Annual Report Summary
The Annual Report 2020-2021 of Parry Agro Industries Limited highlights the company's operations as a leading tea producer in India, with estates in major tea-growing regions including Sheikalmudi, Murugalli, Paralai, Iyerpadi, Attikunna, Carolyn, Deckiajuli, and Rajajuli. The company employs over 10,000 people across its estates, focusing on sustainability and environmental consciousness. Their estates and factories are certified under various standards to ensure safe products. They also maintain a dedicated R&D facility with NABL accreditation and DSIR recognition for chemical/microbial testing.
Key Highlights of Financial Performance:
- Revenue: The company's total income was ₹23,570.62 lacs for the year ended March 31, 2021. Revenue from tea operations reached ₹23,289.17 lacs, compared to ₹17,378.19 lacs in the previous year.
- Profitability: Profit after tax stood at ₹1391.48 lacs for FY 20-21, a turnaround from the previous year's loss of ₹203.73 lacs.
- Dividend: The Directors recommended a dividend of ₹11 per equity share (110% of ₹10 each).
Board of Directors:
- The board includes Mr. M.M. Venkatachalam (Non-Executive Chairman), Mr. Ramesh Rajah, Mr. Ramesh K B Menon, Mr. T. Jayaraman, Mr. A. Sridhar, and Mr. Sridharan Rangarajan. Mr. M.M. Venkatachalam retires by rotation and is eligible for re-appointment. Mr. Sridharan Rangarajan was appointed as an additional director effective January 22, 2021.
Annual General Meeting (AGM):
- The Eleventh Annual General Meeting (AGM) will be held via Video Conferencing (VC) on Friday, July 23, 2021, at 12:00 Noon I.S.T.
- The notice includes resolutions for adopting standalone and consolidated financial statements, declaring dividends, re-appointing Mr. M M Venkatachalam as Director, appointing Mr. Sridharan Rangarajan as Director, and ratifying the remuneration of the Cost Auditor.
Operational Performance & Market Conditions:
- National tea production decreased by 10% in 2020, with North India experiencing a 12% decrease. However, South India's tea production increased by 1%.
- The decrease in production pushed up domestic tea prices. South Indian auction sale averages increased from ₹99.74/kg to ₹141.73/kg, and North Indian averages also showed significant growth from ₹154.21/kg to ₹216.27/kg.
Key Disclosures:
- Audit Committee: The Audit Committee includes Mr. Ramesh Rajah (Chairman), Mr. Ramesh K B Menon, and Mr. T. Jayaraman.
- Nomination and Remuneration Committee: This committee comprises Mr. T. Jayaraman (Chairman), Mr. Ramesh Rajah, Mr. M M Venkatachalam, and Mr. Ramesh K B Menon.
- Stakeholders Relationship Committee: Chaired by Mr. M M Venkatachalam, with Mr. Ramesh Rajah and Mr. Ramesh KB Menon as members.
Corporate Social Responsibility (CSR):
- The company follows its CSR policy to impact disadvantaged lives by supporting activities improving their wellbeing. Education and healthcare remain priorities. Given that the amount to be spent under the CSR policy does not exceed fifty lacs, the constitution of a CSR committee is not applicable. The responsibilities are discharged by the Board. The total CSR expenditure during the year was ₹6.26 lacs.
Other Key Points:
- The company has a Risk Management policy.
- Details on internal financial controls are discussed.
- Directors' responsibility statement is provided.
- Related party transactions are disclosed, stating that all transactions were at arm's length.
- Deloitte Haskins & Sells, Chartered Accountants, are the statutory auditors.
- The company has a policy in place regarding the prevention of sexual harassment at the workplace.
- Details on energy conservation, technology absorption, and foreign exchange earnings/outgo are provided.
Accreditations & Recognitions:
Several factories including Mayura, Iyerpadi, Paralai, Attikunna & Carolyn are ISO certified. Department of Scientific and Industrial Research (DSIR), Ministry of Science and Technology, New Delhi, has re-affirmed the recognition to the in-house Research and Development unit of your company up to 31.03.2021.
