Election 2014
SENSEX NIFTY
Vardhman Textiles Directors Report, Vardhman Text Reports by Directors
YOU ARE HERE > MONEYCONTROL > MARKETS > TEXTILES - SPINNING - COTTON BLENDED > DIRECTORS REPORT - Vardhman Textiles
Vardhman Textiles
BSE: 502986|NSE: VTL|ISIN: INE825A01012|SECTOR: Textiles - Spinning - Cotton Blended
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
, 16:01
338.50
-3.8 (-1.11%)
VOLUME 2,608
LIVE
NSE
, 16:01
338.45
-4.2 (-1.23%)
VOLUME 9,492
Download Annual Report PDF Format 2013 | 2012 | 2011 | 2010
Directors Report Year End : Mar '13    Mar 12
Dear Members,
 
 The Directors of your Company have pleasure in presenting their 40th
 Annual Report on the affairs of the Company together with the Audited
 Accounts of the Company for the year ended 31st March, 2013.
 
 1.  FINANCIAL RESULTS:
 
 The Financial Results for the year are as under :-      (Rs. in Crore)
 
 PARTICULARS                                   2012-2013      2011-2012
 
 Revenue from operations (Net)                  4,159.71       3,918.00
 
 Profit before Depreciation, Interest 
 & Tax (PBDIT)                                    883.05         553.35
 
 Interest and Financial expenses                  174.35         173.22
 
 Profit before Depreciation and Tax (PBDT)        708.70         380.13
 
 Depreciation                                     253.86         234.67
 
 Profit before Tax (PBT)                          454.84         145.46
 
 Provision for Tax - Current (Including 
 tax adjustment of previous year)                 106.82          29.75
 
 - Deferred Tax (Net of Adjustment)                24.29           6.04
 
 Tax adjustment of previous years                      -         (0.002)
 
 Profit for the period after tax (PAT)            323.73         109.67 
 
 Add: Corporate Dividend Tax written back           1.21           1.38 
 
 Balance brought forward                          306.64         243.88 
 
 Balance available for appropriation              631.58         354.93
 
 Appropriations:
 
 Proposed dividend on:
 
 -Equity shares                                    38.19          28.64
 
 -Corporate Dividend Tax                            6.49           4.65
 
 Transfer to General Reserve                       35.00          15.00
 
 Closing Balance of surplus i.e. Balance 
 in Statement of Profit & Loss                    551.90         306.64 
 
 Earnings per share (Rs.)
 
 - Basic                                           50.86          17.23
 
 - Diluted                                         50.86          17.23
 
 Dividend per share (Rs.)                           6.00           4.50
 
 2.  SUBSIDIARIES:
 
 The Company has following subsidiary companies, the details of
 financial performance of which are given below:-
 
 VMT Spinning Company Limited (VMT)
 
 The business of this subsidiary of the Company which is a Joint Venture
 with Marubeni Corporation, Marubeni HongKong and South China Limited
 and Toho Tenax Limited of Japan has improved as compared to last year.
 The Revenue from operations of VMT has increased to Rs. 147.45 crore
 from Rs. 144.51 crore in the last year. The Company earned a net profit
 of Rs. 5.45 crore as against net loss of Rs. 1.87 crore in the previous
 year due to better margins available.  Out of the total present paid-up
 capital of Rs. 20.70 crore, your Company holds 73.33 %. The Board of
 Directors of VMT has recommended a dividend @ 10% on its paid up equity
 share capital for the year 2012-13.
 
 VTL Investments Limited (VTL)
 
 This 100% subsidiary of your Company is engaged with the business of
 investments in shares, bonds, debentures etc. The earnings of the
 company mainly comes from the dividend/interest earned on its
 investments and profits made on sale of investments. During the year,
 VTL has earned a net profit of Rs. 2.06 crore.
 
 Vardhman Acrylics Limited (VAL)
 
 Vardhman Acrylics Limited (VAL) is another subsidiary of the Company
 which is engaged in the business of manufacturing of Acrylic Fibre. The
 Company held 67.37% shares in VAL as at the end of the year under
 review. During the Financial Year 2012-13, VAL recorded Revenue from
 operations of Rs. 436.49 crore (including Trading of goods of Rs.
 134.72 crore) as against Rs. 390.14 crore (Including Trading of goods
 Rs. 88.04 crore) in corresponding period last year. The net profit for
 the year has decreased marginally to Rs. 24.40 crore from Rs. 24.49
 crore in the previous year.  During the year, VAL bought back and
 extinguished 13,906,160 of its Equity Shares of Rs. 10/- each out of
 maximum of 20,000,000 Equity shares as approved by its Board of
 Directors.
 
 Vardhman Yarns & Threads Limited (VYTL)
 
 This subsidiary of the Company, a Joint Venture with American & Efird
 Inc. (A&E), is engaged in the business of Threads Manufacturing and
 Distribution. VYTL is a joint venture partnership of 51:49 with A&E,
 which is the second largest player in Threads Manufacturing and
 Distribution across the world. During the year under review, the
 Revenue from Operations were Rs. 540.54 crore as against Rs. 464.69
 crore in the previous year registering an increase of 16.32%.  The Net
 Profit for the year was Rs. 43.15 crore as compared to Rs. 39.70 crore
 during last year recording an increase of 8.69%. This has been possible
 because of increase in production and sales revenue in all the
 verticals i.e.  Consumers, Industrial and Specialty products. The Board
 of Directors of VYTL has recommended a dividend @ 30%, on it''s paid up
 equity share capital, for the year 2012-13.
 
 Vardhman Nisshinbo Garments Company Limited (VNGL)
 
 This subsidiary of the Company which is a Joint Venture partnership of
 51:49 with Nisshinbo Textiles Inc., Japan for manufacturing world class
 men''s shirts. During the year, the Revenue from Operations of VNGL was
 Rs. 17.66 crore as compared to Rs. 7.43 crore in the previous year.
 VNGL incurred a net loss of Rs. 4.86 crore as against Rs. 4.24 crore in
 the previous year.  This is on account of lower productivity, labour
 turnover and lack of skilled workers. VNGL is expected to stabilize its
 business operations during the next financial year.
 
 3.  DIVIDEND:
 
 The Board of Directors of your Company has recommended dividend of Rs.
 6.00/- per share on the Fully Paid-up Equity Shares of the Company.
 
 4.  DIRECTORS:
 
 Mr. A.K. Purwar and Mr. D.L. Sharma, Directors of the Company, retire
 by rotation at the conclusion of the forthcoming Annual General
 Meeting, pursuant to the provisions of Article 108 of the Articles of
 Association of the Company and being eligible, offer themselves for
 re-appointment. The Board recommended their appointment for the
 consideration of the members of the Company at the ensuing Annual
 General Meeting.
 
 5.  CORPORATE GOVERNANCE:
 
 The Company has in place a system of Corporate Governance. A separate
 report on Corporate Governance forming part of the Annual Report of the
 Company is annexed hereto. A certificate from the Auditors of the
 Company regarding compliance of conditions of Corporate Governance as
 stipulated under Corporate Governance Clause of the Listing
 Agreement(s) is annexed to the report on Corporate Governance.
 
 6.  AUDITORS:
 
 M/s. S.C. Vasudeva & Company, Chartered Accountants, New Delhi,
 Auditors of the Company, retire at the conclusion of the forthcoming
 Annual General Meeting and being eligible, offer themselves for
 re-appointment.
 
 7.  AUDITORS'' REPORT:
 
 The Statutory Auditors of the Company have submitted Auditors'' Report
 on the accounts of the Company for the accounting year ended March 31,
 2013. This Auditors'' Report is self -explanatory and requires no
 comments.
 
 8.  COST AUDITORS:
 
 The Board of Directors has appointed M/s. Ramanath Iyer & Company, Cost
 Accountants, New Delhi as the Cost Auditors of the Company under
 Section 233B of the Companies Act, 1956 read with Cost Audit Rules,
 2011 for the year 2013- 14. The Cost Auditors'' Report for the financial
 year 2012-13 will be forwarded to the Central Government as required
 under law.
 
 9.  STATEMENT OF PARTICULARS OF EMPLOYEES:
 
 A Statement of Particulars of Employees pursuant to the provisions of
 Section 217(2A) of the Companies Act, 1956 read with Companies
 (Particulars of Employees) Rules, 1975 including amendments thereon is
 enclosed and forms part of this report.
 
 10.  CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
 EARNINGS AND OUTGO:
 
 Energy conservation continues to be an area of major emphasis in your
 Company. Efforts are made to optimize the energy cost while carrying
 out the manufacturing operations. Particulars with respect to
 conservation of energy and other areas as per Section 217(1)(e) of the
 Companies Act, 1956, read with the Companies (Disclosure of Particulars
 in the Report of Board of Directors) Rules, 1988, are annexed hereto
 and form part of this report.
 
 11.  DIRECTORS'' RESPONSIBILITY STATEMENT:
 
 Pursuant to Section-217 (2AA) of the Companies Act, 1956, the Directors
 confirm that in the preparation of the annual accounts, the applicable
 accounting standards have been followed;
 
 a.  appropriate accounting policies have been selected and applied
 consistently, and have 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 as at 31st March, 2013 and of the profit of the Company
 for the year ended on 31st March, 2013;
 
 b.  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; and
 
 c.  the annual accounts have been prepared on a going concern basis.
 
 12.  ACKNOWLEDGEMENT:
 
 Your Directors are pleased to place on record their sincere gratitude
 to the Government, Financial Institutions, Bankers and Business
 Constituents for their continued and valuable co-operation and support
 to the Company. They also take this opportunity to express their deep
 appreciation for the devoted and sincere services rendered by the
 employees at all levels of the operations of the Company during the
 year.
 
                                    FOR AND ON BEHALF OF THE BOARD 
 
                                                       (S.P. OSWAL)
 
 PLACE : GURGAON                                        CHAIRMAN &
 
 DATED : 28th May, 2013                          MANAGING DIRECTOR
Source : Dion Global Solutions Limited
Quick Links for vardhmantextiles
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.