Your Directors are pleased to present the Annual Report of your Company together with the Audited Statement of Accounts and the Auditors Report for the financial year ended 31st March, 2014. The summarized financial results for the Financial Year are as under:
FINANCIAL RESULTS
Particulars | For the Year Ended | |
31st March 2014 | 31st March2013 | |
Rs. in lakhs | Rs. in lakhs | |
Profit before Interest and Depreciation | 3,116 | 4,151 |
Less: Interest | 14 | 0 |
Profit Before Depreciation | 3,102 | 4,151 |
Less: Depreciation | 627 | 668 |
Profit before Tax | 2,475 | 3,483 |
Tax | 736 | 1,212 |
Deferred Tax | 94 | -77 |
Net Profit For the Year | 1,645 | 2,348 |
Balance brought forward from | ||
Previous Year | 7,929 | 6,354 |
Balance available for Appropriation | 9,574 | 8,702 |
Appropriations: | ||
Transferred to General Reserve | 165 | 240 |
Interim Dividend Paid | 0 | 459 |
Proposed Dividend | 115 | 0 |
Dividend Tax | 19 | 74 |
Balance carried to Balance Sheet | 9,275 | 7,929 |
OPERATIONS
During the year under review, the Company achieved net sales of Rs.11,206/- Lakhs, as against Rs.11,524/- Lakhs in the previous year and made Profit Before Tax (PBT) of Rs.2,475/- Lakhs as against Rs.3,483/- Lakhs in the previous year. The fall in PBT was mainly due to the steep increase in the cost of power, coupled with the rise in the cost of other raw materials. The Company is taking all possible steps to control its manufacturing costs.
DIVIDEND
Your Directors recommend payment of Dividend of Rs.1.25 per share (25%) for the year ended 31st March, 2014, absorbing a sum of Rs.1,14,64,621/- , subject to the approval of the Members at the ensuing Annual General Meeting.
MODERNIZATION
The Company has taken up a Project for improving process technology and modernizing its Plant. A sum of Rs. 61,84,86,060/- net of Cenvat credit was incurred on the Project during the current Financial Year, out of which Rs. 5,40,12,393/- is capitalised and Rs. 56,44,73,667/- is shown in the Balance Sheet as part of Capital Work in Progress. The completion and commissioning of the Project is pending subject to the requisite regulatory clearances.
EXPANSION
The Company had proposed expansion of its existing manufacturing capacity and in this connection has filed an appeal with the National Green Tribunal for grant of the necessary NOC. The directions from the Honble Bench in this regard are awaited.
In the meantime, a Public Interest Litigation was initiated against the Company by the Puducherry Environment Protection Association (PEPA), a Non-Government Organization, before the National Green Tribunal (NGT), on the plea that the Company was carrying on its operations even after the expiry of the period of consent issued by the Puducherry Pollution Control Committee (PPCC). The PEPA obtained an ex parte Order from the NGT, restraining the Company from carrying on any construction activities and expansion of production capacity. In response, the Company objected to the baseless allegations, and placed all the attendant facts before the NGT, including the information that the Company had applied for the renewal of the consent order well in time and this application was under the active consideration of the PPCC. Therefore, the Company submitted to the NGT that the question of carrying on any activity without the Consent Order did not arise. Subsequently, upon the Company receiving the Consent Order from PPCC, the NGT was so informed and at the hearing held on the 2nd April, 2014, the ex parte Interim Stay was vacated.
FIXED DEPOSITS
During the year under review, the Company did not raise funds by way of fixed deposits from the public.
DIRECTORS
In accordance with Sections 255 and 256 of the Companies Act, 1956 and the Companys Articles of Association, the following Directors retire by rotation and, being eligible, offer themselves for re-appointment at the ensuing General Meeting.
1. Shri J. Venkataraman
2. Shri Suresh Krishnamurthi Rao
The details as required under Clause 49 of the Listing Agreement regarding the above Directors are set out in the Corporate Governance Report forming part of this Annual Report.
AUDITORS
The current Statutory Auditors of the Company, M/s Deloitte Haskins & Sells, Chartered Accountants, retire at the ensuing Annual General Meeting. They were first appointed as Statutory Auditors for the year 2005-06 and as such, the year ended 31st March, 2014 is their Ninth year as Auditors of the Company. Under the provisions of Section 139 of the Companies Act, 2013 and the Rules framed thereunder, which came into effect from 1st April, 2014, it is proposed to appoint M/s Deloitte Haskins & Sells as Auditors of the Company for one more year, that is, for the year ending 31st March, 2015. The consent of M/s Deloitte Haskins & Sells and their consent confirming that their appointment, if made, will be in accordance with the prescribed conditions, have been received by the Company. The Directors recommend the re-appointment of M/s.Deloitte Haskins & Sells as the Statutory Auditors of the Company for the year ending 31st March, 2015.
COST AUDITOR
In conformity with the directives of the Central Government, the Company has appointed Shri.A.Madhavan, Cost Accountant, Chennai, as the Cost Auditor, for the audit of cost accounts for the chemicals manufactured by the Company for the year ending 31st March 2015.
PERSONNEL
The Company has no employees, attracting the provisions of Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975.
DIRECTORS RESPONSIBILITY STATEMENT
As required under Section 217 [2AA] of the Companies Act, 1956, the Board of Directors hereby confirm:-
(i) That in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
(ii) That the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of the affairs of the Company at the end of the Financial Year and of the profit of the Company for that year;
(iii) That the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and (iv) That the Directors had prepared the Annual Accounts on a going-concern basis.
FOREIGN EXCHANGE EARNINGS AND OUTGO
Earnings: Rs. 73,13,358/-
Outgo : Rs. 1,15,23,368/-
POWER AND FUEL CONSUMPTION
Particulars | For the Year Ended | |
31st March 2014 | 31st March 2013 | |
Rs. in lakhs | Rs. in lakhs | |
1. Electricity Purchased: | ||
- Units | 9,47,03,550 | 9,94,81,672 |
- Total Amount / Rs in Lakhs. | 5,047 | 4,372 |
Rate Per Unit [Gross] Rs. | 5.33 | 4.40 |
II. Furnace Oil | ||
[A] Purchased: | ||
- Quantity [KL] | 580 | 490 |
- Total Amount / Rs in Lakhs. | 253 | 204 |
- Average Rate per KL / Rs. | 43,642 | 41,713 |
[B] Consumption: | ||
- Furnace Oil [KL] | 586 | 479 |
- Amount / Rs in Lakhs. | 255 | 200 |
- Amount per KL / Rs. | 43,485 | 41,747 |
RESEARCH AND DEVELOPMENT, TECHNOLOGY ABSORPTION AND CONSERVATION OF ENERGY
The Company has an in-house Research Development Department, where the main areas of focus are Energy Conservation, Process Upgradation and Environmental Preservation. The Ministry of Science and Technology, Department of Scientific and Industrial Research, Government of India, has recognized the Companys in-house R & D facilities, which is valid upto 31st March, 2017. The Company has a sophisticated Quality Assurance (QA) Laboratory recognised by DuPont, USA for the analysis of Chlor- Alkali brine. The Brine from various Chlor- Alkali Industries in India is being analysed at CAL-QA Laboratory.
The Company continues to take all possible steps to conserve energy in every area of its operations.
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement, the Company has been following the Corporate Governance norms prescribed by the Securities and Exchange Board of India [SEBI]. The Report on the status of the Compliance of Corporate Governance Guidelines of SEBI, together with the Auditors Certificate, is attached as an Annexure to this Annual Report.
MANAGEMENT DISCUSSION AND ANALYSIS
A Management Discussion and Analysis Report is attached in terms of Clause 49 of the Listing Agreement entered into with the Stock Exchanges and it forms part of this Annual Report.
SECRETARIAL COMPLIANCE CERTIFICATE
The Compliance Certificate issued by a Practicing Company Secretary is attached.
INDUSTRIAL RELATIONS
Industrial relations continue to remain cordial.
ACKNOWLEDGEMENT
The Directors thank all the Shareholders, customers, dealers, suppliers, bankers, financial institutions and all the other business associates for their continued support to the Company and the confidence reposed in its Management. The Directors also thank the Government authorities for their understanding and co-operation. The Directors wish to record their sincere appreciation of the significant contribution made by the employees of the Company at all levels to its profitable and successful operations.
For and on behalf of Board of Directors of | |
CHEMFAB ALKALIS LIMITED | |
Place : Chennai | Suresh Krishnamurthi Rao |
Dated : 11th April, 2014 | Chairman |
Invest wise with Expert advice
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.