.84)
MAT Credit Entitlement 44.71
Surplus carried over to Balance Sheet 232.12
Steps taken to manufacture and market new product lines complimentary
to existing product has improved the sales and margins substantially,
Manufacturing capacity was better utilised for newer product lines with
Diesel generated power.
Power cut of nearly 70% of the normal requirement still exists in Tamil
Nadu. Cost addition due to Diesel Generator power has been minimal in
new product lines and the increased production and sale has reduced the
Company has been evaluating different methods to produce castings with
minimum power requirement and will be implementing these methods during
the current year.
During the year, the company made a net profit of '' 229 lacs and by
virtue of this, the net worth of the company has become positive this
year. With the business of the company continuing to improve, the
company hopes to generate adequate surplus and wipe out the accumulated
losses, in the next two years.
Mr. Loganathan, Director, who retires by rotation, and being eligible,
offers himself for reappointment. Mr. Philip K Baby, Director resigned
from Director - Marketing w.e.f 01.12.2011.
Mr. S. Aravinthan, ACS, was the Company Secretary and Compliance
officer of the Company.
DIRECTORS'' RESPONSIBILITY STATEMENT :
Your Directors further report that
(i) in the preparation of annual accounts, the applicable accounting
standards have been followed and there were no material departures;
(ii) the accounting policies selected by them have been applied
consistently. Prudent Judgments and estimates have been made to give a
true and fair view of the state of affairs of the company as at 31st
March 2012 and of the Profit of the company and the cash flow statement
for the year ended 31.03.2012.
(iii) they 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 irregularities;
(iv) The annual accounts have been prepared on a going concern basis.
The shares are listed in Bombay Stock Exchange and will be continued to
be listed in Bombay Stock Exchange which has extensive networking and
the investors have access to on-line dealings with the company''s
securities across the country. The company''s shares have not been
traded in Coimbatore and Madras Stock Exchange for the past few years.
Members'' approval has already been obtained for De-listing the
Company''s equity shares from Coimbatore and Madras stock Exchanges.
Company will continue to meet the listing norms in these exchanges till
such time the delisting approval is obtained.
INVESTOR EDUCATION AND PROTECTION FUND
No amount is required to be transferred to Investor Education and
MANAGEMENT DISCUSSION AND ANALYSIS REPORT TRENDS AND DEVELOPMENT :
The economic slow down of Middle East where most of the products are
sold has not reduced the demand for the products. Improvement in the
building sector in areas other than Dubai in Middle East and the
appreciation of dollar will continue to improve sales and margins
during the year 2011-12. Company has started active domestic marketing
arrangements and has started supplies to several major projects like
Bombay Airport, Indian Oil Corporation Paradeep port refinery through
Essar, building sector in Pune etc.
M/s. Krishaan & Co., Chartered Accountants, Chennai, Statutory Auditors
of the Company, will retire at the ensuing Annual General Meeting and
are eligible for re-appointment.
The Company has not accepted any deposits from the public.
CONSERVATION OF ENERGY :
a) No effective step was taken to reduce power consumption per ton due
to 40% power cut, non- availability of power for 8 hours per day and
limitation of power during 18 hours to 22 hours every day. Frequent
stopping and restarting of melting equipments and other continuous
process operations like wax preparation, shell coating under controlled
air conditioned temperature resulted in higher usage of power than
normal. Power situation may continue for next 12-18 months.
b) Power and fuel consumption;
i) The Company has consumed 10,81,662 Units of power during the year
ii) Consumption per Unit of Production :
6825 Units consumed per MT of Rough Castings as against 5962 units in
the last year required for Stainless Steel Pipe Fittings and Ball
227 Units consumed per MT of Finished Goods as against 223 units in the
last year required for Stainless Steel Pipe Fittings and SG Iron Pipe
TECHNOLOGY ABSORPTION :
The Company has not entered into any Technical Collaboration agreement
and hence furnishing of particulars regarding technology absorption
does not arise.
FOREIGN EXCHANGE INFLOW AND OUTGO:
Foreign exchange inflow : '' 20,98,83,223/- Foreign exchange used : ''
PARTICULARS OF EMPLOYEES :
During the period under review, there was no employee drawing
remuneration in excess of the limits prescribed under section 217 (2A)
of the Companies Act, 1956.
INDUSTRIAL RELATIONS :
Relationship with the employees / labour was cordial during the year
Your Directors take this opportunity to thank M/s. Bank of India for
the support extended during the period. Your Directors also wish to
thank all the suppliers, employees, Government Departments/Agencies and
others for their valuable contribution and assistance during the year.
FOR AND ON BEHALF OF THE BOARD
Place : Coimbatore SD/- A.V. PALANISWAMY SD/- M. LOGANATHAN
Date : 26.05.2012 Managing Director Director