This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
1
KRISHNA INDUSTRIAL CORPORATION LIMITED
BOARD OF DIRECTORSWHOLETIME DIRECTORSDr.S.R.K.Prasad, D.Sc., (USA) - Managing Director
NON-EXECUTIVE PROMOTOR DIRECTORS:Smt.Rajeswary Ramakrishnan, B.A., - Chairman -cum - Director
NON-EXECUTIE INDEPENDENT DIRECTORS:Sri.N Prasad - Independent DirectorSri.A. Pitchiah - Independent DirectorSri.Nissar Ahmed Mecca - Independent Director
14.Members / proxy holders must bring the Attendance Slip duly filled and signed, the meeting
and hand it over at the entrance. Xerox copy / torn attendance slips will not be accepted at the
entrance of the Meeting Hall. Members are requested to bring their copy of the Annual eport to
the Meeting, as copies will not be distributed at the Meeting hall, as measure of austerity.
Corporate Members are requested to send to the Company's Registrar and Transfer Agents, a duly
certified copy of the Board Resolution authorizing their representative to attend and vote at the
AGM.
15.Members desirous of obtaining any information concerning the accounts and operations of the
Company are requested to address their queries in writing to the Secretarial Division at least Ten
days before the Meeting so that the information may be made available at the meeting.
6
16.The members are requested to register their e-mail address / any change in the already registered
e-mail address, to the Company / Registrar and Transfer Agents to enable service of documents
through electronic mode, in line with the Green Initiatives in Corporate Governance taken by the
Ministry of Corporate Affairs, allowing paperless compliance by the Companies.
17.M/s. Cameo Corporate Services Limited, 'Subramanian Building', No.1, Club House Road,
Chennai-600 002 are the Registrar and Share Transfer Agent and Depository Participants of the
Company for physical / electronic shares and all correspondences with regard to transfer of shares
etc may be addressed to them directly.
I. EXPLANATORY STATEMENT IN RESPECT OF THE SPECIAL BUSINESS PURSUANT TO
SECTION 102 (1) OF THE COMPANIES ACT, 2013.
Item No.4
Mr. N. Prasad is a Non-Executive Director of the Company and has held the position as such for more
than five years.
Mr. N. Prasad is a Director whose period of office is liable to determination by retirement of Directors by
rotation under the erstwhile applicable provisions of the Companies Act, 1956. In terms of Section 149
and other applicable provisions of the Companies Act, 2013 Mr. N. Prasad being eligible and offering
himself for appointment, is proposed to be appointed as an Independent Director for five consecutive
years for a term up to 31st March, 2019.
In the opinion of the Board, Mr. N. Prasad fulfils the conditions specified in the Companies Act, 2013
and rules made thereunder for his appointment as an Independent Director of the Company. The Board
considers that his continued association would be of immense benefit to the Company and it is
desirable to continue to avail services of Mr. N. Prasad as an Independent Director. Accordingly, the
Board recommends the resolution in relation to appointment of Mr. N. Prasad as an Independent
Director, for the approval by the shareholders of the Company.
His qualification and experience are detailed under the heading "Information about the Directors to be
appointed / re-appointed" which forms part of this Notice. None of the Directors, except Mr. N. Prasad,
being an appointee, is interested in this resolution. This explanatory statement may also be regarded
as a disclosure Clause 49 of the Listing Agreement with the Stock Exchange.
Item No.5
Mr. A. Pitchiah is a Non-Executive Director of the Company and has held the position as such for more
than five years.
Mr. A. Pitchiah is a Director whose period of office is liable to determination by retirement of Directors
7
by rotation under the erstwhile applicable provisions of the Companies Act, 1956. In terms of Section
149 and other applicable provisions of the Companies Act, 2013 Mr. A. Pitchiah being eligible and
offering himself for appointment, is proposed to be appointed as an Independent Director for five
consecutive years for a term up to 31st March, 2019.
In the opinion of the Board, Mr. A. Pitchiah fulfils the conditions specified in the Companies Act, 2013
and rules made thereunder for his appointment as an Independent Director of the Company. The Board
considers that his continued association would be of immense benefit to the Company and it is
desirable to continue to avail services of Mr. A. Pitchiah as an Independent Director. Accordingly, the
Board recommends the resolution in relation to appointment of Mr. A. Pitchiah as an Independent
Director, for the approval by the shareholders of the Company.
His qualification and experience are detailed under the heading "Information about the Directors to be
appointed / re-appointed" which forms part of this Notice. None of the Directors, except Mr. A. Pitchiah,
being an appointee, is interested in this resolution. This explanatory statement may also be regarded
as a disclosure Clause 49 of the Listing Agreement with the Stock Exchange.
Item No.6
Mr. Nissar Ahmed Mecca is a Non-Executive Director of the Company and has held the position as
such for more than five years.
Mr. Nissar Ahmed Mecca is a Director whose period of office is liable to determination by retirement of
Directors by rotation under the erstwhile applicable provisions of the Companies Act, 1956. In terms of
Section 149 and other applicable provisions of the Companies Act, 2013 Mr. Nissar Ahmed Mecca
being eligible and offering himself for appointment, is proposed to be appointed as an Independent
Director for five consecutive years for a term up to 31st March, 2019.
In the opinion of the Board, Mr. Nissar Ahmed Mecca fulfils the conditions specified in the Companies
Act, 2013 and rules made thereunder for his appointment as an Independent Director of the Company.
The Board considers that his continued association would be of immense benefit to the Company and
it is desirable to continue to avail services of Mr. Nissar Ahmed Mecca as an Independent Director.
Accordingly, the Board recommends the resolution in relation to appointment of Mr. Nissar Ahmed
Mecca as an Independent Director, for the approval by the shareholders of the Company.
His qualification and experience are detailed under the heading "Information about the Directors to be
appointed / re-appointed" which forms part of this Notice. None of the Directors, except Mr. Nissar
Ahmed Mecca being an appointee, is interested in this resolution. This explanatory statement may also
be regarded as a disclosure Clause 49 of the Listing Agreement with the Stock Exchange.
8
INFORMATION ABOUT THE DIRECTORS PROPOSED TO BE APPOINTED / RE-APPOINTED AS
REQUIRED UNDER CLAUSE 49 OF THE LISTING AGREEMENT:
Mr. N. PRASAD:
Sri. N. Prasad is a B.E. MECHANICAL ENGINEERING FROM MADRAS UNIVERSITY
He has experience of 12 YEARS IN METAL FINISHING & ELECTROPLATING
30 YEARS AS IN-CHARGE OF PROCUREMENT IN MADRAS ALUMINIUM CO LTD AND THE JEYPORE
SUGAR CO LTD
Mr. A. PITCHIAH
Sri. A. Pitchiah is B.Tech degree holder with Distinction, Chemical Engineering, 1972 Madras
University -Training in Nuclear Science and Engineering at BARC, Mumbai
Training in several Management including ISO 9000 QMS
Overall 40 years of experience covering Nuclear and Chemical industries ranging from design,
engineering, project management and manufacturing
The above work experience both in India and abroad( Europe and Southeast Asia)
Currently acting as Consultant and advisor to a few chemical and fertiliser manufacturing companies.
Mr. NISSAR AHMED MECCA
Sri. Nissar Ahmed Mecca is a Fellow member of the Institute of Chartered Accounts of India and a
qualified CPA from American Institute of Certified Public Accountants, USA. Mr. M.Nissan Ahmed
Mecca has experience of handling Income Tax, Company Law and Audit matters for his clients. He has
also wide experience in Business Advisory Services. He has been associated with the company from its
inception and presently is the Chairman of Audit Committee and Shareholders Grievance & Share
Transfer Committee of the Company.
Profile of the retire and rotation directors.
Smt. Rajeswary Ramakrishnan
Smt.Rajeswary Ramakrishnan is an accomplished and capable industrialist of the South and has many
achievements to her credit. She has successfully run, with a very high degree of competence, industries
and has shown that women are no less than men in managing industry and commerce. She is a glorious
example of women power at its best.
Antecedent s : Mrs.Rajeswary Ramakrishnan was born in an illustrious family of the South Her father,
the late V.Ramakrishna, was one of the first and foremost entrants into the ICS from the Andhra region
9
which was part of Madras Presidency in the British days. After .having served with distinction in many
top government positions in the South during which he was awarded the C.I.E. he knew with his sharp
vision that the future of India lay in rapid industrialisation. He resigned from the Civil Service when he still
had more than ten years of service left for retirement, and founded many industries Sugar, Cement,
industrial units. In those days of sharp distinction between the sexes, he brought up Rajeswary like a
son and gave her a sound education. She graduated at 17 in 1945 from Queen Mary's College in Madras
and was one of the very few women graduates of those days.
Achievements : Mrs.Rajeswary Ramakrishnan first came into industry as the Governing Director of
V.R.Textiles (P) Ltd, near Coimbatore. Her father made her Director of V.Ramakrishna Sons, Managing
Agents for the K C P Ltd and Managing Director of R S Industrial Corporation, Managing Agents for
Jeypore Sugars and Krishna Industrial Corporation Ltd. When the Managing Agency system was abol-
ished in 1960, she became Managing Director of Jeypore Sugars and KI C Ltd. Following Government of
India's regulation that one person cannot be Managing Director of more than two companies, she had to
resign as Governing Director of V.R.Textiles which she was ably running.
Under the rigorous training of her father and expert guidance from her husband P.R.Ramakrishnan (who
is also a noted industrialist from Coimbatore, who did his Master of Engineering from the Prestigious
and world-renowned M.I.T. of Boston, U.S.A., been a Member of Parliament for 10 -years, Dy.Managing
Director of South India Viscose Ltd and Managing Director of Madras Aluminium Co Ltd) she blossomed
into a top class industrialist. Jeypore Sugars has taken big strides under her stewardship and today she
is in sugar, alcohol, ferroalloys, carbon-di-oxide and starch. She is also closely associated with The
KCP Ltd, Madras Aluminium Co Ltd, Eimco-KCP Ltd, Krishna Industrial Corporation Ltd, Radhakrishna
Mills, Ramakrishna Industrials (P) Ltd, V R Textiles Ltd and Coimbatore Institute of Technology and
Sandwich Polytechnic.
Service to Society : She has donated about fifty lakhs including land in her father's name in his birth
place, Guntur for a co-educational College and is actively participating in its functioning. She is the
President of Sri.V.Ramakrishna Memorial College, Nagaram, which has become a model rural
institution in the country today. She has put up the V.RamakrishnaJunior College in Chagallu. She has
also donated liberally for the Engineering wing in the B R Reddy College, Eluru. She is the Chief local
donor for the Men's College, Women's College and EyeHospital at Nidadavole which caters to hundreds
of villages in West Godavari. This hospital is named 'Rajeswary Ramakrishnan Lions' EyeHospital'.
Other accomplishments: She has been very active in Rotary in Coimbatore for several years in the
50’s and 60’s. In 1957 she led a group of 27 rotaryannes to Srilanka on a highly successful goodwill
mission. She was also very active in Guild of Services, Red Cross and other social service organizations
but she gradually gave up these other activities to devote full time to her growing industries. She is still
closely associated with them.
10
Connections : Although she is a highly accomplished individual in her own right, she is closely related
to other high-calibre achievers. Apart from the father who was a great civil servant-cum-visionary-indus-
trialist she is married to a brilliant engineer-cum-industrialist-cum-educationist-cum- Parliamentarian.
She is the proud mother of three highly intelligent and talented sons. Her first son R.Prabhu is also an
alumnus of the world famous Massachusetts Institute of Technology, Boston, U.S.A., four times M.P.
and Minister of State for Fertilisers in the Rajiv Gandhi Cabinet. Her other son S.R.K.Prasad heads his
own software firm and has been President of the "Operations Research Society of India", a highly
reputed professional body. He was recently awarded Doctor of Science by the City University of Los
Angeles, California, U.S.A., for his brilliant work in the field of OR and Optimisation techniques. He
recently got the Indira Priyadarshni Award and the'Vijay Ratna Award at Delhi. Her brother Dr.V.L.Dutt,
besides being a top industrialist, has been president of the Federation of Indian Chambers of Commerce
and Industry. Her other brother Sri.V.M.Rao is a highly qualified technocrat and is the CMD of the sugar
factories at Vuyyuru and Lakshmipuram. To shine in such distinguished company has been her singular
achievement.
She is the recipient of the Pride of Asia International Award and Gold Medal for being a leading lady
industrialist in a world dominated by men at Singapore on 11-01-1992.
She was bestowed the "Shakkara Prapurna" Award during 1988-89 season by the
AndhraAgriculturalUniversity, Anakapalle.
She received the Award from FICCI in 1995-1996 for "Outstanding Woman Entrepreneur".
By Order of the Boardfor KRISHNA INDUSTRIAL CORPORATION LTD.
(Sd.) Dr. S.R.K. PRASADManaging Director
Place : ChennaiDate : 26-05-2014
11
KRISHNA INDUSTRIAL CORPORATION LIMITED
Report of the Directors to the Shareholders for the year ended 31st March, 2014.
1. Your Directors have pleasure in submitting herewith their report together with the statement ofaccounts for the year ended 31st March, 2014.
2. Profit Appropriations:
Less Before Depreciation and Interest 1,70,50,574Less : Interest 2,49,95,139Depreciation 99,45,749
--------------- 3,49,40,888-------------------
Loss Before Tax 1,78,90,314Less : Exceptional Items 82,93,263
---------------95,97,051
Add/Less : Deferred Tax (credit) 23,91,826Short Provision of Current Tax 1,88,750
--------------Loss After Tax 73,93,975Less : Balance of Profit brought forward from last year 59,29,479
--------------Balance of Loss before appropriations Nil
--------------Loss taken to Balance Sheet 1,33,23,454
--------------
3. Capital and Reserves :
The Reserves and Surplus stood at Rs.55,30,219/- as against Rs.1,29,24,194/- at the end oflast year.
4. WORKING RESULTS
a) FERTILISER DIVISION :
During the year, the production of Super phosphate and SulphuricAcid was 28949 MT and Nil MTas against 16351 MT and 2935 MT respectively during the previous year and sale of Super Phosphateand Sulphuric Acid was 30190 MT and 5 MT as against 12668 MT and 1975 MT respectively duringthe previous year.
The working of this unit has been quite satisfactory. In the current financial year the production andsales of Super phosphate is expected to be good with good monsoon and Subsidy policy.
12
b) NPK GRANULATION UNIT :
The production of NPK Granulation Mixtures at this unit during the year was 5544 MT as against2516 MT during last year and sales were 5544 MT as against 2516 MT during the previous year.The working of this plant during the year has been affected due to non-availability of Urea and DAP.This unit is expected to do better with availability of Urea and DAP during the current year.
c) BIO-FERTILISER UNIT:
The production of Bio-Fertiliser at this unit during the year was 148 MT as against 187 MT duringthe previous year and sales were 153 MT as against 182 MT during the previous year.
The company expects to increase the sales of this division in the current year.
d) ACETIC ACID UNIT :
The production of Acetic Acid at this unit during the year was Nil MT, as against 161 MT during lastyear, and sales were 4 MT as against 226 MT during the previous year. The working of this unit washampered due to non-availability of alcohol and the competitive price of acetic acid due to dumpingof imported acetic acid. The management has disposed this plant due to uneconomic working.
e) CO2 Units
i) JANGAREDDIGUDEM UNIT :The production of Co2 Gas at this unit during the year was 969 MT as against 1167 MT during thelast year and sales were 949 MT as against 1169 MT during the previous year. The working of thisunit was satisfactory during the year.
ii) CO2 BOTTLING UNIT:The production of Co2 Gas at this unit during the year was 344 MT as against 564 MT during thelast year and sales were 347 MT as against 560 MT during the previous year. The working of thisunit was affected due to difficulty in procuring liquid gas and competition from unorganised sector
f) KASBAH SYSTEMS SOFTW ARE:The performance of this unit has been very satisfactory considering the global scenario of IT industry.Kasbah provided high-end services to European market during the year.
5. Safety and pollution Control:
a) Nidadavole UnitsThe company has adhered to the pollution limits prescribed by the Andhra Pradesh PollutionControl Board.
13
b) CO2 Units
We have already implemented all safety measures as per factory rules in our factories atJangareddigudem and Hyderabad.
6. Conservation of Energy:
A statement giving details of conservation of energy and technology absorption in accordance withcompany's (disclosure of particulars in the report of Board of Directors) Rules, 1988 is annexed.The details regarding total energy consumption per unit is given in the FORM "A" of the Annexure.
Research and Development :
No specific Research and Development activity was carried out during the year.
Foreign Exchange Earnings and outgo :
The company has earned foreign currency from export of IT products Rs.5,47,09,897/- and incurredtraveling expenses in foreign currency Rs.Nil
7. Directors:
The following Director retire at the conclusion of the Annual General Meeting and, being eligible,offer themselves for re-election.
SMT. RAJESWARY RAMAKRISHNAN
8. Management Staff:
There were no employees during the year under report who were in receipt of such remuneration,the particulars of which are required to be disclosed in this report in accordance with section217(2A), and the rules made thereunder.
9. Staff Relations:
The relationship with the staff and workers continued to be cordial during the year. The Directorswish to place on record their appreciation of the valuable work done and co-operation extended bythem at all levels.
10. The points referred to in para 1 and 7 of the Auditors Report annexure are self-explanatory. Stepsare being taken to regularise the matters in the current year.
11. Directors' Responsibility Statement:
Pursuant to the requirement u/s 217(2AA) of the Companies Act, 1956, with respect to Directors'Responsibility Statement, it is hereby confirmed:
i) That in the preparation of the accounts for the financial year ended 31st March, 2014 the applicableaccounting standards have been followed.
ii) That the directors have selected such accounting policies and applied them consistently and
14
made judgments and estimates that were reasonable and prudent so as to give a true and fair viewof the state of affairs of the company at the end of the financial year and of the profit or loss of thecompany for the year under review;
iii) That the directors have taken proper and sufficient care for the maintenance of adequate accountingrecords in accordance with the provisions of the Companies Act, 1956 for safeguarding the assetsof the company and for preventing and detecting fraud and other irregularities;
iv) That the directors have prepared the accounts for the financial year ended 31st March, 2014 on a'going concern' basis.
12. Auditors:
a) The Auditors of the company M/s Brahmayya& Co., Chartered Accountants, Vijayawada retire atthis meeting and are eligible for reappointment.
b) Smt. Aruna Prasad, Cost Accountants, Chennai has been appointed as Cost Auditor for SuperPhosphate, NPK Granules and Bio-fertilisers of the company for the year 2014-2015.
13. The Board wishes to place on record its appreciation for the co-operation and assistance extendedto the company by the company's bankers and Andhra Pradesh State Financial Corporation. TheBoard also places on record its appreciation for the services of the staff of the company.
By Order of the Boardfor KRISHNA INDUSTRIAL CORPORATION LTD.,
I have examined the registers, records, books and papers of KRISHNA INDUSTRIAL CORPORATIONLIMITED(the Company) as required to be maintained under the Companies Act, 1956, (the Act) and therules made thereunder and also provisions contained in the Memorandum and Articles of Association ofthe Company for the financial year ended on 31st March, 2014. In my opinion and by the best of myinformation and according to the examinations carried out by me and explanations furnished to me bythe Company, the officers and agents, I certify that in respect of the aforesaid financial year:
1. The Company has kept and maintained all registers as stated in Annexure 'A' to this certificate asper the provisions of and the rules made thereunder and all entries therein have been duly recorded.
2. The Company has duly filed the forms and returns as stated in Annexure 'B' to this certificate, withthe Registrar of Companies, Regional Director, Central Government, Company Law Board or otherauthorities within the time prescribed under the Act and the rules made thereunder.
3. The Company is a Public Limited Company.
4. The Board of Directors duly met five times on 30-05-2013, 25-09-2013, 24-10-2013, 12-11-2013 and14-02-2014, in respect of which meetings proper notices were given and the proceedings wereproperly recorded and signed including the circular resolutions passed in the Minutes Book maintainedfor the purpose.
5. The Company has closed its Register of Members from 16th October 2013 to 24th October 2013(both days inclusive)..
6. The annual general meeting for the financial year ended on 31st March 2013 was held on 24-10-2013 after getting extension of time from the Registrar of Companies, Tamilnadu and after givingdue notice to the members of the Company and the resolutions passed thereat were duly recordedin Minutes Book maintained for the purpose.
7. No extra ordinary general meeting was held during the financial year.
8. The Company has not advanced any loan to its directors and/or persons or firms or companiesreferred in the section 295 of the Act.
9. The Company has made necessary entries in the Register of Contract, the contracts with thecompanies or firms in which the directors are interested as referred under section 297 of the Act
10. The Company has made necessary entries in the register maintained under section 301 of the Act.
11. As there was no instances falling within the purview of section 314 of the companies Act,1956 theCompany was not required to obtain any approval from the Board of Directors, members and theprevious approval of the Central Government as the case may be.
12. The company has not issued any duplicate certificates during the financial year.
13. The Company has:
i) delivered all the share certificates on allotment of securities and on lodgement thereof for transfer/transmission or any other purpose in accordance with the provisions of the Act.
ii) not declared any dividend during the financial year.
16
iii) no amount is lying in unpaid dividend account, application money due for refund, matureddeposits, matured debentures and the interest accrued thereon, which have remained unclaimedor unpaid for a period of seven years.
iv) duly complied with the requirements of section 217 of the Act.
14. The Board of Directors of the Company is duly constituted and the appointment of directors,additional directors, alternate directors and directors to fill casual vacancies have been duly made.
15. The appointment of Managing Director/ Whole-time Director/Manager has been made in compliancewith the provisions of section 269 read with Schedule XIII to the Act and the application for approvalof the Central Government has been filed in respect of appointment of Dr.S.R.K.Prasad, not beingin terms of Schedule XIII.
16. The Company has not appointed any sole-selling agents, requiring approvals as required under theprovisions of the Act.
17. The company was not required to obtain any approvals of the Central Government, Company LawBoard, Regional Director, Registrar of Companies or such other authorities as may be prescribedunder the various provisions of the Act.
18. The directors have disclosed their interest in other firms/companies to the Board of Directorspursuant to the provisions of the Act and the rules made thereunder.
19. The Company has not issued any shares during the financial year.
20. The Company has not bought back any shares during the financial year.
21. The Company has not issued any redeemable preference shares/debentures.
22. There were no transactions necessitating the company to keep in abeyance rights to dividend,right shares and bonus shares pending registration of transfer of shares.
23. The company has complied with the provisions of sections 58A and 58AA read with Companies(Acceptance of Deposit) Rules, 1975/the applicable directions issued by the Reserve Bank ofIndia/any other authority in respect of deposits accepted including unsecured loans. The Companyhas filed return of deposit with the Reserve Bank of India/other authorities as required.
24. The amount borrowed by the company from directors, members, public, financial institutions,banks and others during the financial year is/are within the Borrowing power of the company as persection 293(1)(d) of the Act..
25. The company has not made any loans and investments or given guarantees or provided securitiesto other bodies corporate.
26. The company has not altered the provisions of the memorandum with respect to situation of thecompany's registered office from one state to another during the year .
27. The company has not altered the provisions of the memorandum with respect to the objects of thecompany during the year under scrutiny.
28. The company has not altered the provisions of the memorandum with respect to name of thecompany during the year under scrutiny.
29. The company has not altered the provisions of the memorandum with respect to share capital ofthe company during the year under scrutiny.
17
30 The company has not altered its articles of association during the year under scrutiny.
31. No prosecution was initiated against and no show cause notices was received by the company foralleged offenses under the Act and also no fines and penalties or any other punishment imposedon the company.
32. The company has not received any amount as security from its employees during the year undercertification.
33. According to the information given by the company, the company has been regular in depositingboth employees' and employer's contribution to Provident Fund with prescribed authorities pursuantto section 418 of the Act.
R. ALAGARC.P.No.3913
Place: ChennaiDate: 26-05-2014
ANNEXURE ARegisters as maintained by the Company
1. Members Register u/s 150
2. Share Transfer Register u/s 108
3. Register of Directors u/s 303
4. Register of Directors' Shareholding u/s 307
5. Register of contracts u/s 301
6. Register of Investment u/s 372
7. Application & Allotment Register
8. Minutes Book for Board Meetings and General Meetings.
9. Books of Accounts u/s 209
ANNEXURE B
Forms and Returns as filed by the Company with the Registrar of Companies, Regional director, CentralGovernment or other authorities during the financial year ending on 31st March 2013.
Registrar of Companies
1. Balance Sheet as on 31-3-2013 and Profit & Loss Account for the period ended 31-3-2013 alongwith Schedule, Director's Report and Auditor's Report u/s 220 filed in XBRL on 17-12-2013 withadditional fee.
2. Secretarial Compliance Certificate for the year 2012-2013 filed on 16-11-2013.3. Annual Return in Schedule V for the period 2012-2013 u/s 159 filed on 20-11-2013.4. Statement in lieu of Advertisement for acceptance/renewal of deposits filed on 30-10-2013.5. Fixed Deposit Return for the year ending 31-03-2013 filed on 29-06-2013.6. Appointment of Cost Auditor u/s 233B(2) filed on 28-10-20137. Form 25A u/s198 for approval of Central Government for appointment of MD filed on 07-02-2014
with additional fee.8. Form 8 u/s 141 for modification of charge on 08-04-2013 filed on 09-04-2013
Regional director , Central Government or other authorities NIL
R. ALAGARC.P.No.3913
Place: ChennaiDate: 26-05-2014
18
FORM "A"(See Rule 2)
Form for disclosure of particulars with respect to consumption of Energy
FERTILISER - NPKGRANUALS - ACETIC ACID - CO2 - CO2 -NIDADAVOLE NIDADAVOLE NIDADAVOLE JANGAREDDYGUDEM HYDERABAD
Current Previous Current Previous Current Previous Current Previous Current PreviousYear Year Year Year Year Year Year Year Year Year
b. Own GenerationDiesel Oil Consumed (Litres) 2226 22370 1552 810 - 10497 9020 27364 - 126No. of Units Generated (KWH) 5869 58279 4234 1955 - 28913 26200 72185 - 332Units/Litre 2.64 2.61 2.73 2.41 - 2.75 2.90 2.64 - 2.63
2 Furnace Oil Consumption/Unit of production :a. Electricity KWHI) For Sulphuric Acid (per MT) - 61.35 - - - - - - - -II) For Superphosphate (per MT) 25.90 20.02 - - - - - - - -III) For Co2 Gas (per MT) - - - - - - 138.28 183.56 43.13 53.93IV) For Acetic Acid (per MT) - - - - - 781.06 - - - -V) For NPK Granuls (per MT) - - 29.76 47.21 - - - - - -
Power & Fuel Consumption
KRISHNA INDUSTRIAL CORPORATION LIMITED
19
INDEPENDENT AUDITORS' REPORT
To
The Members ofKRISHNA INDUSTRIAL CORPORATION LIMITED
Report on the financial statements
We have audited the accompanying financial statements of KRISHNA INDUSTRIAL CORPORATIONLIMITED ("the Company") which comprise the Balance Sheet as at March 31, 2014, the Statement ofProfit and Loss and its Cash Flow Statement for the year ended on that date annexed thereto and asummary of significant accounting policies and other explanatory information.
Management's responsibility for the financial statements
Management is responsible for the preparation of these financial statements that give a true and fair viewof the financial position, financial performance and cash flows of the Company in accordance with theAccounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("theAct") read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of section 133 of the Companies Act, 2013. This responsibility includes the design,implementation and maintenance of internal control relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from material misstatement, whether dueto fraud or error.
Auditors' responsibility
Our responsibility is to express an opinion on the financial statements based on our audit. We conductedour audit in accordance with the standards on Auditing issued by the Institute of Chartered Accountantsof India. Those standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditors' judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditors consider internal control relevant to the Company'spreparation and fair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness ofthe entity's internal control. An audit also includes evaluating the appropriateness of accounting policiesused and reasonableness of the accounting estimates made by management, as well as evaluating theoverall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion.
Opinion
Without qualifying our opinion attention is drawn to the following:
a) The company has no information on the status of its suppliers as to Micro, Small and Mediumenterprises and consequently liability towards interest on delay in payment, if any, has not beenascertained.
b) Confirmation of balances with trade receivables, trade payables and advances with suppliers ispending and subject to reconciliation which might require financial adjustments. The impact of thesaid adjustments on the loss for the year, if any, is unascertainable.
20
c) Some of the balances in trade receivables and advances to suppliers accounts are outstanding fora long period and we are unable to comment on the extent of realisability of these debts andconsequently the adequacy of the provisions for doubtful debts and advances made by the company.The impact of this on the loss for the year is unascertainable.
d) The inventory in Co2 unit, Vuyyuru is in existence for longer period. Being a matter which requiresdetailed assessment and technical skills to evaluate its usage, we are unable to comment on theprovision, if any, required to be made against the said inventory. The impact of this on the loss forthe year is unascertainable.
In our opinion and to the best of our information and according to the explanations given to us, thefinancial statements give the information required by the Act in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted in India;
a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;
b) in the case of the Statement of Profit and Loss, of the Loss of the Company for the year ended onthat date and
c) in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended onthat date.
Report on other legal and regulatory requirements
As required by the Companies (Auditor's Report) Order, 2003 ("the Order"), as amended, issued bythe Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in theAnnexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
As required by section 227(3) of the Act, we report that:
1. We have obtained all the information and explanations which to the best of our knowledge and beliefwere necessary for the purposes of our audit;
2. In our opinion, proper books of account as required by law have been kept by the Company, so faras appears from our examination of those books;
3. The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this reportare in agreement with the books of account;
4. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement complywith the Accounting Standards referred to in sub-section (3C) of Section 211 of the Act read with theGeneral Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respectof section 133 of the Companies Act, 2013;
5. On the basis of written representations received from the directors, as on March 31, 2014 and takenon record by the Board of Directors, none of the directors is disqualified as on March 31, 2014 frombeing appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act; and
6. Since the central government has not issued any notification as to the rate at which the cess is tobe paid under section 441A of the Act, nor has it issued any rules under the said section prescribingthe manner in which such cess is to be paid, no cess is due and payable by the Company.
For BRAHMAYYA & COChartered Accountants
Firm Regn.no.000513S (Sd.) P. Lakshmana Rao
Partner ICAI Membership No.13254
Place : ChennaiDate : 26-05-2014
21
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
The Annexure referred to in our report to the members of KRISHNA INDUSTRIAL CORPORATION LIMITED("the Company") for the year ended March 31, 2014, we report that:
1. In respect of its fixed assets ;
a) The Company's register of fixed assets remains to be updated with the required particulars atthe date of balance sheet.
b) According to the information and explanations furnished to us, the Company has not physicallyverified its fixed assets during the year. We have been informed by the management that theCompany has adopted a phased programme of verification of its fixed assets which, in ouropinion, is reasonable having regard to the size of the Company and the nature of its assets.
c) According to the information and explanations furnished to us, the Company has not disposedoff a substantial part of its fixed assets during the year and therefore do not affect the goingconcern assumption. However attention is drawn to the point that the company sold part of itsfixed assets at Chemical division and the operations in the said unit are temporarily suspended.We have been informed by the management that efforts are being made to restart the operationsof the said unit and is expected to run the said division in due course of time.
2. In respect of its Inventories ;
a) According to the information and explanations furnished to us, the Company has not physicallyverified its inventories during the year.
b) According to the information furnished to us, the Company is maintaining proper records ofinventory.
3. In respect of its loans
a) The Company has not granted any loans secured or unsecured, to companies, firms or otherparties covered in the register maintained under section 301 of the Act at the beginning of theyear or during the year. Consequently, reporting under clauses (iii)(b), (iii)(c) and (iii)(d) ofparagraph 4 of the Order are not applicable.
b) The company has accepted fixed deposits aggregating at the date of balance sheet to Rs.86lakhs from 2 directors, Rs.38.95 lakhs from 6 relatives of directors and Rs. 1.25 lakhs from acompany covered in the register maintained under section 301 of the Act.
c) In our opinion, the rate of interest and other terms and conditions on which fixed deposits havebeen taken by the Company from parties covered in the register maintained under section 301of the Act are not, prima facie, prejudicial to the interest of the Company.
d) The company has been regular in repaying the principal and interest amounts as stipulated onthe deposits taken by it from the parties covered in the register maintained under section 301of the Act.
4. In our opinion and according to the information and explanations given to us, there are adequateinternal control systems commensurate with the size of the Company and the nature of its businesswith regard to purchases of inventory, fixed assets and for the sale of goods and services. Furtherduring the course of our audit, we have not come across any instances of major weaknesses in
22
internal control system.
5. In respect of the contracts or arrangements referred to in section 301 of the Act :
a) In our opinion and according to the information and explanations given to us, the transactionsmade in pursuance of contracts or arrangements that need to be entered in the registermaintained under section 301 of the Act have been so entered.
b) In our opinion and according to the information and explanations given to us, the transactionsmade in pursuance of contracts/arrangements entered in the register maintained under section301 of the Act and exceeding the value of Rs.5 lakhs in respect of each party during the yearhave been made at prices which appear reasonable as per information available with theCompany and other terms of business with such parties, at the relevant time.
6. The Company has complied with the provisions of sections 58A and 58AA or any other relevantprovisions of the Act and Companies (Acceptance of Deposits) Rules, 1975 with regard to thedeposits accepted from the public. According to the information furnished to us, no order has beenpassed on the Company by the Company Law Board or National Company Law Tribunal or ReserveBank of India or any Court or any other Tribunal for noncompliance with the provisions of sections58A and 58AA of the Act.
7. The Company does not have internal audit system during the period under report.
8. We have broadly reviewed the books of account and records maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records under section209(1)(d) of the Act and we are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained. However, we have not carried out a detailed examination of thesaid records with a view to determine where they are accurate or complete.
9 a) According to the information furnished to us, the Company made delays in depositing withappropriate authorities, the undisputed statutory dues of Provident Fund, ESI and Service taxand is regular in depositing Investor Education and Protection Fund, Income tax, Sales tax,Wealth tax, Customs duty, Excise duty, Cess and any other statutory dues applicable to it.There were no undisputed statutory dues in arrears as at the date of the Balance Sheet underreport, for a period of more than six months from the date they became payable except anamount of Rs.24,040/- and Rs.1,06,000/- being the liability towards ESI and service tax pendingfor remittance as on date of balance sheet.
b) According to the information furnished to us and records of the Company examined by us, atthe date of Balance Sheet, there were no amounts of Income-tax, Sales tax, service tax,customs duty and Excise duty have been disputed by the Company and hence were notremitted to the authorities concerned.
10. The Company have accumulated losses at the end of the financial year. Further, the Companyincurred cash losses during the financial year covered by the audit (considering loss beforeextra-ordinary items) but not incurred cash loss in the immediately preceding financial year.
11. In our opinion and according to the information and explanations furnished to us and as per thebooks and records examined by us, the company made considerable delays in repayment of itsdues to APSFC aggregating to Rs.156.34 lakhs during the year for a period of 10-117 days. Howeverno amount was pending for remittance as on 31st March 2014. The company has not borrowed
23
any amount by way of issue of debentures.
12. According to the information and explanations given to us, the Company has not granted any loansor advances on the basis of security by way of pledge of shares, debentures and other securities.
13. In our opinion and according to the information and explanations furnished to us, the Company isnot a chit fund or a nidhi/mutual benefit fund/society and hence the requirements of clause (xiii) ofparagraph 4 of the Order are not applicable to the Company during the year under report.
14. According to the information furnished to us, the Company is not dealing in or trading in shares,securities, debentures and other investments. Accordingly, the requirements of clause (xiv) ofparagraph 4 of the Order are not applicable to the Company.
15. According to the information and explanations given to us, the Company has not given any guaranteesfor loans taken by others.
16. According to the information and explanations given to us, the term loans obtained by the Companyduring the year have been applied for the purpose for which they were obtained.
17. According to the information and explanations given to us and on an overall examination of theBalance Sheet of the Company, we are of the opinion that considering the internal accruals of theCompany, no funds raised on short-term basis have been used for long-term investment or otherinvestments during the year.
18. According to the information and explanations given to us, the Company has not made any preferentialallotment of shares during the year to parties and companies covered in the register maintainedunder Section 301 of the Act.
19. According to the information and explanations given to us, the Company has not issued anydebentures. Hence the clause (xix) of paragraph 4 of the Order is not applicable.
20. The Company has not raised any money through public issues during the year. Accordingly, theprovisions of clause (xx) of paragraph 4 of the Order are not applicable to the Company during theyear under report.
21. During the course of our examination of the books and records of the Company, carried out inaccordance with the Generally Accepted Auditing Practices in India, and according to the informationand explanations given to us, we have not come across any instance of fraud on or by the company,noticed or reported during the year, nor have we been informed of such case by the management.
Place : ChennaiDate : 26-05-2014
For BRAHMAYYA & COChartered Accountants Firm Regn.no.000513S
(Sd.) P. Lakshmana RaoPartner
ICAI Membership No.13254
24
BALANCE SHEET AS AT 31ST MARCH, 2014
I. EQUITY AND LIABILITIES :
1) Shareholders’ funds(a) Share capital 2 2,01,45,410 2,01,45,410(b) Reserves and surplus 3 55,30,219 1,29,24,194
2,56,75,629 3,30,69,6042) Non-current liabilities(a) Long-term borrowings 4 5,50,34,113 4,09,64,575(b) Deferred tax liabilities (Net) 5 88,33,862 1,12,25,688(c) Other Long term liabilities 6 1,02,18,317 1,02,74,317(d) Long-term provisions 7 66,35,716 14,63,650
8,07,22,008 6,39,28,2303) Current liabilities(a) Short-term borrowings 8 13,41,89,712 11,97,91,642(b) Trade payables 9 9,46,28,922 10,91,52,062(c) Other current liabilities 10 5,88,66,438 6,44,58,849(d) Short-term provisions 7 2,13,186 25,64,792
28,78,98,258 29,59,67,345 Total 39,42,95,895 39,29,65,179
Per our report annexedfor BRAHMAYYA & COChartered Accountants Firm Regn.no.000513S(Sd.) P. Lakshmana RaoPartnerICAI Membership No.13254Place : ChennaiDate : 26-05-2014
(Sd.) Dr. S.R.K. PRASADManaging Director
(Sd.) A. PITCHIAH(Sd.) N. PRASAD
Directors
PARTICULARS NOTE NO. As at31-03-2014
As at31-03-2013
25
REVENUE :Revenue from Operations : 18
- Sale of Products (Gross) 43,75,24,277 27,35,41,260 - Sale of Services 18,64,366 3,00,000
43,93,88,643 27,38,41,260 Less : Excise duty collected 46,30,958 54,97,614
43,47,57,685 26,83,43,646 Other Income 19 40,92,694 1,64,68,658
Total Revenue 43,88,50,379 28,48,12,304
EXPENSES :Cost of Materials consumed 20 26,38,70,009 15,98,43,698Purchases of stock-in-trade 21 - 12,32,422Changes in Inventories of Finished goods,Work-in-process and Stock-in-Trade 22 1,76,23,900 (3,18,19,378)Employee benefits expenses 23 6,22,20,321 5,66,11,353Finance costs 24 2,49,95,139 2,51,64,822Depreciation and Amortisation expense 25 99,45,749 1,11,83,052Other expenses 26 7,80,85,575 7,26,71,839
Total Expenses 45,67,40,693 29,48,87,808Loss before Tax (1,78,90,314) (1,00,75,504)Add / Less : Exceptional items - -Loss before extra-ordinary items and tax (1,78,90,314) (1,00,75,504)Less : Extra-ordinary items
Waiver of part of sales tax deferment loan on prepayment 39,41,848 -
Profit on sale of assets of Acetic Acid plant 43,51,415 -(95,97,051) (1,00,75,504)
Add/Less : Tax Expenses :Current Tax - -Deferred Tax (Credit) (23,91,826) (15,31,233)Short Provision of Current Tax 1,88,750 95,336
Loss after tax (73,93,975) (86,39,607)Earnings per equity share of Rs.10 eachBasic and Diluted EPS before extra ordinary items (3.67) (4.29)Basic and Diluted EPS after extra ordinary items (7.79) (4.29)Significant Accounting Policies 1Notes on Financial Statements 2 - 38
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2014
PARTICULARS NOTE NO. As at31-03-2014
As at31-03-2013
Per our report annexedfor BRAHMAYYA & COChartered Accountants Firm Regn.no.000513S(Sd.) P. Lakshmana RaoPartnerICAI Membership No.13254Place : ChennaiDate : 26-05-2014
(Sd.) Dr. S.R.K. PRASADManaging Director
(Sd.) A. PITCHIAH(Sd.) N. PRASAD
Directors
26
The Board of DirectorsKrishna Industrial Corporation LimitedChennai.
We have examined the attached Cash Flow Statement of Krishna Industrial Corporation Limited,Chennai for the year ended 31st March, 2014. The Statement has been prepared by the Company inaccordance with the requirements of listing agreement clause 32 with Madras StockExchange Limited and is based on and is in agreement with the corresponding Profit and LossAccount and Balance Sheet of the Company covered by our report of even date to the members of the Company.
CASH FLOW STATEMENT PURSUANT TO CLAUSE 32 OF THE LISTING AGREEMENT
PARTICULARS DETAILSRs.
31.03.2014Rs.
DETAILSRs.
31.03.2013Rs.
I. CASH FLOW FROM OPERATING ACTIVITIES :
Net Profit/(Loss) before Tax (95,97,051) (1,00,75,504)Add/Less :Adjustments fora) Depreciation 99,45,749 1,11,83,052b) Interest and Finance charges 2,49,95,139 2,51,64,822c) Interest received (24,06,690) (27,97,674)d) (Profit)/Loss on sale of Assets (48,88,155) (99,08,868)e) Dividends received (6,064) (6,280)
Operating Profit before Working Capital changes 1,80,42,928 1,35,59,548
Add/Less :
Adjustments for Working Capital
a) Inventories 2,64,86,545 (6,25,30,269)b) Trade Receivables (4,18,02,934) 64,31,443c) Loans & Advances 12,66,524 9,94,195d) Other Current Assets 8,98,799 1,68,87,388e) Trade Payables (1,21,22,348) 9,44,78,953
Cash generated from operations (72,30,486) 6,98,21,258a) Direct Taxes paid (net of refunds) 2,64,112 10,11,545
NET CASH FROM OPERATING ACTIVITIES -(A)— (74,94,598) 6,88,09,713
For BRAHMAYYA & COChartered Accountants Firm Regn.no.000513S
(Sd.) P. Lakshmana RaoPartner
ICAI Membership No.13254
Place : ChennaiDate : 26-05-2014
27
II) CASH FLOW FROM INVESTING ACTIVITIES
a) Investment in Fixed assets / Capital works (37,89,487) (26,51,120) b) Sale value realised from Fixed Assets 1,51,52,292 1,07,80,248 c) Interest received 26,07,238 27,51,071 d) Dividends received 6,064 6,280
NET CASH USED IN INVESTING ACTIVITIES -(B)— 1,39,76,107 1,08,86,479
III) CASH FLOW FROM FINANCING ACTIVITIES
a) Acceptance of Borrowings 2,62,06,646 (4,86,39,683) b) Interest and Finance Charges (2,55,53,845) (2,44,08,635) c) Dividends and Taxes paid - (23,41,350)
NET CASH USED IN FINANCING ACTIVITIES -(C)— 6,52,801 (7,53,89,668)
NET INCREASE IN CASH AND CASH EQUIVALENTS 71,34,310 43,06,524(A+B+C)CASH AND CASH EQUIVALENTS AT THEEND OF YEAR 3,76,62,385 3,05,28,075
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF YEAR 3,05,28,075 2,62,21,551
71,34,310 43,06,524
Per our report annexedfor BRAHMAYYA & COChartered Accountants Firm Regn.no.000513S(Sd.) P. Lakshmana RaoPartnerICAI Membership No.13254
Place : ChennaiDate : 26-05-2014
By order of the Boardfor KRISHNA INDUSTRIAL CORPORATION LTD.
(Sd.) Dr. S.R.K. PRASADManaging Director
28
STATEMENT ON SIGNIFICANT ACCOUNTING POLICIES Note No.1
1. GENERAL
The Accounts are prepared under the historical cost convention and in accordance with generallyaccepted accounting practices. The financial statements are prepared to comply in all respectswith the Accounting Standards notified under section 211(3C) of the Companies Act, 1956 and allthe relevant provisions thereof.
2. USE OF ESTIMATES
The preparation of financial statements requires the management of the Company to make judgments,estimates and assumptions that affect the reported balance of assets and liabilities, revenues andexpenses and disclosures relating to the contingent liabilities and commitments. The managementbelieves that the estimates used in preparation of the financial statements are prudent andreasonable. The judgments, estimates and underlying assumptions are made with themanagement's best knowledge of the business environment and are reviewed on an ongoingbasis. However, future results could differ from these estimates. Any revision to these accountingestimates is recognised prospectively in the current and future periods.
3. TANGIBLE FIXED ASSETS
Fixed Assets, tangible in nature, are stated at cost less accumulated depreciation. Cost ofacquisition of fixed assets is inclusive of freight, duties, taxes, incidental expenses relating to thecost of acquisition, cost of installation/erection as applicable and interest on borrowings till thedate of commissioning of the Assets. (CENVAT availed, if any, on fixed assets is not included inthe cost of such fixed assets capitalized.)
4. INTANGIBLE ASSETS
Intangible assets are stated at cost of acquisition less accumulated amortization. All costs includingborrowing costs, if any, on specific borrowings utilized for financing the assets till its usage arecapitalized.
5. BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition, construction or production ofassets that necessarily take a substantial period of time to get ready for their intended use or saleare capitalized as part of cost of such assets. Other borrowing costs are recognized as an expensein the period in which they are incurred.
6. DEPRECIATION AND AMORTISATION
Depreciation is written off in accordance with the provisions of Schedule XIV of the Companies Act1956 in the following manner.
i) Under straight Line method:
l on all the assets at the Co2 Plant at Jangareddigudem
l on some of the Assets at Fertiliser, Acetic Acid,Co2 Bottling plant and Bio-Fertiliser unitsat Nidadavole, and Co2 Bottling Plant at Hyderabad.
29
ii) Under written down value method on all other assets of the Company.
iii) The intangible assets, being Computer Software is amortized over a periodof 5 years on Straight Line Method.
7. INVENTORIES
a) All finished goods are valued at the lower of cost or market value.
b) Work -in- process, Raw-materials, Stores, Spares and Materials in transit are valued at costexcept where net realisable value of the finished goods they are used in, is less than the costof finished goods and in such an event, if the replacement cost of such materials etc., is lessthan their book values, they are valued at replacement cost.
c) Valuation of Computer Software packages and work-in-progress relating thereto is based ontechnical assessment by the management.
d) Scrap as and when sold is adjusted in the accounts.
8. INVESTMENTS
All Investments are long term unless otherwise stated, and are stated at cost, except where thereis other than temporary diminution in their value in which case the carrying amount is reduced torecognise the decline. Income from dividends is accounted for on accrual.
9. REVENUE RECOGNITION
Revenue is recognized to the extent that it is probable that the economic benefits will flow to thecompany and the revenue can be reliably measured.
i) Revenue from sale of products is recognised when the risks and rewards of ownership aretransferred to the buyer under the terms of the contract which usually coincide on the dispatchof goods to the customer or when they are unconditionally appropriated under the terms ofsale.
ii) Sales are inclusive of Excise duty, incidental charges, servicing and testing charges, if any,recovered and are net of discounts and rebates. Subsidy received from the government onfertiliser sales is included and shown under sales.
iii) Sales tax collected from customers and remitted to the authorities is not reflected in theProfit & Loss account and on completion of the sales tax assessments, the net liability, ifany, payable by the company, is charged to the Profit & Loss account.
iv) Interest on investments and deposits is booked on a time proportion basis taking into accountthe amounts invested and the rate of interest.
v) Dividend income is accounted for in the year in which the right to receive the payment isestablished.
10. FOREIGN EXCHANGE TRANSACTIONS
a) Transactions in foreign currency are initially accounted at the exchange rate prevailing on thedate of the transaction, and adjusted appropriately, with the difference in the rate of exchangearising on actual receipt/payment during the year.
30
b) At each Balance Sheet date
l Foreign currency monetary items are reported using the rate of exchange on that date
l Foreign currency non-monetary items are reported using the exchange rate at whichthey were initially recognized
c) In respect of forward exchange contracts in the nature of hedges
l Premium or discount on the contract is amortized over the term of the contract
l Exchange differences on the contract are recognized as profit or loss in the period inwhich they arise.
11. EMPLOYEE BENEFITS
a) Company's contributions to Employee's Provident fund and Employee State Insurance aremade under a Defined Contribution Plan, and are accounted for at actual cost in the year ofaccrual.
b) The company's liability to gratuity on retirement of its eligible employees is funded with theLife Insurance Corporation of India through and approved trust, under a Defined Benefit Plan.The incremental expense thereon for each year is arrived at as per actuarial valuation and isrecognized and charged to the Profit and Loss Account in the year in which the employee hasrendered service.
c) Expense on account of unutilized \ unencashed leave is arrived at as per actuarial valuationand is recognized and charged to the Profit and Loss Account in the year in which employeehas rendered services in lieu of such leave.
d) Gains \ losses arrived at in the above actuarial valuations are charged to the profit and lossaccount immediately in each year.
e) Expenses under Voluntary Retirement Scheme are amortised over a period of five years.
f) Short term Employee Benefits like Salaries, Wages, Bonus etc are accounted for at cost inthe year in which the employee renders service.
12. TAXES ON INCOME
a) Current tax is determined as the amount of tax payable in respect of taxable income for theperiod, computed in accordance with the provisions of the Income Tax Act, 1961.
b) Deferred tax is recognised on timing differences between taxable and accounting income thatoriginate in one period and are capable of reversal in subsequent periods.
c) Deferred Tax assets arising on account of brought forward losses and unabsorbed depreciationas per Income Tax laws are recognized only when there is virtual certainty supported byconvincing evidence that such assets will be realized. Deferred Tax assets arising on othertemporary timing differences are recognized only if there is a reasonable certainty of realization.
31
13. IMPAIRMENT OF ASSETS
At the date of each Balance Sheet, the company evaluates internally, indications of the impairment,if any, to the carrying amount of its fixed and other assets. If any indication does exist, therecoverable amount is estimated at the higher of the realizable value and value in use, as consideredappropriate. If the estimated realizable value is less than the carrying amount, an impairment lossis recognized.
Reversal of impairment losses recognized in prior years is recorded when there is an indicationthat the impairment losses recognized for the asset no longer exist or have decreased. However,the increase in carrying amount of an asset due to reversal of an impairment loss is recognized tothe extent it does not exceed the carrying amount that would have been determined (net ofdepreciation) had no impairment loss been recognized for the asset in prior years.
14. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions are recognised only when there is a present obligation as a result of past events andwhen a reliable estimate of the amount of obligation can be made. Provisions are not discountedto their present value and are determined based on the best estimate required to settle the obligationat the reporting date. These estimates are reviewed at each reporting date and adjusted to reflectthe current best estimates.
Contingent liability is disclosed for (i) Possible obligation which will be confirmed only by futureevents not wholly within the control of the Company or (ii) Present obligations arising from pastevents where it is not probable that an outflow of resources will be required to settle the obligationor a reliable estimate of the amount of the obligation cannot be made. The company does notrecognise contingent liabilities but the same are disclosed in the Notes.
Contingent assets are not recognised in the financial statements since this may result in therecognition of income that may never be realised.
15. SEGMENT REPORTING
The accounting policies adopted for segment reporting are in line with the accounting policies ofthe Company with the following additional policies for segment reporting.
Inter segment revenue has been accounted for based on the market related prices.
Revenue and expenses have been identified to segments on the basis of their relationship to theoperating activities of the segment. Revenue and expenses which relate to the enterprise as awhole and are not allocable to segments on a reasonable basis, have been included under"Unallocated expenses".
32
NOTES ON FINANCIAL STATEMENTS Note No. 2
SHARE CAPITAL As at As at
31-03-2014 31-03-2013
Authorised :
50,000 15% Cumulative Preference Shares of Rs.100/- each 50,00,000 50,00,000
25,00,000 Equity Shares of Rs.10/- each 2,50,00,000 2,50,00,000
3,00,00,000 3,00,00,000
Issued, Subscribed and paid-up :
20,14,541 Equity Shares of Rs.10/- each fully paid up 2,01,45,410 2,01,45,410
2,01,45,410 2,01,45,410
1. The company has only one class of share holders i.e Equity share holders. They have right to vote and
present in person and shall have one vote on show of hands and shall have one vote for every share
held by them on a poll. If on winding up of the company, the surplus, if any, after making payment to
preferential creditors shall be distributed to the members in proportion to their shares.
2. Details of share holders holding more than 5% of total number of shares
Mr. Rajiv Rangaswamy 2,52,131 12.51% 2,52,131 12.51%
Ms. S Nanditha 1,50,000 7.45% 1,50,000 7.45%
3. a) No shares were issued and alloted by way of bonus shares during the last five financial years.b) None of the shares were issued in pursuant to contract without payment being received in cash.
4. a) No fresh shares were issued and allotted during the current and previous financial year.b) No shares were bought back during the current and previous financial year.
Number ofShares held
% out of totalnumber of shares of the company
Number ofShares held
Name of the Share Holder
As at 31-03-2014 As at 31-03-2013
33
RESERVES AND SURPLUS Note No. 3
As at As at31-03-2014 31-03-2013
Investment Reserve
Figures as at the end of the current and previous reporting period 2,500 2,500
Investment Subsidy Reserve
Figures as at the end of the current and previous reporting period 35,00,000 35,00,000
General Reserve
Figures as at the end of the previous reporting period 1,53,51,173 1,53,51,173
Additions - -
Deductions - -
Figures as at the end of current reporting period 1,53,51,173 1,53,51,173
Surplus in Profit and Loss Account
Figures as at the end of the previous reporting period (59,29,479) 27,10,128
Add/(Less) : Profit / (Loss) for the year (73,93,975) (86,39,607)
Less: Proposed dividend - -
: Tax on Proposed dividend - -
: Transfer to Reserves - -
Figures as at the end of current reporting period (1,33,23,454) (59,29,479)
Total of Reserves and Surplus 55,30,219 1,29,24,194
34
LONG-TERM BORROWINGS Note No. 4
As at As at As at As at31-03-2014 31-03-2013 31-03-2014 31-03-2013
Non-Current Non-Current Current CurrentPortion Portion Maturities Maturities
A. Secured1. Term Loans from Andhra Pradesh
State Financial Corporation : 4,54,04,000 1,57,99,000 1,40,13,000 1,12,52,695 Secured by equitable mortgage of land and buildings and
hypothecation of all the fixed assets of the Company, presentand future, situated at Nidadavole and further guaranteed bythe Chairman and the Managing Director of the company intheir individual capacities
2. Term Loans from banks against security ofspecific assets :
- Andhra Bank - - - 3,59,626 - I C I C I Bank - 87,273 87,273 2,49,6243. Term Loans from companies against security of specific assets : - Sundaram Finance Limited - 7,50,861 7,52,125 18,40,096 - Hinduja Leyland Finance Limited - 12,24,352 11,19,356 11,00,936 - Cholamandalam Finance & Investment Co. Limited 7,10,113 - 4,31,526 -
Total (a) 4,61,14,113 1,78,61,486 1,64,03,280 1,48,02,977B. Unsecured1. Deferred payment liabilities
Total (b) 89,20,000 2,31,03,089 47,25,000 85,86,265
Total (a+b) 5,50,34,113 4,09,64,575 2,11,28,280 2,33,89,242
i. a) Term loans from APSFC carries interest @15.50% and is repayable in following manner :Instalments payable for the year 2015-16 Rs.1,50,48,000/-, 2016-17 Rs.1,50,48,000/-,
2017-18 Rs.1,03,51,000/-, 2018-19 Rs.46,22,000/- and 2019-20 Rs.3,35,000/-.b) The company made delays in repayment of installments. However there is no continous
default as on date of Balance Sheet.ii. a) Term loan from ICICI BANK represents loans borrowed for acquisition of motor cars/lorries against
their security and carries interest @ 12.25%.b) There is no continous default in repayment of installments as on date of Balance Sheet.
iii. a) Term loan from Sundaram Finance Limited represents loans borrowed for acquisition of motorcars lorries against their security and carries interest @ 12.88% and 16.25%.
b) There is no continous default in repayment of installments as on date of Balance Sheet.lorries against their security and carries interest @ 11.97%.
35
b) There is no continous default in repayment of instalments as on date of Balance Sheet.v) a) Term loan from Cholamandalam Finance Limited represents loans borrowed for acquisition of
motor cars/lorries against their security and carries interest @ 14.50%. Instalments payable forthe year 2015-16 Rs.4,98,478/- and 2016-17 Rs.2,11,635/-.
b) There is no continous default in repayment of instalments as on date of Balance Sheet.vi) Interest Free Sales Tax Loan is repayable in a period of 14 years and is payable at end of 14th year
from the year of availment. There is no default in repayment of instalments. However, the companyrepaid the entire amount of loan under preclosure and consequently the commercial taxesdepartment waived an amount of Rs.39,41,848/-.as a consideration of preclosure.
vii) Fixed Deposits carries interest @9% and are repayable Rs.54,50,000/- in 2015-16 andRs.34,70,000/- in 2016-17. There is no default in repayment of FD amount on maturity.
DEFERRED TAX LIABILITIES (Net) Note No. 5
As per previous year Balance Sheet 1,12,25,688 1,27,56,921Add/(Less) : Liability / (Asset) for the year (23,91,826) (15,31,233)
a) Reconcilation for present value of obligations Present value of obligations as at
beginning of year 69,79,210 1,10,98,346 16,82,442 16,46,402 Interest Cost 5,58,337 8,87,868 1,34,595 1,31,712 Current Service Cost 6,79,563 5,78,563 12,647 10,740 Benefits paid 25,88,662 15,76,440 12,32,077 10,75,840 Acturarial loss / (gain) on obligation 52,44,963 (40,09,127) 10,42,397 9,69,428 Present value of obligations as at end of year 1,08,73,411 69,79,210 16,40,004 16,82,442
b) Reconcilation for Fair V alue of Plan Asset s Fair value of plan assets at beginning of year 76,82,115 85,55,650 - -
Expected return on plan assets 5,71,060 7,02,905 - - Contributions - - - - Benefits paid 25,88,662 15,76,440 - - Actuarial gain on plan assets - - - - Fair value of plan assets at the end of year 56,64,513 76,82,115 - -
c) Expenses Recognised in statement of Profit & loss Current Service cost 6,79,563 5,78,563 12,647 10,740
Interest Cost 5,58,337 8,87,868 1,34,595 1,31,712 Expected return on plan assets (5,71,060) (7,02,905) - - Net Actuarial loss / (gain) recognized in the year 52,44,963 (40,09,127) 10,42,397 9,69,428 Expenses / (Income) to be recognised in the profit & loss 59,11,803 (32,45,601) 11,89,639 11,11,880
d) Net Liability Recognised in the Balance Sheet
Present value of obligations as at the end of year 1,08,73,411 69,79,210 16,40,004 16,82,442 Fair value of plan assets as at the end of the year 56,64,513 76,82,115 - - Funded status (52,08,898) (7,02,905) - - Net Liability / (Asset) Recognized in the Balance Sheet 52,08,898 (7,02,905) 16,40,004 16,82,442
DISCLOSURES REQUIRED BY ACCOUNTING STANDARD-15 (REVISED) - EMPLOYEE BENEFITS
38
Secured1. Working Capital Loan from Andhra Bank
Cash Credit 4,17,07,717 7,05,47,210Buyers Credit Facility 8,97,69,144 4,66,18,823Secured by Hypothecation of Raw Materials, Finished and semiFinished Goods, spares, book debts and subsidy receivablefrom the Government, and further secured by a second chargeon the the fixed assets of the company present and future andguaranteed by the Chairman and the Managing Director of theCompany in their individual capacitiesThe above loans carries interest at following rates.Andhra Bank - 15.50%
2. Over - Draft from Andhra Bank 27,12,851 26,25,609Secured against Fixed Deposits
13,41,89,712 11,97,91,642
SHORT-TERM BORROWINGS Note No. 8
As at31-03-2014
As at31-03-2013
Dues to: Small and Micro Enterprises * - - : Others 9,46,28,922 10,91,52,062
9,46,28,922 10,91,52,062
TRADE PAYABLES Note No. 9As at
31-03-2014As at
31-03-2013
Current maturities of long-term debt (Refer Note No. 4) 2,11,28,280 2,33,89,242Interest accrued but not due on borrowings 2,41,753 8,00,459
Unclaimed dividends 2,56,426 3,19,501Other payables: - Advance received from customers 1,09,30,408 1,07,45,344 - Employee related payments 23,92,737 36,81,549 - Statutory liabilities 24,10,826 29,66,441 - Other Liabilities 2,15,06,008 2,22,76,313 - Due to Directors - 2,80,000
5,88,66,438 6,44,58,849
OTHER CURRENT LIABILITIES Note No. 10As at
31-03-2014As at
31-03-2013
Note : The unclaimed dividends represents those relating to the year 2006-07 to 2011-12 and no partthereof has remained unclaimed for a period of 7 years or more from the date they became duefor payment requiring transfer to Investor Education Protection Fund.
PARTICULARS
PARTICULARS
PARTICULARS
* The Company has no information about the status of their creditors fallen under Micro, Small and MediumEnterprises Development Act, 2006. Hence the disclosure requirement under the said Act has not been furnished.
PARTICULARS OF SALE OF PRODUCTS (GROSS)Finished Goods
Super Phosphate 28,68,27,680 13,24,18,894Sulphuric Acid 20,02,239 1,38,76,613NPK Granules 7,21,51,681 3,25,63,574Bio-Fertiliser 47,93,607 64,26,045Acetic Acid 81,164 74,38,326Ethyl Acetate - -CO2 Gas 1,69,58,009 2,33,33,599Stock-in-Trade - Neem Powder - 8,81,430 - CO2 Gas - 6,38,643Computer Software Packages 5,47,09,897 5,59,64,136
43,75,24,277 27,35,41,260
2013-14 2012-13 Rs. Rs.
OTHER INCOME Note No. 19
Interest Received from Banks & Others 24,06,690 27,97,674Dividend Received 6,064 6,280Others :Transport Charges Collected 1,11,199 3,23,310Profit on Sale of Assets 5,36,740 99,08,868Credit balances written back 8,51,886 49,150Miscellaneous receipts 1,80,115 1,37,775Excess Provisions made in earlier yearscredited back (group gratuity) - 32,45,601
30,48,29,294 18,17,27,400Less: Sale of raw material - 41,69,547Closing stock 4,09,59,285 1,77,14,155
TOTAL 26,38,70,009 15,98,43,698
COMPONENTS OF MATERIAL CONSUMEDRock Phosphate 15,86,41,152 9,18,47,557Sulphur - 1,44,28,590Sulphuric Acid 4,64,27,724 2,07,78,819Urea,MOP, DAP etc., 5,19,71,692 2,24,93,655Lignite and Chemicals 15,23,413 20,89,188Impured Denature Spirit - 27,41,256CO2 Gas 53,06,028 53,35,640Others - 1,28,993
26,38,70,009 15,98,43,698
2013-14 2012-13 Rs. Rs.
Comp arison between consumption of imported and indigenous raw materials during the year .
Raw Materials
- Imported 15,86,41,152 60.12 10,16,87,091 63.62
- Indigenous 10,52,28,857 39.88 5,81,56,607 36.38
TOTAL 26,38,70,009 100.00 15,98,43,698 100.00
2013-14 2012-13 Value % Value %
PURCHASE OF STOCK-IN-TRADE Note No. 21
Neem Powder - 7,50,860 Co2 Gas - 4,81,562
- 12,32,422
2013-14 2012-13 Rs. Rs.
PARTICULARS
PARTICULARS
PARTICULARS
45
CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROCESS AND STOCK-IN-TRADE Note No. 22
A. Opening StockFinished Goods 3,88,91,072 77,11,822Stock-in-Trade - Neem Powder 79649Less : Stock returned 60000 19,649 -Work-in-Process 8,95,800 8,13,000
A 3,98,06,521 85,24,822
B. Closing StockFinished Goods 2,20,00,495 3,88,91,072Stock-in-Trade - Neem Powder 19,649 79,649Work-in-Process - 8,95,800
B 2,20,20,144 3,98,66,521
(A-B) 1,77,86,377 (3,13,41,699) Add/(Less) : Variation in excise duty on stocks (1,62,477) (4,77,679)
(Increase) / decrease in Invertories 1,76,23,900 (3,18,19,378)
COMPONENTS OF FINISHED GOODS, WORK-IN-PROCESS AND STOCK-IN-TRADE
A. Opening Stock Super Phosphate 3,82,86,879 88 Sulphuric Acid 1,28,772 53,80,941 NPK Granules - 8,760 Bio-Fertiliser 2,32,656 36,016 Acetic Acid 1,49,353 22,57,530 CO2 Gas 93,412 28,487 Stock-in-Trade - Neem Powder 79,649 - Computer Software Packages (WIP) 8,95,800 8,13,000
3,98,66,521 85,24,822
B. Closing Stock Super Phosphate 2,17,66,090 3,82,86,879 Sulphuric Acid 3,371 1,28,772 NPK Granules - - Bio-Fertiliser 55,684 2,32,656 Acetic Acid - 1,49,353 CO2 Gas 1,75,350 93,412 Stock-in-Trade - Neem Powder 19,649 79,649 Computer Software Packages (WIP) - 8,95,800
2,20,20,144 3,98,66,521
As at31-03-2014PARTICULARS
As at31-03-2013
46
EMPLOYEE BENEFIT EXPENSES Note No. 23
Salaries, Wages and Bonus 5,15,82,804 5,18,30,355
Contribution to PF, Gratuity, ESI and other funds 87,25,773 27,86,655
Workmen and Staff Welfare Expenses 19,11,744 19,94,343
6,22,20,321 5,66,11,353
2013-14Rs.
PARTICULARS 2012-13Rs.
FINANCE COSTS Note No. 24
INTEREST PAID ON :- Working Capital Loans 62,50,676 86,90,493- Term Loans 1,01,71,421 88,36,482- Finance Charges 23,38,376 31,07,937
Other Borrowing Cost 62,34,666 45,29,910
2,49,95,139 2,51,64,822
2013-14Rs.
PARTICULARS 2012-13Rs.
DEPRECIATION AND AMORTISATION Note No. 25
Depreciation 98,41,273 1,10,85,139
Amortisation 1,04,476 97,913
99,45,749 1,11,83,052
2013-14Rs.
PARTICULARS 2012-13Rs.
47
OTHER EXPENSES Note No. 26
Manufacturing expensesStores, Chemicals and Packing Materials 1,28,51,821 76,27,232Power and fuel 1,38,73,195 1,70,06,551Repairs to Building 2,31,977 4,47,766Repairs to Machinery 37,46,366 99,71,717Repairs to Other Assets 19,13,816 12,56,061Tools Written off 18,667 11,749
A 3,26,35,842 3,63,21,076
Selling and Distribution ExpensesCommission on Sales - -Rebate and Incentive on Sales 13,00,319 6,97,810Other selling and Distribution Expenses 1,54,83,627 79,50,863
- Towards Statutory audit 1,40,450 1,40,450- Tax audit and taxation matters 39,326 39,326- Certification and other services 1,61,237 1,69,080- Out of Pocket Expenses - 4,390- Towards Cost Aduit 47,500 47,500
Exchange Difference (Net) 91,39,951 57,82,366Donations - 5,000Advertisement and Business Promotion Expenses 3,01,140 3,07,474Directors Sitting fee 1,20,000 1,40,000Miscellaneous expenses 1,13,00,072 1,50,09,859Debit Balances Written off 12,91,661 62,348
C 2,86,65,787 2,77,02,090
TOTAL (A+B+C) 7,80,85,575 7,26,71,839
2013-14Rs.PARTICULARS
2012-13Rs.
48
27. CONTINGENT LIABILITIES :Outstanding guarantees to Banks including letter ofcredit opened with Bankers for purchase of material 5,90,000 Nil
28. VALUE OF IMPORTS MADE BY THE COMPANY DURING THE YEAR
CALCULATED ON CIF BASIS
a) Raw Materials 13,36,45,130 13,07,22,974
29. CONSUMPTION OF COMPONENTS, STORES AND SPARES (Charged to appropriate heads)
30 Disclosure pursuant to “AS-18 Related Party Disclosures”
Nature of transaction Enterprises overwhich relatives ofKey managementpersonnel havesignificant influence
Key managerialpersonnel
Relatives ofKey managerialpersonnel
I. Details of transactions:a) Purchase of goods/services from
- The Jeypore Sugar Company Limited 25,713b) Sale of goods/services to
- The Jeypore Sugar Company Limited 7,77,334c) Interest paid to
- Dr. SRK Prasad 3,15,000- Smt. Rajeswary Ramakrishnan 4,59,000- Sri. R. Prabhu 74,700- Smt. S. Nalini 4,500- Ms. Nandita 79,200- Mr. Rajiv Ragaswamy 1,51,650- R.S. Industrial Corporation Limited 11,250
d) Sitting Fee Paid 40,000
II. Balances outstanding as on 31.3.2014a) Amount due to
- The Jeypore Sugar Company Limited 1,74,00,036b) Investment in equity shares of
- The Jeypore Sugar Company Limited 8,64,942- Radha Krishna Mills Limited 87,565
c) Fixed deposits with company held by- Dr. SRK Prasad 35,00,000- Smt. Rajeswary Ramakrishnan 51,00,000- Sri. R. Prabhu 8,30,000- Smt. S. Nalini 50,000- Ms. Nandita 8,80,000- Mr. Rajiv Ragaswamy 16,85,000- R.S. Industrial Corporation Limited 1,25,000
d) Holding in share capital of the company by- The Jeypore Sugar Company Limited 2,54,980- R.S. Industrial Corporation Limited 3,97,890- R M Corporation 37,290- V R K Grandsons 6,00,000- Dr. SRK Prasad 28,26,020- Smt. Rajeswary Ramakrishnan 15,12,000- Sri. R. Prabhu 5,22,000- Smt. S. Nalini 26,51,850- Ms. Nandita 15,00,000- Mr. Rajiv Ragaswamy 35,23,940
50
Names of the related parties:
1) Enterprises over wh ich relatives of Key management personnel have significant influ-ence
a) The Jeypore Sugar Company Limited
b) Jeypore Sugar Finance & Investment Corporation Limited
c) RS Industrial Corporation (P) Ltd.,
2) Key managerial personnel:
a) Dr. S.R.K. Prasad, Managing Director
3) Relatives of Key managerial personnel:
a) Smt. Rajeswary Ramakrishnan - Mother
b) Sri. R. Prabhu - Brother
c) Smt. S. Nalini - Wife
d) Mr. Rajiv Rangaswamy - Son
e) Ms. S. Nandita - Daughter
51
31) Expenditure incurred in foreign currency:
a) Foreign Travel (Excl. tickets purchased) Nil 1,29,160
32) Income earned in foreign currency from export of Software and Services during the year is Rs.5,47,09,897/- (Previous year Rs. 5,21,00,063).
33) Outstanding balances in respect of Sundry Debtors, Sundry Creditors and Loans & Advances aresubject to confirmation from the parties. In the opinion of the Board of Directors, the CurrentAssets, Loans and Advances have a value on realisation in the ordinary course of business at leastequal to the amount at which they are stated.
34) The company has not received information from vendors regarding their status under the Micro,Small and medium Enterprises Development Act, 2006 and hence disclosure relating to amountsunpaid as at the end of the year together with interest paid/payable under this Act cannot be given.
35) Revenue Expenditure Capitalised to during the year:
NATURE OF EXPENDITURE AMOUNT AMOUNT 2013-14 2012-13
India 38,46,78,746 21,78,77,124 39,42,95,894 39,29,65,178 58,30,097 58,71,059Malaysia, USA and Europe 5,47,09,897 5,59,64,136 - - - -
Total 43,93,88,643 27,38,41,260 39,42,95,894 39,29,65,178 58,30,097 58,71,059
Sales Revenue
Current Year Previous Year
Carrying amount assets
Current Year Previous Year
Additions to Fixed Assets
Current Year Previous Year
53
Notes:1) The company is organised into three main business segments, namely
a) Fertilisers and chemicals - comprising Chemical Fertilisers, Bio-Fertilisers Sulphuric acid andAcetic acid,
b) Industrial gases, andc) Software packages development and its services.
2) Segment have been identified and reported taking into account the nature of products, theorganisation structure, and internal financial reporting system.
3) The segment revenue in each of the segment includes sales only.
4) Expenses that are directly identifiable to segments are considered for segment result.Theexpenses which relate to the company as a whole are included under unallocable expenditure.
37) Figures for the previous year have been regrouped wherever required to confirm to requirements ofrevised schedule - VI.
38) Paisa have been rounded off.
Per our report annexedfor BRAHMAYYA & COChartered Accountants Firm Regn.no.000513S(Sd.) P. Lakshmana RaoPartnerICAI Membership No.13254
l A Member / Proxy wishing to attend the meeting must complete this Admission Slip and hand it over at the entrance.
l If you intend to appoint a Proxy, please complete the Proxy Form below and deposit it at the Company’s RegisteredOffice, 48 hours before the meeting. Please ensure that the Proxy brings this Admission Slip with him for the meeting.
NAME OF PROXY (IF ANY) IN BLOCK LETTERS SIGNATURE OF MEMBER / PROXY
66TH ANNUALGENERAL MEETING ON15TH SEPTEMER 2014
AT 12.00 Noon . AT NARADA GANA SABHA314, T.T.K ROAD, ALWARPET, CHENNAI - 600 018.
I/We.......................................................................................... of .......................................................................................................................... in the district of
....................................................................................................................................... being a member/members of the above named Company hereby appoint
................................................................................................. of ........................................................................................................................... in the district of
..................................................................................................................................................................................................................................... or failing him/her
................................................................................................ of ............................................................................................................................ in the district of
................................................................................................................................................................................................................................ as my/our proxy
to vote for me/us on my/our behalf at the 66th Annual General Meeting of the Company to be held on 15th September 2014 and at any adjournment thereof.
As witness my (our) hand(s) this.........................................................................................................................day of..........................................................2014.
Signed by the said.................................................................................................................................................................. ...............................................
NO. OF SHARES FOLIO
RECEIVED ON TIME CODE
* This Proxy Form must be duly completed and received at the Company’s Registered Office 48 hours before the meeting