Mar 31, 2010
The directors are pleased to present herewith the Eighteenth Annual
Accounts of your Company for the financial year ended March 31, 2010.
PART I
FINANCIALS
Rupees
PARTICULARS 2009-2010 2008-2009
Sales and other income 37374062 256400303
Expenditure 34297746 258615471
Depreciation&W/off 4594433 4458123
Profit before Interest,
W/off&Depreciation 6235814 775988
Profit before Tax -1518117 -6673291
(Short)/Excess ProvisionofCurrent
Tax of earlier year 155775 0
Provision for Taxation :
Current tax 0 0
Deferred Tax Liability/Asset 1925440 -3619491
Fringe benefit Tax 0 74896
Profit after Tax 563098 -3128696
Cash Profit after Tax 5157531 1329427
PERFORMANCE
Almost every business, every individual has been impacted in these
times and your company is no exception to it. This is the time for us
to show our strength and what we can achieve. We have worked harder and
smarter now more than ever. The true spirit is founded on our
enthusiasm, cost consciencness, willingness to assume responsibility
and the Will to ensure that we succeed. Your company backed by a list
of Multinationals and Indian Corporate Giants and remarkable processing
talents was able to face those challenges by bolstering talent and cost
effective plans across the company.
Your Directors have to state that during the year ended March 31, 2010
your Company has not been able to maintain its growth history. The
World Economic Crisis and the slump in the global market had put the
Industry in a very bad situation. Your directors have to further state
that in spite of the slump in global market, the Indian scenario was a
shade better. In these difficult times your Company managed to float
and avert the crisis to the best ability of your Directors. Our main
customers are related to the Automobile and Electrical Industry. Both
these sectors were in the red since the global and the domestic market
was low. There was panic in the Industry too. The company managed to
control the overheads to offset the lower revenue, increase in prices
of electricity & labour costs.
FUTURE GROWTH OPPORTUNITIES - DIVERSIFICATION
The current business scenario of Toll Compounding of Engineering
Polymers is still quite good; however the returns are disproportionate.
We are one of the oldest Companies in the field of Engineering
Polymers. Our Processing facilities and capabilities are
state-of-the-art; so as to produce Quality material.
Thus as a business decision, we have identified 2 lines of activity.
Engineering Polymers Mosquito Bed Nets à ITNs & Untreated
You will be happy to note that on a detailed analysis, all the relevant
factors are in our favour thus justifying our decision.
With this proposed line of business activity, your Directors are
hopeful and optimistic of generating additional revenues at a higher
rate than the existing line of activity. Moreover, the demand for this
product will never be in slump due to the sheer size of the Market.
Moreover, the domestic Market itself is quite large.
The existing expanded scale of our operations, future developments, low
overheads, and qualities of products matching with International
Standards are our inherent strengths. This in turn continues to give us
unparalleled platform to be more competitive. We are focused to deliver
superior values to customers, ensuring International qualities for all
the products and services.
PART II
CORPORATE GOVERNANCE
Your Company has maintained highest standards of Corporate Governance
since its inception, even before any guidelines were mandated. Your
Company believes that good corporate governance practices enable the
management to direct and control the affairs of the Company in an
efficient manner and to achieve the goal of achieving excellence aimed
at maximising value for all shareholders and understands the right to
information of its shareholders with respect to the performance of the
Company. Company will continue to focus its resources, strengths and
strategies to achieve its vision of widening its customer base, while
upholding the core values of transparencies, integrity, honesty and
accountability, which are fundamentals.
Your Board has implemented the necessary actions as per the Report
annexed herewith (Annexure I). The Auditors have examined the
Compliance and have certified the same as required by Clauses of the
Listing Agreement. The Certificate is also annexed herewith (Annexure
II)
Management Discussion and Analysis Report covering a wide range of
issues relating to outlook, performance & prospects is annexed herewith
(Annexure III).
SECRETARIAL AUDIT
As directed by SEBI, Secretarial Audit is being carried out at the
specified periodicity by the Statutory Auditors. The findings of the
Audit were entirely satisfactory.
ISO CERTIFICATION
Company has obtained the ISO 9001-2008 Certification.
DIRECTORSÃ RESPONSIBILITY STATEMENT
Pursuant to requirement under Section 217(2AA) of the Companies act,
1956, it is hereby confirmed that:
In the preparation of the annual accounts for the financial year ended
March 31, 2010, the applicable accounting standards have been followed
along with proper explanations relating to material departures.
The Directors have selected such accounting policies and applied them
consistently and made judgements and estimates that were 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 and of the profit for the
year under review.
The Directors have taken sufficient and proper care for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
The Directors had prepared the Annual Accounts on a going concern
basis.
AUDITORS
M/s Shah & Bhandari, Chartered Accountants, Baroda, the present
Auditors retire at the conclusion of the ensuing Annual General
Meeting. Being eligible, they have offered themselves for
reappointment.
AUDITORSÃ REPORT
With reference to the Auditorsà Report, the Notes to the Account are
self explanatory and therefore do not call for any further comments
under section 217 (3) of the Companies Act, 1956.
DIRECTORS
Reappointment
. In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. B.B.Patel retire by
rotation at the ensuing Annual General Meeting of the Company and being
eligible, offers himself for reappointment. Your Directors recommend
his reappointment
. In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. A.G.Thakore retire by
rotation at the ensuing Annual General Meeting of the Company and being
eligible, offers himself for reappointment. Your Directors recommend
his reappointment
FIXED DEPOSITS
The company did not invite / accept / renew any fixed deposits during
the year under review.
DIVIDEND
Your Directors do not recommend any Dividend in the current year in
view of brought forward losses.
INSURANCE
All the Assets of the Company are adequately insured against Fire,
Floods, Riots and natural calamities. The sum insured are adequate as
per the current norms.
TAXATION
Pursuant to the provisions of Sec. 43B of the Income Tax Act, 1961 the
Company is required to provide for Deferred Tax Liability. As per the
revised provisions of Sec. 43B, the deferred tax liability for the year
has reduced and the same is adjusted in the Profit & Loss Account.
COMPLIANCES
The Company is generally regular in making all Statutory Compliances.
INVESTOR RELATIONS
All Investor complains received during the year have been suitably
disposed off. There were no Investor grievances pending as at date.
PARTICULARS OF EMPLOYEES
The Industrial relations in the Plant and Office continues to be
cordial, harmonious and peaceful.
Your directors like to place on record their appreciation of
contribution made by the employees at all levels, their steadfastness,
solidarity, co-operation and support have made it possible for the
company to grow. Employees continue to remain our major asset, in our
continuing endeavour in the pursuit for excellence.
Information required under Section 217 (2A) of the Companies Act 1956
read with the Companies (Particulars of employees) Rules 1975, has not
been given as the same is not applicable.
FOREIGN EXCHANGE EARNING
The Company has not earned any Income on Revenue or Capital Account
during the year.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
EARNING & OUTGO
During the year, your Directors have focused their approach on the
efficiency in Consumption of Power.
The particulars prescribed under the Companies (Disclosure of
particulars in the Report of Board of Directors) Rules 1988 are as
under:
Power&Fuel Consumption - Electricity 2009-2010 2008-2009
Purchased Quantity units 697669 611336
Amount Rs. 4017053 3579270
Rate / unit Rs. 5.76 5.85
Production Quantity M.T. 1801.561 1786.031
Total Power Cost Rs. 4031048 3579720
Power Cost per Kg. of Production Rs. 2.24 2.00
The Power cost per kg of Production has increased from Rs. 2.00 to Rs.
2.24 due to increase in Basic Rate per unit of Power.
ACKNOWLEDGEMENT
Your Directors would like to express their gratitude & appreciation for
the assistance and co-operation received from Bank of Baroda,
Government Authorities, Business Associates, and Share Holders during
the year under review.
Your directors wish to place on record the deep sense of appreciation
for the devoted services of the Executives, Staff and Workers of the
Company for its success. The Company believes that the Employees are
its biggest assets.
For and on Behalf of the Board
Place: Mokshi B.K.BODHANWALA
Dated: 01.08.2010 CHAIRMAN