The Directors take pleasure in presenting the 31st Annual Report on
the operations of your Company and the Audited Accounts for the
financial year ended 31st March, 2015, 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 2014-15 2013-14
Net Sales 38,595.87 27,818.45
Other Income 566.26 168.46
Profit before interest and
depreciation 2,254.32 1,850.77
Less: Interest 705.24 697.95
Depreciation 332.98 313.70
Profit before exceptional &
extraordinary items and tax 1,216.10 839.12
Profit before Tax 1,216.10 839.12''
Profit after Tax 811.99 521.07
Add: Opening balance in
Statement of Profit & Loss 4,094.59 3,731.88
Amount available for
appropriation 4,905.73 4,252.95
Transfer to General Reserve 82.00 53.00
Proposed Dividend on equity
shares 90.06 90.06
Income Tax on proposed
Dividend 18.00 15.31
Surplus/(Deficit) carried to
Balance Sheet 4,715.67 4,094.58
Note: Previous year''s figures are regrouped and presented wherever
Your Directors have pleasure in recommending a dividend of Rs.3/- per
share for the financial year 2014-15.
Operations of the Company''s two divisions for the year under review
were as follows:
This year, the Lead division recorded sales of Rs.38,512 lakhs as
against Rs.27,721 lakhs in the previous year.
The entire energy of around 25 lakhs units generated at Ramagiri was
sold to Andhra Pradesh Power Coordination Committee, and the total
revenue was Rs.84 lakhs as against ''97 lakhs in the previous year.
The combined turnover of the Company, thus, was Rs.38,596 lakhs for the
year under review, as against Rs.27,818 lakhs for the previous year.
The entire escrow amount of Rs.10 crores, and accrued interest,
relating to the sale of Glass Lining Division to De Dietrich Process
Systems India Private Limited has been received by your Company. This
amount has been deployed towards working capital.
Corporate Governance: 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.
Quality System: Your Company''s certificates for Quality Systems under
ISO 9001 for the Lead Division continue to be valid.
Management Discussion and Analysis Report: A detailed discussion on the
industry structure as well as on the financial and operational
performance is contained in the ''Management Discussion and Analysis
Report'' enclosed hereto that forms an integral part of this Report.
Information as required under Section 134(3)(m) of the Companies Act,
2013 read with Rule 8(3) of Companies (Accounts) Rules, 2014:
A. Conservation of Energy:
Your Company continues to explore all possible avenues to reduce energy
Manual burners for all the melting furnaces in both units were replaced
with automatic control burners at a total cost of Rs 10 lakhs, to
reduce fuel consumption.
Energy efficient lights were installed in a part of the Tirupathi plant
at a cost of Rs 2 lakhs.
B. Technology Absorption:
No new technology has been obtained during the year, and the existing
technology in use has been fully absorbed.
C. Foreign Exchange earnings and outgo: Total foreign exchange used
(Rs in lakhs)
Particulars 2014-15 2013-14
a) Foreign Exchange earnings 244.72 822.20
on exports 244.72 822.20
b) Foreign Exchange used on
i) Foreign Travel 0.25 3.37
ii) Professional Charges 0.91 -
iii) Subscription charges 2.96 -
iv) CIF value of imports of 12,426.55 13,980.20
raw material & others
v) Dividend for 2013- 247 1.65
Sri S. V. Narasimha Rao, Sri V. Ashok, Sri Satish Malladi, Sri Sridar
Swamy and Sri Suketu Shah were appointed as Independent Directors of
the Company for a period of 5 years, while Smt. Vuyyuru Rajeswari was
appointed as a Director at the 30th Annual General Meeting of the
Company held on 30th September, 2014.
Sri V. Ramesh and Sri Sandeep Ramesh were reappointed as the Managing
Director and Executive Director respectively for a period of 3 years
with effect from 14th August, 2014.
Key Managerial Personnel:
Sri B. Seshagiri Rao, DGM Accounts, was designated as the Chief
Financial Officer of the Company by the Board of Directors in its
meeting held on 9th August, 2014.
Number of meetings of the Board:
Details of same are disclosed in the Corporate Governance Report.
Declaration of Independence:
This is to confirm that all the Independent Directors have affirmed
their compliance with the criteria of Independence as provided in
Section 149 (6) of the Companies Act, 2013.
Risk Management Policy:
The Board has adopted and is implementing a suitable Risk Management
Policy for the company which identifies therein different elements of
risk which may threaten the existence of the company.
Particulars of investments under Section 186 of the Companies Act,
The company had made an investment of Rs. 91.16 lakhs in equity shares
of GLW Ltd in the financial year 2008-09. The company had also made a
provision for diminution in the value of said investment for the entire
amount by way of Rs.45.58 lakhs each in the financial years 2012-13 and
No deposits under Chapter V of the Companies Act, 2013 were accepted or
renewed during the year.
Compostion of Audit Committee and Vigil Mechanism:
Details of the same are disclosed in the Corporate Governance Report.
Information as required under Section 134(3)(e), Section 178(3) of the
Companies Act, 2013 and Rule 8(4) of the Companies (Accounts) Rules,
2014: Refer Annexure B
Disclosures pursuant to Section 197(12) and Rule 5 of the Companies
(Appointment and Remuneration) Rules, 2014: Refer Annexure C
Annual Report on Corporate Social Responsibility (CSR) activities in
accordance with Rule 8 of Companies (CSR Policy) Rules, 2014: Refer
Extract of Annual Return (Pursuant to Section 92(3) and Section
134(3)(a) of the Companies Act, 2013 and Rule 12 of Companies
(Management and Administration) Rules, 2014: Refer Annexure E
No employee was in receipt of remuneration more than the limit
prescribed under the Companies (Appointment and Remuneration) Rules,
Directors'' Responsibility Statement:
Your Directors, in terms of Section 134(5) of the Companies Act, 2013,
(a) in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
(b) the Directors 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 at the end of the financial year and of the profit and
loss of the company for that period;
(c) the Directors 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;
(d) the Directors had prepared the annual accounts on a going concern
(e) the Directors had laid down internal financial controls to be
followed by the company and that such internal financial controls are
adequate and were operating effectively.
(f) the Directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
The industrial relations in the Company continue to be very cordial and
stable. Your Directors would like to place on record their appreciation
of the dedication and commitment of all employees of your Company.
Your Directors thank the customers, vendors, investors, and Andhra Bank
for their continued support during the year.
For Board of Directors
Place : Hyderabad Managing Director
Date : 14-08-2015 DIN: 00296642