Polymechplast Machines Ltd

Dear Members,

Your Directors have pleasure in presenting their Twenty Second Annual Report together with the Audited Statement of Accounts for the Financial Year ended on 31st March, 2009.

(1) FINANCIAL AND WORKING RESULTS :

(2) YEAR IN RESTROSPECT:

Inspite of accute recession world over, total income of the Company has reduced from Rs. 16,23,00,420/- to Rs. 15,45,41,421 /- Which works out to 4.78%. However it has badly exerted pressure on the margin of the company and net profit of the Company has dwindled down from Rs. 65,16,966/-to Rs. 4,22,242/- which works out to around 93.52%. Lower profit is mainly attributable to foreign exchange rate fluctuation expenses as well as sales promotion expenses in order to combat turbulent position.

However impact of recessionany forces has substantially reduced and the current year has commenced with positive note. Your Directors are optimistic for better results in the years to come.

(3) AUDITORS REPORT:

(i) Note no. 11 of Schedule - 21 (ii) Note no.3 of Schedule 15 and (iii) Note no. 4 of Schedule 15 are self explanatory in respect of Auditors' remarks vide Clause no.4(d) of the Auditors' Report relating to (i) As -26 for intangible assets

(ii) As-15 for employee benefit and (iii) As-29 for provision, contingent assets and contingent liability respectively.

(4) DEPOSITS:

The Company has accepted/renewed fixed deposits in compliance with the Companies (Acceptance of Deposits) Rules, 1975.

(5) DIVIDENDS:

In view of carried forward losses, your directors do not recommend any dividend for the year under review.

(6) EXPORTS:

Global recessionary trend has affected export which has reduced around 65.55%. However with restoration of positive economic scenario, your Company is poised to bounce back.

(7) PARTICULARS OF EMPLOYEES:

There was no employee drawing remuneration of Rs. 24,00,000 p.a. or Rs. 2,00,000 p.m. for part of the year or more and hence no particulars have been furnished under Section 217(2A) of the Companies Act, 1956.

(8) ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE:

Information on conservation of energy, technology absorption, foreign exchange earnings and outgo as required to be disclosed in terms of Section-217 (1)(E) of the Companies Act, 1956, read with the Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988 is annexed and forms part of this report.

(9) DIRECTORS" RESPONSIBILITY STATEMENT:

(I) Your Directors have followed the applicable Accounting Standards alongwith proper explanation relating to material departures, if any, while preparing the annual accounts;

(II) Your Directors have selected such Accounting Policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give true and fair view of the state of affairs of the Company at the end of financial year and of the profit of the Company for the period;

(III) Your Directors have 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;

(IV) Your Directors have prepared the Annual Accounts on a going concern basis.

(10) DIRECTORATE:

Mr. V. V. Vachharajani and Mr M. R. Bhuva retire at the ensuing Annual General Meeting and being eligible, offer themselves for their reappointment as retiring Directors.

(11) AUDITORS:

M/s. PARIKH MEHTA & ASSOCIATES, Chartered Accountants, Auditors of the Company retire at the conclusion of this Annual General Meeting and being eligible offer themselves for reappointment. You are requested to appoint Auditors and fix their remuneration.

(12) ACKNOWLEDGMENTS:

Your Directors wish to thank the Banks, Government Authorities, Customers, Suppliers and Shareholders for their continued support. Your Directors also take this opportunity to record their appreciation for the contributions made by all the employees to the operations of the Company during the year.

ANNEXURE TO THE DIRECTORS' REPORT, 2008-2009

Companies (Disclosure of the Report of Board of Directors) Rules, 1988.

A) CONSERVATION OF ENERGY.

Your Company has already taken sufficient steps for Energy Saving, the Company has fitted further Exhaust Ventilator in different shade. As well in all offices the electronics power saving tubes are fitted. Company is still looking forward for better ways to improve it.

B) TECHNOLOGY ABSORPTION:

Your Company is in continuous process of deputing people at various functioning level at appropriate various Seminars, International and Domestic Exhibitions, Technical Training Program etc. for getting acquainted with better technology.

Research and development (R&D):

1. SPECIFIED AREA:

Development of

• Development of Bigger capacity Blow Moulding Machine. The Machine Model PBM 50H.

• Development of servo Motor technology in the Injection Moulding Machine to save the energy consummation of Machine.

• Thriple colour Machine developed, result start and give good response.

2. BENEFITS DERIVED:

By this year company has extended further 3 year of ISO 9001 - 2000 Quality management system to provide better quality machine to the customer.

1). Future plan:

Company is planning to make biggest 1000 size injection moulding machine with three colour injecting limit.

C) FOREIGN EXCHANGE EARNING AND OUTGO:

1) Expenditure in foreign currency

Rs.8,85,15,737/- (P.Y Rs.4,09,67,400/-) on account of Traveling / Supplier Payment.

2) Foreign Exchange Earning in Foreign currency, equivalent to. Rs.2,59,16,708/- (Previous year Rs.1,91,28,329/-) against sale of machines & components / technical consultancy, supervision and installation charges.

3) The company has made the direct export worth of Rs 1,28,66,654/- (Previous Year Rs.3,73,49,619/-).

FORM -A

Form for Disclosure of Particulars with respect to conservation of Energy.

Power and fuel consumption :

1. Electricity -

(a) Purchased

B. Consumption per unit of production ( Plastic processing machines i.e Injection &Blow Molding Machines and their parts)