dtc india ltd share price Directors report

DIRECTORS REPORT

Dear Members,

Your Directors are pleased to submit their 150th Annual Report together with the Audited Statement of Accounts of the Company for the Financial Year ended 31st. March, 2014.

1. WORKING:

a. CULTIVATION: During the year under review your Company was able to harvest 1.10 lac kgs. of Organic Green Leaves from the Garden as against 0.97 lac kgs. in the previous year.

b. PRODUCTION: In comparison to previous year, your Company has manufactured 26,300 kgs. of tea as against 24,588 kgs. of previous year, as compared to last year, the production from your Company Gardens shows a increase of 1,712 kgs. Made Tea.

During the year the average recovery percentage of Tea manufactured out of Green Leaf comes to 24% as against 25.29% in the previous year. c. As reported earlier the Indian Tea Industry has come out from recessionary trend and there is good demand for quality teas at higher rates, but demand for our type of secondary teas continues to be poor this year also.

d. PROFIT:

The Profit for the year as per Profit & Loss Account is as follows:-

Profit for the year before depreciation	Rs. 10,85,323
Less: Depreciation	Rs. 66,751
Loss before Taxation	Rs. 10,18,572
Less:Provision for Taxation
Add:Deferred Tax Asset (net)	Rs. 3,69 4
Net Profit	Rs. 10,22,266

2. DIVIDEND: The Directors regret their inability to declare any Dividend due to carried forward Losses of the Company.

3. DEVELOPMENT PLAN: The Companys Development Programme remains standstill due to the prevailing financial crunch. Your Tea Estates continue producing Organic Green teas and the Companys Organic Production Certificate will be renewed shortly, for a year by Control Union Certifications (Skal), an International Organisation for Organic Production Method. Fast growing Shade Trees continue to be planted in Tea Areas to get proper Organic mulching material from defoliation of such trees, as no chemical is applied to maintain the Organic status of teas.

4. PERSONNEL: The Company maintained cordial relations with all the categories of their employees and wish to record their appreciation for their co-operation extended.

As reported last year as per Labour Department of the State Government Notification No. 361(1 )/VIII/13-228-shram/2001 dated 06-03-2013 the minimum wages of the workers were increased by 41.96%, which also resulted in an increase in the wages and provision for staff benefits during the year under review.

5 DIRECTORS:

This year Shri Aseem KalJa (DIN:03048820) who retires at the ensuing Annual General Meeting and is eligible for reappointment.

6 OTHER INFORMATION: a. PARTICULARS OF EMPLOYMENT: The particulars of employment required under Section 217(2A)(b)(ii) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rule, 1975 as amended, are not applicable, as no employee comes in the purview. b. DISCLOSURE OF PARTICULARS WITH REGARD TO CONSERVATION OF ENERGY:

The information required under Section 217 (1) (E)of the Companies Act, 1956 read with Companies disclosure of particulars in the report of the Board of Directors Rule, 1988 with regard to these matters is appended hereto in Annexure A and forms part of this report.

7. CORPORATE GOVERNANCE:

As the Paid-Up Capital of the Company is less than Rs.3 crores, Corporate Governance clause of the Listing Agreement is not applicable on the Company.

8 DIRECTORS RESPONSIBILITY STATEMENT

As required under Section 217 of the Companies Act, the Directors hereby confirm that: a. In the preparation of the Annual Accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures. b. The Directors had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent 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 of the Profit/Loss of the Company for that period. c. The Directors had taken proper and sufficient care for the maintenance of adequate accounting recoras in accordance with the provisions of this Act for safeguarding the assets 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. e. None of the Directors are interested in the companies in which investments are held.

9. ADEQUACY OF INTERNALCONTROLS:

The Company has a proper and adequate system of internal controls to ensure that all assets are safeguarded and protected against loss from unauthorised use or disposition and that the transactions are authorised, recorded and reported correctly.

The Company has an extensive system of internal controls which ensures optimal utilisation and production of resources, IT security, accurate reporting of financial transactions and compliance with applicable laws and regulations as also internal policies and procedures.

The internal control system is supplemented by extensive audits, regular reviews by management and well documented policies andguidelines to ensure reliability of financial and all other records to prepare financial statements and other data.

The Company has successfully implemented SAP/ R3financial and business management systems. These systems facilitate effective checks and controls as well as tight monitoring on a continuous basis.

10. AUDITORS: The Companys "Auditors M/s. P. N. Bahri & Co., Chartered Accountants, (Registration No.001091C) hold office upto the conclusion of the ensuing Annual General Meeting. The Company has received the requisite certificate from them pursuant to Section 224(1 B) of the Companies Act, 1956, confirmingtheir eligibility for re-appointment as Statutory Auditors of the Company.

11. AUDITORS REPORT: The Notes to the Accounts referred to in the Auditors Report are self explanatory and therefore, do not require further comments.

12. ACKNOWLEDGEMENT: The Board acknowledges with gratitude, the co-operation and assistance provided to your Company by its Bankers, Financial Institutions, and Government as well as Non-Government agencies. The Directors thanks the customers, clients, vendors and other business associates for their continued support. The relationship with the employees and workers remained cordial during the period and your Directors wish to place on record their appreciation for the contribution made bythe employees andworkers at all levels.

By order of the Board of Directors

Midford House,	. Singh O.K
Dehra Dun.	(Whole Time Director)
Dated: 30th. May, 2014	(DIN:06411142)