The Directors of your Company present its 37th Annual Report on the
functioning of the Company together with the Profit and Loss Account
for the year ended 31st March 2012 and the Balance Sheet
as at that date together with the Auditor''s Report there on.
Current year Previous Year
(Rs.in Lakhs) (Rs.in Lakhs)
Gross Profit / (Loss) 452.16 428.38
Depreciation 358.74 323.37
Profit / (Loss) before Tax 93.42 105.01
Provision for Income Tax 7.20 21.00
Provision for Fringe Benefit Tax - -
Provision/ Release of Deferred Tax 7.48 21.00
Net Profit for the year 78.74 63.01
Balance brought forward from
the earlier year 286.69 309.89
During the financial year 2011-12, despite the power crisis and
increased business competition, your company was able to attain
reasonable profit levels and register a net profit of Rs. 78.74 lakhs
as compared to profit of Rs. 63.01 lakhs in the previous year. ,
The order book position is comfortable since the Company was able to
tie up long term contracts with the customers. The newly erected plant
at Pondicherry had performed well and was able to reach optimum
production levels but for the difficulty in the power front. The
proposed plant under implementation in Perundurai, Erode District, is
expected to commence production during second half of 2012-13. ''
The Power generation is normal and we expect the generation of power
will improve in the coming months.
The Board of Directors in their meeting held on 3rd May, 2012 had
declared an Interim dividend of 10% (Re 1 per equity share of Rs 10/-
each fully paid up) for the year ended 31st March 2012 on the paid up
capital of the Company aggregating to Rs. 31,16,550 which was paid to
those shareholders whose /lames appeared in the Register of Members as
at the closing hours of business on 12th May 2012. your Board of
Directors wish to recommend the same for confirmation as final
dividend, by the shareholders at the ensuing Annual General Meeting.
Mr Anil Kumar Seth and Mr P Siva are retiring at this meeting by
rotation and being eligible, offer themselves for reappointment. .
The Company received the required minimum subscription of 90 percent of
the issue size by the closure of the issue.
Out of the above issue, the Company has allotted 16,85,721 equity
shares to the existing shareholders and the Company has also obtained
the Listing/ trading approval from the Bombay Stock Exchange and the
Madras Stock Exchange.
The Board of Directors is proposing to utilize the proceeds of the
rights issue towards setting up of a new plant in Perundurai, Erode
District, Tamil Nadu.
The Board, further, thank all the shareholders for making the issue
The Company has not accepted any fixed deposits during the year.
Particulars of Employees and Labour Relations:
None of the employees fall under the category specified under Sec.217
(2A)of the Companies Act, 1956 and the Rules there under.
The relations with the employees during the year had been smooth and
Conservation of Energy, Technology Absorption and Foreign Exchange
inflow & Outgo:
Prescribed particulars under Section 217(1 )(e) of the Companies Act,
1956 are furnished as Annexure-A to this Report.
Director''s Responsibility Statement:
Pursuant to the provisions of Section 217(2AA) of the Companies Act,
1956, your Directors confirm that '' -
- in the preparation of the annual accounts for the financial year
ended 31st March 2012, the applicable accounting standards have been
followed along with proper explanation related to material departures,
- they have selected such accounting policies and applied them
consistently and made judgements and estimates that are reasonable and
prudent so as to give a true and fair view of the State of affairs of
the Company as on 31st March, 2012 and of the profit and loss of the
company for that period.
- 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.
- the annual accounts are prepared on a going concern basis.
As a listed Company, necessary measures are taken to comply with the
listing agreements with stock exchanges. A Report on Corporate
Governance, along with certificate of Compliance from the Practising
Company Secretary forms Annexure-B to this report.
Management Discussion and Analysis Report:
A Management Discussion and Analysis Report is given as Annexure C to
Messrs. Singhi & Co., Chartered Accountants, retire at this meeting and
being eligible are proposed for reappointment. They also expressed
their willingness to continue in office if reappointed, at the ensuing
annual general meeting.
In accordance with Section 383Aof the Companies Act, 1956, and
Companies (Certificate) Rules, 2001, the company has obtained a
certificate from M/s. Lakshmmi Subramanian & Associates, Chennai,
Secretary in whole time practice confirming that the company has
complied with all the provisions of Companies Act, 1956 and a copy of
such certificate is annexed to the report.
Cost Audit Compliance Certificate:
Our Company has obtained the Cost Audit Compliance Certificate for the
period ended 31st March, 2012 issued by M/s Sivasubramaniart & Co.,
Cost Accountant and the same shall be filed with MCA.
Your Directors take this opportunity to place on record their
appreciation of the continued support and Co-operation from Punjab
National Bank and HDFC Bank Limited.
Your Directors also wish to convey their thanks to all the valued
customers and the valuable services rendered by the Officers, Staff and
Workers at all levels.
For and on behalf of the Board
Place: Chennai G.N.Saraf
Date : 03.09.2012 Chairman and Managing Director