DIRECTORSDear Shareholders,
Your Directors have pleasure in presenting the 29 Annual Report of your Companytogether with the
Audited Accounts drawn for the year ended 31 March, 2011
FINANCIAL RESULTS
| Particulars | Year Ended |
| 31.03.2011 | 31.03.2010 |
| Sales Turnover | 6772 | 5203 |
| (including Other Income) | | |
| Profit before Interest, Depreciation | 467 | 469 |
| Interest, Depreciation & Prior Year Exp. | 100 | 101 |
| Profit before Income Tax | 367 | 368 |
| Surplus brought forward from the Previous Year | 935 | 809 |
| Deferred Income Tax | (61) | (141) |
| Proposed Dividend & Tax | 65 | 51 |
| Surplus carried to Balance Sheet | 1126 | 935 |
| EPS (Rs.) | 3.36 | 2.49 |
REVIEW OF OPERATIONS
The sales turnover of the company at Rs.6772.00 lacs has shown an increase of 30.15% ascompared to Rs.5203.00 lacs in the previous year. Despite increase in raw material andother operational costs, your company could maintain its profitability and recorded a NetProfit of Rs.367.00 lacs as compared to previous year Rs.368.00 lacs.
During the year under review, your company has invested Rs.236.42 lacs towardsmodernization of the plant to improve productivity and quality of its products and alsofor upgrading treatment facilities for air and water pollution.
During the year the company also entered into a new market segment by introducingAbsorbent Kraft paper which is used for manufacturing of base paper for laminates. Theproduct is well accepted in the market. Your company has also developed overseas marketfor its existing range of MG tissue paper and base paper for carbonising.
SHARE CAPITAL
During the year the Equity Share Capital of the company was increased from Rs. 775.00lacs to Rs. 1100.00 lacs.
FUTURE PLANS
Your company plans to set up an additional paper machine for manufacturing of specialtypapers with capacity of 10,000 tons per annum. The company has also decided to diversifyinto manufacture of Surfactant with a capacity of 16,000 tons of LABSA (Linear AlkylBenzene Sulphonic Acid). With greater emphasise on balanced nutrition management inagriculture sector on national level, your company expects substantial increase in demandfor phosphatic fertilizers. Your company has decided to harness this opportunity bymanufacturing of Granuled Single Super Phosphate (GSSP) with a capacity of 1.25 lacs tonsper annum. The said project shall involve capital outlay of about Rs. 35 crores, resultingin increased sales revenue of Rs.240 crores annually.
CORPORATE GOVERNANCE
All mandatory provisions of corporate governance as provided in the listing agreementwith Stock Exchanges on which company's securities are listed, are complied with.
Pursuant to clause 49 of listing agreement with Stock Exchanges, a ManagementDiscussion and Analysis Report and a Corporate Governance Report are made part of thisreport.
A certificate from the auditors of the company regarding compliance with the conditionsof Corporate Governance as stipulated by clause 49 of the listing agreement is attacahedto this report.
DIVIDEND
The Board of Directors of your company were pleased to recommend a Final Dividend of 5%for the year ended 31 March 2011.
AUDITORS REPORT
The notes referred to by the Auditors in their report are self-explanatory and do notcall for further explanation.
DIRECTORS
Shri Ramniklal Salgia retires from office by rotation and being eligible, offershimself for re-appointment.
DIRECTORS' RESPONSIBILITY STATEMENT
In terms of Section 217 (2AA) of the Companies Act, 1956 the Board of Directors confirmthat:
1. In the preparation of the Annual Accounts, the applicable accounting standards havebeen followed.
2. Reasonable and prudent accounting policies have been used in the preparation of thefinancial statements, that they have been consistently applied and that reasonable andprudent judgments and estimates have been made so as to give a true and fair view of thestate of affairs of the Company at the end of financial year and of the profits of theCompany for that year.
3. Proper and sufficient care has been taken for maintenance of adequate accountingrecords in accordance with the provisions of the Companies Act, 1956, for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities; and
4. The Annual Accounts have been prepared on a going concern basis.
AUDITORS
M/s. N. R. Agrawal & Co, Chartered Accountants, Auditors of the company who retireat the ensuing Annual General Meeting of the Company and being eligible, have confirmedtheir willingness to be reappointed at the Annual General Meeting of the company. TheBoard recommends appointment of M/s. N. R. Agrawal & Co., Chartered Accountants, asthe statutory auditors.
PARTICULARS OF EMPLOYEES
There are no employees receiving remuneration in excess of the amount prescribed underSection 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees)Rules, 1975 relating to which a statement of particulars is required to be annexed to thisReport.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION FOREIGN EXCHANGE EARNING & OUTGO
In terms of rule 2 of The Companies (Disclosure of particulars in the report of Boardof Directors Rules, 1988) the relevant particulars are given in the Annexure to thisreport.
ACKNOWLEDGMENTS
Your directors take this opportunity to express their appreciation and gratitude forthe unstinted support, cooperation and assistance received from the company's customers,vendors, business associates, bankers and Government authorities.
The Directors also wish to place on record their appreciation for the devoted anddedicated services rendered by all the employees for the sustained growth of the company.
The Directors also sincerely acknowledge the continued trust and confidence reposed bythe shareholders of the Company
| For and on behalf of the Board, |
| Place : Mumbai | Mahesh Mehta |
| Date : 31 August, 2011 | Director |
ANNEXURE TO THE DIRECTORS' REPORT
FORM A
Statement containing particulars pursuant to the Companies (Disclosure of particularsin the report of Board of Directors) Rules, 1988 and forming part of Directors' Report.
| 1. CONSERVATION OF ENERGY | | |
| A. POWER & FUEL CONSUMPTION | 2010-11 | 2009-10 |
| I. ELECTRICITY | | |
| a. Purchased (net) | | |
| Unit (Lacs KWH) | 104.80 | 31.16 |
| Total / Amount (Rs. in Lacs) | 630.98 | 196.18 |
| Rate / Unit | 6.02 | 6.30 |
| b. Own Generation | | |
| i) Through Diesel Generator | | |
| Unit (Lacs KWH) | NIL | NIL |
| Unit per liter % diesel oil | NIL | NIL |
| Cost / Unit Rs. | N.A. | N.A. |
| ii) Through Steam Turbine Generator | | |
| Unit (Lacs KWH) | NIL | NIL |
| Unit per liter % fuel gas/oil | NIL | NIL |
| Cost / Unit Rs. | N.A. | N.A. |
| II. COAL (Specify quality and where used) | | |
| Quantity (Tonnes) | 10337.475 | 7944.851 |
| Cost (Rs. in Lacs) | 280.32 | 205.63 |
| Average Rate (Rs.) | 2711 | 2588 |
| III. FURNACE OIL | | |
| Quantity (Tonnes) | NIL | NIL |
| Cost (Rs. in Lacs) | NIL | NIL |
| Average Rate (Rs.) | NIL | NIL |
| B. CONSUMPTION PER TONNE | | |
| OF PRODUCTION | | |
| Production (Tonnes) | 11970.332 | 6806.121 |
| Electricity (KWH) | 875 | 458 |
| Furnace Oil (K. Litters) | NIL | NIL |
| Coal (Kgs.) | 863 | 1167 |
| 2. FOREIGN EXCHANGE EARNING | | |
| AND OUTGO | | |
| A. Foreign Exchange Earned (Rs. in lacs) | 315.30 | 372.15 |
| B. Outgo Foreign Exchange (Rs. in lacs) | | |
| I. Value of Imports (CIF) | | |
| a) Raw Materials (Rs. in lacs) | 1256.53 | 870.47 |
| b) Spare Parts and Consumable (Rs. in lacs) | 2.99 | 0.00 |
| c) Capital Goods (Rs. in lacs) | NIL | NIL |
| II. Traveling Expenses and others (Rs. in lacs) | NIL | NIL |
FORM B
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO TECHNOLOGY ABSORPTION
| 1. Specific Area in which R & D carried out by the Company | i. Development of Carbon Base Papers , |
| Napkin Tissue Papers, Ledger Papers, |
| Cream Wove & S. S. Maplitho Papers. |
| ii. Value Added Product like Wax Match and lightweight papers. |
| iii. Energy Conservation. |
| 2. Benefit derived as a result of above R & D | i. High Realization |
| ii. Reduction in Energy cost. |
| iii. Increase in the efficiency of the machines |
| 3. Future Plans | i. Production of Value Added Papers. |
4. Expenditure on R & D
| a) | Capital | Rs. 36.50 Lacs |
| b) | Recurring | Rs.81.00 Lacs |
| c) | Total | Rs.117.50 Lacs |
| d) | Total R&D expenditure as % of Total Turnover | 2% |