The Directors are pleased to present the 48th Annual Report and the
audited accounts for the financial year ended 31st March 2012.
Financial Highlights (Rs in lakhs)
For the year For the year
Profit before Finance costs,
Depreciation and amortisation
expenses and Tax expenses 2,387.83 1,446.98
Less : Finance Costs 341.32 323.82
Depreciation and amortisation
expenses 459.47 455.85
Tax expenses 542.11 1,342,90 217.50 997.17
Profit after tax for the
current year 1,044.93 449.81
Opening balance of Surplus 224.36 246.46
Transfer to General reserve 600.00 100.00
Dividend 352.00 320.00
Corporate Dividend tax 57.10 1009.10 51.91 471.91
Closing balance of Surplus 260.19 224.36
Considering the profits for the current year, your Directors recommend
a dividend of 110% (Rs 11.00 per share of Rs 10 each) for the year ended
31st March, 2012 which, if approved at the ensuing annual general
meeting, will be paid to those members whose names appear in the
Register of Members of the Company as on 31.07.2012. In respect of
shares held in dematerialised form, the dividend will be paid on the
basis of beneficial ownership as per the details furnished by the
Depositories for this purpose at the end of business hours as on
The turnover of the Company improved from Rs 454 crores to Rs 542 crores
during the year ended 31st March, 2012, thus registering an increase of
19 % over that of previous year. Cattle feed sales volume improved from
3.20 lakhs tonnes to 3.66 lakhs tonnes by recording a growth of 14 %.
The Animal feed division generated a profit of Rs 1533.88 lakhs against
Rs 397.73 lakhs in the previous year. The volume of cake processing
improved from 62,000 tonnes in the previous year to 73,000 tonnes in
the year under report. However, as a result of fall in the price of
coconut oil by around 40 % at a time when we had around 10,000 tonnes
of imported copra cake on hand, the profit of cake processing division
experienced a fall in profit from Rs 481.30 lakhs in the previous year
to Rs 291.64 lakhs during the year 2011-12. In the Dairy division, the
volume of sale of ice cream remained more or less at the same levels
that of previous year at 865 kl. The profit of Dairy division for the
year 2011-12 is Rs 96.99 lakhs, which was at Rs 145.03 lakhs in the
previous year. The over-all profit after tax thereby improved from Rs
449.81 lakhs in year 2010-11 to Rs 1,044.93 lakhs in the year under
As a result of increase in railway freight and introduction of service
tax on railway freight in March, 2012, the prices of major ingredients
have gone up by around Rs 750 per tonne. We do not expect a significant
fall in the cost of cattle feed ingredients in the immediate future. We
have adjusted the selling prices of feed, to match the increase in
ingredient prices. We firmly believe that the sales volume of cattle
feed will further improve in the current financial year. We expect to
better our performance in Animal feed division, by optimising the feed
formulation and making suitable adjustments in the selling prices along
with the ingredient prices.
At present we are getting sufficient quantity of local copra cake at
reasonable price. If the price of coconut oil and copra cake remains at
this level and sufficient quantity is available in the market for
processing, in the current year, we expect to better our performance.
We are taking all steps to improve the market for ice cream. We are
appointing new dealers in untapped areas to improve the volume of sales
and thereby utilise more of the unused production capacity. We expect
to improve the volume of sale of ice cream and thereby better the
margins of Dairy division in the current year.
More information relating to the operations of the Company has been
furnished in the Management Discussion and Analysis Report, as per
Clause 49 of the Listing Agreement.
The office of Koratty Unit has been shifted to the new administrative
building costing Rs 66 lakhs in November, 2011. A new silo for storage
of material costing Rs 35 lakhs has been added in Irinjalakuda Unit. A
new tailor made ERP has been implemented in all Units and an amount of
Rs 101 lakhs has been incurred thereto including hardware.
For the future development and expansion of Irinjalakuda Unit,
negotiations for acquiring adjacent properties of around 72 Ares are at
final stages, which may involve a capital outlay of around Rs 5.70
Awards and Recognitions
The Company has won the SEA Award constituted by Solvent Extractors''
Association of India for highest processor of coconut oil cake for the
year 2010-11. This Award is being received by the Company for the past
21 years consecutively since the inception of the award.
Shri. K. P John, Shri John Francis K. and Shri T.R. Ragulal will retire
by rotation at the ensuing annual general meeting and being eligible,
offer themselves for re-appointment.
Pursuant to Section 217 (2AA) of the Companies Act, 1956 the Directors
(i) in the preparation of the annual accounts the applicable accounting
standards have been followed along with proper explanation relating to
(ii) accounting policies have been selected and applied 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
(iii) proper and sufficient care has been taken 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.
Corporate Governance Report, Management Discussion and Analysis Report
and Certificate from Auditors on Corporate Governance have been
furnished separately and form part of this report.
M/s. Varma & Varma, Chartered Accountants will retire at the
forthcoming Annual General Meeting and are eligible for re-appointment.
Disclosure of Particulars
Information as per the Companies (Disclosure of Particulars in the
Report of Board of Directors) Rules, 1988 are given in Annexure ''A''
forming part of this report.
Particulars of employees
As there are no employees who are drawing the specified remuneration,
particulars of employees under Section 217 (2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules, 1975 are
Your Directors wish to place on record their sincere appreciation for
the assistance and co-operation received from shareholders, bankers,
especially ICICI Bank, Registrars and Share Transfer Agents, customers,
distributors and suppliers. Board also acknowledge the valuable
committed services of the executives, staff and workers of the Company.
By Order of the Board
Irinjalakuda M.C. Paul
May 30, 2012 Chairman and Managing Director