Mar 31, 2015
The Directors have pleasure in presenting their 31st Annual Report
together with the Audited Accounts and Cash Flow Statements for the
year ended 31st March 2015.
The financial results for the year ended 31st March 2015 are summarized
Below.
(Rs. in Lakhs)
Particulars 2014-15 2013-14
Income from operations 183.27 2277.50
Gross Profit (-) 1369.01 36.50
Interest 145.12 214.62
Depreciation 21.86 30.91
Profit/(Loss) before taxation (-)1535.99 (-)209.04
Deferred Tax(Liability)/Asset (-) 18.66 48.74
Current tax - -
Net Profit/(Loss)After Taxation (-)1554.65 (-) 160.29
Balance brought forward 20.56 180.85
Balance carried to
Balance Sheet (-) 1534.09 20.56
1. Operations
The overall performance of the Company in terms of sales and turnover
has been low in comparison with the previous year. During the year the
under report the Company has incurred net loss of Rs 1554.65 Lakhs in
comparison with net loss of Rs 160.29 Lakhs in the previous year.
During the year the operations continued during the first quarter only
and the production recorded was 99 MTs. Since the production was
suspended with effect from 15th July 2014, the production figures and
capacity utilization figures are not comparable with the previous year.
The production was suspended due to increase in the prices of raw
mateiral and fall in the selling price of the finished goods due to
stiff competitions.
2. Erosion of Networth:
As on 31.03.2015 the net worth of the Company is 100% eroded and
Company has become sick company under the provisions of the Sick
Industrial Companies(Special Provisions) Act, 1985 (SICA). The Company
would take steps to file report to the Board for Industrial and
Financial Reconstruction (BIFR) in terms of the provisions of SICA.
3. Future Outlook
The Company is exploring options for revival including sale of the
undertaking. The update status will be informed to the shareholders.
4. Disclosure as per Listing Agreement :
Clause 43 :
The Company's shares are listed on the Bombay Stock Exchange Ltd., P J
Towers, Dalai Street, Fort, Mumbai . It is further informed that the
listing fees for the year 2015-2016 has not been paid to the exchange
due to shortage of funds and stoppage of operations.
5. Meetings of the Board of Directors :
During the year ended March 31st 2015, Six Board Meetings were held.
The dates on which the Board Meetings were held are 29.05.2014,
14.08.2014, 26.09.2014,11.11.2014,09.02.2015 and 30.03.2015.
6. Statement on Declaration given by Independent Directors under
Section 149(6)
The Independent Directors have submitted the declaration of
independence as required pursuant to Section 149(7) of the Companies
Act, 2013 stating that they meet the criteria of independence as
provided in Section 149(6).
7. Nomination and Remuneration Committee
The Nomination and Remuneration Committee consists of the following
directors namely Sri K Goapl, Sri N S B Reddy and Sri N V S Rao.
Brief description of terms of reference :
a) Carry on the evaluation of every director's performance.
b) Formulation of criteria for determining qualification, positive
attributes and independence of a Director.
c) Recommend policy to the Board relating to remuneration of the
directors, key managerial personnel and other employees.
d) Devising a policy on board diversity
e) Any other matter as the board may decide from time to time.
Nomination and Remuneration Policy :
The objective of the policy :
a) Lay down criteria and terms and conditions with regard to
identifying persons who are qualified to become Directors and persons
who may be appointed as key managerial persons and to senior management
positions.
b) To provide reward directly linked to their effort, performance,
dedication and achievement relating to company's operations.
c) To retain, motivate, promote talent to ensure long term
sustainability of talented managerial persons and create competitive
advantage.
d) Determine remuneration based on company's size and financial
positions and trends and practices.
8. Particulars of Loans, Guarantees and Investments under Section 186
The Company has not given any loan, or guarantee, or provided any
security in connection with a loan to any other body corporate or
person during the financial year.
9. Particulars of contracts or arrangements with related parties
referred to in Section 188(1) :
The particulars of contracts or arrangements with related parties
referred to Sec 188(1) is prepared in Form NO. AOC-2 pursuant to Sec
134(3)(h) of the Act and Rule 8(2) of the Companies (Accounts) Rules,
2014 and the same is enclosed as Annexure - 2 to this report.
10. Extract of Annual Return :
The extract of Annual Return is prepared in Form MGT- 9 as per the
provisions of Companies Act, 2013 and Rule 12 of the Companies (
Management and Administration ) Rules, 2014 and the same is enclosed as
Annexure -3 to this report.
11. Corporate Governance
The Company has implemented the Corporate Governance Code during the
year under report. A detailed report is enclosed and forms part of this
Annual Report.
12. Directors Responsibility Statement
The Board of Directors of the Company hereby declares and states that :
a) In the preparation of annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures.
b) the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates 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 31.03.2015 and of the
loss of the Company for the period ended 31.03.2015
c) the 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.
d) the Directors have prepared the annual accounts on a going concern
basis.
e) The Directors had laid down internal financial controls to be
followed by the Company and that such internal financial controls are
adequate and were operating effectively..
f) The Directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
13. Energy, Technology and Foreign Exchange
Additional information on conservation of Energy, Technology Absorption
and Foreign Exchange Earnings and Outgo as required to be disclosed in
terms of section 134(M) read with Companies (Accounts) Rules 2014 ) is
as per annexure 1 hereto and forms part of this report.
14. Risk Management Committee :
Risk Management Committee consists of the following Directors :
a) Sri K Gopal
b) Sri D R S P Raju
c) Sri D V Prudvi Raju
Risk Management Policy :
The Company has taken steps to mitigate the following risks
Raw Material Price:
Ours is a high volume manufacturing industry wherein the main raw
material is PP / HDPE granules which are available indigenously and by
imports. The raw materials are subject to frequent changes as their
prices depend on petroleum products. The prices are closely monitored
and depending on the requirement the stocks are maintained.
Competition and price pressure :
Our being a packing industry there are many players and there is severe
competition and price cutting indulged by competitors. Action of one
player is followed by other to either increase market share or offer
low price to retain the volumes.
Foreign Currency Risks:
The Company's exposure to foreign currency is low. Majority purchase
of raw materials through domestic market. The export volumes are low.
The impact of foreign exchange fluctuation is almost negligible
considering the volume of transactions in foreign currency.
15. Statutory Auditors
The Company, in terms of Section 139(1) and (2) of the Act 2013, is
required to appoint statutory auditors for a term of five consecutive
years i.e. till the conclusion of sixth annual general meeting and
ratify their appointment, during the period, in every annual general
meeting by an ordinary resolution.
The period for which any firm has held office as auditor prior to the
commencement of the Act 2013 will be taken into account for calculating
the period of five consecutive years, as per the fourth provision to
Section 139(2) of the Act 2013 read with Rule 6(3) of the Companies (
Audit and Auditors ) Rules, 2014.
M/s M.Bhaskara Rao & Co., Chartered Accountants, Hyderabad who were
earlier appointed as statutory auditors of the Company, at the annual
general meeting held on 26th September, 2014, are eligible to be
appointed for the remaining period of three years out of the first term
of five consecutive years in terms of the Act 2013.
The Company has obtained necessary certificate under Section 141 of the
Act 2013 from the auditor conveying their eligibility for the above
appointment. The audit committee and board reviewed their eligibility
criteria, as laid down under Section 141 of the Act 2013 and
recommended their appointment as auditors for the aforesaid period.
16. Board of Directors
Sri K Gopal, Director is liable to retire by rotation at this Annual
General Meeting and being eligible, offers him for re-appointment.
Sri N S B Reddy, Director ceased to be Director of the Company with
effect 29.05.2015 consequent upon his resignation.
Sri N V S Rao, Director is liable to retire by rotation at this Annual
General Meeting and being eligible, offers him for re-appointment.
Sri D R S P Raju, Director who ceased to be Managing Director and
continued to be Director, his appointment as Director liable to
retirement by rotation is being placed for approval of the members at
the meeting.
Re-appointment of Sri D V Prudvi Raju, Whole Time Director is proposed
at the ensuing Annual General Meeting since his term expired on
08.02.2015.
17. Directors and Key Management Personnel who were appointed or have
resigned during the year
Sri K Gopal, Sri N S B Reddy and Sri N V S Rao were appointed as
independent directors to hold office for a term of 5 years at the
Annual General Meeting held on 26.09.2014.
Sri D R S P Raju, Managing Director resigned as Managing Director at
the Board Meeting held on 14.08.2014 however he continues to be
Director.
Kum. R Rama Devi was appointed as Additional Director ( independent
Women Director ).
18. Secretarial Audit Report
Copy of the report of Sri V.B.S.S Prasad, Practicing Company Secretary
(CP No : 4605) for the year under report in Form MR-3 is attached as
Annexure 4 to this report. There are no qualifications in the
Secretarial Report.
19. Particulars of appointment and remuneration of Managerial Personnel
:
The statement of particulars of Appointment and Remuneration of
Managerial Personnel in terms of Rule 5 of Companies ( Appointment and
Remuneration of Managerial Personnel ) Rules , 2014 is enclosed as
Annexure 5 to this report.
20. Insurance :
All properties and insurable interests of the Company including
building, plant and machinery and stocks have been fully insured.
21. Change in nature of Business :
There is no change in the Companies nature of business during the
financial year ending 31.03.2015 except that the production /
operations continues to be suspended since 15th July 2014.
22. Internal Control System and their adequacy :
Considering the size of business and nature of operations and internal
control systems and procedure adopted and reviewed periodically by the
Board and Audit Committee the existing control systems are adequate.
23. Significant and Material orders passed by
Regulators : No such orders have been received during the year under
report.
Material changes and commitments :-
There are no material changes and commitments in the business
operations of the Company during the year under report except that the
production continues to remain suspended since 15th July 2014.
24. Policy on Sexual Harrasment :
The Company has no women employee in the employment of the Company. The
Company is in the process of framing and formulating policy on sexual
harassment at workplace in accordance with Sexual Harassment of Women
at workplace ( Prevention, prohibition and Redressal ) Act, 2013.
During the year under report the Company has not received any
complaints pertaining to Sexual Harassment.
25. Acknowledgements
The Board expresses its grateful thanks to the State Bank of India,
State Bank of Hyderabad, various departments of the State and Central
Government, customers, vendors and shareholders for their valuable
support to the company, staff and employees.
On behalf of the Board.
for DECCAN POLYPACKS LIMITED
Place : Hyderabad D V. Prudvi Raju
Date:29.05.2015 Whole Time Director
Mar 31, 2013
The Directors have pleasure in presenting their 29th Annual Report
together with the Audited Accounts and Cash Row Statements for the year
ended 31st March 2013.
The financial results for the year ended 31st March 2013 are summarized
below.
(Rs. in Lakhs)
Particulars 2012-13 2011-12
Income from operations 2760.87 3208.05
Gross Profit 267.37 264.96
Interest 218.86 200.48
Depreciation 30.71 30.20
Profit/(Loss) before taxation 17.80 34.28
Deferred Tax(Liability)/Asset 5.42 9.02
Current tax (3.39) (6.53)
Net Profit/(Loss)After Taxation 19.83 36.77
Balance brought forward 161.02 124.25
Balance carried to
Balance Sheet 180.85 161.02
Operations
The overall performance of the company in terms of sales and turnover
has been lower than the previous year. During the year the company has
recorded production of 2010 MTs (previous year 2638 MTs). The
production has been low in the year under report due to frequent power
cuts'' leading to loss of production for almost 3 months. This has also
affected the capacity utilization. The Company has recorded capacity
utilization of 65.62% in comparison with the previous year 86.12%. The
Company has focused in local sales hence has not recorded any exports.
The realization on sales during the year under report has marginally
improved for woven sacks and fabric. The Company has recorded lower
net profit of Rs. 19.83 lakhs as against Rs. 36.77 Lakhs in the
previous. The company continued its efforts to reduce costs wherever
possible to improve its overall performance. The company is hopeful of
achieving improved performance in the coming years provided there is no
disturbance on account of power supply and other factors. The company
has made alternate arrangements to ensure continous and uninterrupted
power supply by installing DG sets and supply through private
companies.
Future Outlook
The power situation has not shown any improvement during the current
year and the power crises is expected to continue. The Company is
exploring the possibilities of purchasing power from Private Companies
to mitigate the shortfall in power availability and ensure continous
production. The raw material prices are expected to remain stable and
continue at the same levels as previous year, The Government is making
efforts to boost the construction activity by taking up various
infrastructure projects and announcing various schemes to provide for
housing to the economically weaker sections.Such actions would boost
the production of cement and its requirement for its packing. The
company mainly caters to the packing requirements of the Cement and
Fertilizer industries whose operations has been affected due to present
recessionary market conditions. The company has drawn strategic plans
to strike balance between the domestic and export market to ensure
improvement in performance in future.
Disclosure as per Listing Agreement: Clause 43:
The company''s shares are listed on the Bombay Stock exchange Ltd., P J
Towers, Dalai Street, Fort, Mumbai. It is further informed that the
listing fees for the year 2013-2014 has been paid to the exchange.
Corporate Governance
The company has implemented the Corporate Governance Code during the
year under report. A detailed report is enclosed.
Directors Responsibility Statement
In terms of the provisions of Section 217 (2 A A) of the Companies Act,
1956 it is stated that:
(a) in the preparation of annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures.
(b) the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates 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 and of the profit of
the company for that period.
(c) the 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.
d) the Directors have prepared the annual accounts on a going concern
basis.
CRISIL RATING
Your company has been accredited with Crisil B / Stable/ Crisil A4
rating to the Company for the facilities availed from the Bank.
Energy, Technology and Foreign Exchange
Additional information on conservation of Energy, Technology Absorption
and Foreign Exchange Earnings and Outgo as required to be. disclosed in
terms of section 217(l)(e) of the Companies Act, 1956 as amended by the
Companies (Disclosure of particulars in the report of the Board of
Directors) Rules, 1988 is annexed hereto and forms part of this report.
Particulars of Employees
There is no employee in the company coming under the provisions of
section 217(2A) of the Companies Act, 1956 read with Companies
(Particulars of Employees) Rules 1975 as amended.
Auditors
M/s Bhaskara Rao & Co. Chartered Accountants, the Statutory Auditors of
the company retire at the conclusion of the ensuing Annual General
Meeting and being eligible offer themselves for re-appointment.
Directors
Pursuant to the Provisions of Sections 255 and 256 of the Companies
Act, 1956 Sri K. Gopal Director of the company retires by rotation at
the ensuing Annual General Meeting and being eligible offer himself for
re- appointment.
Secretarial Compliance Certificate
Secretarial Compliance Certificate in terms of section 383 A of the
Companies Act, 1956 is attached and forms part of the report.
Acknowledgements
The Board expresses its grateful thanks to the State Bank of India,
State Bank of Hyderabad, various departments of the State and Central
Government, customers, vendors and shareholders for their valuable
support to the company, staff and employees.
For and on behalf of the Board
G V S Raju D R S P Raju
Director (Commercial) Managing Director
Place: Hyderabad
Date: 30.05.2013
Mar 31, 2010
The Directors have pleasure in presenting their 26th Annual Report
together with the Audited Accounts and Cash Flow Statements for the
year ended 31st March 2010.
The financial results for the year ended 31st March 2010 are summarized
below.
(Rs. in Lacs)
Particulars 2009-2010 2008-2009
Income from operations 3005.09 3330.25
Gross Profit 169.17 198.81
Interest 118.73 136.74
Depreciation 24.92 28.27
Profit/(Loss) before taxation 25.52 33.80
Deferred Tax(Liability)/Asset 27.32 (3.38)
Fringe Benefit Tax - (0.66)
Current tax (3.94) (3.41)
Net Profit / (Loss) After Taxation 48.90 26.35
Balance brought forward 51.11 24.76
Balance carried to Balance Sheet 100.01 51.11
Operations
The overall performance of the company in terms of production has been
higher in comparison with the previous year. During the year the
company has recorded production of 2652 MTs (Previous year 2482 MTs ),
the volume of export sales has been low compared to previous year. The
company has recorded capacity utilization of 86.58 as against 81.03%
recorded in the previous year.
The company recorded income from operations of Rs 3005.09 lacs as
against Rs 3330.25 lacs in the previous year. The company exported
150.54 MTs of its products valued at Rs. 144.30 lacs during the year
under report as against 163 MTs valued Rs. 150.04 lacs in the previous
year. The sales in the domestic market as well as export has reduced
during the year under report. The realisation on sales has been low
during the year under report due to recession and price under cutting
due to steep competition. This is mainly due to slow down in the
construction and infrastructure activities and general recession in the
economy. In spite of such a scenario the company recorded increase in
net profit mainly due to increase in deferred tax asset. The company
has recorded net profit of Rs 48.90 lacs as against Rs. 26.35 lacs in
the previous year. The company has continued its efforts to reduce
costs wherever possible to improve its overall performance. The company
is hopeful of achieving improved performance in the coming years.
Future Outlook
The recessionary trend in the present economic situation especially in
the construction and infrastructure activity has severely affected the
demand for companys products. The company mainly caters to the packing
requirements of the Cement and Fertilizer industries whose growth has
been affected due to present recessionary market conditions. The
Government is making efforts to stabilize the economy by reducing
interest rates, ensuring stability in stock markets announcing certain
other measures to improve the demand position, however it would take
some more time to see the results of the efforts put in by the
Government. Similar is the situation in the export market. The
economies in the Europe, America have been facing similar trends due to
which the orders for exports have declined. The company has drawn
strategic plans to strike balance between. the domestic and
export.market to ensure improvement in performance in future.
Corporate Governance
The company has implemented the Corporate Governance Code during the
year under report. A detailed report is enclosed.
Directors Responsibility Statement
In terms of the provisions of Section 217 (2AA) of the Companies Act,
1956 it is stated that:
(a) in the preparation of annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures.
(b) the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates 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 and of the profit of
the company for that period.
(c) the 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.
(d) the Directors have prepared the annual accounts on a going concern
basis.
CRLS1LRATING:
Your company has been accredited with B/ Stable rating for Cash Credit
Limits and P4 Rating for Non Fund Based borrowing by CRISIL. The Rating
P4 indicates that the degree of safety regarding timely payment on the
instrument is minimal and is likely to be adversely affected by
short-term adversity or less favourable conditions.
Energy, Technology and Foreign Exchange
Additional information on conservation of Energy, Technology Absorption
and Foreign Exchange Earnings and Outgo as required to be disclosed in
terms of section 217(1 )(e) of the Companies Act, 1956 as amended by
the Companies (Disclosure of particulars in the report of the Board of
Directors) Rules, 1988 is annexed hereto and forms part of this report.
Particulars of Employees
There is no employee in the company coming under the provisions of
sectio- 217(2A) of the Companies Act, 1956 read with Companies
(Particulars of Employees ) Rules 1975 as amended, hence not attached.
Auditors
M/s Bhaskara Rao & Co. Chartered Accountants, the statutory Auditors of
the company retire at the conclusion of the ensuing Annual General
Meeting and being eligible offer themselves for re-appointment.
Directors
Pursuant to the provisions of Sections 255 and 256 of the Companies
Act, 1956 Mr. D V R Raju and Mr. N SB Reddy Directors of the company
retire by rotation at the ensuing Annual General Meeting and being
eligible offer themselves for re-appointment.
Secretarial Compliance Certificate
Secretarial Compliance Certificate in terms of section 383 A of the
Companies Act, 1956 is attached and forms part of the report.
Acknowledgements
The Board expresses its grateful thanks to the State Bank of India,
State Bank of Hyderabad, various departments of the State and Central
Government, customers, vendors and shareholders for their valuable
support to the company, staff and employees.
For and on behalf of the Board
G V S Raju D R S P Raju
Director (Commercial) Managing Director
Place : Hyderabad
Date : 31.05.2010
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