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Lakshmi Mills Company Ltd.

BSE: 502958 | NSE: LAKSHMIMIL | Series: NA | ISIN: INE938C01019 | SECTOR: Textiles - Composite Mills

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Sep 16, 16:00
3415.05 -14.35 (-0.42%)
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AVERAGE VOLUME
5-Day
80
10-Day
94
30-Day
189
41
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    3429.40

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    3450.00

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    0.00 (0)

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NSE Live

Jan 29, 15:40
2356.45 0.00 (0.00%)
Volume
No Data Available
127
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    2356.45

  • Open Price

    2365.00

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Lakshmi Mills Company is not traded on NSE in the last 30 days

Annual Report

For Year :
2018 2017 2016 2015 2014 2013 2012 2011 2010

Director’s Report

The Directors have pleasure in presenting the Ninety Seventh (97) Annual Report together with the Audited Accounts of the Company for the year ended 31st March 2007. Working Results 31.3.2007 31.3.2006 No. of days worked 356 355 (Rs. in Lakhs) SALES Domestic 13130.01 14071.66 Export 1034.23 992.84 14164.24 15064.50 Processing Receipts - 23.66 Other Income 860.05 375.14 Increase/(Decrease) in Stocks 681.42 (176.11) 15705.71 15287.19 GROSS PROFIT 1630.43 1599.19 Less : Depreciation 628.48 559.13 Interest 337.37 965.85 298.97 858.10 Profit before Tax 664.58 741.09 Less : Taxation Current Tax (MAT) 29.00 45.00 Deferred Tax (Net) 60.64 37.94 Fringe Benefit Tax 17.15 106.79 15.67 98.61 NET PROFIT 557.79 642.48 Add : Transfer from Investment Allowance Reserve 4.25 0.00 Add : Balance of Profit brought forward from previous year 837.07 413.55 Available for appropriation 1399.11 1056.03 Appropriation General Reserve 989.20 100.00 Proposed Dividend 83.47 104.33 Corporate Tax on Dividend 14.19 14.63 Balance carried forward 312.25 837.07 1399.11 1056.03 OPERATIONS The Company is operating around 1.54 lakhs Spindles, 672 Rotors and 245 Looms in three locations. During the year, the Company achieved a net sales of Rs.141.64 crore. There was drop in sale by around Rs.9 crore due to drop in production in Palladam unit on account of modernizing the machines and also due to very sluggish market conditions during the last quarter of the year. CURRENT INDUSTRIAL TREND Due to appreciation of rupee vis-a-vis dollar, export realization has dropped considerably. We are not competitive enough in exports. Drop in exports has resulted in domestic market being flooded with Yarn and Fabrics. Prices have dropped down considerably and that there is huge accumulation of stocks. Industry is looking to the Government for support to overcome the present crisis. FUTURE PROSPECTS The first phase of modernization of 20160 spindles in Palladam unit has been completed. The second phase of modernization of 21888 spindles in Palladam unit is expected to be completed by the end of December 2007 and that the entire 42048 spindles will fully function from 1.1.2008. Till such time, there will be disturbances in the capacity utilisation in Palladam unit. Your Company had entered into an agreement for the purchase of power at a cost below the TNEB rate and that the power supply has commenced from the last quarter of the current year. We will achieve savings in power cost in 2007-2008. Steps had already been taken to rationalize the work force and that substantial progress is expected in 2007-08. The Company has made very satisfactory progress in the marketing of Micro Modal / Tencel yarns and that there is good demand for the products. The marketing of TYCHE LIFE garments has been slow and is now improving both in domestic and the export market. Your Company has entered into an agreement with M/s. Noble Fiber Technologies, USA for the production and marketing of X-Static yarn as well as fabrics. Your Company is one of the few units which had been licensed to import, manufacture and market X-static yarn. Quality of yarn has already been approved and that orders for export of X-static yarn are in the pipe line. Besides, Bedlinen fabrics and hospital apparels from out of X-Static yarn has been developed and that approval of quality is awaited. Fabrics produced out of X-static yarn are odour free and have anti-bacterial effect and are suitable for hospital industry. There are good prospects for marketing X-static yarn and X-static fabrics in the second half of the current financial year. OUTLOOK Though the removal of quota has thrown open the market for global trade without restriction, yet our competitiveness in prices appears to be a serious stumbling block in our progress. Our manufacturing cost continues to be high due to high power cost and low productivity in labour. Serious steps are warranted in this direction. The industry is feeling the impact of capacity building without adequate marketing strategy. High quality yarn as well as fabrics are available but at a cost which is not competitive in the international market. Very tough challenges are ahead for the Indian Textile Industry in the next couple of years. Only efficient Units could play effectively in the industry beyond 2010. DIVIDEND Your Directors have recommended a Dividend of 12% for the year subject to the approval of the Banks and Financial Institutions. DIRECTORS In accordance with the Companies Act 1956, and the Articles of Association, Sri V. Jagannathan, Sri. V.S. Velayutham and Sri. Satish Ajmera retire by rotation at the ensuing Annual General Meeting and being eligible, offer themselves for re-appointment. Sri. K. Sundarams tenure of appointment as Chairman and Managing Director expires on 31.03.2008. Resolution for his re-appointment as Chairman and Managing Director is proposed at this Annual General Meeting. DIRECTORS RESPONSIBILITY STATEMENT On the basis of the information furnished by the Company Executives and the Auditors, the Directors state that : i. In the preparation of Profit and Loss Account for the period ended 31 st March 2007 and the Balance Sheet as on that date all the applicable accounting standards have been followed. ii. Accounting Policies, that are reasonable and prudent, have been selected and applied consistently 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 the profit of the Company for the period ended 31st March 2007. iii. The accounting records in accordance with the provisions of the Companies Act, 1956 and for safeguarding the assets of the Company as also for preventing and detecting fraud and other irregularities, have been properly maintained and iv. The Profit and Loss Account and Balance Sheet have been prepared on a going concern basis. CORPORATE GOVERNANCE Pursuant to clause 49 of the Listing Agreement with the Stock Exchanges, Management Discussion and Analysis Report, Report on Corporate Governance and Auditors Certificate regarding compliance of conditions of Corporate Governance are made part of the Annual Report. FIXED DEPOSIT There is a disputed claim since 11.09.2000 on the deposit amount of Rs. 15,05,0007- between the legal heirs and is pending before the Principal District Munsif Court, Coimbatore. Further an amount of Rs.5,000/- remains unclaimed. AUDITORS The Companys Auditors, M/s. Subbachar & Srinivasan and M/s. Fraser & Ross are to retire at the ensuing Annual General Meeting and are eligible for re-appointment. GENERAL The Companys Assets have been adequately insured. The particulars required to be furnished under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules 1988 are set out separately and form part of this Report. During the year under review, there was no employee drawing remuneration in excess of the amount prescribed under section 217 (2A) of the Companies Act, 1956. ACKNOWLEDGEMENT The Board acknowledges the continued assistance from Industrial Development Bank of India, Bankers, Cotton, Yarn and Cloth Dealers of the Company, Shareholders and Depositors and appreciate the valuable services rendered by the employees at all levels. May the Goddess Lakshmi continue to shower her choicest Blessings for the prosperity of the Company in the years to come. By Order of the Board For THE LAKSHMI MILLS CO. LTD., Coimbatore K. SUNDARAM 30th July 2007 Chairman

Director’s Report