Escolar Documentos
Profissional Documentos
Cultura Documentos
BOARD OF DIRECTORS
Mr. Navas M Meeran
Mr. M.E. Mohamed
Mr. M.S. Ranganathan
Mr. M.S. Sebastian
Mr. Naiju Joseph
Mr. K.S Neelacanta Iyer
Mr. K.V. Rajagopalan Nair
Chairman
Managing Director
Director
Director
Director
Director
Director (Nominee of KSIDC)
CS. Baiju.T
Company Secretary
BANKERS
The Federal Bank Limited
AUDITORS
JVR & Associates, Chartered Accountants
39/3639, Valanjambalam Lane,
South of South Overbridge
Kochi, Ernakulam 682016
CONTENTS
Notice ..............................................................................................3
Directors' Report ............................................................................11
Form A...........................................................................................17
Report of Corporate Governance....................................................18
Auditor's Certificate.........................................................................29
Management Discussion & Analysis ...............................................30
Auditor's Report...............................................................................34
Balance Sheet.................................................................................39
Profit and Loss Statement...............................................................40
Notes to Financial Statements ........................................................41
Cash Flow Statement......................................................................56
Dear shareholder,
Warm greetings to you!
It is my pleasure and privilege to communicate to you through this annual
report. In spite of arduous defies on several fronts we are able to reform the
year 2013-14 to another eventful and successful year in our passionate
journey towards sustainable development. Our performance in totality has
been encouraging and on the financial front, I'm proud to announce that
despite the volatile market conditions, our revenue has grew by 37.31 % and
we are able to report a quantum leap in net profit, by 54.05 %, the highest-ever
net profit since its inception. This spectacular achievement is the result of our
operational excellence and goal oriented efforts.
It is evident that our products has gained greater and wider acceptance which backed us to get orders
from institutional buyers like Sate Road Transport Corporations. Besides the dealer networks, our
services to cater indigenous retreading requirements have been further supported by franchise
partners.Towards our international reach, we are able to explore various international markets like UAE,
African Countries, Nepal, Bangladesh, Bhutan etc.
Since the tyre retreading gives better road performance than new tyres at an absolute minimum fiscal
impact, this industry has gained greater acceptance and better position in tyre replacement market.
Retreading has other distinct advantages like prolonged tyre life, prevention of premature disposal etc.
which leads to saving of energy and natural resources. Hence tyre retreading effectively addresses the
environmental apprehensions and has become an ecological as well as economical choice.
Currently Eastern Brand has emerged as a premier tyre retreading solution provider with quality products
and manufacturing facility in tune with market necessities. We're equipped to cater the market
requirements by supplying products to cover all stages of the retreading process of every tyre size of all
vehicles. This has made our brand a favourite for major retreading companies and RTCs in our
indigenous and international markets and now we are competing with multinational branded tyre
manufacturers who have recently entered into this industry.
Similar to international scenario our native market is also moving towards branding of tyre retreading
products and we have actively taken various brand building exercises like introduction of new face to our
website and logo towards better brand visibility, fleet owner's campaigns, ads etc. In this dynamic
industrial environment our future growth prospects are associated with our ability to cater our consumer
expectations. In this juncture I'm confident that we have bright future and ability to deliver better results to
all our stakeholders.
In this scenario, I would like to thank our biggest resource and asset, our employees for taking
concomitant efforts to achieve our goals and targets through significant efforts, goal oriented hard-work
and commitment. I'm confident that this young and dynamic Eastern Team will drive us towards greater
heights notwithstanding the challenges that may arise in future.
Let me take this opportunity to express my sincere appreciation to my colleagues on Board for their
immense contribution and cooperation in charting a road map. Before I conclude, let me also express my
gratitude to our Customers, Business Associates, Suppliers, Bankers and Statutory Authorities. Let me
thank all of you for your continued confidence and support.
With warm regards
Navas M Meeran
Chairman
NOTICE TO SHAREHOLDERS
NOTICE is hereby given that the 21st Annual General Meeting of the members of Eastern Treads Limited
will be held at Hotel Park Central, Kaloor, Ernakulam, Kochi - 682017, Kerala on Tuesday, 24th June 2014,
at 3.00 P.M to transact the following business:-
A) Ordinary Business:
1.
To receive, consider and adopt the Audited Balance sheet as at 31st March 2014 and the Profit and
Loss Statement for the year ended on that date together with the Reports of the Directors' and
Auditors' thereon.
2.
To appoint a Director in place of Mr. Navas M Meeran, who retires by rotation and, being eligible, offers
himself for re-appointment.
3.
To appoint Auditors for a period of 3 years and fix their remuneration, the retiring Auditors M/s. JVR &
Associates, Chartered Accountants, Kochi -16 are eligible for re-appointment.
B) Special Business:
4.
To consider and if thought fit, to pass with or without modification, the following resolution as a special
resolution:RESOLVED THAT in supersession of the Resolution No: 7 passed at the 15th Annual General
Meeting of the Company held on 29/09/2008 and pursuant to Section 180 (1) (c) and other applicable
provisions if any of the Companies Act, 2013, and the rules made thereunder (including any statutory
modification(s) or re-enactment thereof for the time being in force)consent of the members be and is
hereby accorded to the Board of Directors of the Company for borrowing from time to time any sum of
money on such terms and conditions and with or without security as the Board may think fit which,
together with the money already borrowed by the Company (apart from the temporary loans obtained
or to be obtained from the Company's bankers in the ordinary course of business) may exceed the
aggregate of the paid up capital of the Company and its free reserves, that is to say reserves not set
apart for any specific purpose, provided that the total amount of money so borrowed shall not at any
time exceed the limit of Rs. 50 Crores (Rupees Fifty Crores).
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5.
To consider and if thought fit, to pass with or without modification, the following resolution as a special
resolution:RESOLVED THAT pursuant to Section 188 and other applicable provisions if any of the Companies
Act, 2013 and The Companies (Meetings of Board and its Powers) Rules, 2014, (including any
statutory modification(s) or re-enactment thereof for the time being in force) consent of the members
be and arehere by accorded to enter into contracts for Sale, Purchase or Supply of Raw materials,
Compounds and Finished Goods and availing and rendering of job works for a period of 5 years with
effect from the date of execution of the contracts for an amount not exceeding Rupees Three Crores,
per year with each of the following Related Parties namely 1) Alfa Rubbers, 2) Sahara T reads,
3) Rosekhan Industries, 4) Vazhakkulam Rubbers and 5) Eastern Retreads (P) Ltd.
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised to
do all such acts, deeds and things as may be necessary, desirable or expedient and to take all
necessary steps, for and on behalf of the Company and is authorised and empowered to negotiate, fix
the price and agree upon other terms and conditions and enter into legal agreement and contracts to
the extent the Board of Directors may consider appropriate, as may be permitted or authorised in
accordance with any provisions under the Companies Act, 2013.
RESOLVED FURTHER THAT the Board of Directors be and is hereby authorised to take such steps
as the Board may consider necessary or expedient to give effect to this resolution.
6.
To consider and if thought fit, to pass with or without modification, the following resolution as an
Ordinary Resolution:RESOLVED THAT pursuant to Section 148(3) and other applicable provisions if any of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014, (including any statutory modification(s) or re-enactment thereof for the time being in force) and subject to such guidelines and
approval as may be required from the Central Government the reappointment of Mr. K.A Felix,
Proprietor, M/s. K.A Felix & Co., Cost Accountants, Cochin as the cost auditor(s) of the Company
to conduct audit of cost accounting records maintained by the Company for the year ending on
2014-15 on a remuneration of Rs. 50,000/- plus service tax be and is hereby ratified.
Baiju. T
Company Secretary
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Notes:-
1. A member entitled to attend and vote at the meeting is entitled to appoint a proxy/proxies to
attend and vote on a poll instead of himself/herself and such proxy / proxies need not be a
member of the Company.
2. A person can act as proxy on behalf of members not exceeding fifty (50) and holding in the aggregate
not more than 10% of the total share capital of the Company, provided a member holding more 10%,
of the total share capital may appoint a single person as proxy and such person shall not act as proxy
for any other shareholder.
3. The enclosed proxy form, if intended to be used, must reach the registered office of the Company duly
completed not less than 48 hours before the scheduled time of the meeting.
4. Corporate members intending to send their authorised representative to attend the Meeting are
requested to ensure that the authorised representative carries a certified copy of the Board
Resolution, Power of Attorney or such other valid authorisations, authorising them to attend and vote
on their behalf at the Meeting.
5. The required Explanatory Statement pursuant to Section 102 of the Companies Act, 2013 in respect
of the items under Special Business is annexed herewith.
6. The Register of Members and Share Transfer Books of the Company will remain closed from
Tuesday, 17/06/2014 to Tuesday, 24/06/2014 (both days inclusive).
7. For the convenience of the Members and for proper conduct of the Meeting, entry to the place of the
Meeting will be regulated by the Attendance Slip, which is annexed to the Proxy Form.
Members/Proxies are requested to bring the attendance slip duly filled in and to affix their signature at
the place provided on the Attendance Slip and hand it over at the counters at the venue.
8. Members who hold the shares in the dematerialized form are requested to incorporate their DP ID
Number and Client ID Number in the Attendance Slip/Proxy Form, for easier identification of
attendance at the Meeting.
9. Members and Proxies attending the meeting are requested to bring the annual report to the meeting
as extra copies will not be distributed.
10. The Company is having agreements with NSDL and CDSL to enable Members to have the option of
dealing and holding the shares of the Company in electronic form. Any member desirous to
dematerialise his / her holding may do so through any of the depository participants. The ISIN of the
equity shares of the Company is INE500D01015.
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11. Members may note that transferees of shares of the Company in physical form shall furnish copy of
PAN card to the Company/RTAs for registration of such transfer of shares.
12. Members are requested to address all correspondences, including change in their addresses, to the
Company or to the Registrar and Share Transfer Agents, M/s. Integrated Enterprises (India) Limited,
2nd Floor, Kences Towers, No:1, Ramakrishna Street, North Usman Road, T. Nagar, Chennai 600017. Email: sureshbabu@iepindia.com. Members whose shareholding are in electronic mode
are requested to approach their respective depository participants for effecting change of address.
13. If any of the members are holding shares in the same name or in the same order of names, under
different folios, then members are requested to notify the same to the Registrar and Share Transfer
Agents for consolidation of their shareholding into a single folio.
14. Members desirous of getting any information on the Annual Accounts, at the Annual General Meeting,
are requested to write to the Company at least 10 days in advance, so as to enable the Company to
keep the information ready.
15. Notice of this Annual General Meeting, Audited Financial Statements for 2013-14 along with
Directors' Report and Auditors Report are available on the website of the Company,
www.easterntreads.com.
16. As per Section 72 of the Companies Act, 2013, shareholders are entitled to make nomination in
respect of shares held by them. Shareholders desirous of making nomination are requested to send
their request in Form No: SH-13 (which will be made available on request) to the Company or
Rregistrar and Share Transfer Agent. The said nomination form can also be downloaded from the
Company's website www.easterntreads.com.
17. As per Circulars issued by the Ministry of Corporate Affairs, Members are requested to provide their
email address to the Company/ the Registrar and Transfer Agents or update the same with their
depositories to enable the Company to send the documents in electronic form.
18. Voting through Electronic means
a) In compliance with provisions of Section 108 of the Companies Act, 2013 and Rule 20 of the
Companies (Management and Administration) Rules, 2014, the Company is pleased to provide
members facility to exercise their right to vote at the 21st Annual General Meeting (AGM) by
electronic means and the business may be transacted through e-Voting Services provided by
National Securities Depository Limited (NSDL). The instructions for e-voting are as under:
A.
In case a Member receives an email from NSDL {for members whose email IDs are
registered with the Company/Depository Participants(s)}:
(i)
Open email and open PDF file viz; Eastern Treads e-Voting.pdf with your Client ID or
Folio No. as password. The said PDF file contains your user ID and password/PIN for
e-voting. Please note that the password is an initial password.
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(ii)
(iii)
(iv)
Put user ID and password as initial password/PIN noted in step (i) above. Click Login.
(v)
Password change menu appears. Change the password/PIN with new password of
your choice with minimum 8 digits/characters or combination thereof. Note new
password. It is strongly recommended not to share your password with any other
person and take utmost care to keep your password confidential.
(vi)
(vii)
(viii) Now you are ready for e-voting as Cast Vote page opens.
B.
(ix)
Cast your vote by selecting appropriate option and click on Submit and also
Confirm when prompted.
(x)
(xi)
Once you have voted on the resolution, you will not be allowed to modify your vote.
(xii)
Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to
send scanned copy (PDF/JPG Format) of the relevant Board Resolution/ Authority
letter etc. together with attested specimen signature of the duly authorized
signatory(ies) who are authorized to vote, to the Scrutinizer through e-mail to
evoting@eastern.in with a copy marked to evoting@nsdl.co.in
In case a Member receives physical copy of the Notice of AGM {for members whose email
IDs are not registered with the Company/ Depository Participants(s) or requesting physical
copy} :
(i) Initial password is provided as below/at the bottom of the Attendance Slip for the AGM :
EVEN (E Voting Event Number)
USER ID
PASSWORD/PIN
(ii) Please follow all steps from Sl. No. (ii) to Sl. No. (xii) above, to cast vote.
b) In case of any queries, you may refer the Frequently Asked Questions (FAQs) for Shareholders
and e-voting user manual for Shareholders available at the Downloads section of
www.evoting.nsdl.com
c) If you are already registered with NSDL for e-voting then you can use your existing user ID and
password/PIN for casting your vote.
d) You can also update your mobile number and e-mail id in the user profile details of the folio which
may be used for sending future communication(s).
e) The e-voting period commences on 18/06/2014 (9:00 am) and ends on 20/06/2014 (6:00 pm).
During this period shareholders of the Company, holding shares either in physical form or in
dematerialized form, as on the cut-off date of 16/05/2014, may cast their vote electronically.
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The e voting module shall be disabled by NSDL for voting thereafter. Once the vote on a resolution
is cast by the shareholder, the shareholder shall not be allowed to change it subsequently.
f)
The voting rights of shareholders shall be in proportion to their shares of the paid up equity share
capital of the Company as on the cut-off date of 16/05/2014.
g) CS. Satheesh Kumar. N, Company Secretary (Membership No. 16543), Partner M/s. Satheesh &
Remesh, Company Secretaries has been appointed as the Scrutiniser to scrutinise the e-voting
process in a fair and transparent manner.
h) The Scrutinizer shall within a period not exceeding three (3) working days from the conclusion of
the e-voting period unblock the votes in the presence of at least two (2) witnesses not in the
employment of the Company and make a Scrutinizer's Report of the votes cast in favour or
against, if any, forthwith to the Chairman of the Company.
i)
The results shall be declared on or after the AGM of the Company. The results declared along with
the Scrutiniser's Report shall be placed on the Company's website http://www.easterntreads.com
and on the website of NSDL within two (2) days of passing of the resolutions at the AGM of the
Company and communicated to Bombay Stock Exchange, Cochin Stock Exchange and Madras
Stock Exchange.
19. Details of the Director seeking reappointment at the Annual General Meeting as required under
Clause 49 of the Listing Agreement is as follows:The Chairman of the Company, Mr. Navas M Meeran, aged 45 years, joined the Board of Directors of
the Company on 26/08/1997. He is a Post Graduate in Business Management. He is the recipient of
'Kamal Patra' award from the Indian Junior Chamber for being an outstanding young entrepreneur of
the year in 1994. He hails from a respectable business family in Adimali renowned for manufacturing
and exporting of spices and curry powder. He has been involved in the business of spices for the last
27 years and having immense practical experience in tyre retreading industry. Presently he is the
Chairman of Eastern Group of Companies and Confederation of Indian Industries (CII), Southern
Region Council. Earlier he was the Deputy Chairman of CII, Southern Region Council. He has also
held the position of the Chairman of the CII, Kerala Chapter. Presently he is the Director of the
following other public limited companies:
1.
2.
3.
Explanatory Statement pursuant to Section 102 of the Companies Act, 2013:Item No.04
Pursuant to Section 180 (1) (c) of the Companies Act 2013, the Board of Directors cannot except with the
consent of the Company by special resolution borrow money apart from temporary loans obtained from
the Company's bankers in the ordinary course of business, in excess of the aggregate of paid up capital
and free reserves of the Company, that is to say, reserves not set apart for specific purpose.
th
At the 15 Annual General Meeting of the Company held on 29/09/2008 the shareholders had authorized
the Board to borrow money up to `25 Crores (Rupees Twenty Five Crores) at any time in excess of the
aggregate of the paid up capital of the Company and its free reserves.
In view of the growing operations, the Company requires additional funds and as an abundant caution it is
proposed to increase the power of borrowing from `25 Crores (Rupees Twenty Five Crores) to `50 Crores
(Rupees Fifty Crores).
Accordingly, the consent of the shareholders by way of special resolution pursuant to Section 180 (1) (c) of
the Companies Act, 2013 is being requested to enable the Board to borrow to the extent of `50 Crores
(Rupees Fifty Crores) in supersession of the earlier resolution passed on 29/09/2008.
None of the Directors is interested or concerned in the said resolution.
Item No.05
Pursuant to Section 188 of the Companies Act, 2013 and The Companies (Meetings of Board and its
Powers) Rules, 2014, no contracts or arrangement with a related party with respect to the transactions
specified in that Section can be entered by our Company, other than transactions which are entered in the
ordinary course of business on an arm's length basis without the consent of the shareholders by special
resolution.
In view of the growing operations, the Company requires to trade, avail and render job works with following
Related Parties namely 1) Alfa Rubbers, 2) Sahara Treads, 3) Rosekhan Industries, 4) Vazhakkulam
Rubbers and 5) Eastern Retreads (P) Ltd.
Even though the transactions will be entered in the ordinary course of business of the Company on arms
length basis, as good Corporate Governance the consent of the shareholders by way of special resolution
pursuant to Section 188 of the Companies Act, 2013 and the Rules made thereunder is being requested to
enable the Board to enter into contracts for Sale, Purchase or Supply of Raw materials, Compounds and
Finished Goods and to avail and render job works with the above Related Parties for a period of 5 years
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with effect from the date of execution of the contracts for an amount not exceeding Rupees Three Crores
per year with each Related Party.
Mr. Navas M Meeran, Chairman, and Mr. Naiju Joseph Director are interested or concerned in the said
resolution as they are having following interests in the Related Parties.
Sl
No
Name
Entity
Interested Director
Nature of Interest
Alfa Rubbers
Proprietorship
Wife is Proprietor
Sahara Treads
Proprietorship
Mother is Proprietor
Rosekhan Industries
Proprietorship
Brother is Proprietor
Vazhakkulam Rubbers
Partnership
Company
Item No.06
A proposal for appointment of Cost Auditor for 2014-15 was recommended by the Audit Committee to the
Board. It was proposed to re-appoint M/s. K.A Felix & Co., Cost Accountants, Cochin as Cost Auditors.
Certificate dated 28/04/2014 issued by the above firm regarding their eligibility for appointment as Cost
Auditors will be available for inspection at the registered office of the Company during 11.00 A.M to 1.00
P.M and shall also available at the meeting.
As per Rule 14 of Companies (Audit and Auditors) Rules 2014, the appointment and remuneration payable to the Cost Auditors is to be ratified by the Shareholders. Hence this resolution is put for the consideration of the shareholders.
None of the Directors and Key Managerial personnel or relatives of them are interested in the above
resolution. The Board of Directors recommends the resolution for your approval.
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DIRECTORS' REPORT
Dear Member,
Your Directors have pleasure in presenting the Annual Report along with the audited statements of
accounts of your Company for the financial year ended 31st March, 2014.
Financial Highlights
The performance of your Company has been satisfactory. The following table shows the operational
results of the Company for the year 2013-14 as compared to that of the previous year.
(` in lakhs)
Year ended
31/03/2014
Revenue from Operations
31/03/2013
8,924.72
6499.80
32.62
3.81
Total Revenue
8,957.34
6503.61
Expenditure
8,547.98
6236.50
409.36
267.11
Financial Cost
82.59
58.41
79.09
58.52
247.68
150.18
164.09
106.52
Other Income
Operations
Your Company has reported a revenue growth of 37.31 % during financial year ended 31st March 2014.
The revenue has augmented from `6,499.80 Lakhs to `8,924.72 Lakhs and the PBIDT amounted to
`409.36 Lakhs as against `267.11 Lakhs during the previous year, registering an increase by 53.26%.
During this year your Company has posted a quantum leap in net profit by reporting a growth by 54.05 %,
the highest-ever net profit since its inception. The net profit amounted to `164.09 Lakhs as against
`106.52 Lakhs during the previous year.
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This spectacular achievement is the result of goal oriented workings, cost effective production, increase
in operational efficiency and better working capital management. Furthermore, major orders from Road
Transport Corporations, International Markets and healthier support by franchise partners are important
backings to our remarkable achievement. Now your Company is aiming to pursue higher levels by
expanding its activities in international and domestic markets especially in institutional buyers markets.
Dividend
In view of the inadequacy of profit, your Directors are not in a position to recommend any dividend.
Current Scenario
Our Company and the tyre retreading industry in general show healthy signs during this financial year.
Various factors like cost advantage, increasing number of vehicles, demand by tyre replacement market,
logistic network, improvement in quality of roads, overloading norms, increasing level of radialisation etc.
drive retreading and it helped our Company to grow further.
The changes in consumer behavior due to monetary benefits, technological innovations and
advancement in manufacturing systems are important factors which helped the retreading to emerge as a
part of overall tyre management program. Now the retreading holds out as an economically viable option
for fleet owners. Hence, your Company is enthusiastic in its development prospects.
The Company has gone through a challenging year which has showed volatility in raw material prices.
Even though the rubber price has declined from its peak level other input costs like labour, power and
other raw materials continued its increasing trend and has affected the profitability. However the volatile
market condition has forced the Company to offer further reduction in price to its finished goods. To face
this challenge we strive to save cost in all areas of production to offer better competitive price. Our
continuous improvement in production process, cutting edge technology, good customer care, vendor
development and better utilization of resources also helped the Company to achieve our remarkable
growth in profitability.
Your Company has grown over the years and is widely recognized as a world class manufacturer of tyre
retreading materials. Now Eastern Treads has a brand image closely associated with tyre retreading
industry and the Company is arming towards a bright future.
Marketing Strategy
Over the years we built our Eastern brand and recognition as a premier tyre retreading solution provider.
Your Company is one of the market leaders in the production of tyre retreading materials and has proven
to the market that we are firmly committed to supply quality products. We provide premium quality
retreading products that can offer better value and more strength by producing reliable retreads that have
good characteristics in mileage, heat dispersion and traction. Now we earned reputation as a specialist
in producing comprehensive range of tyre retreading materials that can excel in all weather and road
conditions.
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Our extensive product portfolio with Eastern brand are sold through our domestic and international
business networks. This brand reputation with quality products facilitated us to get acceptance in
institutional buyers like large retreading companies and Road Transport Corporations. This abetted us to
get the order from KSRTC to cater their entire retreading requirement and major orders from MSRTC
during this year. Moreover our retreading services have been further supported by our franchise partners,
reflecting strong growth in our priority markets. Our healthy network and brand presence have enabled us
to further expand our presence internationally. Now we are growing our presence in various export
markets like UAE, African Countries, Nepal, Bangladesh, Bhutan etc. and are exploring various
international markets.
Now we emphasis to further intensify our customer base by better market penetration in existing as well as
new geographies and to further strengthen and establish a long standing association with our consumers
by providing total tyre retreading solutions. As there is a growing demand for quality products in domestic
and international markets, with our brand image on well performing products and with more than two
decades of manufacturing experience in retreading industry we are on the move to capture our market
share globally by offering premium range retreading materials.
Raw Materials
Even though the prices of key raw materials like natural and synthetic rubber come down from its peak
level prices of other inputs have increased due its supply deficit. Import of such inputs became inevitable
but imports are become expensive as inflation remained above manageable level. Since this industry is
highly raw material intensive, the volatility in input costs has affected the profitability of the Company.
Your Company has managed the situation by developing reliable, efficient and sustainable raw material
supply sources of national and International level. The Company has maintained good relationship with
its suppliers by working closely with them through which the raw material procurement system has
functioned effectively.
Quality
The Company is always keen on maintaining quality and productivity. Your Company has built its brand
with its commitment to total quality management. The products are tested at every stage of manufacturing
to ensure that the very best is made available to the market that provides the exact customer requirement.
The Company's policy of best manufacturing practices has been bestowed with various quality
certifications and accreditations to its credit.
To cater for the different needs of the market our research and development team is committed to
understand the customer demands and to develop products that make value and satisfaction to the
customers. This made the Company to keep its competitive edge in the market by producing products
which can provide superior performance, safety and comfort under different and extreme road
conditions. In addition to give high quality products we provide after sale services and expert technological
assistance aiming to serve complete service to our customers.
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Public Shareholding
Your Directors have given in principle approval to waive the interest on allotment money due and to issue
final notice to shareholders holding partly paid shares to pay the allotment money due, `5/- per share, and
in the event of non-payment thereof to proceed to forfeit the partly paid equity shares, subject to approvals
by SEBI including exemptions under SEBI (SAST) Regulations, 2011 and approvals from other Statutory
Authorities required if any. Your Directors request to the members, who have not yet paid their allotment
money, to pay the same at the earliest and make the shares fully paid.
Listing and Dematerialisation
The equity shares of the Company are listed in the Bombay Stock Exchange, Cochin Stock Exchange
and Madras Stock Exchange. The facility to demat the shares is made available with both the depositories
in India, NSDL and CDSL to give a choice to shareholders in selecting depository participant. Your
Directors earnestly request you to convert your holdings to dematerialized form and derive the benefits of
holding the shares in electronic form.
Fixed Deposits
The Company has not accepted any fixed deposits during the year to which the provisions of Section 58A
of Companies Act, 1956 and Section 73 of the Companies Act, 2013 are applicable.
Conservation of Energy, Technology Absorption, Foreign Exchange Inflow & Outflow
In pursuit of continual improvement towards energy conservation and compliance with environmental
regulations, efforts have been taken to utilise the energy most efficiently and to nurture and preserve the
environment. The Company has taken all possible efforts to conserve energy and absorb latest
technology. The information required under Section 217(1) (e) of the Companies Act, 1956 read with Rule
2 of the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988,regarding
Conservation of Energy, Technology Absorption, Foreign Exchange Inflow and Outflow are given in
Annexure A to this report.
Corporate Governance
The Company's Equity Shares are listed with Bombay Stock Exchange, Cochin Stock Exchange and
Madras Stock Exchange. Your Company has been complying with the principles of good Corporate
Governance over the years and is committed to the highest standards of compliance. The Company has
complied with the Corporate Governance requirements, as stipulated under Clause 49 of the Listing
Agreement.
A separate section on Corporate Governance along with a certificate from the Auditors of the Company
confirming the compliance is annexed as Annexure Band forms part of this Report.
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The Report on Management Discussion and Analysis is forming part of Director's Report and is given in
Annexure C.
Auditors
M/s. JVR & Associates, Chartered Accountants, Kochi-16, were reappointed as the Auditors of the
Company at the previous Annual General Meeting. They hold office until the conclusion of the ensuing
Annual General Meeting. They are eligible for re-appointment for a period of 3 years and the proposal has
been placed before the Members. Necessary certificate has been obtained from the Auditors as per
Section 139 (1) of the Companies Act, 2013
Cost Audit Report
The Company has submitted the Cost Compliance Report for the year 2012-13 duly certified by a Cost
Accountant to the Central Government within the due date. M/s. K.A Felix & Co., Cost Accountants,
Cochin were appointed with the approval of the Central Government to carry out the cost audit in respect
of the Company for the financial year 2013-14 and they have submitted their report to the Board of
Directors, and will submit the report to the Ministry of Corporate Affairs, Government of India within the
due date. Based on the recommendation of the Audit Committee, M/s. K.A Felix & Co., Cost Accountants,
Cochin, being eligible have also been appointed by the Board as the Cost Auditors for the financial year
2014-15.
Board of Directors
Mr. Navas M Meeran, Chairman,retire by rotation at the ensuing Annual General Meeting and being
eligible, offer himself for reappointment. The Board recommends his reappointment. None of the
Directors is disqualified under Section 274(1) (g) of the Companies Act, 1956 and Section 164 of the
Companies Act, 2013.
Directors' Responsibility Statement
Pursuant to the requirement of Sub-Section 2AA of Section 217 of the Companies Act, 1956, your
Directors confirm that:(a)
in the preparation of the Annual Accounts, the applicable Accounting Standards have been
followed and that there are no material departures ;
(b)
selected such accounting policies and applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of
your Company at the end of the financial year and of the profit of the Company for that year;
(c)
taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act,1956 for safeguarding the assets of your
Company and for preventing and detecting fraud and other irregularities;
15
(d)
Kochi
17/05/2014
Navas M Meeran
Chairman
16
2013-14
2012-13
1. Electricity
(a) Purchased
Unit (Kwh)
Total Amount (`)
24,77,394.00
16,45,008.00
1,34,09,936.00
90,98,191.00
5.41
5.53
46,500.00
45,228.00
2.18
2.54
26.00
19.08
0.00
0.00
2741.767
2,037.360
129.464
75.030
434.610
269.270
212.529
177.420
301.526
355.960
1305.310
1,303.160
492.447
400.700
0.000
0.000
In order to cater the customer specific requirements your Company has developed and successfully
introduced a range of compounds and is working on new compounds, raw materials etc to improve
the productivity further. To improve the quality and productivity new batch-off unit, curing press etc
were installed. The Company would undertake appropriate R & D activities depending up on the
future requirements. The Company use the latest technology and operates to the highest possible
standards. No technology has been imported by the Company during the period.
17
2012-13
431.21
124.42
26.28
0.90
18
Board of Directors
The Board is made up of one Executive Director and six Non-executive Directors, of whom three are
independent. The Chairman of the Board is a Non-executive Director. The Composition, category and
attendance of each Director at the Board meetings, last Annual General Meeting and Number of other
Directorship and Chairmanship / Membership of Committee of each Director in various companies is as
follows:
Category
P, C & NE
MD & ED
NE & I
NE & I
NE
NE & I
NE & N
Attendance
No. of other
Committee
Particulars
Directorships
membership
Board
Last Director Chairman Member Chairman
Meetings AGM
#
5
Yes
16
None
None
None
5
Yes
4
None
None
None
5
Yes
1
None
None
None
4
Yes
3
None
None
None
5
Yes
1
None
None
None
4
Yes
2
None
None
None
3
No
1
None
None
None
(Nominee of KSIDC)
C: Chairman; P: Promoter; E: Executive Director; N: Nominee Director (Nominee of KSIDC) I: Independent Director;
NE: Non-Executive Director; MD: Managing Director;
# This includes directorships in Public and Private Ltd companies.
Date
1
2
3
4
5
Board Strength
7
7
7
7
7
7
6
6
7
5
*Meeting held on 10/04/13 was adjourned and adjourned meeting held on 29/04/13
19
Audit Committee
The Audit Committee is duly constituted in accordance with Clause 49 II (C) and (D) of the Listing
Agreement and Section 292A of the Companies Act, 1956 and Section 177 of the Companies Act,
2013.The Members of the Committee are:
Name
Category
Position
Chairman
Member
Mr.Naiju Joseph*
Non-Executive Director
Member
Managing Director
Member
Two third of the members are Independent Directors and all the members of the Audit Committee are
financially literate. The composition, role, functions and powers of the Audit Committee are in line with
the requirements of applicable laws and regulations. The Audit Committee shall oversee financial reporting
process and disclosures, review annual financial statements, review related party transactions, review
financial and risk management policies, oversee compliance with Stock Exchanges and legal
requirements concerning financial statements, review auditors qualifications, compliance with Accounting
Standards, fixation of audit fee and also approval for the payment of any other services etc.
The Audit Committee meetings are usually held at the Registered Office of the Company and are usually
attended by the Chairman and the members of the Committee, representatives of Internal and Statutory
Auditors and Chief Financial Officer. The Company Secretary acts as Secretary to the Audit Committee.
The Chairman of the Audit Committee was present at the Company's Annual General Meeting held on
26/06/2013 to answer the shareholders' queries.
The Audit Committee strictly adheres to the terms of reference which is prepared in compliance with
Section 292A of the Companies Act, 1956, Section 177 of the Companies Act, 2013, and Clause 49 of the
Listing Agreement.
Five Audit Committee meetings were held during the year 2013-14. The dates on which the meetings were
held are 10/04/2013 & 29/04/2013(adjourned meeting), 13/08/2013, 13/11/2013, 13/02/2014,31/03/2014.
The number of meetings attended by each committee members of the Audit Committee is as follows:
Name
20
Remuneration Committee
The Remuneration Committee was constituted in compliance with the requirements of Clause 49 of the
Listing Agreement. The Committee analyses and recommend to the Board of Directors regarding the
remuneration payable to Board members including Executive Directors and Managing Director, sitting
fees payable to Directors and remuneration payable to the employees working at the senior management
level.
The Committee approves the minimum remuneration payable to the Managing Director/ Executive
Directors in the event of loss or inadequate profits in any year, within the limits and subject to the
parameters as prescribed in Schedule XIII of the Companies Act, 1956. The Chairman of the
Remuneration Committee was present at the Company's Annual General Meeting held on 26/06/2013 to
answer the shareholders' queries.
The Committee Members are:
Name
Category
Position
Chairman
Member
Non-Executive Director
Member
Salary
Perquisites
Commission
Sitting Fees*
0.00
0.00
0.00
0.00
0.00
0.00
0.00
4,944.00
0.00
0.00
0.00
3,708.00
0.00
0.00
0.00
3,708.00
Even though the terms of appointment of Mr. M.E. Mohamed as the Managing Director include the
payment of remuneration, he has waived his right to remuneration. Hence no remuneration has been paid
to Mr. M.E. Mohamed, Managing Director during the financial year.
21
Category
Promoter / Non-Executive Director
Managing Director / Executive Director
Non-Executive Independent Director
Position
Chairman
Member
Member
Category
Position
Non-Executive Director
Chairman
Member
Member
The Shareholders' Grievance Committee looks into shareholders' complaints like non-transfer of shares,
non-receipts of balance sheet besides complaints from SEBI, Stock Exchanges, Court and various
Investor Forums. It oversees the performance of the Registrars and transfer agents, and recommends
measures for overall improvement in the quality of investor services. The Company Secretary acts as the
secretary to the Committee.
During the year under review, no complaints received from the shareholders and there were no
outstanding complaints as on 31/03/2014. No request for share transfer was pending as on 31/03/2014.
General Body Meetings
The location and time for last three Annual General Meetings are as follows:
Year
Location
Date
Day
Time
2012-2013
26/06/2013
Wednesday
03.00 PM
2011-2012
23/08/2012
Thursday
03.00 PM
2010-2011
Wednesday
10.30 AM
No Extraordinary General Meeting was held during the financial year and no special resolutions were put
through postal ballot last year and no proposal for the same this year.
22
Disclosures
(a) Related party transactions
The transactions of purchase/sale of finished goods, raw materials and job work with concerns in
which Directors/relatives of Directors have interest have been made in the ordinary course of
business at prices which are reasonable having regard to quality and prevailing market prices or
prices at which transactions of similar goods or services have been made with other parties.
During the year, the Company had not entered into any transaction of a material nature with any of the
related parties which may have potential conflict with the interest of the Company. All transactions
with the related parties were in the ordinary course of business and at arms length. The Register of
Contracts containing transactions, in which Directors are interested, is placed before the board
regularly.Full disclosure of related party transactions as per Accounting Standard -18 is given under
Note no: 30 of Notes to the Financial Statements.
(b) Compliance by the Company
The Company has complied with the requirements of the Stock Exchanges, SEBI and other statutory
authorities on all matters relating to capital markets. No penalties, strictures imposed on the
Company by Stock Exchanges or SEBI and other Statutory Authorities on matters related to capital
markets during the last three years. The Board quarterly reviews the compliance report on applicable
laws to the Company as well as steps taken by the Company to rectify the instances of noncompliance, if any
Means of Communication
The quarterly financial results, after their approval by the Board of Directors, are promptly issued to the
Stock Exchanges with whom the Company has listing arrangements. These Quarterly Financial Results
are normally published in Business Line, Deepika or New Age and are also posted on the Company's
website: www.easterntreads.com.
The Company's website also displays all official news releases, if any. All material information about the
Company is promptly sent to the Stock Exchanges. The Management Discussion and Analysis forms part
of the Annual Report.
Code of Conduct
The Board approved the code of conduct applicable to the Board Members and the Senior Management
Personnel of the Company at its meeting held on 28/04/2009. The Code has been posted on the website
of the Company. All Board Members and Senior Management Personnel have affirmed compliance with
the Code and a declaration to this effect signed by the Managing Director is annexed to this report.
23
(f)
Trading Symbol
- ETD
Trading Symbol
- EASTETREAD
24
(g) Market Price Data: High, Low during each month in last financial year
BSE
Month
High Price
Low Price
April 2013
18.00
18.00
May 2013
17.15
15.25
June 2013
15.50
14.05
July 2013
14.10
10.36
August 2013
11.00
9.60
September 2013
13.20
11.55
November 2013
15.05
12.90
December 2013
15.00
14.20
January 2014
15.00
13.50
February 2014
15.00
12.75
March 2014
14.60
12.20
October 2013
(i)
(h)
Category
Equity
No. of shares
%
Preference
No of shares
Promoters
Body Corporate
NRI
Public
Others (Clearing Member)
3427500
280678
7901
1874210
1211
61.30
5.02
0.14
33.52
0.02
1000000
Nil
Nil
Nil
Nil
100
Nil
Nil
Nil
Nil
Total :
5591500
100.00
1000000
100
26
% of
shareholders
No. of shares
holding
Up to 500
1177
63.79
367711
6.58
501 1000
1001 2000
490
66
26.56
3.58
441215
100700
7.89
1.80
2001 3000
42
2.28
106964
1.91
3001 4000
14
0.76
50212
0.90
4001 5000
12
0.65
57450
1.03
5001 10000
16
0.87
138200
2.47
Above 10000
28
1.52
4329048
77.42
100.00
5591500
100.00
Category
Total
1845
% Shares
Preference
Above 10000
100.00
1000000
100.00
Total
100.00
1000000
100.00
27
M.E Mohamed
Managing Director
28
Auditors Certificate
on compliance with the conditions of
Corporate Governance
under clause 49 of the Listing Agreement
29
30
The advantages of Eastern Treads in tyre retreading industry are its vast experience, prompt after
sales service, good customer relations and network, awards and recognitions to prove consistent
quality, judicious purchase of materials, reputation and brand image of its quality products, talented
technical and marketing personnel and supporting management which gives leadership and
acceptability in the market.
The entry of branded tyre majors including multinational corporations in retreading industry may be a
threat to the Company, however, it creates awareness in the customers about retreading and its
quality. Since the ability of the retreading sector to capture potential replacement demand would
depend on the awareness among customers of the quality and benefits of retreading, as the
customers further know tyre retreading, the market will expand at a fabulous speed.
Another area of concern for retreading industry is the unhealthy competition from small and
unorganized players who are producing poor quality retreads which may hurt the consumer
confidence in retreading. We are confident that customers have faith in our products and we shall be
able to get reasonable market share in the short term.
c) Outlook
With the advancement of technology and economies of scale, retreading has reached a level of quality
and sophistication unprecedented in its history, and now it has overcome its past reputation and
become part of established fleet management practice for commercial and utility operations. Since
the mentality of the market towards retreading has changed and it became an integral element of the
tyre market, the scope for our business expansion is high.
Retreading is not only cost effective, but dependable, reliable, safe and environment friendly. We are
of the view that Eastern Treads can use this opportunity to continue its passionate journey towards
customer delight and loyalty. We have developed business plans to exploit the market to become the
most successful retreader with the highest quality products, delivering the best possible return on
investment to the fleets.
d) Risks and Concerns
Our growth is fully depending on tyre replacement market, which depends on various factors like
economic growth, infrastructural development, growth in the automobile industry and transportation
etc. The Company is exposed to various risks which are normal in any business enterprise. The main
ones and the steps undertaken to mitigate these risks are mentioned below:
Financial Risk
Credit risk on account of material supplied to customers has been reduced by the introduction of cash
and carry policy, advance and bank guarantee from the customers. The risk of delayed payment from
State Transport Corporations is controlled and managed by continuous follow-up.
31
32
f)
g)
33
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 profit for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 issued by the Central Government
of India in terms of sub-Section (4A) of Section 227 of the Act, we give in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a.
We have obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the purpose of our audit;
b.
In our opinion proper books of account as required by law have been kept by the Company so
far as appears from our examination of those books.
c.
The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by
this Report are in agreement with the books of account.
d.
In our opinion, the Balance Sheet and Statement of Profit and Loss comply with the
Accounting Standards, notified under the Companies Act, 1956 read with the General
Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013;
e.
On the basis of written representations received from the directors as on March 31, 2014,
and taken on record by the Board of Directors, none of the directors is disqualified as on
March 31,2014 from being appointed as a director in terms of Clause(g) of sub-Section (1) of
Section 274 of the Companies Act, 1956.
f.
Since the Central Government has not issued any notification as to the rate at which the cess
is to be paid under Section 441A of the Companies Act, 1956 nor has it issued any Rules
under the said Section, prescribing the manner in which such cess is to be paid, no cess is
due and payable by the Company.
Kochi-16
17/05/2014
35
The Annexure referred to in paragraph 1 of the our Report of even date to the members of
Eastern Treads Limited on the accounts of the Company for the year ended 31st March, 2014.
In terms of Companies (Auditor's Report) Order 2003, issued by the Government of India, in terms of
Section 227 (4A) of The Companies Act, 1956, we further report, on the matters specified in paragraph 4
and 5 of the said Order, to the extent applicable to the Company, that:1. (i)
The Company has maintained proper records showing full particulars including quantitative
details and situation of its fixed assets, which requires to be updated.
(ii)
The fixed assets have been physically verified by the management during the year. We are
informed that no serious discrepancies have been noticed by the management on such
verification as compared to the aforesaid records of fixed assets.
(iii)
2. (i)
The management has carried out physical verification of stocks at reasonable intervals during the
year.
(ii)
In our opinion, the procedure of verification of stocks followed by the Company are reasonable
and adequate having regard to the size of the company and the nature of its business.
(iii) On the basis of our examination of the records of inventory, we are of the opinion that the
Company has a proper system of maintaining records of inventory. We are informed that the
discrepancies between the stock records and the physical stocks are not material.
3. (i)
The Company has not granted loans to any party covered in the register maintained under
Section 301 of The Companies Act, 1956.
(ii)
The Company has not taken loans from any party covered in the register maintained under
Section 301 of The Companies Act, 1956.
4. In our opinion and according to the information and explanations given to us, there are adequate
internal control systems commensurate with the size of the Company and the nature of its business
with regard to the purchases of inventory and fixed assets and for the sale of goods and services.
There is no continuing failure to correct weaknesses in internal controls.
5.
(i)
The particulars of contracts or arrangements referred to Section 301 of the Act have been
entered in the register required to be maintained under that Section.
(ii)
In our opinion and according to the information and explanations given to us, the transactions
made in pursuance of contracts or arrangements entered in the register maintained under
Section 301 of the Act and exceeding the value of five lakhs rupees in respect of any party during
36
the year have been made at prices which are reasonable having regard to prevailing market
prices at the relevant time.
6. The Company has not accepted any deposit from the public.
7. In our opinion, the Company has an internal audit system commensurate with the size and nature of its
business.
8. We have broadly reviewed the books of account maintained by the Company pursuant to the Rules
made by the Central Government for the maintenance of the cost records under Section 209(1)(d) of
The Companies Act,1956 and are of the opinion that prima facie, the prescribed accounts and records
have been made and maintained.
9.
(i) According to the records of the Company, the company has been generally regular in depositing
undisputed statutory dues with the appropriate authorities.
(ii)
According to the information and explanations given to us, there are no undisputed statutory
dues which are outstanding as on 31stMarch, 2014, for a period of more than six months from the
date they became payable.
(iii)
According to the records of the company, there are no statutory dues which have not been
deposited on account of any dispute, except the following disputed amounts.
Name of the
Statute
Nature of
Dues
CST
CST
3,80,200.00
2008-2009
Vehicle
Interception
14,400.00
2009-2010
VAT
Amount (Rs)
Period to
which the
amount
relates
Deputy
Commissioner(Appeals),
Ernakulam
Commercial Tax Officer,
Kattappana
10. The accumulated loss of the company is not more than fifty percent of its net worth. The Company
has not incurred cash losses during the financial year covered by our audit and in the immediately
preceding financial year
.
11. The Company has not defaulted in repayment of dues to Financial Institutions/Banks.
37
12. The Company has not granted any loans on the basis of security by way of pledge of shares,
debentures and other securities.
13. The Company is not a chit fund or a nidhi/mutual benefit fund/society.
14. The Company is not dealing or trading in shares, securities, debentures and other investments.
15. The Company has not given any guarantee for loans taken by others from banks or financial
institutions.
16. The term loans has been utilised for the purposes for which they have been availed.
17. On the basis of an overall examination of the Balance Sheet of the Company, no funds raised on a
short term basis, have been used for long term investments.
18. According to the information and explanations given to us, the Company has not made any
preferential allotment of shares to parties and Companies covered in the Register maintained under
Section 301 of The Companies Act, 1956
19. The Company has not issued any debentures during the year.
20. The Company has not raised money by public issues during the year.
21. Based upon the audit procedures performed and information and explanations given by the
management, we report that no fraud on or by the Company has been noticed or reported during the
course of our audit.
For JVR & ASSOCIATES
Chartered Accountants
(F. R. No. 011121S)
JOMON K GEORGE
Partner
M.No.202144
Kochi-16
17/05/2014
38
Amount in `
Previous Year
Notes
Current Year
3
4
153,458,500.00
(2,875,012.89)
152,664,500.00
(19,284,510.16)
5
6
1,315,018.54
14,439,730.93
1,871,022.00
1,010,878.78
1,531,363.08
1,959,984.00
7
8
9
10
101,426,611.78
69,815,144.01
15,143,199.92
5,258,239.53
43,423,146.47
39,752,608.56
6,862,815.55
3,163,600.00
359,852,453.82
231,084,386.28
14
15
64,359,519.41
672,012.33
23,703,117.66
523,000.00
42,827,902.14
39,202.18
111,437.00
15,118,168.73
40,000.00
16
17
18
19
20
74,005,425.07
148,152,559.42
2,985,321.74
33,931,161.81
11,520,336.39
52,126,934.38
79,730,499.88
7,270,657.86
27,776,779.33
6,042,804.78
359,852,453.82
231,084,386.28
Total
II.ASSETS
(1) Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets
(ii) Intangible Assets
(iii) Capital work-in-progress
(b) Deferred Tax Assets (Net)
(c) Long Term Loans and Advances
(d) Other Non-current Assets
(2) Current Assets
(a) Inventories
(b) Trade Receivables
(c) Cash and Cash Equivalents
(d) Short Term Loans and Advances
(e) Other Current Assets
11
12
13
Total
M.E.MOHAMED
M S RANGANATHAN
BAIJU.T
JOMON K GEORGE
Managing Director
Director
Company Secretary
Partner
39
PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
Particulars
I. Revenue from Operations
II. Other Income
Notes
21
22
649,979,890.27
3,262,065.17
380,884.56
895,734,245.42
650,360,774.83
23
487,656,468.01
360,341,609.14
24
25
191,299,088.28
(14,058,312.89)
54,070,672.16
150,972,209.31
(858,931.11)
39,043,882.29
53,418,757.90
8,259,049.24
7,909,426.03
82,410,759.67
36,320,814.90
5,840,719.88
5,851,639.98
37,830,928.03
870,965,908.40
635,342,872.42
(III - IV)
24,768,337.02
15,017,902.41
(V - VI)
24,768,337.02
15,017,902.41
8,054,700.00
3,163,600.00
411,232.05
1,422,648.78
(631,411.13)
16,409,497.27
10,651,832.71
3.07
2.02
IV. Expenses:
Cost of materials consumed
Purchase of Stock-in-T
rade
Changes in Inventories
Operating Expenses
Employee Benefits
Financial costs
Depreciation and amortization expense
Other expenses
26
27
28
Total Expenses
Amount in `
Previous Year
892,472,180.25
Current Year
(VII-VIII)
304,139.76
M.E.MOHAMED
M S RANGANATHAN
BAIJU.T
JOMON K GEORGE
Managing Director
Director
Company Secretary
Partner
40
Employee Benefits
a.Short term employee benefits such as salaries, wages, bonus and incentives which fall due within 12
months of the period in which the employee renders the related services which entitles him to avail such
benefits are recognised on an undiscounted basis and charged to the profit and loss account.
b.Defined Contribution Plans - Contributions made to the Recognised Provident Fund & Employee State
Insurance Corporation are expensed to the Profit & Loss Account. The Company's obligation is limited to
the amount contributed by it.
c.Defined Benefit Plans - The Company is a member of Group Gratuity Scheme administered by LIC of
India. The liability for gratuity is accounted on the basis of acturial valuation done by L I C of India.
Foreign Exchange Transactions
Revenue denominated in foreign currencies is translated into relevant functional currencies using the
exchange rate in effect on the date of transaction. Transaction gain or loss realised upon the settlement of
foreign currency transactions are included in determining net profit for the period in which transaction is
settled.
The premium or discount on a forward exchange contract taken to hedge foreign currency risk of an
existing asset/liability is recognised over the period of the contract and is recognised in the statement of
profit and loss.
The forward exchange contracts taken to hedge existing assets/liabilities are translated at the closing
exchange rates and resultant exchange differences are recognised in the same manner as those on the
underlying foreign currency asset/liability.
Borrowing Costs
Borrowing costs are expensed in the absence of outlay on qualifying assets.
Segment Reporting
In the absence of more than one distinguishable business/ geographical segment, segment information is
not given.
Taxes on Income
Income tax expense comprises current tax and deferred tax charge or credit. The current tax is
determined as the amount of tax payable in respect of the estimated taxable income of the period. The
deferred tax charge or credit is recognised using prevailing enacted or substantively enacted tax rates.
Where there are unabsorbed depreciation or carry forward losses, deferred tax asset are recognised only
if there is virtual certainty of realisation of such assets. Other deferred tax assets are recognised only to
the extent there is reasonable certainty of realisation in future. Deferred tax assets are reviewed at each
Balance Sheet date based on the developments during the period.
MAT Credit is recognised as an asset only when and to the extent there is convincing evidence that the
company will pay normal income tax during the specified period. In the year in which the MAT credit
becomes eligible to be recognised as an asset in accordance with the recommendations contained in the
guidance note issued by The Institute of Chartered Accountants of India, the said asset is created by way
of a credit to the profit and loss account and shown as MAT Credit Entitlement. The company reviews the
same at each Balance Sheet date and writes down the carrying amount of MAT credit entitlement to the
extent there is no longer convincing evidence to the effect that company will pay normal Income Tax during
the specified period.
42
Impairment of Assets
The carrying amount of assets is reviewed at each Balance Sheet date if there is any indication of
impairment based on internal/external factors. An impairment loss will be recognised wherever the
carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is
greater of the assets net selling price and value in use. In assessing the value in use; the estimated future
cash flows are discounted to the present value using the weighted average cost of capital.
Provisions, Contingent Liabilities and Contingent Assets
The company creates a provision when there is a present obligation as a result of past event that probably
requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A
disclosure for a contingent liability is made when there is a possible obligation that may, but probably will
not, require an outflow of resources. When there is a possible obligation or a present obligation in respect
of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent
assets are neither recognised nor disclosed in the financial statements.
Amount in `
3. SHARE CAPITAL
Current Year
Previous Year
60,000,000.00
60,000,000.00
100,000,000.00
100,000,000.00
160,000,000.00
160,000,000.00
55,915,000.00
55,915,000.00
3,250,500.00
4,008,500.00
52,664,500.00
51,906,500.00
794,000.00
758,000.00
53,458,500.00
52,664,500.00
100,000,000.00
100,000,000.00
153,458,500.00
152,664,500.00
A. Authorised
60,00,000 Equity shares of ` 10 each
(Previous Year 60,00,000equity shares of ` 10/- each) .
10,00,000 Preference Shares of ` 100 each
(Previous Year - 10,00,000 Preference
Shares of `100 each)
43
Current Year
Previous Year
Number of % of share Number of % of share
shares
holding
shares
holding
25.07%
11.62%
11.10%
11.00%
1,401,900
649,600
620,800
615,000
25.07%
11.62%
11.10%
11.00%
Current Year
Previous Year
Number of % of share Number of % of share
shares
holding
shares
holding
400,000
400,000
40.00%
40.00%
600,000
600,000
60.00%
60.00%
Current Year
Amount in `
Previous Year
2,000,000.00
2,000,000.00
(21,284,510.16)
16,409,497.27
(31,936,342.87)
10,651,832.71
(4,875,012.89)
(2,875,012.89)
(21,284,510.16)
(19,284,510.16)
11,119,920.00
1,870,895.60
1,448,915.33
1,531,363.08
14,439,730.93
1,531,363.08
1,871,022.00
1,871,022.00
1,959,984.00
1,959,984.00
(Term loan from The Federal Bank Ltd is secured by way of first
charge on the fixed assets and are further guaranteed by the
Promoter Directors of the Company)
44
Amount in `
7. SHORT TERM BORROWINGS
Current Year
Previous Year
101,428,138.72
43,423,146.47
From Banks
Cash Credit from The Federal Bank Limited
(The Cash Credit from The Federal Bank Ltd is
secured by way of first charge on the floating
assets and second charge on the fixed assets of
the company and are further guaranteed by the
Promoter Directors of the Company)
Packing Credit from The Federal Bank Limited
(PCFC is secured by way of first charge on the floating
assets and second charge on the fixed assets of the
company and are further guaranteed by the Promoter
Directors of the Company)
(1,526.94)
101,426,611.78
43,423,146.47
- For Purchases
53,645,166.83
31,556,524.81
- For Expenses
16,169,977.18
81,96,083.75
69,815,144.01
39,752,608.56
8. TRADE PAYABLES
Sundry Creditors:
3,300,000.00
1,179,000.00
3,499,127.12
4,249,298.95
Other Payables
7,165,072.80
2,613,516.60
15,143,199.92
6,862,815.55
8,054,700.00
3,163,600.00
(2,796,460.46)
5,258,239.53
3,163,600.00
45
173,446.93
111,437.00
111,437.00
TOTAL
As at
01.04.2013
Computer Software
As at
01.04.2013
29,312,915.44
1,397,818.58
TOTAL
181,069.00
3,551,055.26
6,705,334.39
6,705,334.39
Addition
(6,816,771.39)
(6,816,771.39)
Deletions
Deletions
Cost
768,460.00
Addition
5,183,900.85
725,700.30
For the
Period
1,578,887.58
4,839,344.26
1,260,299.78
5,904,809.73
897,157.54
5,622,241.16
As at
Upto
31.03.2014 31.03.2013
941,906.93 134,244.75
As at
Upto
31.03.2014 31.03.2013
91,972.11
664,895.36
59,500.36
494,524.31
42,614.98
256,313.74
For the
Period
67,679,569.88
1,261,613.02
3,890,932.27
917,156.68
2,495,634.11
639,837.85
4,048,555.80
269,894.60
Deletions/
Upto
Adjustments 31.03.2014
-
899,987.00
As at
31.03.2013
228,177.67
324,868.34
331,143.46
744,775.06
299,934.68
1,526,096.10
111,437.00
111,437.00
As at
As at
31.03.2014 31.03.2013
39,202.18
As at
As at
31.03.2014 31.03.2013
64,359,519.41 42,827,902.14
317,274.56
948,411.99
343,143.10
3,409,175.62
257,319.69
1,573,685.36
Deletions/
Upto
Adjustments 31.03.2014
Depreciation
135,649.86
For the
Period
(150.00)
(150.00)
Depreciation
59,905,943.71 7,773,776.17
1,169,640.91
3,226,186.92
857,656.32
2,001,109.80
597,222.86
3,792,242.06
899,987.00
As at
31.03.2014
Deletions/
Upto
Adjustments 31.03.2014
Depreciation
27,965,364.07
899,987.00
As at
Upto
31.03.2014 31.03.2013
(7,672.00) 132,039,089.29
(7,672.00)
Deletions
Cost
1,295,961.00
71,500.00
1,188,799.78
7. Office Equipments
3,158,924.87
303,903.00
2,745,884.86
897,157.54
5,318,338.16
6. Vehicles
5. Lab Equipments
65,586,211.99 17,484,786.18
6,816,771.39
Addition
21,148,592.68
899,987.00
As at
01.04.2013
Cost
2. Building
TANGIBLE ASSETS
46
Amount in `
Current Year
Previous Year
13,225,087.00
1,109,917.60
Security Deposits
2,737,493.00
3,471,253.00
Security Deposits
4,760,352.00
4,760,352.00
2,980,185.66
5,776,646.13
23,703,117.66
15,118,168.73
523,000.00
40,000.00
523,000.00
40,000.00
Capital Advance
Advance for Land/Machinery/Civil Works
12,333,687.77
10,547,276.46
Work in Progress
15,676,196.81
9,857,180.28
Finished Goods
35,184,119.26
27,315,807.97
1,391,791.75
1,020,806.68
Packing Materials
1,026,470.60
332,274.58
261,053.15
136,506.00
8,132,105.73
2,917,082.41
74,005,425.07
52,126,934.38
7,146,592.86
12,150,499.63
141,005,966.56
67,580,000.25
148,152,559.42
79,730,499.88
1,310,508.29
4,927,332.41
1,358,148.00
2,115,048.00
316,665.45
228,277.45
2,985,321.74
7,270,657.86
Cash in Hand
47
Amount in `
19. SHORT TERM LOANS AND ADVANCES
(unsecured considered good)
Staff Advances
Advances to Suppliers
Other Advances
Current Year
Previous Year
581,865.40
388,695.26
30,401,675.16
27,312,484.07
2,947,621.25
75,600.00
33,931,161.81
27,776,779.33
7,000,000.00
2,200,000.00
754,687.85
1,216,584.35
2,230,269.81
876,374.80
516,331.96
45,031.00
121,683.56
1,490,347.73
1,111,830.11
11,520,336.39
6,042,804.78
878,674,958.32
72,118,648.98
650,235,361.03
49,989,903.44
806,556,309.34
600,245,457.59
43,120,661.32
12,442,201.85
31,060,695.62
28,884,745.06
5,992,394.96
2,525,166.83
236,001.96
79,937,749.94
114,531.30
43,737,582.44
886,494,059.28
643,983,040.03
3,915,758.00
3,521,577.31
2,177,527.67
2,585,567.43
115,164.70
110,294.50
2,062,362.97
2,475,272.93
892,472,180.25
649,979,890.27
-Export Sales
Sale of Compound mix
Sale of Raw Materials (Gross)
Less: Excise Duty Paid
b) Sale of services
Job Work Receipts
c) Other Operating Revenues
Sale of Scrap & Waste(Gross)
Less: Excise Duty Paid
48
Amount in `
22. OTHER INCOME
Interest Income
Other non Operating Income
Current Year
Previous Year
69,691.44
3,192,373.73
247,749.56
133,135.00
3,262,065.17
380,884.56
10,547,276.46
9,328,541.93
489,442,879.32
361,560,343.67
12,333,687.77
10,547,276.46
487,656,468.01
360,341,609.14
52,252,107.82
38,193,794.93
38,193,794.93
37,334,863.82
14,058,312.89
858,931.11
2,710,702.00
972,360.80
17,441,858.85
14,282,480.50
13,608,260.59
14,148,806.57
6,272,014.54
3,251,044.95
Consumables
4,209,598.32
2,550,239.69
9,828,237.86
3,838,949.78
54,070,672.16
39,043,882.29
46,500,040.90
32,020,822.56
1,733,200.00
1,328,312.34
17,322.00
324,194.00
5,168,195.00
2,647,486.00
53,418,757.90
36,320,814.90
Gratuity
Staff welfare expenses
809,083.00
5,906,500.00
5,102,372.00
1,543,466.24
589,838.88
148,509.00
8,259,049.24
5,840,719.88
49
Amount in `
Current Year
405,000.00
30,500.00
60,750.00
622,790.00
1,095,414.05
1,885,125.00
641,879.67
3,047,485.00
8,801,962.00
20,618,457.16
6,472,425.00
9,256,419.68
29,472,552.11
82,410,759.67
Previous Year
330,000.00
27,500.00
55,500.00
266,748.00
378,117.00
582,419.00
512,403.00
999,285.00
4,557,828.10
9,457,747.48
4,263,588.23
5,661,970.00
10,737,822.22
37,830,928.03
29. CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)
a. Claims against the company not acknowledged as debt
Demand by KVAT Authorities in appeal pending disposal
Bank Guarantees outstanding
Foreign Bills Discounting
b. Estimated amounts of contracts remaining to be executed
on capital account and not provided for
30. RELATED PARTY DISCLOSURES
5,455,836.00
5,455,836.00
14,469,543.00
10,695,000.00
6,537,313.53
34,198,950.00
2,826,632.00
Name of the related party and nature of relationship where control exists
List of the companies in which one of the director has significant influence
Eastern Condiments Pvt Ltd
Eastern Mattresses Pvt Ltd
Eastern Retreads Pvt Ltd
Eastea Chai Pvt Ltd
Feroz Treads Pvt Ltd
Sheram Treads Pvt Ltd
Sumo Treads Pvt Ltd
Sumo Treads Pvt Ltd
Key Management Personnel
Navas M. Meeran
M.E. Mohamed
M S Ranganathan
Relative of Key Management Personnel
Alfa Rubbers
Rosekhan Rubbers
Sahara Treads
50
Transactions with related parties as per the books of account during the year ended Amount in `
Current Year
Previous Year
Eastern Condiments Pvt Ltd
Sharing of Expenses
Sale of Scrap
Eastern Mattresses Pvt Ltd
Purchase of Goods
Sharing of Expenses
Land Advance
Eastern Retreads Pvt Ltd
Sale of Finished Goods
Sharing of Expenses
Eastea Chai Pvt Ltd
Sharing of Expenses
Feroz Treads Pvt Ltd
Purchase of Goods
Sale of Goods
Job Work Payment
Job Work Receipt
Sharing of Expenses
Sheram Treads Pvt Ltd
Purchase of Goods
Sale of Raw Materials
Job Work Receipt
Sharing of Expenses
Sumo Treads Pvt Ltd
Purchase of Goods
Sale of Raw Materials
Job Work Receipt
Navas M. Meeran
Loan Accepted
Loan Repaid
M.E. Meeran
Loan Repayment
702,805.55
-
792,580.00
4,802.00
16,800.00
7,575,000.00
4,020.00
14,000.00
-
792,437.00
68,333.00
1,257,359.00
79,840.00
24,000.00
24,000.00
14,212,129.00
333,901.00
52,035.84
278,908.00
-
13,912,371.00
1,495,406.00
500,632.97
-
43,831.00
-
274,279.00
160,890.00
-
160,890.00
-
2,441,000.00
6,243,583.00
Alfa Rubbers
Purchase of Goods
Sale of Raw Materials
Job Work Payment
Job Work Receipt
14,597,918.01
64,995.00
4,543.00
326,899.00
14,644,127.00
26,719.00
530,637.49
Rosekhan Rubbers
Purchase of Finished Goods
Sale of Raw Materials
Job Work Payment
Job Work Receipt
Sharing of Expenses
13,948,407.50
2,613,570.00
672,316.00
130,000.00
14,632,101.00
1,509,091.00
59,206.00
374,573.00
51
Current Year
Sahara Treads
Purchase of Goods
14,142,968.00
Sale of Raw Materials
1,018,495.00
Job Work Payment
2,366,594.00
Job Work Receipt
491,168.00
Amount Outstanding as at 31st March 2014
List of the companies in which one of the directors has significant influence
Eastern Condiments (P) Ltd
Eastern Retreads (P) Ltd
Sheram Treads (P) Ltd
Feroz Treads (P) Ltd
Eastern Mattresses (P) Ltd
Eastea Chai (P) Ltd
Sumo Treads (P) Ltd
Nil
1,119.78 Cr
Nil
4,880,220.63 Dr
Nil
Nil
1,487,695.08 Dr
Amount in `
Previous Year
14,621,377.00
1,640,425.30
270,336.75
Nil
713,934.23
68,361.70
3,091,513.53
Nil
Nil
1,486,195.08
Cr
Cr
Dr
Dr
Nil
Nil
Nil
Nil
Nil
4,353,704.49 Dr
371,850.45 Dr
3,699,873.00 Dr
2,050,710.00
Service Cost
255,841.00
Interest Cost
164,057.00
Acturial (gain)/loss
Benefits paid
Projected benefit obligation at the end of the year
(397,697.00)
(96,720.00)
1,976,191.00
90,726.00
4,879.00
106,284.00
(96,720.00)
105,169.00
52
c) Reconciliation of present value of obligation and the fair value of plan assets
Present value of projected benefit obligation at the end of the year
Funded status of the plans
Funded status amount of liability recognised in the balance sheet
1,976,191.00
105,169.00
1,871,022.00
255,841.00
Interest Cost
164,057.00
(4,879.00)
(397,697.00)
17,322.00
Gratuity
Discount Rate
8% p.a.
7% p.a.
32. Basic and Diluted Earning Per Share (EPS), of face value ` 10/- has been calculated as under:
Numerator
Current Year
Previous Year
16,409,497.27
10,651,832.71
5,345,850
5,266,450
3.07
2.02
Item
Unabsorbed Depreciation%)
Depreciation
Provision for Gratuity
Total
NET DTL/DTA
As on 01.04.2013
Current Year
Asset/(Liability)
Asset /
(Liability)
Previous Year
Asset
Liability
(1,646,893.59)
636,014.81
(1,010,878.78)
(1,010,878.78)
(1,922,169.62)
(275,276.03)
(28,863.72) 607,151.09
(304,139.76) 607,151.09 (1,922,169.62)
(1,315,018.54)
(304,139.76)
Opening Balance
Additions/Reversals
Closing Balance
3,163,600.00
4,891,100.00
8,054,700.00
1,959,984.00
(88,962.00)
1,871,022.00
53
Amount in `
Particulars
Current Year
PCTR
Cushion Gum
409,950.00
220,833.78
51,760,406.70
37,343,695.30
14,892.00
110,377,330.00
135,824,961.60
2,280.00
3,076,333.17
3,028,070.23
212,544.81
150,972,209.31
Vulcunising Solution
CT
Patches
Others
TOTAL
Previous Year
191,299,088.28
Amount in `
Sales Values
Item
Manufactured Goods
PCTR
Cushion Gum
Vulcunising Solution
CT
Others
TOTAL
Traded Goods
PCTR
Cushion Gum
Vulcunising Solution
CT
Repair Patches
TOTAL
Current Year
Closing
Inventory
Previous Year
Opening
Inventory
648,503.25
2,384,382.02
319,634.30
3,352,519.57
24,889,291.13
418,561.26
324,526.98
25,632,379.37
509,616.15
1,907,314.57
287,304.56
2,704,235.28
Amount in `
Current Year
Previous Year
PCTR
11,045,806.57
7,485,254.62
1,473,863.19
582,210.01
440,002.12
100,744.20
1,479,109.55
1,539,536.83
1,237,415.38
15,676,196.81
149,434.62
Cushion Gum
Vulcunising Solution
CT
Others
TOTAL
9,857,180.28
54
Amount in `
Current Year
Previous Year
RMA
111,941,191.59
65,169,038.73
Cisamer
119,198,020.04
110,843,841.61
56,332,551.45
60,882,372.92
103,040,526.48
68,040,353.75
Zinc Oxide
9,838,284.03
6,104,658.38
Process Oil
17,469,733.91
10,662,998.97
Stearic Acid
Others
3,494,168.74
2,560,323.97
66,341,991.76
38,610,554.50
362,874,142.83
ISNR
Carbon Black
TOTAL
**
487,656,468.01
Particulars
Indigenous
Imported
Total
Previous Year
Amount
Amount
485,173,470.01
99.49%
2,482,998.00
0.51%
487,656,468.01
100%
360,341,609.14
100.00%
0.00%
360,341,609.14
Current Year
a) CIF Value of imports made during the year
2,482,998.00
100%
Previous Year
Nil
43,120,661.32
12,442,201.85
145,257.00
89,987.00
Nil
Nil
M.E.MOHAMED
M S RANGANATHAN
BAIJU.T
JOMON K GEORGE
Managing Director
Director
Company Secretary
Partner
55
Amount in `
2013-14
2012-13
24,768,337.02
15,017,902.41
Depreciation
7,909,426.03
5,851,639.98
Interest Received
Provision for Taxation
(304,139.76)
(1,202,469.70)
Interest Paid
6,715,583.00
5,102,372.00
516,331.96
514,172.04
(478.50)
19,273.36
39,605,059.75
25,302,890.09
(77,523,085.12)
5,766,596.72
Inventories
(21,878,490.69)
(2,862,364.64)
42,441,184.96
6,637,955.56
(17,355,331.10)
34,845,077.73
d. Interest Paid
6,715,583.00
5,102,372.00
8,054,700.00
3,163,600.00
(32,125,614.10)
26,579,105.73
g. Extraordinary Items
h. Net Cash from Operating Activities
(32,125,614.10)
26,579,105.73
(42,085,107.84)
(11,940,532.17)
c. Investments
d. Interest Received
8,000.50
174,654.00
(42,077,107.34)
(11,765,878.17)
794,000.00
758,000.00
69,123,385.31
(15,294,485.25)
69,917,385.31
(14,536,485.25)
56
(4,285,336.13)
276,742.31
7,270,657.86
6,993,915.54
2,985,321.73
7,270,657.85
Notes:
1) Comparative figures have been regrouped whereever necessary.
2) The cash flow statement has been prepared under the indirect method as set out in the Accounting Standard-3
on Cash Flow Statements issued by the Institute of Chartered Accountants of India
As per our report of even date attached
For JVR & ASSOCIATES
Chartered Accountants
Cochin 24
17/05/2014
M.E.MOHAMED
M S RANGANATHAN
BAIJU.T
JOMON K GEORGE
Managing Director
Director
Company Secretary
Partner
AUDITOR'S REPORT
The Members of
EASTERN TREADS LIMITED
Kochi
We have examined the attached Cash Flow Statement of EASTERN TREADS LIMITED for the year
ended 31stMarch, 2014. The statement has been prepared by the Company in accordance with the
requirements of Listing Agreements executed with the stock exchanges where the shares of the Company
are listed and is based on and in agreement with the corresponding Profit and Loss Account and Balance
sheet of the Company covered by our report of 17/05/2014 to the members of the Company.
For JVR & ASSOCIATES
Chartered Accountants
(F. R. No. 011121S)
Kochi-16
17/05/2014
JOMON K GEORGE
Partner
M.No.202144
57
BRANCHES
Coimbatore
Opp. Kovai Diabetic Hospital
Balasundaram Layout
Vivekananda Road
Ramnagar,Coimbatore -641009
Ph: 9363108658
Vijayawada
Plot No.54-5-79,
2nd Cross, 5th Road, Auto Nagar,
Vijayawada
Krishna District A.P., - 520007.
Ph: 09160574625
Bangalore
NO: 3/1, Roshan Bagh Road,
Near Minerva Circle
V.V. Puram, Bangalore - 560004
Ph: 9341060794
Baroda
6&7, Jai Narayan Estate,
Opp. Bhagavan Park ,
IPCL Road, Ranoli, Baroda - 391350
Ph: 9376217179
Pune
155 A Pune, Ground Floor, Saswad Road
Near Over Bridge, Phursingi, Pune-412308
Hyderabad
Plot No.36, 37,
Block No. 36/A,
Sy.No.96/1,Autonagar,
Vanasthalipuram,
Hyderabad, A.P., - 500070.
Kolkatta
Plot No. 466
Santhoshpur Govt Colony
B.B.T Road Police Station
Maheshtala P.O, Santhoshpur (M)
Kolkatta-700142
58
I/We hereby record my/our presence at the 21st Annual General Meeting of the Company at Hotel Park Central, Kaloor,
Ernakulam, Kochi-682017, Kerala onTuesday, 24th June 2014, at 3.00 P.M.
Members Folio/
DP ID-Client ID No.
Members/Proxys name
in Block Letters
Members/Proxys
Signature
USER ID
PASSWORD/PIN
Note:
1. Please complete the Folio/DP ID-Client ID No. and name, sign this Attendance Slip and hand it over at the Attendance
Verification Counter at the ENTRANCE OF THE MEETING HALL.
2. Electronic copy of the Annual Report for 2013-14 and Notice of the Annual General Meeting (AGM) along with Attendance
Slip and Proxy Form is being sent to all the members whose email address is registered with the Company/Depository
Participant unless any member has requested for a hard copy of the same. Members receiving electronic copy and attending
the AGM can print copy of this Attendance Slip.
3. Physical copy of the Annual Report for 2013-14 and Notice of the Annual General Meeting (AGM) along with Attendance
Slip and Proxy Form is sent in the permitted mode to all members whose e mail is not registered or have requested for a
hard copy.
Registered address
:...
E-mail Id
:...
:...
I/We, being the member (s) of . shares of the above named company, hereby appoint
1. Name: ......................, Address: ......................
E-mail Id:.................Signature:...........................................
as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 21st Annual General Meeting of the Company,
to be held on Tuesday, 24th June 2014, at 3.00 P.M at Hotel Park Central, Kaloor, Ernakulam, Kochi-682017, Kerala and at any
adjournment thereof in respect of such resolutions as are indicated below:
Resolution
No.
Resolution
Ordinary Business
1.
2.
3.
Optional
For
Against
Special Business
4.
Special resolution under Section 180 (1) (c) of the Companies Act, 2013.
5.
6.
Affix
`1
Revenue
Stamp
Note:
1. This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company,
not less than 48 hours before the commencement of the Meeting.
2. It is optional to put a X in the appropriate column against the resolutions indicated in the box. If you leave the For or
Against column blank against any or all resolutions, your proxy will be entitled to vote in the manner as he/she thinks
appropriate.
3. Please complete all details of member(s) before submission.
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