Precot Meridian Ltd.

(formerly known as Precot Mills), a leading manufacturer of Yarn and Fabrics, was established in the year 1962 by Mr.V.N.Ramachandran and Mr.N.Damotharan, technocrats in the field of textile technology. Precot Meridian has been in the field of yarn and fabric production for nearly five decades and has gained extensive expertise and knowledge across various verticals. Products manufactured include cotton yarn, sewing threads, fabrics and garments. Precot Meridian is a leading player in the textile industry, with an annual turnover of Rs 600 crores.

Precot Meridian started its first production in 1964 with an initial capacity of 12,096 spindles at Kanjikode, Kerala. Precot Meridian now has units in the four southern states of India viz., Tamil Nadu, Kerala, Andhra Pradesh and Karnataka with the total spinning capacity of 2,25,000 spindles, 1728 rotors and 117 looms. In 2006, Meridian Industries merged with Precot Mills and the name was changed to Precot Meridian Ltd., and the current capacity is 66,154 spindles. Precot Meridian is looking towards green power generation and has invested in 17 Windmills. These windmills cater 50% of the power requirements of units located in Tamil Nadu.

Quality Systems Precot Meridian being an ISO 9001 certified company is focused on providing the finest quality yarns and fabrics. In order to meet customer requirements and to ensure their satisfaction, Precot Meridian implemented TQM in all the units for executing 5S methods of house keeping and 3M methods to control wastage of resources. Quality System is achieved through total employee involvement, technical Innovation and continual improvement.

 High

Volume instrument for cotton testing Advance fiber information system Uster evenness tester 4 for yarn testing and Tensomax for measuring single yarn strength.

ERP Solutions (SAP) is used in the following divisions: Production Quality control in manufacturing units Maintenance Finance Costing Sales and Distribution Materials Management

FINANCE DEPARTMENT

PERFORMANCE HIGHLIGHTS
RS IN LAKHS
2005 OPERATING RESULTS SALES AND OTHER INCOME PBIDT INTEREST PBDT DEPRECIATION TAXES NET PROFIT DIVIDEND&DIVIDE ND TAX RETAINED PROFIT 2006 2007 2008 2009 2010

24938 3392 709 2683 1809 64 810 218 592

23693 4165 179 3985 1863 620 1502 373 1129

33649 5852 915 4938 2415 634 1889 407 1482

36947 4527 1103 3425 2715 197 512 163 349

38973 3629 1302 2327 2992 206 871

43661 6779 1220 5559 2792 1196 1572 405

871

1167

PERFORMANCE HIGHLIGHTS
PERFORMANCE HIGHLIGHTS NET FIXED ASSETS 12950 13851 22792 24135 23442 20656

SHARE CAPITAL
RESERVES NET WORTH BORROWINGS DEBT: EQUITY DIVIDEND(%) CASH EARNINGS PER SHARE(RS) EARNINGS PER SHARE(RS)

545
9771 12091 10867 0.9 35 48

545
10900 13502 9590 0.7 60 62

695
13479 16706 19751 1.2 50 62

695
13451 16601 21215 1.3 20 46

695
11739 14321 22006 1.5

695
13904 16620 22614 1.4 50

31

63

15

28

27

13

23

BALANCE SHEET
AS AT 31.3.2010 RS IN LAKHS SOURCES OF FUNDS SHARE HOLDERS FUNDS SHARE CAPITAL RESERVES AND SURPLUS 695 13903.54 14598.54 LOAN FUNDS SECURED LOANS UNSECURED LOANS 22330.35 283.93 22614.28 DEFFERED TAX LIABILITY TOTAL FUNDS EMPLOYED 1661.57 38874.39 21703.5 302.84 22006.34 1886.99 36327.81 695 11739.48 12434.48 AS AT 31.3.2009 RS IN LAKHS

BALANCE SHEET

SALES DEPARTMENT

ENQUIRIES THROUGH MAIL QUOTATION ORDER CONFIRMATION LC IS USED FOR EXPORTING PRODUCTS PROCEDURES WITH SHIPPING BANKING WITH DISCOUNT LC OPENING BANK CUSTOMER PAYMENT

BANGLADESH PHILLIPINES GERMANY KOREA EGYPT JAPAN BELGIUM PORTUGAL

RAW MATERIAL DEPARTMENT

PLANNING OF RM
SALES REQUIRMENTS OF MILLS

PLANNING BY RM DEPARTMENT
BUDGETING BY RM DEPARTMENT MARKET SURVEY

DETAILED PLANNING WITH REVISIONS

MANAGEMENT APPROVAL IF IT IS OK, PROCEED WITH PURCHASE OR

REVISION OF PLANS IS DONE

STRATEGIC PLANNING
HOW TO MAINTAIN INVENTORY AT WHICH PERIODS SEASON STARTS IN OCTOBER AND PURCHASE

STOP IS MADE IN MARCH

PROCESSING
ASK FOR QUOTE FROM SUPPLIERS

SUPPLIER PERMITS QUOTE ALONG WITH

SAMPLE GOES FOR TESTING QUALITY CHECK NEGOTIATE PRICE PROCEED WITH CONTRACT DESPATCH TAKES PLACE

THANK YOU

P.PRAGADEESHWARAN