Mar 31, 2019
Dear Members,
The Directors are pleased to present the 39th Annual Report on the business and operations of the Company along with Audited Financial Statements for the year ended 31st March 2019.
Financial Performance (Rs. in lakhs)
PARTICULARS |
2018-19 |
2017-18 |
Revenue from operations [net of excise duty]* |
57,390.91 |
46,357.47* |
Other Income |
598.23 |
459.18 |
Total |
57,989.14 |
46,816.65 |
Profit before Interest & Financial Charges, Depreciation, Exceptional Items and Tax |
8,624.02 |
6,041.19 |
Less: Interest & Financial Expenses |
636.99 |
559.90 |
Less: depreciation |
938.64 |
878.46 |
Profit before Tax |
7,048.39 |
4,602.83 |
Less: Provision for taxation |
2,353.36 |
1,484.57 |
Profit after taxation |
4,695.03 |
3,118.26 |
Add: Other comprehensive income arising from remeasurement of Defined Benefit Plan (net of tax) |
(29.28) |
66.71 |
Total Comprehensive Income |
4,665.75 |
3,184.97 |
Previous yearâs figures have been regrouped for comparison purposes with current yearâs presentation wherever necessary.
CORPORATE REVIEW
Paper industry maintained a healthy trend during the year under review and products of the Company could get better realization in the market. However, prices of inputs, especially wood pulp, chemicals, power and fuel showed significant uptrend during the year. Total revenue of the Company increased to RS.579.89 crores against RS.468.17 crores of last year, showing about 24% increase. Profit before interest & financial charges and depreciation was significantly higher by 43% at RS.86.24 crores against RS.60.41 crores of last year. Net profit after tax was also higher by 51% at RS.46.95 crores against RS.31.18 crores of last year. It is expected that paper industry will continue to do well in the current financial year also because of healthy demand growth in various segments of paper industry included writing and printing paper.
Increase in cheap imports of paper from ASEAN countries continues to be a threat for domestic paper industry. The cost of raw material and manufacturing cost is much higher in India which adversely impacts competitiveness of the domestic paper industry especially writing and printing paper segment. PERFORMANCE REVIEW
Our focus for the last few years has been on enhancement of our product quality and at the same time reduction in costs and increase in efficiencies. These initiatives were pursued with even vigour during the year under review with significant positive results. The performance of both units of the Company is as follows:
SHREYANSPAPERS
Total production of paper in this unit was 49,858 MTs, which was almost at the same level of 49,169 MTs of last year. Capital expenditure for an additional Boiler along with normal capital expenditure was incurred in the unit to maintain its operations. Wire section of paper machine was also renovated during the year. In the current year further capital expenditure is planned to strengthen the bleach plant to further improve the quality of end product and optimize other operating parameters. Total capital expenditure planned is in the range of RS.25 crores to 30 crores. This will help the unit to further improve its operations in terms of quality and better environmental performance.
SHREE RISHABH PAPERS
Total paper production in this unit was 39,704 MTs which was significantly higher as compared to last yearâs production of 31,881 MTs. The impact of modernization undertaken in the past year constituting of installation of new Head Box, continuous digester, approach flow system, and additional dryers is reflected in the operations of the unit.
In the current year further capital expenditure to install improvised Bleach Stage Washers, additional Fluidized Bed Reactor soda recovery plant, Turbo calenders and Steam condensate system at paper machine are planned to strengthen the operations of the unit. Total capital expenditure planned is in the range of RS.27 crores to 32 crores.
FINANCIAL REVIEW EQUITY SHARE CAPITAL
The paid up Equity Share Capital as on March 31, 2019 was RS.13.82 crores. During the year under review, the Company has neither issued any shares nor granted stock options and nor sweat equity.
FINANCE
An amount of RS.11.61 crores, out of existing term loan of RS.25.01 crores were repaid during the year. Overall financial cost relating to borrowings has declined during the year despite increase in operations of the Company. However, an amount of RS.1.68 crores has been paid to PSPCL as interest on arrears of voltage surcharge, which is being contested by the Company. EXTERNAL CREDIT RATING
During the year under review, CARE Ratings Limited has upgraded the external credit rating for the Long term and Short term Bank facilities of the Company from BBB to A-. The facility wise upgraded rating is as under:
Facilities |
Amount (Rs./Cr) |
Upgraded Rating |
Long Term Bank Facilities |
35.97 |
CARE A-; Stable [A minus: Outlook: Stable] |
Short Term Bank Facilities |
40.00 |
CARE A2 [A two Plus] |
PARTICULARS OF LOANS, 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.
OTHER EQUITY
The Company does not propose to carry any amount to any reserves.
DIVIDEND
Your Directors proposed a dividend of RS.5 per share [i.e. 50% including a one-time Special Dividend of 30%] for the financial year ended 31st March 2019 [previous year 18%]. The dividend, if approved by the shareholders, will be paid to all the equity shareholders whose names appear in the Register of Members as on 8th July 2019. The proposed dividend would result in cash outflow of RS.833.31 lakhs including corporate dividend tax.
DEPOSITS (Rs. in Crores)
PARTICULARS |
From Members |
From Directors |
(a) accepted during the year; |
3.21 |
--- |
(b) remained unpaid or unclaimed as at the end of the year; |
--- |
--- |
(c) whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so, number of such cases and the total amount involved- (i) at the beginning of the year; (ii) maximum during the year; (iii) at the end of the year; |
--- |
--- |
(d) The details of deposits which are not in compliance with the requirements of Chapter V of the Companies Act, 2013. |
--- |
--- |
At the end of the year, fixed deposits from the public and directors were outstanding to the tune of RS.5.56 crores and FNil respectively. There were no overdue deposits as on 31st March 2019. The Company has accepted deposits from the members and public falling within the ambit of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.
FUTURE PLANS/PROSPECTS
Continuous technical and operational upgradation of the production facilities is a hallmark of the Companyâs policy and keeping the same trend a major capex is planned in Shree Rishabh Papers unit of the Company during the year as stated above. Besides this, normal capital expenditure is being done continuously to make operations of the Company more competitive.
NUMBER OF MEETINGS HELD
The details of Board and Committee Meetings held during financial year 2018-19, are given in the Corporate Governance Report.
DIRECTORS/ KEY MANAGERIAL PERSONNEL
Mr. Rajneesh Oswal, Director of the Company, is liable to retire by rotation at the forthcoming Annual General Meeting under Article 86(1) of Article of Association of the Company and being eligible, offer himself for re-appointment.
Mr. M.L. Gupta (DIN 00272672), Independent Director, on account of health issues had resigned w.e.f 13th May 2019 which was taken note by the Nomination and Remuneration Committee and Board in their meeting held on 13th May 2019.
All other Independent Directors submitted their declarations that, they meet the criteria of Independence as laid down under Section 149(6) of the Companies Act, 2013 and Regulation 16(1)(b) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015). Based on recommendation of Nomination and Remuneration Committee and in terms of the provisions of Sections 149, 150, 152 read with Schedule IV and any other applicable provisions of the Act and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Dr. Pratibha Goyal, Mr. A.K. Chakraborty and Dr. N.J. Rao, being eligible for re-appointment as an Independent Director and offering themselves for re-appointment, the Board has proposed for re-appointment of Independent Directors for second term as detailed in Notice of 39th Annual General Meeting.
Based on the recommendations of the Nomination and Remuneration Committee of directors, the Board in its meeting held on 13th May, 2019, has considered and recommended the appointment of Dr. Prem Kumar as an Additional Director (NonExecutive Independent) on the Board of the Company. Further, the Board is seeking approval of the shareholders of the Company to appoint Dr. Prem Kumar as Director (Non-Executive Independent) for a term of 5 (five) years effective from 13th May 2019 to 12th May 2024.
There were no changes in Key Managerial Personnel during the year under review.
BOARD EVALUATION
Pursuant to provisions of the Companies Act, 2013 and SEBI Listing Regulations, the Board has carried out an annual performance evaluation of its own performance and the performance of the individual directors as well as the evaluation of the working of its committees. The manner in which the evaluation was carried out has been explained in the Corporate Governance.
REMUNERATION POLICY
The Board has, on the recommendation of the Nomination and Remuneration Committee, framed a policy for selection and appointment of Directors, Key Managerial Personnel, Senior Management and their Remuneration. The said policy has been uploaded on the website of the Company. The key provisions of Nomination and Remuneration policy are appended as an Annexure I to the Boardâs report.
AUDIT COMMITTEE
The Company has duly constituted Audit Committee, the scope of which is quite comprehensive and is in conformity with the provisions of the Companies Act, 2013 and Listing Regulations. The composition of the Audit Committee is given in Corporate Governance Report.
All the recommendations of the Audit Committee were accepted by the Board.
DETAILS OF ESTABLISHMENT OF VIGIL MECHANISM/ WHISTLE BLOWER POLICY
The Company has adopted the Whistle Blower Policy/Vigil mechanism for directors and employees to report concerns about unethical behavior, actual or suspected fraud, or violation of the Companyâs Code of Conduct and Ethics. Such mechanism/policy is also uploaded on the website of the Company.
STATUTORY AUDITORS
At 37th Annual General Meeting held on 7th September 2017 M/s. K.C. Khanna & Company, were appointed as Statutory Auditors of the Company to hold office from 37th Annual General Meeting till the conclusion of the 42nd Annual General Meeting.
The Auditorsâ Report on the accounts of the Company for the year under review requires no comments. Further, there were no frauds reported by the Statutory Auditors of the Company during the period under review neither under Section 143(12) of the Act nor which are reportable to the Central Government.
COST AUDIT
Maintenance of Cost Records as specified by the Central Government under Section 148(1) of the Companies Act, 2013, is applicable on the Company and accordingly, such accounts and records related to cost audit, are made and maintained by the Company.
M/s. Rajan Sabharwal & Associates were appointed as Cost Auditors of your Company for auditing the cost accounts records for Financial Year 2018-19 under provisions of Section 148(1) of the Companies Act, 2013. They are likely to submit Cost Audit Report within the prescribed time limit.
Furthermore, the Board has re-appointed M/s Rajan Sabharwal and Associates, (Firm Registration No. 101961) as Cost Auditors of the Company for Financial Year 2019-20.
SECRETARIAL AUDIT
M/s P. S. Bathla & Associates, Practising Company Secretaries, at Ludhiana, were appointed to conduct the secretarial audit of the Company for Financial Year 2018-19, as required under Section 204 of the Companies Act, 2013 and Rules made there under. The Secretarial Audit Report for Financial Year 2018-19 is appended as an Annexure II to the Boardâs Report.
The Secretarial Auditorsâ Report for the year under review requires no comments.
The Board has re-appointed M/s P. S. Bathla & Associates, Practising Company Secretaries, Ludhiana as Secretarial Auditor of the Company for Financial Year 2019-20.
RELATED PARTY TRANSACTIONS
All Related Party transactions entered during the financial year were on armâs length basis and in the ordinary course of business. There were no materially significant related party transactions with the Companyâs Promoters, Directors, Management or their relatives, which could have had a potential conflict with the interests of the Company. Transactions with related parties entered by the Company in the normal course of business are periodically placed before the Audit Committee for its omnibus approval.
There was no material contract or arrangement or transactions with Related Party during the year. Thus, disclosure in form AOC-2 is not required.
The Board of Directors of the Company has, on the recommendation of the Audit Committee, adopted a policy to regulate transactions between the Company and its Related Parties, in compliance with the applicable provisions of the Companies Act, 2013, the rules there under and Listing Regulations.
This Policy as considered and approved by the Board has been uploaded on the website of the Company at http://www.shreyansgroup.com/upload/c1449201532SIL_Rel ated_Party_T ransaction_Policy_07_11_2015.pdf
PARTICULARS OF EMPLOYEES
The information required pursuant to Section 197 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is appended as an Annexure III and forms an integral part of this report.
EXTRACT OF ANNUAL RETURN
An extract of the Annual Return as of March 31, 2019 pursuant to the sub-section (3) of Section 92 of the Companies Act, 2013 read with Rule 12 (1) of the Companies (Management and Administration)Rules, 2014 and forming part of the report is placed on the website of the Company as per provisions of Section 134(3)(a) and is available at http://shreyansgroup.com/ upload/a1559544481SIL_EXTRACT_OF_ANNUAL_RETURN _31_03_2019_MGT9.pdf
INDUSTRIAL RELATIONS
The Company maintained healthy, cordial and harmonious industrial relations at all levels.
DEVELOPMENT AND IMPLEMENTATION OF A RISK MANAGEMENT POLICY
The Company has been addressing various risks through well defined risk management policy/procedures, which in the opinion of the Board may threaten the existence of the Company.
INTERNAL FINANCIAL CONTROL SYSTEMS
The Company has laid down adequate internal financial controls with reference to financial statements. During the year such controls were tested and no material weakness in their operating effectiveness was observed.
ASSOCIATES AND SUBSIDIARIES
The Company has no Associates & Subsidiaries as on 31sâ March, 2019.
CORPORATE GOVERNANCE
As per the provisions of Listing Regulations, a separate Report on Corporate Governance practices followed by the Company together with a Certificate from the Practising Company Secretary, confirming compliance forms part of this report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
As required under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of Companies (Accounts) Rules, 2014 the particulars relating to conservation of energy, technology, absorption and foreign exchange earnings and outgo is appended as an Annexure IV to the Boardâs Report.
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
Your Company, in collaboration with a local NGO in Ahmedgarh, has set up an Eye Hospital. Besides contributing in setting up of this hospital, financial assistance is extended on monthly basis. Eye care is provided to needy persons on subsidized rates/free of cost.
Your Company is also involved with various educational in st itution s for p roviding scholarship/financial assistance to deserving students on recommendations of the managements of such institutions. Your Company actively participates with number of NGOs for holding medical check-up camps, sports events and other social activities.
Your Company provides firefighting services, as and when need arises, in nearby areas through its own fire tender and firefighting staff.
Annual Report on Corporate Social Responsibility [CSR] activities is appended as an Annexure V.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANYâS OPERATIONS IN FUTURE
There were no significant and material orders passed by the Regulators or Courts or Tribunals impacting the going concern status and Companyâs operations.
DIRECTORSâ RESPONSIBILITY STATEMENT
In accordance with the provisions of Section 134(5) of the Companies Act, 2013, your directors confirm that:
(a) In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
(b) 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 and loss of the company for that period;
(c) The directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
(d) The directors had prepared the annual accounts on a going concern basis; and
(e) The directors had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.
(f) The directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
GENERAL DISCLOSURES
Your 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:
1. Issue of equity shares with differential rights as to dividend, voting or otherwise.
2. No unclaimed/unpaid Dividend to be transferred to Investor Education and Protection Fund.
3. The Company has already complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. There were no complaints/cases reported with internal complaints committee formed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
ACKNOWLEDGEMENT
Your directors place on record their sincere appreciation for the contributions made by the employees through their dedication, hard work and commitment in achieving your Companyâs performance. In an increasingly competitive environment collective dedication of employees is delivering superior and sustainable shareholder value.
The Board has pleasure in recording its appreciation of the assistance, co-operation and support extended to the Company by the Government Authorities, Commercial Banks, Financial Institutions and Depositors.
The Board also places on record its sincere appreciation towards the Companyâs valued customers, vendors, shareholders and investors for their continued support to the Company.
For and on Behalf of the Board
Sd/-
Rajneesh Oswal
Chairman & Managing Director
Place : Ludhiana (DIN : 00002668)
Date : May 13, 2019
Mar 31, 2018
Dear Members,
The Directors are pleased to present the 38th Annual Report on the business and operations of the Company along with audited statements of accounts for the year ended 31st March 2018.
Financial Performance (Rs. in lakhs)
PARTICULARS |
2017-18 |
2016-17 |
Revenue from operations |
46,357.47 |
42,003.42 |
[net of excise duty] |
||
Other Income |
459.18 |
482.41 |
46,816.65 |
42,485.83 |
|
Profit before Interest & Financial |
6,041.19 |
6,173.53 |
Charges, Depreciation, Exceptional |
||
Items and Tax |
||
Less: Interest & Financial Expenses |
559.90 |
591.02 |
Less: depreciation |
878.46 |
794.70 |
Profit before Exceptional |
4,602.83 |
4,787.81 |
Items and Tax |
||
Less: Exceptional items |
--- |
911.83 |
Profit before tax |
4,602.83 |
3,875.98 |
Less: Provision for taxation |
1,484.57 |
1,364.49 |
Profit after taxation |
3,118.26 |
2,511.49 |
Add: Other comprehensive income |
66.71 |
(87.02) |
arising from remeasurement of |
||
Defined Benefit Plan (net of tax) |
||
Total Comprehensive Income |
3,184.97 |
2,424.47 |
Previous year''s figures have been regrouped for comparison purposes with current year''s presentation wherever necessary.
CORPORATE REVIEW
Paper industry maintained a healthy trend during the year under review and products of the Company could get better realization in the market. However, prices of inputs, especially chemicals, power and fuel showed significant uptrend during the year which offset the impact of higher sale prices. Total revenue of the Company increased to Rs.468.17 crores against Rs.424.85 crores of last year, showing about 10% increase. However, profit before interest & financial charges and depreciation was marginally lower at Rs.60.41 crores against F61.74 crores of last year. Net profit after tax was higher at Rs.31.18 crores against Rs.25.11 crores of last year. It is expected that paper industry will continue to do well in the current financial year also, because of healthy demand growth in various segments of paper industry included writing and printing paper.
PERFORMANCE REVIEW
Our focus for the last few years has been on enhancement of our product quality and at the same time reduction in costs and increase in efficiencies. These initiatives were pursued with even greater vigour during the year under review with significant positive results. The performance of both units of the Company is as follows:
SHREYANSPAPERS
Total production of paper in this unit was 49,169 MTs, which was almost at the same level of 48,601 MTs of last year. Normal capital expenditure was incurred in the unit to maintain its operations. In the current year further capital expenditure is planned to add an additional boiler and also strengthen the bleach plant to further improve the quality of end product and optimize other operating parameters. Wire section of paper machine is proposed to be renovated. Total capital expenditure planned is in the range of Rs.25 crores. This will help the unit to further stabilize its operations.
SHREE RISHABH PAPERS
Total paper production in this unit was 31,881 MTs which was comparable to last year''s production of 31,708 MTs. However, during this year the unit was shut for two weeks for upgradation of pulp mill and paper machine which included installation of a new head box, approach flow system, additional dryers, a new continuous digester in the pulp mill and an additional boiler. The total impact of this modernization will be reflected in the current year''s operations.
FINANCIAL REVIEW
EQUITY SHARE CAPITAL
The paid up Equity Share Capital as on 31st March 2018 was Rs.13.82 crores. During the year under review, the Company has neither issued any shares nor granted stock options and nor sweat equity.
FINANCE
An amount of Rs.9.60 crores, out of term loan of Rs.13 crores sanctioned by IDBI Bank Limited and Rs.1.21 crores from others towards vehicle finance, was availed during the year and also during the year an amount of Rs.6.68 crores, out of existing term loans, was repaid during the year. Overall financial cost remained at the same level of last year despite increase in operations of the Company.
PARTICULARS OF LOANS, 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.
OTHER EQUITY
The Company does not propose to carry any amount to any reserves.
DIVIDEND
Your Directors propose a dividend of Rs.1.80 per share [i.e.18%] for the financial year ended 31st March 2018 [previous year 15%]. The dividend, if approved by the shareholders, will be paid to all the equity shareholders whose names appear in the Register of Members as on 3rd August, 2018. The proposed dividend would result in cash outflow of Rs.299.99 lakhs including corporate dividend tax.
DEPOSITS (Rs. in Crores)
PARTICULARS |
From Members |
From Directors |
(a) accepted during the year; |
3.30 |
--- |
(b) remained unpaid or unclaimed as |
||
at the end of the year; |
||
(c) whether there has been any default |
||
in repayment of deposits or payment of |
||
interest thereon during the year and if |
||
so, number of such cases and the total |
||
amount involved- |
||
(i) at the beginning of the year; |
--- |
--- |
(ii) maximum during the year; |
--- |
--- |
(iii) at the end of the year; |
--- |
--- |
(d) The details of deposits which are not |
||
in compliance with the requirements of |
--- |
--- |
Chapter V of the Companies Act, 2013. |
At the end of the year, fixed deposits from the members and Directors were outstanding to the tune of Rs. 5.28 crores and Rs. Nil crore respectively. There were no overdue deposits as on 31st March 2018. The Company has accepted deposits from the members and public falling within the ambit of Section 73 of the Companies Act, 2013 and The Companies [Acceptance of Deposits] Rules, 2014.
FUTURE PLANS/PROSPECTS
Continuous technical and operational upgradation of the production facilities is a hallmark of the Company''s policy and keeping the same trend a major capex is planned in Shreyans Paper unit of the Company during the year as stated above. Besides this, normal capital expenditure is being done continuously to make operations of the Company more competitive.
NUMBER OF MEETINGS HELD
The details of Board and Committee Meetings are given in the Corporate Governance Report.
DIRECTORS/ KEY MANAGERIAL PERSONNEL
Mr. Anil Kumar,Director of the Company, is liable to retire by rotation at the forthcoming Annual General Meeting under article 86 (1) of Article of Association of the Company and being eligible, offers himself for reappointment.
All Independent Directors have given declarations that they meet the criteria of Independence as laid down under Section 149(6) of the Companies Act, 2013 and Regulation 16(1)(b) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015).
The change in Key Managerial Personnel during the year under review is as under:
Sr. No. |
Name |
Designation |
Particulars of Change |
1 |
Videshwar Sharma |
KMP- Company Secretary |
Resignation w.e.f 15th July 2017 |
2 |
Ruchita Vij |
KMP- Company Secretary |
Appointment w.e.f 29th August 2017 |
BOARD EVALUATION
Pursuant to provisions of the Companies Act, 2013 and Listing Regulations, the Board has carried out an annual performance evaluation of its own performance and the performance of the individual Directors as well as the evaluation of the working of its committees. The manner in which the evaluation was carried out has been explained in the Corporate Governance.
REMUNERATION POLICY
The Board has, on the recommendation of the Nomination and Remuneration Committee, framed a policy for selection and appointment of Directors, Key Managerial Personnel, Senior Management and their Remuneration. The said policy has been uploaded on the website of the Company. The Key provisions of Nomination and Remuneration policy are appended as an Annexure I to the Board''s report.
AUDIT COMMITTEE
The Company has duly constituted Audit Committee, the scope of which is quite comprehensive and is in conformity with the provisions of the Companies Act, 2013 and Listing Regulations. The composition of the Audit Committee is given in Corporate Governance Report.
All the recommendations of the Audit Committee were accepted by the Board.
DETAILS OF ESTABLISHMENT OF VIGIL MECHANISM/ WHISTLE BLOWER POLICY
The Company has adopted the Whistle Blower Policy/Vigil mechanism for directors and employees to report concerns about unethical behavior, actual or suspected fraud, or violation of the Company''s Code of Conduct and Ethics. Such mechanism/policy is also uploaded on the website of the Company.
STATUTORY AUDITORS
At 37th Annual General Meeting held on 7th September 2017 M/s. K.C. Khanna & Company, were appointed as statutory auditors of the Company to hold office from 37th Annual General Meeting till the conclusion of the 42nd Annual General Meeting.
The Auditors'' Report on the accounts of the Company for the year under review requires no comments.
COST AUDIT
M/s. Rajan Sabharwal & Associates were appointed as Cost Auditors of your Company for auditing the cost accounts records for Financial Year 2017-18 under provisions of Section 148 of the Companies Act, 2013. They are likely to submit Cost Audit Report within the prescribed time limit.
Furthermore, the Board has re-appointed M/s.Rajan Sabharwal and Associates as Cost Auditors of the Company for Financial Year 2018-19.
SECRETARIAL AUDIT
M/s P. S. Bathla & Associates, Practising Company Secretaries, at Ludhiana, were appointed to conduct the secretarial audit of the Company for Financial Year 2017-18, as required under Section 204 of the Companies Act, 2013 and Rules made there under. The Secretarial Audit Report for Financial Year 2017-18 is appended as an Annexure II to the Board''s Report.
The Secretarial Auditors'' report for the year under review requires no comments.
The Board has re-appointed M/s P. S. Bathla & Associates, Practising Company Secretaries, Ludhiana as Secretarial Auditor of the Company for Financial Year 2018-19.
RELATED PARTY TRANSACTIONS
All Related Party transactions entered during the financial year were on arm''s length basis and in the ordinary course of business. There were no materially significant related party transactions with the Company''s Promoters, Directors, Management or their relatives, which could have had a potential conflict with the interests of the Company. Transactions with related parties entered by the Company in the normal course of business are periodically placed before the Audit Committee for its omnibus approval.
Since, there were no contracts/ arrangements/ transactions which were not at arm''s length basis or material with Related Party during the year; disclosure in form AOC-2 is not applicable.
The Board of Directors of the Company has, on the recommendation of the Audit Committee, adopted a policy to regulate transactions between the Company and its Related Parties, in compliance with the applicable provisions of the Companies Act, 2013, the rules there under and Listing Regulations.
This Policy as considered and approved by the Board has been uploaded on the website of the Company at http://www.shreyansgroup.com/upload/c1449201532SIL_Rel ated_Party_T ransaction_Policy_07_11_2015.pdf
PARTICULARS OF EMPLOYEES
The information required pursuant to Section 197 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is appended as an Annexure III and forms an integral part of this report.
EXTRACT OF ANNUAL RETURN
In accordance with Section 134(3) (a) of the Companies Act, 2013, an extract of the annual return in the prescribed format is appended as an Annexure IV to the Board''s report.
INDUSTRIAL RELATIONS
The Company maintained healthy, cordial and harmonious industrial relations at all levels.
DEVELOPMENT AND IMPLEMENTATION OF A RISK MANAGEMENT POLICY
The Company has been addressing various risks through well defined risk management policy/procedures, which in the opinion of the Board may threaten the existence of the Company.
INTERNAL FINANCIAL CONTROL SYSTEMS
The Company has laid down adequate internal financial controls with reference to financial statements. During the year such controls were tested and no material weakness in their operating effectiveness was observed.
INDIAN ACCOUNTING STANDARDS
Your Company has adopted Indian Accounting Standards (Ind AS) with date of transition as April 1st, 2016. Financial statements for the year ended March 31st, 2018 have been prepared in accordance with Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended by Companies (Indian Accounting Standards) Rules, 2018 read with Section 133 and other applicable provisions of the Companies Act, 2013. Previous periods figures have been re-stated to confirm Ind AS, for comparative information.
Note No. 53 to the financial statements provides further explanation on the transition to Ind AS.
GOODS AND SERVICE TAX (GST)
Goods and Service Tax (GST) came into effect from July 1st, 2017 through the implementation of One Hundred and First Amendment of the Constitution of India. The tax replaced existing multiple cascading taxes levied by the Central and State Governments.
Your Company has successfully implemented and migrated to GST followed by the changes across various departments/ operation of the Company
ASSOCIATES AND SUBSIDIARIES
The Company has no Associates & Subsidiaries as on 31st March, 2018.
CORPORATE GOVERNANCE
As per the provisions of Listing Regulations, a separate Report on Corporate Governance practices followed by the Company together with a Certificate from the Practising Company Secretary, confirming compliance forms part of this report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
As required under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of Companies (Accounts) Rules, 2014 the particulars relating to conservation of energy, technology, absorption and foreign exchange earnings and outgo is appended as an Annexure V to the Board''s Report.
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
Your Company, in collaboration with a local NGO in Ahmedgarh, has set up an Eye Hospital. Besides contributing in setting up of this hospital, financial assistance is extended on monthly basis. Eye care is provided to needy persons on subsidized rates/free of cost.
Your Company is also involved with various educational institutions for providing scholarship/financial assistance to deserving students on recommendations of the managements of such institutions. Your Company actively participates with number of NGOs for holding medical check-up camps, sports events and other social activities.
Your Company provides fire fighting services, as and when need arises, in nearby areas through its own fire tender and firefighting staff.
Annual Report on Corporate Social Responsibility [CSR] activities is appended as an Annexure VI.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY''S OPERATIONS IN FUTURE
There were no significant and material orders passed by the Regulators or Courts or Tribunals impacting the going concern status and Company''s operations.
DIRECTORS'' RESPONSIBILITY STATEMENT
In accordance with the provisions of Section 134(5) of the Companies Act, 2013, your Directors confirm that:
(a) In the preparation of the annual accounts, the applicable Indian Accounting Standards had been followed along with proper explanation relating to material departures;
(b) 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 and loss of the company for that period;
(c) The directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
(d) The directors had prepared the annual accounts on a going concern basis; and
(e) The directors had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.
(f) The directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
ACKNOWLEDGEMENT
Your Directors place on record their sincere appreciation for the contributions made by the employees through their dedication, hard work and commitment in achieving your Company''s performance. In an increasingly competitive environment collective dedication of employees is delivering superior and sustainable shareholder value.
The Board has pleasure in recording its appreciation of the assistance, co-operation and support extended to the Company by the Government Authorities, Commercial Banks, Financial Institutions and Depositors.
The Board also places on record its sincere appreciation towards the Company''s valued customers, vendors, shareholders and investors for their continued support to the Company.
For and on Behalf of the Board
Sd/-
Rajneesh Oswal
Chairman & Managing Director
Place : Ludhiana (DIN : 00002668)
Date : May 25, 2018
Mar 31, 2016
Dear Members,
The Directors are pleased to present the 36th Annual Report on the business and operations of the Company along with audited statements of accounts for the year ended 31st March 2016.
Financial Results (Rs. In lac)
PARTICULARS |
2015-16 |
2014-15 |
Total Revenues |
39097.65 |
37349.01 |
Profit before interest & depreciation |
2430.35 |
2790.31 |
Less: Financial Expenses |
595.56 |
698.59 |
Gross Profit |
1834.79 |
2091.72 |
Less: depreciation |
732.93 |
720.66 |
Net profit before tax |
1101.86 |
1371.06 |
Provision for taxation |
236.92 |
159.55 |
Deferred taxes |
[-] 12.74 |
231.91 |
Taxes for earlier year |
10.56 |
[-] 0.03 |
Net profit after tax |
867.12 |
979.63 |
CORPORATE REVIEW
Prices of Paper during the year under review continued to rule easy showing some signs of revival towards the end of year. However, prices of inputs also remained soft resulting in stable margins. There was a breakdown in Steam Turbine at Shree Rishabh Papers, which partially affected the operations during first half of year. However, by taking quick remedial measure, the position was corrected and normal operations were restored. Total revenues of the Company at Rs.390.97 crores were higher by about 5% as compared to Rs.373.49 crores of last year. PBIDT of the Company stood at Rs.24.30 crores as against Rs.27.90 crores of last year due to lower other income of Rs.1.49 crores against Rs.5.99 crores of last year. Net profit after tax at Rs.8.67 crores was marginally lower as compared to F9.80 crores of last year. Certain up gradations done during the year have already started showing results and your Management expects that performance of the Company should remain satisfactory in the coming year.
PERFORMANCE REVIEW SHREYANSPAPERS
Total paper production in this unit was marginally higher at 45872 MTs as compared to 43307 MTs of last year. During the year under review, as mentioned in the last yearâs Directorsâ Report, major up-gradations in Pulp Mill were undertaken, which have improved the operational parameters. Some modernizations on Paper Machine were also undertaken, which included calendaring machine which has further resulted in improvement in overall quality of paper. Up-gradations of Oxygen Delignification [ODL] Plant are slightly delayed, due to delay in deliveries on part of suppliers and are expected to be completed in first half of the current year. Total revenues of this unit were Rs. 243.34 crores as against Rs. 228.43 crores of last year.
SHREE RISHABH PAPERS
As stated above, there was some effect on the operations of this unit due to breakdown in Steam Turbine; but still by taking fast corrective actions and improvement in other parameters, the unit could stabilize the operations very fast and could maintain production levels at 28649 MTs as compared to 28555 MTs of last year and total revenues were also maintained at Rs.147.63 crores against Rs.145.06 crores of earlier year. Overall performance in this unit was satisfactory.
FINANCIAL REVIEW SHARE CAPITAL
The paid up Equity Share Capital as on March 31, 2016 was F13.82 crores. During the year under review, the Company has neither issued any shares not granted stock options and no sweat equity.
FINANCE
Fresh long term debt of Rs.18.18 crores was raised during the year. Also during the year Rs. 4.18 crores out of existing loans were repaid. Overall financial cost remained under control by judicious use of resources.
PARTICULARS OF LOANS, 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.
RESERVES
Company proposes to transfer Rs. 20.00 crores to general reserve out of surplus available.
DIVIDEND
Your Directors recommend a dividend of F1.20 per share [i.e. 12%] for the financial year ended 31st March 2016 (previous year 12%). The dividend, if approved by the shareholders, will be paid to all the equity shareholders whose names appear in the Register of Members as on 3th August, 2016. The proposed dividend will cost the Company Rs. 2.00 crores, inclusive of all taxes.
DEPOSITS
(Rs. in Crore)
PARTICULARS |
From Members |
From Directors |
(a) accepted during the year; |
2.76 |
0.28 |
(b) remained unpaid or unclaimed as at the end of the year; |
--- |
--- |
(c) whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so, number of such cases and the total amount involved- (i) at the beginning of the year; (ii) maximum during the year; (iii) at the end of the year; |
--- |
--- |
(d) The details of deposits which are not in compliance with the requirements of Chapter V of the Companies Act, 2013. |
--- |
--- |
At the end of the year, fixed deposits from the members and Directors were outstanding to the tune of Rs. 3.53 crores and Rs. 0.55 crore respectively. There were no overdue deposits as on 31st March 2016. The company has accepted deposits from the members falling within the ambit of Section 73 of the Companies Act, 2013 and The Companies [Acceptance of Deposits] Rules, 2014.
FUTURE PLANS/PROSPECTS
Your Company believes that continuous up-gradation of technology is a pre-requisite for sustaining the performance of the Company. Besides completing on-going project, Company proposes to revamp Shree Rishabh Papers by upgrading Paper Machine and other supporting equipments. Details are under preparation and are likely to be finalized very shortly. Other normal capital expenditure will continue to be incurred wherever necessary to keep the operations healthy.
NUMBER OF MEETINGS HELD
The details of Board and Committee Meetings are given in the Corporate Governance Report.
DIRECTORS
Sh. Kunal Oswal, Wholetime Director of the Company, is liable to retire by rotation at the forthcoming Annual General Meeting under article 86 (1) of Article of Association of the Company and being eligible, offer himself for reappointment.
Dr. Shalini Gupta ceased to be Director due to her resignation and in her place the Board has appointed Dr. Pratibha Goyal as an Additional Director (Independent) w.e.f. 24th May, 2016.
All Independent Directors have given declarations that they meet the criteria of Independence as laid down under Section 149(6) of the Companies Act, 2013 and Regulation 16(1)(b) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015)
BOARD EVALUATION
Pursuant to provisions of the Companies Act, 2013 and Listing Regulations, the Board has carried out an annual performance evaluation of its own performance and the performance of the individual Directors as well as the evaluation of the working of its committees. The manner in which the evaluation was carried out has been explained in the Corporate Governance.
REMUNERATION POLICY
The Board has, on the recommendation of the Nomination and Remuneration Committee, framed a policy for selection and appointment of Directors, Key Managerial Personnel, Senior Management and their Remuneration. The said policy has been uploaded on the website of the Company. The Key provisions of Nomination and Remuneration policy are appended as an Annexure I to the Board''s report.
AUDIT COMMITTEE
The company has duly constituted Audit Committee, the scope of which is quite comprehensive and is in conformity with the provisions of the Companies Act, 2013 and Listing Regulations. The composition of the Audit Committee is given in Corporate Governance Report.
All the recommendations of the Audit Committee were accepted by the Board.
DETAILS OF ESTABLISHMENT OF VIGIL MECHANISM/ WHISTLE BLOWER POLICY
The Company has adopted the Whistle Blower Policy/Vigil mechanism for directors and employees to report concerns about unethical behavior, actual or suspected fraud, or violation of the Company''s Code of Conduct and Ethics. Such mechanism/policy is also uploaded on the website of the Company.
STATUTORY AUDITORS
At the Annual General Meeting held on 13th August, 2014 M/s S. C. Vasudeva & Company, New Delhi, were appointed as statutory auditors of the Company to hold office till the conclusion of the 37th Annual General Meeting. In terms of the first proviso to Section 139 of the Companies Act, 2013, the appointment of the auditors shall be placed for ratification at every Annual General Meeting. Accordingly, the appointment of M/s S.C. Vasudeva & Company, New Delhi, as statutory auditors of the Company, is placed for ratification by the shareholders. In this regard, the Company has received a certificate from the auditors to the effect that their appointment is in accordance with the provisions of Section 141 of the Companies Act, 2013.
The auditors'' report on the accounts of the Company for the year under review requires no comments.
COST AUDIT
M/s Rajan Sabharwal & Associates were appointed as Cost Auditors of your Company for auditing the cost accounts records for the financial year 2015-16 under provisions of Section 148 of the Companies Act, 2013. They are likely to submit Cost Audit Report within the prescribed time limit. Furthermore the Board has re-appointed M/s Rajan Sabharwal & Associates as Cost Auditors of the Company for the financial year 2016-17.
SECRETARIAL AUDIT
M/s P. S. Bathla & Associates, Practicing Company Secretaries, at Ludhiana, were appointed to conduct the secretarial audit of the Company for the financial year 2015-16, as required under Section 204 of the Companies Act, 2013 and Rules made there under. The secretarial audit report for FY 2015-16 is appended as an Annexure II to the Board''s report.
The Secretarial auditors'' report for the year under review requires no comments.
The Board has re-appointed M/s P. S. Bathla & Associates, Practising Company Secretaries, Ludhiana as secretarial auditor of the Company for the financial year 2016-17.
RELATED PARTY TRANSACTIONS
All Related Party transactions entered during the financial year were on arm''s length basis and in the ordinary course of business. There were no materially significant related party transactions with the Company''s Promoters, Directors, Management or their relatives, which could have had a potential conflict with the interests of the Company. Transactions with related parties entered by the Company in the normal course of business are periodically placed before the Audit Committee for its omnibus approval.
There was no material contract or arrangement or transactions with Related Party during the year. Thus, disclosure in form AOC-2 is not required.
The Board of Directors of the Company has, on the recommendation of the Audit Committee, adopted a policy to regulate transactions between the Company and its Related Parties, in compliance with the applicable provisions of the Companies Act, 2013, the rules there under and Listing Regulations.
This Policy as considered and approved by the Board has been uploaded on the website of the Company at http://www.shreyansgroup.com/upload/c1449201532SIL Related Party Transaction Policy 07 11 2015.pdf
PARTICULARS OF EMPLOYEES
The information required pursuant to Section 197 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is appended as an Annexure III and forms an integral part of this report.
EXTRACT OF ANNUAL RETURN
In accordance with Section 134(3) (a) of the Companies Act, 2013, an extract of the annual return in the prescribed format is appended as an Annexure IV to the Boardâs report.
INDUSTRIAL RELATIONS
The company maintained healthy, cordial and harmonious industrial relations at all levels.
DEVELOPMENT AND IMPLEMENTATION OF A RISK MANAGEMENT POLICY
The Company has been addressing various risks through well defined risk management policy/procedures, which in the opinion of the Board may threaten the existence of the Company.
INTERNAL FINANCIAL CONTROL SYSTEMS
The Company has laid down adequate internal financial controls with reference to financial statements. During the year such controls were tested and no material weakness in their operating effectiveness was observed.
ASSOCIATES AND SUBSIDIARIES
The Company has no Associates & Subsidiaries as on March 31, 2016.
CORPORATE GOVERNANCE
As per the provisions of Listing Regulations, a separate Report on Corporate Governance practices followed by the Company together with a Certificate from the Practicing Company Secretary, confirming compliance forms part of this report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
As required under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of Companies (Accounts) Rules, 2014 the particulars relating to conservation of energy, technology, absorption and foreign exchange earnings and outgo is appended as an Annexure V to the Boardâs Report.
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
Your company, in collaboration with a local NGO in Ahmedgarh, has set up an Eye Hospital. Besides contributing in setting up of this hospital, financial assistance is extended on monthly basis. Eye care is provided to needy persons on subsidized rates/free of cost.
Your company is also involved with various educational institutions for providing scholarship/financial assistance to deserving students on recommendations of the managements of such institutions. Your company actively participates with number of NGOs for holding medical check-up camps, sports events and other social activities.
Your Company provides fire fighting services, as and when need arises, in nearby areas through its own fire tender and fire fighting staff.
Annual Report on Corporate Social Responsibility [CSR] activities is appended as an Annexure VI.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY''S OPERATIONS IN FUTURE
There were no significant and material orders passed by the Regulators or Courts or Tribunals impacting the going concern status and Companyâs operations.
DIRECTORS'' RESPONSIBILITY STATEMENT In accordance with the provisions of Section 134(5) of the Companies Act, 2013, your Directors confirm that:
(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
(b) 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 and loss of the company for that period;
(c) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
(d) the directors had prepared the annual accounts on a going concern basis; and
(e) the directors, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.
(f) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
ACKNOWLEDGEMENT
Your Directors place on record their sincere appreciation for the contributions made by the employees through their dedication, hard work and commitment in achieving your Companyâs performance. In an increasingly competitive environment collective dedication of employees is delivering superior and sustainable shareholder value.
The Board has pleasure in recording its appreciation of the assistance, co-operation and support extended to the Company by the Govt. Authorities, Commercial Banks, Financial Institutions and Depositors.
The Board also places on record its sincere appreciation towards the Companyâs valued customers, vendors, shareholders and investors for their continued support to the Company.
For and on Behalf of the Board
Rajneesh Oswal
Chairman & Managing Director
Place : Ludhiana (DIN : 00002668)
Date : May 24, 2016
Mar 31, 2014
Dear Members,
The Directors are pleased to present the 34th Annual Report on the
business and operations of the Company along with audited statements of
accounts for the year ended 31st March 2014.
Financial Results (t In lac)
PARTICULARS 2013-14 2012-13
Total Revenues 40317.34 34613.56
Profit before interest & depreciation 3756.50 2850.15
Less: Financial Expenses 631.81 700.37
Gross Profit 3124.69 2149.78
Less: depreciation 935.81 1008.65
Net profit before tax 2188.88 1141.13
Provision for taxation 722.24 410.00
Deferred taxes 202.78 [72.31]
Taxes for earlier year [-] 0.22 24.62
Net profit after tax 1264.08 778.82
CORPORATE REVIEW
Paper prices continued an uptrend during the year under review, effect
of which was partly offset by substantial increase in the prices of
fibrous raw materials in the later part of the financial year and also
significant increase in the minimum wages as applicable to workers
announced by the State Government. However, the total revenues of the
Company increased by more than 16% over the last year and stood at
1403.17 crores which was due to both increase in prices of paper and
also marginal increase in production of paper in quantitative terms.
PBIDT of the Company stood at t 37.56 crores against 128.50 crores of
last year, showing a healthy increase of almost 32%. Net profit after
tax at 112.64 crores was almost 62% higher as compared to *7.79 crores
of last year. Higher prices of fibrous raw materials, which continue in
the current year also remain a cause of concern. However, your
Directors do hope that due to better operations and expected buoyancy
in the paper market, performance in the current year should also be
quite satisfactory
PERFORMANCE REVIEW
SHREYANS PAPERS
Operations of this division remained quite healthy and total production
of paper at 45350 MTs was maintained almost at the last year''s level of
44875 MTs. However, the revenues of this division at 1230.32 crores
against t 204.51 crores was almost 12% higher as compared to last year.
Technology up-gradation steps continued to be taken during the year
under review, which included putting up of a most modern online Quality
Control System [QCS] at paper machine and commissioning of a higher
capacity Fluidized Bed Reactor [FBR] for Chemical Recovery. Order for
state-of-art Head Box for paper machine has already been finalized,
which is likely to be commissioned in the first half of the current
financial year.
SHREE RISHABH PAPERS
Operations of this unit continued to show significant improvement and
production at 34088 MTs was almost 8% higher than the last year
production of 31540 MTs. Revenues of this unit at t 172.85 crores were
also almost 22% higher than S141.62 crores of last year. Order for
modernization of Press part of the machine was finalized for this unit
which is likely to be commissioned in the first half of the current
financial year.
FINANCIAL REVIEW
No fresh long term debts or capital was raised during the year under
review. However, existing term debts to the extent of «.80 crores were
repaid.
FUTURE PLANS/PROSPECTS
As mentioned above, existing head box on paper machine at Shreyans
Papers is being replaced by a state-of-art head box and also Company
plans to commission equipment for surface sizing to produce value added
surface sized paper. Modernization work at Shree Rishabh Paper has
already been taken up and would be completed during the current year
resulting in better quality and production.
DIVIDEND
In view of improved performance of the Company, your Directors
recommend a dividend of t 1.20 per share [i.e. 12%] for the financial
year ended 31st March 2014 against 10% dividend paid during last year.
The dividend, if approved by the shareholders, will be paid to all the
equity shareholders whose names appear in the Register of Members as on
August 6, 2014. The proposed dividend will cost the Company t 1.94
crores, inclusive of all taxes.
DEPOSITS
At the end of the year, fixed deposits from the public were outstanding
to the tune of * 4.21 crores which are well within the limits
prescribed under section 58 A of the Companies Act, 1956 read with
Rules 3[2][I] and [II] of the Companies [Acceptance of Deposits] Rules,
1975. There were no overdue deposits as on 31st March 2014. Company is
taking steps to comply with new Rules and Regulations as prescribed by
Companies Act, 2013 for acceptance of deposits. It may be pertinent to
mention that in view of the revised requirements, the Company proposes
to accept deposits only from members and repay existing deposits of
non-members during the current year.
DIRECTORS
Shri Kunal Oswal, Director of the Company, liable to retire by rotation
at the forthcoming Annual General Meeting under clause 113 of Article
of Association of the Company and being eligible, offer himself for
reappointment.
AUDITORS
M/s S.C. Vasudeva & Company, New Delhi, Auditors of the Company shall
retire at the forthcoming Annual General Meeting and are eligible for
reappointment.
COST AUDITORS
The Board of Directors have appointed M/s Rajan Sabharwal & Associates,
as Cost Auditors of your Company for auditing the cost accounts records
for the financial year 2013-14 under provisions of Section 224[1B] and
233B of the Companies Act, 1956.
AUDITORS'' REPORT
The auditors'' report on the accounts of the Company for the year under
review requires no comments.
INDUSTRIAL RELATIONS
The company maintained healthy, cordial and harmonious industrial
relations at all levels.
DIRECTORS'' RESPONSIBILITY STATEMENT
In accordance with the provisions of Section 217[2AA] of the Companies
Act, 1956, your Directors confirm that:
a] in the preparation of the annual accounts, applicable accounting
standards have been followed and there has been no materials departure.
b] the selected accounting policies were applied consistently and the
Directors 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 March 31, 2014 and of the profits of the Company for the
year ended on that date.
c] Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
d] Annual accounts have been prepared on a going concern basis.
CORPORATE GOVERNANCE
As per Clause 49 of the Listing Agreement with the Stock Exchange, a
separate Chapter on Corporate Governance practices followed by the
Company together with a Certificate from the Company''s Auditors
confirming compliance forms part of this report.
CONSERVATIONS OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
As required under Section 217[1][e] of the Companies Act, 1956 read
with Rule 2 of the Companies [Disclosure of particulars in the report
of Board of Directors] Rules 1988, the particulars relating to
conservation of energy, technology, absorption and foreign exchange
earning and outgo forming part of the Report are also annexed.
ACKNOWLEDGEMENT
Your Directors place on record their sincere appreciation for the
contributions made by the employees through their dedication, hard work
and commitment in achieving your Company''s performance. In an
increasingly competitive environment Collective dedication of employees
is delivering superior and sustainable shareholder value.
The Board has pleasure in recording its appreciation of the assistance,
co-operation and support extended to the Company by the Govt.
Authorities, Commercial Banks, Financial Institutions and Depositors.
The Board also places on record its sincere appreciation towards the
Company''s valued customers, vendors, shareholders and investors for
their continued support to the Company.
FOR AND ON BEHALF OF THE BOARD
(RAJNEESH OSWAL)
CHAIRMAN & MANAGING DIRECTOR
Place : Ludhiana
Date : MAY 21, 2014
Mar 31, 2013
Dear Members,
The Directors are pleased to present the 33rd Annual Report on the
business and operations of the Company along with audited statements of
accounts for the year ended 31st March 2013.
Financial Results
(Rs.in Lacs)
PARTICULARS 2012-13 2011-12
Total Revenues 34646.97 27758.84
Profit before interest
& depreciation 2850.15 1915.25
Less: Financial Cost 700.37 625.13
Gross Profit 2149.78 1290.12
Less: depreciation 1008.65 914.44
Net profit before tax 1141.13 375.68
Provision for current taxes 410.00 82.90
Deferred taxes 72.31 14.38
Taxes relating to prior year 24.62 50.48
Net profit after tax 778.82 227.92
CORPORATE REVIEW
Paper market during the year under review was buoyant during second
half of the year when prices of the paper firmed up. Also full year
impact of modernization-cum-expansion project completed towards end of
last year is reflected in operations of the year under review. This
resulted in almost 17% increase in production of paper in quantitative
terms and about 25% increase in the total revenues of the Company,
which stood at all time high at Rs. 346.47 crores. Prices of most of
the inputs remained stable. However, prices of Caustic Soda, main
chemical used in paper making, again rose significantly. These factors
resulted in 48% increase in the PBIDT of the Company, which stood at
Rs. 28.50 crores against Rs. 19.15 crores of last year, and your
Company was able to earn Net profit after tax of Rs. 7.79 crores as
compared to Rs. 2.28 crores of last year, showing an increase of almost
242%. Your Directors do hope that barring unforeseen circumstances, the
performance in the current year would also be quite healthy.
PERFORMANCE REVIEW
SHREYANS PAPERS
Modernization-cum-expansion Project undertaken during last year
resulted in significant improvement both in quantitative and financial
terms in performance of this division and the total production of paper
in Shreyans Papers was 44875 MT against 36578 MT of last year, an
increase of more than 22%. Total revenues also were sharply higher at
Rs. 204.69 crores against Rs.157.15 crores of last year, an increase of
more than 30%.
SHREE RISHABH PAPERS
Production at Shree Rishabh Papers was also higher at 31540 MT against
28702 MT of last year. Total revenues were significantly higher at Rs.
141.78 crores against Rs. 120.44 crores of last year, an increase of
more than 18% due to better sales realization and higher production.
Operations of this unit also showed improvement during the year under
review.
FINANCIAL REVIEW
No fresh debts or capital was raised during the year under review.
However, existing term debts to the extent of Rs. 9.40 crores and short
term debts to the extent of Rs. 6.04 crores were repaid.
FUTURE PLANS/PROSPECTS
Modernization and de-bottlenecking is on-going process in the
Company. Company is in process of undertaking capital expenditure to
augment the quality of its products and add value added products in its
production range.
DIVIDEND
In view of improved performance of the Company, your Directors
recommend a dividend of Rs. 1/- per share [i.e. 10%] for the financial
year ended 31st March 2013. The dividend, if approved by the
shareholders, will be paid to all the equity shareholders whose names
appear in the Register of Members as on 22nd August 2013. The proposed
dividend will cost the Company Rs. 1.61 crores, inclusive of all taxes.
DEPOSITS
At the end of the year, fixed deposits from the public were outstanding
to the tune of Rs. 564.86 lacs which are well within the limits
prescribed under section 58 A of the Companies Act, 1956 read with
Rules 3[2][I] and [II] of the Companies [Acceptance of Deposits] Rules,
1975. There were no overdue deposits as on 31st March 2013.
DIRECTORS
Shri A. K. Chakraborty & Dr. N. J. Rao, Directors of the Company,
liable to retire by rotation at the forthcoming Annual General Meeting
under clause 113 of Article of Association of the Company and being
eligible, offer themselves for reappointment.
AUDITORS
M/s S.C. Vasudeva & Company, New Delhi, Auditors of the Company shall
retire at the forthcoming Annual General Meeting and are eligible for
reappointment.
COST AUDITORS
The Board of Directors have appointed M/s Rajan Sabharwal & Associates,
as Cost Auditors of your Company for auditing the cost accounts records
for the financial year 2012-13 under provisions of Section 224[1B] and
233B of the Companies Act, 1956.
AUDITORS'' REPORT
The auditors'' report on the accounts of the Company for the year under
review requires no comments.
INDUSTRIAL RELATIONS
The company maintained healthy, cordial and harmonious industrial
relations at all levels.
DIRECTORS'' RESPONSIBILITY STATEMENT
In accordance with the provisions of Section 217[2AA] of the Companies
Act, 1956, your Directors confirm that:
A] in the preparation of the annual accounts, applicable accounting
standards have been followed and there has been no materials departure.
B] the selected accounting policies were applied consistently and the
Directors 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 March 31, 2013 and of the profits of the Company for the
year ended on that date.
C] Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
D] Annual accounts have been prepared on a going concern basis.
CORPORATE GOVERNANCE
As per Clause 49 of the Listing Agreement with the Stock Exchange, a
separate Chapter on Corporate Governance practices followed by the
Company together with a Certificate from the Practicing Company
Secretary confirming compliance forms part of this report.
CONSERVATIONS OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
As required under Section 217[1][e] of the Companies Act, 1956 read
with Rule 2 of the Companies [Disclosure of particulars in the report
of Board of Directors] Rules 1988, the particulars relating to
conservation of energy, technology, absorption and foreign exchange
earning and outgo forming part of the Report are also annexed.
ACKNOWLEDGEMENT
Your Directors place on record their sincere appreciation for the
contributions made by the employees through their dedication, hard work
and commitment in achieving your Company''s performance. In an
increasingly competitive environment Collective dedication of employees
is delivering superior and sustainable shareholder value.
The Board has pleasure in recording its appreciation of the assistance,
co-operation and support extended to the Company by the Govt.
Authorities, Commercial Banks, Financial Institutions and Depositors.
The Board also places on record its sincere appreciation towards the
Company''s valued customers, vendors, shareholders and investors for
their continued support to the Company.
FOR AND ON BEHALF OF THE BOARD
(RAJNEESH OSWAL)
CHAIRMAN AND MANAGING DIRECTOR
Place: Ludhiana
Date: 28th May 2013
Mar 31, 2012
The Directors are pleased to present the 32nd Annual Report on the
business and operations of the Company along with audited statements of
accounts for the year ended 31st March 2012.
Financial Results (Rs. in Lacs)
2011-12 2010-11
Total Revenues 27684.90 25984.20
Profit before interest & depreciation 1902.19 1778.97
Less: Financial Cost 612.07 498.32
Gross Profit 1290.12 1280.65
Less: depreciation 914.44 866.88
Net profit before tax 375.68 413.77
Provision for current taxes 82.90 119.00
Deferred taxes 14.38 [178.44]
Taxes relating to prior year 50.48 1.16
Net profit after tax 227.92 472.05
CORPORATE REVIEW
During the year under review, paper market remained stable. However,
prices of caustic soda, one of the main chemicals consumed in paper
making, rose sharply, which was partly off- set by lower prices of
wheat straw, the major fibrous raw material for manufacturing of paper.
Total revenues increased by little more than 6% due to marginally
higher production and prices of finished goods. During the year under
review your Company was able to earn higher PBIDT of Rs.1902.19 lacs,
against Rs.1778.97 lacs of last year, however because of higher
incidence of financial charges, depreciation and incidence of income
tax, the net profit was lower at Rs.227.92 lacs as compared to
Rs.472.05 lacs. Your Directors are pleased to inform that the initial
results after completion of modernization- cum-expansion project at
Ahmedgarh paper division have been very encouraging which will be
reflected in working for years to come.
PERFORMANCE REVIEW SHREYANSPAPERS
As mentioned above, a modernization-cum-expansion project costing
approx. Rs.2300.00 lacs was undertaken at this unit to augment the
production capacity and also to build-up capability to produce surface
sized papers. Total production in this division was 36578 MTs as
compared to 35702 MTs of last year despite closure of three weeks.
Total revenues of this unit were Rs.15654.01 lacs as compared to
Rs.14746.83 lacs of last year were higher by 6%. .
SHREE RISHABH PAPERS
Production of Shree Rishabh Papers at 28702 MTs was marginally higher
as compared to 27660 MTs of last year and also total revenues were
Rs.12030.89 lacs as compared to Rs.11237.37 lacs, thus showing an
increase of approx. 7%. The operations of the unit remained
satisfactory during the year under review FINANCIAL REVIEW
Your Company undertook a modernization-cum-expansion project at
Shreyans Papers with a capital outlay of Rs.2300.00 lacs which was
partly financed by raising an additional term loan of Rs.1400.00 lacs
from State Bank of Patiala.
The balance expenditure was met through internal accruals. Your
Company also raised additional working capital funds to meet the
increased requirements during the year under review. All debts of the
Company were serviced as per schedule
FUTURE PLANS/PROSPECTS
Full impact of modernization-cum-expansion project done at Shreyans
Papers would come during the current financial year and as per
indications available this should result in significant improvement in
terms of total production, revenues and profitability of the Company
Your Company also plans to undertake a de-bottlenecking CAPEX plan in
both the units during the current year to further improve the working
of the Company.
DIVIDEND
Your Directors feel that there is a need to conserve resources for
future plans and regret their inability to recommend any dividend for
the current year.
DEPOSITS
At the end of the year, fixed deposits from the public were outstanding
to the tune of Rs.532.62 lacs which are well within the limits
prescribed under section 58 A of the Companies Act, 1956 read with
Rules 3[2][I] and [II] of the Companies [Acceptance of Deposits] Rules,
1975. There were no overdue deposits as on 31st March 2012.
DIRECTORS
Shri Anil Kumar and Shri R C Singal, Directors of the Company, liable
to retire by rotation at the forthcoming Annual General Meeting under
clause 113 of Article of Association of the Company and being eligible,
offer themselves for reappointment.
AUDITORS
M/s S.C. Vasudeva & Company, New Delhi, Auditors of the Company shall
retire at the forthcoming Annual General Meeting and are eligible for
reappointment.
COST AUDITORS
The Board of Directors have appointed M/s Vipin Maini, as Cost Auditors
of your Company for auditing the cost accounts records for the
financial year 2011-12 under provisions of Section 224[1B] and 233B of
the Companies Act, 1956.
AUDITORS' REPORT
The auditors' report on the accounts of the Company for the year
under review requires no comments.
INDUSTRIAL RELATIONS
The company maintained healthy, cordial and harmonious industrial
relations at all levels.
DIRECTORS' RESPONSIBILITY STATEMENT
In accordance with the provisions of Section 217[2AA] of the Companies
Act, 1956, your Directors confirm that:
A] in the preparation of the annual accounts, applicable accounting
standards have been followed and there has been no materials departure.
B] The selected accounting policies were applied consistently and the
Directors 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 March 31, 2012 and of the profits of the Company for the
year ended on that date.
C] Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities
D] Annual accounts have been prepared on a going concern basis.
CORPORATE GOVERNANCE
As per Clause 49 of the Listing Agreement with the Stock Exchange, a
separate Chapter on Corporate Governance practices followed by the
Company together with a Certificate from the Company's Auditors
confirming compliance forms part of this report.
CONSERVATIONS OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
As required under Section 217[1][e] of the Companies Act, 1956 read
with Rule 2 of the Companies [Disclosure of particulars in the report
of Board of Directors] Rules 1988, the particulars relating to
conservation of energy, technology, absorption and foreign exchange
earning and outgo forming part of the Report are also annexed.
ACKNOWLEDGEMENT
Your Directors place on record their sincere appreciation for the
contributions made by the employees through their dedication, hard work
and commitment in achieving your Company's performance. In an
increasingly competitive environment, the collective dedication of
employees is delivering superior and sustainable shareholder value.Your
Directors also acknowledge the support and co-operation extended by the
Financial Institutions, Analysts, Banks, Government Authorities,
Customers, Vendors, Shareholders and Investors at large and look
forwards to their continued support.
FOR AND ON BEHALF OF THE BOARD
(RAJNEESH OSWAL)
CHAIRMAN AND MANAGING DIRECTOR
Place: Ludhiana
Date: 28th May 2012
Mar 31, 2011
Dear Members,
The Directors are pleased to present the 31st Annual Report on the
business and operations of the Company along with audited statements of
accounts for the year ended 31st March 2011.
Financial Results (Rs. in Lacs)
2010-11 2009-10
Gross Sales 26418.44 24562.01
Profit before interest & depreciation 1734.71 2220.35
Less: Interest 450.56 577.97
Gross Profit 1284.15 1642.38
Depreciation 866.89 848.08
Net profit before tax 417.26 794.30
Provision for current tax 123.66 119.54
MAT Credit Entitlement - [42.00]
Provision for deferred tax [178.44] 175.25
Net profit after tax 472.04 541.51
CORPORATE REVIEW
During the year under review, the prices of paper ruled higher by
almost 5% but prices of wheat straw and wood pulp, the major raw
materials, and also rice husk, the main fuel for the boiler increased
significantly, thus affecting the overall margins of the company. Total
turnover was up by almost 7%. However, PBIDT of the Company was lower
at Rs.1734.71 lacs against Rs.2220.35 lacs of last year. Due to lower
financial cost and also lower incidence of tax, the net profit fell
marginally to Rs.472.04 lacs against Rs.541.51 lacs of last year. Your
Directors feel that increasing trend in prices of various inputs should
moderate in the current year and with better price realization of end
product the bottom line of the Company is expected to be much
healthier.
PERFORMANCE REVIEW
SHREYANS PAPERS
Production of Shreyans Papers at 35702 MTs was marginally higher as
compared to 34729 MTs of last year and correspondingly the turnover at
Rs.14887.20 lacs as compared to Rs.13740.24 lacs was higher by almost
8%.
SHREE RISHABH PAPERS
Production of Shree Rishabh Papers at 27660 MTs remained at almost the
same level of 27460 MTs of last year. However, the turnover at
Rs.11531.24 lacs against Rs.10821.77 lacs of last year was higher
keeping in view the better market prices. The operations of this unit
were impacted due to less than optimum operations of the power plant
including the boiler. However, corrective steps have since been taken
and it is expected that operations of this unit in the current year
would be better.
FINANCIAL REVIEW
During the year under review, Company prepaid an amount of Rs.216.60
lacs to ICICI Bank Limited and Rs.187.60 lacs to Industrial Development
Bank of India Limited [IDBI] in view of comfortable liquidity position.
This has resulted in considerable reduction in financial cost and also
improvement in debt equity profile of the Company.
FUTURE PLANS/PROSPECTS
As indicated in the last report, your Company looked into various
options for technical upgradation and also increasing the production
capacity. A modernization-cum-expansion plan has been taken up at
Shreyans Papers, Ahmedgarh Division, which envisages installing of a
Shoe Press and a Size Press at the machine, which will result in:
a) reduction in specific steam consumption.
b) increase in production capacity by almost 20%.
c) production of value added surface sized paper.
Other balancing and de-bottlenecking equipments are also planned. The
total project cost is estimated at Rs.22.00 crores, which will be met
through internal accruals and loans from banks. Significant progress
has already been made in the project and it is expected that this
project will be implemented by end of current calendar year. Your
Directors are very hopeful that this project, when implemented, will
significantly add to the overall profitability of the Company.
DIVIDEND
Your Directors feel that there is a need to conserve resources for
future plans and regret their inability to recommend any dividend for
the current year.
DEPOSITS
At the end of the year, fixed deposits from the public were outstanding
to the tune of Rs.466.34 lacs which are well within the limits
prescribed under section 58 A of the Companies Act, 1956 read with
Rules 3[2][I] and [II] of the Companies [Acceptance of Deposits] Rules,
1975. There were no overdue deposits as on 31st March 2011.
DIRECTORS
Shri M L Gupta and Dr. N J Rao, Directors of the Company, liable to
retire by rotation at the forthcoming Annual General Meeting under
clause 113 of Article of Association of the Company and being eligible,
offer themselves for reappointment.
Dr. [Mrs.] H K Bal vacated the office of directors with effect from
28th May 2011.
AUDITORS
M/s S.C. Vasudeva & Company, New Delhi, Auditors of the Company shall
retire at the forthcoming Annual General Meeting and are eligible for
reappointment.
COST AUDITORS
The Board of Directors have appointed M/s Vipin Maini, as Cost Auditors
of your Company for auditing the cost accounts records for the
financial year 2010-11 under provisions of Section 224[1B] and 233B of
the Companies Act, 1956.
AUDITORS' REPORT
The auditors' report on the accounts of the Company for the year under
review requires no comments.
INDUSTRIAL RELATIONS
The company maintained healthy, cordial and harmonious industrial
relations at all levels.
PERSONNEL
Particulars of employees pursuant to the provisions of Section 217[2A]
of the Companies Act, 1956, read with the Companies [Particulars of
Employees] Rules, 1975 are given below.
Name Designation/(Nature Gross Qualification
of Duties Emoluments
Chairman &
Sh. Rajneesh Managing Director 6965335 MBA
Oswal (Administration)
Vice Chairman
Sh. Vishal & Managing Director 6958113 B.Com
Oswal (Administration)
Executive Director & B.Sc.
Sh.Anil Kumar CEO 6494198 (Engg.)
(Administration) MBA
Name Experience Date of Age Last
Years Employment Years Employment
Sh. Rajneesh Executive Director
Oswal 21 01.08.03 45 Adinath Textiles
Ltd.
Sh. Vishal 17 05.07.94 38 -
Oswal
Sh. Anil Kumar Manager Finance,
Vardhman Spinning
38 01.04.83 61 & General Mills Ltd.
Note : Remuneration includes Salary, Company's Contribution to
Provident Fund and other allowance paid in cash and Taxable value of
non-cash perquisites.
DIRECTORS' RESPONSIBILITY STATEMENT
In accordance with the provisions of Section 217[2AA] of the Companies
Act, 1956, your Directors confirm that:
a] in the preparation of the annual accounts, applicable accounting
standards have been followed and there has been no materials departure.
b] the selected accounting policies were applied consistently and the
Directors 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 March 31,2011 and of the profits of the Company for the
year ended on that date.
c] Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
d] Annual accounts have been prepared on a going concern basis.
CORPORATE GOVERNANCE
As per Clause 49 of the Listing Agreement with the Stock Exchange, a
separate Chapter on Corporate Governance practices followed by the
Company together with a Certificate from the Company's Auditors
confirming compliance forms part of this report.
CONSERVATIONS OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
As required under Section 217[1][e] of the Companies Act, 1956 read
with Rule 2 of the Companies [Disclosure of particulars in the report
of Board of Directors] Rules 1988, the particulars relating to
conservation of energy, technology, absorption and foreign exchange
earning and outgo forming part of the Report are also annexed.
ACKNOWLEDGEMENT
Your Directors place on record their sincere appreciation for the
contributions made by the employees through their dedication, hard work
and commitment in achieving your Company's performance. In an
increasingly competitive environment, the collective dedication of
employees is delivering superior and sustainable shareholder value.
Your Directors also acknowledge the support and co-operation extended
by the Financial Institutions, Analysts, Banks, Government Authorities,
Customers, Vendors, Shareholders and Investors at large and look
forward to their continued support.
FOR AND ON BEHALF OF THE BOARD
(RAJNEESH OSWAL)
CHAIRMAN AND MANAGING DIRECTOR
Place: Ludhiana
Date : 28th May 2011
Mar 31, 2010
The Directors are pleased to present the 30th Annual Report on the
business and operations of the Company along with audited statements of
accounts for the year ended 31st March 2010.
Financial Results (Rs. in Lacs)
2009-2010 2008-2009
Gross Sales 24504.46 26949.07
Profit before interest
& depreciation 2269.26 3930.51
Less: Interest 626.88 647.42
Gross Profit 1642.38 3283.09
Depreciation 848.08 688.10
Net profit before tax 794.30 2594.99
Provision for currenttax 119.54 315.64
MATCredit Entitlement (42.00) [463.15]
Provision for deferred tax 175.25 930.57
Net profit after tax 541.51 1811.93
CORPORATE REVIEW
During the year under review, as indicated in last years report,
prices of paper remained under pressure, which resulted in almost 9%
fall in the gross turnover of the Company. Simultaneously, prices of
wheat straw, which is major raw material, used for manufacture of paper
by your Company went up by more than 85% during the year. Both the
above factors resulted in fall in EBIDTA of the Company from Rs.3930.51
lacs to Rs.2269.26 lacs. Correspondingly, net profits after provision
of taxation was at Rs.541.51 lacs as compared to Rs.1811.93 lacs of
last year. Prices of writing and printing paper did show some recovery
in last quarter of the year under review and your Directors expect that
prices during the current year will rule firmer as compared to last
year.
PERFORMANCE REVIEW
SHREYANS PAPERS
Production of Shreyans Papers at 34729 MTs was marginally higher as
compared to 34011 MTs of last year. However, gross turnover was lower
at Rs. 13712.86 lacs as compared to Rs.14513.52 lacs of last year due
to lower sales realization. Operations of this unit remained
satisfactory on operational front, though lower prices of finished
goods and higher prices of fiber did impact the profitability margins.
SHREE RiSHABH PAPERS
Production of Shree Rishabh Papers at 27460 MTs was margifially lower
as compared to 28743 MTs of last year due to change in product-mix.
Gross sales at Rs.10791.60 lacs were lower by almost 14% as compared to
Rs.12435.55 lacs of last year due to market conditions. Overall
profitability margins in this unit were also impacted due to reasons
mentioned above.
FINANCIAL REVIEW
During the year under review carryover losses of earlier years were
completely wiped out.
2750000 equity warrants @ Rs.32.50 each issued to various entities on
2nd October 2007 were converted into 2750000 equity shares of Rs.10/-
each at a premium of Rs.22.50 per equity share on 1st April 2009.
Also during the year under review, our Company pre-paid an amount of
Rs.299.07 lacs to ICICI Bank Limited in view of comfortable liquidity
position.
FUTURE PLANS/PROSPECTS
Paper industry continues to face pressure of increased cost of
production due to continuous increase in prices of various inputs
especially fibrous raw materials and fuels. Also significant new
addition to production capacity in the country by mills using latest
state-of-art technology is putting pressure on the margins of your
companys operations.
Your company will keep looking into various options of technical
upgradation resulting in better operational efficiency and better
quality of its output so that impact of increase in costs and
competition can be warded-off or at least minimized.
Your company is also in the discussions with various machinery
suppliers for upgradation of its production capacities.
Expansion in production capacity is also being planned in due
courseoftime.
DIVIDEND
During the year under review, though Company wiped out carryover losses
of earlier years, yet your Directors feel that there is a need to
conserve resources for future plans and regret their inability to
recommend any dividend for the current year.
DEPOSITS
At the end of the year, fixed deposits from the public were outstanding
to the tune of Rs.454.59 lacs which are well within the limits
prescribed under section 58 A of the Companies Act, 1956 read with
Rules 3[2][l] and [II] of the Companies [Acceptance of Deposits] Rules,
1975. There were no overdue deposits as on 31st March 2010.
DIRECTORS
Dr. [Mrs.] H K Bal and Shri Anil Kumar, Directors of the Company,
liable to retire by rotation at the forthcoming Annual General Meeting
under clause 113 of Article of Association of the Company and being
eligible, offer themselves for reappointment. Shri A K Chakraborty has
been appointed as additional independent Director on the Board of the
Company during current year.
AUDITORS
M/s S.C. Vasudeva & Company, New Delhi, Auditors of the Company shall
retire at the forthcoming Annual General Meeting and are eligible for
reappointment.
COST AUDITORS
The Board of Directors have appointed M/s Vipin Maini, Cost
Accountants, Delhi as the Cost Auditors of the Company under Section
233B of the Companies Act, 1956, subject to the approval of the Central
Government for the year 2009-10. The Cost Auditors Report will be
forwarded to the Central Governmentas required under Law.
AUDITORS REPORT
The auditors report on the accounts of the Company for the year under
review requires no comments.
INDUSTRIAL RELATIONS
The company maintained healthy, cordial and harmonious industrial
relations at all levels. Despite severe competition, the enthusiasm and
unstinting efforts of the employees enabled the Company to re main at
the forefront Of its business area
PERSONNEL
Particulars of employees pursuant to the provisions of Section 217[2A]
of the Companies Act, 1956, read with the Companies [Particulars of
Employees] Rules, 1975 are given below.
Name Designation / Nature Gross Qualif Experience
of Duties Emoluments ication Years
Sh Rainppsh Chairman &
Oswal Managing Director 6873897 MBA 20
(Administration)
Sh vishal Vice Chairman
Oswal & Managing Director 7591603 B.Com 16
(Administration)
Executive Director & B.Sc.
Sh.Anil Kumar CEO 5993616 (Engg.) 37
(Administration) MBA
Name Date of Age Last
Employment Years Employment
Executive Director
Sh. Rajneesh
Oswal 01,08,03 44 Adinath Textiles Ltd.
Sh. Vishal
Oswal 05.07.94 37 ---
Manager Finance,
Sh.AnilKumar 01.04.83 60 Vardhman Spinning
& General Mills Ltd.
Note: Remuneration includes Salary, Companys Contribution to Provident
Fund and other allowance paid in cash and Taxable value of non-cash
perquisites.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217[2AA] of the Companies Act, 1956, the Board of
Directors of the Company hereby state and confirm that:
1. In the preparation of the annual accounts, all the applicable
accounting standards have been followed along with proper explanations
relating to the materials departure.
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 as at the end of the financial year and of the profits
of the Company for that period.
3. The Directors had taken proper and sufficient care for the
maintenance of adequate accounting / statutory records in accordance
with the provisions of the Companies Act, 1956 for safeguarding the
assets of the Company and for preventing/detecting fraud and other
irregularities; and
4. The Directors had prepared the annual account on a going- concern
basis.
CORPORATE GOVERNANCE
A report on compliance of the conditions of corporate governance has
been obtained from the statutory auditors of the company and the same
is given as annexure. The Annual Report also contains a separate
section on corporate -governance as required under clause 49 of the
listing agreement with stock exchanges. It has always been companys
endeavour to exceed and excel through better corporate governance and
fair and transparent practices, many of which have already been in
place even before they were mandated by the Law and other regulatory
bodies.
CONSERVATIONS OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
As required under Section 217[1 ][e] of the Companies Act, 1956 read
with Rule 2 of the Companies [Disclosure of particulars in the report
of Board of Directors] Rules 1988, the particulars relating to
conservation of energy, technology, absorption and foreign exchange
earning and outgo forming part of the Report are also annexed.
ACKNOWLEDGEMENT
Your Directors take this opportunity to place on record their warm
appreciation for the invaluable contribution given and the spirit of
dedication shown by the employees at all levels during the financial
year 2009-10. The Directors also express their deep gratitude for the
business assistance, co-operation and support extended to your Company
by its customers, distributors, dealers, suppliers, service providers,
bankers, various governmental organizations/agencies, employees and
shareholders and look forward to their continued support and
co-operation in future also.
FOR AND ON BEHALF OF THE BOARD
(RAJNEESH OSWAL)
CHAIRMAN AND MANAGINGDITRECTOR
Place: Ludhiana
Date: 31th July 2010
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