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Annual Report 2011 - 12

THE KAILAS RUBBER COMPANY LIMITED

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ANNUAL REPORT 2011-12

Auditor
T.K. Kuruvilla, Kottayam

Board of Directors
G.J. Ancheril
Mary Alex

- Whole-time Director
- Whole - time Director

Solicitor
Joseph & Markos, Kottayam

Alex George
Company Secretary
Thomas P. Chacko, Cochin

A.V. George
Cdr Mani Thomas

Bank
Syndicate Bank

Thommen T. Kuruvilla

Registered Office
Ancheril Bank Buildings
Post Box No. 1
Kottayam-686 001.
Kerala

Contents

Directors' report

2-3

Secretarial Compliance Certificate

4-5

Auditor's report

6-9

Balance Sheet as at March 31, 2012

10

Profit and Loss Account for the year ended March 31, 2012

11

Cash Flow Statement for the year ended March 31, 2012

12

Notes to the financial statements

13-26

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THE KAILAS RUBBER COMPANY LIMITED

DIRECTORS' REPORT

To the members of The Kailas Rubber Company Limited

The Directors have pleasure in presenting the Annual Report and the audited accounts of The Kailas Rubber Company
Limited for the year ended March 31,2012.
Performance
The total rubber production increased by 28% during the current year from 2.5 lakhs kgs to 3.36 lakhs kgs . This was
possible as there was no break in rubber tapping on account of labour strikes etc . The turnover increased from Rs 5.46
crores to 8.82 crores during 2011-12 , an increase of 61% . The average sales realization during the current year was Rs
193 .68 per kg compared to Rs 183.47 per kg in the previous year . The Income from slaughter tapping also increased
from 63 lakhs in the previous year to Rs 85 lakhs during the current year .The profit before tax doubled during the period
under review from 2.92 crores to 5.96 crores
The summarised results of the Company are given below:

Total Revenue
Profit before taxation
Provision for taxation
Profit after taxation
Profit and loss account balance as at April 1, 2011
Amount available for appropriations
Appropriation
Transfer to General Reserve
Proposed equity dividend
Corporate income tax on equity dividend ( Short Provision )
Corporate income tax on equity dividend ( Excess Provision )
Corporate income tax on proposed equity dividend
PROFIT AND LOSS ACCOUNT
BALANCE AT MARCH 31, 2012

2011 - 1 2
Rs.

2010-11
Rs.

8,83,76,000

5.47.72.600

5,96,41,700
(29,05,000)
5,67,36,700
11.36.84.200
17,04,20,900

2,92,95,600
(1,00,000)
2,91,95,600
9.18.64.100
12,10,59,700

(56,80,000)

(23,60,000)
(39,17,100)
(4,32,700)

30,300
16.47.71,200

(6,65,700)
11,36.84,200

Future prospects
The Company expects the rubber price to remain steady during the year .The Company replanted 15.09 hectares in
Kutikul estate during the year under review and is planning to replant 30.09 hectares in Kutikul estate and 6 hectares
in Paalali estate during the coming year
Dividend
The Directors recommend a dividend of Rs 20 per share. The dividend , together with the corporate income tax on
distributed profit will absorb a sum of Rs 45,52,600/-.It is also recommended to transfer 10% of the profit after tax
amounting to Rs 56,80,000/- to General Reserve

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THE KAILAS RUBBER COMPANY LIMITED

Directors' responsibility statement

In compliance of Section 217 (2AA) of the Companies Act, 1956 as amended by the Companies (Amendment) Act,
2000, the Directors of the Company confirm:
that the applicable accounting standards have been followed in the preparation of final accounts and that there are
no material departures;
that such accounting policies have been selected and applied consistently and such judgements and estimates made
are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2012
and of the profit of the Company for the year ended on that date;
that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance
with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
that the annual accounts have been prepared on a going concern basis.
Secretarial Compliance Certificate
In accordance with Section 383A of the Companies Act 1956 as amended by The Companies (Amendment) Act 2000,
a copy of the Secretarial Compliance Certificate is attached to this report.
Directors
Mr AV George & Cdr Mani Thomas , retire by rotation at this annual general meeting and being eligible offers himself
for reappointment
Auditor
The auditor of the Company, Mr. T.K. Kuruvilla, retires at this Annual General Meeting and is eligible for reappointment.
Information under Sections 217(l)(e)and 217(2A)
Disclosure of the particulars of conservation of energy, technology absorption and foreign exchange earnings and
outgoings in terms of section 217(i)(e) is not applicable as the Company is engaged in plantation activities which are
not energy intensive and hence no energy conservation measures were undertaken. Considering the nature of activities
no comment is made on technology absorption and there have been no foreign exchange transactions during the year.
The Company has no employee in respect of whom information under section 217(2A) of the Companies Act, 1956 is
required to be given in the Directors' Report.
On behalf of the Board of Directors

G.J. ANCHERIL - Whole-time Director

Kottayam, July 20, 2012
MARY ALEX -Whole-time Director

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THE KAILAS RUBBER COMPANY LIMITED

Tbomaj P. Chacko
Company Secretary in Practice

Poomthara'
Yacht Club Enclave , Cochin - 6 8 2 013
Tel: 9446571369
Email Doonilhara/a'Email.coni

COMPLIANCE CERTIFICATE
Registration No. of the Company : 09/554
Nominal Capital : Rs.50,00,000/To, The Members
The Kailas Rubber Company Limited
I have examined the registers, records, books and papers of The Kailas Rubber Company Limited as required to be maintained under the Companies Act, 1956 and the rules
made thereunder and also the provisions contained in the Memorandum and Articles of Association of the Company for the financial year ended on 31 rt March 2012. In my
opinion and to the best of my information and according to the examinations carried out by me and explanations furnished to me by die company, its officers and agents, I
certify that in respect of the aforesaid financial year:
1.

The Company has kept and maintained all registers as stated in

Annexure 'A' to this certificate, as per the provisions and the rules made
there under and all entries therein have been duly recorded.

2.

The Company has duly filed the forms and returns as stated in Annexure
'B' to this certificate, with the Registrar of Companies within the time
prescribed under the Act and the rules made there under.

3.

The Company, being a Public Limited Company, tiie provisions of

Section 3 (i)(iii) are not applicable.

The Board of Directors duly met six (6) times respectively on

30.04.2011, 30.07.2011, 13.08.2011, 31.10.2011, 28.12.2011 and
14.01.2012 in respect of which meetings proper notices were given and
the proceedings were properly recorded and signed including the circular
resolutions passed in the Minutes Book maintained for the purpose.
5.
The Company closed its Register of Members from 16.09.2011 to
30.09.2011 and has complied with the provisions of section 154 of the
Act has been made.
6.
The Annual General Meeting tor the financial year ended on 31"
March, 2011 was held on 30.09.2011 after giving due notice to the
members of the company and the resolutions passed there at were duly
recorded in Minutes Book maintained for the purpose.
7.
No Extra-ordinary General Meeting was held during the financial year.
8.
The Company has not advanced any loans to its directors or persons or
firms or companies referred to under section 295 of the Act.
9.
The Company has duly complied with the provisions of section 297 of
the Act in respect of contracts specified in that section.
10. The Company has made necessary entries in the register maintained
under section 301 of the Act.
11. As there were no instances falling within the purview of section 314 of
the Act, the company has not obtained any approvals from the Board of
directors, members or Central Government.
12. The Company has issued one duplicate share certificate during the
financial year.
13.
The Company:
(i)
has delivered all die certificates on lodgement thereof for
transfer/transmission or any other purpose in accordance with
the provisions of the Act;
(ii)
has deposited the amount of dividend declared in a separate
Bank Account on 4"1 October, 2011 which is within five days
from the date of declaration of the dividend.
(iii)
has paid/posted warrants for dividends to all members within a
period of thirty days from die date of declaration of dividend
and all unclaimed/unpaid dividends have been transferred to
the unpaid divdend of the company with Syndicate Bank,
Kottayam.
(iv)
has transferred on 04.11.2011 Rs.52875 to the Investor
Education and Protection Fund being the amount lying in the
unpaid dividend account, application money due for refund,
matured deposits, matured debentures and the interest accrued
thereon for the year 2003-04. There is nothing other than this
which has remained unclaimed or unpaid for a period of seven
years.
(v)
has duly complied with the requirements of Section 217 of the
Act.
14. The Board of Directors of the Company is duly constituted. Apart from
the appointment on 3O'h April 2011 of Mr. Alex George as Director in a
casual vacancy, and on 1.05.2011 of Mrs Mary Alex as a whole-time
director, there were no other appointments of additional directors, alternate
directors' and directors to fill casual vacancies during the financial year
15. The appointment of Managing Director/ Whole-time Director
have been made in
compliance with the provisions of section
269 read with Schedule XIII to the Act.

16. The Company has not appointed any sole selling agents
during the financial year.
17. The Company was not required to obtain any approval of Central
Government, Company Law Board, Regional Director, Registrar
and/or such authorities prescribed under the various provisions of
the Act during the financial year.
18.

4.

The directors have disclosed their interest in other

firms/companies to the Board of Directors pursuant to the
provisions of the Act and the rules made there under.

19. The Company has not issued any shares, debentures or other
securities during the financial year.
20. The Company has not bought back any shares during the financial
year.
21. There was no redemption of preference shares or debentures during
the financial year.
22. There were no transactions necessitating Uie company to keep in
abeyance the rights lo dividend, rights shares and bonus shares
pending registration of transfer of shares.
23. The Company has not invited/accepted any public deposits
including any unsecured loans falling within the purview of section
58A during the financial year.
24. The amount borrowed by the Company from directors, financial
institutions, banks and others during the financial year ended 31"
March, 2012 is within the borrowing limits of the company.
25. The Company has not made loans or given guarantees or provided
securities to other bodies corporate. The investments made are in
compliance with the provisions of the Act and the company has
made necessary entries in the register kept for the purpose.
26. The Company has not altered the provisions of the Memorandum
with respect to the location of die company's registered office from
one State to another during the financial year under scrutiny.
27. The Company has not altered the provisions of the Memorandum
with respect to the objects of the company during the year under
scrutiny.
28. The Company has not altered the provisions of the Memorandum
with respect to name of the company during the year under scrutiny.
29. The Company has not altered the provisions of the Memorandum
with respect to share capital of the company during the year under
scrutiny.
30. The Company has not altered its Articles of Association during the
financial year.
31. There was no prosecution initiated against or show cause notices
received by the company and no fines or penalties or any other
punishment was imposed on the company during the financial year,
for offences under the Act.
32 .The Company has not received any money as security from
its employees during the financial year.
33. The Company has deposited both employees' and employer's
contribution to Provident Fund with prescribed audiorities
pursuant to section 418 of die Act.
Place:Cochin-682013
Date: 19.04.2012

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Thomas P Chacko
Company Secretary in Practice
C.P.No.4251 FCS4066

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THE KAILAS RUBBER COMPANY LIMITED

-Annexure A
Registers as maintained by the Company
Statutory Registers
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

Register of Charges u/s. 143/Copies of instruments creating charge u/s. 136.

Register of Members u/s. 150 and Index of Members u/s. 151.
Registers and Returns u/s. 163
Minutes Book of Meetings - Board /Shareholders
Books of Accounts
Register of Contracts, Companies and firms in which Directors are interested u/s. 301
Register of Directors, Managing Director, Manager and Secretary u/s. 303.
Register of Directors' shareholdings u/s 307
Register of Investments or Loans made. Guarantee given or security provided u/s 372A.
Register of Renewed and Duplicate Certificates under Rule 7 of the Companies (Issue of Share Certificates) Rules, 1960.

Annexure B
forms and Returns as filed by the Company with the Registrar of Companies, during the financial year ended on 31" March, 2012.

SI
No.

Form No/
Return

Filed under
Section

For

Date of filing

Form 32

303(2)

Form 32

303(2)

Form 25C

269(2)

Form 23

192

5.

220

6.

Form 23 ACXBRL & Form

23ACA- XBRL
Form 66

Demise of Mr. Alex

George and Mr. Alex
George as Director
appointed in casual
vacancy.
Appointment of
Director Mrs. Mary
Alex
Appointment and
payment of
remuneration to
Whole-time Director
Mrs. Mary Alex
Appointment of
Whole time Director
and payment of
remuneration to
Mrs.Mary Alex
Annual Report
2010-11

7.

Form 23

192 &
37O(l)(a)

8.

Form 20 B

159

Compliance
Certificate
2010-11
Appointment of
Whole time Director
and payment of
remuneration of Mrs.
Mary Alex and grant
of loan to Companies
Annual Return
2010-11

383A

26.05.2011

Whether filed
within
prescribed
time -Yes/No
Yes

If delay in filing
whether requisite
additional fee
paid- Yes/No
No

26.05.2011

Yes

No

26.05.2011

Yes

No

26.05.2011

Yes

No

23.12.2011

Yes

No

02.11.2011

No

Yes

28.10.2011

Yes

No

28.11.2011

Yes

No

Thomas P Chacko
Company Secretary in Practice
CP.No.42Sl FCS 4066

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THE KAILAS RUBBER COMPANY LIMITED

AUDITOR'S REPORT

To the members of The Kailas Rubber Company Limited

I have audited the annexed Balance Sheet of The Kailas Rubber Company Limited as at Match 31, 2012, the Profit and
Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements
are the responsibility of the Company's management. My responsibility is to express an opinion on these financial
statements based on my audit. I conducted my audit in accordance with auditing standards generally accepted in India.
Those Standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe
that my audit provides a reasonable basis for my opinion.
1. As required by the Companies ( Auditor's Report) Order 2003 issued by the Central Government of India in terms
of sub-section (4 A) of section 227 of the Companies Act, 1956, I enclose in the Annexure hereto a statement on the
matters specified in paragraph 4 and 5 of the said order.
2. Further to my comments in the Annexure referred to in paragraph 1 above, I report that:
a.
b.
c.
d.
e.

f.

I have obtained all the information and explanations which to the best of my knowledge and belief were
necessary for the purposes of my audit.
In my opinion, proper books of account as required by law have been kept by the Company so far as it appears
from my examination of those books of account.
The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement
with the books of account.
In my opinion the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report
comply with the mandatory. Accounting Standards referred in Section 211 (3C) of the Companies Act, 1956.
In my opinion and based on information and explanations given to me, none of the directors are disqualified as
on March 31, 2012 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of
the Companies Act, 1956.
In my opinion and to the best of my information and according to the explanations given to me, the said
accounts read together with the Significant Accounting Policies and other notes thereon give the information
required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India:.
i. in the case of the Balance Sheet, of the state of the Company's affairs as at March 31, 2012;
ii. in the case of the Profit and Loss Account, of the profit for the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

T.K. KURUVILLA
Chartered Accountant
Membership No.020174

Kottayam, July 20,2012

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THE KAILAS RUBBER COMPANY LIMITED

Annexure to Auditor's Report

Referred to Paragraph 1 of my Report of even date
(i) In respect of fixed assets : a.

The company has maintained proper records of fixed assets showing full particulars of quantitative details
and location on the basis of available information.
As explained to me the fixed assets have been physically verified by the management during the year in a
phased periodical manner and no material discrepancies were identified on such verification.
No substantial part of the fixed assets has been disposed off during the year and the going concern status of the
Company is not affected.

b.
c.

(ii) In respect of Inventory : a.

As explained to me physical verification of inventory has been conducted at reasonable intervals by the
management.

b.

In my opinion and according to the information and explanations given to me the procedure for physical
verification of inventory followed by the management are reasonable and adequate considering the size of the
company and the nature of its business.

c.

The company is maintaining proper records of inventory. As explained to me there were no material
discrepancies noticed on such physical verification of inventory as compared to book records.

(iii) In respect of loans secured or unsecured granted or taken by the company to /from companies, firms or other
parties covered in the register maintained under section 301 of the Companies Act, 1956 : a. The company has not granted any loan, secured or unsecured to companies, firms or other parties covered in
the register maintained under section 301 of the Companies Act. Hence clauses (b), (c) and (d) of clause (iii)
of the paragraph 4 of the companies (Auditor's Report) Order 2003 are not applicable.
e.

The company has not taken any loans secured or unsecured from companies firms or other parties covered in
the Register Maintained under section 301 of the Act, hence clause f and g are not applicable.

(iv) In my opinion and according to the information and explanations given to me there are adequate internal control
procedure commensurate with the size of the company and the nature of its business, for the purchase of
inventory, fixed assets, for the sale of goods and services. During the course of my audit I have not observed any
major weaknesses in internal control.
(v)

In respect of contracts or arrangements covered under section 301 of the Companies Act, 1956 : a.

In my opinion and according to the information and explanations given to me the contracts or arrangements
that needed to be entered into a register in pursuance of section 301 of the Companies Act have been so
entered.

b.

my opinion and according to the information and explanations given to me each of these transactions made in
pursuance to such contracts or arrangements have been made at prices which are reasonable having regard to
the prevailing market prices at the relevant time.

(vi) The company has not accepted any deposit from the public.
(vii) In my opinion the company has an internal audit system commensurate with its size and nature of its business.

(viii) The Central Government has presented maintenance of Cost Records under section 209(l)(d) of the Companies
Act 1956 in respect of manufacturing crepe rubber activity of the company . We have broadly reviewed the
accounts and records of Company in this connection and are of the opinion that, prima facie , the prescribed
accounts and records have been maid and maintained . We have not, however , made a detailed examination of
the same
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