The Directors take pleasure in presenting the 28th Annual Report on
the operations of your Company and the Audited Accounts for the
financial year ended 31st March, 2012, together with the Auditors''
Your Company''s results for the year, in comparison with the previous
year, are given below in a summarized format:
(Rs. in lakhs)
Particulars 2011-12 2010-11
Net Sales 32,181.30 29,933.47
Other Income 156.89 154.35
Profit before interest and
depreciation and prior
period adjustments 1,934.64 1,981.32
Less: Interest 900.00 768.90
Depreciation 215.01 198.32
Profit Before Tax and prior
period adjustments 819.63 1,014.10
- Prior Period Adjustments 12.56 2.84
Profit Before Tax 832.19 1,016.94
Less: Provision for tax
- Regular Tax 163.99 294.46
- Deferred Tax (asset)/
liability 101.46 4.80
Profit/(Loss) after tax
for the year 566.74 717.68
in P&L Account
brought forward 1,518.28 924.62
Amount available for
appropriation 2,085.03 1,642.30
Transfer to General
Reserve 43.00 54.00
Proposed Dividend on
equity shares 60.04 60.04
Income Tax on proposed
Dividend 9.74 9.97
to Balance Sheet 1,972.25 1,518.29
Your Directors have pleasure in recommending a dividend of Rs. 2.00 per
share for the year 2011-12.
Operations of the Company''s three divisions for the year under review
were as follows
This year, the Lead division recorded sales of Rs. 27,448 lakhs as
against Rs. 25,395 lakhs the previous year.
The entire energy generated at Ramagiri was sold to Andhra Pradesh
Power Coordination Committee, and the total revenue was Rs. 88 lakhs as
against Rs. 73 lakhs the previous year.
This year, the Glass Lining division recorded sales of Rs. 4,645 lakhs as
against Rs. 4,466 lakhs the previous year.
The combined turnover of the Company, thus, was Rs. 32,181 lakhs for the
year under review, as against Rs. 29,933 lakhs for the previous year.
Your Company has complied with all provisions of Corporate Governance,
as required under Clause 49 of the Listing Agreement. A report on
Corporate Governance, along with the certificate on its compliance from
the Auditors, forms part of this report.
Voluntary Guidelines -2009:
The Ministry of Corporate Affairs has issued a set of Voluntary
Guidelines on ''Corporate Governance'' and ''Corporate Social
Responsibility'' in December, 2009. These guidelines are expected to
serve as a benchmark for the Corporate Sector and also help them in
achieving the highest standard of corporate governance.
Some of the provisions of these guidelines are already in place as
reported elsewhere in this Report. The other provisions of these
guidelines are being evaluated.
Your Company''s certificates for Quality Systems under ISO 9001 for the
Lead Division continue to be valid.
CONSERVATION OF ENERGY:
(i) Your Company continues to explore all possible avenues to reduce
(ii) As your Company is not covered in the Schedule to the Companies
(Disclosures of particulars in the report of the Board of Directors)
Rules, 1988, read with Section 217(1)(e) of the Companies Act, 1956,
the details under Form ''A'' are not required to be furnished.
No new technology has been obtained during the year and the existing
technology in use has been fully absorbed.
FOREIGN EXCHANGE EARNINGS AND OUTGO:
(Rs. in Lakhs)
a) Foreign Exchange earnings on exports 1,141.83 4,474.16
b) Foreign Exchange used on account of:
i) Foreign Travel - 1.47
ii) CIF value of imports of raw
material & others 11,209.67 13,341.24
iii) Commission on Sales - 15.44
iv) Dividend for 2010-11/2009-10 1.65 0.82
Pursuant to the provisions of Section 256 of the Companies Act, 1956,
Sri S.V.Narasimha Rao, and Dr. M.R.Naidu will retire by rotation at the
ensuing Annual General Meeting, and are eligible for reappointment.
Sri S V Narasimha Rao offers himself for reappointment, while Dr Naidu
does not seek reappointment. The Board thanks Dr Naidu for his
invaluable contributions to your Company during his long years of
Your Company has accepted fixed deposits during the year, and complied
with all the statutory provisions. The outstanding deposits as on 31st
March, 2012 amount to Rs. 287.00 lakhs, which includes Rs. 227.00 lakhs
from related parties.
Statutory Auditor: Your Company''s auditors M/s. Sarathy & Balu,
Chartered Accountants, retire at the conclusion of the forthcoming
Annual General Meeting and have signified their willingness to accept
re-appointment and confirmed their eligibility under Section 224(1B) of
the Companies Act, 1956.
Cost Auditor: As per the requirement of the Companies (Cost Accounting
Records) Rules, 2011, read with Sec. 209(1)(d) and Section 233B of the
Companies Act, 1956, your Company carried out an audit of Cost
Accounting records relating to Wind Firm division for the year 2011-12.
In this connection, your Company has appointed Mr. N.V.S. Kapardhi,
Cost Accountant, as Cost Auditor for the Financial Year 2011-12.
Further, subject to approval of the Central Government, your company
has appointed Mr. N.V.S. Karpardhi, Cost Accountant, who has signified
his willingness to accept appointment and confirmed his eligibility
under Section 224(1B) of the Companies Act, 1956, as Cost Auditor for
the Financial Year 2012-13.
PARTICULARS OF EMPLOYEES:
No employee was in receipt of remuneration more than the limit
prescribed under the Companies (Particulars of Employees) Rules, 1975.
TRANSFER OF UNCLAIMED AND UNPAID DIVIDEND TO IEP FUND:
Pursuant to Section 205C of the Companies Act, 1956, read with the
Investor Education and Protection Fund (Awareness and Protection of
Investors) Rules, 2001 as amended from time to time, an amount of Rs.
30,075/- in the unclaimed and unpaid interim dividend for 2004-05 was
transferred to the Investor Education and Protection Fund during the
DISCLOSURE AS PER LISTING AGREEMENT:
The cash flow statement in accordance with the Accounting Standard on
cash flow statement (AS-3) issued by ICAI is appended to this Annual
Your Company''s shares are listed on the BSE Limited, Mumbai, PJ.
Towers, Dalal Street, Fort, Mumbai. The annual listing fee for the year
2012-13 has been paid.
In pursuance of the provisions of Section 217(2AA) of the Companies
Act, 1956, your Directors state that:
i. the applicable accounting standards have been followed In the
preparation of the annual accounts.
ii. they had selected such accounting policies and applied them
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 for the financial year ending 31st March, 2012, and of the
profit of the Company for that period.
iii. they had taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of this
Act for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
iv. they have prepared the accounts on a going concern basis.
The industrial relations in the Company continue to be very cordial and
stable. Your Directors would like to place on record the dedication and
commitment of all the employees of your Company.
Your Directors thank the customers, vendors, investors and Andhra Bank
for their continued support during the year.
For and on behalf of the Board
Place : Hyderabad Chairman and
Date : 21-07-2012 Managing Director