| Dear Shareholders,
The Directors are pleased to submit the 50th Annual Report together
with the Audited Statement of Accounts for the year-ended 31st March
2014
FINANCIAL RESULTS (Rs. in lakhs)
For the year ended 31st March 2014 2013
Profit before Depreciation & Taxation 276.68 272.76
Less Depreciation 185.97 187.68
Profit before Taxation 90.71 85.08
Less: Provision for Taxation Current Tax 54.36 36.16
Deferred Tax (21.78) (22.16)
Wealth Tax 0.08 0.14
Net Profit for the year 58.04 70.94
Add: Balance brought forward from previous year 1022.97 979.92
Amount available for appropriation 1081.01 1050.86
Appropriations
a) Transfer to General Reserves 20.00 20.00
b) Proposed Dividend 6.75 6.75
c) Corporate Dividend Tax 1.15 1.15
Balance carried forward to next year 1053.11 1022.96
OPERATIONS
Your Company achieved a turnover of Rs. 2352 lakhs as against Rs. 2328
lakhs (net of excise duty) for the previous year representing an
increase of about 1.03%. The Company has recorded a net profit of 58.C4
lakhs for the year. It is proposed to transfer a sum of Rs 20.00 lakhs
to the general reserves out of the current year's profits.
Your Company continues the process of rationalization of its
operations. With this continuous process the Directors are hopeful
that your Company will grow in strength and withstand any adversities
of cost, inputs, competition etc. in the years to come.
The Directors, with the active involvement of and support from your
Managing Director Shri Gautam V Pai Cacode, continue to be on the
constant lookout for new opportunities on the business front. This
coupled with constant review of all existing depots and units, help in
your Company increasing its sales every year.
DIVIDEND
The Directors recommend a Dividend at the rate of Rs. 30/- per share
to those shareholders whose names appear on the Register of Members as
on 25th September, 2014.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
EARNINGS/OUTGO
Your Company continued to take steps to optimize energy consumption as
in previous years. During the year there was no technology absorption.
There was no foreign exchange earnings. Foreign exchange outgo during
the year is Rs. 11,697,369/-.
Save and except as otherwise specifically stated, there has been no
material changes and commitments affecting the financial position of
the Company which have occurred between the end of the financial year
and the date of the report.
The Company has taken adequate steps to develop and implement a risk
management policy including identification therein of elements of risk,
which in the opinion of the Board may threaten the existence of the
Company.
The Company has finalised the process of developing and implementing
the corporate social responsibility initiatives during the year.
The Company has finalised the process of annual evaluation to be made
by the Board of its own performance and that of its committees and
individual directors.
DIRECTORS RESPONSIBILITY STATEMENT
As per the requirement of Section 134 of the Companies Act, 2013,
(corresponding to Section 217 (2AA) of the Companies Act, 1956) with
respect to the Directors' Responsibility Statement, it is hereby
confirmed that:
* In the preparation of the Annual Accounts, the applicable Accounting
Standards Faye been followed along with proper explanation relating to
material departures, if any.
* The Directors have selected such Accounting Policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company as on 31.3.2014 and of the profits of the Company for that
period.
* The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, for safeguarding the assets of the
Company and for preventing and detecting fraud and other
irregularities.
* The Directors have prepared the Annual Accounts on a going concern
basis.
* The Directors have laid down internal financial controls to be
followed and that such internal controls are adequate and are operating
effectively.
* The Directors have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
BY ORDER OF THE BOARD OF DIRECTORS
THE SOUTHERN GAS LIMITED
GAUTAM V. PAI CACODE
Chairman and Managing Director
Dated: 29th May, 2014.
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