To The Members,
The Directors take pleasure in presenting the 29th Annual Report on
the operations of your Company and the Audited Accounts for the
financial year ended 31st March, 2013, together with the Auditors''
Your Companys results for the year, in comparison with the previous
year, are given below in a summarized format:
(Rs. in lakhs)
Particulars 2012-13 2011-12
Net Sales 27063.40 32181.30
Other Income 72.22 156.89
Profit before interest and
depreciation 1616.42 1934.64
Less: Interes 595.77 900.00
Depreciation 323.08 215.01
exceptional & extraordinary 697.57 819.63
items and tax
(Net of tax) – Profit
on sale of GLD
Profit before Tax 2165.72 819.63
Profit after Tax 1979.42 566.74
Add: Opening balance in Statement of 1972.25 1518.28
Profit & Loss
Amount available for appropriation 3951.67 2085.03
Transfer to General Reserve 150.00 43.00
Proposed Dividend on equity shares 60.04 60.04
Income Tax on proposed Dividend 9.74 9.74
Surplus/(Deficit) carried to Balance 3731.89 1972.25
Your Directors have pleasure in recommending a dividend of Rs.2.00 per
share for the year 2012-13.
Operations of the Company''s three divisions for the year under review
were as follows:
This year, the Lead division recorded sales of Rs.25,987 lakhs as
against Rs.27,448 lakhs in the previous year.
The entire energy generated at Ramagiri was sold to Andhra Pradesh
Power Coordination Committee, and the total revenue was Rs.45 lakhs as
against Rs.88 lakhs in the previous year. As per the interim order
passed by Andhra Pradesh Electricity Regulatory Commission (APERC), the
company is receiving Rs.1.69 per unit instead of Rs.3.37 per unit.
However, the Company has filed an appeal before the Appellate Tribunal
for Electricity (APTEL) against the order passed by the APERC.
GLASS LINING :
This year, the Glass Lining division recorded sales of Rs.1,031 lakhs
till 21st June, 2012, the date of transfer of the business to De
Dietrich Process Systems India Private Limited.
The combined turnover of the Company, thus, was Rs.27,063 lakhs for the
year under review, as against Rs.32,181 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 Companys 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)
Particulars 2012-13 2011-12
a) Foreign Exchange earnings
on exports 529.21 1141.83
b) Foreign Exchange used on
i) Foreign Travel
ii) CIF value of imports of
raw material & others 98.61 11209.67
Iii) Commission on Sales
iv) Dividend for 2011-12 / 2010-11 1.65 1.65
Pursuant to the provisions of Section 256 of the Companies Act, 1956,
Sri V. Ashok will retire by rotation at the ensuing Annual General
Meeting, and being eligible, offers himself for reappointment.
Your Company has accepted fixed deposits during the year, and complied
with all the statutory provisions. The outstanding deposits as on 31st
March, 2013 amount to Rs.482.00 lakhs, which includes Rs.422.00 lakhs
from related parties.
Statutory Auditor: Your Companys 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: Subject to the approval of the Central Government, your
company has appointed Mr. N.V.S. Kapardhi, Cost Accountant, who has
signified his willingness to accept the appointment and confirmed his
eligibility under Section 224(1B) of the Companies Act, 1956, as Cost
Auditor for the Financial Year 2013-14, as required under the Companies
(Cost Audit Report) Rules, 2011, read with Sec. 209(1)(d) and Section
233B of the Companies Act, 1956.
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.62,367/- in the unclaimed and unpaid final 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) is appended to this Annual Report.
Your Companys shares are listed on the BSE Ltd., Mumbai, P.J. Towers,
Dalal Street, Fort, Mumbai. The annual listing fee for the year 2013-14
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, 2013, 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 V. Ramesh
Date: 11-05-2013 Chairman and Managing Director