To, Members of Source Natural Foods and Herbal Supplements Limited.
The Directors are pleased to present 18 Annual Report of the Company
together with Audited Balance Sheet and Profit and Loss Account for the
year ended 31st March 2013.
1. FINANCIAL RESULTS:
Particulars 31.03.2013 31.03.2012
Total revenue 376.17 155.13
Profit/ (Loss) before exceptional and
extraordinary items and tax 36.11 (48.34)
Exceptional Items 0.64 16.78
Profit before extraordinary items and
tax 35.47 (65.13)
Extraordinary Items - -
Tax expenses - -
Net Profit/Loss) carried to Balance
Sheet 35.47 (65.13)
Earnings Per Share (Basic/ Diluted) 0.79 (1.45)
The Total revenue of the Company for the year ended 31st March, 2013
was Rs. 3,76,17,324 which has increased approximately by 143% from the
total revenue of the previous year which was Rs. 155,13,167/-. The
increase in revenue is due to the expansion in the sales market of the
Company. With the efforts of the management, the Company has evolved as
a profit making unit in the current year. The Company has made an
additional investment of Rs. 31,22,000 in the plant & machinery during
the current year under review as the Company intends to improvise and
standardise the production process.
3. FUTURE OUTLOOK:
Company''s vision is to make the Ayurveda reach the masses across the
globe. Your Company focuses on such products which will bring Ayurveda
in to individual''s daily diet. We provide various Ayurvedic products in
form of medicines and herbal supplements.
The Company intends to focus on the standardisation of production and
related processes. It also intends to invest in the Research and
Development to achieve wider product portfolio.
The Company intends to create mass awareness of the products through
various advertisements and promotional media to further boost the sales
of the product. In the next two years the company intends to create a
strong marketing team to support the promotional activity and to
establish a strong distributor network throughout the country.
Since the Company has just started making profits and it needs more
funds for future operations, your Directors do not recommend any
Dividend for the Financial year ended 31.03.2013.
Pursuant to the provisions of Section 256 of the Companies Act, 1956
and the Articles of Association of the Company, Mr. Narayanan
Narasimhan and Mr. Srinivas Gowra retire by rotation at the ensuing
Annual General Meeting and being eligible, offers themselves for
Mr. Ramesh Chandra Agarwal resigned from the Directorship of the
Company due to his personal reasons which was accepted by the Board on
November 05, 2012 and the Board appreciates the contribution made by
him towards the Company.
The profiles of Directors retiring by rotation are given elsewhere in
the Annual Report.
M/s. Vijay Narayan & Co., Chartered Accountants retire as the Statutory
Auditors of the Company at the ensuing Annual General Meeting and being
eligible, offer themselves for re-appointment for holding office until
the conclusion of next Annual General Meeting, pursuant to the
provisions of Section 224(ID) of the Companies Act, 1956. Their
remuneration shall be fixed by the Board of Directors as per the terms
of agreed upon.
7. FIXED DEPOSITS:
Your Company has not accepted any Fixed Deposits from the Public or its
shareholders within the meaning of the section 58A of the Companies
Act, 1956, during the year under review.
8. COMPLIANCE CERTIFICATE UNDER SECTION 383A OF THE COMPANIES ACT,
Pursuant to Section 383A of the Companies Act, 1956, the company is
required to obtain compliance certificate from a Practicing Company
Secretary certifying that the company has duly complied with all
applicable statutory regulations and requirements and file the same
with the Registrar of Companies, Andhra Pradesh. In this connection, a
Compliance Certificate issued by a Practicing Company Secretary has
been obtained and is attached hereto.
9. DIRECTORS RESPONSIBILITY STATEMENT:
In accordance with the provisions of Section 217(2AA) of the Companies
Act, 1956, in respect of the financial statements as at 31st March,
2013, Your Directors state:
(i) That in the preparation of the Annual accounts, the applicable
accounting standards have been followed.
(ii) That your Directors have selected appropriate accounting policies
and applied them consistently and diligently so as to depict a true and
fair view of the state of affairs of the Company at the end of the
financial year and of the profit and loss account for that period.
(iii) That your Directors have taken proper and sufficient care with
respect to the maintenance of required and mandated records under the
provisions of the Companies Act, 1956 for safeguarding the assets of
your Company and preventing any frauds and irregularities.
(iv) That your Directors have prepared the Annual Accounts for the
Financial Year ended 31.03.2013 as per the going concern concept.
10. PARTICULARS OF EMPLOYEES:
During the year under review, all the employees have drawn their
salaries within the limits specified under Section 217(2A) read with
the Companies (Particulars of Employees) Rules, 1975 as amended from
time to time.
11. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO:
Pursuant to the provisions of Section 217(1) (e) of the Companies Act,
1956 read with Companies (Disclosure of Particulars in the report of
Board of Directors) Rules, 1988, the particulars of conservation of
energy and technology absorption are provided hereunder:-
Power and Fuel Consumption
a) Purchased Units (Kwh) 1,10,424.00
Total Amount (Rs.) 10,11,969.00
Rate/Unit (Rs.) 9.16
b) Own Generation Through Diesel Generator 8,184.10
Total Amount (Rs.) 2,27,175
Cost/Unit (Rs.) 27.76
Foreign exchange earnings of the company during the current financial
year is NIL and there were few expenditures in foreign currency for the
purpose of renewal of certificates to an extent of Rs. 37,875.80/-.
12. RESEARCH AND DEVELOPMENT:
Research & Development is a core activity in any pharma industry. Your
Company is currently involved in carrying out various Research &
Development to bring more herbal and organic products in to the
existing/new product portfolio and to add more value to the existing
products. The Company is also emphasizing on organic food and
nutritional supplements with an optimum mix of naturally available
ingredients for attaining a sustainable improvement in the Health of
all age Groups
The shares of your Company are listed in the Bombay Stock Exchange and
14. CODE OF CONDUCT:
The Company has adopted a uniform Code of Conduct for Directors, Senior
Management Personnel and other Executive level officers to ensure
proper ethical standards and further ensure due compliance to such
15. SUBSIDARY/ HOLDING COMPANIES:
There are no subsidiaries to your Company as on the date of report. In
terms of the shareholding, the Company is a subsidiary of Sumeru
Ayurveda Private Limited.
16. CORPORATE GOVERNANCE REPORT:
The Code of Corporate Governance as per Clause 49 of the Listing
Agreement is attached herewith. The Compliance Certificate on Corporate
Governance received from the Statutory Auditors is also given as an
Annexure to this report.
17. COST AUDITOR APPOINTMENT
Pursuant to Section 233B of the Companies Act, 1956 and General
Circular No. 15/2011 [52/5/CAN-2011], M/s. Susarla & Co. has been
re-appointed as cost auditing firm of the Company with effect from June
18, 2013 for conducting Cost Audit and issue of Cost Compliance
Certificate of the Company for the financial year 2013-14.
Your Directors take this opportunity to express their gratitude for
continuous support and co-operation extended by Government Authorities,
Bankers and other business associates along with our esteemed
Shareholders and employees.
Date: August 23, 2013
On Behalf of the Board
Sd/- Arvind Varchaswi N.
Sd/- Narayanan Narasimhan