2012-13 2011-12Profit before Depreciation & Taxes 5213 3231
Less: Depreciation 1214 945
Profit before Tax 3999 2286
Less: Provision for Taxation 1037 542
Profit after Tax 2962 1744
DIVIDEND
Your Directors have decided not to recommend any dividend for the year ended 31stMarch, 2013 and to retain the entire profits.
REVIEW OF OPERATIONS
Plantation division
During the year the Plantation division manufactured 216 lakh kgs of tea as against 233 lakh kgs in the previous year. The average Price realization was Rs.162 as against Rs.133 in the previous year. The turnover of the division during the year is Rs.36507 Lakhs against a turnover of Rs. 30547 Lakhs in the previous year.
The company with a focus on quality enhancement of end produce carried out major upgradation and replacement of old machineries in all the factories. 1 Rotorvanes, 3 CTC machines, 3 CFM, 2 monorails, 1 Myddleton, and 4 Milling and chasing machines were installed in various factories. There was a special focus on upgrading the ambulances and school buses this year with the replacement of 9 ambulances and addition of one school bus in Empire and Singlo division. The Hokonguri Factory roof was modified and the entire structure of drying and sorting room modified to ensure quick drainage of rainwater and prevention of water seepage. The company also invested in 1 new Genset to improve the efficiency of own power generation. The Company augmented its irrigation capacity in the drought prone estates and presently covers an area of 2110 hectares as compared to 2030 hectares in the previous year.
The Production of orthodox Tea was restricted in the 1st half of 2012 owing to uncertainties in payment mechanism with Iran and also in view of CTC market being extremely buoyant. Inconsistent crop owing to weather, affected quality during the August to September period and the Group managed to produce 18 lac kgs of orthodox tea during the year against 23 lac kgs in the previous year.
Your Company’s focus has always been to produce quality teas, which commanded a premium both in the domestic and international market. Feedback received from the buyers in terms of quality was satisfactory. The Uprooting and Replanting Policy of your Company continues as a practice.
Tea bags and Specialty Tea division
The Packet Tea business continued to maintain the volume growth that it had recorded in last couple of years. The division achieved a Turnover of Rs.1266 Lakhs as against Rs. 841 Lakhs in the previous year.
The branded business of Tea Bag & Specialty Tea under brand Typhoo has shown good healthy growth in sales in Financial Year 2012-13. There were launches of 3 new variants - Loose Green, Green Jasmine and Green lemongrass to expand the product portfolio. Market acceptance of Typhoo products has increased and continues to gain. The products are available across all Metro markets at Premium Food & Beverage stores. We believe the Typhoo business has good long term potential and ability to become a leading brand in India.
DIRECTORS
In accordance with Articles of Association of the Company read with Section 256 of the Companies Act, 1956, Mr. Golam Momen retire by rotation at the forthcoming Annual General Meeting and being eligible, offer himself for re-election.
PARTICULARS OF EMPLOYEES
Information as required under Section 217(2A) of the Companies Act 1956, read with the Companies (Particulars of Employees) Rules 1975, is given in the annexure forming part of this report.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the provisions of Section 217(2AA) of the Companies Act 1956, your directors hereby confirm that:
a) In the preparation of the Annual Accounts for the year ended 31stMarch 2013, the applicable accounting standards as stated in the Auditors’ Report have been followed and there have been no material departures in the preparation of the Annual Accounts;
b) Accounting policies as stated in sub-section 3(c) of Section 211 of the Companies Act 1956 were applied consistently and reasonable and prudent judgments and estimates were made so as to give a true and fair view of the state of affairs of your Company as at the end of 31stMarch 2013 and of the Profit of the Company for the year under report;
c) Proper and sufficient care have been taken for the maintenance of adequate accounting records for safeguarding the assets of the corporation and for preventing and detecting fraud and other irregularities and the same has been dealt with in the Auditor’s Report;
d) The Annual Accounts of the Company have been prepared on a going concern basis.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
Particulars of conservation of Energy, Technology absorption and Foreign exchange earnings and outgo in terms of Section 217(1)(e) of the Companies Act 1956 (as amended) read with the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 is provided as an annexure to the report.
COST AUDIT
The Ministry of Corporate Affairs, Government of India by an order directed audit of the cost accounts maintained by the Company under section 209(1) (d) of the Companies Act, 1956 in respect of plantation product on a yearly basis. In terms of the said order, the Company has appointed Mr. Kishore Majumdar a member of the Institute of The Cost and Work Accountants of India as a Cost Auditor for the year 2012-13.
AUDITORS
M/s. Price Waterhouse, Chartered Accountants, Auditors of the Company, retire at the conclusion of the forthcoming Annual General Meeting and, being eligible, offer themselves for re-appointment.
CORPORATE SOCIAL RESPONSIBILITY
The philosophy of your Company towards fair governance going hand in hand with social responsibilities is deeply embedded in its day-to-day working. The Company has, over the years, successfully combined its efforts at improving the social and economic environment with sustainable use of natural resources with long-term business goals in a mutually supportive manner.
Your Company is happy to inform you that in 2012-2013, it was able to include 15 of its 17 tea gardens under an international certification programme. Currently 9 gardens are Rainforest certified, 15 gardens are covered under Ethical Tea Partnerships and 2 gardens are Fairtrade certified. We were able to include all the gardens that have factories to manufacture tea under International Certification. This is a measure of our confidence in being able to translate our vision of Sustainability into programmes that are part of the management system of Apeejay Tea.
Fully aware of the responsibility towards its own employees, their dependants and the local community within which the tea estates are situated and to the people of Assam in general, Your company has worked to implement the Universal Right to Education through a campaign and enrolment drive of all children in schools on your gardens. It has set up Child Protection Committees in all 17 gardens to ensure that all children can enjoy their Rights as children. It has adopted a policy on Sexual Harassment to prevent violations of women in the workplace. It has celebrated in all 17 gardens International Women’s Day as a mark of its respect for the dignity of women and recognition of their contribution to making your company profitable. Your Company has worked with the government in strengthen the public-private partnership in order to improve and build awareness and improve the quality of delivery of important national programmes to the communities resident in the tea garden, including the National Rural Health Mission and the National Rural Livelihood Mission. Your company has helped to establish a demand for vocational training among the youth population of the garden by revitalizing and encouraging enrolment in Vocational Training Centres as part of the National Skill Development agenda. Your company is working to improve the health profile of women and children in the tea gardens by addressing the issue of nutrition and growth. Tea is labour intensive and our driving objective has been to improve living and working conditions of our large workforce and their dependents in a phased manner. It has continued with its mandated activities in the sphere of education, child care, health–care, welfare, building of social infrastructure and environment sustainability.
Through the extensive planting of indigenous trees that contributes to a renewable source of fuel wood to its workforce and celebrating the bio diversity preserved in the plots cultivating indigenous rice inside the gardens, your company has added to the national goal of preservation of bio-diversity. It has also initiated efforts to capture rain water to regenerate the aquifers and use the stored water for a variety of purposes thus reducing the amount of water extracted from underground and so reducing carbon consumption and emission. To reduce environmental stress, it has in place a strategy to make the community a stake holder in responsible waste management. The commitment to inclusion of the community has been promoted by campaigning to raise awareness, in partnership with government.
ACKNOWLEDGEMENTS
Your Directors wish to place on record their grateful appreciation for the excellent support and co-operation received from, Banks, Financial Institutions, Government of Assam and various Central and State Government Authorities. Your directors also wish to place on record their deep appreciation of the dedication and contributions made by employees at all levels and look forward to their continued and unstinted support in the future as well. The policy of transparency and recognition inspired the employees to contribute their best efforts in the Company.
For and on behalf of the Board of Directors
Place: Kolkata A. K. Bhargava Ashoke Ghosh
Date: 27thSeptember, 2013 Managing Director Director
Annexure I to the Directors’ Report
Information pursuant to Section 217 (1) (e) of the Companies Act, 1956 and forming part of the Directors Report for the year ended March 31, 2012
1. Energy conservation measures undertaken | Installation of Duel Burners for the Driers and other Machineries to optimise fuel efficiency |
|
2. Additional Investments and proposals, if any, being implemented for reduction of energy consumption | More machines are proposed to be installed for conservation of energy. Proposals for alternative energy resources are being examined |
|
3. Impact of measures at (1) and (2) above for reduction of energy consumption and consequent impact on the cost | Efficient energy utilisation resulted in improvement in quality and cost control |
| FORM A | | |
| Year ended | Year ended |
| A. Power and Fuel Consumption | 31.03.2013 | 31.03.2012 |
| i) Electricity | | |
| a) Purchased | | |
| Units | 13913210 | 16988464 |
| Total Amount (Rs.) | 107572343 | 119099519 |
| Rate / Unit (Rs.) | 7.73 | 7.01 |
| | |
| b) Own Generation | | |
| 4958115 | 9638064 |
| Through Diesel Generator Units | 5329368 | - |
| Through Gas Gen-Set Units | | |
| 3.15 | 3.07 |
| Units/ Ltrs. Of Diesel Oil | | |
| Cost/ Unit (Rs.) | 15.44 | 12.3 |
| ii) Coal | | |
| Quantity (Tonnes) | 6535 | 4925 |
| Total Cost (Rs.) | 4939412 | 36860084 |
| Average Rate (Rs.) (per M.T.) | 7547 | 7485 |
| iii) Furnace Oil | | |
| Quantity (ltrs.) | 14655 | 77035 |
| Total Cost (Rs.) | 728461 | 3410719 |
| Average Rate (Rs.) | 49.71 | 44.27 |
| iv) Gas | | |
| Quantity (Scum) | 12398625 | 12504059 |
| Total Amount (Rs) | 102202445 | 91543851 |
| Average Rate (Rs) | 8.24 | 7.32 |
B. Consumption per unit of Production : | | | |
| | Product - Tea (kgs.) (Drier Mouth) | | 22270721 | 23980842 |
| | Electricity (Unit) | | 1.09 | 1.11 |
| | Furnace Oil (Ltrs) | | 0.02 | 0.02 |
| | Coal (kgs.) H.P. & R.O.M. | | 1.21 | 0.90 |
| | Gas(Scum) | | 0.73 | 0.62 | |
II.Form for disclosure of particulars with respect to absorption:
Form B
Research and Development (R&D):
Specific areas in which R&D carried out by the Company:
Installation of modern machineries is an ongoing process for better control in manufacturing processes in the factories. Research and Development is carried on in field practices.
Benefits as a result of above R&D:
Quality of green leaf and the finished product has improved due to the implementation of the R&D measures.
Future plan of action:
Phased implementation at all production centres.
Expenditure on Research and Development:
The expenses on R&D are not separately identified and remain included under the respective heads of Accounts.
Technology, Absorption, Adaptation and Innovation:
Efforts, in brief, made towards technology absorption, adaptation and innovation:
We are continuing to replace the existing machinery with modern machines for better output and better control over production procedures. Intensive measures for improvement in cultivation practices have been taken up.
Benefits derived as a result of above efforts, e.g. product improvement, cost reduction, product development, import substitution etc.
There has been the overall improvement in the quality of the product.
3. In case of imported technology (imported during the last 5 years reckoned from the beginning of the Financial Year), following information may be furnished: Not Applicable
lll. Foreign Exchange Earnings and Outgo:
Earnings and Outgo of Foreign Exchange as detailed separately is given hereunder:
2012-2013 2011-2012
Rs. in Lakhs Rs. in Lakhs
Foreign Exchange Earnings : 9258 6631
Foreign Exchange Outgo : 355 82
Net Earnings/(Outgo) : 8903 6549
For and on behalf of the Board of Directors
Place: Kolkata A. K. Bhargava Ashoke Ghosh
Date: 27thSeptember, 2013 Managing Director Director
Annexure II to the Directors Report
Statement pursuant to Section 217(2A) of the Companies Act, 1956, read with Companies (Particulars of Employees) Rules 1975:
Name | Age | Designation/ Nature of Duties | Remuneration (Rs. In Lakhs) | Qualification | Experience (Years) | Date of Commencement of Employment | Last Employment, Designation |
Mr. A K Bhargava | 57 | Managing Director | 62.76 | M A | 37 | 16.11.1977 | -- |
Notes: The above remuneration includes salary, allowances, contribution to Provident Fund, Superannuation, Gratuity Funds, perquisites and incentive.
Disclosures in director’s responsibility statementPursuant to the provisions of Section 217(2AA) of the Companies Act 1956, your directors hereby confirm that:
a) In the preparation of the Annual Accounts for the year ended 31stMarch 2013, the applicable accounting standards as stated in the Auditors’ Report have been followed and there have been no material departures in the preparation of the Annual Accounts;
b) Accounting policies as stated in sub-section 3(c) of Section 211 of the Companies Act 1956 were applied consistently and reasonable and prudent judgments and estimates were made so as to give a true and fair view of the state of affairs of your Company as at the end of 31stMarch 2013 and of the Profit of the Company for the year under report;
c) Proper and sufficient care have been taken for the maintenance of adequate accounting records for safeguarding the assets of the corporation and for preventing and detecting fraud and other irregularities and the same has been dealt with in the Auditor’s Report;
d) The Annual Accounts of the Company have been prepared on a going concern basis.
Disclosures relating to dividendsYour Directors have decided not to recommend any dividend for the year ended 31st March, 2013 and to retain the entire profits.
Particulars of employees as per provisions of section 217Statement pursuant to Section 217(2A) of the Companies Act, 1956, read with Companies (Particulars of Employees) Rules 1975:
Name | Age | Designation/ Nature of Duties | Remuneration (Rs. In Lakhs) | Qualification | Experience (Years) | Date of Commencement of Employment | Last Employment, Designation |
Mr. A K Bhargava | 57 | Managing Director | 62.76 | M A | 37 | 16.11.1977 | -- |
Notes: The above remuneration includes salary, allowances, contribution to Provident Fund, Superannuation, Gratuity Funds, perquisites and incentive.