DIRECTORS
To,
The Members,
The Directors have pleasure to present 14th Annual Report of the company together with
Accounts for the year ended 31st March, 2009.
Financial Statements:
[Rs. In lacs]
|
Year Ended |
| Particulars |
31/03/2009 |
31/03/2008 |
| Sales including other Income |
661.52 |
633.53 |
| Profit/(loss) before Interest & Depreciation |
56.48 |
34.43 |
| Add/Less: Interest |
24.07 |
12.05 |
| Depreciation |
16.87 |
17.95 |
| Net Profit / (Loss) |
15.49 |
3.84 |
| Balance brought forward |
(448.32) |
(452.17) |
| Balance/(Loss) Carried Forward |
(432.83) |
(448.32) |
DIVIDEND: In view of meager amount of profit earned during the year
under review, your Directors do not recommend any dividend for the year.
Management Discussion and Analysis:
a) Operations : The sales including other income for the year under review were
Rs.661.52 against Rs.633.53 in the previous year registering the growth of about 4.41%.
The Net profit during the year under review amounted to Rs. 15.50 Lacs as against Profit
of Rs.3.85 Lacs in the previous year.
b) Outlook : The year under review show a steep rise in the international prices of
polymers the main raw material for making company's products. The Company was to a great
extent able to pass on the increase burden to the customer. The Company has also taken
steps like cost cutting measure,operational efficiency etc.to reduce the overhead cost in
order to sustain the business activity.The medium term and long term outlook for the
company's products is very good. The automobile sector is growing at very high rate.
Company has already entered in the automobile sector and acquired significant business,
which has a good realization. The company has also given major trust on exports and doing
well, which will result in improving company's performance.
c) Internal Control System : The Company is maintaining an adequate internal
control system including procedures. The Company has a system to conduct regularly a
review of the financial and operating controls at various places and levels in the
company. Further the company has appointed audit committee which regularly reviews with
management, external audits and adequacy of internal control system.
d) Human Resources : Company currently employs 27 employees which comprises of
qualified and trained in technical and managerial skills. It is company's first priority
to enrich its employees by prompting learning and enhancing their knowledge by product
training and arranging relevant program.
The company continued to have cordial and harmonious relations with its employees.
The information as per section 217(2A)(b)(ii) of the Companies Act, 1956 read with the
companies (Particulars or Employees) Rules 1975 is not furnished, as no employee of the
Company falls within the limits prescribed.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND
OUTGO.
Information required as per the Companies (Disclosure of particulars in the Report of
the Board of Directors) Rules. 1988, is given in the Annexure-A to this Report.
Fixed Deposit: The Company has not accepted any deposits during the
year under review: Directors' responsibility statement:
Pursuant to section 217(2AA) of the Companies Act, the Directors confirm that.
a) In the preparation of the annual accounts, the applicable accounting standards have
been followed;
b) Appropriate accounting policies have been selected and applied consistently and
judgment and estimates made that are reasonable and prudent so as to give a true and fair
view of the State of affairs of the Company at the end of the financial year ended 31st
March, 2009 and the Profit and Loss account for that year,
c) 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
assets of the Company and preventing and detecting fraud and other irregularities;
d) The annual accounts have been prepared on a going concern basis.
Corporate Governance:
Being a listed company, necessary measures are taken to comply with the listing
agreements with Stock Exchanges. A report on Corporate Governance along with a certificate
of compliance from Auditors as per Annexure B form part of this report.
DIRECTORS:
Mr.Dilipbhai K Desai retire by rotation at the ensuing Annual General Meeting and being
eligible offer themselves for reappointment. Notice have been received under Section257 of
the Companies Act, 1956 proposing Mr.Pravin G Desai, Dr.Hiler K Desai & Mr.Ramesh P
Ghoghari as Directors of the Company, Your approval is sought for their appointment vide
resolutions at item no.4,5,and6 of the accompanying notice. Shri N.N.Gandhi ceased to be
Director.
Auditors and Auditor's Report:
M/s Nilkanth Desai & Associates, Chartered Accountants, Auditors of the Company
retire and are eligible for reappointment. The Company has received a certificate from the
Auditor to the effect that their reappointment, if made, will be within the prescribed
limits under section 224(1-B) of the Companies Act, 1956.
The notes on accounts referred to in the Auditors Report are self explanatory and
therefore do not call for any further comments.
Acknowledgement:
The Directors would like to place on record their appreciation for the support and
co-operation extended by Canara Bank and Central and State Government Authorities and
employees of the Company.
| Place: Palsana/Surat |
For and on behalf of the Board |
|
| Date: 25/08/2009 |
Vijay D Vashi |
Bhikhubhai M. Desai |
|
Wholetime Director |
Chairman & Wholetime Director |
ANNEXURE-A TO THE DIRECTOR'S REPORT 2009
PARTICULARS OF ENERGY CONSERVATIONS, TECHONLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO:
(A) Conservation of Energy : Adequate measures have been taken to avoid wastage
of energy. The requirements for disclosure with respect to conservation of energy is not
applicable to the Company.
(B) Technology absorption: Research an Development (R&D):
a. Specific area in which R&D was carried out by the Company: Research and
Development has continuously been carried out for improvement in quality of existing
product and development of new improved product. The development of different grades of
masterbatches and compounds for automobiles, consumer durables, coolers and plastic molded
furniture industry.
b. Benefit derived as a result of above R&D: Production process have improved
resulting in enhanced productivity, efficiency through out and value addition.
c. Future plan of action: R&D effort will continue for upgrading the quality of
masterbatches and compounds so as to increase extensive use in cooler, automobile
&furniture segments. Steps are continuously being undertaken to upgrade the processing
technology development of innovative products and maximum production capacities at optimum
cost.
d. Expenditure on R&D: Rs. NIL
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION: The Company is
continuously taking steps to improve the product and process technology in en effort to
provide better quality to the customer and to compete effectively in the market place.
(C) Foreign Exchange Earnings & Outgo:
|
2008-09 (Rs.) |
2007-2008 (Rs.) |
| Foreign Exchange Used |
Nil |
Nil |
| Foreign Exchange Earned |
18,45,200 |
19,08,723 |
| Place: Palsana/Surat |
|
For and on behalf of the Board |
| Date: 25/08/2009 |
Vijay D Vashi |
Bhikhubhai M. Desai |
|
Wholetime Director |
Chairman & Wholetime Director |