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Lakshmi Mills Company Ltd.

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

BSE Live

Dec 09, 10:55
3869.00 103.25 (2.74%)
Volume
AVERAGE VOLUME
5-Day
322
10-Day
247
30-Day
517
61
  • Prev. Close

    3765.75

  • Open Price

    3762.00

  • Bid Price (Qty.)

    3781.00 (1)

  • Offer Price (Qty.)

    3869.00 (1)

NSE Live

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

    2356.45

  • Open Price

    2365.00

  • Bid Price (Qty.)

    2356.45 (1)

  • Offer Price (Qty.)

    0.00 (0)

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 Eighth (98) Annual Report together with the audited accounts of the Company for the year ended 31st March, 2008. WORKING RESULTS 31.03.2008 31.03.2007 No. of days worked 300 356 Rs. in lakhs SALES: Domestic 9280.03 13130.01 Export 797.08 1034.23 10077.11 14164.24 Other Income 403.06 860.05 Increase/(Decrease) in Stocks (735.00) 652.14 GROSS PROFIT: 9745.17 15676.43 (Loss)/Profit before tax, exceptional items & amortization (1169.57) 297.41 Add : Exceptional items 423.60 676.91 Less : VRS Expenditure amortised 274.05 309.74 (Loss)/Profit before taxation (1020.02) 664.58 Less : Taxation : MAT credit Entitlement (20.05) Current Tax (MAT) - 29.00 Deferred Tax (Net) (512.14) 60.64 Fringe Benefit Tax 11.05 (521.14) 17.15 106.79 NET (LOSS)/PROFIT: (498.88) 557.79 Add : Balance of Profit brought forward from previous year 312.25 837.07 Add : Transfer from General Reserve 227.32 Add : Transfer from Investment Allowance Reserve - 4.25 Available for appropriation 40.69 1399.11 Appropriation: General Reserve - 989.20 Proposed Dividend 34.78 83.47 Corporate Tax on Dividend 5.91 14.19 Balance Carried Forward - 312.25 40.69 1399.11 OPERATIONS: The Company is operating with around 1.43 lacs spindles, 504 Rotors and 114 looms in the three locations. Due to adverse market conditions and also due to the implementation of modernisation scheme in Palladam Unit, the spindleage has slightly come down during the year. The Company could achieve a net sales of around Rs.100 crores during the year. The drop in the sales was on account of the following:- i) Power supply from TNEB was erratic. Unscheduled power shut down was the order of the day. No planning could be done to regulate production. As a result the production suffered badly. ii) The appreciation of Rupee vis-a-vis Dollar adversely affected exports. iii) Market conditions were also very disturbing. In spite of bumper crop in cotton, prices went up in tandem with price rises in International market. Raw material costs went up compared to the previous year. On the other hand, prices of yarn had dropped considerably. Manufacturing units suffered in the process. CURRENT INDUSTRIAL TREND & FUTURE PROSPECTS: The Indian Textile Industry, particularly the Spinning Mills in Tamilnadu are going through a very bad period due to the following :- In spite of bumper cotton crop, availability of quality cotton at affordable prices is not there. Cotton prices have gone up very high making the Indian textile industry not competitive. The mills in Tamilnadu face high transport cost for buying the raw material. This is very much hurting the industry especially when the transport costs are going up due to hike in petroleum products. Power situation continues to be grim. Power is not available to the extent needed and that there were frequent interruptions affecting production and quality. Besides, the quality of power is also not good due to fluctuations in voltage. Your Company has to operate under the aforesaid conditions. Palladam Unit has completed the implementation of modernization program sanctioned under TUF. The unit will improve its production and profitability in the current financial year. The power purchase agreement entered into with Regency Power Corporation has helped the company in effecting savings in the power bill to the extent of Rs.2.30 crores during 2007-08. 235 employees opted for Voluntary Retirement Scheme during the year 2007-08. This process will be continued in the current year also. The company is making progress in the production and sale of Micro Modal / Micro Tencel yarns. Though the Company has developed yarn, fabrics and knitted garments from X-static fiber, yet much headway could not be made in commercial application. The company is endeavouring to make a breakthrough in the current year. OUTLOOK: The Indian textile industry has to be competitive in its product in the global market. With high raw material cost, high transactional costs due to transport of products, lower productivity by labour due to old labour laws, high interest rates, etc., is keeping manufacturing cost at a high level. The Indian textile industry as a whole needs appropriate support from the Government to be bailed out of the present crisis. The Indian textile industry has to become globally competitive and one has to work with that goal. The present short comings have to be addressed and a comprehensive solution has to be found in the long term interest of the industry. Governments active support is the need of the hour. DIVIDEND Your Directors have recommended a Dividend of 5 % for the year out of past reserves. DIRECTORS Sri. P. Sabanayagam has resigned his directorship in the Company on 28.07.2008. The directors place on record their appreciation and the valuable services rendered by Sri. P. Sabanayagam during his tenure. In accordance with the Companies Act, 1956, and the Articles of Association, Dr. D. Jayavarthanavelu and Justice Sri. G. Ramanujam (Retd.) retire by rotation at the ensuing Annual General Meeting and being eligible, offer themselves for re-appointment. DIRECTORS RESPONSIBILITY STATEMENT : In compliance of Section 217(2AA) of the Companies Act, 1956, the Directors state that: i. In the preparation of Profit and Loss Account for the period ended 31st March 2008 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 year ended 31st March 2008. 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. 15,05,000/- between the legal heirs and is pending before the Principal District Munsif Court at Coimbatore. No other amount remains unclaimed as on 31st March, 2008. 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 2(A) of the Companies Act, 1956. ACKNOWLEDGEMENT The Board acknowledges the continued assistance from the 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 31st July 2008 Chairman

Director’s Report