Mar 31, 2018
To,
The Members,
Flexituff International Limited
The Board of Directors hereby presents its 25th Directorâs Report on business & operations of your Company (âthe Companyâ or âFILâ) alongwith Audited Financial Statements (Standalone & Consolidated) for the financial year ended 31st March, 2018.
FINANCIAL RESULTS
The Companyâs Financial Performance for the year ended 31st March, 2018 is summarized below:
FINANCIAL RESULTS AND APPROPRIATION (Rs. In Millions)
Particulars |
Standalone |
Consolidated |
||
2017-18 |
2016-17 |
2017-18 |
2016-17 |
|
Sales & other Incomes |
11,866.09 |
13,418.48 |
12,622.82 |
14,679.13 |
Profit before Interest, Depreciation & Tax |
1,861.38 |
1,844.35 |
1,859.43 |
1,842.11 |
Profit before Tax |
9.07 |
75.64 |
(14.07) |
49.83 |
Profit for the year / Balance available for Appropriation |
(23.44) |
73.98 |
(43.32) |
41.64 |
Other Comprehensive Income |
4.46 |
2.51 |
4.46 |
2.51 |
Total Other Comprehensive Income |
(18.98) |
76.49 |
(38.86) |
44.15 |
STATE OF COMPANYâS AFFAIRS
During the year under review, the company has achieved consolidated total revenue and profit before interest, depreciation and tax of Rs. 12,622.82 Millions and Rs. 1,859.43 Millions respectively as against total revenue and profit before interest, depreciation and tax of Rs. 14,679.13 Millions and Rs.1,842.11 Millions respectively during the previous financial year.
Further, the company has achieved standalone total revenue and profit before interest, depreciation and tax of Rs. 11,548.48 Millions and Rs. 1,861.38 Millions respectively as against total revenue and profit before interest, depreciation and tax of Rs. 13,329.75 Millions and Rs. 1,844.35 Millions respectively during the previous financial year.
DIVIDEND
During the year under review, Directors deem it proper to plough back the resources of the Company for its activities and therefore, do not propose any dividend for the Financial Year ended 31st March, 2018.
SHARE CAPITAL
The paid up Equity Share Capital as on 31st March, 2018 was Rs. 248.8 Millions divided into 2,48,82,806 shares of Rs. 10/- each.
MANAGEMENTâS DISCUSSION AND ANALYSIS REPORT
Managementâs Discussion and Analysis Report for the year under review forms part of the Annual Report.
AWARDS & CERTIFICATIONS
Company is certified for British Retail Consortium Certificate (BRC), ISO 9001:2015 (for Quality Management System), ISO 14001:2015 (for Environmental Management), ISO 22000:2005 (for Food and Safety Management) and OHSAS 18001:2007 (for Industrial Health and Safety).
During the year under review, Company achieved A Grade under Global Standard for Packaging & Packaging Material and the Company was inspected by a Qualified AIB Inspector under requirements of AIB International and was announced to be on 925/1000.
The Company has received the Countryâs Highest Exporter Award for FIBC through PLEXCOUNCIL, Ministry of Commerce, for 13 years in a row.
The Company has also achieved recognition from all its foreign buyers for its delivery and services. In geo-textile sector, the Company has received appreciation for its unique products and new technologies being introduced to solve the problems of the country especially related to flood protection & water cleaning.
CREDIT RATING
The credit rating assigned by ICRA Limited as on 31st March, 2018 was âBBB â rating for the Long term loan and âA2â for Short term Non-Fund Based Limits, which indicates âstableâ outlook.
SUBSIDIARIES/JOINT VENTURES/ASSOCIATES
During the year under review, the company has two new joint ventures, namely, Flexituff Sailendra Kalita JV and Flexituff Pulin Borgohain JV.
Further, a new wholly owned subsidiary has been incorporated during the year under review, namely, Flexituff FIBC Limited.
The Company has 3 Direct Subsidiaries, 1 Indirect Subsidiary, 6 Joint Ventures and 5 LLPs as on 31st March, 2018.
There are no associate companies within the meaning of Section 2(6) of the Companies Act, 2013 (âActâ). There has been no material change in the nature of the business of the subsidiaries and Joint Ventures.
Direct Subsidiaries
Nanofil Technologies Private Limited,
Flexituff FIBC Limited,
Flexiglobal Holdings Limited, Cyprus Indirect Subsidiary Flexiglobal (UK) Limited, UK Joint Ventures/LLPs
Flexituff Javed Ahmed LLP Flexituff Hi-Tech LLP Flexituff SA Enterprise LLP Flexituff Sailendra Kalita LLP Ujjivan LUIT LLP
Budheswar Das Flexituff International Limited JV Sanyug Enterprises Flexituff International Limited JV Vishnu Construction Flexituff International Limited JV Mayur Kartick Barooah Flexituff International Limited JV Flexituff Shailendra Kalita JV Flexituff Pulin Borgohain JV
Pursuant to the provisions of Section 136 of the Companies Act, 2013 the Standalone and Consolidated Financial Statements of the Company along with relevant documents and separate audited accounts in respect of subsidiaries are put up on the website of the Company (www.flexituff.com) and shall be made available upon request of any member of the Company interested in obtaining the same and shall also be kept for inspection on all working days, during business hours, at the Registered Office of the Company and that of the Subsidiary Companies concerned.
Company has formulated a policy for determining material subsidiaries, which can be accessed at the below link:-
(http://flexituff.com/wp-content/uploads/2016/11/Policies-and-Programme_Determining-Material-Subsidiary.pdf)
Further, pursuant to provisions of Section 129(3) of the Companies Act, 2013, a statement containing salient features of the financial data of the Companyâs Subsidiaries & Joint Ventures is mentioned in Form AOC-1 as Annexure A of the boardâs report.
SECRETARIAL STANDARDS
The Directors state that applicable Secretarial Standards, i.e. SS-1 & SS-2, relating to âMeetings of the Board of Directorsâ and âGeneral Meetingsâ, respectively have been duly followed by the Company.
DIRECTORSâ RESPONSIBILITY STATEMENT
The Directors confirm that:
a.) in the preparation of annual accounts for the year ended 31st March, 2018, the applicable accounting standards had 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 loss 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 the 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 have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and
f.) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
CORPORATE GOVERNANCE
The report on Corporate Governance as stipulated under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (âListing Regulationsâ) forms an integral part of this Report. The requisite certificate from the Practicing Company Secretary confirming compliance with the conditions of Corporate Governance is attached to the report on Corporate Governance.
RELATED PARTY TRANSACTION
There have been no materially significant Related Party Transactions between the Company & the Directors, Management, Subsidiaries or relatives except for those disclosed in the Financial Statements.
Accordingly, particulars of Contracts or Arrangements with Related Party Transactions referred to in Section 188(1) of the Act in Form AOC-2 does not form part of Directorsâ Report.
A Policy on Related Party Transactions as approved by the Board can be accessed on the Companyâs website at: (http://www.flexituff. com/Investor/Policies%20and%20Programme/Policies%20 and%20Programme_Related%20Party%20Transactions%20 Policy.pdf)
CORPORATE SOCIAL RESPONSILBILITY
The Corporate Social Responsibility Committee has formulated and recommended to the Board, a Corporate Social Responsibility Policy (CSR Policy) indicating the activities to be undertaken by the Company, which has been approved by the Board.
The CSR policy can be accessed on the Companyâs website at:
(http://flexituff.com/wp-content/uploads/2018/02/Policies-and- Programmes-CSR.pdf)
The Annual Report on CSR activities is annexed herewith marked as Annexure C to this Report.
RISK MANAGEMENT
In todayâs economic environment, Risk Management is a very important part of business. The main aim of risk management is to identify, monitor & take precautionary measures in respect of the events that may pose risks for the business. The Board & Audit Committee is responsible for reviewing the risk management plan and ensuring its effectiveness. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis by keeping Risk Management Report before the Board & Audit Committee periodically.
The Risk Management Policy can be accessed on the Companyâs website at:
(http://flexituff.com/wp-content/uploads/2016/11/Policies-and-Programme_Risk-Management-Policy.pdf)
INTERNAL FINANCIAL CONTROLS AND THEIR ADEQUACY
The Company has put in place an adequate system of Internal Financial Control commensurate with the size and nature of business which helps in ensuring the orderly and efficient conduct of its business. These systems provide a reasonable assurance in respect of providing financial and operational information, complying with applicable statutes, safeguarding of assets of the Company, prevention & detection of frauds, accuracy & completeness of accounting records and ensuring compliance with corporate policies.
The Company has an Internal Audit Department with a dedicated Internal Audit Team which is commensurate with the size, nature & complexity of operations of the Company. The Internal Audit Report is submitted to the Audit Committee on quarterly basis, the Audit Committee reviews the performance of internal audit function.
The Audit Committee, reviews adherence to internal control systems and internal audit reports.
DIRECTORS / KEY MANAGERIAL PERSONNEL (KMPS)
The following changes occurred in the position of Directors/KMPs of the Company from 1st April, 2017 till the date of this report:
S. No. |
Name of Director/ KMPs |
Date of Appointment/ (Cessation) |
Event |
1. |
Mr. Akshay Tanna (DIN: 02967021) |
15/04/2017 |
Appointed as Additonal Director (representative of TPG Growth II SF Pte Ltd.) |
(18/10/2017) |
Ceased to be Investor Nominee Director (representative of TPG Growth II SF Pte Ltd.) due to personal reasons |
||
2. |
Mr. Bhuwan Modi (DIN: 02855329) |
30/05/2017 |
Appointed as Additional Independent Director |
3 |
Mr. Akhilesh Agnihotri (DIN: 07637010) |
(30/05/2017) |
Ceased to be Whole Time Director due to pre-occupation. |
4. |
Mr. Sharat Anand (DIN: 00083237) |
(30/05/2017) |
Ceased to be Independent Director due to personal and unavoidable circumstances |
5. |
Mr. Saurabh Kalani (DIN: 00699380) |
30/05/2017 |
Re-appointed as WholeTime Director |
6. |
Mr. Kevan John Upperdine (DIN: 01214264) |
(13/06/2017) |
Ceased to be Independent Director due to medical reasons |
7. |
Mr. Anand Khandelwal (DIN: 07889346) |
24/07/2017 |
Appointed as Additional &Whole time Director |
8. |
Mr. Parag Gupta (DIN: 06423095) |
24/07/2017 |
Appointed as Additional & Independent Director |
(13/03/2018) |
Ceased to be Independent Director due to his other full time commitments |
||
9. |
Mr. Ankur Thadani (DIN: 03866737) |
18/10/2017 |
Appointed as Bondholder Nominee Director (representative of TPG Growth II SF Pte Ltd.) |
(27/02/2018) |
Ceased to be Bondholder Nominee Director (representative of TPG Growth II SF Pte Ltd.) due to conflict of interest |
||
10. |
Mr. Mayank Bajpai (DIN: 07713274) |
18/10/2017 |
Appointed as Investor Nominee Director (representative of TPG Growth II SF Pte Ltd.) |
(27/02/2018) |
Ceased to be Investor Nominee Director (representative of TPG Growth II SF Pte Ltd.) due to conflict of interest |
||
11. |
Mr. Vishwarupe Narain (DIN: 03394320) |
(18/10/2017) |
Ceased to be Bondholder Nominee Director (representative of TPG Growth II SF Pte Ltd.) due to resignation from TPG |
12. |
Ms. Madhuri Jethani |
(13/02/2018) |
Ceased to be Company Secretary & Compliance Officer |
13. |
Ms. Khushboo Kothari |
13/02/2018 |
Appointment as Company Secretary & Compliance Officer |
14. |
Mr. Mahesh Sharma (DIN: 07610685) |
(30/05/2018) |
Ceased to be KMP due to his resignation from the Board |
15. |
Mr. Ashish Jamidar (DIN: 08196328) |
14/08/2018 |
Appointed as Additional & Whole-Time Director |
The Board placed on record its sincere appreciation for the invaluable contribution and guidance provided by all outgoing directors and Company Secretary during their tenures.
The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence prescribed under the Act and the Listing Regulations.
The following policies can be accessed at website of the Company:-
a.) Terms & Conditions for appointment of Independent Director
(http://flexituff.com/wp-content/uploads/2017/09/Policies-and-Programe-Terms-Conditions.pdf)
b) Nomination & Remuneration Policy
(http://flexituff.com/wp-content/uploads/2017/08/Policies-and-Programe-Nomination-Remuneration-Policy.pdf)
DIRECTORS SEEKING APPOINTMENT/RE-APPOINTMENT
In accordance with the provisions of the Act & Articles of Association of the Company, Mr. Saurabh Kalani (DIN: 00699380), Whole-Time Director of the Company, retires by rotation at the ensuing Annual General Meeting. The Board of Directors has recommended his re-appointment.
The Board of Directors on recommendation of the Nomination & Remuneration Committee has appointed Mr. Ashish Jamidar (DIN: 08196328) as Additional & Whole-Time Director of the Company w.e.f 14th August, 2018, subject to the approval of members in the ensuing Annual General Meeting.
PERFORMANCE EVALUATION
Pursuant to the applicable provisions of the Companies Act, 2013 and Listing Regulations, the Board has carried out the annual performance evaluation of its own performance, its Committees, the Chairman of the Company and the Directors on the basis of the feedback received from all the Directors of the Company.
Structured performance evaluation questionnaire were circulated to the Directors for:
- Directorsâ - Self & Peer Level Evaluation;
- Boardâs Evaluation;
- Board Committeesâ Evaluation; and
- Chairmanâs Evaluation.
The evaluation questionnaires broadly cover parameters such as their participation in board meeting/other committee meeting, relationship management, knowledge & skill, adherence to the applicable code of conduct for independent directors and maintenance of confidentiality etc.
The summary of rating given by all the directors on the structured performance evaluation was placed before the Board of Directors.
AUDITORS STATUTORY AUDITORS
M/s Kailash Chand Jain & Co., Chartered Accountants and M/s MSKA & Associates (formerly MZSK & Associates), Chartered Accountants, were appointed as Statutory Auditors of the Company, for a term of 5 years & 3 years; respectively, at the Annual General Meeting held on 22nd August, 2017. They have confirmed that they are not disqualified to become Auditors of the Company.
The Notes on Financial Statements referred to in the Auditorsâ Report are self-explanatory and do not call for any further comments. The Auditorsâ Report does not contain any qualification, reservation, adverse remark or disclaimer.
SECRETARIAL AUDITOR
M/s. Ritesh Gupta & Company, Company Secretaries were appointed to conduct the secretarial audit of the Company for the Financial Year 2017-18, as required under Section 204 of the Companies Act, 2013 and rules made thereunder.
The Secretarial Audit Report for the Financial Year 2017-18 forms part of the Annual Report as Annexure B to the Boardâs Report. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.
The Board has appointed M/s. Ritesh Gupta & Company, Company Secretaries as Secretarial Auditor of the Company for the Financial Year 2018-19.
DISCLOSURES NUMBER OF MEETINGS OF THE BOARD
Five meetings of the Board of Directors were held during the year under review. The details of meetings held and attendance of the Directors are detailed in the Corporate Governance Report, which forms part of this report.
AUDIT COMMITTEE
The details pertaining to composition, meetings and attendance of audit committee are included in the Corporate Governance Report, which forms part of this report.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Loans, Guarantees and Investments covered under Section 186 of the Companies Act, 2013 forms part of the Notes to the Financial Statements provided in this Annual Report.
VIGIL MECHANISM
The Company has a whistle blower policy/vigil mechanism to report genuine concerns or grievances. The Whistle Blower Policy/ vigil mechanism has been posted on the website of the Company
(http://www.flexituff.com/Investor/Policies%20and%20Programme/Policies%20and%20Programme_Vigil%20 Mechanism%20Policy.pdf).
CODE OF CONDUCT
The Board has laid down a code of conduct for Board members & Senior Management Personnel as per Regulation 17 & 26 (3) of the Listing Regulations & has been posted on the website of the Company (http://www.flexituff.com/Investor/Policies%20and%20 Programme/Policies%20and%20Programme_Director%20 and%20Senior%20Management.pdf).
All the Board members & Senior Management Personnel have affirmed compliance with the said code of conduct for the year ended 31st March, 2018. A declaration to this effect, signed by the Whole-Time Director, forms part of this Annual Report.
INSIDER TRADING
The Board has adopted the Insider Trading Policy in accordance with the requirements of the SEBI (Prohibition of Insider Trading) Regulations, 2015.The Insider trading Policy of the Company covering code of practices and procedures for fair disclosure of Unpublished Price Sensitive Information and Code of Conduct for the prevention of Insider Trading has been posted on the website of the Company.
(http://www.flexituff.com/Investor/Policies%20and%20Programme/Policies%20and%20Programme_Insider%20Trading-%20Schedule%20B.pdf).
All the Board members & KMPs have affirmed compliance with the said code of conduct for the year ended 31st March, 2018.
PARTICULARS OF EMPLOYEES
In terms of the provisions of Section 136(1) of the Companies Act, 2013, the Boardâs Report is being sent to the shareholders without this annexure. Shareholders interested in obtaining a copy of the said annexure may write to Director or Company Secretary of the Company.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUTGO
In compliance with Section 134 of The Companies Act, 2013 read with Rule 8 of The Companies (Accounts) Rules 2014, a statement giving information regarding Energy Conservation, Technology Absorption and Foreign Exchange earnings and out go is given in Annexure D forming part of this Annual Report.
DEMATERIALISATION AND ELECTRONIC REGISTRAR
The equity shares of your Company are available for dematerialization with both NSDL and CDSL under ISIN INE060J01017. As on 31st March 2018, 95.48% equity shares were in demat-form and remaining 4.52% equity shares were in physical form.
Our registrar for electronic connectivity with the National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) is Link Intime India Private Limited, Mumbai.
HUMAN RESOURCE MANAGEMENT & INDUSTRIAL RELATION
Human Resource plays vital role in the Company. If finance is the blood of any organization then Human Resource is not less than pulse which keeps running production by their hard work day and night. Company focuses on creating best health and safety standards and also has performance management process to motivate people to give their best output and encourages innovation and meritocracy.
Personnel relation with all employees remained cordial and harmonious at all levels throughout the year. Directors wish to place on record their sincere appreciations for the continued, sincere and devoted services rendered by all the employees of the Company.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
As per the requirement of the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 (âActâ) and Rules made thereunder, the Company has Internal Complaints Committees (ICC) who inquire into complaints of sexual harassment and recommend appropriate action.
During the year under review, no compliant was received from any employee of the Company and hence no complaint was outstanding as on 31st March, 2018.
EXTRACT OF ANNUAL RETURN
Extract of Annual Return of the Company is annexed herewith marked as Annexure - E to this Report.
NAME CHANGE OF THE COMPANY
It is proposed to change the name of the Company from âFlexituff International Limitedâ to âFlexituff Ventures International Limitedâ.
The proposed change has been approved by the Board of Directors, subject to the approval of members in the ensuing Annual General Meeting (AGM), Stock Exchanges (BSE Limited & National Stock Exchange of India Limited) and Registrar of Companies.
The reason for the proposed change has been detailed in Notice of the AGM, which forms part of the Annual Report.
MATERIAL CHANGES AFFECTING THE COMPANY
Please find below details of material change affecting the Company between the end of the financial year and date of this report:-
âExtension provided by the lender for repayment of FCCBsâ 5.44% Foreign Currency Convertible Bonds (the âFCCBsâ) of USD 25 Million issued to TPG Growth SF II Pte. Ltd. (TPG), convertible at the option of Bondholder into fully paid up equity shares of the Company at a price of Rs. 218/- per equity share were due on 26th April, 2018.
On the request of the Company, TPG extended the said repayment to 30th June, 2018 and thereafter for a period of Forty-Eight (48) Months from 30th June, 2018 on revised terms & conditions as mutually agreed between Company & TPG subject to due approval from RBI. Authorized Dealer has approved the same & approval from RBI is underway.
SLUMP SALE
Board of Directors at its meeting held on 24th July, 2017 had approved separation of its FIBC business (Pithampur) into a wholly owned subsidiary Company through process of slump sale of FIBC division (Pithampur) of the Company including assets, liabilities/ obligations of whatsoever nature & employees which are specific to the FIBC division (Pithampur) on a going concern basis to a wholly owned subsidiary Company.
Company deals in major products i.e. FIBC & Technical textile / Geo Textile.
The said separation of two product businesses in 2 separate companies will result into unlocking of value of business & raising growth capital.
The said process of slump sale is awaiting approval from the lenders.
GENERAL
Directors state that no disclosure or reporting is required in respect of the following matters as there were no transactions on these items during the year under review:
- Details relating to deposits covered under Chapter V of the Act.
- Issue of Sweat Equity Shares to employees of the Company under any scheme
- Details pertaining to Employee Stock Options (ESOPs) as no ESOPs were outstanding as on 31st March, 2018.
- Issue of differential shares with voting rights as to dividend, voting or otherwise
- No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Companyâs operations in future
- No fraud has been reported by the Auditors to the Audit Committee or the Board.
APPRECIATION
The Board takes this opportunity to express its sincere appreciation for the excellent support and cooperation received from companyâs bankers, investors, customers, suppliers, statutory authorities for their consistent support to the Company.
The Directors also sincerely acknowledge the outstanding support and services of the workers, staff and executives of the Company, which have together contributed to the efficient operations and management of the Company.
For and on behalf of the Board of Directors of
Flexituff International Limited
Saurabh Kalani Anand Khandelwal
Whole-Time Director Whole-Time Director
(DIN: 00699380) (DIN: 07889346)
Date: 14.08.2018
Place: Pithampur
Mar 31, 2015
To The Members of Flex tuff International Limited
The Board of Directors presents its Twenty Second Directors' Report on
Company's business and operations together with the Audited Financial
Statements for the financial year ended 31st March 2015
FINANCIAL RESULTS AND APPROPRIATION
(Rs. in Millions)
Particulars Standalone Consolidated
2014-15 2013-14 2014-15 2013-14
Sales fr
other Incomes 10571.63 9756.86 11821.16 10951.93
Profit before
Interest, Depreciation
% Tax 1242.98 1126.09 1261.99 1205.72
Profit before Tax 120.56 300.56 114.37 359.63
Profit for the year/
Balance available for
Appropriation 197.62 127.70 188.04 183.04
Less: Appropriation
Proposed dividend on
equity shares 8j tax 29.11 26.70 29.11 26.70
Surplus carried to
Balance Sheet 168.51 101.00 158.93 156.33
1. STATE OF COMPANY'S AFFAIRS
During the period under review, on standalone basis, total revenue for
the financial year 2014-15 at Rs. 10571.63 Million was higher against
the total revenue of Rs. 9756.86 Millions in the previous year 2013-14.
Company's profit before interest, depreciation and tax for the
financial year 2014-15 stood at Rs. 1242.98 Million against Rs. 1126.09
Million in the previous year 2013-14.
On Consolidated basis, total revenue for the financial year 2014-15 at
Rs. 11821.16 Million was higher against the total revenue of Rs.
10951.93 Million in the previous year 2013- 14. The profit before
interest, depreciation and tax was Rs. 1261.99 Million against that of
Rs. 1205.72 Million in the previous year.
2. DIVIDEND
Your Board is pleased to recommend a final dividend of 10% on the
equity share capital of the Company i.e. Rs. l/-per equity share for
the financial year 2014-15. The dividend, if approved by the
shareholders in the Annual General Meeting, will be paid to the members
within the time period stipulated by the Act.
During the year, no amount was transferred to General Reserves.
3. SHARE CAPITAL
The paid up equity share capital of the Company as on 31st March, 2015
was Rs. 24.88 Crore. During the year under review, the Company has not
issued any sweat equity shares nor granted any Stock Options.
4. PARTICULARS OF LOAN, GUARANTEES OR INVESTMENTS
Details of Loans, Guarantees and Investments covered
under the provisions of Section 186 of the Companies Act, 2013 are
given in the notes to the financial statements.
5. CREDIT RATING FOR BANKING FACILITIES
During the year under review, M/s. India Rating and Research Private
Limited (Fitch Group) on the basis of audited financial statements of
31st March 2015, has assigned "IND A-" rating for long term debts and
"IND A2 " for short term debts, which indicates "stable" outlook
regarding timely servicing of financial obligations and is one notch
above the previous year's rating.
6. AWARDS $ CERTIFICATIONS
During the year British Retail Consortium Certificate (BRC), ISO
14001:2004 (for Environmental Management), ISO 22000:2005 (for Food and
Safety Management), OHSAS 18001:2007 (for Industrial Health and Safety)
and ISO 9001:2008 (for Quality Management System) certifications were
renewed.
7. SUBSIDIARIES /JOINT VENTURES/ ASSOCIATES
The Company has 2 subsidiaries as on March 31, 2015. There are no
Associate Companies within the meaning of section 2(6) of the Companies
Act, 2013. The Company during year 2014-15 made investment in three
limited liability partnerships. The names of Companies which have
become or ceased to be subsidiaries, joint ventures or associate
Companies during the year are given in the Annexure C to this report.
Pursuant to the provisions of Section 129(3) of the Act, a statement
containing salient features of the financial statements of the
Company's subsidiaries in form AOC-1 is attached to the financial
statements of the Company.
Pursuant to the provisions of Section 136 of the Act, the financial
statements of the Company, consolidated financial statements along with
relevant documents and separate audited accounts in respect of
subsidiaries, are available on the website of the Company.
The summaries of performance of the subsidiaries are given below:
M/s Nanofil Technologies Private Limited,
Nanofil Technologies Private Limited was incorporated as a private
limited company under the Companies Act, 1956 in India on December 15,
2009 bearing CIN U25194WB2009PTC140211. The Company is engaged in the
business of carrying on research and development by using various
technologies namely Nanotechnology, Chemical technology, Biochemical
Technology 8j Polymer Technology to use in polypropylene, polyethylene,
PVC products, etc. The total sales and receipt of Nanofil was of Rs.
460.65 Million and profit of Rs. 6.26 Million for the financial year
2014-15.
M/s Flexiglobal Holdings Limited, Cyprus
Flexiglobal Holdings Limited was incorporated as a limited liability
Company under Companies Law, Cap. 113 in Nicosia on September 22, 2008
bearing Registration No. HE 238405. Flexiglobal is a holding company
for foreign investments. The total consolidated receipt of Flexiglobal
was of 1,212 GBP and loss of 11,826 GBP for the financial year 2014-15.
7. EMPLOYEE STOCK OPTION SCHEME, 2011
The Nomination and Remuneration Committee of the Board of Directors of
the Company inter alia monitors and administers the Employee stock
option scheme of the Company.
The Company has only one scheme i.e., ESOP SCHEME 2011 and its details
are as under-
Total No. of Options outstanding at 499800 beginning of the year
Less: Options lapsed due to various reasons 164550
Total Outstanding Options 335250
8. DIRECTORS /KEY MANAGERIAL PERSONNEL (KMPS) APPOINTMENT AND
RESIGNATION
During the year under review, the following changes occurred in the
position of Directors/ KMPs of the Company:
S.
N. Name of
Director/KMP Date of Event Event
1. Mr. K. K.
Vijayvergiya 12th August,2014 Resignation from Directorship.
(DIN 01941958)
2. Mr. D.K. Sharma 12th August, 2014 Appointment as Professional
Executive Director in
addition to Company Secretary.
(DIN 00028152) 4th November,2014 Resigned from post of Company
Secretary.
3. Mr. Ajay Mundra 27th May, 2014 Appointed as Chief Financial
Officer.
12th August, 2014 Resigned from post of Chief
Financial Officer.
4. Mr. Dilip Parikh 12th August,2014 Appointed as Chief Financial
Officer.
20th May, 2015 Resigned from post of Chief
Financial Officer.
5. Mr. Rishabh
Kumar Jain 4th November,2014 Appointed as Company
Secretary
6. Mr. Manas
Tandon 29th January, 2015 Resignation from Directorship.
(DIN 05254602)
7. Mr. Ritesh
Pandey 12th February, 2015 Appointed to fill casual
vacancy.
(DIN 07088000)
8. Mrs. Alka
Sagar (DIN
07138477) 31st March, 2015 Appointed as an Additional
Director
9. Mr. Manoj
Dwivedi 31st March, 2015 Resignation from Directorship.
(DIN 05290255)
The Board has placed on record its sincere appreciation for the
contribution of Mr. K.K. Vijayvergiya (DIN 01941958), Mr. Manas Tandon
(DIN 05254602) and Mr. Manoj Kumar Dwivedi (DIN 05290255), Mr. Ajay
Mundra and Mr. Dilip Parikh towards the progress of the Company during
their tenures.
In accordance with the provisions of the Companies Act, 2013 and in
terms of the Articles of Association of the Company Mr. D.K.
Sharma, Professional Executive Director of the Company, retire by
rotation and being eligible for re-appointment offers himself for
re-appointment.
In compliance with the Companies Act, 2013, Mr. Anirudh Sonpal (DIN
03367049), Mr. Sharat Anand (DIN 00083237) and Mr. Kevan
John Upperdine (DIN 01214264) were appointed as Independent Directors
by the members at their 21st Annual General Meeting held on 30th
September, 2014 for a period of 5 years.
9. DECLARATION BY INDEPENDENT DIRECTORS
All Independent Directors have declared and affirmed their compliance
with the independence criteria as mentioned in Section 149(6) of the
Companies Act, 2013 and clause 49 of the Listing Agreement.
10. BOARD EVALUATION
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, a formal evaluation of the Board was carried out
by independent directors, after taking into consideration of the
various aspects of the Board's functioning, composition of the Board
and its Committees, culture, execution and performance of specific
duties, obligations and governance.
The performance evaluation of the Independent Directors was done by the
entire Board of Directors, excluding the director being evaluated on
the basis of their performance of specific duties and obligations and
governance.
Further there is no re-appointment of Independent Directors due for
this Annual General Meeting.
11. POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION
The Nomination and Remuneration Committee of Board of Directors of the
Company leads the process for appointment of Directors and Key
Managerial and Senior Management personnel in accordance with the
requirements of the Companies Act, 2013, Listing Agreement and other
applicable rules. In case of re-appointment of Independent Directors,
the Board shall take into consideration the results of the performance
evaluation of the Directors and their engagement level.
Company does have Policy on Appointment and Remuneration of Directors,
KMPs and Senior Management personnel and which is available on the
website of the Company i.e., www.flexituff.com
12. VIGIL MECHANISM / WHISTLE BLOWER POLICY
The Company has established a vigil mechanism to support the Code of
Business Ethics. This mechanism documents the Company's commitment to
maintain an open work environment in which employees are able to report
instances of unethical or undesirable conduct, actual or suspected
fraud or any violation of Company' s Code of Conduct without fear of
intimation or retaliation.
The said is given at the website of the Company on below link:
http://flexituff.com/Investor/Code%20of%20Conduct/
vigil%20mechanism.pdf
13. RISK MANAGEMENT
The Board of Directors is overall responsible for identifying,
evaluating and managing all significant risks faced by the Company. The
Board monitors and reviews the implementation of various aspects of the
Risk Management by approving Risk Management Report in the meeting of
Audit Committee and Board thereon on quarterly basis to manage key
risks across the organization.
14. RELATED PARTY TRANSACTIONS
All transactions entered with Related Parties for the year under review
were on arms length basis and in the ordinary course of business and
the provision of Section 188 of the Companies Act, 2013 are not
attracted. Thus disclosure in form AOC-2 is not required and hence not
attached. Further, there are no material related party transactions
during the year under review with the Promoters, Directors, key
managerial personnel or any related party.
15. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no significant material orders passed by the Regulators /
Courts which would impact the going concern status of the Company and
its future operations.
16. AUDITORS STATUTORY AUDITORS
M/s. L.K. Maheshwari 8j Co., Chartered Accountants, Indore were
appointed as Statutory Auditors of the Company in the 21st Annual
General Meeting (AGM) of the Company held on 30th September, 2014 for a
term of three consecutive years, subject to ratification of their
appointment by shareholders at every AGM. Board of Directors in its
meeting held on 7th August, 2015 has proposed ratification of their
appointment by the shareholders in the ensuing Annual General Meeting.
Board of Directors on recommendation of Audit Committee of the Board
appointed M/s MZSK % Associates, Chartered Accountants, as Joint
Statutory Auditor for Financial Year 2015-16 in its meeting held on 7th
August, 2015 subject to approval of members in ensuing Annual General
Meeting of the Company. M/s. MZSK 8j Associates, Chartered Accountants,
Mumbai have given their consent to act as a Joint Statutory Auditors of
the Company. AUDITOR'S REPORT
The observations made in the Auditor's Report, read with the relevant
notes thereon are self explanatory and hence do not calls for any
further comment pursuant to Section 134 of the Companies Act, 2013.
SECRETARIAL AUDIT
Pursuant to provisions of Section 204 of the Companies Act,
2013 and the Companies (Appointment and Remuneration of Managerial
Personnel) Rules 2014, M/s. Ritesh Gupta 8j Company, Practicing Company
Secretary were appointed as Secretarial Auditor for conducting
secretarial audit for the financial year 2014-15. The report of the
Secretarial Auditor is annexed herewith as Annexure E 8j its self
explanatory hence do not call for any further comments pursuant to
Section 134 of the Companies Act, 2013.
COST AUDIT
Members of the Company appointed M/s. Vijay P. Joshi 8j Associates,
Cost Accountants as Cost Auditors of the Company for the financial year
2014-15. However, further amendments in Companies (Cost record and
Audit) Rules, 2014 waived off the requirement of cost audit on the
Company. Hence there was no cost audit carried on for the financial
year 2014-15.
17. DETAILS OF MEETINGS OF THE BOARD
During the year five Board Meetings were convened and held. The details
of which are given in the Corporate Governance Report.
18. AUDIT COMMITTEE
The Company has constituted Audit Committee, pursuant to the provisions
of Section 177 of the Companies Act, 2013 and provisions of the Listing
Agreement. The Composition, Scope and Powers of Audit Committee
together with details of meetings held during the period under review
forms part of Corporate Governance Report.
19. CORPORATE SOCIAL RESPONSIBILITY
During the period under review, the Board of Directors on
recommendation of the CSR Committee formulated a CSR policy. The CSR
activities of the Company are implemented in accordance with the CSR
policy and provisions of the Companies Act, 2013 and rules made
there under.
The Annual Report on CSR containing particulars specified in Companies
(CSR Policy) Rules, 2014 including initiatives taken by the Company
during the year is given in Annexure B along with contents of CSR
Policy of the Company. The said policy is also placed on the website of
the Company under following link:
http://fiexituff.com/investor_conduct.
20. PUBLIC DEPOSITS
Your Company has not accepted any deposits within the meaning of
Section 73 of the Companies Act, 2013 and the rules made there under.
21. CODE OF CONDUCT
The Board has laid down a code of conduct for all Board members and
Senior Management Personnel of the Company as per Clause 49 of the
Listing Agreement. All the Directors and Senior Management Personnel
have affirmed compliance with the said code of conduct for the year
ended 31st March, 2015. The same is posted on the website of the
company i.e., www.flexituff.com
22. DISCLOSURE ON REMUNERATION
The information required pursuant to Section 197(12) of the Companies
Act, 2013 and rule made there under are forming part of this Directors'
Report for the year ended March 31, 2015 is given as a separate
Annexure to this report.
The above annexure is not sent along with this report to the Members of
the Company in line with the provision of Section 136 of the Companies
Act, 2013. Members who are interested in obtaining these particulars
may write to the Company Secretary at the Registered Office of the
Company. The aforesaid Annexure is also available for inspection by
members at the registered office of the Company, 21days before the 22nd
Annual General Meeting and up to the date of the ensuing Annual General
Meeting during the business hours on working days.
None of the employees listed in the said Annexure is a relative of any
Director of the Company. None of the employees hold (by himself or
along with his spouse and dependent children) more than two percent of
the equity shares.
23. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO
These fields continue to be the areas for improvement and of maj or
progress. Keeping in view the escalation in energy cost, our
organization is continuously endeavoring to find new and better ways
for optimization of energy cost in its various manufacturing
operations.
In compliance with Section 134 of the Companies Act, 2013, read with
the Companies (Disclosures of Particulars in the Report of Board of
Directors) Rules, 1988, statement giving information regarding Energy
Conservation, Technology Absorption and Foreign Exchange earnings and
out go is given in Annexure A forming part of this Annual Report.
24. DIRECTORS' RESPONSIBILITY STATEMENT
The Directors confirm that:
1. In the preparation of annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures.
2. 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 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.
3. 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.
4. The Directors had prepared the annual accounts on a going concern
basis.
5. The Company has established internal financial controls and the
said controls are adequate and are operating effectively.
6. A proper compliance system is established to ensure compliance with
the provisions of all applicable laws and that such systems are
adequate and operating effectively.
25. INTERNAL FINANCIAL CONTROLS AND THEIR ADEQUACY
The Company has put in place an adequate system of internal financial
control commensurate with its size and nature of business which helps
in ensuring the orderly and efficient conduct of its business. These
systems provide a reasonable assurance in respect of providing
financial and operational information, complying with applicable
statutes, safeguarding of assets of the Company, prevention 8j
detection of frauds, accuracy 8j completeness of accounting records and
ensuring compliance with corporate policies. As a means to further
strengthen the control environment, during the year, the processes were
benchmarked with industry practices to identify the gaps, if any and
remedial measures were taken.
The Company has an Internal Audit Department with a dedicated internal
audit team which is commensurate with the size, nature 8j complexity of
operations of the Company. The Internal Audit Report is submitted to
the Audit Committee on quarterly basis, the Audit Committee reviews the
performance of internal audit function.
The Audit Committee, reviews adherence to internal control systems and
internal audit reports. Further, the Board annually reviews the
effectiveness of the Company's internal control system.
26. REPORT ON CORPORATE GOVERNANCE
As required under Clause 49 of the Listing Agreement with the Stock
Exchanges, the Corporate Governance Report forms part of the Annual
Report. Your Company is in full compliance with the requirements and
disclosures as stated therein. A certificate from the Practicing
Company Secretary confirming compliance of the Corporate Governance is
appended to the Report on Corporate Governance.
27. REPORT ON MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis forms part of this Annual Report
for the year ended 31st March, 2015
28. DEMATERIALISATION AND ELECTRONIC REGISTRAR
The equity shares of your Company are available for dematerialization
with both NSDL and CDSL under ISIN INE060J01017. As on 31st March 2015,
95.47% equity shares are in Demate form and remaining 4.53 % equity
shares are in physical form.
Our registrar for electronic connectivity with the National Securities
Depository Limited (NSDL) and Central Depository Services Limited
(CDSL) is M/s Link In time India Private Limited, Mumbai (Formerly M/s
In time Spectrum Registry Limited).
29. HUMAN RESOURCE MANAGMENT AND INDUSTRIAL RELATIONS
Human Resource plays vital role in your company. If finance is the
blood of any organization then Human Resource is not less than pulse
which keeps running production by their hard work day and night. Your
company has performance management process to motivate people to give
their best output and encourages innovation and meritocracy. Board
places on record their appreciation and sincere thanks towards their
contribution to the Company's performance during the year.
The Board is pleased to inform you that Industrial relations have
continuously been cordial at all levels throughout the year.
30. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
Your Company has always believed in providing a safe and harassment
free workplace for every individual working in Flexituff International
Limited's premises. The Company always endeavors to create and provide
an environment that is free from discrimination and harassment
including sexual harassment.
The Company has in place a robust policy on prevention of sexual
harassment at workplace. The policy aims at prevention of harassment of
employees for identification, reporting and prevention of sexual
harassment. There is an Internal Complaints Committee (ICC) which is
responsible for redressal of complaints related to sexual harassment
and follows the guidelines provided in the policy. ICC has its presence
at corporate office as well as at plant locations.
During the year ended 31st March, 2015. There were no complaints
pertaining to sexual harassment.
31. RELEVANT EXTRACT OF THE ANNUAL RETURN
Relevant extract of annual return for the financial year 2014- 15 under
the Companies Act, 2013 is given in Annexure D to this Report.
32. MATERIAL CHANGES AND COMMITMENTS
No material changes and commitments, affecting the financial position
of the Company have occurred after the end of the financial year
2014-15 and till the date of this report.
APPRECIATION
The Board takes this opportunity to express its sincere appreciation
for the excellent support and cooperation received from company's
bankers, investors, customers, suppliers, statutory authorities for
their consistent support to the Company.
The Directors also sincerely acknowledge the outstanding support and
services of the workers, staff and executives of the Company, which
have together contributed to the efficient operations and management of
the Company.
For And On Behalf of The Board
Sd/- Sd/-
Whole Time Director Whole Time Director
Place: Pithampur
Date: 07/08/2015
Mar 31, 2014
The Members,
The Board of Directors presents its Twenty first Directors'' Report on
Company''s business and operations together with the Audited Financial
Statements for the financial year ended 31st March 2014.
FINANCIAL RESULTS AND APPROPRIATION
(r in Million)
Particulars Standalone Consolidated
2013-14 2012-13 2013-14 2012-13
Sales & other incomes 9756.86 8623.77 10951.93 9690.49
Profit before interest,
depreciation & Tax 1126.09 1211.98 1205.72 1252.17
Profit before Tax 300.56 368.12 359.63 350.77
Profit after Tax 228.06 276.36 283.41 254.96
Profit for the year/
Balance available for
Appropriation 127.70 276.36 183.04 254.96
Less: Appropriation
Proposed dividend on equity
shares & tax 26.70 25.28 26.70 25.27
Equity dividend and tax of
earlier year 0 0.02 0 0.02
Surplus carried to
Balance Sheet 101.00 251.06 156.33 229.65
FINANCIAL PERFORMANCE HIGHLIGHTS
During the period under review, Standalone Sales and other incomes of
the Company stood at Rs.9756.86 Millions as against that of Rs.8623.77
Millions in the previous year showing a growth of 13.14%. Company''s
Profit before interest, depreciation and tax stood at Rs.1126.09 Millions
as against to Rs.1211.98 Millions in the previous year.
The Consolidated Sales and other incomes of the Company stood at
Rs.10951.93 Millions as against that of Rs.9690.49 Millions in the previous
year showing a growth of 13.02%. Company''s Consolidated Profit after
tax (PAT) increased by 11.16% i.e. from Rs.254.96 Millions in the
previous year to Rs.283.41 Millions.
EXPORT SALES
The Company recorded a growth of 22.29% in export sales from Rs.4802.74
Million in the previous year to Rs.5873.31 Million this year.
DIVIDEND
Your Board is pleased to recommend a dividend of 10% on the equity
share capital of the Company i.e. Rs.1/- per equity share for the
financial year ended 31st March, 2014. The dividend, if approved, will
be paid to the members within the time period stipulated by the Act.
CREDIT RATING FOR BANKING FACILITIES
M/s Credit Analysis & Research Limited (CARE) on October 16, 2013 has
reaffirmed CARE BBB (Triple B ) credit rating for Long Term Facility
and CARE A3 for Short Term Facility which indicates moderate degree of
safety regarding timely servicing of financial obligations.
PRIVATE PLACEMENT AND FCCB ISSUE
Company has issued and allotted 1902173 Equity Shares on Preferential
Basis under Private Placement, at a price of Rs.230/- per Equity Share
inclusive of premium of Rs.220/- per Equity Share to International
Finance Corporation on 30th December, 2013.
Company has further issued 5.34% Foreign Currency Convertible Bonds
(the "FCCBs") amounting to USD 9 Million to nternational Finance
Corporation. These FCCBs are convertible at the option of Bondholder
into fully paid up equity shares of the Company at a price of Rs.230/-
per equity share on or before 30th January, 2019.
AWARDS & CERTIFICATIONS
During the year both the Prestigious Food Grade Certificate i.e.
American Institute of Baking Certificate (USFDA) and British Retail
Consortium Certificate (BRC) were renewed.
Besides certification above your Company is accredited by ISO
14001:2004(for Environmental Management), ISO 22000:2005 (for Food and
Safety Management), ISO 18001:2007 (for Industrial Health and Safety) &
ISO 9001-2008 (for Quality Management System) certifications.
Your Company is a major exporter of FIBC and woven products from India
and has received the Top Exporter Award from the PLEXCOUNCIL, Ministry
of Commerce from 2005-06 to 2011- 12.
SUBSIDIARIES
Your Company has two direct subsidiaries and two steps down
subsidiaries. None of the subsidiaries have a negative net worth.
Subsidiaries
M/s Nanofil Technologies Private Limited, Kolkata M/s Flexiglobal
Holdings Limited, Cyprus (During the year Company has disinvested from
M/s Satguru Polyfab Private Limited, Gandhidham)
Step- down Subsidiaries
M/s Flexiglobal (UK) Limited, UK M/s Lakshmi Incorporated, USA
The financial details of the subsidiary companies as well as the extent
of holdings therein are provided in a separate section of this Annual
Report.
The Ministry of Corporate Affairs has, vide General Circular No 2/2011
dt. 8th February, 2011, granted general exemption for not attaching the
annual accounts of the subsidiary companies with the annual accounts of
holding company.
Pursuant to the said circular, the Board of Directors of your company
in their meeting held on 27th May, 2014 has given its consent, for not
attaching the Annual Accounts of the Subsidiary Companies with that of
the Holding Company, instead has published the audited consolidated
financial statements in the Annual Report. Accordingly, the annual
accounts of Subsidiary Companies and all other documents required to be
attached under Section 212(1) of the Companies Act, 1956 to the Balance
Sheet of the Company shall not be attached. However, these documents
shall be made available upon request by any member of the Company
interested in obtaining the same and shall also be kept for inspection
at the Registered Office of your Company and that of Subsidiary
Companies concerned Further, the financial data of the Subsidiary
Companies has been furnished along with the statement pursuant to
section 212 of the Companies Act, 1956 forming part of this Annual
Report.
EMPLOYEE STOCK OPTION SCHEME, 2011
The updates on the stock options are as under:
Total No. of Options outstanding at beginning 799300 of the year
Less: Options lapsed due to various reasons 299500
Total Outstanding Options499800
DIRECTORS
Mr. Saurabh Kalani and Mr. Manoj Kumar Dwivedi, Whole time directors
are liable to retire by rotation and being eligible offers themselves
for re-appointment. The board recommends their re-appointment for your
approval Mr. D.K. Sharma, Asstt. Vice President- Corporate Affairs &
Company Secretary has been appointed as an additional director by Board
of Directors of the Company at their meeting held on 12th August, 2014.
He was appointed as an Executive
Director in the same meeting. He is liable to retire by rotation
Mr. Kaushal Kishore Vijayvergiya also tendered his resignation which
was accepted by Board of Directors w.e.f. 12th August, 2014. Board wish
to place on record sincere appreciation for his contribution towards
the progress of the company during his tenure.
AUDITORS
M/s. L.K. Maheshwari & Co., Chartered Accountants, was appointed as
Joint Statutory Auditors of the Company vide Extra Ordinary General
meeting held on 11th March, 2014. Further M/s. BSR & Co. LLP,
Chartered Accountants resigned from Statutory Auditor of the Company
w.e.f. 14th May, 2014.
Company has received a certificate from M/s L.K. Maheshwari & Co.,
Chartered Accountants, regarding their eligibility for appointment as
Statutory Auditors of the Company till the conclusion of three
consecutive Annual General Meetings (subject to ratification of the
appointment by the members at every AGM held there after) and matter of
their re-appointment has been proposed for approval of members of the
Company.
The board recommends the appointment of M/s L.K. Maheshwari & Co.,
Chartered Accountants, as Statutory Auditors of the Company.
AUDITOR''S REPORT
The observations made in the Auditor''s Report, read with the relevant
notes thereon are self explanatory and hence do not call for any
further comments under Section 134 of the Companies Act, 2013.
AUDIT COMMITTEE
The Company has constituted Audit Committee, pursuant to the provisions
of Section 177 of the Companies Act, 2013 and provisions of the Listing
Agreement. The Composition, Scope and Powers of Audit Committee
together with details of meetings held during the period under review
forms part of Corporate Governance Report.
COST AUDITOR
During the year your Company has appointed M/s Vijay P. Joshi &
Associates, Indore as Cost Auditor of the Company.
PUBLIC DEPOSITS
Your Company has not accepted any deposits within the meaning of
Section 73 of the Companies Act, 2013 and the rules made there under.
CODE OF CONDUCT
The Board has laid down a code of conduct for Members of the Board and
Senior Management personnel of the Company. Members of the Board and
Senior Management have affirmed compliance with the said code of
conduct for the Financial Year 2013-14.
INDUSTRIAL RELATIONS
The Board is pleased to inform you that Industrial relations have
continuously been cordial at all levels throughout the year. The Board
of Directors place on record their deep appreciation for the sincere,
devoted and dedicated team work of all employees at all levels to meet
the quality, cost and delivery requirements of the customers
PARTICULARS OF EMPLOYEES
There are no employees who come under the provisions of Section 134 of
the Companies Act, 2013 read with Companies (Particulars of Employees)
Rules, 1975
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING
AND OUTGO
These fields continue to be the areas for improvement and of major
progress. Keeping in view the escalation in energy cost, our
organization is continuously endeavoring to find new and better ways
for optimization of energy cost in its various manufacturing operations
In compliance with Section 134 of the Companies Act, 2013, read with
the Companies (Disclosures of Particulars in the Report of Board of
Directors) Rules, 1988, statement giving information regarding Energy
Conservation, Technology
Absorption and Foreign Exchange earnings and out go is given I in
Annexure- A forming part of this Annual Report.
DIRECTORS'' RESPONSIBILITY STATEMENT
The Directors confirm:
1. that in the preparation of annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departure.
2. that the Directors have selected such accounting policies and have
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.
3. that the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
4. that the Directors have prepared the annual accounts on a going
concern basis.
REPORT ON CORPORATE GOVERNANCE
As required under Clause 49 of the Listing Agreement with the Stock
Exchanges, the Corporate Governance Report forms part of the Annual
Report as Annexure -B. Your Company is in full compliance with the
requirements and disclosures as stated therein. A certificate from the
Practicing Company Secretary confirming compliance of the Corporate
Governance is appended to the Report on Corporate Governance.
REPORT ON MANAGEMENT DISCUSSION AND ANALYSIS
The report on Management Discussion and Analysis forms part of the
Annual Report as Annexure - C
DEMATERIALISATION
The equity shares of your Company are available for dematerialization
with both NSDL and CDSL under ISIN NE060J01017. As on 31st March 2014,
95.47% equity shares are in Demat form and remaining 4.53 % equity
shares are in physical form ELECTRONIC REGISTRAR
Our registrar for electronic connectivity with the National Securities
Depository Limited (NSDL) and Central Depository Services Limited
(CDSL) is M/s. Link Intime India Private Limited, Mumbai (Formerly M/s
Intime Spectrum Registry Limited)
HUMAN RESOURCE MANAGMENT
Human Resource plays vital role in your company. If Finance is the
blood of any organization then Human Resource is not less than pulse
which keeps running production by their hard work day and night. Your
company has performance management process to motivate people to give
their best output and encourages innovation and meritocracy. Your
Company has continued to maintain cordial and harmonious relation with
employees and the board places on record their appreciation and sincere
thanks towards their contribution to the Company''s performance during
the year.
APPRECIATION
The Board takes this opportunity to express its sincere appreciation
for the excellent support and corporation received from company''s
bankers, investors, customers, suppliers, statutory authorities for
their consistent support to the Company.
The Directors also sincerely acknowledge the outstanding support and
services of the workers, staff and executives of the Company, which
have together contributed to the efficient operations and management of
the Company.
FOR AND ON BEHALF OF THE BOARD
sd/- sd/-
Whole Time Director Whole Time Director
Place: Pithampur
Date: 12th August, 2014
Mar 31, 2013
To, The Members,
The Board of Directors presents its Twentieth Directors'' Report on
Company''s business and operations together with the Audited Financial
Statements for the year ended 31st March 2013.
FINANCIAL RESULTS AND APPROPRIATION
(Rs. in million)
Standalone Consolidated
Particulars 2012-13 2011-12 2012-13 2011-12
Sales & other incomes 8668.33 6227.83 9742.97 7471.90
Profit before interest,
depreciation & Tax 1295.72 1071.64 1335.92 1162.23
Profit before Tax 451.86 448.46 434.51 490.48
Profit after Tax 360.10 343.60 338.70 378.39
Profit for the year /
Balance available for 276.36 343.60 259.12 378.04
Appropriation
Less: Appropriation
Proposed dividend
on equity shares & tax 26.71 25.25 26.71 25.25
Equity dividend and
tax of earlier year 0.02 0.02
Surplus carried to
Balance Sheet 249.63 318.35 232.39 352.79
FINANCIAL PERFORMANCE HIGHLIGHTS
During the period under review, Standalone Sales and other incomes of
the Company stood at Rs.8668.33 Million as against that of Rs.6227.83
Million in the previous year showing a growth of 39.19%. Company''s
Profit before interest, depreciation and tax increased to Rs.1295.72
Million from Rs.1071.64 Million at a growth rate of 20.91%.
The Consolidated Sales and other incomes were higher at Rs.9742.97
Million, up by 30.39% as compared to Rs.7471.90 Million in the previous
year. Company''s Consolidated Profit after tax (PAT) decreased by 10.49%
from Rs.378.39 Million to Rs.338.70 Million.
EXPORT SALES
The company recorded a growth of 6.93% in export sales from Rs.4491.48
Million in the previous year to Rs.4802.75 Million in this year.
DIVIDEND
Your Board is pleased to recommend a dividend of 10% on the equity
share capital of the Company i.e. Rs.1.00 per equity share for the year
ended 31st March 2013. The dividend, if approved, will be paid to the
members within the time period stipulated by the Companies Act, 1956.
CREDIT RATING FOR BANKING FACILITIES M/s Credit Analysis & Research
Limited (CARE) on April 2, 2013 has reaffirmed CARE BBB (Triple B )
credit rating for Long Term Facility and CARE A3 for Short Term
Facility which indicates moderate degree of safety regarding timely
servicing of financial obligations.
PRIVATE PLACEMENT AND FCCB ISSUE The Company has issued and allotted
1227273 Equity Shares on Preferential Basis under Private Placement, at
a price of Rs.220/- per Equity Share inclusive of a premium of Rs.210/- per
Equity Share to TPG Growth II SF Pte. Ltd. on 15th March, 2013.
The Company has issued 5.44% Foreign Currency Convertible Bonds (the
"FCCBs") amounting to USD 25 Million. These FCCBs are convertible by
the exercise of option by Bondholder i.e. TPG Growth II SF Pte. Ltd.
into fully paid up equity shares of the Company at any time after the
maturity date i.e. 26th April, 2018.
UTILISATION OF IPO FUND The proceeds from the initial issue of equity
shares have been fully utilized by the Company and same has been
reported in Consolidated Result (unaudited) for the quarter ended on
June 30, 2012. However expected date of installation, trial run and
commercial production for dripper machineries is upto October 2013.
AWARDS & CERTIFICATIONS
During the year both the Prestigious Food Grade Certificate i.e.
American Institute of Baking Certificate (USFDA) and British Retail
Consortium Certificate (BRC) were renewed.
Besides certification above your Company is accredited by ISO 14001:
2004, ISO 22000:2005 & ISO 9001-2008 certifications.
Your Company is a major exporter of FIBC and woven products from India
and has received the Top Exporter Award from the PLEXCOUNCIL, Ministry
of Commerce from 2005-06 to 2010-11.
SUBSIDIARIES
Your Company has three direct subsidiaries and two steps down
subsidiaries. None of the subsidiaries have a negative net worth.
Subsidiaries
M/s Satguru Polyfab Private Limited, Gandhidham M/s Nanofil
Technologies Private Limited, Kolkata M/s Flexiglobal Holdings Limited,
Cyprus
Step- down Subsidiaries
M/s Flexiglobal (UK) Limited, UK
M/s Lakshmi Incorporated, USA
The financial details of the subsidiary companies as well as the extent
of holdings therein are provided in a separate section of this Annual
Report.
The Ministry of Corporate Affairs has, vide General Circular No. 2/2011
dt. 8th February, 2011, granted general exemption for not attaching the
annual accounts of the subsidiary companies with the annual accounts of
holding company.
Pursuant to the said circular, the Board of Directors of your company
in their meeting held on 27th May 2013 has given its consent, for not
attaching the Annual Accounts of the Subsidiary Companies with that of
the Holding Company, instead has published the audited consolidated
financial statements in the Annual Report. Accordingly, the annual
accounts of Subsidiary Companies and all other documents required to be
attached under section 212(1) of the Act to the Balance Sheet of the
Company shall not be attached. However, these documents shall be made
available upon request by any member of the Company interested in
obtaining the same and shall also be kept for inspection at the
Registered Office of your Company and that of Subsidiary Companies
concerned. Further, the financial data of the Subsidiary Companies has
been furnished along with the statement pursuant to section 212 of the
Companies Act, 1956 forming part of this Annual Report.
EMPLOYEE STOCK OPTION SCHEME, 2011 Your Company has allotted 21550
equity shares of Rs.10/- each under ESOP Scheme 2011 in Board Meeting
held on 30th May, 2012. The updates on the stock options are as under:
Total No. of Options Granted 1061750
Less: Options exercised on 9 Feb,2012 19700
Less: Options exercised on 30 May,2012 21550
Less: Options cancelled due to resignation/ 70750
surrender (June,2012)
Less: Options cancelled due to resignation/ 150450
surrender (May,2013)
Total Outstanding Options 799300
DIRECTORS
Mr. Manas Tandon, nominated by TPG Growth II SF Pte. Ltd.
was appointed as Investor Director w.e.f. 15.03.2013.
Mr. Vishwarupe Narain was appointed as Bondholder Nominee Director
w.e.f. 27.05.2013.
There are three directors liable to retire by rotation of the ensuing
Annual General Meeting namely, Mr. Anirudh Sonpal, Mr. Kaushal
Ganeriwal and Mr. Kaushal Kishore Vijayvergiya. Retiring directors
being eligible offer themselves for re- appointment. The board
recommends their reappointment for your approval.
AUDITORS
M/s L.K. Maheshwari & Co, Chartered Accountants, Indore, Statutory
Auditor of the Company holds office upto the conclusion of forthcoming
Annual General Meeting.
Your Company has received a certificate from M/s BSR & Co., Chartered
Accountants regarding their eligibility for appointment as statutory
auditors as per Section 224(1B) of the
Companies Act, 1956 along with their consent for appointment. The
board recommends the appointment of M/s BSR & Co., Chartered
Accountants, Mumbai, as statutory auditors of the Company.
AUDITORS'' REPORT
The observations made in the Auditors'' Report, read with the relevant
notes thereon are self explanatory and hence do not call for any
further comments under section 217 of the Companies Act, 1956.
AUDIT COMMITTEE
The Company has constituted Audit Committee, pursuant to the provisions
of Section 292A of the Companies Act, 1956 and provisions of the
Listing Agreement. The Composition, Scope and powers of Audit Committee
together with details of meetings held during the period under review
forms part of Corporate Governance Report.
COST AUDITOR
During the year your Company has appointed M/s Vijay P. Joshi &
Associates, Indore as Cost Auditor of the Company.
PUBLIC DEPOSITS
Your Company has not accepted any deposits within the meaning of
Section 58A of the Companies Act, 1956 and the rules made there under.
CODE OF CONDUCT
The Board has laid down a code of conduct for Members of the Board and
Senior Management personnel of the Company. Members of the Board and
Senior Management have affirmed compliance with the said code of
conduct for the Financial Year 2012-13.
INDUSTRIAL RELATIONS
The Board is pleased to inform you that Industrial relations have
continuously been cordial at all levels throughout the year. The Board
of Directors place on record their deep appreciation for the sincere,
devoted and dedicated team work of all employees at all levels to meet
the quality, cost and delivery requirements of the customers.
PARTICULARS OF EMPLOYEES
There are no employee who come under the provisions of Section 217(2-A)
of the Companies Act, 1956 read with Companies (Particulars of
Employees) Rules, 1975.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING
AND OUTGO
These fields continue to be the areas for improvement and of major
progress. Keeping in view the escalation in energy cost, our
organization is continuously endeavoring to find new and better ways
for optimization of energy cost in its various manufacturing
operations.
In compliance with Section 217 (1) (e) of the Companies Act, 1956, read
with the Companies (Disclosures of Particulars in the Report of Board
of Directors) Rules, 1988, statement giving information regarding
Energy Conservation, Technology Absorption and Foreign Exchange
earnings and out go is given in Annexure- A forming part of this Annual
Report.
DIRECTORS'' RESPONSIBILITY STATEMENT The Directors confirm:
1. that in the preparation of annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departure.
2. that the Directors have selected such accounting policies and have
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.
3. that the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
4. that the Directors have prepared the annual accounts on a going
concern basis.
REPORT ON CORPORATE GOVERNANCE As required under Clause 49 of the
Listing Agreement with the Stock Exchanges, the Corporate Governance
Report forms part of the Annual Report as Annexure  B. Your Company is
in full compliance with the requirements and disclosures as stated
therein. A certificate from the Practicing Company
Secretary confirming compliance of the Corporate Governance is appended
to the Report on Corporate Governance.
DEMATERIALISATION
The equity shares of your Company are available for dematerialization
with both NSDL and CDSL under ISIN INE060J01017. As on 31st March 2013,
95.10 % equity shares are in Demat form and remaining 4.90 % equity
shares are in physical form.
ELECTRONIC REGISTRAR
Our registrar for electronic connectivity with the National Securities
Depository Limited (NSDL) and Central Depository Services Limited
(CDSL) is M/s. Link Intime India Private Limited, Mumbai (Formerly M/s
Intime Spectrum Registry Limited).
HUMAN RESOURCE MANAGMENT Human Resource plays vital role in your
company. If Finance is the blood of any organization then Human
Resource is not less than pulse which keeps running production by their
hard work day and night. Your company has performance management
process to motivate people to give their best output and encourages
innovation and meritocracy. Your Company has continued to maintain
cordial and harmonious relation with employees and the board places on
record their appreciation and sincere thanks towards their contribution
to the Company''s performance during the year.
APPRECIATION
The Board takes this opportunity to express its sincere appreciation
for the excellent support and corporation received from company''s
bankers, investors, customers, suppliers, statutory authorities for
their consistent support to the Company.
The Directors also sincerely acknowledge the outstanding support and
services of the workers, staff and executives of the Company, which
have together contributed to the efficient operations and management of
the Company.
FOR AND ON BEHALF OF THE BOARD
Whole Time Director Whole Time Director
Place: Pithampur
Date: 2nd August, 2013
Mar 31, 2012
The Members,
The Board of Directors present their Nineteenth Directors' Report on
Company's business and operations together with the Audited Financial
Statements for the year ended 31st March 2012.
Financial Results and Appropriation
Particulars 2011-12 2010-11
(Rs in Million) (Rs in Million)
Standalone Standalone
Sales (Including other income) 6227.83 4903.68
Profit before interest,
depreciation & Tax 1071.64 693.73
Profit before Tax 448.46 317.63
Profit after Tax 343.60 274.36
Profit for the year 343.60 274.36
Add: Balance brought forward from
Previous Year - -
Balance available for Appropriation 343.60 274.36
Appropriation
Proposed dividend 21.73 17.21
Tax on dividend 3.52 2.86
Transfer to general reserve - -
Surplus carried to Balance Sheet 318.35 254.29
Financial Highlights and Operations
During the period under review, Sales and other income stood at Rs.
6227.83 Millions as against that of Rs. 4903.68 Millions in the
previous year showing a growth of 27%. Company's Profit before
interest, depreciation and tax increased to Rs. 1071.64 Millions from
Rs. 693.73 Millions in the previous year showing a growth of 54.47%.
During the period under review, Consolidated Sales and other income of
your Company stands at Rs.7471.90 Millions as against that of Rs.
5793.92 Millions in the previous year showing a growth of 28.96%.
Company's Consolidated Profit after tax (PAT) increased to Rs. 378.39
Millions from Rs. 294.07 Millions in the previous year showing a growth
of 28.67%.
Export Sales
During the period export sales increased by Rs. 85.38 Million i.e.23.47
% and stood at Rs. 449.14 Millions as against Rs. 363.76 Million in
the previous year.
Dividend
Your Board of Directors are pleased to recommend a dividend of 10% on
the equity share capital of the Company i.e. Rs. 1.00 per equity share
for the year ended 31st March 2012. The dividend, if approved, will be
paid to the members within the time period stipulated by the Companies
Act, 1956.
Initial Public Offer
During the year your company got listing of its equity shares on both
BSE and NSE.
Initial Public Offer of your Company was opened from 29th September
2011 to 4th October 2011 for QIB and 5th October 2011 for others.
There was a fresh issue of 4500000 equity shares and Offer for sale of
2250000 equity shares from Clearwater Capital Partners (Cyprus) Ltd. of
Rs. 10/- each at Rs. 155/- per share.
Credit Analysis & Research Limited assigned Credit Rating 3 out of 5 to
Company's IPO.
Equity shares of your Compny listed from 19th October 2011 at BSE and
NSE.
Credit Rating For Banking Facilities
M/s Credit Analysis & Research Limited (CARE) improved credit rating
for Long Term and Facility as well as Short Term Facility for the
Financial Year 2011-12 from CARE BBB (Triple B) and CARE PR 3 to CARE
BBB (Triple B ) and CARE A3 respectively, which indicates moderate
degree of safety regarding timely servicing of financial obligations.
Dripper Project
Your Company has entered in new era of manufacturing of Drippers at
Kashipur unit under Drip Irrigation System. The initial capacity of
dripper project envisaged in Initial Public Offer document was 811 MT,
however in view of initial encouraging results and better prospects
ahead, it is planned to increase capacity further.
Utilisation of IPO Fund
During the year your Company raised fund through Initial Public Offer
for objects as mentioned in Prospectus and has utilised major amount
towards the object. Through IPO funds, there will be expansion of FIBC
manufacturing capacity by 1000 MT at SEZ, 2000 MT at DTA Unit Pithampur
and 811 MT at Kashipur Unit.
Awards & Certifications
Your Company has been awarded with both the prestigious Food Grade
Certificate i.e. American Institute of Baking Certificate (USFDA) and
British Retail Consortium Certificate (BRC). During the year under
review both the certifications have been renewed.
Besides certification from American Institute of Baking (USFDA), USA &
British Retail Consortium (BRC), UK, your Company is accredited by ISO
14001: 2004, ISO 22000:2005 & ISO 9001-2008 certifications.
Your Company is a major exporter of FIBC and woven products from India
and has received the Top Exporter Award from the PLEXCOUNCIL, Ministry
of Commerce from 2005-06 to 2010-11.
Subsidiaries
Your Company has three direct subsidiaries and two steps down
subsidiaries. None of the subsidiaries have a negative net worth.
Subsidiaries
1. M/s Satguru Polyfab Private Limited, Gandhidham
2. M/s Nanofil Technologies Private Limited, Kolkata
3. M/s Flexiglobal Holdings Limited, Cyprus
Step-down Subsidiaries
1. M/s Flexiglobal (UK) Limited, UK
2. M/s Lakshmi Incorporated, USA
The financial details of the subsidiary companies as well as the extent
of holdings therein are provided in a separate section of this Annual
Report.
The Ministry of Corporate Affairs has, vide General Circular No.
2/2011 dt. 8th February, 2011, granted general exemption for not
attaching the annual accounts of the subsidiary companies with the
annual accounts of holding company.
Pursuant to the said circular, the Board of Directors of your company
in their meeting held on 30th May 2012 has given their consent, for not
attaching the Annual Accounts of the Subsidiary Companies with that of
the Holding Company.
Accordingly, Balance Sheet, Profit & Loss Account, Directors' Report
and Auditors' Report of the Subsidiary Companies and other documents
required to be attached under section 212(1) of the Act to the Balance
Sheet of the Company shall not be attached. However, these documents
shall be made available upon request by any member of the Company
interested in obtaining the same and shall also be kept for inspection
at the Registered Office of your Company and that of Subsidiary
Companies concerned. Further, the financial data of the Subsidiary
Companies have been furnished along with the statement pursuant to
section 212 of the Companies Act, 1956 forming part of this Annual
Report.
Changes in Share Capital
During the year the Company allotted 45, 00,000 Equity Shares of the
Face Value of Rs. 10/- each in IPO and 19700 equity shares of Rs. 10/-
each under ESOP Scheme 2011 in Board Meeting held on 9th February,
2012, consequently the number of issued, subscribed and paid up capital
increased from 17212110 Equity Shares to 21731810 Equity Shares of Rs.
10/- each aggregating Rs. 217,318,100/-.
Reconciliation of options is as under:
Particulars Number of Shares
In-principle approval taken 1075000
from BSE and NSE
Less: No. of Shares allotted & listed 19700
Less: No. of options/ shares lapsed 70750*
(due to Resignation etc.)
as on 31st March, 2012*
Balance outstanding 984550
* * With reference to clause No. 3.3 of ESOP Scheme 2011, the Employee
Stock Options that expires/ lapse/ get cancelled shall become available
for future grants, subject to compliance with the applicable laws.
Directors
Mr. Kaushal Ganeriwal was appointed as Director in place of Mr. Aswini
Sahoo, due to change in nomination by Clearwater Capital Partners,
(Cyprus) Ltd. w.e.f. 09.02.2012 pursuant to Section 260 of the
Companies Act, 1956.
Mr. Saurabh Kalani, Mr. Kaushal Kishore Vijayvergiya and Mr. Manoj
Kumar Dwivedi are appointed as additional director by the Board of
Directors of the Company at their meeting held on 30th May, 2012. They
were appointed as Whole Time Directors in the same meeting. They are
liable to retire by rotation.
Mr. Pawan Kumar Jain and Mr. Ravindra Kumar Chourasiya also tendered
their resignation which were accepted by Board of Directors w.e.f.
30.05.2012.
There are two directors who are liable to retire by rotation for the
financial year under review namely, Mr. Anirudh Sonpal and Mr. Kevan
John Upperdine. Mr. Anirudh Sonpal and Mr. Kevan John Upperdine are
being eligible and offer themselves for re- appointment. The board
recommends their reappointment for your approval.
Auditors
M/s L.K. Maheshwari & Co, Chartered Accountants, Indore, Statutory
Auditor of the Company hold office upto the conclusion of forthcoming
Annual General Meeting and being eligible, offer themselves for
re-appointment. Your Company has received a certificate from M/s L.K.
Maheshwari & Co, Chartered Accountants regarding their eligibility for
appointment as statutory auditors as per Section 224(1B) of the
Companies Act, 1956 along with their consent for reappointment. The
board recommends the re-appointment of M/s L.K. Maheshwari & Co,
Chartered Accountants, Indore, as statutory auditors of the Company.
Auditors' Report
The observations made in the Auditors' Report, read with the relevant
notes thereon are self explanatory and hence do not call for any
further comments under section 217 of the Companies Act, 1956.
Public Deposits
Your Company has not accepted any deposits within the meaning of
Section 58A of the Companies Act, 1956 and the rules made there under.
Code of Conduct
The Board has laid down a code of conduct for prohibition of Insider
Trading to all Board members and Senior Management of the Company.
Members of the Board and Senior Management have affirmed compliance
with the said code of conduct for the Financial Year 2011-12.
Industrial Relations
The Board is pleased to inform you that Industrial relations have been
continued cordial at all levels throughout the year. The Board of
Directors place on record their deep appreciation for the sincere,
devotion and dedicated team work of all employees at all levels to meet
the quality, cost and delivery requirements of the customers.
Particulars of Employees
There are no employees who come under the provisions of Section
217(2-A) of the Companies Act, 1956 read with Companies (Particulars of
Employees) Rules, 1975.
Energy Conservation, Technology Absorption and Foreign Exchange Earning
and Outgo
These fields continue to be the areas for improvement and of major
progress. Keeping in view the escalation in energy cost, our
organization is continuously endeavoring to find new and better ways
for optimization of energy cost in its various manufacturing
operations.
In compliance with Section 217 (1) (e) of the Companies Act, 1956, read
with the Companies (Disclosures of Particulars in the Report of Board
of Directors) Rules, 1988, statement giving information regarding
Energy Conservation, Technology Absorption and Foreign Exchange
earnings and out go is given in Annexure- A forming part of this Annual
Report.
Directors' Responsibility Statement
The Directors confirm:
1. that in the preparation of annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departure.
2. that the Directors have selected such accounting policies and have
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.
3. that the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
4. that the Directors had prepared the annual accounts on a going
concern basis.
Corporate Governance
The Board is glad to inform you that your Company is professionally
managed company and complied with all mandatory provisions of Corporate
Governance as prescribed under the Listing Agreement of Stock Exchanges
with which the Company listed on 19th day of October, 2011.
As per requirement of Clause 49 of Listing Agreement a brief
report on Corporate Governance along with Certificate from Practicing
Company Secretary is annexed herewith for the information of the
members as an Annexure - B in this Annual Report.
Dematerialisation
The equity shares of your Company are available for dematerialization
with both NSDL and CDSL and the ISIN is INE060J01017. As on 31st March
2012, 93.80% equity shares are in Demat form and remaining 6.20 %
equity shares are in physical form.
Electronic Registrar
Our registrar for electronic connectivity with the National Securities
Depository Limited (NSDL) and Central Depository Services Limited
(CDSL) is M/s. Link Intime India Private Limited, Mumbai (Formerly M/s
Intime Spectrum Registry Limited).
Human Resource Managment
Human Resource plays vital role in your company. If Finance is the
blood of any organization then Human Resource is not less than pulse
which keeps running production by their hard work day and night. Your
company has performance management process to motivate people to give
their best output and encourages innovation and meritocracy. Your
Company has continued to maintain cordial and harmonious relation with
employees and the board places on record their appreciation and sincere
thanks towards their contribution to the Company's performance during
the year.
Appreciation
The Board takes this opportunity to express its sincere appreciation
for the excellent support and cooperation received from Company's
bankers, investors, financial institutions, shareholders, customers,
suppliers, statutory authorities for their consistent support to the
Company.
The Directors also sincerely acknowledge the outstanding support and
services of the workers, staff and executives of the Company, which
have together contributed to the efficient operation and management of
the Company.
For and on Behalf of The Board
Managing Director Whole Time Director
Place: Pithampur
Date : 30th May, 2012
Mar 31, 2011
To The Members of Flexituff International Limited
We are pleased to present the Eighteenth Directors' Report on your
Company's business and operations together with the Audited Financial
Statements consolidated and the auditor's report of your Company for
the year ended 31st March 2011.
FINANCIAL RESULTS AND APPROPRIATION (Consolidated)
Particulars 2010-11 2009-10
(Rs in Million) (Rs in Million)
Sales
Profit before interest,
depreciation & Tax 768.64 422.37
Profit before Tax 342.38 89.78
Profit after Tax 288.81 31.91
Prior Period Adjustment (5.26) (6.02)
Profit for the year 309.67 45.97
Add: Balance brought forward
from Previous Year 204.71 181.94
Balance available for Appropriation 514.38 227.92
Appropriation
Proposed dividend 173.21 11.32
Tax on dividend 0.28 0.18
Transfer to general reserve 0.00 10.00
Surplus carried to Balance Sheet 380.97 204.71
REVIEW OF OPERATIONS
Financial Year 2010-11 during the period consolidated sales and other
income stood at Rs. 5,793.93 Millions as against that of Rs 3 220 96
Millions in the previous year showing a growth of 79.88% .Company's
consolidated Profit before interest, depreciation and tax increased to
Rs. 768.64 Millions from Rs. 422.37 Millions in the previous year
showing a growth of 81.98%
EXPORTS
During the period consolidated export sales increased by Rs. 2,218.33
Million i.e. 101.52 % and stood at Rs. 4,403.55 Millions as against Rs.
2,185.22 Million in the previous year.
APPROPRIATIONS
Dividend
Your Board of Directors are pleased to recommend a dividend of 10% on
the equity share capital of the Company i.e. Rs. 1.00 per equity share
for the year ended 31st March 2011. The dividend, if approved, will be
paid to the members within the time period stipulated by the Companies
Act, 1956.
AWARDS & CERTIFICATIONS
Your Company has been awarded with both the prestigious Food Grade
Certificate i.e. American Institute of Baking Certificate (USFDA) and
British Retail Consortium Certificate (BRC). During the year under
review both the certifications have been renewed.
Besides certification from American Institute of Baking (USFDA), USA&
British Retail Consortium (BRC), UK, your Company is accredited by ISO
14001:2004, ISO 22000:2005 & ISO 9001 -2008 certifications.
Your Company is a major exporter of FIBC and woven products from India
and has received the Top Exporter Award from the PLEXCOUNCIL, Ministry
of Commerce from 2005-06 to 2008-09.
SUBSIDIARIES
Your Company has three direct subsidiaries and two step down
subsidiaries. None of the subsidiaries have a negative net worth.
Direct Subsidiaries
1. M/s Satguru Polyfab Private Limited, Gandhidham
2. M/s Nanofil Technologies Private Limited, Kolkata
3. M/s Flexiglobal Holdings Limited, Cyprus
Indirect Subsidiaries
1. Flexiglobal (UK) Limited
2. Lakshmi Incorporated.
Statement pursuant to section 212 of the Companies Act 1956, the
balance sheets of all subsidiaries are attached and form a part of the
Annual Report 2011.
DISASSOCIATION FROM ECO POLYMERS LIMITED
During the year in review, your Company had a subsidiary in the name of
Eco Polymers Limited which was incorporated in Bangladesh. However, as
no business was conducted in this company and for lack of business
prospects in Bangladesh, the Company disassociated itself from the said
company on September 29, 2010 by transferring its entire shareholding
in Eco Polymers Limited to a third party for a consideration Rs. 0.44
million.
CONVERSION OF SHARE WARRANTS INTO EQUITY SHARES
During the year under review, Kalani Industries Private Limited, one of
our Promoters, exercised its option to convert 1,068,000 convertible
share warrants into equity shares in the ratio of 1:1 i.e. 1 equity
share for every one share warrant held. Accordingly, upon conversion,
1,068,000 equity shares were issued and allotted by the Company in
favour of Kalani Industries Private Limited. Presently, there are no
outstanding share warrants pending conversion.
CONVERSION OF FULLY CONVERTIBLE DEBENTURES INTO EQUITY SHARES
Your Company allotted 92 (ninety two) 0% Fully Convertible Debentures
(FCDs) having a face value of Rs. 5,000,000 per debenture in favour of
Clearwater Capital Partners (Cyprus) Limited at par, aggregating to Rs,
460,000,000. During the year under review, Clearwater Capital Partners
(Cyprus) Limited exercised its option to convert all 92 FCDs into
equity shares and accordingly 4,486,492 equity shares were issued at a
conversion price at Rs. 102.53 /- per share.
DIRECTORS
During the year under review, Mr. Anirudh Sonpal was appointed as an
Additional Director pursuant to Section 260 of the Companies Act, 1956
and Articles of Association of the Company holding office upto the date
of the next Annual General Meeting. It is proposed to appoint him as
director of the Company, liable to retire by rotation, at the ensuing
Annual General Meeting.
During the year under review Mr. Sunil Bhargava resigned from the post
of Director of the Company w.e.f. 30.09.2010. The Board places on
record it's appreciation for the contribution made by Mr. Bhargava
during his tenure as a Director.
There are two directors who are liable to retire by rotation for the
financial year under review namely, Mr. Pawan Kumar Jain and Mr.
Ravindra Chourasiya. Mr. Pawan Kumar Jain and Mr. Ravindra Chourasiya
are being eligible and offer themselves for re-appointment. The board
recommends their reappointment for your approval.
AUDITORS
The term of appointment of M/s L.K. Maheshwari &Co, Chartered
Accountants, Indore, Statutory Auditor of the Company will expire at
the ensuing Annual General Meeting. The Company has received a
certificate from M/s L.K. Maheshwari & Co, Chartered Accountants
regarding their eligibility for appointment as statutory auditors as
per Section 224(1 B) of the Companies Act, 1956 along with their
consent for reappointment. The board recommends the re-appointment of
M/s L.K. Maheshwari & Co, Chartered Accountants, Indore, as statutory
auditors of the Company for the year 2011 -12.
AUDITORS'REPORT
The observations made in the Auditors' Report, read with the relevant
notes thereon are self explanatory and hence do not call for any
further comments under section 217 of the Companies Act, 1956.
PUBLIC DEPOSITS
Your Company has not accepted any deposits within the meaning of
Section 58A of the Companies Act, 1956 and the rules made there under.
PARTICULARS OF EMPLOYEES
There are no employees who come under the provisions of Section
217(2-A) of the Companies Act, 1956 read with Companies (Particulars of
Employees) Rules, 1975.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING
AND OUTGO
These fields continue to be the areas for improvement and major
progress. Keeping in view the escalation in energy cost, our
organization is continuously endeavoring to find new and better ways
for optimization of energy cost in its various manufacturing
operations.
In compliance with Section 217 (1) (e) of the Companies Act, 1956, read
with the Companies (Disclosures of Particulars in the Report of Board
of Directors) Rules, 1988, statement giving information regarding
Energy Conservation, Technology Absorption and Foreign Exchange
earnings and out go is given in Annexure-Forming part of this Annual
Report.
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors confirm:
1. that in the preparation of annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departure.
2. that the Directors have selected such accounting policies and have
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.
3. that the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
4. that the Directors had prepared the annual accounts on a going
concern basis.
INITIAL PUBLIC OFFER
Your Company is proposing, subject to receipt of requisite approvals
and market conditions, to raise capital through an initial public
offering (which comprises of fresh issue of equity shares by the
Company and offer for sale by its existing shareholder- Clearwater
Capital Partners (Cyprus) Limited). The objects of the proposed IPO is
(i) expansion of manufacturing facilities at SEZ and DTA units at
Pithampur, (ii) setting up of dripper project at Kashipur, working
capital requirements; and (iii) general corporate purposes. In this
regard, the Company had filed the Draft Red Herring Prospectus (DRHP)
with the Securities and Exchange Board of India (SEBI) on March 29,
2011. The copy of the DRHP is available on the websites of the SEBI at
www.sebi.gov.in, the book running lead manager, www.csinga.com and our
Company at www.flexituff.com.
The SEBI has issued its observations on the DRHP vide its letter dated
June 14,2011. The Company has also obtained the in- principle listing
approvals from Bombay Stock Exchange Limited (BSE), National Stock
Exchange of India Limited (NSE) on May 19, 2011 and June 10, 2011
respectively. The Company is in process of filing the in-seriatim reply
in response to observations issued by SEBI.
CORPORATE GOVERNANCE
As your Company's shares are not listed on any stock exchange, the
provisions of the listing agreement, including those relating to
corporate governance, are not applicable. However, in view of the
Company's proposed IPO, and as required by the Securities Exchange
Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2009, your Company has complied with the corporate
governance requirements contained in the equity listing agreement (as
applicable), particularly those relating to composition of board of
directors, constitution of committees such as Audit Committee,
Shareholder / Investor Grievance Committee, etc. In addition, our
Company intends to adopt a code of conduct for prevention of insider
trading.
Currently, our Board comprises of seven Directors, of which the
Chairman is a Non-Executive and Independent Director. In compliance
with the requirements of Clause 49 of the Listing Agreement, our
Company has one executive director and six non-executive directors of
whom three are independent directors.
Abrief report on your Company's compliance with the corporate
governance norms is separately provided as an Annexure - B in this
Annual Report.
DEMATERIALISATION
The equity shares of your Company are available for dematerialisation
with both NSDL and CDSL and the ISIN is INE060J01017.92.17 % equity
shares are in Demat form and remaining 7.83 % equity shares are kept in
physical form.
ELECTRONIC REGISTRAR
Our registrar for electronic connectivity with the National Securities
Depository Limited (NSDL) and Central Depository Services Limited
(CDSL) is M/s. Link Intime India Private Limited, Mumbai (Formerly M/s
Intime Spectrum Registry Limited).
EMPLOYEE STOCK OPTION SCHEME
During the year under review your Company has instituted the Employee
Stock Option Scheme 2011, pursuant to the approval of the shareholders.
Pursuant to the provisions of the Employee Stock Option Scheme
2011,1,061,750 options were issued to eligible employees of the
Company. These options are convertible into similar number of equity
shares of face value of Rs.10 each of the Company in accordance with
the provisions of ESOP 2011. The Employee Stock Option Scheme 2011 is
in compliance with the provisions of the SEBI (Employee Stock Option
Scheme and Employee Stock Purchase Scheme) Guidelines, 1999.
HUMAN RESOURCE MANAGEMENT
Human Capital has always been amongst the most important and valuable
assets of the Company. Your Company has enhanced its performance
management process that motivates people to take ownership of their own
performance and encourages innovation and meritocracy. Your Company has
continued to maintain cordial and harmonious relation with employees
and the board places on record their appreciation and sincere thanks
towards their contribution to the Company's performance during the
year.
ACKNOWLEDGEMENT
Your Directors wish to express their deep grateful appreciation for the
valuable support and co-operation received from the shareholders and
other stakeholders including various statutory authorities and society
at large. Your director also place on record, their appreciation for
the contribution and hard work of employees of the Company and its
subsidiaries at all levels.
FOR AND ON BEHALF OF THE BOARD
Place: Mumbai Director Director
Date : 18.06.2011
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