Your Directors have pleasure in presenting their 27th Annual Report togetherwith the Audited Accounts and Cash Flow Statements for the year ended 31stMarch 2011.
The financial results for the year ended 31st March 2011 are summarizedbelow.
| || |
(Rs. in Lacs)
|Particulars ||2010-2011 ||2009-2010 |
|Income from operations ||3078.49 ||3005.09 |
|Gross Profit ||156.74 ||169.17 |
|Interest ||101.49 ||118.73 |
|Depreciation ||30.09 ||24.92 |
|Profit/(Loss) before taxation ||25.15 ||25.52 |
|Deferred Tax(Liability)/Asset ||3.75 ||27.32 |
|Current tax ||(4.66) ||(3.94) |
|Net Profit /(Loss) After Taxation ||24.24 ||48.90 |
|Balance brought forward ||100.01 ||51.11 |
|Balance carried to Balance Sheet ||124.25 ||100.01 |
The overall performance of the company in terms of production, sales has been higher inthe year under report in comparison with the previous year. During the year the companyhas recorded production of 2788 MTs (Previous year 2652 MTs), and has recorded increase incapacity utilization to 91.02% (previous year 86.58%), however the volume of export saleshas been low compared to previous year.
The company recorded marginal increase in income from operations Rs 3078.49 lakhs asagainst Rs 3005.09 lakhs in the previous year. The company has exported quantity of 63.38MTs of its products valued at Rs.64.48 lakhs during the year under report as against150.54MTs valued Rs.144.30 lakhs in the previous year.The company has focused mainly onthe domestic market sales during the year hence recorded lower volumes of exports. Therealiazation on sales has been low during the year under report due to recession and priceunder cutting due to steep competition. This is mainly due to slow down in theconstruction and infrastructure activities and general recession in the economy. Inspiteof increase in sales turnover the net profits have been low. The company has recorded netprofit of Rs 24.24 lakhs as against Rs.48.90 lakhs in the previous year. The company hascontinued its efforts to reduce costs wherever possible to improve its overallperformance. The company is hopeful of achieving improved performance in the coming years.
The Economy is showing improvement especially in the infrastructure and constructionactivities.The Government is making efforts to boost the construction activity by takingup various infrastructure projects and announcing various schemes to provide for housingto the economically weaker sections. Such actions would boost the construction activityand thereby the demand for packing would also increase. The company mainly caters to thepacking requirements of the cement and fertilizer industries whose growth has beenaffected due to present recessionary market conditions. The company would focus on theexport front once the economies in Europe and America stabilize and show improvement.Thecompany has drawn strategic plans to strike balance between the domestic and export marketto ensure improvement in performance in future.
Disclosure as per Listing Agreement : Clause 43 :
The companys shares are listed on the Bombay Stock Exchange Ltd., P.J. Towers,Dalal Street, Fort, Mumbai. It is further informed that the listing fees for the year2011-2012 has been paid to the exchange.
The company has implemented the Corporate Governance Code during the year under report.A detailed report is enclosed.
Directors Responsibility Statement
In terms of the provisions of Section 217 (2AA) of the Companies Act, 1956 it is statedthat :
(a) in the preparation of annual accounts, the applicable accounting standards havebeen followed along with proper explanation relating to material departures.
(b) the Directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company at the end of the financial year and ofthe profit of the company for that period.
(c) the Directors have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the company and for preventing and detecting fraud and other irregularities.
(d) the Directors have prepared the annual accounts on a going concern basis.
CRISIL RATING :
Your company has been accredited with B/ Stable rating for Cash Credit Limits and P4Rating for Non Fund Based Borrowing by CRISIL. The Rating P4 denotes the degree of safetyregarding timely payment on the instrument is minimal and is likely to be adverselyaffected by short-term adversity or less favourable conditions.
Energy, Technology and Foreign Exchange
Additional information on conservation of Energy, Technology Absorption and ForeignExchange Earnings and Outgo as required to be disclosed in terms of section 217(1)(e) ofthe Companies Act, 1956 as amended by the Companies (Disclosure of particulars in thereport of the Board of Directors) Rules, 1988 is annexed hereto and forms part of thisreport.
Particulars of Employees
There is no employee in the company coming under the provisions of section 217(2A) ofthe Companies Act, 1956 read with Companies (Particulars of Employees) Rules 1975 asamended.
M/s Bhaskara Rao & Co. Chartered Accountants, the Statutory Auditors of the companyretire at the conclusion of the ensuing Annual General Meeting and being eligible offerthemselves for re-appointment.
Pursuant to the provisions of Sections 255 and 256 of the Companies Act, 1956 Sri Gopaland Sri N V S Rao Directors of the company retire by rotation at the ensuing AnnualGeneral Meeting and being eligible offer themselves for re-appointment.
The term of Sri D R S P Raju as Managing Director expires on 30.09.2011. It is proposedto re-appoint Sri D R S P Raju as Managing Director for further period of five years onthe terms mentioned in the notice.
The term of Sri G V S Raju as Director (Commercial) expires on 30.09.2011. It isproposed to re-appoint Sri G V S Raju as Director (Commercial) for further period of threeyears on the terms mentioned in the notice.
Mr K Srikrishna Raju ceased to be Director w.e.f 10.07.2010 consequent upon hisresignation.
Secretarial Compliance Certificate
Secretarial Compliance Certificate in terms of section 383A of the Companies Act, 1956is attached and forms part of the report.
The Board expresses its grateful thanks to the State Bank of India, State Bank ofHyderabad, various departments of the State and Central Government, customers, vendors andshareholders for their valuable support to the company, staff and employees.
| ||For and on behalf of the Board |
|G V S Raju ||D R S P Raju |
|Director (Commercial) ||Managing Director |
|Place : Hyderabad || |
|Date : 27.05.2011 || |