Source Natural Foods and Herbal Supplements Limited.
The Directors are pleased to present 19th Annual Report of the Company
together with Audited Balance Sheet and Profit and Loss Account for the
year ended 31st March 2014.
1. FINANCIAL RESULTS:
Particulars 31.03.2014 31.03.2013
Total revenue 455.12 376.17
Profit/ (Loss) before exceptional and
extraordinary items and tax 17.23 36.11
Exceptional Items - 0.64
Profit before extraordinary items
and tax 17.23 35.47
Extraordinary Items - -
Tax expenses - -
Net Profit/(Loss) carried to
Balance Sheet 17.23 35.47
Earnings Per Share (Basic/ Diluted) 0.33 0.79
The Total revenue of the Company for the year ended 31st March, 2014
was Rs. 455.12 Lakhs which has increased approximately by 20.99% from
the Total revenue of the previous year which was Rs. 376.17 Lakhs. The
increase in revenue is due to the expansion in the sales market of the
Company. The Company has made an additional investment of Rs. 30.23
Lakhs in the plant & machinery, Rs. 21.92 Lakhs towards building and
Rs. 8.15 lakhs in Intangible assets. The Net Profit of the Company
during the financial year under review is Rs. 17.23 Lakhs when compared
to Rs. 35.47 Lakhs during the previous year under review. During the
financial year under review, the Company has more expenses towards
hiring of new staff for operations and sales team. The Company has
spent Rs. 28.97 Lakhs more than it spent in the previous year towards
employee related expenses. The Company has spent Rs. 30.85 Lakhs over
selling and distribution expenses towards brand building of the
Product. These major expenses resulted in lesser net profits during
this financial year.
Since these expenses will derive profits eventually in the future
years, your company is confident of performing better in the next
3. FUTURE OUTLOOK:
Company''s vision is to make the Ayurveda reach the mass 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
the form of medicines and herbal supplements.
The Company intends to focus to increase the market share of the
products. The company also intends to increase its products and
Since the Company has not yet recovered from the previous years piled
up losses, your Directors do not recommended any Dividend for the
financial year ended 31.03.2014.
Pursuant to the provisions of Section 152 of the Companies Act, 2013
and the Articles of Association of the Company, Mr. C. L. Rathi and Mr.
Narayanan Narasimhan retire by rotation at the conclusion of the
ensuing Annual General Meeting and being eligible, offers themselves
Mr. Digvijay Dattatraya Choudhari resigned from the Directorship of the
Company due to his personal reasons which was accepted by the Board on
May 26, 2014 and the Board appreciates the contribution made by him
towards the Company.
Mr. Srinivas Gowra, Mr. Nikhil Sen and Mr. Sriram Chandrasekaran,
Independent Directors of the Company were appointed in June 25, 2010.
As per the provisions of Section 149 of the Companies Act, 2013, their
tenure will expire by the end of five years. Hence the Board recommends
the members to re-appoint them as Independent Directors for a term of
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. As per the provisions of
Section 139 of the Companies Act, 2013 and Companies (Audit & Auditors)
Rules, 2014, M/s. Vijay Narayan & Co., Chartered Accountants are
eligible for re-appointment as statutory auditors for the next three
years from the conclusion of this Annual General Meeting subject to the
ratification of members at every Annual General Meeting. Their
remuneration shall be fixed by the Board of Directors as per the terms
of arrangement 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. 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,
2014, 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 31.03.2014 as per the going concern concept.
9. 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.
10. 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 annexed hereto and Foreign
exchange earnings and outgo are NIL.
12. RESEARCH AND DEVELOPMENT:
Research & Development is a core activity in any food products
industry. Your Company is currently involved in carrying out various
Research & Development activities 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 at the BSE Limited.
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. SUBSIDIARY/ 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
Requirement is attached herewith. The Compliance Certificate on
Corporate Governance received from the Statutory Auditors is also given
as an Annexure to this report.
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 04, 2014
On Behalf of the Board
Arvind Varchaswi N.