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Directors Report of National Plastic Industries Ltd.

Mar 31, 2014

The Members,

NATIONAL PLASTIC INDUSTRIES LIMITED

The Directors present their 27th Annual Report together with the Audited Accounts of the Company, for the year ended 31st March, 2014.

FINANCIAL RESULTS (Rs. in Lacs)

Particulars 2013-2014 2012-2013

Sales & Other Income 8937.45 7297.66

(Loss) / Gross Profit before Depreciation & Interest 846.00 306.79

Less : Depreciation 230.85 216.67

Interest 459.69 424.12

(Loss) / Profit for the year 155.46 (334.00)

Less : Prior Period Adjustment 14.82 -

Less : Tax Provision - -

Less : Deferred Tax Liabilities 43.35 (108.22)

(Loss) / Net Profit after Tax 97.29 (225.78)

Add : Balance brought forward from previous year (Adjusted) 98.92 324.70

Balance Available for appropriation 196.20 98.92

Appropriation:

Proposed Dividend - -

Dividend Tax - -

Transfer to General Reserve - -

Balance c/f to Balance Sheet 196.20 98.92

DIVIDEND

In order to conserve the resources, and to improve the financial position of the Company, the Directors of your Company do not recommend any dividend for the current year.

YEAR IN RETROSPECT

The year 2013 – 2014 was indeed a challenging year for the Company due to the volatile market conditions. High volatility in raw material prices and exchange rates added to the product cost leading to moderate increase in sales volumes. Persistent efforts have been made by the Company to maintain higher sales volume and reduce finance costs. There was intense competition both from the organized market players as well as the local unorganized manufacturers.

The Company is taking all necessary steps to reduce wastages and make production cost efficient and will surely be able to achieve its targets.

During the year under review Net Sales were Rs. 74.95 Crores as against Rs. 60.17 Crores in the previous year. In spite of the increased raw material prices, high inflation, & volatile market scenario, the company has been able to achieve net profit of Rs. 97.29 Lacs. The Company has endeavored to bring out new & unique moulded furniture for improving the sales of the products.

The PVC flooring Mats business in Nellore, Andhra Pradesh in the southern part of the country under the brand name INSTA has progressed fairly well during the current year.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to Section 217 (2AA) of the Companies Act, 1956, your Directors confirm that:

i. in the preparation of the annual accounts for the year ended 31st March, 2014, the applicable accounting standards have been followed along with proper explanations relating to material departures, if any;

ii. they 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 as at 31st March, 2014 and of the profits of the Company for the financial year ended 31 st March, 2014;

iii. they 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; and

iv. the annual accounts have been prepared on a going concern basis.

CORPORATE GOVERNANCE

A report on Corporate Governance as stipulated under clause 49 of the Listing Agreement with the Stock Exchange forms part of the Annual Report.

The Certificate from the Auditor of the Company confirming compliance with the conditions of the Corporate Governance as stipulated under the aforesaid Clause 49 is attached to this Report. Further, a separate Management Discussion and Analysis report also forms part of this Annual Report.

COST COMPLIANCE

Pursuant to Sec. 209 (1)(d) of the Companies Act, 1956, Cost Compliance Report for the financial year ended 31st March, 2013 was submitted to the Central Government on 20th December, 2013.

COST AUDIT

The Cost Audit report for the financial year ended 31st March, 2014 will be filed within the prescribed time period.

FIXED DEPOSIT

The Company has not accepted any Fixed Deposit covered under Section 58A of the Companies Act, 1956 from the Shareholders or the Public during the year.

INSURANCE

All the insurable interests of the company including inventories, building, plant & machinery etc. are adequately insured.

DEMISE OF CHAIRMAN

The Board regretfully reports the sad demise of its Founder Chairman, Mr. Vinod V. Parekh after a prolonged illness on 12th March, 2014. The Board further expresses its heartfelt condolences and would like to place on record its sincere and deep appreciation for his invaluable guidance and contribution from time to time in the growth of the Company.

BOARD OF DIRECTORS

Mr. Dhirajlal J. Shanghavi and Mr. Ashwin J. Goradia are Independent Directors of the Company as per Clause 49 of the Listing Agreement and were appointed under the Companies Act, 1956 as Directors liable to retire by rotation. Pursuant to the provisions of Section 149 and 152 of the Companies Act, 2013, it is proposed that these Directors be appointment as Independent Directors of the Company, to hold office for a term of five consecutive years up to 31st March, 2019 at the forthcoming Annual General Meeting.

The Company has received declarations from all the Independent Directors of the Company confirming that they meet with the criteria of independence as prescribed both under sub-section (6) of Section 149 of the Companies Act, 2013 and under Clause 49 of the Listing Agreement with the Stock Exchange.

AUDITORS

M/s. Sheth Doctor & Associates, Chartered Accountants, Statutory Auditors of the Company, hold office until the conclusion of the forthcoming Twenty Seventh Annual General Meeting of the Company and being eligible, offer themselves for re-appointment.

The Company has received letter from the auditor to the effect that his re-appointment, if made, would be within the prescribed limits under Section 141(3)(g) of the Companies Act, 2013 and that they are not disqualified for re- appointment.

The Notes on Financial Statements referred to in the Auditors'' Report are self-explanatory and do not call for any further comments.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:

Information as per Section 217 (1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 form part of this report and are set out in the annexure "A" attached herewith.

EMPLOYEES

None of the employees of the Company were drawing a remuneration exceeding Rs. 60,00,000/– per annum or Rs. 5,00,000/– per month or part thereof. Hence, no particulars of employees as per Section 217 (2A) of the Companies Act, 1956 are furnished.

Your Directors value the commitment of the employees towards the Company and appreciate their valuable contributions for the progress and growth of the Company.

ACKNOWLEDGEMENTS

Your Directors would like to place on record their gratitude for the co-operation and support they have received from the State Government Authorities, Statutory Authorities, Local Bodies, Banks and Financial Institutions and other Regulatory agencies during the year. Your Directors warmly acknowledge the faith and confidence reposed in the Company by its channel partners, dealers and customers in supporting its business activities and growth. Your Directors express their gratitude to the other business associates of the Company for their unstinting support. Your Directors are thankful to the Members for extending the trust and confidence shown.

For and on behalf of the Board of Directors

Place: Mumbai Paresh V. Parekh Ketan V. Parekh

Date : 5th August, 2014 Managing Director Joint Managing Director


Mar 31, 2013

To, The Members of NATIONAL PLASTIC INDUSTRIES LIMITED

The Directors present their 26th Annual Report together with the Audited Accounts of the Company, for the year ended 31st March, 2013.

FINANCIAL RESULTS (Rs. in Lacs)

Particulars 2012-2013 2011-2012

Sales & Other Income 6869.36 6514.42

(Loss) / Gross Profit before Depreciation & Interest 306.79 463.91

Less : Depreciation 216.68 157.38

Interest 424.12 219.05

(Loss) / Profit for the year (334.01) 87.48

Less : Prior Period Adjustment - -

Less : Tax Provision - -

Less : Deferred Tax Liabilities (108.22) (23.10)

(Loss) / Net Profit after Tax (225.79) 64.38

Add : Balance brought forward from previous year (Adjusted) 324.72 313.39

Balance Available for appropriation 98.93 377.77

Appropriation:

Proposed Dividend - 45.65

Dividend Tax - 7.40

Transfer to General Reserve - -

Balance c/f to Balance Sheet 98.93 324.72

DIVIDEND

In view of the loss, the Directors of your Company do not recommend any dividend for the current year.

YEAR IN RETROSPECT

The year 2012 - 2013 was yet another challenging year for the Company due to the volatile market conditions. Every sector in the Indian economy had witnessed ups and downs in the socio-economic conditions of the country. Every sector was plagued with problems due to high inflation, high interest rates, depreciating rupee and reduction in growth rate of new businesses. The manufacturing industry has also not remained untouched by these volatile conditions. Persistent efforts have been made by the Company to maintain higher sales volume. However, the factors such as steep increase in the raw material prices, finance cost and fluctuations in the Exchange rates added to the product cost, thereby affecting the demand for the product. There was intense competition both from the organized market players as well as the local unorganized manufacturers.

The Company is taking all necessary steps to reduce wastages and make production cost efficient and will surely be able to achieve its targets.

During the year under review Net Sales were Rs. 60.17 Crores as against Rs. 58.05 Crores in the previous year. In view of the rising inflation, steep increase in raw material prices & volatile market scenario, the company has incurred net loss of Rs. 225.79 Lacs. The Company has endeavored to bring out new & unique moulded furniture for improving the sales of the products.

The PVC flooring Mats business in Nellore, Andhra Pradesh in the southern part of the country under the brand name INSTA has received lukewarm response after its launch last year but is expected to pick up pace during the next few years.

FIXED DEPOSIT

The Company has not accepted any Fixed Deposit covered under Section 58A of the Companies Act, 1956 from the Shareholders or the Public during the year.

CORPORATE GOVERNENCE

A report on Corporate Governance as stipulated under clause 49 of the Listing Agreement with the Stock Exchange forms part of the Annual Report.

The Certificate from the Auditor of the Company confirming compliance with the conditions of the Corporate Governance as stipulated under the aforesaid Clause 49 is attached to this Report. Further, a separate Management Discussion and Analysis report also forms part of this Annual Report.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to Section 217 (2AA) of the Companies Act, 1956, your Directors confirm that:

i. in the preparation of the annual accounts for the year ended 31st March, 2013, the applicable accounting standards have been followed along with proper explanations relating to material departures, if any;

ii. they 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 as at 31st March, 2013 and of the loss of the Company for the financial year ended 31st March, 2013;

iii. they 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; and

iv. the annual accounts have been prepared on a going concern basis.

INSURANCE

All the insurable interests of the company including inventories, building, plant & machinery etc. are adequately insured.

BOARD OF DIRECTORS

Mr. Ashwin Goradia, Director of the Company retires by rotation at the forthcoming Annual General Meeting in accordance with the provisions of the Companies Act, 1956 and being eligible, offers himself for re-appointment.

Disclosures as required under provisions of the Listing Agreement forms part of this report.

AUDITORS

Statutory Auditors

M/s. Sheth Doctor & Associates, Chartered Accountants, Statutory Auditors of the Company, hold office until the conclusion of the forthcoming Twenty Sixth Annual General Meeting of the Company and being eligible, offer themselves for re-appointment.

Cost Auditors

The Board of Directors of the Company have appointed, on the recommendations of the Audit Committee, Mr. Chinmay S. Joshi, Practising Cost Accountant as the Cost Auditor of the Company for the Financial Year 2013-14 for auditing the cost accounts in respect of ''Plastic Products'' as required by the Central Government Order dated 6th November, 2012.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:

Information as per Section 217 (1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 form part of this report and are set out in the annexure "A" attached herewith.

EMPLOYEES

None of the employees of the Company were drawing a remuneration exceeding Rs. 60,00,000/ - per annum or Rs. 5,00,000/ - per month or part thereof. Hence, no particulars of employees as per Section 217 (2A) of the Companies Act, 1956 are furnished.

Your Directors value the commitment of the employees towards the Company and appreciate their valuable contributions for the progress and growth of the Company.

ACKNOWLEDGEMENTS:

Your Directors would like to place on record their gratitude for the co-operation and support they have received from the State Government Authorities, Statutory Authorities, Local Bodies, Banks and Financial Institutions and other Regulatory agencies during the year. Your Directors warmly acknowledge the faith and confidence reposed in the Company by its channel partners, dealers and customers in supporting its business activities and growth. Your Directors express their gratitude to the other business associates of the Company for their unstinting support. Your Directors are thankful to the Members for extending the trust and confidence shown.

For and on behalf of the Board of Directors

Place: Mumbai Paresh V. Parekh

Date: 14th August, 2013 Managing Director


Mar 31, 2012

To, The Members of NATIONAL PLASTIC INDUSTRIES LIMITED

The Directors present this 25th Annual Report of the Company together with the Audited Accounts, for the year ended 31st March, 2012.

FINANCIAL RESULTS: (Rs in Lacs)

Particulars 2011-12 2010-11

Sales & Other Income 6514.42 6250.93

(Loss) / Gross Profit before Depreciation & Interest 463.91 554.17

Less : Depreciation 157.38 136.34

Interest 219.05 121.23

(Loss) / Profit for the year 87.48 296.60

Less: Prior Period Adjustment - -

Less : Tax Provision - (0.26)

Less: Deferred Tax Liabilities (23.10) (91.55)

(Loss)/ Net Profit after Tax 64.38 204.79

Add : Balance brought forward from previous year (Adjusted) 313.39 214.71

Balance Available for appropriation 377.77 419.50 Appropriation

Proposed Dividend 45.65 91.30

Dividend Tax 7.40 14.81

Transfer to General Reserve - -

Balance C/f to Balance Sheet 324.72 313.39

DIVIDEND:

The Board of Directors of your Company are pleased to recommends a Final Dividend of 0.50/- paisa per equity share (5%), which is subject to consideration and approval of the shareholders at the ensuing Annual General Meeting of the Company. The total outflow on account of Equity Dividend will be X 45.65 Lacs which is provided in the accounts for the purpose of Dividend.

YEAR IN RETROSPECT:

The year 2011 - 2012 was indeed a challenging year for the Company. Persistent efforts have been made by the company to maintain higher sales volume. However there were number of factors which worked against the growth of the Company such as sovereign debt crisis in Euro Zone, rise in crude oil prices.

During the year under review Net Sales were Rs. 59.82 Crores as against X 57.65 Crores in the previous year. In spite rising inflation, steep increase in raw material prices & volatile market scenario, the company has been able to achieve net profit of Rs. 64.37 Lacs. The company has endeavored to bring out new & unique moulded furniture for improving the sales of the products.

The Company is taking all necessary steps to reduce wastages and make production cost efficient and are very sure will be able to achieve our targets.

Your Company has launched its PVC flooring Mats business in the Nellore, Andhra Pradesh in the southern part of the Country under the brand name INSTA.

DE-LISTING OF EQUITY SHARES FROM AHMEDABAD STOCK EXCHANGE LTD.:

The Board of Directors at its meeting held on 30th May, 2012 has proposed to De-list the Equity shares of the Company from Ahmedabad Stock Exchange Ltd. for which the Company is seeking your approval.

FIXED DEPOSIT:

The Company has not accepted any Fixed Deposit covered under Section 58A of the Companies Act, 1956 from the Shareholders or the Public during the year.

CORPORATE GOVERNENCE:

Your company is fully committed to the good corporate governance practices. A separate report on corporate governance form part of the Annual Report of the Company regarding the compliance of the conditions of the corporate governance as stipulated under clause 49 of the listing agreement is annexed to the report on the corporate governance.

The Certificate from the Auditor of the Company confirming compliance with the conditions of the Corporate Governance as stipulated under the aforesaid Clause 49 is attached to this Report. Further a separate Management Discussion and Analysis report is also given in this Annual Report.

DIRECTORS RESPONSIBILITY STATEMENT:

As required under Section 217(2AA) of the Companies Act, your Directors confirm that:

i. In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures.

ii. 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 affairs of the Company at the end of the financial year and of the profit of the Company for that period.

iii. The Directors have taken proper and sufficient care for the maintenance of adequate records in accordance with the provisions of this act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

iv. The annual accounts have been prepared on going concern basis.

INSURANCE:

All the insurable interest of the company including inventories, building, plant & machinery etc. are adequately insured. BOARD OF DIRECTORS:

Mr. Dhirajlal J. Shanghavi, Director of the company retires by rotation at the ensuing Annual General Meeting. The retiring Directors being eligible have offered themselves for re-appointment.

Disclosures as required under provisions of the listing agreement forms part of this report.

AUDITORS:

The Company's auditors M/s. Sheth Doctor & Associates, Chartered Accountants, retire at the conclusion of the forthcoming Annual General Meeting and are eligible for re-appointment.

CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGOINGS:

Information as per Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988 form part of this report the details as required under Companies (Disclosure of particulars in the report of the Board of Directors) Rule, 1988 are set out in the annexure "A" forming part of this report.

EMPLOYEE RELATIONS

Your Directors wish to place on record its appreciation of the contribution made by all employees in ensuring the highest levels of performance and growth that your Company has achieved during the year.

None of the employees of the Company were drawing a remuneration exceeding Rs. 60,00,000/- per annum or Rs. 5,00,000/- per month or part thereof. Hence, no particulars of employees as per Section 217(2A) of the Companies Act, 1956 are furnished.

ACKNOWLEDGEMENTS

The directors wish to place on record their sincere appreciation of the co-operation and support they have received during the year from the Bankers, State Government Authorities, Local Authorities and Employees during the year.

On behalf of the Board

Place: Mumbai VINOD V. PAREKH

Date: 14th August, 2012 CHAIRMAN

 
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