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Company Information

Home » Market » Company Information

Rajapalayam Mills Ltd.

Aug 23
748.05 +7.85 (+ 1.06 %)
 
VOLUME : 1431
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Rajapalayam Mills Ltd. is not traded in NSE
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Market Cap. ( ₹ ) 551.77 Cr. P/BV 0.32 Book Value ( ₹ ) 2,306.41
52 Week High/Low ( ₹ ) 959/655 FV/ML 10/1 P/E(X) 5.28
Bookclosure 09/08/2019 TTM EPS ( ₹ ) 0.00 Div Yield (%) 0.53
DIRECTOR'S REPORT
You can view full text of the latest Director's Report for the company.
Year End :2018-03 

DIRECTORS' REPORT

TO THE MEMBERS

Your Directors have pleasure in presenting their 82nd Annual Report and the Audited Accounts of the Company for the year ended 31st March, 2018.

1. FINANCIAL RESULTS

The financial results for the year ended 31st March, 2018 after charging all expenses and contribution to P.A.C. Ramasamy Raja Memorial Fund of Rs. 50 Lakhs (which is less than the limits laid in the Articles of Association) but before deducting finance cost and depreciation have resulted in operating profit (EBITDA) of Rs. 7,572.15 Lakhs against Rs. 8,100.23 Lakhs for the previous financial year 2016-17.

After deducting Rs. 1,752.58 Lakhs towards finance cost and providing Rs. 3,285.47 Lakhs towards Depreciation, the Net Profit and other comprehensive income before tax for the year is Rs. 2,510.57 Lakhs, as compared to Rs. 3,759.24 Lakhs for the previous financial year 2016-17. Adding the surplus of Rs. 1,000 Lakhs brought forward from the previous year, your Directors propose to appropriate the total sum of Rs. 3,510.57 Lakhs as detailed below:

(Rs. in Lakhs)

Provision for Taxation - Current Tax

295.29

- Deferred Tax (including MAT Credit Entitlement of Rs. 295.29 Lakhs)

(686.67)

Dividend distributed to Shareholders and Dividend distribution tax paid (FY 2016-17)

355.11

Transfer to General Reserve and FVTOCI Reserve

1,546.84

Balance carried over to Balance sheet

2,000.00

TOTAL

3,510.57

2. SHARE CAPITAL

The Paid-up Capital of the Company is Rs. 737.62 Lakhs (Previous Year: Rs. 737.62 Lakhs) consisting of 73,76,160 Shares of Rs. 10/- each.

3. DIVIDEND

Your Directors have pleasure in recommending a Dividend of Rs. 4/- per share (Previous Year: Rs. 4/- per share). The Company will pay Dividend Distribution Tax under Income Tax Act, 1961. The total amount of Dividend outgo for the year will be Rs. 295.05 Lakhs. The amount of tax on dividends would be Rs. 60.65 Lakhs.

4. TAXATION

An amount of Rs. 295.29 Lakhs towards Current Tax has been provided and Deferred Tax of Rs. 391.38 Lakhs has been withdrawn for the year 2017-18. The Company's entitlement of MAT Credit of Rs. 295.29 Lakhs has been recognized in the books during the year.

5. MANAGEMENT DISCUSSION AND ANALYSIS TRADE CONDITIONS

• COTTON

In India, the plantation of cotton crop has increased to 123 Lakh hectares in the cotton year 2017-18 (October to September) as against 103 Lakh hectares in the same period of last year. In spite of increase in acreage, the cotton prices have not come down due to pest attack and erratic monsoon rains. The quality of the cotton was also not good during the initial cotton season. Most of the area in Maharashtra and Gujarat have been hit badly by the pink bollworm attack and the cotton arrivals had been slowed down during peak cotton arrival season. The imported cotton provided no respite as the international cotton prices of all the varieties have continued to move upward. The increase in raw material prices has heavily impacted the manufacturing competitiveness of Indian Spinning Mills in the global market.

The price of comber noils, which is the raw material for Open End Spinning has also increased steeply due to more exports of noils from India. Because of this, the cost of cotton consumption has increased during the financial year 2017-18.

• YARN PRODUCTION

The Company is now focusing on production of customized, fine / super fine yarn to get better contribution as compared coarser/ medium fine counts produced during the last financial year 2016-17. Due to this, the production volume has decreased to 151.92 Lakhs Kgs. during the financial year 2017-18 as against 157.39 Lakhs Kgs. of the last financial year.

• SALE OF YARN

The sale volume has decreased in line with production during the financial year 2017-18 and it was 155.89 Lakh Kgs. as compared to 159.04 Lakh Kgs. of last financial year. However, the sale value of yarn has increased from Rs. 398.14 Crores (FY 2016-17) to Rs. 417.60 Crores (FY 2017-18).

India's spinning sector had witnessed challenges on multiple fronts during the FY 2017-18. The implementation of GST in India with effect from 01-07-2017 had affected offtake of yarn during the first quarter of the financial year as many of the customers focused on inventory clearance prior to GST. Post implementation of GST, the Government has reduced the export incentives to yarn as well as fabric and garments. On the other hand, imports of textiles and clothing from other Countries into India have consistently increased by 20%. This has negatively affected the domestic yarn manufacturers as the consumption of yarn by fabric / garment manufacturers has come down sharply. This apart, cotton yarn exports have been under pressure on account of decline in demand from China. Out of total yarn exports from India, China accounted for more than 40% till last year, which has been reduced to 17% during FY 2017-18.

Due to subdued export demand and sluggishness in domestic market for yarn, the Company was not able to increase the yarn prices in line with the increase in raw material cost. These factors have affected the profitability of the Company for the financial year 2017-18. The Company's focus on value addition, procuring superior quality of cotton, reducing the production of commodity counts and replacing the same with customized yarn counts has helped to mitigate the impact to some extent. The Company is able to attract more customers from overseas market and continues to have a good demand from export market on account of supply of superior and consistent quality of yarn. The investments made in value added machineries during the past years have given the ability to the Company to customize its products in line with the requirements of its customers.

• POWER COST

During the financial year 2017-18, the Company was able to consume electricity from its own wind power to the extent of 71% of total power requirement as compared to 68% consumed from wind mills during the last year. Because of this, the power cost has reduced to Rs. 3,093.93 Lakhs during the financial year 2017-18 from Rs. 3,192.05 Lakhs of last financial year 2016-17.

• FINANCE COST

The Finance cost during the financial year 2017-18 has reduced to Rs. 1,752.58 Lakhs from Rs. 2,142.79 Lakhs a decline of 18% mainly due to initiatives taken by the Company to reduce the cost of borrowings and repayment of Term Loans.

In spite of increased cotton cost and labour costs, the strategic decision taken by the Company to make investments in value added machines has helped to sustain the volume of sales in export / corporate customers and protected the margin.

6. EXPORTS

On the export front, the Company has made export of Cotton Yarn (including merchant exports) for a value of Rs. 113.66 Crores during the financial year as against Rs. 121.93 Crores of the previous year. In addition to our regular International Market, we have established our presence in Turkey / Portugal also where our quality is well appreciated and started to get regular orders from these segments.

Your Directors are thankful to M/s. Mitsubishi Corporation, M/s. Doko Spinning Co. Ltd., and M/s. Unitika Ltd., Japan for their continued support and efforts for promotion of exports to Japan.

7. MODERNISATION / EXPANSION

As a part of continuous thrust on modernization and expansion programme, the Company has invested about Rs. 21.82 Crores for investment in textile machinery & equipments like, latest Auto Coners, Quality Control Equipments, Ring Frames etc.,

8. PROSPECTS FOR THE CURRENT YEAR

The BT cotton, which brought white gold revolution to India, has been recently witnessing the incidents of bollworm attack. Due to uncertainty between US and China over trade tariffs, China may import more Indian cotton during the next cotton season. Hence the cotton prices are likely to remain firm on account of a tight supply situation and robust export demand. The Company has well defined system for monitoring demand and supply of required quality of cotton and also the price movements in domestic and international markets. With the Company's expertise in judicial purchase of cotton, it will be able to procure high quality cotton with reasonable price.

The rising of textile imports due to the removal of countervailing duty and special additional duty post implementation of Goods and Services Tax (GST) is a matter of concern for Indian Textile Industry. Although these duties have been replaced by Integrated Tax under GST regime, the importer can take credit of Integrated Tax which made the textile imports cheaper and posing a threat to domestic manufacturers.

The Company's efforts to increase the customer base across the globe for supply of value added super fine counts has started yielding the results. The Company is concentrating on modernizing the machineries to further improve quality and cost effective production. Thrust is being given for producing value added counts like Melange yarn, Mercerized yarn, Core Spun yarn etc, which is expected to fetch higher margin in the forthcoming years. With the flexibility to produce value added super fine counts, the Company will continue to make efforts in expanding the marketing activities across the globe to increase the profitability.

9. FABRIC PROJECT

The Company is selling premium yarn qualities to leading woven fabric manufacturers in India and abroad. Most of the customers are outsourcing their fabric requirements beyond their in-house capacity. Such customers are ready to buy yarn dyed greige fabric from our Company if it establishes a weaving unit. Hence it is proposed to establish a 'Yarn Dyed Weaving Unit' at a cost of Rs, 265 Crores which will have the capacity of 120 Looms to produce 10 Million meters of fabrics per annum. The Company has applied a term loan for this project under Amended Technology Fund Scheme of Government of India. It is expected to commence the commercial production during the 1st quarter of financial year 2019-20.

10. WIND MILL

The Company has wind mills with installed capacity of 35.15 MW for its captive power consumption. The wind farm has generated 682.74 Lakhs Kwh as compared to 683.56 Lakhs Kwh of the previous year. There was a good wind velocity supported by good evacuation by Tamil Nadu Generation and Distribution Corporation (TANGEDCO) during the financial year 2017-18. All the Units generated by wind mills were adjusted for captive consumption at our Mills in Tamil Nadu. The income during the year from the Wind Mill Division was Rs. 45.52 Crores as against Rs. 45.62 Crores of previous year.

11. ASSOCIATE COMPANY

During the year 2017-18, the Company has acquired Shares of M/s. Ramco Windfarms Limited and as per Ind AS - 28, the Board has considered M/s. Ramco Windfarms Limited as its Associate Company.

The Company has 7 Associate Companies, viz., M/s. The Ramco Cements Limited, M/s. Ramco Industries Limited, M/s. Ramco Systems Limited, M/s. The Ramaraju Surgical Cotton Mills Limited, M/s. Sri Vishnu Shankar Mill Limited, M/s. Ontime Industrial Services Limited and M/s. Ramco Windfarms Limited.

In accordance with Rule 5 of Companies (Accounts) Rules, 2014, a statement containing the salient features of the financial statements of the Company's Associates is attached in Form AOC-1 as Annexure - I.

CONSOLIDATED FINANCIAL STATEMENTS

As per provisions of Section 129(3) of the Companies Act, 2013 and Regulation 34 of SEBI (LODR) Regulations, 2015, Companies are required to prepare consolidated financial statements of its Subsidiaries and Associates to be laid before the Annual General Meeting of the Company.

Accordingly, the consolidated financial statements incorporating the accounts of Associate Companies, along with the Auditors' Report thereon, forms part of this Annual Report. As per Section 136 (1) of the Companies Act, 2013, the Financial Statements including Consolidated Financial Statements are available at the Company's website at the following link at http://www.rajapalayammills.co.in

The Consolidated net profit of the Company amounted to Rs. 11,543.55 Lakhs for the year ended 31st March, 2018 as compared to Rs. 14,519.45 Lakhs of the previous year.

The Consolidated Total Comprehensive Income for the year under review is Rs. 11,561.02 Lakhs as compared to Rs. 14,507.07 Lakhs of the previous year.

12. INTERNAL FINANCIAL CONTROLS

In accordance with Section 134(5)(e) of the Companies Act, 2013, the Company has Internal Financial Controls Policy by means of Policies and Procedures commensurate with the size & nature of its operations and pertaining to financial reporting. In accordance with Rule 8(5)(viii) of Companies (Accounts) Rules, 2014, it is hereby confirmed that the Internal Financial Controls are adequate with reference to the financial statements. ERP System developed by Ramco Systems Limited has been installed for online monitoring of all functions and management information reports are being used to have better internal control system and to take decisions in time.

13. VIGIL MECHANISM / WHISTLE BLOWER POLICY

In accordance with Section 177(9) and (10) of the Companies Act, 2013 and Regulation 22 of SEBI (LODR) Regulations, 2015 the Company has established a Vigil Mechanism and has a Whistle Blower Policy. The policy is available at the Company's website.

14. DIRECTORS

In accordance with the provision of the Companies Act, 2013 and in terms of the Memorandum and Articles of Association of the Company, the following Directors retire by rotation at the ensuing Annual General Meeting and they are eligible for re-appointment.

1. Shri A.V. Dharmakrishnan, (DIN: 00693181)

2. Shri P.V. Abinav Ramasubramaniam Raja, (DIN: 07273249)

Shri P.V. Abinav Ramasubramaniam Raja (DIN: 07273249) has been appointed as Director liable to retire by rotation at the Annual General Meeting held on 10th August, 2017.

Shri P.A.S. Alaghar Raja (DIN: 00487312) has been appointed as Independent Director for a period of five years with effect from 11-02-2017 at the Annual General Meeting held on 10th August, 2017.

Pursuant to Rule 8(5)(iii) of Companies (Accounts) Rules, 2014, it is reported that, other than the above, there have been no changes in the Directors or Key Managerial Personnel during the year under review.

The Independent Directors hold office for a fixed term of 5 years and are not liable to retire by rotation. No Independent Director has retired during the year.

The Company has received necessary declarations from all the Independent Directors under Section 149(7) of the Companies Act, 2013, that they meet the criteria of independence as provided in Section 149(6) of the Companies Act, 2013.

At the Annual General Meeting held on 04-08-2014, the following Directors were appointed as an Independent Directors for a period of 5 consecutive years from 01-04-2014 to 31-03-2019:

1. Shri N.K. Ramasuwami Raja

2. Justice Shri RRS. Janarthana Raja

3. Shri V. Santhanaraman

At the Annual General Meeting held on 12-08-2015, Shri K.B. Nagendra Murthy was appointed as an Independent Director for a period of 5 consecutive years from 04-08-2014 to 03-08-2019.

They are eligible for reappointment for another period of 5 years as Independent Directors. In accordance with Section 149(10) of the Companies Act, 2013, their reappointment has been proposed in the Notice convening the Annual General Meeting as Special Resolutions.

Board of Directors at the Meetings held on 31-01-2018 have evaluated the performance of the Independent Directors and based on the contribution of the Directors, the Nomination and Remuneration Committee have recommended their re-appointment.

The Audit Committee has four members, out of which three are Independent Directors. Pursuant to Section 177(8) of the Companies Act, 2013, it is reported that there has not been an occasion, where the Board had not accepted any recommendation of the Audit Committee.

In accordance with Section 178(3) of the Companies Act, 2013 and based upon the recommendation of the Nomination and Remuneration Committee, the Board of Directors have approved a policy relating to appointment and remuneration of Directors, Key Managerial Personnel and Other Employees.

As per Provision to Section 178(4), the salient features of the Nomination and Remuneration Policy should be disclosed in the Board's Report. Accordingly the following disclosures are given:

Salient Features of the Nomination and Remuneration Policy: The objective of the Policy is to ensure that:

(a) the level and composition of remuneration is reasonable and sufficient to attract, retain and motivate directors of the quality required to run the company successfully;

(b) relationship of remuneration to performance is clear and meets appropriate performance benchmarks; and

(c) remuneration to directors, key managerial personnel and senior management shall be appropriate to the working of the company and its goals.

The Nomination and Remuneration Committee and this Policy shall be in compliance with the Companies Act, 2013 and SEBI (LODR) Regulations, 2015.

The web address of the Policy is at www.rajapalayammills.co.in/pdf/nomination-and-remuneration-policy.pdf

15. EVALUATION OF BOARD

Pursuant to Section 134(3)(p) of the Companies Act, 2013, and Regulation 25(4) of SEBI (LODR) Regulations, 2015, Independent Directors have evaluated the quality, quantity and timeliness of the flow of information between the Management and the Board, Performance of the Board as a whole and its Members and other required matters.

Pursuant to Schedule II, Part D of SEBI (LODR) Regulations, 2015, the Nomination and Remuneration Committee has laid down evaluation criteria for performance evaluation of Independent Directors, which will be based on attendance, expertise and contribution brought in by the Independent Director at the Board Meeting, which shall be taken into account at the time of reappointment of Independent Director.

Pursuant to Regulation 17(10) of SEBI (LODR) Regulations, 2015, the Board of Directors have evaluated the performance of Independent Directors and observed the same to be satisfactory and their deliberations beneficial in Board / Committee meetings.

Pursuant to Regulation 4(f)(2)(ii) of SEBI (LODR) Regulations, 2015, the Board of Directors have reviewed and observed that the evaluation frame work of the Board of Directors was adequate and effective.

The Board's observations on the evaluations for the previous year were similar to their observations for the year under review. No specific actions have been warranted based on current year observations. The Company would continue to familiarise its Directors on the industry, technological and statutory developments, which have a bearing on the Company and the industry, so that Directors would be effective in discharging their expected duties.

16. MEETINGS

During the year, five Board Meetings were held. The details of the date and number of meetings of the Board and Committees held during the financial year indicating the number of meetings attended by each Director are given in the Corporate Governance Report.

17. SECRETARIAL STANDARD

As required under Clause 9 of Secretarial Standard 1, the Board of Directors confirms that the company has complied with applicable Secretarial Standards.

18. PUBLIC DEPOSITS

Pursuant to Rule 8(5)(v) & (vi) of Companies (Accounts) Rules, 2014, it is reported that the Company has not accepted any deposit from public during the financial year under review. There has been no default in the repayment of deposits / payment of interest thereon during the financial year. The Company has no deposit, which is not in compliance with the Chapter V of the Companies Act, 2013.

The Company has received a sum of Rs. 1,075 Lakhs from Directors as deposit / loan during the financial year 2017-18. It has repaid an amount of Rs. 1,940.94 Lakhs during the financial year 2017-18.

19. ORDERS PASSED BY REGULATORS

Pursuant to Rule 8(5)(vii) of Companies (Accounts) Rules, 2014, it is reported that, no significant and material orders have been passed by the Regulators or Courts or Tribunals, impacting the going concern status and Company's operations in future.

20. PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

Pursuant to Section 186(4) of the Companies Act, 2013, it is reported that:

(a) the particulars of loans are provided under Note No.46 (xiv).

(b) the particulars of the guarantees and investments are provided under Note No.43 and Note No.8 & 9 respectively of Notes forming part of financial statements. The guarantees are to secure the loans from Banks / Financial Institutions to the borrowers.

21. CORPORATE SOCIAL RESPONSIBILITY

In terms of Section 135 and Schedule VII of the Companies Act, 2013, the Board of Directors have constituted a Corporate Social Responsibility (CSR) Committee and adopted a CSR Policy which is based on the philosophy that "As the Organization grows, the Society and Community around it also grows."

The Company has undertaken various projects in the areas of education, health, rural development, water and sanitation, promotion and development of traditional arts, livelihood enhancement projects, etc. largely in accordance with Schedule VII of the Companies Act, 2013.

Your Directors are pleased to inform that the Company has fulfilled its CSR obligations pursuant to Section 135(5) of the Companies Act, 2013. As against the requirement of Rs. 58.26 Lakhs, the Company has spent Rs. 62.50 Lakhs on CSR during the year 2017-18.

The CSR policy is available at the Company's website at the following link at http://www.rajapalayammills.co.in

The Annual Report on CSR activities as prescribed under Companies (Corporate Social Responsibility Policy) Rules, 2014 is attached as Annexure - II.

22. AUDITS

STATUTORY AUDIT

The Companies Amendment Act, 2017, had removed the necessity for ratification of the appointment of Statutory Auditors, by Members at every Annual General Meeting during their tenure of appointment. Accordingly, the practice of seeking yearly ratification for the appointment of Statutory Auditors at the Annual General Meeting is dispensed with.

M/s. N.A. Jayaraman & Co., Chartered Accountants and M/s. SRSV & Associates, Chartered Accountants are the Statutory Auditors of the Company.

At the 81st Annual General Meeting, the above Auditors have been appointed as statutory auditors for a period of 5 consecutive years financial years commencing from the financial year 2017-18 and to hold office from the conclusion of 81st Annual General Meeting till the conclusion of 86th Annual General Meeting to be held in the year 2022.

As required under Regulation 33(1)(d) of SEBI (LODR) Regulations, 2015, the Auditors have also confirmed that they hold a valid certificate issued by the Peer Review Board of the Institute of Chartered Accountants of India.

The report of the Statutory Auditors for the year ended 31st March, 2018 does not contain any qualification, reservation or adverse remark and no instance of fraud has been reported by Auditors under Section 143(12) of Companies Act, 2013.

SECRETARIAL AUDIT

Shri M.R.L. Narasimha, a Practicing Company Secretary has been appointed to conduct the Secretarial Audit of the Company. Pursuant to Section 204(1) of the Companies Act, 2013, the Secretarial Audit Report submitted by the Secretarial Auditor for the year ended 31st March, 2018 is attached as Annexure - III. The report does not contain any qualification, reservation or adverse remark.

COST AUDIT

The Board of Directors had approved the appointment of Shri M. Kannan, Cost Accountant as the Cost Auditor of the Company to audit the Company's Cost Records relating to manufacture of textile products for the year 2018-19.

The remuneration of the cost auditor is required to be ratified by the members in accordance with the provisions of Section 148(3) of the Companies Act, 2013 and Rule 14 of Companies (Audit and Auditors) Rules, 2014. Accordingly, the matter is being placed before the Members for ratification at the ensuing Annual General Meeting.

The Cost Audit Report for the financial year 2016-17 due to be filed with Ministry of Corporate Affairs by 30-09-2017 had been filed on 06-09-2017. The Cost Audit Report for the financial year 2017-18 is due to be filed within 180 days from the closure of the financial year and will be filed within the stipulated period.

23. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

Pursuant to Section 134(3)(m) of the Companies Act, 2013 and Rule 8(3) of Companies (Accounts) Rules, 2014, the information relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo is attached as Annexure - IV.

24. EXTRACT OF ANNUAL RETURN

In Accordance with Section 92(3) of the Companies Act, 2013, read with Rule 12(1) of Companies (Management and Administration) Rules, 2014, an extract of the Annual Return in Form MGT-9 is attached herewith as Annexure - V.

25. CORPORATE GOVERNANCE

The Company has complied with the requirements regarding Corporate Governance as stipulated in SEBI (LODR) Regulations, 2015. As required under Schedule V(C) of SEBI (LODR) Regulations, 2015 a Report on Corporate Governance being followed by the Company is attached as Annexure - VI. As required under Schedule V(E) of SEBI (LODR) Regulations, 2015 a Certificate from the Auditors confirming compliance is also attached as Annexure - VII to this Report.

26. PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

The disclosures in terms of provisions of Section 197(12) of the Companies Act, 2013 read with Rule 5(1), (2) and (3) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, relating to remuneration are provided in Annexure- VIII.

27. INDUSTRIAL RELATIONS AND PERSONNEL

The Company has 3,028 employees as on 31-03-2018. Industrial relations with employees remained cordial during the year. Human Resources Development activities received considerable focus. The emphasis was on imparting training and development of the skill-set of the employees to enable them to face the challenges in the work environment.

28. RELATED PARTY TRANSACTION

Prior approval / Omnibus approval is obtained from the Audit Committee for all related party transactions and the transactions are periodically placed before the Audit Committee for its approval. No transaction with the related party is material in nature, in accordance with Company's "Related Party Transaction Policy" and Regulation 23 of SEBI (LODR) Regulations, 2015. In accordance with Indian Accounting Standard - 24 (Related Party Disclosure), the details of transactions with the related parties are set out in Note No:46 of disclosures forming part of Financial Statements.

As required under Regulation 46(2)(g) of SEBI (LODR) Regulations, 2015, The Company's Related Party Transaction Policy is disclosed in the Company's website and its web link is http://www.rajapalayammills.co.in/pdf/related-party-transaction-policy.pdf

29. RISK MANAGEMENT POLICY

Pursuant to Section 134(3)(n) of the Companies Act, 2013 and Regulation 17(9) of SEBI (LODR) Regulations, 2015, the Company has developed and implemented a Risk Management Policy. The Policy envisages identification of risk and procedures for assessment and minimization of risk thereof.

30. DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134(5) of the Companies Act, 2013, the Directors confirm that:

(a) they had followed the applicable accounting standards along with proper explanation relating to material departures, if any, in the preparation of the annual accounts for the year ended 31st March, 2018;

(b) they had 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 31st March, 2018 and of the profit of the Company for the year ended on that date;

(c) they had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(d) they had prepared the Annual Accounts on a going concern basis;

(e) they had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and

(f) they had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

ACKNOWLEDGEMENT

The Directors are grateful to the various Departments and agencies of the Central and State Governments for their help and co-operation. They are thankful to the Financial Institutions and Banks for their continued help, assistance and guidance. The Directors wish to place on record their appreciation of employees at all levels for their commitment and their contribution.

On behalf of the Board of Directors,

For RAJAPALAYAM MILLS LIMITED,

RAJAPALAIYAM,

P.R. VENKETRAMA RAJA

29th May, 2018.

CHAIRMAN

ANNEXURE I TO DIRECTORS' REPORT

Form AOC-1

[Pursuant to Section 129(3) of the Companies Act, 2013 read with Rule 5 of Companies (Accounts) Rules, 2014]

Statement containing salient features of the financial statement of Associate Companies

PART A - SUBSIDIARY COMPANY

The Company has no Subsidiary Company.

PART B - ASSOCIATE COMPANY

Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies

Particulars

2017-18

Name of the Associate Company

The Ramco Cements Limited

Ramco Industries Limited

Ramco Systems Limited

The Ramaraju Surgical Cotton Mills Limited

Sri Vishnu Shankar Mill Limited

Ontime Industrial Services Limited

Ramco Windfarms Limited

Last Audited Balance Sheet date

31-03-2018

31-03-2018

31-03-2018

31-03-2018

31-03-2018

31-03-2018

31-03-2018

Date on which the Associate was associated / acquired

01-04-2016

01-04-2016

01-04-2016

01-04-2016

01-04-2016

01-04-2016

27-05-2017

No. of Shares held as on 31st March 2018

3,29,05,000

79,20,680

7,33,531

4,000

38,400

50,000

8,32,000

Amount of Investment in Associate as on 31-03-2018 (Rs. in Lakhs)

3,779.94

92.40

1,141.55

0.05

87.65

5.00

8.32

Extent of Shareholding % as on 31-03-2018

13.97

9.14

2.41

0.10

2.56

17.77

8.32

Description of how there is significant influence

Note (1)

Reason why Associate is not consolidated

Not applicable

Net worth attributable to Shareholding (Rs. in Lakhs)

4,10,828.00

2,88,549.00

54,073.80

21,725.82

16,105.74

833.94

1,131.91

Profit / Loss for the Year (Consolidated) (Rs. in Lakhs)

56,286.00

18,213.00

1,048.50

912.47

882.99

48.84

454.29

a) Considered in Consolidation (Rs. in Lakhs)

8,768.27

976.28

24.47

0.81

(1.87)

8.68

7.31

b) Not considered in Consolidation (Rs. in Lakhs)

47,517.72

17,236.72

1,024.03

911.66

884.86

40.16

446.98

Note: 1) There is significant influence, because of shareholding / common directors.

2) Names of associates or joint ventures which are yet to commence operations - NIL

3) Names of associates or joint ventures which have been liquidated or sold during the year - NIL

On behalf of the Board of Directors,

For RAJAPALAYAM MILLS LIMITED,

RAJAPALAIYAM,

P.R. VENKETRAMA RAJA

29th May, 2018.

CHAIRMAN

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES

1. A brief outline of the Company's CSR policy.

The objective of the CSR Policy is:

a. to ensure an increased commitment at all levels in the organization, to operate its business in an economically, socially & environmentally sustainable manner, while recognising the interests of all its stakeholders.

b. to directly or indirectly take up programmes that benefit the communities in & around its work locations and results, over a period of time, in enhancing the quality of life & economic well being of the local populace.

c. to generate, through its CSR initiatives, a community goodwill for the Company and help reinforce a positive & socially responsible image of the Company as a corporate entity.

Web link to the CSR Policy: http://www.rajapalayammills.co.in/pdf/corporate-social-responsibility-policy.pdf

2. The Composition of the CSR Committee:

a. Shri P.R. Venketrama Raja, Chairman of the Committee

b. Justice Shri P.P.S. Janarthana Raja, Member

c. Shri P.V. Abinav Ramasubramaniam Raja, Member

3. Average Net Profit of the Company for last three financial years Rs. 2,912.95 Lakhs.

4. Prescribed CSR Expenditure (two percent of the amount as in item 3 above): Rs. 58.26 Lakhs.

5. Details of CSR spent during the financial year:

a. Total amount spent for the financial year: Rs. 62.50 Lakhs.

b. Amount unspent, if any: Nil

c. Manner in which the amount spent during the financial year is detailed below: (Rs. in lakhs)

SI. No.

CSR Project (or) Activity Identified

Sector in which the project is covered

Projects or programmes (1) Local area or other (2) Specify the State and district where projects or Programs was undertaken

Amount Outlay (Budget) Project or Program wise

Amount Spent on the project or Programs Sub-heads: (1) Direct Expenditure on projects or programs (2) Overheads:

Cumulative Expenditure upto reporting Period

Amount Spent Direct or through implementing Agency.

1

2

3

4

5

6

7

8

1

Eradicating Hunger, Poverty and Malnutrition, promoting health care including preventive health care and Sanitation including contribution to the Swach Bharat Kosh set-up by the Central Government for the promotion of sanitation and making available Safe Drinking Water. [Clause (i)]

Eradication of Hunger and Promotion of Healthcare including Preventive Healthcare

Chennai, Coimbatore, Dindigul, Madurai, Tirunelveli & Virudhunagar district (Tamil Nadu)

8.75

8.75

8.75

8.75

(Rs. in lakhs]

SI. No.

CSR Project (or) Activity Identified

Sector in which the project is covered

Projects or programmes (1) Local area or other (2) Specify the State and district where projects or Programs was undertaken

Amount Outlay (Budget) Project or Program wise

Amount Spent on the project or Programs Sub-heads: (1) Direct Expenditure on projects or programs (2) Overheads:

Cumulative Expenditure upto reporting Period

Amount Spent Direct or through implementing Agency.

2.

Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly and the differently abled and livelihood enhancement projects [Clause (ii)l

Promotion of Education including Special Education

Virudhunagar & Tirunelveli district (Tamil Nadu)

51.37

51.37

51.37

51.37

3.

Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water including contribution to the Clean Ganga Fund set-up by the Central Government for rejuvenation of river Ganga [Clause (iv)]

Ensuring Environmental Sustainability

Virudhunagar (Tamil Nadu)

2.38

2.38

2.38

2.38

TOTAL

62.50

62.50

62.50

62.50

Note:

1. As per Articles of Association of the Company, every year, a provision has been made for an amount not exceeding 3% of the net profit towards P.A.C. Ramasamy Raja Memorial Fund. During the year the Company has spent an amount of Rs 50 Lakhs out of accumulated balance of the above said fund and the same has been included in the above sum of Rs. 62.50 Lakhs.

2. The Company has made a provision of Rs. 50 Lakhs towards the above said Fund for the FY 2017-18. This amount has not been included in the above statement and will be considered when the amount is actually spent from the Fund.

The CSR Committee confirms that the implementation and monitoring of CSR Policy is in Compliance with CSR objectives and Policy of the Company.

SHRI P.R. VENKETRAMA RAJA

SMT. R. SUDARSANAM

CHAIRMAN

MANAGING DIRECTOR

RAJAPALAIYAM,

29th May, 2018.

ANNEXURE III TO DIRECTORS' REPORT

Form MR - 3

SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018

[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To

The Members,

Rajapalayam Mills Limited, [CIN: L17111TN1936PLC002298]

Rajapalayam Mills Premises,

P.A.C. Ramasamy Raja Salai,

Post Box No.1, Rajapalaiyam - 626117.

I have conducted a Secretarial Audit of the compliance of applicable statutory provisions and adherence to good corporate practices by RAJAPALAYAM MILLS LIMITED (hereinafter called "the Company") during the financial year from 1st April, 2017 to 31st March, 2018 ("the year"/ "audit period" / "period under review"). I conducted the Secretarial Audit in a manner that provided me a reasonable basis for evaluating the Company's corporate conducts / statutory compliances and expressing my opinion thereon.

I am issuing this report based on my verification of the books, papers, minute books and other records maintained by the Company, forms and returns filed, compliance related action taken by the Company during the year as well as after 31st March, 2018 but before the issue of this audit report and the information provided by the Company, its officers, agents and authorised representatives during my conduct of the Secretarial Audit.

1. I hereby report that:

1.1. In my opinion, during the audit period covering the financial year ended on 31st March, 2018, the Company has complied with the statutory provisions listed hereunder and also has proper Board processes and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter. The Members are requested to read this report along with my letter of even date annexed to this report as Annexure - A.

1.2. I have examined the books, papers, minute books and other records maintained by the Company and the forms, returns, reports, disclosures and information filed or disseminated during the year according to the applicable provisions of :

(i) The Companies Act, 2013 and the rules made thereunder (the Act).

(ii) Securities Contracts (Regulation) Act, 1956 and the rules made thereunder.

(iii) The Depositories Act, 1996 and the regulations and bye-laws framed thereunder.

(iv) The following Regulations prescribed under the Securities and Exchange Board of India Act, 1992 (SEBI Regulations):-

(a) Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;

(b) Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;

(c) Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

(v) The following laws, that are specifically applicable to the Company:

(a) Essential Commodities Act 1955, with reference to "Hank Yarn Packing Notification 2003" (No..2/TDRO/8/2003 dated 17th April, 2003); and

(b) The Electricity Act, 2003.

1.3 I have also examined compliance with the applicable clauses of the following:

(i) Secretarial Standards (SS-1) on "Meetings of the Board of Directors" and Secretarial Standards (SS-2) on "General Meetings" issued by The Institute of Company Secretaries of India and

(ii) The Listing agreement entered into by the Company with BSE Limited.

1.4. During the period under review, and also considering the compliance related action taken by the Company after 31st March, 2018 but before the issue of this report, the Company has, to the best of my knowledge and belief and based on the records, information and explanations furnished to me, complied with the applicable provisions / Clauses of the Acts, Rules, Regulations, Agreements and Standards mentioned under paragraphs 1.2 and 1.3 above.

1.5. I am informed that, during / in respect of the year:

(i) Due to non-occurrence of certain events, the Company was not required to comply with the following laws / guidelines / regulations and consequently was not required to maintain any books, papers, minute books or other records or file any forms / returns under:

(a) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings;

(b) Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014;

(c) Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998;

(d) Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009;

(e) Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act, 2013 and dealing with client.

(f) Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009; and

(g) Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;

(ii) There was no law, other than those specified in paragraph 1.2(v) above, that was specifically applicable to the Company, considering the nature of its business. Hence the requirement to report on compliance with specific laws did not arise.

2. I further report that:

2.1 The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The Board also have two Woman Directors. The change in composition of the Board of Directors that took place during the period under review was carried out in compliance with the provisions of the Act.

2.2 Adequate notice is given to all directors to schedule the Board Meetings. Notice of Board meetings were sent at least seven days in advance. Agenda and detailed notes on agenda were sent atleast seven days before the Board meetings with the exception of the following items, which were either circulated separately or at the meetings:

(i) Supplementary agenda notes and annexures in respect of unpublished price sensitive information such as audited accounts / results, unaudited financial results and connected papers; and

(ii) Additional subjects / information / presentations and supplementary notes.

Consent of the Board for circulating them separately or at the meeting was duly obtained as required under the Secretarial Standards.

2.3 A system exists for directors to seek and obtain further information and clarifications on the agenda items before the meetings and for their meaningful participation at the meetings. Majority decision is carried through. I am informed that there were no dissenting members' views on any of the matters discussed during the year that were required to be captured and recorded as part of the minutes.

3. I further report that:

3.1 There are adequate systems and processes in the Company commensurate with its size and operations to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

M.R.L. Narasimha

Practising Company Secretary

Membership No: 2851

Certificate of Practice: 799

Rajapalaiyam,

34-C, 3rd Cross, R.L.Nagar

29th May, 2018.

K.K. Pudur, Coimbatore - 641 038.

Annexure - A to Secretarial Audit Report of even date

To,

The Members,

Rajapalayam Mills Limited, [CIN: L17111TN1936PLC002298]

Rajapalayam Mills Premises,

P.A.C. Ramasamy Raja Salai,

Post Box No.1, Rajapalaiyam - 626117.

My Secretarial Audit Report (Form MR-3) of even date for the financial year ended 31st March, 2018 is to be read along with this letter.

1. The Company's management is responsible for maintenance of secretarial records and compliance with the provisions of corporate and other applicable laws, rules, regulations and standards. My responsibility is to express an opinion on the secretarial records produced for my audit.

2. I have followed such audit practices and processes as I considered appropriate to obtain reasonable assurance about the correctness of the contents of the secretarial records.

3. While forming an opinion on compliance and issuing this report, I have also considered compliance related action taken by the Company after 31st March, 2018 but before the issue of this report.

4. I have verified the secretarial records furnished to me on a test basis to see whether the correct facts are reflected therein. I also examined the compliance procedures followed by the Company on a test basis. I believe that the processes and practices I followed provide a reasonable basis for my opinion.

5. I have not verified the correctness and appropriateness of financial records and books of accounts of the Company.

6. I have obtained the Management's representation about compliance of laws, rules and regulations and happening of events, wherever required.

7. My Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the management has conducted the affairs of the Company.

M.R.L. Narasimha

Practising Company Secretary

Membership No: 2851

Certificate of Practice: 799

Rajapalaiyam,

34-C, 3rd Cross, R.L.Nagar

29th May, 2018.

K.K.Pudur, Coimbatore - 641 038.

ANNEXURE IV TO DIRECTORS' REPORT

Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo

[Pursuant to Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3) of Companies (Accounts) Rules 2014]

A. CONSERVATION OF ENERGY

The Company pays attention at all levels to reduce energy consumption, by continuous monitoring maintenances and improvements.

(i) the steps taken on conservation : of energy

: Installation of IE3 Energy efficiency motors in Spinning Short frames by replacing old motors

Installation of Inverter Drives in Autocone winding machines with closed Loop control system.

Impact on conservation of energy

: Installation of Inverter Drives in Autocone winding machines with closed Loop control system resulted in Power saving of around 51,000 Units per annum.

(ii) the steps taken by the Company for : utilising alternate sources of energy

: NIL

(iii) the capital investment on energy : conservation equipments

: NIL

B. TECHNOLOGY ABSORPTION

(i) the efforts made towards technology : absorption

(ii) the benefits derived like product improvement, cost reduction, product development or import substitution

1. Modification of OE Spinning lifting mechanism to avoid mis-piecing and to increase productivity.

2. Up-gradation of Auto Coner Drums to increase productivity.

3. Installation of Auto doffer Ring frames.

(iii) in case of imported technology (imported during the last three years reckoned from the beginning of the financial year)

(a) the details of technology imported :

: NIL

(b) the year of import :

: NIL

(c) whether the technology been : fully absorbed

: Not Applicable

(d) if not fully absorbed, areas where absorption has not taken place : and the reasons thereof

: Not Applicable

(iv) the expenditure incurred on : Research and Development

Not Applicable

C. FOREIGN EXCHANGE EARNINGS AND OUTGO

The Foreign Exchange earned in terms of : actual inflows during the year and

Rs. 8,004.68 Lakhs

The Foreign Exchange outgo during the: year in terms of actual outflows.

Rs. 11,081.56 Lakhs

On behalf of the Board of Directors,

For RAJAPALAYAM MILLS LIMITED

RAJAPALAIYAM,

P.R. VENKETRAMA RAJA

29th May, 2018.

CHAIRMAN

ANNEXURE V TO DIRECTORS' REPORT

Form MGT - 9

EXTRACT OF ANNUAL RETURN

As on the financial year ended on 31st March, 2018

[Pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS:

CIN

L17111TN1936PLC002298

Registration Date

24-02-1936

Name of the Company

RAJAPALAYAM MILLS LIMITED

Category / Sub-Category of the Company

Public Limited Company

Address of the Registered Office and Contact details

Rajapalayam Mills Premises, P.A.C.Ramasamy Raja Salai, Post Box No.1, Rajapalaiyam, Tamil Nadu, Pin: 626 117.

Whether listed company

Yes

Name, Address and Contact details of Registrar and Transfer Agent, if any

Share Transfer is being carried out in-house.

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

Business activities contributing 10% or more of the total turnover of the Company:

Name and Description of main products / services

NIC Code of the Product / service

% to total turnover of the Company

Yarn

13111

99.43%

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Name and address of the Company

CIN / GLN

Holding / Subsidiary / Associate

% of Shares held

Applicable Section

1 . The Ramco Cements Limited "Ramamandiram", Rajapalayam -626 117. Tamil Nadu.

L26941TN1957 PLC003566

Associate

13.97%

2(6)

2. Ramco Industries Limited 47, P.S.K. Nagar, Rajapalayam -626 108. Tamil Nadu.

L26943TN1965 PLC005297

Associate

9.14%

2(6)

Name and address of the Company

CIN / GLN

Holding / Subsidiary / Associate

% of Shares held

Applicable Section

3. Ramco Systems Limited 47, P.S.K. Nagar, Rajapalayam -626 108. Tamil Nadu.

L72300TN1997 PLC037550

Associate

2.41%

2(6)

4. The Ramaraju Surgical Cotton Mills Limited The Ramaraju Surgical Cotton Mills Premises Post Box No. 2, 119, P.A.C. Ramasamy Raja Salai, Rajapalaiyam -626 117. Tamil Nadu

U17111TN1939 PLC002302

Associate

0.10%

2(6)

5. Sri Vishnu Shankar Mill Limited Post Box No.109, P.A.C. Ramasamy Raja Salai, Rajapalaiyam -626 117. Tamil Nadu

U17301TN1981 PLC008677

Associate

2.56%

2(6)

6. Ontime Industrial Services Limited 47, P.S.K. Nagar Rajapalayam -626 108. Tamil Nadu

U74999TN2002 PLC048773

Associate

17.77%

2(6)

7. Ramco Windfarms Limited Auras Corporae Centre, 5th Floor, 98-A Dr Radhakrishnan Road, Mylapore Chennai - 600 004

U40109TN2013 PLC093905

Associate

8.32%

2(6)

IV. SHAREHOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

i) Category-Wise Share Holding

Category of Shareholder

No. of Shares held at the beginning of the year

No. of Shares held at the end of the year

% Change during the year

Demat

Physical

Total

% of Total Shares

Demat

Physical

Total

% of Total Shares

A.

(1)

Promoters Indian

a)

Individuals/ Hindu Undivided Family

36,01,380

36,01,380

48.82

36,01,380

36,01,380

48.82

b)

Central Government

c)

State Government(s)

d)

Bodies Corporate

3,20,440

3,20,440

4.35

3,20,440

3,20,440

4.35

e)

Financial Institutions/ Banks

f)

Any Others...

-

-

-

-

-

-

-

-

-

Sub Total(A)(1)

39,21,820

-

39,21,820

53.17

39,21,820

-

39,21,820

53.17

-

(2)

a)

Foreign

NRIs-Individuals

b)

Other Individuals

_

.

_

_

.

_

_

.

_

c)

Bodies Corporate

_

.

_

_

.

_

_

.

_

d)

Financial Institutions/ Banks

e)

Any Others

-

-

-

-

-

-

-

-

-

Sub Total(A)(2)

-

-

-

-

-

-

-

-

-

Total Shareholding of Promoter (A)= (A)(1) (A)(2)

39,21,820

_

39,21,820

53.17

39,21,820

_

39,21,820

53.17

_

Category of Shareholder

No. of Shares held at the beginning of the year

No. of Shares held at the end of the year

% Change during the year

Demat

Physical

Total

% of Total Shares

Demat

Physical

Total

% of Total Shares

B. (1)

Public shareholding Institutions

a)

Mutual Funds

-

-

-

-

1,05,266

-

1,05,266

1.43

1.43

b)

Financial Institutions / Banks

200

1,860

2,060

0.03

200

1,860

2,060

0.03

c)

Central Government

_

_

_

_

_

_

_

_

_

d)

State Government(s)

_

_

_

_

_

_

_

_

_

e)

Venture Capital Funds

_

_

_

_

_

_

_

_

_

f)

Insurance Companies

_

_

_

_

_

_

_

_

_

g)

Foreign Institutional Investors

h)

Foreign Venture Capital Funds

i)

Others (specify)

-

-

-

-

-

-

-

-

-

Sub-Total (B)(1)

200

1,860

2,060

0.03

1,05,466

1,860

1,07,326

1.46

1.43

(2) a)

Non-institutions Bodies Corporate

i)

Indian *

3,66,094

900

3,66,994

4.97

3,83,472

900

3,84,372

5.21

0.24

ii)

Overseas

-

-

-

-

-

-

-

-

-

b)

Individuals

i)

Individual shareholders holding nominal share capital up to Rs. 1 lakh

13,60,506

4,19,089

17,79,595

24.13

12,51,563

3,83,490

16,35,053

22.16

(1.97)

ii)

Individual shareholders holding nominal share capital in excess of Rs. 1 lakh.

9,53,871

3,51,820

13,05,691

17.70

9,75,769

3,51,820

13,27,589

18.00

0.30

c)

Others (specify)

Sub-Total (B)(2)

26,80,471

7,71,809

34,52,280

46.80

26,10,804

7,36,210

33,47,014

45.37

(1.43)

B

Total Public Shareholding (B)= (B)(1) (B)(2)

26,80,671

7,73,669

34,54,340

46.83

27,16,270

7,38,070

34,54,340

46.83

C

Shares held by Custodians for GDRs & ADRs

GRAND TOTAL (A) (B) (C)

66,02,491

7,73,669

73,76,160

100.00

66,38,090

7,38,070

73,76,160

100.00

_

* Note : Includes Shares in Unclaimed Shares Suspense Account (opening - 1,75,716 Shares; Closing - 8,280) and Shares in Investor Education and Protection Fund Account (Opening - Nil: Closing 1,76,815)

(ii) Shareholding of Promoters

SI. No.

Shareholder's Name

Shareholding at the beginning of the year

Shareholding at the end of the year

% Change in Shareholding during the year

No. of Shares

% of Total Shares of the Company

% of Shares Pledged / encumbered to total Shares

No. of Shares

% of Total Shares of the Company

% of Shares Pledged / encumbered to total Shares

1.

Shri P.R. Ramasubrahmaneya Rajha

9,88,792

13.40

_

_

_

_

_

2.

Shri P.R. Venketrama Raja

14,66,080

19.88

14.91

14,66,080

19.88

-

-

3.

Shri P.V. Abinav Ramasubramaniam Raja

9,63,160

13.06

_

19,51,952

26.46

_

13.40

4.

Smt. Ramachandra Raja Chittammal

82,628

1.12

-

82,628

1.12

_

-

5.

Smt. P.V. Nirmala

2,720

0.04

-

2,720

0.04

-

-

6.

Smt. Nalina Ramalakshmi

6,720

0.09

-

6,720

0.09

-

-

7.

Smt. Saradha Deepa

10,960

0.15

-

10,960

0.15

-

-

8.

Smt. P.V. Sri Sandhya

16,560

0.22

-

16,560

0.22

-

-

9.

Smt. R. Sudarsanam

63,760

0.86

-

63,760

0.86

-

-

10.

M/s. Ramco Industries Limited

1,27,360

1.73

-

1,27,360

1.73

-

-

11.

M/s. The Ramaraju Surgical Cotton Mills Limited

1,35,200

1.83

-

1,35,200

1.83

-

-

12.

M/s. Sri Vishnu Shankar Mill Limited

29,740

0.40

-

29,740

0.40

-

-

13.

M/s. Ramco Management Private Limited

2,040

0.03

_

2,040

0.03

_

_

14.

M/s. Sandhya Spinning Mill Limited

500

0.01

-

500

0.01

_

-

15.

M/s. The Ramco Cements Limited

25,600

0.35

-

25,600

0.35

_

-

TOTAL

39,21,820

53.17

14.91

39,21,820

53.17

-

13.40

(iii) Change in Promoters' Shareholding

SI

Shareholding

Increase / (Decrease) in shareholding

Cumulative Shareholding during the year (01-04-2017 to 31-03-2018)

No.

No. of Shares at the beginning (01-04-2017) / end of the year (31-03-2018)

% of total shares of the Company

Date

Reason

No. of Shares

% of total shares of the Company

1.

39,21,820

53.17

01-04-2017

NIL

NIL

NIL

NIL

39,21,820

53.17

31-03-2018

(iv) Shareholding Pattern of top ten Shareholders (other than Directors and Promoters):

SI. No.

Name

Shareholding

Date

Increase / (Decrease) in shareholding

Reason

Cumulative Shareholding during the year (01-04-2017 to 31-03-2018)

No. of Shares at the beginning (01-04-2017) / end of the year (31-03-2018)

% of total shares of the Company

No. of Shares

% of total shares of the Company

1

Shri Govindlal M Praikh Joint Holder: Chinmay.G.Parikh

1,73,932

2.36

01-04-2017

_

_

1,73,932

2.36

2

Sri-La-Sri Shanmukadesika Gnanasambanda Paramarcharya Swamigal

1,02,400

1.39

01-04-2017

1,02,400

1.39

3

Shri Govindlal M Parikh

63,200

0.86

01-04-2017

-

-

63,200

0.86

4

Smt. Chinmay G Parikh Joint Holder: Shri Govindlal M Parikh

61,876

0.84

01-04-2017

61,876

0.84

5

Rajapalayam Palayapalayam Rajus Common Mahimai Fund

51,200

0.69

01-04-2017

_

_

51,200

0.69

6

IP. Sokkalal Ramsait Factory Pvt. Ltd.

52,200

0.71

01-04-2017

_

_

52,200

0.71

-

-

02-02-2018

(110)

Transfer

52,090

0.71

-

-

09-02-2018

(1,286)

Transfer

50,804

0.69

-

-

16-02-2018

(250)

Transfer

50,554

0.69

-

-

23-02-2018

(497)

Transfer

50,057

0.68

-

-

02-03-2018

(493)

Transfer

49,564

0.67

-

-

09-03-2018

(272)

Transfer

49,292

0.67

-

-

16-03-2018

(50)

Transfer

49,242

0.67

7

Smt. DH Dharshini Raaja

48,981

0.66

01-04-2017

-

-

48,981

0.66

8

Shri V. Ganesa Ramasubramanian

46,880

0.64

01-04-2017

-

-

46,880

0.64

9

Smt. Poosapadi Sankera Raja Ramani Devi

45,580

0.62

01-04-2017

_

_

45,580

0.62

10

Shri Ettappanaickerayyen J.V.R.M.K.V

40,960

0.56

01-04-2017

-

-

40,960

0.56

(v) Shareholding of Directors and Key Managerial Personnel:

SI. No.

Name

Shareholding

Date

Increase / (Decrease) in shareholding

Reason

Cumulative Shareholding during the year (01-04-2017 to 31-03-2018)

No. of Shares at the beginning (01-04-2017) / end of the year (31-03-2018)

% of total shares of the Company

No. of Shares

% of total shares of the Company

1.

Shri P.R. Ramasubrahmaneya Rajha

9,88,792

13.41

N.A.

(9,88,792)

Transmission of Shares

_

_

NIL

NIL

N.A.

NIL

NIL

2.

Shri P.R. Venketrama Raja

14,66,080

19.88

N.A.

N.A.

N.A.

-

-

14,66,080

19.88

N.A.

N.A.

N.A.

14,66,080

19.88

3.

Smt. R. Sudarsanam

63,760

0.86

N.A.

N.A.

N.A.

_

_

63,760

0.86

N.A.

N.A.

N.A.

63,760

0.86

4.

Shri S.S. Ramachandra Raja

24,480

0.33

N.A.

N.A.

N.A.

_

_

24,480

0.33

N.A.

N.A.

N.A.

24,480

0.33

5.

Shri N.K. Ramasuwami Raja

15,400

0.21

N.A.

N.A.

N.A.

_

_

15,400

0.21

N.A.

N.A.

N.A.

15,400

0.21

6.

Shri A.V. Dharmakrishnan

1,100

0.01

N.A.

N.A.

N.A.

_

_

1,100

0.01

N.A.

N.A.

N.A.

1,100

0.01

7.

Justice Shri P.P.S. Janarthana Raja

NIL

NIL

N.A.

N.A.

N.A.

NIL

NIL

8.

Shri V. Santhanaraman

NIL

NIL

N.A.

N.A.

N.A.

NIL

NIL

9.

Shri K.B. Nagendra Murthy

NIL

NIL

N.A.

N.A.

N.A.

NIL

NIL

10.

Smt. Soundara Kumar

NIL

NIL

N.A.

N.A.

N.A.

NIL

NIL

11.

Shri P.V. Abinav Ramasubramaniam Raja

9,63,160

13.06

N.A.

N.A.

N.A.

_

_

19,51,952

26.46

04-06-2017

9,88,792

Transmission of Shares

19,51,952

26.46

12.

Shri P.A.S. Alaghar Raja

6,520

0.09

N.A.

N.A.

N.A.

_

_

6,520

0.09

N.A.

N.A.

N.A.

6,520

0.09

13.

Shri B. Gnanagurusamy

NIL

NIL

N.A.

N.A.

N.A.

NIL

NIL

14.

Shri A. Amlpranavam

NIL

NIL

N.A.

N.A.

N.A.

NIL

NIL

V. INDEBTEDNESS

Indebtedness of the Company includinq interest outstandinq / accrued but not due for payment

Particulars

Secured Loans excluding deposits

Unsecured Loans

Deposits

Total Indebtedness

Indebtedness at the beginning of the financial year

i) Principal Amount

16,023.29

12,135.56

-

28,158.85

ii) Interest due but not paid

-

-

-

-

iii) Interest accrued but not due

63.58

33.21

-

96.79

Total (i ii iii)

16,086.87

12,168.77

-

28,255.64

Change in Indebtedness during the financial year

Addition

1,190.07

691.37

-

1,881.44

Reduction

(6,124.83)

-

-

(6,124.83)

Net Change

(4,934.76)

691.37

-

(4,243.39)

Indebtedness at the end of the financial year

i) Principal Amount

11,114.56

12,814.26

-

23,928.82

ii) Interest due but not paid

-

-

-

-

iii) Interest accrued but not due

37.55

45.88

-

83.43

Total (i ii iii)

11,152.11

12,860.14

-

24,012.25

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL A. Remuneration to Managing Director, Whole-time Directors and / or Manager:

SI. No.

Particulars of Remuneration

Smt. R. Sudarsanam Managing Director

Total Amount

1

Gross Salary

a) Salary as per provisions contained in Section 17(1) of the Income-tax Act, 1961

240.00

240.00

b) Value of perquisites u/s 17(2) Income-tax Act, 1961

-

-

c) Profits in lieu of salary under Section17(3) Income-tax Act, 1961

-

-

2

Stock Option

-

-

3

Sweat Equity

-

-

4

Commission as % of profit

-

-

5

Sitting Fees

1.50

1.50

6

Contribution to Provident Fund

28.80

28.80

7

Contribution to Superannuation Fund

1.50

1.50

Total (A)

271.80

271.80

Ceiling as per Act

Managing Director remuneration is fixed at 5% of net profits of the Company and in case, no profits or inadequacy of profits, the Managing Director shall be paid the maximum remuneration as per Section II, Part II of Schedule V of the Companies Act, 2013 which works out to Rs. 270.30 Lakhs plus applicable sitting fees.

B. REMUNERATION TO OTHER DIRECTORS: 1. Independent Directors

Name of the Directors

Total Amount

Particulars of Remuneration

Shri N.K. Ramasuwami Raja

Justice Shri P.P.S.Janarthana Raja

Shri V. Santhanaraman

Shri K.B. Nagendra Murthy

Smt Soundara Kumar

Shri P.A.S. Alaghar Raja

Fee for attending board / committee meetings

3.30

3.90

1.80

3.00

1.80

1.80

15.60

Commission

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

Total (1)

3.30

3.90

1.80

3.00

1.80

1.80

15.60

2. Other Non Executive Director

Particulars of Remuneration

Name of the Directors

Total Amount

Shri P.R. Venketrama Raja

Shri A.V. Dharmakrishnan

Shri S.S. Ramachandra Raja

Shri P.V. Abinav Ramasubramaniam Raja

Fee for attending board / committee meetings

2.10

3.00

1.80

1.50

8.40

Commission

-

-

-

-

-

Others

-

-

-

-

-

Total (2)

2.10

3.00

1.80

1.50

8.40

Total B (1) (2)

24.00

Overall Ceiling as per the Act

Rs. 28.05 Lakhs being 1% of the Net Profits of the Company, calculated as per Section 198 of the Companies Act, 2013.

Total Managerial Remuneration (A B)

295.80

C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/ MANAGER/ WTD

SI. No.

Key Managerial Personnel

Total Amount

Particulars of Remuneration

Shri B. Gnanagurusamy Chief Financial Officer

Shri A. Arulpranavam Company Secretary

1

Gross Salary

a) Salary as per provisions contained in Section 17(1) of the Income-tax Act, 1961

30.38

9.17

39.55

b) Value of perquisites u/s 17(2) Income-tax Act, 1961

0.35

_

0.35

c) Profits in lieu of salary under Section17(3) Income-tax Act, 1961

2

Stock Option

-

-

-

3

Sweat Equity

-

-

-

4

Commission

-

-

-

as % of profit

-

-

-

Others, specify

-

-

-

5

Others, please specify

-

-

-

Total

30.73

9.17

39.90

VII. PENALTIES/ PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type

Section of the Companies Act

Brief Description

Details of Penalty / Punishment / Compounding fees imposed

Authority (RD/NCLT / COURT)

Appeal made, if any (give Details)

A. COMPANY

Penalty Punishment

Nil

Compounding

B. DIRECTORS

Penalty Punishment

Nil

Compounding

C.OTHER OFFICERS IN DEFAULT

Penalty Punishment

Nil

Compounding

On behalf of the Board of Directors,

For RAJAPALAYAM MILLS LIMITED,

RAJAPALAIYAM,

PR. VENKETRAMA RAJA

29th May, 2018.

CHAIRMAN