Plastiblends India Ltd Directors Report.


The Members of

Plastiblends India Limited

Your Directors have pleasure in presenting the THIRTIETH ANNUAL REPORT and the Audited Financial Statements for the Financial Year ended 31st March, 2021.

1 Financial Highlights (Rs in Lacs)

PARTICULARS Year ended 31st March 2021 Year ended 31st March 2020
Revenue from Operations (Net of Tax) 57,733.49 60,587.24
Other Income 350.63 262.13
Total Revenue 58,086.12 60,849.37
Other Expenditure 50,875.91 53,842.56
Earnings before Interest and Depreciation (EBIDTA) 7,208.21 7,006.81
Less : Interest 301.68 148.22
Depreciation 1,587.29 1,705.01
Profit Before Tax (PBT) 5,319.24 5,153.58
Less : Provision for Taxation
Current Tax 1,402.79 1,434.38
Deferred Tax 38.06 53.54
(Excess)/short provision for earlier years 143.69 (51.88)
Profit After Tax (PAT) 3,734.71 3,717.54
Other Comprehensive Income 1,186.52 (461.36)
Total Comprehensive Income for the year 4,921.23 3,256.18

2 Operations

The Board of Directors is pleased to share your Companys continued progress, as reflected in its growth in margins and profitability inspite of challenging situations.

The brief highlights of operations for the Financial Year 2020-21 are as under :-

The revenue from Operations was Rs 57,733 Lacs for FY 2020-21 as against Rs 60,849 Lacs for FY 2019-20.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased to Rs 7,208 Lacs in FY 2020-21 from

Rs 7,007 Lacs in FY 2019-20, an increase of 2.87%.

Profit before tax increased to Rs 5,319 Lacs in FY 2020-21 from Rs 5,154 Lacs in FY 2019-20, an increase of 3.21%.

Profit after tax increased to Rs 3,735 in FY 2020-21 from Rs 3,718 Lacs in FY 2019-20, an increase of 0.46%.

Export Market continued to face severe headwinds and coupled with volatile currency fluctuations impacted export revenue in FY2020-21.

Despite reduction in sales by 5% due to challenging pandemic situation, Company achieved EBITDA of Rs 7,208 Lacs, which is highest ever in the history of Company. EBITDA margin has increased by approx. 100 bps to 12.50%. Similarly PBT of Rs 5319 Lacs is highest ever in the history of Company.

As a part of its cost control measure Company has commissioned two solar power plants at its units situated at Daman and Palsana in September, 2020 which would help the Company in conservation of energy and cost rationalisation. During the previous year i.e. FY 2019-20, Company had received interest assistance of Rs 384 Lacs under the "Scheme for Assistance for Plastic Industry" of Gujarat Government towards borrowing for investment in Palsana Plant which was netted off in Finance cost. The remaining assistance of Rs. 116 Lacs which was supposed to be received in FY 2020-21, is not yet received inspite of submission of claim.

Due to lockdown/COVID-19 impact, the eligible export incentive to be received from DGFT by way of advance license/MEIS incentive was reduced by Rs 300 Lacs in FY 2020-21.

Huge volatility in Polymer prices were experienced during Q3 and most of the part of Q4. Polymer prices hit multiyear high due to shortage issues. Similarly other input prices too escalated. The freight cost in export segment continued to be at all time high. Company in initial phase decided to partially absorb price increase and gradually passed it on to the customers. Due to timely action initiated Company had successfully minimized the impact of aforesaid issues.

However despite all these challenges profitability of the Company is on rise which demonstrate that the strategic steps taken by Company in past several years to have financial strength, to change its product mix and move to more value added products and effective cost rationalisation exercises at all level are yielding positive results. Various product family namely Additive, Black, Colour achieved highest ever sales value in history of Company.

In past several years, Company had adopted technological advancement in timely manner and done digitisation which has helped us overcome the challenges faced during COVID-19.

Due to slowdown in economic activity caused by COVID-19 pandemic large number of manufacturing companies had to cut down on workforce or employees had to face pay cuts or work without pay, which further compounded their difficulties. It is with great pride we would like to mention that despite challenging times, Company not only paid 100% of Salary to all of its employees whether they were working from home or not working at all, but also gave increment to ensure that employees morale remains high and they are able to take care of themselves and their families. Medical insurance with enhanced amount was extended to cover family members of all the employees and Company took Group Term Life (GTL) Insurance policy for all its employees by which all its employees are covered with sum assured upto 1 time of their respective CTC Salary or Rs 10 lacs whichever is higher. The said Sum Assured is payable on death, which gives financial support to family in case of untimely death. In order to extend support for COVID-19 employees were also covered under "Home Care Treatment Plan". Here it would be noteworthy to point that Shri Satyanarayan G. Kabra, CMD and Shri Varun S. Kabra, VCMD has foregone their increment since last two years and had also relinquished their remuneration for the month of April, 2020 which was indicative of their sensitivity towards issues faced by employees.

The Company also believes in returning back to society and as a part of its CSR initiative Company had contributed Rs 100 Lacs to "PM CARES FUND" during March, 2020 and in FY 2020-21 has also provided ventilators to state agencies and contributed to the project in which meal was served to affected communities during the difficult period of COVID-19 pandemic.

Companys outlook is very optimistic considering Indian economy is eyeing "V" Shaped recovery. The "Make In India / Atmanirbhar Bharat" initiative supported by "Production Linked Incentive" will help several sectors to grow substantially to whom Company is serving. Company is confident about its growth trajectory in time to come as it has several products in pipeline, eyeing new geographies /new customers supported by consistent strong financial ratios.

Your Company has significantly grown after each challenges be it demonetization, introduction of GST and E Way bill, Plastic bag ban etc. We are confident that we will further strengthen ourselves as all necessary measures in terms of mitigating the impact of COVID-19 pandemic are taken.

3 Dividend and Dividend Distribution Policy

The Board of Directors have recommended dividend of Rs 4.00 per share i.e. @ 80 % for the year ended 31st March, 2021. The total outflow amounts to Rs 1,039.57 Lacs (Previous year the Company has paid dividend of Rs 3.75 per share i.e. @ 75 % and the total outflow inclusive of DDT was Rs 1,174.92 Lacs.) In terms of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosures Requirements) Regulations, 2015 ("Listing Regulations") the Board of Directors of the Company has formulated and adopted the Dividend Distribution Policy (DDP). The Board of Directors while taking decision for recommendation of the dividend will take guidance from this policy and would ensure to maintain a consistent approach to dividend pay-out plans. The Dividend Distribution Policy is available on the Companys website

4 Transfer To Reserves

The Board of Directors have decided to retain the entire amount of profits for FY 2020-21 in the Profit & Loss Account.

5 Transfer to IEPF of Equity Shares and Unclaimed Dividend

In terms of the provisions of Section 125 of the Companies Act, 2013 read with the Companies (Declaration and Payment of Dividend) Rules, 2014, all unclaimed / unpaid dividend up to FY 2012-13 amounting to Rs 7,22,858/- has been transferred to the Investor Education and Protection Fund and unclaimed / un-encashed dividend for the FY 2013-14 is due for transfer to IEPF in November, 2021. In compliance with the applicable Rules and after complying with the requisite formalities, Company will be transferring requisite applicable Equity shares to the designated demat account of IEPF

Authority. The details of the shareholders whose shares are liable to be transferred to IEPF can be accessed at Companys website viz.,

6 Directors

During the year under review Shri Shreevallabh G. Kabra, stepped down from the position of Chairman of the Company due to his preoccupation with other responsibilities and continues to be Director of the Company. The Board of Directors place on record their deep sense of gratitude and appreciation for the invaluable contribution rendered Shri Shreevallabh G. Kabra during his role as Chairman of the Company. Shri Satyanarayan G. Kabra was elected as Chairman of the Company. Shri Varun S. Kabra was elevated to the position of Vice-Chairman of the Company.

Shri Varun S. Kabra, Director of the Company will retire by rotation at the ensuing Annual General Meeting and being eligible offers himself for re-appointment.

A brief resume of the Directors seeking appointment/re-appointment at the forthcoming AGM and other details as required to be disclosed in terms of Regulation 36(3) of the Listing Regulations and Secretarial Standard on General Meetings (SS-2) forms part of the Notice calling the AGM.

7 Board Independence

Based on the confirmation/disclosures received from the Independent Directors and on evaluation of the relationships disclosed, the following Non-Executive Directors are Independent in terms of Regulation 16 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 149 (6) of the Companies Act, 2013; 1) Shri Pushp Raj Singhvi 2) Shri Sudarshan K. Parab 3) Shri Bajrang Lal Bagra 4) Shri Rahul R. Rathi 5) Smt Meena S. Agrawal

8 Annual Evaluation By The Board

In compliance with the Companies Act, 2013 and Regulation 19 read with Schedule II of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, the Board has carried out the annual performance evaluation of its own performance, the Directors individually as well as the evaluation of Committees. A structured questionnaire was prepared after taking into consideration inputs received from the Nomination and Remuneration Committee members, covering various aspects of the Boards functioning such as adequacy of composition of Board and Committees, Board communication, timeliness and unbiased information of right length and quality of information, Board culture, execution and performance of specific duties, obligations and governance.

A separate exercise was carried out to evaluate the performance of individual Directors including the Chairman of the Board, who were evaluated on parameters such as attendance and participation in the discussion and deliberation at the meeting understanding role and responsibilities as board member, demonstration of knowledge, skill and experience that make him/her a valuable resource for the board. The performance evaluation of the Independent Directors was carried out by the entire Board. The performance evaluation of the Chairman and the Non-Executive Directors was carried out by the Independent Directors. The Directors expressed their satisfaction with the evaluation process.

9 Familiarisation Programme For Independent Directors

The Company conducted familiarisation programme for Directors during the year. The programme aims to provide insights into the Companys business and familiarise Directors with its various aspects and assist them in performing their role as Independent Director. The Companys policy on conducting the familiarisation program has been disclosed on the website of the Company at /PLASTIBLENDS-FAMILIARISATION-PROGRAMME.pdf

10 Number Of Board Meetings

During the year, 4 (four) meetings of the Board of Directors were held. The details of the Meetings are furnished in the Corporate Governance Report which forms part of this Annual Report.

11 Audit Committee

The details pertaining to composition of Audit Committee are included in the Corporate Governance Report which forms part of this report.

12 Directors Responsibility Statement

Pursuant to Section 134 of the Companies Act, 2013, your Directors hereby confirm that

(i) in the preparation of annual accounts for the year ended 31st March, 2021, the applicable Accounting Standards had been followed along with proper explanation relating to material departures;

(ii) the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give the true and fair view of the state of affairs of the Company as at end of the Financial Year ended on 31st March, 2021 and of the profit and loss of the Company for the said Financial Year; (iii) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; (iv) the Directors had prepared the annual accounts on a "going concern basis"; (v) the Directors had laid down Internal Financial Controls to be followed by the Company and such Internal Financial Controls are adequate and were operating effectively; (vi) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and such systems were adequate and operating effectively.

13 Credit Ratings

During the year, credit rating agency CRISIL has reaffirmed CRISIL A + / Stable (Long Term Rating) and CRISIL A1 (Short Term Rating) ratings to the Bank loan facilities availed by the Company.

14 Nomination And Remuneration Policy (NRP)

The NRP of the Company for Directors, Key Managerial Personnel (KMP) and Senior Management Personnel is hosted on the website of the Company at the following web link : PLASTIBLENDS-NRC.pdf Disclosure pertaining to remuneration and other details as required under section 197 (12) of the act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is enclosed as particulars of employee which forms part of this report.

15 Vigil Mechanism/Whistle Blower Policy

In compliance with the provisions of Section 177(9) the Board of Directors of the Company has framed the "Whistle Blower Policy" as the vigil mechanism for Directors and employees of the Company. The Whistle Blower Policy is disclosed on the website of the Company at

16 Prevention Of Insider Trading

The insider trading policy of the Company lays down guidelines and procedures to be followed and disclosures to be made while dealing with the shares of the Company. The policy has been formulated to regulate, monitor and ensure reporting of deals by designated person/employees and maintain the highest ethical standards of dealing in Company securities.

17 Internal Financial Controls

The Internal Financial Controls with reference to financial statements as designed and implemented by the Company are adequate. During the year under review, no material or serious observations has been received from the Auditors of the Company for inefficiency or inadequacy of such controls.

18 Maintenance of cost records

As specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, the Company has maintained cost accounts and records.

19 Risk Management

Risk Management Committee has been constituted as per the requirement of Regulation 21 of the Listing Regulations. The details pertaining to its Composition and meetings are set out in the Corporate Governance Report forming part of this Report. The policy on Risk Management Policy which aims at enlarging shareholders value and providing an optimum risk reward trade off, is uploaded on the Companys website

20 Corporate Governance

As required by Regulation 27 of the Listing Regulation, a Report on Corporate Governance is appended along with a Certificate of Compliance from the Auditors, forming part of this report. The Board of Directors of the Company adopted the Code of Conduct and the same is posted on the Companys website. The Directors and Senior Management personnel have affirmed their compliance with the said code.

21 Related Party Transactions

All contracts/arrangements/transactions entered by the Company during the Financial Year with related parties were in the ordinary course of business and on an arms length basis. During the year, the Company has not entered into any contract / arrangement / transaction with related parties which could be considered material in accordance with the policy of the Company on materiality of related party transactions.

The Policy on materiality of related party transactions and dealing with related party transactions as approved by the Board may be accessed on the Companys website at the link: Your Directors draw attention of the members to Notes on financial statement which sets out related party disclosures.

22 Auditors

Statutory Auditors

M/s. Kirtane & Pandit LLP, Chartered Accountants, Pune, were appointed as Statutory Auditors for a term of 5 (five) consecutive years in the 28th AGM held on 27th July. 2019 and hold office upto 33rd AGM to be held in the year 2024. The notes on financial statements referred to in the Auditors Report are self-explanatory and do not call for any further comments. The Auditors Report does not contain any qualifications, reservation or adverse remark.

Cost Auditor

In terms of section 148 of Companies Act, 2013 read with Companies (Audit and Auditors) Rules, 2014 and other applicable provisions, if any, of the Companies Act, 2013, the Board of Directors of your Company has appointed M/s. Urvashi Kamal Mehta & Co, Cost Accountants as the Cost Auditor of your Company to conduct audit of Cost Accounting records for Financial Year 2021-22 on the recommendation made by the Audit Committee.

The remuneration proposed to be paid to the Cost Auditors, subject to the ratification by the Members at the ensuing Annual General Meeting would be Rs 1,32,000/- (Rupees One Lac Thirty Two Thousand Only) excluding applicable statutory taxes, conveyance and out of pocket expenses, if any.

Secretarial Auditor

As required under provisions of section 204 of the Companies Act, 2013, the report in respect of the Secretarial Audit carried out by M/s. Bhandari & Associates, Company Secretaries, in Form MR-3 for the FY 2020-21 form part of this report.

As regards the observations mentioned in the Secretarial Audit Report we wish to clarify that Company had contributed

Rs 100 Lacs to "PM CARES FUND" in FY 2019-20 as a token of our support to combat COVID-19 pandemic in the hour of dire necessity inspite of fulfilling the mandatory CSR obligation of the Company for that financial year which was allowed to be carried forward and setoff against any shortfall in subsequent financial years, accordingly the Company has setoff the excess amount. As regards the registration of independent directors in databank, appropriate steps are being taken to get the registration.

23 Corporate Social Responsibility (CSR)

The Report on CSR activities as required under Companies (Corporate Social Responsibility) Rules, 2014, including a brief outline of the Companys CSR Policy, total amount to be spent under CSR for the Financial Year and amount spent is set out at CSR statement forming part of this Report.

24 Business Responsibility Report (BRR)

Pursuant to Regulation 34(2)(f) of the Listing Regulations, the Business Responsibility Report initiatives taken from an environmental, social and governance perspective in the prescribed format is available as a separate section of this Annual Report.

25 Web link Of Annual Return

Pursuant to the provisions of section 134(3)(a) of the Companies Act, 2013, web link of the Annual Return for the Financial Year ended March 31, 2021 made under the provisions of section 92(3) of the Act is placed at

26 Material Changes

There have been no material changes and commitments, if any, affecting the financial position of the Company which have occurred between the end of the Financial Year of the Company to which the financial statement relate & the date of the report.

27 Particulars Of Loans, Guarantees, Investments

The particulars of loans, guarantees and investments given/made during the Financial Year under review and governed by the provisions of Section 186 of the Companies Act, 2013 have been disclosed in the financial statements.

28 Conservation Of Energy, Technology Absorption And Foreign Exchange Earnings & Outgo

The particulars relating to conservation of energy, technology absorption, foreign exchange earnings and outgo, as required to be disclosed under the Act, forms part of this report.

29 Deposits

During the year under review, your Company did not accept any deposits in terms of Section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposit) Rules, 2014.

30 Significant & Material Court Orders

No significant and material orders have been passed by any Regulator or Court or Tribunal which can have an impact of the going concern status and the Companys operations in future.

31 Disclosure Under The Sexual Harassment Of Women At Workplace (Prevention, Prohibition And Redressal) Act, 2013

The Company pursuant to the Section 4 of the Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013 has constituted an Internal Complaints Committee. During the year, no complaint was lodged with the Internal Complaint Committee.

32 Particulars Of Employee And Related Disclosures

In terms of the provisions of Section 197 (12) of the Act read with Rules 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a statement showing the details required therein forms part of this report.

The statement containing names of top ten employees in terms of remuneration drawn and the particulars of employee as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is provided in a separate annexure forming part of this report. Further, the report and account are being sent to the members excluding aforementioned annexure. In terms of Section 136 of the Act, the said annexure is open for inspection at the Registered office of the Company. Any shareholder interested in obtaining a copy of the same may write to the Company Secretary.

33 MD & CFO Certification

Certificate from Managing Director and Chief Financial Officer of the Company, pursuant to the Regulation 17 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, for the Financial Year 2020-21 under review was placed before the Board of Directors of the Company at its meeting held on May 20, 2021.

34 Secretarial Standard

The Company complies with all applicable Secretarial Standards issued by The Institute of Company Secretaries of India and approved by the Central Government under Section 118(10) of the Companies Act, 2013 for the Financial Year ended 31st March, 2021.

35 Acknowledgement

Your Directors would like to express their appreciation for the assistance and co-operation received from the Shareholders, Bankers, Government Authorities, Export Promotion Council, Other Semi Government Authorities, Stock Exchanges, Customers, Dealers, Suppliers and Business Associates at all levels during the year under review. Your Directors also wish to place on record their appreciation for the committed services of the executives, staffs and workers of the Company.

For and on behalf of the Board
Place : Mumbai Satyanarayan G. Kabra
Date : May 20, 2021 Chairman & Managing Director
(DIN : 00015930)