Sri Vishnu Shankar Mill Limited Unlisted Shares

Annual Report Summary

Sri Vishnu Shankar Mill Limited's 41st Annual Report for 2021-2022 details the company's financial performance, board decisions, and future prospects.

Notice to Members & Ordinary Business:

• The 41st Annual General Meeting was held on August 20, 2022, via video conferencing.
• The agenda included adopting the company's separate and consolidated audited financial statements for the year ended March 31, 2022.
• A dividend of ₹1 per share was declared for the year ended March 31, 2022.
• Shri S. Kanthimathinathan and Shri Arunkumar Goenka, retiring by rotation, were re-appointed as Directors.
• M/s. M.S. Jagannathan & N. Krishnaswami, Chartered Accountants, were re-appointed as Statutory Auditors for a second term of five consecutive financial years, commencing from the financial year 2022-23 and holding office until the conclusion of the 46th Annual General Meeting in 2027.

Special Business:

• Smt. Sharadha Deepa (DIN: 00383799) was reappointed as Managing Director for a period of 5 years with effect from 01-04-2023, at a remuneration equivalent to 5% of the net profits of the Company. If there are no profits or profits are inadequate, she will be paid ₹180 Lakhs per annum along with perquisites.
• The Nomination and Remuneration Committee is authorized to fix the Managing Director's remuneration components, quantum, and periodicity.
• The remuneration of ₹90,000/- plus applicable taxes and expenses, payable to Shri M. Kannan, Cost Accountant, appointed as the Cost Auditor for 2022-23, was ratified.
• The company will provide remote e-voting facility through Central Depository Services (India) Limited (CDSL), with e-voting open from August 17, 2022, to August 19, 2022.

Additional Notices:

• The record date for dividend entitlement was fixed as August 13, 2022.
• As per the Income Tax Act, 1961, dividend income is taxable for shareholders, and the Company will deduct tax at source. Shareholders are asked to update their PAN. Form 15G/15H can be submitted to avail non-deduction of tax.
• Shareholders can address grievances regarding electronic voting to Mr. Rakesh Dalvi of Central Depository Services (India) Limited.

Directors' Report:

• The company's operating profit (EBIDTA) for the year ended March 31, 2022, was ₹5,571.40 Lakhs, compared to ₹2,181.15 Lakhs in 2020-21. Net worth as of 31.03.2022 was ₹64.58 Crores with a total turnover of ₹282.04 Crores for FY21-22.
• Directors recommended a dividend of ₹1 per share.
• A sum of ₹20.00 Crores was transferred to General Reserve, bringing the total to ₹40.00 Crores.
• The company has availed benefits under Section 115BAA of the Income Tax Act, 1961, for reduced income tax rate of 22%.
• The deferred tax (asset) / liability of ₹ 639.84 Lakhs has been provided for the year 2021-22.
• The opening stock of cotton was lower by 37% compared to last year, and the Indian cotton crop for the 2021-22 season was estimated to be lower by 7%. Government of India imposed duty on all varieties of imported cotton during February, 2021 and this made imported cotton dearer by 11% for Indian Spinning Mills. The import duty effective 14th April, 2022 till 30th September, 2022 was withdrawn. The imported cotton consumption increased by 51%.
• Yarn production increased by 39% to 61.25 Lakhs Kgs.
• The sale volume increased by 22% to 60.53 Lakh Kgs, with sales value increasing by 61% to ₹283.65 Crores.
• Cotton yarn exports reached ₹102.93 Crores.
• Wind farms contributed to 51% of the company's power requirement, with income from this division at ₹13.57 Crores.
• Modernization efforts included installation of 12 Rieter G37 Compact Spinning Machines at a cost of ₹40 Crores.
• Retail sales of textile products are witnessing a robust trend, and India is becoming a strong alternative sourcing base to China.
• The company has windmills with an installed capacity of 13.35 MW. 203 Lakhs Kwh were generated as compared to 197 Lakhs Kwh of the previous year.
• Four associate companies are M/s. The Ramco Cements Limited, M/s. Rajapalayam Mills Limited, M/s. The Ramaraju Surgical Cotton Mills Limited and M/s. JKR Enterprise Limited.
• Consolidated net profit after tax amounted to ₹3,344.60 Lakhs for FY21-22.
• An ERP system developed by M/s. Ramco Systems Limited has been installed for online monitoring.
• The company has a Vigil Mechanism/Whistle Blower Policy available on the website.
• Smt. Sharadha Deepa has been reappointed as Managing Director for a further 5 years starting from 01-04-2023.
• Shri S. Kanthimathinathan and Shri Arunkumar Goenka are retiring by rotation and eligible for re-appointment.
• The company has a Corporate Social Responsibility (CSR) Committee and spent ₹13.34 Lakhs on CSR activities during the year.

Auditor's Report:

• M/s. M.S. Jagannathan & N. Krishnaswami, Chartered Accountants, are the statutory auditors.
• The Board had approved the appointment of Shri M. Kannan, Cost Accountant as the Cost Auditor of the Company to audit the Company's Cost Records for the year 2022-23 at a remuneration of ₹ 90,000/-

Additional Details:

• The report also includes annexures detailing matters such as Directors' Responsibility Statement, statements related to Section 102 of the Companies Act, auditor reports, energy conservation, technology absorption, foreign exchange earnings, CSR activities, employee details, and other corporate governance matters.