Home  »  Company  »  Supreme Inds.  »  Quotes  »  Directors Report
Enter the first few characters of Company and click 'Go'

Directors Report of Supreme Industries Ltd.

Jun 30, 2015

Dear Members,

The Directors have great pleasure in presenting the 73rd Annual Report together with the Audited Financial Statements for the financial year ended 30th June, 2015.

FINANCIAL RESULTS (Rs. in lacs)

Current Previous Year Year

Total Income (net) 426144.95 397234.36

Profit before interest, depreciation and tax 67264.71 59902.51

Interest and financial charges 5794.98 7614.04

Depreciation, Amortization and Impairment 13895.05 10153.95

Profit Before Tax 47574.68 42134.53

Provision for Current Tax 17767.22 11387.94

Deferred Tax (1763.22) 2609.95

Net Profit available for Appropriation 31570.68 28136.63

Appropriation:

Interim Dividend 2540.54 2540.54

Proposed (final) Dividend 8891.88 7621.61

Tax on Dividend 1777.85 1727.05

Transferred to General Reserve 17852.45 16247.43

31570.68 28136.63

DIVIDEND

(i) Dividend on 12,70,26,870 Equity Shares of Rs. 2/- each @ 450% i.e. Rs. 9/- per share (Previous year on 12,70,26,870 Equity Shares of Rs. 2/- each @ 400% i.e. Rs. 8/- per share)

(a) Interim Dividend @ 100% i.e. Rs. 2/- per share (already paid in January 2015) 2540.54

(b) Final Dividend recommended @ 350% i.e. Rs. 7/- per share 8891.88 11432.42

(ii) Corporate Dividend Tax as applicable (including Rs. 507.96 Lacs paid on Interim Dividend) 2285.81

13718.23

OVERVIEW OF THE FINANCIAL PERFORMANCE

The financial performance highlights for the year ended 30th June, 2015, are as follows -

* The Company sold 3,01,930 MT of Plastic goods and achieved net product turnover of Rs. 3,918.47 crores during the current year against sales of 2,75,463 MT and net product turnover of Rs. 3,672.74 crores in the previous year achieving volume & product value growth of about 10% and 7% respectively.

* Total Income and Operating Profit for the year (excluding construction business) amounted to Rs. 4,115.36 crores and Rs. 570.77 crores, as compared to Rs. 3,901.70 crores and Rs. 552.86 crores, for the previous year, recording an increase of 5 % and 3 % respectively.

* Company has sold 81,831 sq.ft saleable area at an aggregate consideration of Rs. 139.31 crores during the year under review.

* The Profit before Tax and Profit after Tax, for the year amounted to Rs. 475.75 crores and Rs. 315.71 crores, as compared to Rs. 421.35 Crores and Rs. 281.37 Crores, for the previous year, recording an increase of 13 % and 12 % respectively.

FINANCIAL YEAR

Pursuant to the Section 2(41) of the Companies Act, 2013, the Company shall be adopting April-March as its Financial Year from 2015-16 instead of July-June which was followed hitherto. Consequently the current financial year shall be for a period of Nine months only from 1st July, 2015 to 31st March, 2016.

MANAGEMENT DISCUSSIONS AND ANALYSIS

The Management's Discussion and Analysis forms an integral part of this report and gives detail of the overview, industry structure and developments, different product groups of the Company, operational performance of its various business segments.

CREDIT RATING

The Company's financial discipline and prudence is reflected in strong credit rating ascribed by CRISIL.

Total Bank Loan Facilities Rs. 10478 Million (Enhanced Rated from Rs. 10153 Million)

Long-Term Rating CRISIL AA/Stable

Short-Term Rating CRISIL A1 (Reaffirmed)

CRISIL has upgraded its rating on the Long Term Bank Facilities to "CRISIL AA Stable" from "CRISIL AA- Positive". The rating for Company's Short Term Banking facilities and programme has been reaffirmed at "CRISIL A1 ".

FIXED DEPOSITS

In accordance with the terms and conditions governing the Fixed Deposit Scheme, the Company has exercised the option to repay on 1st April, 2014, all the Fixed Deposits with accrued interest as at the end of 31st March 2014. Accordingly, the Company is not having any Fixed Deposit as on 30th June, 2015 except 46 deposits amounting to Rs. 6.35 lakhs which remained unclaimed as on 30th June, 2015.

DIRECTORS' RESPONSIBILITY STATEMENT:

The Board of Directors acknowledge the responsibility for ensuing compliances with the provisions of Section 134(3)(c) read with Section 134(5) of the Companies Act, 2013 in the preparation of annual accounts for the year ended on 30th June, 2015 and state that:

a. in the preparation of the annual accounts, the applicable accounting standards had been followed and there is no material departures from the same;

b. the Directors have selected such accounting policies and applied 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 30th June, 2015 and of the profit of the Company for the year ended on that date ;

c. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d. the Directors have prepared the annual accounts on a going concern basis;

e. the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and

f. the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively;

CORPORATE GOVERNANCE

The Company has taken the requisite steps to comply with the recommendations concerning Corporate Governance.

A separate statement on Corporate Governance together with a certificate from the auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated under clause 49 of the listing agreement forms part of this Annual Report.

ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING / OUTGO

Information on conservation of energy, technology absorption, foreign exchange earnings and outgo required to be given pursuant to Section 134(3) (m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 is annexed herewith as Annexure - I to this report.

PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

The prescribed particulars of Employees required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed herewith as Annexure- II to this Report.

The information required under Section 197(12) of the Companies Act, 2013 read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and forming part of the Directors Report for the year ended 30th June, 2015 is given in the separate Annexure of this Report.

The Annual Report excluding the aforesaid Annexure is being sent to the Members of the Company in line with the provision of Section 136 of the Companies Act, 2013. Members who are interested in obtaining these particulars may write to the Company Secretary at the Registered Office of the Company. The aforesaid Annexure is also available for inspection by Members at the Registered Office of the Company, 21 days before the 73rd Annual General Meeting and up to the date of the ensuing Annual General Meeting during the business hours on working days.

CONSOLIDATED FINANCIAL STATEMENT

The consolidated financial statements of the company & its subsidiary & associate which form part of Annual Report have been prepared in accordance with section 129(3) of the Companies Act, 2013. Further, a statement containing the salient features of the Financial Statement of Subsidiary Company & Associate Company in the prescribed format AOC-1is annexed herewith as Annexure - III to this Report. The statement also provides the details of performance and financial position of the Subsidiary Company & Associate Company.

In accordance with Section 136 of the Companies Act, 2013 the Audited Financial Statements, including the consolidated financial statements & related information of the Company & Audited Accounts of its Subsidiary Company are available on the website www.supreme.co.in. These documents will also be available for inspection during business hours at the Registered office of the company. Any member desirous of obtaining a copy of the said financial statements may write to the Company Secretary at the Registered Office of the company.

Additional details regarding performance of the Associate Company & Subsidiary Company have been mentioned in the succeeding paragraphs.

ASSOCIATE COMPANY - SUPREME PETROCHEM LIMITED (SPL)

The Board of Directors of Supreme Petrochem Ltd (SPL) - promoted jointly by your Company and the R Raheja Group has recommended a dividend of Rs. 1.50 per Equity Share of Rs. 10 each for the year ended June 30, 2015. Net revenues and net profit for the year were Rs. 2652.54 crores and Rs. 35.70 crores, respectively.

SUBSIDIARY COMPANY

The Supreme Industries Overseas FZE, Sharjah, UAE, a wholly owned subsidiary, has its' principal activity to promote globally Plastics piping Systems, has completed nine year of successful operation recording net profit of AED 202779/- during the year 2014-15 up from AED 131551/- of previous year.

During the year 2014-15 exports of Plastics piping division has grown by 3.86 % in value terms amounting to US$ 5.12 Million & 7.39 % in volume terms weighing 2894 MT. During the year 2014-15 company secured twenty eight projects order from Sri- Lanka, Maldives, UAE & entered into new territory of Iraq & Malawi while adding ten new customers into its fold. Currently products are exported to twenty one countries covering GCC, Iraq, Africa, Australia, UK, Germany & Indian sub-continent.

During the year July 2015 - March 2016 Company has ambitious plan to achieve growth of 25% by increasing the client base as well expanding the geographical reach.

Company will continue exhibit the products in various international exhibitions to spread the brand name & in turn improve the export volume.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Shri Ramanathan Kannan and Shri Rajeev M. Pandia have been appointed as an Additional Independent Directors of the Company, with effect from 17th September 2014 under Section 161 of the Companies Act, 2013 & pursuant to the provisions of Article 94 of the Articles of Association of the Company. Shri R. Kannan and Shri Rajeev M. Pandia will hold office up to the date of the forthcoming Annual General Meeting and being eligible, offer themselves for appointment as Independent Directors of the Company.

In terms of Section 149,152, Schedule IV & other applicable provisions, if any, of the Companies Act, 2013 read with Companies (Appointment and Qualification of Directors) Rules, 2014, the Independent Directors can hold office for a term of up to five (5) consecutive years on the Board of Directors of your Company and are not liable to retire by rotation. Accordingly, it is proposed to appoint Shri Ramanathan Kannan & Shri Rajeev M. Pandia- Directors of your company for a term of 5 (five) consecutive years commencing from 16th September, 2015.

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

In accordance with the provisions of the Companies Act, 2013, none of the Independent Directors are liable to retire by rotation.

The Members approval is sought under Section 196(3) of the Companies Act, 2013, for continuation of Shri M. P Taparia as Managing Director and Shri S. J. Taparia as Executive Director upto 6th January, 2019. The continuation is on the same terms and conditions including remuneration as approved by the Members at the Annual General Meeting held on 17th September, 2013.

Shri V. K. Taparia Executive Director of the Company retires by rotation at the forthcoming Annual General Meeting in accordance with provisions of the Companies Act, 2013 and the Articles of Association of the Company and being eligible, offers himself for re-appointment.

KEY MANAGERIAL PERSONNEL

Shri M P Taparia, Managing Director, Shri P C Somani, Chief Financial Officer and Shri R J Saboo, AVP (Corporate Affairs) & Company Secretary were appointed as Key Managerial Personnel of your Company, in accordance with the provisions of Section 203 of the Companies Act 2013.

DISCLOSURES RELATED TO BOARD, COMMITTEES AND POLICIES

a. Board Meetings :

The Board of Directors met 5 times during the financial year ended 30th June 2015 in accordance with the provisions of the Companies Act, 2013 and rules made thereunder. The details thereof are given in the Corporate Governance Report.

b. Board Performance Evaluation :

(i) The Company has devised criteria for performance evaluation of Independent Directors, Board/Committees, and other individual Directors which includes criteria for performance evaluation of Non Executive Directors and Executive Directors. Performance evaluation has been carried out as per the Nomination & Remuneration Policy.

At the meeting of the Board all the relevant factors that are material for evaluating the performance of individual Directors, the Board/ Committees were discussed in detail. A structured questionnaire each for evaluation was prepared and recommended to the Board by Nomination & Remuneration Committee for doing the required evaluation after taking into consideration the input received from the Directors covering various aspects of the Board's functioning such as adequacy of the composition of the Board and its Committees, execution and performance of specific duties, obligations and governance etc.

A separate exercise was carried out to evaluate the performance of individual Directors including the Chairman of the Board, who were evaluated on parameters such as level of engagement and contribution, qualifications, knowledge, skills and experience in the respective fields, honesty, integrity, ethical behavior and leadership, Independence of judgment, safeguarding the interest of the Company, attending the meetings regularly, understanding the business, regulatory, competitive and social environment, understanding strategic issues and challenges, bringing outside information and perspective to Board for deliberations, ability to identify the cost benefits and implications of Board decisions etc.

The performance evaluation of the independent Directors was also carried by the entire Board. The performance evaluation of the Chairman, Managing Director & Executive Directors were carried out by the independent Directors at its separate meetings held on 24th April 2015 & 20th June 2015. The Directors expressed their satisfaction with the evaluation process.

(ii) The Board has, on the recommendation, of the Nomination & Remuneration Committee, framed a Nomination & Remuneration policy and Policy on fixation of criteria for selection & appointment of Directors & Senior Management Personnel. The Nomination & Remuneration Policy and Policy on fixation of criteria for selection & appointment of Directors & Senior Management Personnel are annexed herewith as Annexure IV (A) & Annexure IV (B) to this Report.

AUDITORS

M/s Chhogmal & Co, Chartered Accountants (Firm Registration Number: 101826W), the Statutory Auditors of the Company, hold office till the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment. The Company has received a certificate from them to the effect that their appointment, if made, would be within the prescribed limit under section 139(1) of the Companies Act, 2013.

AUDITORS' REPORT

Note on financial statement referred to in the Auditor's Report are self-explanatory and do not call for any further comments. The Auditor's Report does not contain any qualification, reservation or adverse remark.

SECRETARIAL AUDIT REPORT FOR THE YEAR ENDED 30th JUNE 2015

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, The Board has appointed M/s V Laxmans & Co., Company Secretaries (C.P No. 744), to conduct Secretarial Audit for the financial year 2014-15.

Secretarial Audit Report issued by M/s V Laxman & Co., Company Secretaries in Form MR-3 for the financial year 2014-15 forms part to this report Annexure V. The said report does not contain any observation or qualification requiring explanation or adverse remark.

MATERIAL CHANGES AND COMMITMENT AFFECTING FINANCIAL POSITION OF THE COMPANY

There are no material changes or commitments occurring after 30th June, 2015, which may affect the financial position of the Company or may require disclosure.

INTERNAL FINANCIAL CONTROLS

The company has in place Internal Financial Control system, commensurate with size & complexity of its operations to ensure proper recording of financial and operational information & compliance of various internal controls & other regulatory & statutory compliances. During the year under review, no material or serious observation has been received from the Internal Auditors of the Company for inefficiency or inadequacy of such controls.

Internal Auditors' comprising of professional Chartered Accountants monitors & evaluate the efficacy of Internal Financial Control system in the company, its compliance with operating system, accounting procedures & policies at all the locations of the company. Based on their report of Internal Audit function, corrective action in the respective area are undertaken & controls are strengthened. Significant audit observations & corrective action suggested are presented to the Audit Committee.

PARTICULAR OF CONTRACTS OR ARRANGEMENT WITH RELATED PARTIES

During the financial year 2014-2015, your company has entered into transactions with related parties as defined under Section 2(76) of the Companies Act, 2013, read with Companies (Specification of Definitions Details) Rules, 2014 which were in the ordinary course of business & on arms' length basis & in accordance with the provisions of the Companies Act,2013, Rules issued thereunder & clause 49 of the Listing Agreement. During the financial year 2014-2015, there were no transactions with related parties which qualify as material transactions under the Listing Agreement.

The details of the related party transactions as required under Accounting Standard-18 are set out in Note 44 to the standalone financial statements forming part of this Annual Report.

The Form AOC-2 pursuant to section 134 (3) (h) of the Companies Act read with Rule 8(2) of the Companies(Accounts) Rules, 2014 is set out as Annexure VI to this Report.

The Policy on Related Party Transactions as approved by the Board is also uploaded on the Company's website at the Link : www.supreme.co.in

PARTICULARS OF LOANS, GUARANTEES, INVESTMENTS AND SECURITIES

The company has not given any loans, directly or indirectly or guarantees or provided any security or made any investments covered under section 186 of the Companies Act, 2013.

VIGIL MECHANISM POLICY FOR THE DIRECTORS AND EMPLOYEES

A "Vigil Mechanism Policy" for Directors and employees of the Company is constituted, to provide a mechanism which ensures adequate safeguards to employees and Directors from any victimization on raising of concerns of any violations of legal or regulatory requirements, incorrect or misrepresentation of any, financial statements and reports, etc.

RISK MANAGEMENT POLICY

Your Company has an elaborated risk Management procedure and adopted systematic approach to mitigate risk associated with accomplishment of objectives, operations, revenues and regulations. Your Company believes that this would ensure mitigating steps proactively and help achieve stated objectives. The entity's objectives can be viewed in the context of four categories Strategic, Operations, Reporting and Compliance. We consider activities at all levels of the organisation, viz Enterprise level, Division level, Business unit level and Subsidiary level, in Risk Management framework. The Risk Management process of the Company focuses on three elements, viz. (1) Risk Assessment; (2) Risk Management; (3) Risk Monitoring.

A Risk Management Committee is constituted which has been entrusted with the responsibility to assist the Board in (a) Overseeing and approving the Company's enterprise wide risk management framework; and (b) Overseeing that all the risk that the organisation faces.

The key risks and mitigating actions are also placed before the Audit Committee of the Company. Significant audit observations and follow up actions thereon are reported to the Audit Committee. The Audit Committee reviews adequacy and effectiveness of the Company's internal control environment and monitors the implementation of audit recommendations, including those relating to strengthening of the Company's risk management policies and systems.

CORPORATE SOCIAL RESPONSIBILITY POLICY

The brief outline of the Corporate Social Responsibility (CSR) Policy of the company and the initiatives undertaken by the company on CSR activities during the year are set out in Annexure of this Report in the format prescribed in the Companies(Corporate Social Responsibility Policy) Rules 2014. (Annexure VII)

The policy is available on the website in the link:http://www. supreme.co.in/images/pdf/Corporate-Social-Responsibility- (CSR)-Policy.pdf

OTHER DISCLOSURES

Other disclosures as per provisions of Section 134 of the Act read with Companies (Accounts) Rules, 2014 are furnished as under:

EXTRACT OF ANNUAL RETURN:

The details forming part of the extract of the Annual Return in form MGT-9 is annexed herewith as Annexure -VIII

GENERAL

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:

1. Details relating to deposits covered under Chapter V of the Act.

2. Issue of equity shares with differential rights as to dividend, voting or otherwise.

3. Issue of shares (sweat equity shares) to employees of the Company under ESOS .

4. Neither the Managing Director nor the Whole Time Directors of the Company receive any remuneration or commission from any of its subsidiaries.

5. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company operations in future.

Your Directors further state that during the year under review, there were no cases filed pursuant to the Sexual Harassment of Woman at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

ACKNOWLEDGEMENT

The Board of Directors wishes to express its gratitude and record its sincere appreciation for the commitment and dedicated efforts put in by all the employees. Your Directors take this opportunity to express their grateful appreciation for the encouragement, co-operation and support received by the Company from the local authorities, bankers, customers, suppliers and business associates. The directors are thankful to the esteemed shareholders for their continued support and the confidence reposed in the Company and its management.

For and on behalf of the Board of Directors

B. L. Taparia Chairman

Place: Mumbai Date: 24th July, 2015

CIN L35920MH1942PLC003554 TEL No. 022-22851656/1159/60 Fax No. 022-22851657

E-mail: investor@supreme.co.in website: www.supreme.co.in


Jun 30, 2014

Dear Members,

The Directors have great pleasure in presenting the 72nd Annual Report together with the Audited Financial Statements for the financial year ended 30th June 2014.

FINANCIAL RESULTS (Rs. in lacs)

Current Year Previous Year

Total Income (net) 397234.36 340696.61

Profit before interest, depreciation and tax 59902.51 53939.82

Interest and financial charges 7614.04 5234.61

Depreciation, Amortization and Impairment 10153.95 8170.88

Profit Before Tax 42134.52 40534.33

Provision for Current Tax 11387.94 12560.00

Deferred Tax 2609.95 739.35

Net Profit available for Appropriation 28136.63 27234.98

Appropriation:

Interim Dividend 2540.54 2540.54

Proposed (final) Dividend 7621.61 6986.48

Tax on Dividend 1727.05 1599.49

Transferred to General Reserve 16247.43 16108.47

28136.63 27234.98

DIVIDEND

Rs. Rs.

(i) Dividend on 12,70,26,870 Equity Shares ofRs. 2/- each @ 400% i.e. Rs. 8/- per share 1016214960 (Previous year on 12,70,26,870 Equity Shares of Rs. 2/- each @ 375% i.e. Rs. 7.50 per share)

(a) Interim Dividend @ 100% i.e. Rs. 2/- per share (already paid in January 2014), 254053740

(b) Final Dividend recommended @ 300% i.e. Rs. 6/- per share 762161220

(ii) Corporate Dividend Tax as applicable (includingRs. 4,31,76,434/- paid on Interim Dividend) 172705733

1188920693

MANAGEMENT DISCUSSION AND ANALYSIS

The management''s Discussion and Analysis of operations for the year under review, as stipulated under clause 49 of the listing agreement with the stock exchanges, is provided in annexure attached to this report.

FIXED DEPOSITS

In accordance with the terms and conditions governing the Fixed Deposit Scheme, the Company has exercised the option to repay on 1st April, 2014, all the Fixed Deposits with accrued interest as at the end of 31st March 2014. Accordingly, the Company is not having any Fixed Deposit as on 1st April, 2014 except 78 deposits amount to R 11.97 lakhs which remained unclaimed as on 30th June, 2014.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to Section 217 (2AA) of the Companies Act 1956, the Directors to the best of their knowledge & belief confirm that : i. In the preparation of the annual accounts, the applicable accounting standards have been followed; ii. Appropriate accounting policies have been selected and applied consistently and have made judgment 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 June 30, 2014 and of the Profit of the Company for that period; iii. 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;

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

CORPORATE GOVERNANCE

The Company has taken the requisite steps to comply with the recommendations concerning Corporate Governance.

A separate statement on Corporate Governance together with a certificate from the auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated under clause 49 of the listing agreement forms part of this Annual Report.

ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING / OUTGO

Information on conservation of energy, technology absorption, foreign exchange earnings and outgo required to be given pursuant to Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 is annexed hereto and forms part of this report.

PERSONNEL

As required by the provisions of Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 as amended, the names and other particulars of the employees are set out in the Annexure to the Directors'' Report. However, as per the provisions of Section 219 (1)(b)(iv) of the Companies Act, 1956, the Directors'' Report is being sent to all the shareholders of the Company excluding the aforesaid information. Any shareholder interested in obtaining such particulars may write to the Secretary at the Registered Office of the Company.

SUPREME PETROCHEM LIMITED (SPL)

The Board of Directors of Supreme Petrochem Ltd (SPL) - promoted jointly by your Company and the R Raheja Group has recommended a dividend of t 1.50 per Equity Share of Rs. 10 each for the year ended June 30, 2014. Net revenues and net profit for the year were Rs. 3264.29 crores and Rs. 30.58 crores, respectively.

SUBSIDIARY COMPANY

The Supreme Industries Overseas (FZE), a wholly owned subsidiary of the Company incorporated in SAIF Zone, UAE continues to support company''s plans to increases exports in Gulf and Middle East countries. In spite of negative sentiments and slowdown in construction activity globally, it has managed to secure growth during the year under review, in exports of piping system. It has presence in more than 19 countries in the region and customers are being well serviced by the company. This company has made a profit of AED 1,31,551/- equivalent to Rs. 21.61 lacs during the year.

Company will continue to participate in various international exhibitions to spread & improve the brand name and in turn expand the export volume.

CONSOLIDATED ACCOUNTS

The Consolidated Financial Statements form part of this Annual Report.

The Ministry of Corporate Affairs (MCA) vide its Circular No. 51/12/2007-CL-III dated February 8, 2011 has granted general exemption under Section 212(8) of the Companies Act, 1956 to companies from attaching the accounts of their subsidiaries, in their annual reports subject to fulfillment of certain conditions prescribed. Accordingly the Balance Sheet, Statement of Profit & Loss and other documents of the subsidiary company is not being attached with the Balance Sheet of the Company. The summary of the key financials of the Company''s subsidiary is included in this annual report.

The Annual Accounts of the subsidiary company are open for inspection by any Member and the Company will make available a copy of these documents / details upon request by any Member of the Company interested in obtaining the same.

DIRECTORS

Shri B. L. Taparia and Shri H. S. Parikh, Directors of the Company retires by rotation at the forthcoming Annual General Meeting in accordance with provisions of the Companies Act, 2013 and the Articles of Association of the Company and being eligible, offer themselves for re-appointment.

Smt. Rashna Khan, has been appointed as an Additional Independent Director of the Company, pursuant to the provisions of Article 94 of the Articles of Association of the Company. This will fulfill the requirement of having a Woman Director on the Board of Directors under the Companies Act, 2013. She will hold the office upto the date of the forthcoming Annual General Meeting and being eligible, offers herself as an Independent Director of the Company.

Shri V K. Taparia, Executive Director, of the company who hitherto was not liable to retire by rotation is now proposed to be liable to retire by rotation pursuant to the provisions of section 152 of the Companies Act, 2013.

In terms of Section 149,152, Schedule IV & other applicable provisions, if any, of the Companies Act 2013 read with Companies (Appointment and Qualification of Directors) Rules, 2014, the Independent Directors can hold office for a term of upto five (5) consecutive years on the Board of Directors of your Company and are not liable to retire by rotation. Accordingly, it is proposed to appoint Shri S. R. Taparia, Shri B. V. Bhargava, Shri Y. P. Trivedi & Shri N. N. Khandwala- Directors of your company for a term of 5 (five) consecutive years commencing from 17th September 2014.

The Company has received requisite notices in writing from members proposing Shri S. R. Taparia, Shri B. V. Bhargava, Shri Y. P. Trivedi & Shri N. N. Khandwala as Independent Directors.

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

AUDITORS

M/s. Chhogmal & Co., Auditors of the Company hold office until the conclusion of the ensuing Annual General Meeting. The Company has received a certificate from them to the effect that their appointment, if made, would be within the prescribed limits under Section 139(1) of the Companies Act, 2013.

COST AUDITORS

The Board of Directors at their meeting held on 17th September, 2013, has appointed M/s. Kishore Bhatia & Associates, as the Cost Auditors, to conduct the audit of cost records in respect of plastics products for the year 2013-14.

The Cost Audit Report for the financial year 2012-13 has been filed within a prescribed time limit.

ACKNOWLEDGEMENT

The Board of Directors wishes to express its gratitude and record its sincere appreciation for the commitment and dedicated efforts put in by all the employees. Your Directors take this opportunity to express their grateful appreciation for the encouragement, co-operation and support received by the Company from the local authorities, bankers, customers, suppliers and business associates. The directors are thankful to the esteemed shareholders for their continued support and the confidence reposed in the Company and its management.

For and on behalf of the Board of Directors

B. L. Taparia

Chairman

Place: Mumbai Date : 21st July, 2014


Jun 30, 2013

The Directors have great pleasure in presenting the 71st Annual Report together with the Audited Financial Statements for the financial year ended 30th June, 2013.

1. FINANCIAL RESULTS

(Rs.in lacs) Current Year Previous Year

Total Income (net) 340696.61 293847.01

Profit before interest, depreciation and tax 53939.82 48281.54

Interest and financial charges 5234.61 5479.67

Depreciation, Amortization and Impairment 8170.88 7246.28

Profit Before Tax 40534.33 35555.59

Provision for Current Tax 12560.00 11131.98

Deferred Tax 739.35 372.02

Net Profit available for Appropriation 27234.98 24051.59

Appropriation:

Interim Dividend 2540.54 1905.40

Proposed (final) Dividend 6986.48 5716.21

Tax on Dividend 1599.49 1236.41

Transferred to General Reserve 16108.47 15193.57 27234.98 24051.59

2. DIVIDEND

vv

(i) Dividend on 12,70,26,870 Equity Shares of R 2.00 each @ 375% i.e. R 7.50 per share 95,27,01,525

(Previous year on 12,70,26,870 Equity Shares of R 2.00 each @ 300% i.e. R 6.00 per share) as under:

(a) Interim Dividend @ 100 % i.e. R 2.00 per share (already paid in February 2013), 25,40,53,740

(b) Final Dividend recommended @ 275% i.e. R 5.50 per share 69,86,47,785

(ii) Corporate Dividend Tax as applicable (including R 4,12,13,868/- paid on Interim Dividend) 15,99,49,059

1,11,26,50,584

3. MANAGEMENT DISCUSSION AND ANALYSIS

The management ''s Discussion and Analysis of operations for the year under review, as stipulated under clause 49 of the listing agreement with the stock exchanges, is provided in annexure attached to this report.

4. FIXED DEPOSITS

The amount of Fixed Deposits has decreased from R 1745.41 lacs to R 365.19 lacs. Out of deposits which matured during the year, 135 deposits amounting to be R 22.75 lacs remained unclaimed as on 30th June, 2013 of which R 1.30 lacs have since been renewed / refunded.

5. DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to Section 217(2AA) of the Companies (Amendment) Act, 2000, the Directors to the best of their knowledge and belief confirm that:

a) in the preparation of the annual accounts, the applicable accounting standards have been followed;

b) appropriate accounting policies have been selected and applied consistently and have made judgment 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 June 30, 2013 and of the Profit of the Company for that period;

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) The annual accounts have been prepared on a going concern basis.

6. CORPORATE GOVERNANCE

The Company has taken the requisite steps to comply with the recommendations concerning Corporate Governance.

A separate statement on Corporate Governance together with a certificate from the auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated under clause 49 of the listing agreement forms part of this Annual Report.

7. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING / OUTGO

Information on conservation of energy, technology absorption, foreign exchange earnings and outgo required to be given pursuant to Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 is annexed hereto and forms part of this report.

8. PERSONNEL

As required by the provisions of Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 as amended, the names and other particulars of the employees are set out in the Annexure to the Directors’ Report. However, as per the provisions of Section 219 (1) (b) (iv) of the Companies Act, 1956, the Directors’ Report is being sent to all the shareholders of the Company excluding the aforesaid information. Any shareholder interested in obtaining such particulars may write to the Secretary at the Registered Office of the Company.

9. SUPREME PETROCHEM LTD (SPL)

SPL - jointly promoted by your Company and the R Raheja Group - has reported revenues and net profits of R 2968.18 crores and R 72.82 crores respectively for the year ended June 30, 2013. Its Board of Directors has recommended a dividend of R 2.50 per equity share of R10 each.

The first phase of debottlenecking of the Polystyrene (PS) plant to increase the proportion of value added grades by 40,000 TPA with the overall PS installed capacity of 2,72,000 TPA was completed in August 2012 while the gas based Captive Power Plant of 4000 KVA was commissioned in September 2012.

10. SUBSIDIARY COMPANY

The Supreme Industries Overseas FZE, Sharjah, UAE, a wholly owned subsidiary, has completed seventh year of operation recording net profit of AED 73,342/- equivalent to R 11.92 lakhs during the year 2012-13.

Principal activity of this enterprise is to promote globally Plastics piping Systems manufactured by the Company.

During the year 2012-13 export of Plastics piping division has continued to grow scaling US$ 4.51 million in-spite of dull business climate in the overseas market.

Recessionary trends in Europe during the whole of last year, depreciation of U$ during the last quarter, political disturbances in upper Gulf has dampened the growth.

In the year 2012-13 company managed to secure projects in Sri-Lanka while added new customer to its fold. Currently products are exported to fifteen prime countries covering GCC, Africa, Australia, UK, Germany & Indian sub-continent.

Company has secured product licenses to sale product in overseas market & initiated a process to obtain valuable product certification through internationally recognized certifying bodies. This reflects company’s commitment towards the supply of quality products while improving the brand image.

During the year 2013-14 company is projecting to achieve export over of US$ 6.0 Million by increasing the client base as well expanding the geographical reach. Company has decided to exhibit the products in various international exhibitions to spread the brand name & in turn improve the export volume.

11. CONSOLIDATED ACCOUNTS

The Consolidated Financial Statements form part of this Annual Report.

The Ministry of Corporate Affairs (MCA) vide its Circular No. 51/12/2007-CL-III dated February 8, 2011 has granted general exemption under Section 212(8) of the Companies Act, 1956 to companies from attaching the accounts of their subsidiaries, in their annual reports subject to fulfillment of certain conditions prescribed. Accordingly the Balance Sheet, Statement of Profit & Loss and other documents of the subsidiary company is not being attached with the Balance Sheet of the Company. The summary of the key financials of the Company’s subsidiary is included in this annual report.

The Annual Accounts of the subsidiary company are open for inspection by any Member and the Company will make available a copy of these documents / details upon request by any Member of the Company interested in obtaining the same.

12. DIRECTORS

Shri H. S. Parikh and Shri Y. P. Trivedi, Directors of the Company retire by rotation at the forthcoming Annual General Meeting in accordance with provisions of the Companies Act, 1956 and the Articles of Association of the Company and being eligible, offer themselves for re-appointment.

13. AUDITORS

M/s. Chhogmal & Co., Auditors of the Company hold office until the conclusion of the ensuing Annual General Meeting. The Company has received a certificate from them to the effect that their appointment, if made, would be within the prescribed limits under Section 224 (1-B) of the Companies Act, 1956.

14. COST AUDITORS

The Board of Directors at their meeting held on 17th September, 2012, has appointed M/s. Kishore Bhatia & Associate, as the Cost Auditors, to conduct the audit of cost records in respect of plastics products for the year 2012-13.

The Cost Audit Report for the financial year 2012-13 would be filed by the Company with the Central Government within a prescribed time.

15. ACKNOWLEDGEMENT

The Board of Directors wishes to express its gratitude and record its sincere appreciation for the commitment and dedicated efforts put in by all the employees. Your Directors take this opportunity to express their grateful appreciation for the encouragement, co-operation and support received by the Company from the local authorities, bankers, customers, suppliers and business associates. The directors are thankful to the esteemed shareholders for their continued support and the confidence reposed in the Company and its management.

For and on behalf of the Board of Directors

B. L. Taparia

Chairman

Place: Mumbai Date: 18th July, 2013


Jun 30, 2012

The Directors have great pleasure in presenting the 70th Annual Report together with the Audited Financial Statements for the financial year ended 30th June 2012.

1. FINANCIAL RESULTS

(Rs in lakhs)

Current Year Previous Year

Total Income (net) 297621.98 247868.06

Profit before interest, depreciation and tax 48241.54 36709.23

Interest and financial charges 5479.67 4250.19

Depreciation, Amortization and Impairment 7246.28 6188.62

Profit Before Tax 35555.59 26270.42

Provision for Current Tax 11131.98 7804.00

Deferred Tax 372.02 969.42

Net Profit available for Appropriation 24051.59 17497.00

Appropriation:

Interim Dividend 1905.40 1651.35

Proposed (final) Dividend 5716.21 3810.80

Tax on Dividend 1236.41 892.48

Transferred to General Reserve 15193.56 11142.37

24051.59 17497.00

2. DIVIDEND

Rs Rs (i) Dividend on 12,70,26,870 Equity Shares of Rs 2/- each 76,21,61,220 @ 300% i.e. Rs 6/- per share

(Previous year on 12,70,26,870 Equity Shares of Rs 2/- each @ 215% i.e. Rs 4.30 per share)

Interim Dividend @ 75% i.e. Rs 1.50 per share 19,05,40,305 (already paid in February 2012)

Final Dividend recommended @ 225% i.e. 57,16,20,915 Rs 4.50 per share

(ii) Corporate Dividend Tax as applicable (including 12,36,41,604 Rs. 3,09,10,401/- paid on Interim Dividend)

88,58,02,824

3. MANAGEMENT DISCUSSION AND ANALYSIS

The management 's Discussion and Analysis of operations for the year under review, as stipulated under clause 49 of the listing agreement with the stock exchanges, is provided in annexure attached to this report.

FIXED DEPOSITS

The amount of Fixed Deposits has decreased from Rs 2635.18 lakhs to Rs 1745.41 lakhs. Out of deposits which matured during the year, 272 deposits amounting to be Rs 43.37 lakhs remained unclaimed as on 30th June, 2012 of which Rs 4.70 lakhs have since been renewed/refunded.

4. DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to Section 217(2AA) of the Companies (Amendment) Act, 2000, the Directors to the best of their knowledge and belief confirm that:

I. in the preparation of the annual accounts, the applicable accounting standards have been followed;

II. appropriate accounting policies have been selected and applied consistently and have made judgment 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 June 30, 2012 and of the Profit of the Company for that period;

III. 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;

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

5. CORPORATE GOVERNANCE

The Company has taken the requisite steps to comply with the recommendations concerning Corporate Governance.

A separate statement on Corporate Governance together with a certificate from the auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated under clause 49 of the listing agreement forms part of this Annual Report.

6. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING / OUTGO

Information on conservation of energy, technology absorption, foreign exchange earnings and outgo required to be given pursuant to Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 is annexed hereto and forms part of this report.

7. PERSONNEL

As required by the provisions of Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 as amended, the names and other particulars of the employees are set out in the Annexure to the Directors' Report. However, as per the provisions of Section 219 (1)(b)(iv) of the Companies Act, 1956, the Directors' Report is being sent to all the shareholders of the Company excluding the aforesaid information. Any shareholder interested in obtaining such particulars may write to the Secretary at the Registered Office of the Company.

8. SUPREME PETROCHEM LIMITED (SPL)

The Board of Directors of Supreme Petrochem Ltd (SPL) - promoted jointly by your Company and the R Raheja Group has recommended a dividend of Rs 1.40 per equity share of Rs10 each for the year ended June 30, 2012. Net revenues and net profit for the year were Rs 227.67 Crores and Rs 31.37 Crores respectively.

The new plants for Expandable Polystyrene (including Cup Grade EPS) commenced commercial production from February, 2012. SPL's total installed capacity for EPS thus stands at 72,100 TPA considering its plant sites in Maharashtra and Tamil Nadu and is the largest in the country.

The debottlenecking of the existing Polystyrene lines to increase the production capacity of premium value added grades by 50000 TPA within the overall capacity of 272000 TPA is progressing as per schedule and is likely to be completed by the quarter ended December 31, 2012.

The environment clearance for the 4000 KVA Captive Gas Engine Power plant has been received. Consent to operate is awaited from Maharashtra Pollution Control Board. The plant is expected to start by September 2012.

9. SUBSIDIARY COMPANY

The Supreme Industries Overseas (FZE), a wholly owned subsidiary of the Company incorporated in SAIF Zone, UAE is continue to support company's plans to increases exports in Gulf and Middle East countries. In spite of negative sentiments and slowdown in construction activity globally, it has managed to secure growth during the year under review, though marginally, in exports of piping system. It has presence in more than 17 countries in the region and customers are being well serviced by the company. This company has made a loss of AED 29,579 during the year.

10. CONSOLIDATED ACCOUNTS

The Consolidated Financial Statements form part of this Annual Report.

The Ministry of Corporate Affairs (MCA) vide its Circular No. 51/12/2007-CL-III dated February 8, 2011 has granted general exemption under Section 212(8) of the Companies Act, 1956 to companies from attaching the accounts of their subsidiaries, in their annual reports subject to fulfillment of certain conditions prescribed. Accordingly the Balance Sheet, Profit & Loss Account and other documents of the subsidiary company is not being attached with the Balance Sheet of the Company. The summary of the key financials of the Company's subsidiary is included in this annual report.

The Annual Accounts of the subsidiary company are open for inspection by any Member and the Company will make available a copy of these documents / details upon request by any Member of the Company interested in obtaining the same.

11. DIRECTORS

Shri B. V. Bhargava and Shri S. R. Taparia, Directors of the Company retire by rotation at the forthcoming Annual General Meeting in accordance with provisions of the Companies Act, 1956 and the Articles of Association of the Company and being eligible, offer themselves for re-appointment.

12. AUDITORS

M/s. Chhogmal & Co., Auditors of the Company hold office until the conclusion of the ensuing Annual General Meeting. The Company has received a certificate from them to the effect that their appointment, if made, would be within the prescribed limits under Section 224 (1-B) of the Companies Act, 1956.

13. ACKNOWLEDGEMENT

The Board of Directors wishes to express its gratitude and record its sincere appreciation for the commitment and dedicated efforts put in by all the employees. Your Directors take this opportunity to express their grateful appreciation for the encouragement, co-operation and support received by the Company from the local authorities, bankers, customers, suppliers and business associates. The directors are thankful to the esteemed shareholders for their continued support and the confidence reposed in the Company and its management.

For and on behalf of the Board of Directors

Place: Mumbai B L Taparia

Date: 20h July, 2012 Chairman


Jun 30, 2011

Dear Members,

The Directors have great pleasure in presenting the 69th Annual Report together with the Audited Financial Statements for the financial year ended 30th June 2011.

FINANCIAL RESULTS

(Rs. in lakhs)

Current Year Previous Year

Total Income (net) 247868.06 202195.31

Profit before interest, depreciation and tax 36709.23 30556.29

Interest and financial charges 4250.19 3302.71

Depreciation, Amortization and Impairment 6188.62 5292.04

Profit before Tax 26270.42 21961.54

Provision for Current Tax 7804.00 6932.70

Deferred Tax 969.42 556.30

Excess provision of earlier years w/back - -10.48

Net Profit available for Appropriation 17497.00 14883.02

Appropriation:

Interim Dividend 1651.35 1270.27

Proposed (final) Dividend 3810.80 3302.70

Tax on Dividend 892.48 764.42

Transferred to General Reserve 11142.37 9145.63

17497.00 14483.02

DIVIDEND

Rs. Rs.

(i) Dividend on 12,70,26,870 Equity Shares ofRs. 2/- each @ 215% i.e. Rs. 4.30 per share 54,62,15,541 (Previous year on 2,54,05,374 Equity Shares ofRs. 10/- each @ 180% i.e. Rs. 18.00 per share)

(a) Interim Dividend @ 65% i.e. Rs. 1.30 per share (already paid in February 2011) 16,51,34,931

(b) Final Dividend recommended @ 150% i.e. Rs. 3.00 per share 38,10,80,610

(ii) Corporate Dividend Tax as applicable (including Rs. 2,74,26,848/- paid on Interim 8,92,47,650 Dividend)

63,54,63,191

SUB-DIVISION OF EQUITY SHARES

Pursuant to the approval of the Shareholders, at the 68th Annual General Meeting of the Company, held on 14th September, 2010, the nominal face value of Equity Shares of the Company was sub-divided from Rs. 10/- each to Rs. 2/- each with effect from 19th October, 2010. Accordingly, the Equity Share Capital of the Company consisting of 2,54,05,374 Equity Shares of Rs. 10/- (F.V.) each fully paid-up was sub-divided into 12,70,26,870 Equity Shares of Rs. 2/- (F.V.) each fully paid-up.

MANAGEMENT DISCUSSION AND ANALYSIS

The Management's Discussion and Analysis of operations for the year under review, as stipulated under clause 49 of the listing agreement with the stock exchanges, is provided in annexure attached to this report.

FIXED DEPOSITS

The amount of Fixed Deposits has decreased from Rs. 3929.67 lakhs to Rs. 2635.18 lakhs. Out of deposits which matured during the year, 289 deposits amounting to be Rs. 52.86 lakhs remained unclaimed as on 30th June, 2011 of which Rs. 6.30 lakhs have since been renewed/refunded.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to Section 217(2AA) of the Companies (Amendment) Act, 2000, the Directors to the best of their knowledge and belief confirm that:

i. in the preparation of the annual accounts, the applicable accounting standards have been followed;

ii. appropriate accounting policies have been selected and applied consistently and have made judgment 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 June 30, 2011 and of the Profit and Loss Account for the year ended June 30, 2011;

iii. 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;

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

CORPORATE GOVERNANCE

The Company has taken the requisite steps to comply with the recommendations concerning Corporate Governance.

A separate statement on Corporate Governance together with a certificate from the auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated under clause 49 of the listing agreement forms part of this Annual Report.

ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING / OUTGO

Information on conservation of energy, technology absorption, foreign exchange earnings and outgo required to be given pursuant to Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 is annexed hereto and forms part of this report.

PERSONNEL

As required by the provisions of Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 as amended, the names and other particulars of the employees are set out in the Annexure to the Directors' Report. However, as per the provisions of Section 219 (1)(b)(iv) of the Companies Act, 1956, the Directors' Report is being sent to all the shareholders of the Company excluding the aforesaid information. Any shareholder interested in obtaining such particulars may write to the Secretary at the Registered Office of the Company.

SUPREME PETROCHEM LIMITED (SPL)

Supreme Petrochem Limited (SPL) promoted jointly by your Company and R. Raheja Group has declared a dividend of Rs. 2.80 per equity share of Rs. 10 each (F.V.) for the year ended 30th June, 2011. Net revenues of the company for the year were Rs. 1943.49 crores while net profit was Rs. 87.69 crores.

Project for Expandable Polystyrene (EPS) including Cup Grade EPS with a total capacity of 44,400 TPA is mechanically complete and trial runs have commenced.

Speciality Polystyrene and Compounding capacity has been increased to 30,000 TPA.

SUBSIDIARY COMPANY

The Supreme Industries Overseas (FZE), a wholly owned subsidiary of the Company incorporated in SAIF Zone, UAE is supporting well in increasing company's exports in Gulf and Middle East countries. After two consecutive cycle of de-growth, exports in those region have increased by 12% in value and 14% in volume during the year under review. It has presence in more than 17 countries in the region and customers are being well serviced by the company. This company has made a nominal loss of AED 8623 during the year.

CONSOLIDATED ACCOUNTS

The Consolidated Financial Statements form part of this Annual Report.

The Ministry of Corporate Affairs (MCA) vide its Circular No. 51/12/2007-CL-III dated February 8, 2011 has granted general exemption under Section 212(8) of the Companies Act, 1956 to companies from attaching the accounts of their subsidiaries, in their annual reports subject to fulfillment of certain conditions prescribed. Accordingly the Balance Sheet, Profit & Loss Account and other documents of the subsidiary company is not being attached with the Balance Sheet of the Company.

The Annual Accounts of the subsidiary company are open for inspection by any Member and the Company will make available a copy of these documents / details upon request by any Member of the Company interested in obtaining the same.

DIRECTORS

Shri E. B. Desai, a sitting member of the Board of Directors of the Company passed away on 24th December, 2010. The Board of Directors express its profound sorrow at the sad demise of Shri E. B. Desai and record its appreciation for valuable contribution made by him during the tenure of his office, in setting up policies conducive to the growth and successful working of the Company.

Shri B. L. Taparia and Shri H. S. Parikh, Directors of the Company retire by rotation at the forthcoming Annual General Meeting in accordance with provisions of the Companies Act, 1956 and the Articles of Association of the Company and being eligible, offer themselves for re-appointment.

AUDITORS

M/s. Chhogmal & Co., Auditors of the Company hold office until the conclusion of the ensuing Annual General Meeting. The Company has received a certificate from them to the effect that their appointment, if made, would be within the prescribed limits under Section 224 (1-B) of the Companies Act, 1956.

ACKNOWLEDGEMENT

The Board of Directors wishes to express its gratitude and record its sincere appreciation for the commitment and dedicated efforts put in by all the employees. Your Directors take this opportunity to express their grateful appreciation for the encouragement, co- operation and support received by the Company from the local authorities, bankers, customers, suppliers and business associates. The directors are thankful to the esteemed shareholders for their continued support and the confidence reposed in the Company and its management.

For and on behalf of the Board of Directors

B. L. Taparia

Chairman

Place: Mumbai

Date: 25h July, 2011









 
Subscribe now to get personal finance updates in your inbox!