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Ramaraju Surgical Cotton Mills Limited Unlisted Shares

Annual Report: 2022

Year: 2022

Annual Report Summary

The document is the 82nd Annual Report for 2021-2022 of The Ramaraju Surgical Cotton Mills Limited, focusing on the company’s performance and financial standing.

Corporate Overview:

  • Name: The Ramaraju Surgical Cotton Mills Limited.
  • Brands: Surgicom and Sudarsanam Fabrics.
  • Location: Rajapalayam, Tamil Nadu, India.
  • Businesses: Surgical Division and Textile Division.
  • The company's equity shares are listed with the Metropolitan Stock Exchange of India Limited, Mumbai.
  • The company was founded by Shri N.K. Ramaraju. Shri P.A.C. Ramasamy Raja is the founder's mentor.
  • Shri P.R. Ramasubrahmanya Rajha is the Sridharmarakshakar of the Ramco Group.

Board of Directors & Key Personnel:

  • Chairman: Shri P.R. Venketrama Raja.
  • Managing Directors: Smt. Nalina Ramalakshmi and Shri N.R.K. Ramkumar Raja.
  • Other Directors include Shri S.Sarathy Subburaj, Shri N.K. Shrikantan Raja, Shri P.J. Alaga Raja, Justice Shri P.P.S. Janarthana Raja, Shri V. Santhanaraman, Shri P.J. Ramkumar Rajha, and Shri P.A.S. Alaghar Raja.
  • Chief Financial Officer: Shri N. Vijay Gopal.
  • Company Secretary: Shri Walter Vasanth P J.
  • Secretarial Auditor: Shri M.R.L. Narasimha
  • Cost Auditor: Shri M. Kannan

Ordinary Business & Special Business Resolutions:

  • The Annual General Meeting (AGM) is scheduled for December 12, 2022, via video conferencing.
  • Ordinary resolutions include adopting the company's financial statements, declaring a dividend of ₹1 per share for the year ended March 31, 2022, and re-appointing Shri P.R. Venketrama Raja and Shri N.K. Shrikantan Raja as Directors.
  • Auditors M/s. N.A. Jayaraman & Co., Chartered Accountants, are proposed for re-appointment for a second term of five consecutive years, until the 87th AGM in 2027.
  • Special resolutions include continuing the directorship of Shri N.K. Shrikantan Raja, who is over 75 years of age, and re-appointing Shri N.R.K. Ramkumar Raja as Managing Director for 5 years with effect from 14-02-2022.
  • Approving and ratifying an annual remuneration of ₹1,50,000 plus taxes and expenses to Shri M. Kannan as Cost Auditor.
  • Approval to enter into transactions with Taram Textiles, LLC, a related party, for the sale of textile products up to ₹1250 crores per financial year, starting 2023-2024 for three years.
  • Approval for the Board to borrow up to ₹1,000 Crores.

Shareholder Information & E-Voting:

  • The cut-off date for e-voting eligibility is December 6, 2022.
  • Remote e-voting will be available from December 9-11, 2022.
  • Details on the e-voting process are provided for shareholders holding securities in demat mode (CDSL and NSDL) and those holding shares in physical form.
  • Shareholders are encouraged to register their email addresses with the company.
  • Unclaimed dividends for over 7 years will be transferred to the Investor Education and Protection Fund (IEPF).
  • Shri R. Palaniappan, Chartered Accountant, is appointed as the Scrutinizer for the e-voting process.

Financial Performance & Operations (2021-2022):

  • The company has revised its estimate of useful life in respect of certain items of property, plant and equipment.
  • EBITDA: ₹6,892.70 Lakhs.
  • Profit Before Tax: ₹899.99 Lakhs.
  • Total Revenue: ₹377.97 Crores.
  • Total Exports: ₹87.70 crores.
  • The board recommends a dividend of ₹1.00 per share.
  • The company is investing ₹81.05 Crores in expansion and modernization.
  • Wind farm has generated 132.99 Lakhs Kwh; Wind Mill Division income at ₹8.87 Crores.
  • CRISIL ratings have been upgraded (Long Term Rating: CRISIL A-/ Positive).

Business Segment Performance & Outlook:

  • Textiles: Increase in manufacturing and consumption.
  • Surgical Division: Awarded ISO 13485:2016 certification.
  • The company will continue to monitor manufacturing process parameters and implement various system controls to deliver consistent quality of yarn and fabric to its customers.

Key Financial Ratios (2021-22):

  • Debtors Turnover Ratio: 65 Days
  • Inventory Turnover Ratio: 73 Days
  • Interest Coverage Ratio: 1.44
  • Current Ratio: 1.14
  • Debt - Equity Ratio: 2.63
  • Operating Profit Margins (EBIDTA): 18%
  • Net Profit Margin: 1%
  • Return on Networth: 3%
  • Total Debt / EBITDA: 4.21
  • Return on Capital Employed: 6%

Other Key Points:

  • The company has 1,750 employees.
  • A CSR spend of ₹17.92 Lakhs.
  • The reports of the Statutory Auditors and Secretarial Auditors are unqualified.
  • The annual return is available on the company’s website.
  • The company’s Material Subsidiary Policy, and Risk Management Policy can also be found on its website.

Subsidiary and Associate Disclosures:

  • Madras Chipboard Limited is a subsidiary (75.01% holding).
  • The company has several associate companies, including The Ramco Cements Limited, Ramco Industries Limited, and Sri Harini Textiles Limited. Key financial details for these entities are provided.

Directors' Responsibility Statement:

  • The directors affirm that the applicable accounting standards have been followed, proper accounting records have been maintained, and internal financial controls are adequate.

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