The directors have pleasure in submitting their 38th Annual Report
together with the Audited Accounts for the year ended March 31, 2012
Performance highlights 2011-12 2010-11
Direct exports 579 134
Merchandise exports 3048 3690
Domestic Sales 14893 16731
Total Yarn Sales 18520 20555
Conversion charges earned 32 22
Wind Energy Converter Power 127 136
sold to third party
Total turnover 18679 20713
Profit/(loss) before, interest
and depreciation) 759 4474
Cash profit/(loss) (ie. profit/(loss)
before depreciation) (1044) 3035
Profit/(loss) before tax (2164) 1921
Profit/(loss) after tax (1444) 1256
Due to the loss incurred by the Company, your directors have not
recommended any dividend for the year ended 31.3.2012.
During the year, Sri S. Dinakaran, Joint Managing Director of your
Company was elected to be the Chairman of the Southern India Mills''
Association (SIMA). He is also a member of the Committee of
Administration of The Cotton Textiles Export Promotion Council(
TEXPROCIL), Mumbai and the Confederation of Indian Textile Industry
(CITI), Delhi. By virtue of the offices he holds, Mr. Dinakaran has
been representing to the Industries and Finance Ministries to get
relief to the ailing Textile Industry.
COST AUDIT REPORT
As per the directions of the Cost Audit Branch of the Ministry of
Corporate Affairs, M/s.S.MAHADEVAN & CO., Cost Accountants, Coimbatore,
were appointed Cost Auditors for audit of Cost Accounts of the Company
and their report for the year ended 31st March 2011 was submitted on
14.9.2011 to the Ministry of Corporate Affairs (VIDE SRN B 20301420
dated 14.9.2011). Due date for submission of that Cost Audit Report was
M/s. S. Mahadevan & Co. were again reappointed for Audit of Cost
Accounts of the Company for the year ended 31.3.2012. Their report for
the year ended 31.3.2012 will be filed before the due date, i.e.
Sri RS. Ananthanarayanan and Sri D. Sudharsan, Directors, retire by
rotation and are eligible for reappointment.
Your Company''s Code of Conduct applicable to the board has been adopted
by the board and all the directors of the company have confirmed
compliance with the Code of Conduct.
The auditors, M/s. M.S. Krishnaswami & Rajan, Chartered Accountants,
retire at the ensuing annual general meeting and have confirmed their
eligibility and willingness to accept office, if appointed.
Annexure to this report details Statement on directors'' responsibility,
conservation of energy, technology absorption, Research and Development
and foreign exchange earnings and outgo. None of the employees of the
Company has drawn remuneration exceeding Rs.5 lakhs per month or Rs.60
lakhs per annum during the year. As such the information required
pursuant to Sec. 217(2A) of the Companies Act, 1956 is not applicable
to the Company.
(i) Directors'' Responsibility Statement as per section 217(2AA) of
the Companies Act, 1956 Responsibility in relation to financial
The financial statements have been prepared in conformity, in all
material respects, with the applicable Accounting Standards in a
consistent manner and supported by reasonable and prudent judgments and
estimates. The Directors believe that the financial statements reflect
true and fair view of the financial position as on 31.3.2012 and of the
results of operations for the year ended 31.3.2012.
The financial statements have been audited by M/s M.S. Krishnaswami &
Rajan, Chartered Accountants in accordance with generally accepted
auditing standards, which include an assessment of the system of
internal controls and tests of transactions to the extent considered
necessary by them to support their opinion. .
in the opinion of the Directors, Company will be in a position to carry
on its existing spinning of yarn business and accordingly it is
considered appropriate to prepare the financial statements on the basis
of going concern.
Maintenance of accounting records and Internal controls Company has
taken proper and sufficient care for maintenance of adequate accounting
records as required by various Statutes.
Directors have overall responsibility for the Company''s internal
control system, which is designed to provide a reasonable assurance for
safeguarding of assets, reliability of financial records and for
preventing and detecting fraud and other irregularities.
The internal audit function, encompasses the examination and evaluation
of the adequacy and effectiveness of the system of internal control and
quality of performance in carrying out assigned responsibilities.
Internal Audit Department interacts with all levels of management and
the Statutory Auditors, and reports significant issues to the Audit
Committee of the Board.
Audit Committee supervises the financial reporting process through
review of accounting and reporting practices, financial and accounting
controls and financial statements. Audit Committee also periodically
interacts with internal and statutory auditors to ensure quality and
veracity of Company''s accounts.
Internal Auditors, Audit Committee and Statutory Auditors have full and
free access to all the information and records as considered necessary
to carry out their responsibilities. All the issues raised by them have
been suitably acted upon and followed up.
Your directors thank the Company''s Customers, Vendors and Investors for
their continued support during the year. Your directors place on record
their appreciation for the contribution made by the employees at all
levels. Your Company''s consistent growth has been made possible by the
hard work, solidarity, cooperation and support of the management team.
Your directors thank State Bank of India, Karnataka Bank Limited, IDBI
Bank Limited, Axis Bank Limited, Canara Bank, Indian Overseas Bank and
Central Bank of India, Government of Tamil Nadu and other government
agencies for their support, and look forward to their continued support
For and on behalf of the Board
Salem S. Devarajan
May 30,2012 Chairman and Managing Director