Cabot India Ltd

BSE: 506700 | NSE: CABOTINDIA | ISIN: INE144B01016 
Market Cap: [Rs.Cr.] 83.03 | Face Value: [Rs.] 10
Industry: Chemicals

Director's Report
Director Report

To the Members

Your Directors' hereby present the Fifty-first Annual Report together with the AuditedAccounts of the Company for the year ended March 31, 2014.

FINANCIAL RESULTS ;
Particulars (Rs. in Lacs)
Year ended on March 31, 2014 Year ended on March 31, 2013
Sales 1,371.84 1,754.95
Other Income (including non-recurring income) 0.50 2.76
Gross Profit before Interest & Depreciation from continuing operations 315.23 834.76
Less : Depreciation 44.76 22.62
Financial Charges 115.17 191.99
Profit from Continuing operations 155.31 620.14
Loss from Discontinuing operations (87.50) (115.34)
Profits before Tax 67.81 504.80
Less ; Provision for Tax (including earlier years and Deferred Tax) 21.81
Profit after Tax 67.81 482.99
Loss brought forward (18,383.64) (18,866.63)
Loss carried to Balance Sheet (18,315.83) (18,383.64)

During the year, the Company's activity focused on the sales, marketing and technicalsupport of Cabot Corporation's Specialty Blacks, Masterbatch product lines for the Indiansub-continent market. The Company continued to import all product lines from overseasaffiliates to service some key segments of the market. In addition to the aforementionedproduct lines, the Company consolidated activities associated with the sales, marketingand technical support of Cabot Corporation's Activated Carbon product line, a businessCabot acquired in August of 2012.

The country continues to maintain strong market segments that value high quality CarbonBlack and Masterbatch products. These segments include IR inks and plastics. The recentlyconsolidated Activated Carbon product line serves a variety of market segments, whichinclude water & air purification, food & beverage and pharmaceuticals.

The Company expects competition in the market to remain intense with demand continuingto be strong in each of the market segments served. The addition of the Activated Carbonproduct line has diversified end application markets and provides the Company with abroader offering of high quality specialty chemical products.

The Company believes it will continue to build on its capabilities to best serveCustomers in the India market providing the highest levels of service and differentiatedspecialty chemicals. This should position the Company to meet the challenges of the Indianmarket.

Considering the accumulated losses of the earlier years of the Company, no dividend isrecommended for the financial year ended on March 31, 2014.

As on date, Cabot Corporation, USA through its subsidiary companies owns 97.80% of thepaid-up capital of the Company.

In accordance with the Articles of Association of the Company and in view of theprovisions of Companies Act, 2013, Mr. Fei Deng, Director of the Company, will retire byrotation at the ensuing Annual General Meeting and being eligible seeks re-appointment.

The Audit Committee assists the Board in its responsibility for overseeing the qualityof the accounting, auditing and reporting practices of the Company and its complianceswith the legal and regulatory requirements. In particular it performs the followingfunctions:

• Overseeing of the Company's financial reporting process and disclosure offinancial information and financial risk management policies.

• Review of financial statements ensuring compliance with regulatory guidelinesbefore submission to the Board of Directors.

• Review of adequacy of internal control systems and discussions of significantinternal audit findings including internal control and weakness, if any.

• Recommend appointment, removal of statutory auditors and payment of fees to themand appointment of CFO/ Whole-time Finance Director.

• Review areas of operation of internal audit team and their performance.

• Review the statement of significant related party transactions.

Present composition of the committee:

Sr. No. Name of the member Position
1. Mr. C. R. Dua Member
2. Mr. Aled Rees Member
3. Mr. Nirmalya Maity Member
4. Mr. Vinod Joseph (Alternate Director to Mr. Nirmalya Maity) Member

In compliance of Section 217(2AA) of the Companies Act, 1956, as amended by theCompanies (Amendment) Act, 2000, the Directors of the Company confirm that:

• the applicable accounting standards have been followed in the preparation offinal accounts and that there are no material departures;

• such accounting policies have been selected and applied consistently and suchjudgments and estimates made are reasonable and prudent so as to give a true and fair viewof the state of affairs of the Company as at March 31, 2014 and the Profit of the Companyfor the year ended on that date;

• proper and sufficient care has been taken for the maintenance of adequateaccounting records in accordance with the provision of the Companies Act, for safeguardingthe assets of the Company and for preventing and detecting fraud and other irregularities;

• the accounts have been prepared on a going concern basis.

The Company has not accepted/renewed Fixed Deposits during the year under review.

SAFETY. HEAO'H & ENVIRONMENT :

Safety, Health and Environmental is of the highest importance to the Company and is atthe centre of every day operations. The Cabot Safety Health and Environmental (SH&E)Standards are applicable across Cabot facilities worldwide and its SH&E program coversall employees and contractors working at every site.

AUDITORS :

M/s. Deloitte, Haskins & Sells LLP, Chartered Accountants, Mumbai, retire at theensuing Annual General Meeting and being eligible, offer themselves for re-appointment.They have submitted a certificate of their eligibility for re-appointment under Section139 of the Companies Act, 2013.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO :

Information under Section 217 (1) (e) of the Companies Act, 1956, read with theCompanies (Disclosure of particulars in the Report of the Board of Directors) Rule, 1988for the period ended March 31, 2014.

(A) Conservation of Energy:

The Company is taking various initiatives to reduce the consumption of energy, such asuse of energy saving equipments etc. Company is constantly engaged in interaction withexternal agencies/partners for exposure to latest products/designs, techniques, processesetc.

(B) Research & Development:

Your Company has undertaken certain measures to undertake the research and developmentactivities that are essential to nature of business of the Company.

(C) Technology Absorption:

Your Company has embarked on steps under a predefined strategy for technologicalabsorption for the development of business of Company.

(D) Foreign Exchange Earnings & Outgo:

Particulars For the year ended on 31st March, 2014 (Amount in Rs.) For the year ended on 31st March, 2013 (Amount in Rs.)
Earnings in Foreign Currency 12,29,72,675 15,99,05,453
Expenditure in Foreign Currency 1,96,210 3,90,016

HUMAN RESOURCE AND PARTICULARS OF EMPLOYEES :

The human resource philosophy and strategy of your Company has been designed to attractand retain the best talent on offer. In practice it creates and nurtures work placechallenges that keep employees engaged, motivated and innovative.

Information as per Section 217(2A) of the Companies Act, 1956 read with Companies(Particulars of Employees) Rules, 1975 forms part of this report.

ACKNOWLEDGEMENT :

Your Directors would like to express their appreciation for the assistance andco-operation received from the shareholders, customers, dealers, suppliers, banks,financial institutions, Government authorities, Export Promotion council, other semiGovernment authorities and business associates at all levels during the year under review.The Directors also wish to place on record their deep appreciation for the committedservices of the staff and executives of the Company.

For and on behalf of the Board
C. R. Dua Director
Aled Rees Director
Date : October 20, 2014

ANNEXURE TO DIRECTORS' REPORT

Particulars as required under section 217(2A) of the Companies Act, 1956 read with theCompanies (Particulars of Employees) Rules, 1975, and forming part of the Directors'Report for the year ended 31 st March, 2014.

Name Age (Yrs.) Designation Remuneration Received in Rs. Qualification Date of Commencement of Employment Last Employment Total Experience (Yrs.)
Sriram Srinivasan 48 President 2,28,07,346* MS, Chemical Engineering BE, Chemical Engineering September 9, 2013 Cabot Corporation 24

* Remuneration includes Salaries, Allowances, Perquisites and Contribution to ProvidentFund.

For and on behalf of the Board
C. R. Dua Director
Aled Rees Director
Date : October 20, 2014
   
India Infoline Research
No Related Research Found
Related News
No Related Research Found
Futures & Options Quote
Future Data Not present
Key Information

Key Executives:

C R Dua , Director

Aled Rees , Director

Nirmalaya Maity , Director

Fei Deng , Director


Company Head Office / Quarters:

Kesar Solitaire 12th Floor,
PlotNo 5 Sector 19 Sanpada,
Navi Mumbai,
Maharashtra-400705
Phone : Maharashtra- / Maharashtra-
Fax : Maharashtra- / Maharashtra-
E-mail :
Web :

Registrars:


 
Fund Holding
Scheme Name No. of Shares
 
Calendar
Mon Tue Wed Thu Fri Sat Sun
06 07 08 09 10 11 12