Annual Report: 2021
Sri Vishnu Shankar Mill Limited's 40th Annual Report for 2020-2021 covers the notice to members, director's report, auditor's report, and financial statements. The Annual General Meeting was held on August 25, 2021, via video conferencing. The ordinary business included adopting the separate and consolidated financial statements for the year ending March 31, 2021, and re-appointing Shri S.S. Ramachandra Raja and Smt. R Chittammal as directors. A special resolution was passed to approve borrowing powers up to ₹400 Crores, subject to approval from Financial Institutions/Banks. Shri M. Kannan was ratified as Cost Auditor for the financial year 2021-22, with a remuneration of ₹80,000 plus taxes and expenses.
The company provided instructions for attending the AGM through video conferencing and e-voting. Despatching of physical copies of the financial statements has been dispensed with, and statements are sent via email. Members can claim unclaimed dividends transferred to the Investor Education and Protection Fund (IEPF) by applying online at www.iepf.gov.in. The facility for remote e-voting was open from August 22, 2021, to August 24, 2021.
The director's report noted that the company's operating profit (EBITDA) was ₹3,614.84 Lakhs compared to ₹3,948.48 Lakhs in the previous year. The Board did not recommend a dividend. The company withdrew deferred tax of ₹62.28 Lakhs for the year 2020-21. A historically high cotton stock of 120 Lakhs Bales was seen in India due to COVID-19 disruptions. Cotton prices increased by over 30% during the cotton season. Yarn production decreased to 44.25 Lakhs Kgs due to lockdowns, while yarn sales volume increased by 3% to 49.79 Lakhs Kgs, and the sale value increased to ₹176.36 Crores. The company liquidated yarn stock from ₹30.34 Crores on April 1, 2020, to ₹8.15 Crores on March 31, 2021. Export value of cotton yarn was ₹42.44 Crores, and the company consumed 69% of its power from its own wind farms. Finance costs decreased to ₹1,539.29 Lakhs due to reduced borrowing costs. Dividend income was ₹93.13 lakhs. The company replaced old machines with fully automatic OE Machines at a cost of ₹12 Crores. They also plan to increase spindles capacity by adding 80238 spindles and 1008 rotors at a project cost of approximately ₹40 Crores with delivery expected in August 2021.
For the current year, the Cotton Association of India's estimates suggest availability of 496 Lakhs Bales. World cotton production is expected to rise by 4.70%. Global cotton consumption is expected to grow by 4.10%. The company is focusing on value-added customized yarn counts. The spreading of Covid-19 in India and other Countries during its second wave is posing continuous challenges. Windfarms generated 197 Lakhs Kwh. There are four associate companies: The Ramco Cements Limited, Rajapalayam Mills Limited, The Ramaraju Surgical Cotton Mills Limited and JKR Enterprise Limited. Consolidated net profit after tax amounted to ₹1,810.46 Lakhs. The Consolidated Total Comprehensive Income for the year is ₹1,905.31 Lakhs. The company maintains internal financial controls and has a Vigil Mechanism and Whistle Blower Policy. Shri S.S Ramachandra Raja and Smt. R. Chittammal retire by rotation. The directors confirmed compliance with applicable accounting standards. The company has a CSR Committee and spent ₹5.10 Lakhs on CSR activities. M/s. M.S. Jagannathan & N.Krishnaswami are the Statutory Auditors. Shri M.R.L. Narasimha is the Secretarial Auditor. Shri M. Kannan is the Cost Accountant. The information relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo is attached as Annexure. The Company had 1,054 employees as of March 31, 2021. They have a Risk Management Policy.
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