ktl anual rport 2007 08
TRANSCRIPT
-
7/28/2019 Ktl Anual Rport 2007 08
1/36
KakatiyaTextilesLimited
26thAnnualReport2007-2008KAKATIYATEXTILESLIMITED
-
7/28/2019 Ktl Anual Rport 2007 08
2/36
ManagingDirector SriSumanthRamamurthiBoardofDirectors SriCSKPrabhu
SriSSRKoteswaraRaoDrIVenkatRao
CompanySecretary Mr RSrinivasanAuditors M/sKRavi&CoBankers AXISBankLtd.
AndhraBankShareTransferAgents IntimeSpectrumRegistryLtd.RegisteredOffice ELGITOWERS
737D,GreenFieldsPuliakulamRoad,Coimbatore-641045Phone:0422-2311711/4351711Fax:0422-2311611
Mill Nallabandagudem-508206KodadMandalNalgondaDistrictAndhraPradeshPhone:08683-284223,284226
Contents PageNo.
NoticetotheMembers 3DirectorsReportandManagement
Discussion&Analysis 4ReportonCorporateGovernance 7
AuditorsReport 13BalanceSheet 16ProfitandLossAccount 17Schedules 18NotesFormingPartofAccounts 22CashFlowStatement 25
KAKATIYATEXTILESLIMITEDNoticeofAnnualGeneralMeetingNOTICEisherebygiventhatthe26thAnnualGeneralMeetingoftheShareholdersoftheCompanywillbeheldonWednesdaythe24thSeptember2008at11.00AMatElgiTowers,737D,GreenFields,PuliakulamRoad,
Coimbatore-641045,totransactthefollowingbusiness:
OrdinaryBusiness:1.Toreceiveandadopt theBalanceSheetas
at31stMarch2008and theProfitandLoss
Accountfortheyearendedonthatdate,
theReportsoftheDirectorsandAuditors
thereon.
-
7/28/2019 Ktl Anual Rport 2007 08
3/36
2.ToappointaDirectorintheplaceof
Mr.SSRKoteswaraRao,whoisretiring
byrotationandbeingeligibleoffershimself
forreappointment.3.ToappointaDirectorintheplaceof
DrIVenkatRao,whoisretiringbyrotation
andbeingeligibleoffershimselffor
reappointment.4.To consider the re-appointment of
M/s.K.Ravi&Co.,CharteredAccountants,
asAuditorstoholdtheofficetillthe
conclusionofthenextAnnualGeneral
Meetingandtofixtheirremuneration.SpecialBusiness:5.ToConsiderandifthoughtfit,topasswith
orwithoutmodification,thefollowing
resolutionasaSpecialResolution.RESOLVEDTHATpursuanttotheprovisio
nsofSection198,269,309,310,316andoth
erapplicableprovisionsreadwithScheduleX
IIIoftheCompaniesAct,1956,MrSumanthRamamurthibeandisherebyappointed
asManagingDirectoroftheCompanyfor
aperiodof3yearsfrom30.05.2008t
o29.05.2011withoutanyremuneration,u
ntilotherwiseresolvedbytheBoardofDirector
s,withsuchpowersandfunctionsastheBoa
rd
ofDirectorsmayfromtimetotimerequirehimtoexercise.
ByOrderoftheBoardCoimbatore SumanthRamamurthi30thMay,2008 ManagingDirector
Notes:1. EVERYMEMBERENTITLEDTOATTENDAND
VOTEATTHEMEETINGISENTITLEDTO
APPOINTAPROXY.SUCHPROXYNEEDNOT
BEAMEMBEROFTHECOMPANY.2.Instrumentappointingaproxyshouldbedepositedattheregisteredofficeofthecompanynotlessthan
48hoursbeforethecommencementofthemeeting.3.Theregisterofmembersandsharetransferbook
ofthecompanywillremainclosedfrom10.09.2008
to24.09.2008bothdaysinclusive.4.Members/proxiesshouldbringtheattendanceslip
dulyfilledinforattendingthemeeting.5.Shareholdersarerequestedtobringthecopyof
annualreporttothemeetingandarealsorequestedtosendtheirqueries,ifany,ontheaccountstothe
registeredoffice.6.Membersarerequestedtoavailthefacilityofconverting
theirphysicalshareholdingintoelectronicmodeof
shareholding(DEMAT)fortheirownconvenience.7.Briefnoteondirectorsseekingreappointmenthas
beengivenintheReportonCorporategovernance.8.TheSpecialBusinessandexplanatorystatement
annexedwiththisreportisthenoticefor
complyingwiththeprovisionsofSection302oftheCompanies
Act,1956.EXPLANATORYSTATEMENT:(PursuanttoSection173(2)oftheCompaniesAct,1956)ItemNo.5MrSumanthRamamurthiwasappointedasManagingDirectoroftheCompanybytheBoardofDirectorsattheirmeetingheldon30.05.2008
for
a
period
of
3
years
with
effect
from30.05.2008withoutanyremuneration,onthetermsandconditionssetoutintheresolutioninItemNo.5.AsperSection269readwithScheduleXIIIoftheCompaniesAct,1956,theappointmentshallbesubjecttotheapprovalof
-
7/28/2019 Ktl Anual Rport 2007 08
4/36
theshareholdersofthecompanyingeneralmeeting.Hence,theresolutionisplacedforyourapproval.MrSumanthRamamurthiistheManagingDirectorofM/sSuperSpinningMillsLtd.NoneoftheDirectorsexceptMrSumanthRamamurthi,isinterestedintheresolution.Thetermsoftheappointmentassetoutintheresolutionmayberegardedasanabstractof
thetermsofcontractandmemorandaofinterestforthepurposeofSection302oftheCompanies
Act,1956.ByOrderoftheBoard
Coimbatore SumanthRamamurthi
30thMay,2008 ManagingDirector3
DirectorsReportandManagementDiscussion&AnalysisDearMembers,YourDirectorspresenttheir26thAnnualRep
ortofthecompanyfortheyear2007-08togetherwiththeBalanceSheetasat31stMarch2008andtheProfit&LossAccountfortheyear
endedon
that
date.FinancialResults (Rs.Lacs)Particulars 2007-08 2006-07
Sales/ConversionCharges/otherIncome 908.51
853.53GrossProfitbeforeDepreciation 203.96 151.98andInterestDepreciation 52.06 54.54Interest 110.99 107.20NetProfit/(Loss) 39.31 (9.76)Dividend
Duetoinadequateprofits,nodividendhasbeenrecommendedforthefinancialyear2007-08.
FixedDepositsTheCompanyhasnotaccepted/invitedfixed
deposits.
PerformanceYourCompanyhasearnedatotalincomeofRs.908.51LacsandincurredaprofitofRs.39.31Lacs,ascomparedtotheturnoverofRs.853.53LacsandnegativeprofitofRs.10.43Lacsfortheyear2006-07.MANAGEMENTDISCUSSIONANDANALYSISREPORTIndustryConditionsTextileindustryinIndiaplaysavitalrolein
theIndianeconomyanditscontributiontothegrowthoftheeconomyissignificant.IndiacontinuestobeoneofthedominantplayersintheglobaltextilemarketnexttoChina.Mushroomingofnewunitsbothinorganized
4
-
7/28/2019 Ktl Anual Rport 2007 08
5/36
KAKATIYATEXTILESLIMITEDandsmall-scalesectorshascreatedcut-throatcompetitioninthemarket.Duetovolatilenatureoftheindustrytheprofitabilitymarginshave
comedowndrastically.GovernmentofIndiahasfurtherextendedtheTechnologyUpGradationFundSchemeandmostofthespinningunitsareintheprocessofcapacityexpansion/modernization/renovationtoimprovethequalityandquantity.Thecurrencyfluctuationduringtheyearhasalsoaffectedtheexportperformanceoftheindustry.TheGovernmentofIndiaiscontinuouslymonitoringthesituationandpromisedtoextendallthepossiblemeasurestoturntheindustrytopositivemood.Therefore,thefuturescopeofthetextilebusinessispromising.OpportunitiesandThreatsThetextileindustryismuchdependentupontheavailabilityofqualitycottonatcompetitiverates.Wideusageofqualityhybridcottonseedsincludinggeneticallymutatedvarietieshas
resultedinincreasedcottonyieldwhencomparedtotraditionalvarieties.Ontheotherhandthedemand fororganiccotton isspirallinginUSandinotherWesterncountries.Segment
or
Product-wise
performanceTheentireoperationsoftheCompanyrelatetoonlyonesegmentvizTextiles.Therefore,segment/product-wisedetailsarenotapplicablehere.
CompanyOutlookTheCompanyisstillcontinuingtheconversionworkandtheCompanyiswaitingforfavorable
trendtocommenceitsownproduction.Thecompanysproposaltoswitchovertoownproductionhasbeenfurtherdelayedduetopoorrealizationofyarnpricesandfluctuationinavailabilityofqualitycottonatcompetitiveratesinthemarket.RisksandConcernsYour
company
isstill
operating
the
unit
witha
verythinprofitmargin.Themillneedsthesupportoflatesttechnology,whichrequireshugefinancialoutlay.
KAKATIYATEXTILESLIMITEDDirectors
MrSSRKoteswaraRaoandDrIVenkatRaodirectorsofthecompanyretirebyrotationandbeingeligibleofferthemselvesforre-appointment.
MrLGRamamurthi,ChairmanandManagingDirectorofthecompanyhasresignedfromtheboardwitheffectfrom31.03.2008.WedeeplyregrettoinformthemembersaboutthesaddemiseofourbelovedShriL.G.Ramamurthi
-
7/28/2019 Ktl Anual Rport 2007 08
6/36
on13thMay2008.ShriL.G.RamamurthiwasaguidingforceoftheCompanyeversincehetookoverasChairmanfromtheyear2006.Heplayedamajorroleinshapingthegrowthand
developmentoftheCompanyandtheBoardplacesitshighestappreciationforhisvaluableservicesrenderedduringhistenure.MrSumanthRamamurthihasbeenappointedastheManagingDirectorofthecompanywitheffectfrom30thMay2008.Auditors
M/sK.
Ravi
&Co,
the
Auditors
of
the
comp
anyretireattheensuingAnnualGeneralMeetingandhavegiventheirconsentforreappointment.
DirectorsResponsibilityStatementPursuanttotherequirementundersection217(2AA)oftheCompaniesAct,1956withrespecttoDirectorsResponsibilityStatement,itisherebyconfirmed:i) Thatinthepreparationoftheaccountsfor
thefinancialyearended31stMarch2008,
theapplicableaccountingstandardshave
beenfollowedalongwithproperexplanation
relatingtomaterialdepartures;ifany.ii) ThattheDirectorshaveselectedsuch
accountingpoliciesandappliedthem
consistentlyandmadejudgmentsand
estimatesthatwerereasonableandprudent
soastogiveatrueandfairviewofthe
stateofaffairsofthecompanyattheend
ofthefinancialyearandofthelossofthe
companyfortheyearunderreview.
-
7/28/2019 Ktl Anual Rport 2007 08
7/36
iii)Thatthedirectorshavetakenproperand
sufficientcareforthemaintenanceofadequateaccountingrecords inaccordanc
ewiththeprovisionsoftheCompaniesAc
t, 1956,forsafeguardingtheassetsofthecompanyandforpreventinganddetectin
gfraudandotherirregularities;and
iv)ThattheDirectorshavepreparedthe
accountsforthefinancialyearended31st
March2008onagoingconcernbasis.HumanResourcesEmployer-Employeerelationsremainedcordialduringtheyearunderreview.Asregards,informationpursuanttoSection217(2A)oftheCompaniesAct,1956,therearenoemployeescoveredbythesaidprovisions.InternalcontrolsystemsandtheiradequacyThecompanyhasadequateinternalcontrol
systems.TheManagementaswellasstatutoryauditorstaketheperiodicalreportsofofficer(s)
inchargeofinternalcontrolsystemintoaccount.TheadequacyoftheinternalcontrolsystemsisreviewedbytheAuditCommitteeatperiodicintervals.ReplytotheQualificationsofAuditorsDuetoinadequacyofprofits,thecompanycouldnotprovideforDepreciation&Gratuitypertainingtoearlieryears.Acknowledgement
YourDirectorsplaceonrecordofthesincereappreciationofthecontributionmadebytheemployeesoftheCompanyatalllevels.YourDirectorsfurtherwishtoplaceonrecordtheirappreciationfortheinvaluablesupportgivenbyallotherauthoritiestotheCompany.
OnbehalfoftheBoardSumanthRamamurthiDr.I.VenkataRaoManagingDirectorDirectorCoimbatore
30thMay,
2008
5
AnnexuretoDirectorsReportA.Energyconservationmeasures: Modificationinhumidificationsystemsby
foggingofwaterinspinningplant-househad
resultedinsignificantreductioninpower
consumption.
Compressorair-linemodificationsand
arrestingoftheairleakagesatdifferentdepartmentshelpedtoreducetheenergy
consumption.
Periodicenergycontrolmeasureslike
optimizationofmotorsizesetcarein
progresstoreducetheenergyconsumption.
-
7/28/2019 Ktl Anual Rport 2007 08
8/36
KAKATIYATEXTILESLIMITED Renovationofcertainequipmentshasbeen
takenupduringtheyearunderreview,which
wouldreducetheConsumptionofpower.B.Research&Development:
TheCompanyistakingthehelpoftheSouth
IndiaTextileResearchAssociation(SITRA),whichhasbeenundertakingresearcho
nvariousissuesonbehalfofTextileMills.
C.Technologyabsorption,Adaptationand
Innovation:
Periodicup-gradationoftheTop-Roller
loadingsysteminRing-Framesarebeing takentoimproveinproduction&quality.D.Foreignexchangeearnings&outgo:Nil
FORM-AFormfordisclosureofparticularswithrespecttoconservationofEnergy
POWER&FUELCONSUMPTION 31.3.2008 31.3.20071.ELECTRICITY:
a)PURCHASEUnits (KWH) 76,87,023 72,40,157TotalAmount (Rs.) 2,52,33,695 2,38,00,291Rate/Unit (Rs.) 3.28 3.29
b)OWNGENERATIONTHROUGHDIESELGENERATORUnits (KWH) 35,613 71,366UnitsPerLtr.OfDieselOil (KWH) 3.20 3.25Cost/Unit (Rs.) 10.85 10.33
2.HUSK:Quantity (Kgs) Nil NilTotalCost (Rs.) Nil NilAverageCost (Rs.) Nil Nil
3.CONSUMPTIONPERUNITOFPRODUCTION:CottonYarn(40saveragecount) (Kgs.) 18,25,532 17,09,485Electricityconsumed (KWH) 77,22,636 73,11,523ConsumptionperUnitofProduction (KWH) 4.23 4.28
OnbehalfoftheBoardCoimbatore SumanthRamamurthi Dr.I.VenkatRao30thMay,2008 ManagingDirector Director
6
NameoftheDirector Mr SumanthRamamurthi Mr Koteswara
-
7/28/2019 Ktl Anual Rport 2007 08
9/36
DateofBirth(Age)DateofappointmentQualifications
Expertiseinspecificfunctionalarea
ShareholdingintheCompany
12.08.1959(49years)30.06.2006BScElectricalEngineer(USA)MorethantwodecadesofexperienceinTextilesandEngineeringIndustries
Holding14,65,506EquitySharesofthecompany
25.03.1943(6518.02.1999CharteredAccoAPracticingChAccountantandofM/sBrammaHehasmorethofexperience inFinance&TaxaNil
NameoftheDirector
AttendanceNo.ofotherCompaniesDirector&Committee
Member/Chairman
BoardMeetings
LastAGM
MrLGRamamurthi(Promoter)*MrSumanthRamamurthi(Promoter&Executive)**MrCSKPrabhu(Independent)
2
5555
No
YesYesYesNo
KAKATIYATEXTILESLIMITEDReportonCorporateGovernanceCompanysphilosophyoncodeofgovernanceCompanyshalladoptselfGoverningCorporateGovernancemodeltoadheretoalltherulesandregulationsofthestatutoryauthorities.Itshallalsodischargeitsduties,responsibilitiesandobligationinafairandtransparentmannerwiththeobjectofmaximizingthevalueofthestakeholdersnamelyshareholders,employees,financialinstitutions,suppliersandbusinesspartners.
BoardofDirectors-Category,Composition,BoardMeetings&AttendanceTheBoardcomprisesofFourDirectorsincludingoneExecutive,Non-ExecutiveandIndependentDirectors.
FiveBoardMeetingwereheldduringtheyearon23.08.2007,22.10.2007,31.01.2008,
16.04.2008
*Resignedfromtheboardon31.03.2008andhewasinExecutivePosition**AppointedastheManagingDirectorwitheffectfrom30.05.2008
-
7/28/2019 Ktl Anual Rport 2007 08
10/36
DetailsofDirectorsRetiringByRotationandSeekingRe-Appointment/Appointment
7
NameofDirector NameoftheCompany Positionheld MrSumanthRamamurthi
MrKoteswaraRaoSSRDrIVenkatRao
SuperSpinningMillsLtdElgiElectric&IndustriesLtdElgiUltraIndustriesLtdPrecot-MerdianLtdSaraElgiInsuranceAdvisoryPvtLtdElgiSoftwareandTechnologiesLtdSuperFarmProductsLtdElgiBuildingProductsLtdSaraElgiIndustrialR&DLtdSuperSaraTextilesLtdUnisankyo
Ltd
MPMRecreationAvcadesPvtLtd
ManagingDirectoDirectorDirectorDirectorDirectorDirectorDirectorDirectorDirectorDirector
DirectorDirector
NameoftheMember No.ofMeetingsAttendedMrKoteswaraRaoSSRMrCSKPrabhuDrIVenkatRao
4
4
4
KAKATIYA
TEXTILES
LIMITED
AuditCommitteeTheAuditCommitteehasbeenconstitutedasperSection292AoftheCompaniesAct,1956,aspertheGuidelinessetoutintheListingAgreementwiththeStockExchanges.Thetermsofreferenceinclude-q Overseeingfinancialreportingprocesses.q Reviewingperiodicfinancialresults,financialstatementsandadequacyofinternalcontrol
systems.
-
7/28/2019 Ktl Anual Rport 2007 08
11/36
q DiscussionwiththeAuditorsaboutthescopeofauditincludingtheirobservations.
TheAuditCommitteeisconsistingof3independentDirectors,ChairedbyShriKoteswar
aRaoSSR.
Duringtheyear4AuditCommitteeMeetingswereheldon23.08.2007,22.10.2007,31.01.2008
and
RemunerationCommitteeTermsofreferenceoftheRemunerationCommitteeinclude:q RecommendationforfixationandperiodicrevisionofcompensationoftheManagingDirector
forapprovalofBoardandq ReviewthesittingfeespayabletotheDirectors.TheRemunerationCommitteeiscomprisingof3independentDirectors,ChairedbyShri
KoteswaraRaoSSR.,ShriCSKPrabhu,andShriDrIVenkatRao,Members.Noremunerationcommitteemeetingwasheldduringtheyear.
8
Year Venue Date&Time 2007 ArdraConventionCentre,
NorthHuzurRoad,Coimbatore. 23.08.20075.00PM Non2006 NallabandagudemVillage,KodadMandal,
NalgondaDistrict,AndhraPradesh 29.09.20064.00PM AppoMrLChaChaTranSpec
2005 NallabandagudemVillage,KodadMandal,NalgondaDistrict,AndhraPradesh
30.09.2005
11.00AM NonNameoftheMember No.ofMeetingsAttendedMrCSKPrabhuMrLGRamamurthiMrSumanthRamamurthi
13
5
13
-
7/28/2019 Ktl Anual Rport 2007 08
12/36
KAKATIYATEXTILESLIMITEDTheCompanyhasnotpaidanyremunerationtoitsChairmanandManagingDirector.TheDirectorsarepaidsittingfeeattherateofRs.2000/-forattendingeachBoardmeetingandRs.500/-for
AuditCommitteesoftheBoard.TheDirectorsarenotpaidanycommission.TherewerenootherpecuniaryrelationshipsortransactionoftheDirectorsvis--visthecompany.
ThecompanyhasnotgrantedanystockoptiontoanyofitsDirectors.*Shareholders/InvestorGrievanceCommittee.TheShareholders/InvestorsGrievanceCommitteewascomprisingofMrLGRamamurthi,MrCSKPrabhu,MrKoteswaraRaoSSR,DrIVenkatRao,andMrSumanthRamamurthi.
Duringtheyear13meetingswereheldon:09.07.07,03.08.07,09.08.07,10.09.07,25.09.07,09.10.07,17.10.07,28.11.07,10.12.07,
17.01.08,06.02.08,03.03.08and25.03.08.*ConsequentupontheresignationofMrLGRamamurthifromtheboard,thecommitte
ehasbeenre-constituted,andnowthecommitteeiscomprisingofMr.CSKPrabhu,Mr.KoteswaraRaoSSR,
InvestorgrievanceredressalDuringtheyearthecompanyhadreceived4complaintsfromtheshareholdersandthe
samehavebeenredressedtothesatisfactionoftheshareholders.Therewerenocomplaintsoutstandingason31.03.2008.Thenon-executivedirectorsarenotholdinganysharesofthecompany.GeneralBodyMeetings
9
KAKATIYATEXTILESLIMITED
-
7/28/2019 Ktl Anual Rport 2007 08
13/36
Disclosure
(A)RelatedPartyTransactionsDisclosuresonmateriallysignificantrelatedpartytransactionsi.e.transactionsmadebytheCompanyofmaterialnature,withitspromoters,theDirectorsorthemanagement,theirsubsidiariesorrelativesetcthatmayhavepotentialconflictwiththeinterestoftheCompanyatlarge.
Noneofthetransactionswithanyoftherelatedpartieswereinconflictwiththeinterestof
theCompany.(B)CompliancesbytheCompanyDetailsofnon-compliancebytheCompany,penalties,stricturesimposedontheCompanybyStockExchangeorSEBI,oranystatutoryauthority,onanymatterrelatedtocapitalmarketduringthelastthreeyears.
SEBIimposedapenaltyofRs.1lacforthefailuretocomplywiththedisclosurerequirements
bytheerstwhilepromotersunderRegulation8(3)ofSEBI(SubstantialAcquisitionofShares
andTakeovers)Regulations,1997duringtheyears1999to2004,whichwaspaidin2007.(C)ShareholdersRightsMeansofCommunicationThequarterly,half-yearlyandannualresultsofthecompanyarepublishedintheEnglish,Tamilnewspapersviz.,TheFinancialExpressandMaalaimalar.TheCompanyhasnotmadeanypresentationtoanyInstitutionalInvestorsandanalystsduringtheyear.GeneralShareholdersinformationAnnualGeneralMeeting:
Date : 24.09.2008
Time : 11AMVenue : ElgiTowers
737D,GreenFieldsPuliakulamRoadCoimbatore641045.
FinancialCalendar : April01toMarch31.DateofBookClosure : 10.09.2008to24.09.2008(bothdaysinclusive)ListingonStockExchange : BombayStockExchangeLtd
HyderabadStockExchangeLtdStockCodes/Symbol :BombayStockExchangeLtd : 521054HyderabadStockExchangeLtd: 545/KAKTEX$
-
7/28/2019 Ktl Anual Rport 2007 08
14/36
TradingofsharesatBSEhasbeensuspendedfromtheyear2003onwardsduetonon-complianceofvariousclausesoflistingagreementbytheerstwhilepromotersandnowtheCompanyhascompliedwithalltheclausesoflistingagreementandthecompanyisactivelyengagedinthe
10
No.ofShares Shareholdersnum er
Percentage No.1-500
501-10001001-20002001-30003001-40004001-5000
5001-1000010001-Above
997040913829149
1410
94.11883.86101.30270.27380.13220.08500.13220.0944
Total 10593 100.0000 Category No.ofShares PercentagePromotersHoldingsMutualFunds/UTIBanks/Financial/InstitutionsBodiesCorporatesIndividualShareholdingupto1lacIndividualShareholdingof
2977094324001000
2223002457206118000
2600
51.2360.5580.0173.826
42.2882.0310.045
Total 5810600 100.00
KAKATIYATEXTILESLIMITEDprocessofgettingthesuspensionrevoked.Thelistingfeeandannualcustodialfeefortheyear2008-09hasbeenalreadypaidfor.ThesharesofthecompanyareveryinfrequentlytradedatHyderabadStockExchangeand,therefore,thecompanyisunabletofurnishthedataonhigh&lowquotationsmonthwise.ShareTransferSystem
AlltheapplicationsreceivedeitherfortransferordematerializationisbeingprocessedonlyaftergettingtheapprovalfromthemembersoftheShareholdersCommittee.ShareholdingpatternasonMarch31,2008
-
7/28/2019 Ktl Anual Rport 2007 08
15/36
TheCompanyssharescanbetradedindematerializedformandareavailablefortradingonboththedepositoriesinIndiaviz.,NationalSecuritiesDepositoryLimited(NSDL)andCentralDepositoryServices(India)Limited(CDSL).EquitysharesoftheCompanyrepresenting10.66%oftheCompanyssharecapitalaredematerializedasonMarch31,2008.UndertheDepositorySystem,theInternationalSecuritiesIdentificationNumber(ISIN)allottedtotheCompanyssharesisINE092E01011.CEOCertificateCertificateinrespectoffinancialstatements,accountingpolicies&internalcontrolforthefinancialyear2007-08wasgiventotheBoardbytheChairmanandManagingDirector.
11
KAKATIYATEXTILESLIMITEDPlantLocation:Nallabangudem-508206,KodadMandal,NalgondaDistrict,
AndhraPradesh.Phone:08683-284223&284226.AddressforCorrespondence:
RegisteredOffice:MrRSrinivasanCompanySecretaryandComplianceOfficerKakatiyaTextilesLtdElgiTowers,737D,GreenFieldsPuliakulamRoad,Coimbatore641045.e-mail:[email protected]
Registrar&ShareTransferAgent:IntimeSpectrumRegistryLimitedSurya,35,MayflowerAvenue,BehindSenthilNagarSowripalayam,Coimbatore641028e-mail:[email protected]:0422-2314792
Phone:0422-2311711/4351711Fax :0422-2311611
CodeofConductTheCodeofconductforBoardMembers,SeniorManagementPersonnelandtheEmployeesofthecompanywhichisbeingfollowedwillbesoonpostedonthewebsiteofthecompany.
DECLARATION
AsprovidedunderClause49oftheListingAgreementwiththeStockExchanges,allBoard
-
7/28/2019 Ktl Anual Rport 2007 08
16/36
MembersandSeniorManagementPersonnelhaveaffirmedcompliancewithKakatiyaTextilesLimitedcodeofBusinessConductandEthics.Coimbatore SumanthRamamurthi30th May, 2008 Managing Director
CERTIFICATE
ToThemembersofKakatiyaTextilesLtd.,WehaveexaminedthecomplianceofconditionsofCorporateGovernancebyKakatiyaTextilesLimited,totheyearendedon31stMarch,2008,asstipulatedinClause49oftheListingAgreementofthesaidCompanywithstockexchange(s).TheComplianceofconditionsofcorporategovernanceistheresponsibilityofthemanagement.Ourexaminationwaslimitedtoproceduresandimplementationthereof,adoptedbytheCompanyforensuringthecomplianceoftheconditionsoftheCorporateGovernance.Itisneitheranauditnoranexpressionofopiniononthefinancialstatementsofthecompany.Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,wecertifythattheCompanyhascompliedwiththeconditionsofCorporateGovernanceasstipulatedintheabove-mentionedListingAgreement.Westatethatnoinvestorgrievance(s)ispendingforaperiodexceedingonemonthagainsttheCompanyaspertherecordsmaintainedbytheShareholders/InvestorsGrievanceCommittee.WefurtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynortheefficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.
ForK.RAVI&Co.,CharteredAccountants
Coimbatore S.SIVAM30thMay,2008 Partner MembershipNo.207579
12
KAKATIYATEXTILESLIMITEDAuditorsReportTheMembersofKakatiyaTextilesLimited
WehaveauditedtheattachedBalanceSheetofyourcompanyasat31stMarch2008andtheProfitandLossAccountandCashFlowStatementoftheCompanyannexedtheretofor
theTwelve-monthperiodendedonthatdate.Thesefinancialstatementsaretheresponsibilityof the Companysmanagement. Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithauditingstandardsgenerallyacceptedinIndia.
-
7/28/2019 Ktl Anual Rport 2007 08
17/36
ThoseStandardsrequirethatweplanandperformtheaudittoobtainreasonableassurance about whether the
financialstatementsarefreeofmaterialmisstatement.
Anauditincludesexamining,onatestbasis,evidencesupporting the amounts
anddisclosures inthe financialstatements.Anauditalsoincludesassessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagementaswellasevaluatingtheoverallfinancialstatementpresentation.Webelievethatourauditprovidesareasonablebasisforouropinion.1. AsrequiredbytheCompanies(Auditors
Report)Order,2003,issuedbytheCentral
GovernmentintermsofSection227(4A)
oftheCompaniesAct,1956,weannex
heretoastatementonthemattersspecified
inparagraph4and5ofthesaidorder.2. Furthertoandsubjecttoourcommentsin
Annexurereferredtoinparagraph1above,
andsubjecttothenotesonaccounts,we
reportthat:a)Wehaveobtainedalltheinformati
onandexplanationswhichtothebesto
four knowledge and belief
were
necessaryfor
the
purpose
of
our
audit;
b)Inouropinionsubjecttothenoteon
accountingfordepreciationandgratuityasgiveninthereport,properbooksofaccount,asrequiredbyla
whavebeenkeptbythecompanys
o
farasappearsfromourexamination
ofthosebooks.
-
7/28/2019 Ktl Anual Rport 2007 08
18/36
c)TheBalanceSheet,ProfitandLoss
accountandcashflowstatementdealtwithbythisreportareinagreementwiththebooksofaccounts.
d)Inouropinionandsubjecttothenoteonaccountingfordepreciationandgratuityasgiveninthereport,theProfitandLossAccount,BalanceSheetandCashFlowStatementcomplywit
htheAccountingStandardsreferredtoi
nsub-section(3C)ofSection211ofth
eCompaniesAct,1956.
e)Onthebasisofwrittenrepresentations
receivedfromthedirectors,ason31stMarch2008,andtakenonrecordbytheBoardofDirectors,wereportthatnoneofthedirectorsaredisqualifiedason31stMarch2008frombeingappointedasadirectorintermsofclause(g)ofsub-section(1)ofSection274oftheCompaniesAct,1956.
f)Inouropinionandtothebestofour
informationandaccordingtotheexplanationsgiventous,thesaidaccountsgivetheinformationrequiredbytheCompaniesAct,1956inthemannersorequiredandsubjecttothenoteonaccountingfordepreciationand
gratuity
as
given
in
the
report,giveatrueandfairviewinconformity
withtheaccountingprinciplesgenerally
acceptedinIndiai.InthecaseoftheBalanceSheet,
ofthestateofaffairsofthecompanya
sat31stMarch,2008and
ii.InthecaseoftheProfitandLossAccount, ofthelossofthecompanyasat31st
March2008periodendedonthatdate.
iii.Inthecaseofcashflowstatement,of
thecashflowsfortheyearendedas
onthatdateNotesreferredtoinparagraphs(b)(d)and(f)above1.Depreciation:Thecompanyhasnot
provideddepreciationonfixedassetsfor
theperiod1-4-2001to31-3-2006.Thisis
notinaccordancewithAccountingStandard
13
6DepreciationAccountingissuedbyt
heInstituteofCharteredAccountantsofIndi
a.
As
a
result,
the
accumulated
depreciationand accumulated losses are
eachunderstatedbyRs.2,56,71,744/-.Then
etfixedassetsisoverstatedbythesam
eamountduetothenon-provisiono
fdepreciation.
2.Gratuityliability:Gratuityexpenseforthe
yearisaccountedonlytotheextentof
amountpaidduringtheyeartothefund
managedbyLIC.Thepaymentwasmadeaccordingtotheannualcontributionto
thegratuityfundasadvisedbyLIC.T
he
AnnexuretotheAuditorsReport(AsrequiredbyCompanies(AuditorsReport)Order,2003andreferredtoinParagraph3of
-
7/28/2019 Ktl Anual Rport 2007 08
19/36
ourreportofevendate)(i) (a)Thecompanyismaintainingrecords
containingquantitativedetailsandlocationoffixedassets.However,additionaldetailssuchascost,year
of
purchaseetc.,havetoberecordedtoensuremaintenanceofproperrecord
swithfullparticularsoftheassets.
(b)Asperinformation&explanationgiven
tous,theassetshavebeenphysically
verifiedbythemanagementduringthe
yearandthereisaregularprogramme
ofverificationwhich,inouropinion,isreasonablehavingregardtothesize
ofthecompanyandthenatureofitsasset
s.(c)Duringtheyear,thecompanyhasn
otdisposedanymajorassets.
(ii) (a)Themanagementhasphysicallyverified
theinventoriesduringtheyear,atregular intervalswhicharereasonabletosize
&natureofthecompany.(b)Theproceduresofphysicalverificati
onof inventories followed by
themanagementarereasonableandadequateinrelationtothesizeoft
hecompanyandthenatureofitsbusiness
.
14
KAKATIYATEXTILESLIMITEDaccountingofgratuityexpensefortheye
aronlytotheextentofpaymentmadeis
notinaccordancewithaccrualmethod
of
accounting.ThisisalsonotinaccordancewithAccountingstandard15Employ
eebenefits.Asaresult,theprovisionf
orgratuitytotheextentofRs.17,55,306/-
isnotmadeinthebooks.
ForK.RAVI&Co.,CharteredAccountants
S.SivamCoimbatore Partner30thMay,2008 (M.No207579)
(c)Thecompanyismaintainingproper
recordsofinventory.Thediscrepancies
noticedonverificationbetweenthe
physicalstocksandthebookrecords
werenotmaterial.(iii)(a)Thecompanyhastakenunsecured
loansfromthepartiescoveredunder
section301oftheCompaniesAct,
1956.Theamountofloanstakenfrom
thepartiescoveredunder301register
areasunderNoofpartiesAmountinvolved
1Rs.10,00,000(b)Therateofinterestandotherter
msandconditionsofloanstakenbyth
ecompanyarenotprimafacieprejudicia
ltothecompany
(c)Weareunabletocommentonthe
-
7/28/2019 Ktl Anual Rport 2007 08
20/36
regularityofrepaymentofinterestand
principalontheseamountsduringthe
year,asthereisnostipulationregardingrepaymentasperthetermsofthe loan.
(d)Thereisnostipulationregardingrepaymentoftheloanaspertheterm
s oftheloan.Accordingtotheinformationandexplanationsgiventous,the
repaymentofthe loan isnotdueduring
theyearasperthetermsoftheloan.(iv)Inouropinionandaccordingtothe
informationandexplanationsgiventous,
KAKATIYATEXTILESLIMITEDthereareadequateinternalcontrolprocedurescommensuratewiththesiz
eofthecompanyandthenatureofit
sbusinesswithregardtopurchaseso
finventory,fixedassetsandwithregardt
othesaleofgoods.Duringthecourse
ofouraudit,wehavenotobservedan
ycontinuingfailuretocorrectmajo
rweaknessesininternalcontrols.
(v) Asperinformation&explanationgivento usthecompanyhasenteredallthe
transactionswiththepartiestobeentered
under301register.Inouropinionand
accordingto the information andexplanationsgiventous,eachofthes
etransactionshavebeenmadeatprice
s,whicharereasonablehavingregardtot
he
prevailingmarketpricesattherelevanttime(vi) Duringtheyearunderaudit,theCompany
hasnotaccepteddepositsfrom thepublic.(vii)Duringtheyear,thecompanyhasinternal
auditsystemcommensuratewithitssize
andnatureofitsbusiness.(viii)Thecompanyhasmade&maintains
costingrecordsprescribedundersection
209(1)(d)oftheCompaniesAct,1956.(ix) Asperinformation&explanationgivento
usthecompanyisregularindepositing
withappropriateauthoritiesundisputed
statutoryduesincludingprovidentfund,
salestax,andothermaterialstatutory
duesapplicabletoit.(x) Inouropinionandasperinformation&
explanationgiventousthecompanyhas
accumulated loss inexcessoffiftypercent
ofitsnetworth.Thecompanyhasnot
incurredcashlossduringthefinancialyear
andinimmediatelyprecedingfinancialyear.(xi) Inouropinionandaccordingtothe informationandexplanationsgiventous,
thecompanyhasnotdefaultedin
repaymentofdues toa financial institution
orbankordebentureholders.(xii)Inouropinionandaspertheinformation
-
7/28/2019 Ktl Anual Rport 2007 08
21/36
andexplanationsgiventous,thecompany
hasnotgrantedanyloansandadvances
onthebasisofsecuritiesbywayofpledge
ofshares,debenturesandothersecurities.(xiii)Inouropinion,thecompanyisnotachit
fundor
a
nidhi
mutual
benefit
fund
/society.
Therefore,theprovisionsofclause4(xiii)
of theCompanies(AuditorsReport)Order,
2003arenotapplicabletothecompany.(xiv)Inouropinion,thecompanyisnotdealing
inortradinginshares,securities,
debenturesandotherinvestments.
Accordingly,theprovisionsofclause4(xiv)of theCompanies(AuditorsReport)Ord
er,2003arenotapplicabletothecompan
y.(xv)Accordingtoinformationandexplanations
giventous,thecompanyhasnotgiven
anyguaranteeforloanstakenbyothers
frombanksorfinancialinstitutions(xvi)Inouropinionandaspertheinformation
andexplanationsprovidedtous,theterm
loanshavebeenappliedforthepurpose
forwhichtheywereraised.(xvii)Accordingtotheinformationand
explanationsgiventousandonanoverall
examinationofthebalancesheetofthe
company,wereportthatnofundsraised onshort-termbasishavebeenusedfor
long-terminvestment.(xviii)Duringtheyearthecompanyhasnot
madeanypreferentialallotmentofshares
topartiesandcompaniescoveredinthe
-
7/28/2019 Ktl Anual Rport 2007 08
22/36
registermaintainedundersection301of
theAct(xix)Duringtheyearthecompanyhasnot
issuedanydebentures(xx)Thecompanyhasnotraisedanymoney bypublicissue(xxi)Inouropinion,andaccordingtothe
informationandexplanationsgiventous,
nofraudonorbythecompanyhasbeen
noticedorreportedduringthecourseof
ouraudit.ForK.RAVI&Co.,
CharteredAccountantsS.Sivam
Coimbatore Partner30thMay,2008 (M.No207579)
15
KAKATIYATEXTILESLIMITEDBalanceSheetasat31stMarch,2008
Schedules 31.3.2008 31.3.2007AmountinRs. AmountinRs.
I SOURCESOFFUNDS1.ShareholdersFunds
a.ShareCapital 1 107,845,500 107,845,5002.LoanFunds
a.SecuredLoans 2 82,000,000 102,500,000b.UnsecuredLoans 3 19,029,038 18,029,038
TOTAL 208,874,538 228,374,538II APPLICATIONOFFUNDS1.FixedAssets 4
GrossBlock 155,021,893 153,136,265Less:-Depreciation 65,014,281 59,808,251NetBlock 90,007,612 93,328,014
2.CurrentAssetsInventories 5 2,820,251 10,878,993
CashandBankBalances 6 1,292,315 1,772,008Deposits,Loans&Advances 7 11,593,086
9,242,960SubTotal 15,705,651 21,893,961LESS:CurrentLiabilitiesAndProvisionsCurrentLiabilities 8 30,302,638 25,505,206Provisions 4,466,240 3,203,332
SubTotal 34,768,878 28,708,538NetCurrentAssets (19,063,227) (6,814,577)
3.ProfitAndLossAccount 9 137,930,153 141,861,101
-
7/28/2019 Ktl Anual Rport 2007 08
23/36
TOTAL 208,874,538 228,374,538
Schedules1to9andnotesonaccountsformpartofthisBalanceSheetAsperourreportofevendateattached ForandonbehalfoftheBoardForK.Ravi&Co.CharteredAccountantsS.SIVAM SUMANTHRAMAMURTHI Dr.I.VENKATRAOPartner
(M.No.
207579) Managing
Director Director
Coimbatore30thMay,2008
16
R.SRINIVASANCompanySecretary
KAKATIYATEXTILESLIMITEDProfit&LossAccountfortheyearended31stMarch,2008
Schedules 31.3.2008 31.3.2007AmountinRs. AmountinRs.
Income
GrossReceiptsCottonSales 7,458,701 7,879,455ConversionChargesReceived 82,890,024 76,696,488OtherIncome 10 502,196 778,948TOTAL 90,850,921 85,354,891
Expenditure
DirectManufacturingExpenses 11 33,977,689 40,311,622PersonnelExpenses 12 20,649,867 17,911,022Interest&FinancialCharges 13 11,213,120 10,720,184General&AdministrativeExpenses 14 15,827,225
11,933,789
TOTAL 81,667,901 80,876,618
Profitbeforedepreciation 9,183,020 4,478,273Depreciation 5,206,030 5,454,104Profitafterdepreciation 3,976,990 (975,831)
Add:FringeBenefitTax 46,042 67,490ProfitAfterTax 3,930,948 (1,043,321)BalanceCarriedforwardfromLastyear (141,861,101) (142,567,780)Balancecarriedforwardtobalancesheet (137,930,153) (141,861,101)Basicearningspershare(inRs.) 0.68 (0.18)
-
7/28/2019 Ktl Anual Rport 2007 08
24/36
Schedules10to14andnotesonaccountsformpartofthisProfit&LossAccount.Asperourreportofevendateattached ForandonbehalfoftheBoardForK.Ravi&Co.CharteredAccountantsS.SIVAM SUMANTHRAMAMURTHI Dr.I.VENKATRAOPartner(M.No.207579) ManagingDirector Director
Coimbatore30thMay,2008 R.SRINIVASANCompanySecretary
17
KAKATIYATEXTILESLIMITEDSchedulesFormingPartofBalanceSheet
Asat31.3.2008 Asat31.3.2007AmountRs. AmountRs.
ShareCapital Schedule-1Authorised
65,00,000EquitySharesofRs.10each 65,000,000 65,000,0005,00,0009%CumulativePreferenceShares 50,000,000 50,000,000Redeemableatpar.Earliestdateofredemption24-1-2010Total 115,000,000 115,000,000
Issued,SubscribedandPaidup58,10,600Equitysharesof 10/-each 58,106,000 58,106,000Less:CallsinArrearsfromothers 260,500 260,500
57,845,500 57,845,5005,00,0009%RedeemableCum.Preferenceshares 50,000,000
50,000,000
Total 107,845,500 107,845,500
SecuredLoans Schedule2FromUTIBank 82,000,000 102,500,000Total 82,000,000 102,500,000
-
7/28/2019 Ktl Anual Rport 2007 08
25/36
UnsecuredLoans Schedule3UnsecuredLoansfromDirectors 19,029,038 18,029,038Total 19,029,038 18,029,038
Inventories Schedule5(QualitiesandValuesascertifiedbytheManagement)StockofCotton 7,459,047Stroes,SparesandOthers 2,820,251 3,419,946Total 2,820,251 10,878,993
CashAndBankBalances Schedule6CashinHand 345,721 109,961BankBalances
AndhraBank 568,023 571,508UTIBank 378,571 1,090,540Total 1,292,315 1,772,009
18FixedAssets(AmountRs)
Particulars GrossBlock DepreciationBlock NetBloAsat1-4-2007
Additions
Deletion
Asat31-3-2008
Upto1-4-2001
Depreciationforperiod- -
For2006-07
Total For2007-08
Onassetsdeleted in
Upto31-3-2008
Asat31-3-2008
As31-3-2007
Land 1,18 1,18 1,18 1,1
Buildings-Factory 24,01 89 24,10 5,77 1,91 521 6,29 53 6,82 17,27 17,7Buildings-Nonfac 8,05 32 8,08 886 321, 96, 982 110 1,09 6,99 7,0Plant&Machinery 105,8 1,94 35 107,4 43,19 21,4 4,17 47,37 3,83 16, 51,2 56,193 58,4ElectricalInstalat 10,9 13 11,08 3,22 1,56 537 3,76 58 4,34 6,73 7,18OfficeEquipment 1,31 1,31 583 99, 28,3 612 28 64 676 70Computers 94 34 983 164 248 78, 242 77, 32 663, 70
Furniture&fittings 58 586 329 46, 12,0 341 12, 35 232, 24Vehicle 257 257 195 6,6 4, 199, 4, 20 52, 5
AmountinRs31.03. 153,1 2,2 35 155,0 54,35 25,6 5,45 59,8 5,18 16, 65,0 90,0 93,3AmountinRs31.03. 143,1 11,0 1,03 153,1 54,3 5,4 19, 85,4
KAKATIYATEXTILESLIMITEDAsat31.3.2008 Asat31.3.2007
Rs. Rs.Deposits,LoansAndAdvances Schedule7
AdvancesforCapitalgoods/StoresPurchase 2,806,643 2,122,932StaffAdvance 425,858 283,070
-
7/28/2019 Ktl Anual Rport 2007 08
26/36
Loans&Advance 223,387TDSReceivables 3,773,721 1,892,080PrepaidExpenses 314,855 449,482DepositswithElectricityandotherauthorities 4,272,009 4,272,009Total 11,593,086 9,242,960
CurrentLiabilities Schedule8SundryCreditorsforpurchases 27,239 345,499CreditorsforServices&Expenses 14,200
AdvancesfromCustomers-SSML 27,779,167 23,726,941Duties&TaxPayable 43,691 53,805InterestaccruedbutnotdueonUTITermloan 979,367OtherLiabilities 2,452,541 385,394Total 30,302,638 25,505,206
ProfitAndLossAccount Schedule9Lossfromearlieryears 143,611,101 142,567,780Profit
during
the
year 3,930,948 1,043,321Less:GeneralReserve 1,750,000 1,750,000
Total 137,930,153 141,861,101
SchedulesFormingPartofProfit&LossAccount 31.3.200831.3.2007
Rs. Rs.
OtherIncome Schedule10MiscellaneousIncome 251,214 527,965Interestearned 250,982 250,982Total 502,196 778,948
DirectManufacturingExpenses Schedule11Consumptionofcotton 8,058,742 14,239,347Packingmaterialandconsumables 29,407 700,434PowerandFuel 25,889,540 25,371,841Total 33,977,689 40,311,622
20
KAKATIYATEXTILESLIMITED31.3.2008 31.3.2007
Rs. Rs.
PersonnelExpenses Schedule12Salaries&WagesandOtherAllowances 16,789,279 14,017,565ContributiontoProvidentfundandGratuityfund 1,872,035 1,514,410SettlementsalariesandpaymentstoVRSoptees 1,002,930EmployeesWelfareExpenses 1,988,553 1,376,117Total 20,649,867 17,911,022
-
7/28/2019 Ktl Anual Rport 2007 08
27/36
Interest&FinancialCharges Schedule13InterestOnUTItermloan 11,098,600 10,345,978BankCharges&Commission 114,520 374,206Total 11,213,120 10,720,184
General&AdministrativeExpenses Schedule14TravellingExpenses 112,740 124,903Printing&Stationery 144,982 184,452RepairsandMaintenancePlantandMachinery 12,494,949 7,233,254Buildings 513,590 1,339,454Others
FreightInward 338,582 759,906OtherManufacturingexpenses 118,491 212,990Insurance 584,183 316,846RatesandTaxes 172,087 215,248Rent 48,000 48,000AuditfeesStatutoryAudit 100,000 100,000TaxAudit 20,000 20,000ServiceTax 14,832 14,832Legal&ProfessionalCharges 191,085 133,047Postage,Telegrams&Telephones 259,885 340,797VehicleExpenses 197,854 258,198GeneralExpenses 515,965 631,862Total 15,827,225 11,933,789
21
KAKATIYATEXTILESLIMITEDNotesformingPartoftheAccounts1.SignificantAccountingPolicies
(a)Accountingconvention:Subjecttothenotesonaccounts,theFinancialStatementshave
beenprepared
under
the
historical
cost
convention
inaccordance
with
generally
accepted
accountingprinciplesinIndia,theapplicableAccountingStandardsreferredtoinsub-
section(3C)ofSection211oftheCompaniesAct,1956.(b)Inventoryaccounting:InventoriesofRawMaterials,WorkinProcess,Finishe
dGoods,StoresandSparesarestatedatcostornetrealisablevalue,whicheverisl
ower,inaccordancewithAccountingStandard2issuedbyTheInstituteofCharteredAc
countants
-
7/28/2019 Ktl Anual Rport 2007 08
28/36
-
7/28/2019 Ktl Anual Rport 2007 08
29/36
date,ifthereisanyindicationofimpairmentbasedoninternal/externalfactors.Anasset
isimpairedwhenthecarryingamountoftheassetexceedstherecoverableamount.An
impairmentlossisnormallychargedtotheProfit&LossAccountintheyearinwhichan
22
KAKATIYATEXTILESLIMITEDassetisidentifiedasimpaired.Animpairmentlossrecognisedinprioraccountingperiodsis
reversedincurrentaccountingperiodsiftherehasbeenachangeintheestimateofthe
recoverableamount.(h)ContingenciesandProvisions:Provisionsinvolvingsubstantialdegreeofesti
mationinmeasurementarerecognisedwhenthereisapresentobligationasaresultofpa
stevents
anditisprobablethattherewillbeanoutflowofresources.ContingentLiabilitiesarenotrecognisedbutaredisclosedintheNotes.ContingentAssetsareneitherrecog
nisednordisclosedintheFinancialStatements.
(i)EarningsperShare:BasicEarningsperShareiscalculatedbydividingtheNetprofit/loss
attributabletotheEquityShareholdersbytheweightedaveragenumberofEquityShares
outstandingduringtheyear.2.Thecompanyhasnotprovideddepreciationonfixedassetsfortheperiod1-4-2001to31-3-2006.
This
is
not
in
accordance
with
Accounting
Standard
6
DepreciationAccounting
issuedbytheInstituteofCharteredAccountantsofIndia.Asaresult,theaccumulateddepreciationand
accumulatedlossesareeachunderstatedbyRs.2,56,71,744/-.Thenetfixedassetsis
overstatedbythesameamountduetothenon-provisionofdepreciation.3.Thecurrentyeardepreciationiscomputedonwrittendownvaluebasisontheaggregateof
netblockofassetsatthebeginningoftheyearandadditionsduringtheyear,afterdeducting
fromthegrossblockofassetsasperbooks,theaccumulateddepreciationincludingthe
amountofaccumulateddepreciationnotprovidedasstatedinnote2above.4.ThetermloanfromUTIBankwithanoutstandingbalanceofRs.8.20Croresissecuredbya
firstchargeonthepresentandfuturefixedassetsofthecompanyandsecondchargeonthe
presentandfuturecurrentassetsofthecompany.Theloanisguaranteedbytwoofthe
directorsofthecompany.5.Depreciationprovidedforincometaxpurposeslessthandepreciationforthecurrentyearas
-
7/28/2019 Ktl Anual Rport 2007 08
30/36
perbooks.Thecompanyhasbroughtforwardlossesandunabsorbeddepreciationunder
incometax.DeferredtaxassetisnotrecognizedfollowingtherequirementsofAccounting
Standard-22.6.IntheopinionoftheBoard,theCurrentAssets,Loans&AdvancesandotherReceivableshave
atleastthevalueasstatedintheBalanceSheet,ifrealizedintheordinarycourseofbusiness.7.Thecompanydoesnothaveanyduestosmallandmediumenterprises8.ThecompanydoesnothaveanyliabilitytowardsinterestunderMicro,SmallandMedium
EnterprisesAct,2006,asithasnotdelayedpaymentstopartiesdefinedtobeMicro,Small
andMediumEnterprisesunderthesaidAct9.Therewerenoimportsorforeigncurrencypaymentsmadebythecompanyduringtheyear10.Previousyearfigureshavebeenregrouped/rearrangedwherevernecessaryinlinewiththe
presentation
of
current
year
figures11.Contingentliabilities:Dividendon5,00,0009%cumulativepreferencesharesofRs.100each
isinarrears.12.Manufacturingcapacity
31-3-2008 31-3-2007LicencedCapacity NA NAInstalledcapacity 18144Spindles 18144Spindles
Actualproduction 9.43Lakhkgs 9.51Lakhkgs23
Party Natureoftransaction
31-03-2008 31-03-2007
Volumeofransac
Balanceasat
- -
Volumeofransac
Balanceasat
- -SuperSpinningMillsLimitedSuperSpinningMillsLimitedElgiElectricandIndustriesLimited
YarnConversion
YarnsalesStorespurchase
Storespurchase
8,28,90,024
69,25,967
35,557
2,11,533
3,32,800
2,77,65,667
Nil
Nil
Nil
7,66,96,488
78,79,755
72,009
147081
2,37,26,941
Nil
Nil
Nil
KAKATIYATEXTILESLIMITED13.Turnoverdetails
31-03-2008 31-03-2007Classofgoods Quantity AmountinRs. Quantity AmountinRs.SalesCotton 95,764Kgs 74.59Lakhs 1,50,965Kgs78.79Lakhs
-
7/28/2019 Ktl Anual Rport 2007 08
31/36
ConversionCharges 942,725Kgs 828.90Lakhs 950,877Kgs766.96Lakhs
14.Rawmaterials(inRupees)Cotton 31-03-2008 31-03-2007OpeningStock 74,59,047 NilPurchase Nil 1,50,51,737ClosingStock Nil 74,59,047
15.RelatedpartydisclosureasrequiredbyAccountingStandard-181.Namesofrelatedpartiesanddescriptionofrelationshipa)KeyManagementPerson :Mr.L.G.Ramamurthi,
Ex-Chairman&ManagingDirectorNoremunerationpaidtoMr.L.G.Ramamurthi
b)RelativeofKeymanagementpersonnel:Mr.SumanthRamamurthic)Otherrelatedparties :SuperSpinningMillsLimited
ElgiElectricandIndustriesLimitedElgiUltraIndustreisLimitedSaraElgiEnvirotechLimited
31-3-2008 31-3-2007Basic&Dilutedearnings(Loss) Rs.9.49Lakhs Rs.10.43LakhsWeightedaveragenumberofequityshares 57,84,550 57,84,550NomineeValueofEquityShares Rs.10 Rs.10Earningspershare Rs.0.68 Rs.(0.18)
17.ForeignexchangeEarnings :NIL24
KAKATIYATEXTILESLIMITEDCashFlowStatementfortheyearended31stMarch2008
2007-2008 2006-2007Rs. Rs. Rs. Rs.
A.CashFlowfromoperatingactivities:NetProfitbeforetaxandextraordinaryitems 3,930,948 (1,043,321)Add:AdjustmentsInP&LDepreciation 5,206,030 5,454,104
InterestPayments 11,098,600 10,720,184OperatingProfitbeforeworkingcapitalchanges 16,304,630 16,174,288(Increase)/Decrease inInventory 8,058,742 (8,642,241)(Increase)/Decrease inDebtors - 8,950,027(Increase)/DecreaseinDeposits (2,350,126) (3,347,957)(Increase)/DecreaseinCurrentLiability4,797,432 (9,954,993)(Increase)/DecreaseinProvision 1,262,908 3,203,332
28,073,586 6,382,456NetCashFlowfromoperatingactivities 32,004,534 5,339,135
-
-
7/28/2019 Ktl Anual Rport 2007 08
32/36
B.CashFlowfromInvestingactivities:Purchaseoffixedassets (2,236,028) (11,022,069)Saleoffixedassets 350,400 1,030,400Netcashusedforinvestingactivities (1,885,628) (9,991,669)
C.CashFlowfromfinancingactivities:Longtermborrowings-Secured (20,500,000) 43,757,092Unsecuredloans&Others 1,000,000 (27,085,034)InterestPaid (11,098,600) (10,720,184)Netcashflowfromfinancingactivities (30,598,600) 5,951,874NetIncrease/(Decrease)incashandcashequivalent (479,694) 1,299,340CashAndCashEquivalentsAsAt31.03.2007 1,772,009 472,669CashAndCashEquivalentsAsAt31.03.2008 1,292,315 1,772,009
ForandonbehalfoftheBoardCoimbatore SUMANTHRAMAMURTHI Dr.I.VENKATRAO R.SRINIVASAN30thMay,2008 ManagingDirector Director CompanySecretary
AUDITORSCERTIFICATEWehaveverifiedtheabovecashflowstatementofKakatiyaTextilesLimitedderivedfromtheAnnualFinancialStatementsfortheyearended31.03.2008andfoundthesametobedrawninaccordancewithandalsowiththerequirementsofclause32ofthelistingagreementswithstockexchange.
ForK.Ravi&Co.CharteredAccountants
Coimbatore S.SIVAM30thMay,2008 Partner (M.No.207579)
25
KAKATIYATEXTILESLIMITEDBalanceSheetAbstractandCompany'sGeneralBusinessProfileI. Registrationdetails
RegistrationNo : 3159Statecode : 01Balancesheetdate : 31.03.2008
II. Capitalraisedduringtheyear(AmountinLakhs)Publicissue : NilRights
issue : NilBonusissue : Nil
Privateplacement : NilIII. PositionofmobilizationandDeploymentoffunds(AmountinLakhs)
TotalLiabilities : 2436.43TotalAssets : 2436.43SourcesoffundsPaidupcapital : 1078.46Reserveandsurplus : NilSecuredloans : 820.00Unsecuredloans : 190.29
-
7/28/2019 Ktl Anual Rport 2007 08
33/36
DeferredTaxliability : NilApplicationofFundsNetfixedassets : 900.08Investments : NetCurrentassets : (190.63)DeferredTaxAsset : Misc.Expenditure :
Accumulatedlosses : 1379.30LakhsIV. PerformanceofthecompanyTurnover : Rs903.48Lakhs
TotalExpenditure : Rs.816.68LakhsProfitbeforetax : Rs.39.77LakhsProfitaftertax : Rs.39.31LakhsEarningspershare : Rs0.68Dividendrate : Nil
V. Genericnamesofthreeprincipleproducts.servicesofthecompany(aspermonetaryterms)ItemNo.(ITCcode) : ThecompanyisdoingconversionjobworkMajorproductDescription :
Asperourreportofevendate For andonbehalfoftheBoardForK.Ravi&Co.CharteredAccountantsS.SIVAM SUMANTHRAMAMURTHI DR.I.VANKATRAOPartner(M.No.207579) ManagingDirector Director
Coimbatore30thMay,2008
26
R.SRINIVASANCompanySecretary
-
7/28/2019 Ktl Anual Rport 2007 08
34/36
Nameof theMember FolioNo./ClientIDNo.
NameofProxy No.ofShar
KAKATIYATEXTILESLIMITEDRegd.Office:ELGITOWERS,737D,GreenFields,PuliakulamRoad,Coimbatore-641045
ElgiTowers,737D,GrenFields,PuliakulamRoad,Coimbatore-641045onWednesday,24thSeptember2008at11AM.
.......................................................................SignatureofMember/Proxy
Notes:1.Shareholder/ProxyholdermustbringtheAdmissionSliptothemeetingandhandoverat
theentrancedulysigned.2.Shareholdersarerequestedtoadvisetheirchangeofaddressaswellas
requestforconsolidationoffolio,ifany,totheaboveaddress,quotingfolionumbers.
KAKATIYATEXTILESLIMITEDRegd.Office:ELGITOWERS,737D,GreenFields,PuliakulamRoad,Coimbatore-641045
PROXYFORMI/We...............................................................................................................................................
of................................................................. beingaMember/MembersofKakatiyaTextiles
Ltd.,herebyappoint............................................................................................................of
..........................................orfailinghim.................................................................................
... of
........................................... asmy/ourProxytoattendandvoteforme/usonmy/ourbehalfatthe26thAnnualGeneralMeetingoftheCompanytobeheldonWednesday,24thSeptember2008at11AMandatanyadjournmentthereof.
-
7/28/2019 Ktl Anual Rport 2007 08
35/36
Signedthis....... dayof.......................................Affix
15paiseRevenue
Stamp
Notes
:
The
proxy
form
must
be
returned
so
as
to
reach
the
Registered
Office
of
theCompany,notlessthanforty-eighthoursbeforethetimeforholdingtheaforesaidmeeting.
BOOK-POST
-
7/28/2019 Ktl Anual Rport 2007 08
36/36
PRINTEDMATTERIfUndeliveredpleasereturnto:KakatiyaTextilesLimitedElgiTowers737-D,GreenFields,PuliakulamRoadCoimbatore-641045.