Mar 31, 2014
The Members
M/s Neo Corp International Limited
DearShareholders
The Directors are delighted to present the 29th Annual Report of
your Companya long with the audited accounts for the year ended on
31st March 2014.
PERFORMANCE HIGHLIGHTS
The financial results for the year ended on 31.03.2014 are as under:
(Rs. In Lacs)
PARTICULARS 2013-14 2012-13
Gross Income 59966.23 43010.98
Profit before Interest, Depreciation
and Tax 7046.89 4930.37
Less:
1) Interest 2832.95 2225.35
2) Depreciation 768.81 479.70
3) Provision for Tax
-Current Tax 1425.00 541.00
-Deferred Tax 47.54 101.27
4) Prior Period adjustments_
Profit after Tax 1972.59 1583.05
Appropriation
Transfer to General Reserve 25.00 25.00
Proposed dividend and tax on prop.
Dividend 89.21 220.95
Earning per equity share_ 5.19 4.16
YEAR IN RETROSPECT
Your Company has maintained its excellent pace of growth reflected by
the significant rise in Turnover. During the year under review, your
Company has recorded a turnover of 592.25 Crores as against Rs. 424.23
Crores in the previous year registering an increase of 39.61%. The Net
profit (before tax and extra ordinary items) for the financial year
ended 31st March 2014 increased to Rs.34.45 Crores from Rs. 30.07 Crores in
the previous year representing an increase of 14.57%.
DIVIDEND
Yours directors are pleased to recommend a dividend of 0.20/- per
equity share at the rate of 2% for the financial year ended on 31st
March 2014 on 38022198 fully paid equity shares of 10/- each. The
dividend, if approved, will be paid to the members within the time
period stipulated by the Companies Act, 2013.
The directors recommend that after making provision for taxation and
proposed dividend the amount of 0.25 Cr. be transferred to General
Reserve. With this the company''s reserve and surplus stands atRs. 218.48
Cr.
BUSINESSOVERVIEW
The technical textiles sector being one of the most innovative branches
of the industry in the world is ranking as one the five high tech
sectors with the greatest potential for development. India is now
emerging as a powerhouse of both production as well as end- use
consumption of technical textiles. The demand for technical textiles
will be boosted by the changing economics cenario.
The success of technical textiles is primarily due to the creativity,
innovation and versatility in fibres, yarns and woven/ knitted/
nonwoven fabrics with applications spanning an enormous range of
uses. The ability of technical textiles to combine with each other and
with others to create a new functional products offer unlimited
opportunity to growth.
The production of different items of technical textile industry has
been slowly but steadily increasing in the country which is further
contributing in the growth of the industry as a whole.
Global Scenario:
Technical Textile is the sunrise segment of the global Textile
industry. With increasing competition and diminishing margins in the
production of conventional textiles, textile manufacturers in
industrialized countries have switched over to production of value-
added technical textiles. As the use of technical textiles is dictated
by need, its pricing normally offers good margins. The Technical
Textile industry is estimated to account for over 50% of the total
textile activity in certain industrialized countries. While the US
continues to be the main manufacturers and consumers of functional
textiles, China has emerged as a large manufacturer of the same. India
and Russia are the other important markets for technical textiles,
where consumption is increasing at afastpace.
The Indian Scenario:
India is emerging as a significant player in technical textiles. The
fast- paced economic growth leading to infrastructure creation as well
as higher disposable income has made India a key market for the
technical textile products. Moreover, the country has developed a
foothold in the production of technical textiles. Considering its
highly skilled and scientific/technical manpower and abundant
availability of raw materials, India can emerge as a key player in the
technical textiles industry.
lndianTextilelndustryinvolvesaround35million workers directlyand
accounts for 21% of the total employment generated in the economy, the
second largest provider of employment after agriculture. Thus,
Technical textiles holds significant potential in India and the
government has already taken steps to promote this industry. Indian
technical textile market is nascent and is quite honestly depending on
government''s push and mandatory regulations to penetrate into different
sectors. The market for technical textiles is expected to cross 1.5
lakh crore by 2016-17. The strong interest in the segment is driven by
better profit margins and less competition.
JOINTVENTURE
For its long term strategic objectives, your Company continued to give
impetus towards taking new business initiatives by formation of a new
Joint Venture (JV) named ''Neo Ds Advanced Nonwovens Limited''. The JV is
controlled by Neo Corp and a Belgium Based Company De Saedeleir Textile
Platform (''DS'') with a plan to venture into rPET needlefelt project.
''DS'' is one of the major European PET fibre and needlefelt producers.
Neo Corp is having 51% stake in the sharecapital of the newJV Neo Ds
Advanced Nonwovens Limited''.
SUBSIDIARY COMPANIES
Information and Documents Pursuanttotheprovisionsof theSection 212 of
the Companies Act, 1956 relating to Europlast Limited, Sacos Indigo
Private Limited, Neoflex Infracon Limited, Poly Logic International
Private Limited, Prism Flexible Solutions Private Limited and Polybase
(H.K.) Limited subsidiary Companies are annexed forming Part of this
Report.
CONSOLIDATION OF ACCOUNTS
The Consolidated Financial Statements presented by the Company include
financial results of its subsidiary companies approved in accordance
with Accounting Standards and as per revised Schedule VI of the
Companies Act, 1956. The Ministry of Corporate Affairs, Government of
India vide its circular No. 5/12/2007-CL-lll dated 8th February, 2011
has granted exemption under 212(8) of the Companies Act, 1956 from
attaching Balance Sheet, Profit and Loss account and other documents of
the subsidiary companies to the balance sheet of the Company, provided
certain conditions are fulfilled.
Accordingly, the Company will make availabletheAnnual Accounts of the
subsidiary companies and the related detailed information to any member
of the Company who may be interested in obtaining the same. The annual
accounts of the subsidiary companies will also be kept open for
inspection at the Registered Office of the Company and that of the
respective subsidiary companies. The company will furnish a hard copy
of details of accounts of subsidiaries to any shareholderon demand.
GOVERNMENT RECOGNIZEDR & DCENTER
NCIL has set its own R & D Centre which is recognized by Department of
Science and Industrial Research under Ministry of Science and
Technology. R & D Centre is equipped with all necessary testing
equipments and competent scientists to conduct R&D activities. R & D
Centre is having a library where all national and international
standards, magazines, newsletters and technical literature necessary
for R & D activities available. R & D envisions in assisting NCIL, to
raise its profile to the zenith of top most manufactures of technical
textile through relentless R & D activities. Mission of R & D center is
to discover new materials, process and technologies to deliver
products, services and solutions to the complete satisfaction of end
users.
INSURANCE CLAIM
A fire broke out in TECHTEXTIL, the EOU division of NCIL situated at
Pithampur, on 27th February at midnight, 2010 bringing a loss to plant,
machinery, stock in process and finished stock. The inferno which
caused damaged was insured under various policies taken from United
India Insurance Company Limited and Oriental Insurance Company Limited.
The total claim launched was to the tune of INR 52.05 crores. The
company has received the claim of INR 39.43 Crores, during the earlier
year. The Company has filed arbitration against the assessment of claim
of INR 4.88 Crores. The Company is hopeful to receive the said amount.
CORPORATE GOVERNANCE
A detailed report on the status of implementation of the corporate
governance guidelines has been furnished as an annexure to this report.
DIRECTORS'' RESPONSIBILITYSTATEMENT
Pursuant to the provisions of Sec 217(2AA) of Companies Act, 1956,
thedirectorsstatethat:
a. that in preparation of the annual accounts, the applicable
accounting standards have been followed alongwith proper explanations
relatingto material departures if any,
b. that the directors have selected such accounting policies and
applied them consistently and made judgements and estimates
thatarereasonableand prudent soastogivetrueandfairviewof the state of
affairs of the company at the end of the financial year and of the
profit of the company for that period,
c. that the directors have taken proper and sufficient care of 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. that the directors have prepared the annual accounts on a going
concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, ADAPTATION AND
INNOVATION & FOREIGN EXCHANGE EARNING AND OUTGO
A. CONSERVATION OF ENERGY
The rules relating to the disclosure of particulars with respect to the
conservation of energy is not applicable to the company. However the
company continued its conscious efforts to minimize energy consumption
and more and more innovations and improvements were introduced to
further reduce the energy consumption.
B. TECHNOLOGY ABSORPTION-ADAPTATION AND INNOVATION
RESEARCHANDDEVELOPMENT(R&D):
The Company has set up a separate R&D department with a mandate to take
care of Continuous enhancement in process, efficiency, product range
and protection of intellectual property rights Filing of patents for
several products developed in past years is in advance stage.
Specific areas in which R&D carried out by the company.
The company continued its efforts towards the extension of the product
range, loweringcosts, process improvements & upgradation, installation
of energy efficientequipments.
Benefitsderived
- Performance improvement
- Development of in-house skills to manufacture high value added
products
- Improvingsupply chain efficiency
- Cost reduction
- Environment sustainability Future Plan of action
- Development of Geotextile fabrics for various re-enforcement,
filtration and separation applications.
- Ensuring perennial business with the network.
- Reduced cost of network management.
- OEE analysis & Productivity improvement of Blown film plant and
knitting machines
- Differentiating ourselves on technical excellence across all
faculties.
Expenditure on R&D:Rs. 67.00 Lacs
TECHNOLOGY ABSORPTION. ADAPTATION AND INNOVATION:
The company also continued to use the latest technologies for improving
the productivity and quality of the products manufactured.
The company is employing indigenous technology for its operations.
FOREIGN EXCHANGE EARNING ANDOUTGO
The company has earned foreign exchange of 14255.18 lacs during the
year.
The details of foreign exchange outgo are as follows:
Material import : 3223.92 lacs
Stores & spares : Rs.NIL
Capital goods : Rs. 2884.60 lacs
Expenditure in foreign currency : 68.72 lacs
PARTICULARSOF EMPLOYEES
The information required under Sec 217(2A) of the Companies Act 1956 is
not given as there was no employee in receipt of remuneration
duringtheyear, exceedingthe limits prescribed by the Companies
(Particulars of Employees) Rules, 1975 as revised.
DEPOSITS
The company has not accepted any deposit from the public attracting the
provisionsofSec58AoftheCompanies Act 1956.
DIRECTORS
At the ensuing Annual General Meeting, Mr. Utkarsh Trivedi, Director of
the Company, retires by rotation and being eligible offers himself for
re-appointment.
AUDITORS
M/s. A. P. Garg & Co., Chartered Accountants hold office until the
conclusion oftheensuing Annual General Meetingandareeligiblefor
re-appointment. They have furnished a certificate to the effect that
their appointment if made, would be within the prescribed limits under
Sec 224 (lB) of the Companies Act 1956.
AUDITORS''REPORT
Report of the auditors and their observations and notes to the accounts
of the company for the year under review are attached herewith which
are self-explanatory and do not require further explanation.
ACKNOWLEDGEMENT
Your Directors provide their gratitude to the various Government
Agencies, Banks and financial institutions, investors, Company''s
business associates, customers, suppliers and other service providers
fortheircontinued support.
Your Directors place on record their sincere appreciation of the
contributions made by the employees of the Company and its subsidiaries
at all level through their hard work, dedication and support in
ensuring an excellent all around operational performance.
The Board appreciates and value the contributions made by every member
of the "NCIL" family globally. The Board is also deeply grateful to the
shareholders for the confidence and faith that has been reposed in
them. Driven by values and powered by internal vitality, the entire
"NCIL Group" stands committed to create an even brighter future for all
the stake holders.
Date: 30th May, 2014 Forand on behalf of the
Place: Indore Board of Directors
SUNILK. TRIVEDI
DIN No. 00053000
(Chairman & Managing Director)
Mar 31, 2013
To The Members of M/s Neo Corp International Limited
Dear Shareholders
The Directors are delighted to present the 28th Annual Report of your
Company along with the audited accounts for the year ended on 31 st
March 2013.
PERFORMANCE HIGHLIGHTS
The financial results for the year ended on 31.03.2013 are as under:
(Rs.In Lacs)
PARTICULARS 2012-13 2011-12
Gross Income 43010.98 28998.90
Profit before Interest,
Depreciation and Tax 4930.37 4426.80
Less:
1) Interest 2225.35 1855.30
2) Depreciation 479.70 373.78
3) Provision for Tax
-Current Tax 541.00 82.50
-Deferred Tax 101.27 457.28
4) Prior Period adjustments
(-) (-) Profit after tax 1583.05 1657.94
Appropriation
Transfer to General Reserve 25.00 25.00
Proposed dividend and tax on
prop. Dividend 220.95 225.28
Earning per equity share 4.16 7.44
YEAR IN RETROSPECT
Your Company has maintained its excellent pace of growth reflected by
the significant rise in Turnover. During the year under review, your
Company has recorded a turnover of 424.23 Crores as against Rs. 283.99
Crores in the previous year registering an increase of 49.38%. The Net
profit (before tax and extra ordinary items) for the financial year
ended 31st March 2013 increased to Rs. 30.07 Crores from ^21.97 Crores in
the previous year representing an increase of 36.86 %.
DIVIDEND
Yours directors are pleased to recommend a dividend ofRs. 0.50/- per
equity share at the rate of 5% for the financial year ended on 31st
March 2013 on 38022198 fully paid equity shares of Rs. 107- each.
The directors recommend that after making provision for taxation and
proposed dividend the amount of Rs.0.25 Cr. be transferred to General
Reserve. With this the company''s reserve and surplus stands at Rs. 197.42
Cr.
BUSINESS OVERVIEW
Technical Textile sector is one of the most innovative branch of the
industry in the world, ranking as one the five high tech sectors with
the greatest potential for development. The success of technical
textiles is primarily due to the creativity, innovation and versatility
in fibres, yarns and woven/knitted/nonwoven fabrics with applications
spanning an enormous range of uses. The ability of technical textiles
to combine with each other and with others to create a new functional
products offer unlimited opportunity togrowth.
The growth of the industry has been primarily due to the
entrepreneurial ingenuity of the Indian industry supplemented by the
scheme of the government of the Indian incentivizing the investment in
the sector. The government of India also recognized the need to have
the industry''s active participation to bring out the issues, concerns
and suggest policy framework that would lay the foundation for this
sector.
The production of different items of technical textile industry has
been slowly but steadily increasing in the country which is
furthercontributing in the growth of the industry as a whole.
Global Scenario:
Technical Textile is the sunrise segment of the global Textile
industry. With increasing competition and diminishing margins in the
production of conventional textiles, textile manufacturers in
industrialized countries have switched over to production of
value-added technical textiles. As the use of technical textiles is
dictated by need, its pricing normally offers good margins. The
Technical Textile industry is estimated to account for over 50% of the
total textile activity in certain industrialized countries.
The US is the largest consumerof technical textiles, followed by
Western Europe and Japan. However, Technical Textile industry in the
developed world is maturing in a significant way resulting in moderate
growth in these economies In contrast China, India and other countries
in Asia, America and Eastern Europe are expected to experience healthy
growth in the near future. Asia is emerging as a powerhouse of both
production as well as consumption of technical textiles. China, Japan,
Korea, Taiwan and India have great potential to make an impact in this
industry in the coming decade.
The Indian Scenario:
India is emerging as a significant player in technical textiles. The
fast-paced economic growth leading to infrastructure creation as well
as higher disposable income has made India a key market for the
technical textile products. Moreover, the country has developed a
foothold in the production of technical textiles owing to its skilled
and technical manpower as well as abundant availability of
raw-material.
Technical Textiles is one of the fastest growing segment of the Indian
economy. It has registered compounded annual rate of growth of 11 %
during 11 th five year plan and the working group report for the 12th
five year plan has projected growth of 20% for technical textiles. This
translates into market size increasing from USD 13 billion to USD 36
billion by 2016-17.
Indian technical textile market is nascent and is quite honestly
depending on government''s push and mandatory regulations to penetrate
into different sectors. The market for technical textiles is expected
to cross Rs.1.5 lakh crore by 2016-17. The strong interest in the segment
is driven by better profit margins and less competition.
INCORPORATION OF SUBSIDIARYCOMPANY
The promoters of NCIL have incorporated a company in the name and style
of Ms Prism Flexible Solutions Private Limited''. By virtue of
controlling the composition of Board of Directors of Prism Flexible
Solutions Private Limited, the said company becomes the subsidiary
Company of Neo Corp International Limited with effect from 18 07.2012.
The Company is engaged in the business of trading and manufacturing of
flexible packaging material and other allied products.
SUBSIDIARYCOMPANY
Information and Documents Pursuant to the provisions of the Section 212
of the Companies Act 1956 relating to Europlast Limited, Sacos Indigo
Private limited, Neoflex Infracon Limited, Poly Logic International
Private Limited, Prism Flexible Solutions Private Limited and Polybase
(H.K.) Limited subsidiary Companies are annexed forming Part of this
Report.
CONSOLIDATION OF ACCOUNTS
The Consolidated Financial Statements presented by the Company include
financial results of its subsidiary companies approved in accordance
with Accounting Standards and as per revised Schedule VI of the
Companies Act, 1956. The Ministry of Corporate Affairs, Government of
India vide its circular No 5/12/2007-CL-lll dated SthFebruary, 2011 has
granted exemption under 212(8) of the Companies Act, 1956 from
attaching Balance Sheet Profit and Loss account and other documents of
the subsidiary companies to the balance sheet of the Company, provided
certain conditions are fulfilled.
Accordingly, the Company will make available the Annual Accounts of the
subsidiary companies and the related detailed information to any member
of the Company who may be interested in obtaining the same. The annual
accounts of the subsidiary companies will also be kept open for
inspection at the Registered Office of the Company and that of the
respective subsidiary companies. The company will furnish a hard copy
of details of accounts of subsidiaries to any shareholder on demand.
GOVERNMENT RECOGNIZED R&D CENTER
NCIL has set its own R & D Centre which is recognized by Department of
Science and Industrial Research under Ministry of Science and
Technology.R & D Centre is equipped with all necessary testing
equipments and competent scientists to conduct R&D activities. R&D
Centre is having a library where all national and international
standards, magazines, newsletters and technical literature necessary
for R & D activities available. R&D envisions in assisting NCIL, to
raise its profile to the zenith of top most manufactures of technical
textile through relentless R&D activities. Mission of R & D center is
to discover new materials, process and technologies to deliver
products, services and solutions to the complete satisfaction of end
users.
UNITINDAHEJSEZLTD.ATDAHEJ
Looking into betterfuture prospects, NCIL made an application to Dahej
SEZ Ltd for allotment of land for setting up of a manufacturing unit in
Dahej SEZ Ltd at Dahej. The land has been allotted to the company and
the Company has entered into an MOU with Vibrant Gujarat 2013''for
investment in Gujarat. This expansion program shall take the company
towards more value added products in the upcoming technical textile
sector.
INSURANCE CLAIM
A fire broke out in TECHTEXTIL, the EOU division of NCIL situated at
Pithampur, on 27th February at midnight, 2010 bringing a loss to plant,
machinery, stock in process and finished stock. The inferno which
caused damaged was insured under various policies taken from United
India Insurance Company Limited and Oriental Insurance Company Limited.
The total claim lodged was to the tune of Rs. 52.05 crores. The company
has received the claim of Rs. 39.43 Crores (including of Rs. 1.30 crores
realized from scrap sale). The Company has also written off R 782.38
Lacs during the year. The balance claim of R488.68 Lacs in respect of
fixed assets not considered by the insurance companies is still
receivable as per management and the matter is pending with appointed
arbitrator.
CORPORATE GOVERNANCE
A detailed report on the status of implementation of the corporate
governance guidelines has been furnished as an annexure to this report.
DIRECTORS''RESPONSIBILITYSTATEMENT
Pursuant to the provisions of Sec 217(2AA) of Companies Act, 1956, the
directors state that:
a. that in preparation of the annual accounts, the applicable
accounting standards have been followed alongwith proper explanations
relating to material departures if any,
b. that the directors have selected such accounting policies and
applied them consistently and made judgements and estimates that are
reasonable and prudent so as to give true and fair view of the state of
affairs of the company at the end of the financial year and of the
profit of the company for that period,
c. that the directors have taken proper and sufficient care of 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. that the directors have prepared the annual accounts on a going
concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, ADAPTATION AND
INNOVATION & FOREIGN EXCHANGE EARNING AND OUTGO
A CONSERVATION OF ENERGY
The rules relating to the disclosure of particulars with respect to the
conservation of energy is not applicable to the company. However the
company continued its conscious efforts to minimize energy consumption
and more and more innovations and improvements were introduced to
further reduce the energy consumption.
B. TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION
RESEARCH AND DEVELOPMENT (R&D):
The Company has set up a separate R&D department with a mandate to take
care of Continuous enhancement in process, efficiency, product range
and protection of intellectual property rights
Filing of patents for several products developed in past years is in
advance stage.
Specific areas in which R & D carried out by the company
The company continued its efforts towards the extension of the
Benefits derived
- Performance improvement
- Development of in-house skills to manufacture high value added
products
- Improving supply chain efficiency
- Cost reduction
- Environment sustainability Future Plan of action
- Development of Geotextile fabrics for various re- enforcement,
filtration and separation applications.
- Piggysackingofotherproductswithproductsofdemand.
- Ensuring perennial business with the network.
- Reduced cost of network management.
- OEE analysis & Productivity improvement of Blown film plant and
knitting machines
- Differentiating ourselves on technical excellence across all
faculties.
Expenditure on R&D: Rs. 402.89 Lacs
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION:
The company also continued to use the latest technologies for improving
the productivity and quality of the products manufactured. The company
is employing indigenous technology for its operations.
FOREIGN EXCHANGE EARNING AND OUTGO
The company has earned foreign exchange of Rs.10084.75 lacs during the
year.
The details of foreign exchange outgo are as follows:
Material import : Rs. 1072.04 lacs
Stores & spares : Rs.5.92 lacs
Capital goods : Rs. 543.65 lacs
Expenditure in foreign currency : Rs. 30.72 lacs
PARTICULARS OF EMPLOYEES
The information required under Sec 217(2A) of the Companies Act 1956 is
not given as there was no employee in receipt of remuneration during
the year, exceeding the limits prescribed by the Companies (Particulars
of Employees) Rules, 1975 as revised.
DEPOSITS
The company has not accepted any deposit from the public attracting the
provisions of Sec 58Aof the Companies Act 1956.
DIRECTORS
Mr. Sanjay K.Trivedi has resigned from the Directorship on 22nd April
2013 and Mr. Utkarsh S. Trivedi was appointed as additional Director
w.e.f. 22nd April 2013.
At the ensuing Annual General Meeting, Mr. Ladharam Patel and Mr.
Shrawan Kumar Patodi, Directors of the Company, retires by rotation and
being eligible offers himself for re- appointment. Mr. Ladharam Patel
and Mr. Shrawan Kumar Patodi are the independent Directors of the
Company having vast experience in industry and administration.
AUDITORS
M/s. A.P. Garg & Co., Chartered Accountants hold office until the
conclusion of the ensuing Annual General Meeting and are eligible for
re-appointment They have furnished a certificate to the effect that
their appointment if made, would be within the prescribed limits under
Sec 224(1 B) of the Companies Act 1956.
AUDITORS''REPORT
Report of the auditors and their observations and notes to the accounts
of the company for the year under review are attached herewith which
are self-explanatory and do not require further explanation.
ACKNOWLEDGEMENT
Your Directors provide their gratitude to the various Government
Agencies, Banks and financial institutions, investors, Company''s
business associates, customers, suppliers and other sen/ice providers
for their continued support.
Your Directors place on record their sincere appreciation of the
contributions made by the employees of the Company and its subsidiaries
at all level through their hard work, dedication and support in
ensuring an excellent all around operational performance.
The Board appreciates and value the contributions made by every member
of the "NCIL" family globally. The Board is also deeply grateful to the
shareholders for the confidence and faith that has been reposed in
them. Driven by values and powered by internal vitality, the entire
"NCIL Group" stands committed to create an even brighterfuture for all
the stakeholders.
Date: 30th May, 2013 For and on behalf of
Place: Indore the Board of Directors
SUNIL K. TRIVEDI
Chairman & Managing Director
Mar 31, 2012
To The Members of M/s Neo Corp International Limited Dear Shareholders
The Directors are delighted to present the 27th Annual Report of your
Company along with the audited accounts for the year ended on 31st
March, 2012.
PERFORMANCE HIGHLIGHTS
The financial results for the year ended on 31st March, 2012 are as
under:
(Rs.In Lacs)
PARTICULARS 2011-12 2010-11
Gross Income 28998.90 23949.70
Profit before Interest, 4426.80 3287.96
Depreciation and Tax
Less :
1) Interest 1855.30 1368.85
2) Depreciation 373.78 252.26
3) Provision for Tax
-Current Tax 82.50 134.19
- Deferred Tax 457.28 114.06
4) Prior Period adjustments (_) (-)
Profitafter Tax 1657.94 1418.61
Appropriation
TransfertoGeneralReserve 25.00 25.00
Proposed dividend and tax on prop. 225.28 82.03
dividend
Earningperequityshare 7.44 12.04
YEAR IN RETROSPECT
During the year under review, your Company has recorded a turnover of Rs.
283.99 Crores as against Rs. 231.07 Crores in the previous year. The Net
profit (after tax and extra ordinary items) for the financial year
ended 31st March, 2012 increased toRs. 16.58 Crores from Rs. 14.19 Crores
in the previous year representing an increase of 16.84% profit
aftertax.
DIVIDEND
Yours Directors are pleased to recommend a dividend of Rs. 0.50/- per
equity share at the rate of 5% for the financial year ended on 31st
March, 2012 on 38022198 fully paid equity shares ofRs. 10/-each.
The Directors recommend that after making provision for taxation and
proposed dividend the amount of Rs. 0.25 Crores be transferred to General
Reserve. With this the company's reserve and surplus stands at Rs. 181.33
Crores.
BUSINESS OVERVIEW
Technical Textiles offers a huge opportunity in India for both local
consumption as well for exports. Based on current usage patterns the
Domestic Consumption market alone is expected to exceed US $ 13 billion
by 2012/13.
To facilitate the growth of this industry in India- the office Of
TEXTILE COMMISIONER MINISTRY OF TEXTILES, Government of India
-recognized the need to have the industry's active participation to
bring out the issues, concerns and suggest policy framework that would
lay the foundation for this sector.
Given the fact that Government policy have played a critical role in
the advancement of Technical textiles INDIAN TECHNICAL TEXTILE
ASSOCIATION is expected to maintain close interaction with Government
of India in formulating a National Technical Textiles Policy focusing
on removing the ambiguities in the system which are hampering the
growth of the sector, helping bring in legislation which will help spur
usage in India and recommending fiscal and non fiscal norms which would
aid the industry to achieve its true potential.
Global Scenario:
The global market for technical textiles was estimated to have a volume
of 16.7 mn ton with a value of US$ 92.88 billions in the year 2008 and
is expected to grow to a volume of 27.77 mn ton with a value of US$ 140
billion by the year 2012. In developed nations technical textiles holds
a share of more than 40% of the total textile manufacturing activity.
While the US and EU continues to be the main manufacturers and
consumers of functional textiles, China has emerged as a large
manufacturer of the same. India and Russia are the other important
markets for technical textiles, where consumption is increasing at a
fast pace.
The Indian Scenario:
In the present scenario, technical textiles have been identified as a
great potential area for upgrading the Indian textile industry. Since
the conventional textiles industry has reached a level of saturation in
terms of development, innovation and value-addition, technical textiles
offer a great opportunity to succeed in the post WTO scenario.
As per Mr. A. B. Joshi, Textile Commissioner, Ministry of Textiles, the
technical textiles industry is forecast to grow at Rs. 1,58,000 crore by
2016-17, with a projected growth of 20 per cent, the technical textiles
industry in India namely, Medical (Medtech), Geo-Textiles (Geotech),
Protective Textiles (Protech) & Agricultural Textiles (Agrotech).
Secondly as the country is transforming into a developed nation, huge
emphasis is being laid down in adopting
latest technologies and procedures in various fields. Therefore the
market for technical textiles is very positive and poised for a
stupendous growth. Attractive statistics for market potential seem
inviting for global intervention.
Considering that India has a large pool of skilled and
scientific/technical manpower, it can play a major role in shaping the
future of this industry. Development of new fibers and technologies has
led to the creation of new applications of technical textiles, which is
bound to enlarge the market size and offer opportunities for high
growth.
The growth of technical textiles will also lead to steep rise in the
demand for highly skilled manpower for both production & R&D. This
should throw open a new area that has tremendous opportunities of
employment, which is a major focus of the national government today.
Since the growth of technical textiles industry serves the interests of
the government and the nation, hence it is inevitable to see a major
thrust on the development of this industry by giving impetus on product
and local consumption. This offers a compelling reason for the buyers
and sellers of technical textiles to keep theirfocus on India and
develop a rational strategy to seize the emerging opportunities.
(Source-Economic Times)
INCORPORATION OF SUBSIDIARY COMPANY
The promoters of NCIL had incorporated a company in the name and style
of 'M/s Poly Logic International Private Limited'. The company falls
under Part IX by virtue of which PLIPL became a 'wholly owned
subsidiary of Neo Corp International Limited'. The company will be
engaged in manufacturing of Technical Textiles under the Agrotech
segment. This projects falls underthe Technical Textiles segment of the
TUFS scheme, and is financed by EXIM Bank Limited, Mumbai.
SUBSIDIARY COMPANY
Information and Documents Pursuant to the provisions of the Section 212
of the Companies Act 1956 relating to Europlast Limited, Sacos Indigo
Private limited, Neoflex Infracon Limited, Poly Logic International (P)
Limited and Polybase (H.K.) Limited subsidiary Companies are annexed
forming Part of this Report.
CONSOLIDATION OF ACCOUNTS
The Consolidated Financial Statements presented by the Company include
financial results of its subsidiary companies approved in accordance
with Accounting Standards and as per revised Schedule VI of the
CompaniesAct, 1956. The MinistryofCorporate Affairs, Government of
India vide its circular No. 5/12/2007-CL-lll dated 8th February, 2011
has granted exemption under 212(8) of the Companies Act, 1956 from
attaching Balance Sheet, Profit and Loss account and other documents of
the subsidiary companies to the balance sheet of the Company, provided
certain conditions are fulfilled.
Accordingly, the Company will make available the Annual Accounts of the
subsidiary companies and the related detailed information to any member
of the Company who may be interested in obtaining the same. The annual
accounts of the subsidiary companies will also be kept open for
inspection at the Registered Office of the Company and that of the
respective subsidiary companies. The company will furnish a hard copy
of details of accounts of subsidiaries to any shareholder on demand.
COMPANY'S GDR ISSUE
A blanket approval in shareholder's meeting held on 11.04.2011 has been
taken for the issue of US $100 million GDR. In first tranche Company
issued and allotted in its Board meeting held on 5th August,
2011,24,000,000 equity shares of Rs. 10 each representing 1,200,000
Global Depositary Receipts (GDRs). Each GDR is representing 20
underlying Equity Shares. The Company has utilized the proceeds from
the issue of the GDRs towards expansion of the present business
activities of the Company and the group and augmenting the long term
working capital.
GOVERNMENT RECOGNIZED R&D CENTER
NCIL has set its own R&D Centre which is recognized by Department of
Science and Industrial Research under Ministry of Science and
Technology. R&D Centre is equipped with all necessary testing
equipments and competent scientists to conduct R&D activities. R&D
Centre is having a library where all national and international
standards, magazines, newsletters and technical literature necessary
for R & D activities available. R&D envisions in assisting NCIL, to
raise its profile to the zenith of top most manufactures of technical
textile through relentless R&D activities. Mission of R & D center is
to discover new materials, process and technologies to deliver
products, services and solutions to the complete satisfaction of end
users.
INSURANCE CLAIM
A fire broke out in TECHTEXTIL, the EOU division of NCIL situated at
Pithampur, on 27th February at midnight, 2010 bringing a loss to plant,
machinery, stock in process and finished stock. The inferno which
caused damaged was insured under various policies taken from United
India Insurance Company Limited and Oriental Insurance Company Limited.
The total claim launched was to the tune of INR 52.05 crores. The
company has received the interim claim of INR 7.50 Crores each, from
both the insurance companies. The final survey report has been received
and the final claim amount as assessed by the surveyors stands to INR
39.43 crore, including the scrap sale. The process for final payment of
the balance amount of claim is at an advance stage and is expected to
be received by end of September2012.
WINDMILL PROJECT
NCIL has ventured into the business stream of power generation with the
help of Wind Turbine Generators (WTGs). The company has setup a
windmill of the capacity 1.5 mega watt at Bhavdikheda Mahuriya, Dist.
Shajapur in Madhya Pradesh.
The motive behind this venture is to gain advantage of the attractive
ROI generated on the sale of wind mill power (electricity) to the state
electricity board. The company is now looking at increasing installed
capacities with more windmills, also to contribute the bit towards a
'greener planet', and in the infrastructural growth of the country.
LISTING
The shares ofthe Company continue to be listed on the Bombay Stock
Exchange Limited (BSE) and Madhya Pradesh Stock Exchange Limited
(MPSE). The annual listing fee for the year 2012-2013 has been paid to
the Exchange(s).
Pursuant to MoU of Madhya Pradesh Stock Exchange Limited with National
Stock Exchange Limited under Section 13 of SCRA, securities of Neo Corp
International Ltd are eligible to trade and admitted to dealings on
National Stock Exchange of India Ltd. (Capital Market Segment) under
permitted category with effect from 2nd March, 2012 vide
theirCirculardated 29thFebruary, 2012.
CORPORATE GOVERNANCE
A detailed report on the status of implementation of the corporate
governance guidelines has been furnished as an annexure to this report.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the provisions of Sec 217(2AA) of Companies Act, 1956, the
directors state that:
a. that in preparation of the annual accounts, the applicable
accounting standards have been followed alongwith proper explanations
relating to material departures if any,
b. that the directors have selected such accounting policies and
applied them consistently and made judgements and estimates that are
reasonable and prudent so as to give true and fair view of the state of
affairs ofthe company at the end ofthe financial year and ofthe profit
of the company for that period
c. that the directors have taken proper and sufficient care of 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. that the directors have prepared the annual accounts on a going
concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, ADAPTATION AND
INNOVATION & FOREIGN EXCHANGE EARNING AND OUTGO
A. CONSERVATION OF ENERGY
The rules relating to the disclosure of particulars with respect to the
conservation of energy is not applicable to the company. However the
company continued its conscious efforts to minimize energy consumption
and more and more innovations and improvements were introduced to
further reduce the energy consumption.
B. TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION
RESEARCH AND DEVELOPMENT (R&D):
The Company has set up a separate R&D department with a mandate to take
care of Continuous enhancement in process, efficiency, product range
and protection of intellectual property rights
Filing of patents for several products developed in past years is in
advance stage.
Specific areas in which R&D carried out by the company
The company continued its efforts towards the extension of the product
range, lowering costs, process improvements & upgradation, installation
of energy efficient equipments.
Benefits derived
- Performance improvement
- Development of in-house skills to manufacture high value added
products
- Improving supply chain efficiency
- Cost reduction
- Environmentsustainability Future Plan of action
- Development of Geotextile fabrics for various re- enforcement,
filtration and separation applications.
- Piggy backing of other products with products of demand.
- Ensuring perennial business with the network.
- Reduced cost of network management.
- OEE analysis & Productivity improvement of Blown film plantand
knitting machines
- Differentiating ourselves on technical excellence across all
faculties.
Expenditure on R&D: Rs. 567.19 Lacs
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION:
The company also continued to use the latest technologies for improving
the productivity and quality of the products manufactured. The company
is employing indigenous technology for its operations.
FOREIGN EXCHANGE EARNING AND OUTGO
The company has earned foreign exchange ofRs. 9137.10 lacs during the
year.
The details of foreign exchange outgo are as follows: Material import :
Rs. 165.20 lacs
Stores & spares : Rs. 5.46 lacs
Capital goods : Rs. 1645.96 lacs
Expenditure in foreign currency : Rs. 102.04 lacs PARTICULARS OF
EMPLOYEES
The information required under Sec 217(2A) of the Companies Act 1956 is
not given as there was no employee in receipt of remuneration during
the year, exceeding the limits prescribed by the Companies (Particulars
of Employees) Rules, 1975as revised.
DEPOSITS
The company has not accepted any deposit from the public attracting the
provisions of Sec 58A of the Companies Act 1956.
DIRECTORS
Mr. Sanjay Trivedi and Mr. Rolland Coderre retire by rotation and being
eligible offer themselves for reappointment.
AUDITORS
M/s. A.P. Garg & Co., Chartered Accountants hold office until the
conclusion of the ensuing Annual General Meeting and are eligible for
re-appointment. They have furnished a certificate to the effect that
their appointment if made, would be within the prescribed limits under
Sec 224(1B)ofthe Companies Act 1956.
AUDITORS'REPORT
Report of the auditors and their observations and notes to the accounts
of the company for the year under review are attached herewith which
are self-explanatory and do not require further explanation.
ACKNOWLEDGEMENT
Your Directors provide their gratitude to the various Government
Agencies, Banks and financial institutions, investors, Company's
business associates, customers, suppliers and other service providers
for their continued support.
Your Directors place on record their sincere appreciation of the
contributions made by the employees of the Company and its subsidiaries
at all level through their hard work, dedication and support in
ensuring an excellent all around operational performance.
The Board appreciate and value the contributions made by every member
of the "NCIL" family globally. The Board is also deeply grateful to
the shareholders for the confidence and faith that has been reposed in
them. Driven by values and powered by internal vitality, the entire
"NCIL Group" stands committed to create an even brighterfuture for
all the stakeholders.
Date: 30th May, 2012 For and on behalf of
Place: Indore the Board of Directors
(K.S.TRIVEDI)
Chairman
Mar 31, 2011
To The Members of M/s Neo Corp international Limited
The Directors are delighted to present the 26th Annual Report of your
Company along with the audited accounts for the year ended on 31 -
March 2011.
PERFORMANCE HIGHLIGHTS
The financial results for the year ended on 31.03.2011 are as under:
(Rs. In Lacs)
Particulars 2010-11 2009-10
Gross Income 25322.23 17016.55
Profit before Interest, Depreciation and 3286.14 2083.47
Tax
Less:
1) Interest 1368.85 641.30
2) Depreciation 252.26 263.72
3) Provision for Tax
-Current Tax 134.19 228.32
-Deferred Tax 114 06 26.90
4) Prior Period adjustments (1.82) (1.47)
Profit after Tax 1418.60 921.75
Add balance brought forward 2720.17 1874.04
4138.77 2795.79
APPROPRIATION
Transfer to General Reserve 25.00 25.00
Proposed dividend and tax on prop. 82.03 50.62
dividend
Balance carried to Balance Sheet 4031.74 2720.17
4138.77 2795.79
FINANCIAL PERFORMANCE
During the year under review, your Company has recorded a turnover of
Rs22859.35 Lacs as against Rs 17562.27 Lacs in the previous year. The
Net profit (after tax and extra ordinary items) for the financial year
ended 31st March 2011 increased to Rs1418.61 Lacs from Rs921.75 Lacs in
the previous year representing an increase of 53.80% profit after tax.
DIVIDEND
Yours directors are pleased to recommend a dividend of Rs0.50/- per
equity share at the rate of 5% for the financial year ended on 31st
March 2011 on 14022198 fully paid equity shares of Rs10/-each.
The directors recommend that after making provision for taxation and
proposed dividend the amount of Rs25.00 Lacs be transferred to General
Reserve. With this the company's reserve and surplus stands at
Rs8005.42 Lacs.
BUSINESS OVERVIEW
Indian economy has been witnessing a phenomenal growth since the last
decade. The Indian economy, characterized by strong macro-economic
fundamental the midst of the current global financial crisis.
The technical textiles industry has immense potential in the developing
countries. India is now emerging as a powerhouse of both production as
well as end-use consumption of technical textiles. The demand for
technical textiles will be boosted by the changing economic scenario.
Considering its highly skilled and scientific/technical manpower and
abundant availability of raw materials, India can emerge as a key
player in the technical textiles industry.
Further, Indian Textile Industry contributes about 14% of the total
industrial production of India. Furthermore, its contribution to the
gross domestic product of India is around 3% and the numbers are
steadily increasing.
India Textile Industry involves around 35 million workers directly and
Accounts for 21% of the total employment generated in the economy, the
second largest provider of employment after agriculture. Thus,
Technical textiles holds significant potential in India and the
government has already taken steps to promote this industry.
INCREASE IN THE SHARE CAPITAL
The Company has increased its Authorised Share Capital from
Rs18,00,00,000 (Eighteen crores) to Rs70,00,00,000 (Seventy crores)
divided into 69000000 equity shares of Rs10/- each and 1000000
Cumulative Compulsorily Convertible Preference Shares (CCCPs) of Rs10/-
each in the Extra- ordinary General Meeting held on 11th April 2011.
ACQUISITION
The Company has acquired shares of M/s Neoflex Infracon Ltd. on 28th
May, 2011, which became the Subsidiary of the Company by virtue of
acquisition of shares. Neoflex Infracon Ltd. is engaged in the
infrastructure development business. NCIL has acquired UK based company
Polybase (H.K.) Limited on 18th July, 2011 by virtue of 100% holding of
shares.
SUBSIDIARY COMPANY:
Information and Documents Pursuant to the provisions of the Section 212
of the Companies Act 1956 relating to Europlast Limited and Sacos
Indigo Private limited, subsidiary Companies are annexed forming Part
of this Report.
CONSOLIDATION OF ACCOUNTS
The Consolidated Financial Statements presented by the Company include
financial results of its subsidiary companies approved in accordance
with Accounting Standards. The Ministry of Corporate Affairs,
Government of India vide its circular No. 5/12/2007-CL-lll dated 8lh
February, 2011 has granted exemption under 212(8) of the Companies Act,
1956 from attaching Balance Sheet, Profit and Loss account and other
documents of the subsidiary companies to the balance sheet of the
Company, provided certain conditions are fulfilled.
Accordingly, the Company will make available the Annual Accounts of the
subsidiary companies and the related detailed information to any member
of the Company who may be interested in obtaining the same. The annual
accounts of the subsidiary companies will also be kept open for
inspection at the Registered Office of the Company and that of the
respective subsidiary companies. The company will furnish a hard copy
of details of accounts of subsidiaries to any shareholder on demand.
COMPANY'S GDR ISSUE
NCIL had issued GDRs to over seas investors.
A blanket approval in shareholders' meeting held on 11.04.2011 has been
taken for the issue of US $100 million GDR.
In first tranche it is proposed to issue US $25 million GDR. In the
Board meeting held on 5lh August, 2011 24,000,000 equity shares of Rs
10 each representing 1,200 000 Global Depositary Receipts (GDRs) for US
$ 23.1 million were subscribed and allotted. Each GDR is representing
20 underlying Equity Shares.
The Company intends to use all or substantially all of the proceeds
from the issue of the GDRs towards expansion of the present business
activities of the Company augmenting long term working capital and any
other use, as may be permitted under applicable law or regulations,
from time to time. Pending the use of the net proceeds from the
offering for the purposes described above, the Company intends to place
the net proceeds, to the extent permitted by applicable laws or
regulations, in short term money market instruments and mutual funds.
CHANGE IN CAPITAL STRUCTURE PURSUANT TO PREFERENTIAL ISSUE
The Company made a preferential allotment of 35,00,000 equity shares of
Rs10/- each at a premium of Rs50/- per share to the promoter and other
strategic investors. The Company has also allotted 2,92,898 equity
shares of Rs10/- each at a premium of Rs58/- per share on conversion of
292898 Cumulative Compulsory Convertible Preference Shares ('CCCPs') to
the persons excluding promoters of the Company and 15,75,000 equity
shares of Rs10/-each at a premium of Rs43/- per share pursuant to
conversion of warrants to promoters and person other than promoters.
The proceeds of the preferential allotment have been used to fund the
ongoing expansion and modernization program of the Company and the
working capital requirements of the Company.
CORPORATE GOVERNANCE
A detailed report on the status of implementation of the corporate
governance guidelines has been furnished as an annexure to this report.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the provisions of Sec 217 (2AA) of Companies Act, 1956, the
directors state that:
a. that in preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanations
relating to material departures if any,
b. that the directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give true and Fairview of the state of
affairs of the company at the end of the financial year and of the
profit of the company for that period.
c. that the directors have taken proper and sufficient care of the
maintenance of adequate accounting records in accordance with the
provisions of this act for safe guarding the assets of the company and
for preventing and detecting fraud and other irregularities.
d. that the directors have prepared the annual accounts on a going
concern basis.
PARTICULARS OF EMPLOYEES
The information required under Sec217(2A)oftheCompaniesAct1956 is Not
given as there was no employee in receipt of remuneration during the
year, exceeding the limits prescribed by the Companies (Particulars of
Employees) Rules, 1975 as revised.
DEPOSITS
The company has not accepted any deposit from the public attracting the
provisions of Sec 58 A of the Companies Act 1956.
DIRECTORS
Mr.Kailash Chandra Trivedi and Mr.SunilKumar
AUDITORS
M/s. A.P. Garg & Co., Chartered Accountants hold office until the
conclusion of the ensuing Annual General Meeting and are eligible for
re- appointment. They have furnished a certificate to the effect that
their appointment if made, would be within the prescribed limits under
Sec 224( 1B) of theCompaniesAct,1956.
AUDITORS'REPORT
Report of the auditors and their observations and notes to the accounts
of the company for the year under review are attached herewith which
are self- explanatory and do not require further explanation.
ACKNOWLEDGEMENT
Your Directors provide their gratitude to the various Government
Agencies, Banks and Financial Institutions, Investors, Company's
Business Associates, Customers, Suppliers and other service providers
For their continued support.
Your Directors place on record their since re appreciation of the
contributions made by the employees of the Company and its subsidiaries
through their hard work, dedication and support in ensuring an
excellent all around operational performance.
Your Directors expresses its appreciation of the understanding and
support extended by the shareholders of the Company for the confidence
reposed on the management of the Company.
By Order of the Board of Directors
Place: Indore K.S.TRIVEDI
Date: 02.09.2011 (CHAIRMAN)
Regd. Office: Plot No. 62-63-64A, Industrial Area, Sector 1,
Pithampur, Dist. Dhar(M.P.)
Mar 31, 2010
We have pleasure in presenting to you the 25th Annual Report along with
the audited accounts for the year ended on March 2010.
PERFORMANCE HIGHLIGHTS
Financial Results
The financial results for the year ended on 31.3.2010 are as under:
(RS. IN LACS)
2009-10 2008-09
Gross Income 17016.55 13404.90
Profit before Interest Depreciation
and Tax 2083.47 1478.45
Less :
1) Interest 641.30 295.53
2) Depreciation 263.72 205.45
3) Provision for Tax
- Current Tax 228.32 229.29
- Fringe Benefit Tax - 5.38
-Deferred Tax 26.90 102.80
4) Prior Period adjustments (1.47) 0.51
Profit after Tax 921.76 639.49
Add : Balance brought forward 1874.04 1310.18
2795.80 1949.67
APPROPRIATION
Transfer to General Reserve 25.00 25.00
Proposed dividend and tax on prop.dividend 50.63 50.63
Balance carried to Balance Sheet 2720.17 1874.04
2795.80 1949.67
During the year under review, your Company has recorded a turnover of
Rs. 175.62 Crores as against Rs. 127.82 Crores in the previous year.
The Net profit (after tax and extra ordinary items) for the financial
year ended 31st March 2010 increased to Rs. 9.22 Crores from Rs. 6.39
Crores in the previous year representing an increase of 44.28%profit
aftertax..
DIVIDEND
Yours directors are pleased to recommend a dividend at the rate of 5%
for the year ended on 31st March 2010 on 86,54,300 fully paid equity
shares of Rs. 10/- each.
The directors recommend that after making provision for taxation and
proposed dividend the amount of Rs. 0.25 cr be transferred to General
Reserve. With this the companys reserve and surplus stands at Rs.
42.62 cr.
BUSINESS OVERVIEW
According to a study of ICRAon Management Consulting Services, the
consumption of technical textiles will enhance by 11 % a year on
average to 624 billion Indian Rupees on a value basis during the next
three years. During the fiscal year 2007/08 the turnover for technical
textile amounted to just Rs. 370 billion.
Technical textiles are mainly used for packaging, apparel, home
textiles and automotive manufacturing. The sectors sports equipments,
industrial end-use, construction material as well as medical and
sanitary consumables are also promising a large potential growth. The
study forecasts a consumption-rate between 8 and 15% per year on a
value basis depending on the application area.
Year 2009-10 was a good year as the slow down in economy had bottomed
out and signs of recovery were seen.
It was only in December 09-January 2010 the heat of slow down was felt
due to the coupled effect of slow economy and extended severwinters in
Europe lenone.
Technical Textile Industry is poised for good growth in India. In fact
the GDP growth of a country is directly proportional to the growth in
Consumption of technical textile.
The Company is committed to take advantage of these growth
opportunities and therefore has planned a systematic continuous
investment strategy.
ACQUISITION
Acquisition of M/s Sacos Indigo Pvt. Ltd.
During the year 2009-10, the Company acquired shares of M/s. Sacos
Indigo Pvt. Ltd., engaged in the same line of business, which become
the Subsidiary of the Company by virtue of acquisition of shares on
31sl December 2010.
The acquisition shall add thin gauge fabric and laminated consumer
packaging products, to the wide product basket of the Company.
SUBSIDIARY COMPANY:
Information and Documents Pursuant to the provisions of the Section 212
of the Companies Act 1956 relating to Europlast Limited and Sacos
Indigo Private limited, Subsidiary Companies are annexed forming Part
of this Report.
CONSOLIDATION OF ACCOUNTS
In accordance with the requirement of Accounting Standards prescribed
by the Institute of the Chartered Accountants of India, the
consolidated account of your Company is annexed to this report.
FIRE AT FACTORY
On midnight of 27/28 February, 2010, the Companys new division M/s
Techtextile was entirely gutted in fire. Incidentally there was no
loss of human life. The Board extends its tribute to the exceptional
services and help rendered by the fire, police and local administration
and staff. With their support the Company was able to contain the
damage only upto the new division. The old division is safe and
running.
Due to the commendable team work of our staff the Company was able to
restart the assembly section (packtech) within Eight weeks in as leased
premises. Orders in hand were executed from contract manufacturing
though with a slight delay. The Board also wish to place on record the
support and faith extended by the customers.
The lost assets were covered adequately by-two leading Insurance
Companies. The Company has lodged the claim of Rs. 52.05 Crores. The
survey is at the advance stage and an interim relief of Rs. 7.5 Crores
is received from one of the Insurance companies and the company is
expecting to receive Rs. 7.5 Crores from the other insurance company.
The Board also wishes to place on record the timely help and support
extended by the Bankers.
The rebuilding of lost assets is in advance stage.
CORPORATE GOVERNANCE
A detailed report on the status of implementation of the corporate
governance guidelines has been furnished as an annexure to this report.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the provisions of Sec 217(2AA) of Companies Act, 1956, the
directors state that:
- that in preparation of the annual accounts, the applicable
accounting standards have been followed alongwith proper explanations
relating to material departures if any,
- that the directors have selected such accounting policies and
applied them consistently and made judgements and estimates that are
reasonable and prudent so as to give true and fair view of the state of
affairs of the company at the end of the financial year and of the
profit of the company for that period
- that the directors have taken proper and sufficient care of 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
- that the directors have prepared the annual accounts on a going
concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, ADAPTATION AND
INNOVATION & FOREIGN EXCHANGE EARNING AND OUTGO
A. CONSERVATION OF ENERGY
The rules relating to the disclosure of particulars with respect to the
conservation of energy is not applicable to the company. However the
company continued its conscious efforts to minimize energy consumption
and more and more innovations and improvements were introduced to
further reduce the energy consumption.
B. TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION RESEARCH AND
DEVELOPMENT (R&D):
The Company has set up a separate R&D department with a mandate to take
care of Continuous enhancement in
- efficiency
- product range
- protection of intellectual property rights
Due to sustained efforts of R&D department the Company was able to
develop new design of vermibed and much films.
Filing of patents for several products developed in past years is in
advance stage.
Specific areas in which R&D carried out by the company
The company continued its efforts towards the extension of the product
range, lowering costs, process improvements &upgradation, installation
of energy efficient equipments.
Benefits derived
- Quality improvement
- Development of in-house skills to manufacture high value added
products
- Higher customer satisfaction
- Cost reduction
- Product range extension to reach newer markets
Future Plan of action
- To upgrade the existing technology
- To achieve higher customer satisfaction
- To reduce energy consumption
- To file patents for product already developed. Expenditure on R&D:
Rs.4.26Lacs
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION:
The company also continued to use the latest technologies for improving
the productivity and quality of the products manufactured. The company
is employing indigenous technology for its operations.
FOREIGN EXCHANGE EARNING AND OUTGO
The company has earned foreign exchange of Rs. 4996.79 Lacs during the
year. The details of foreign exchange outgo are as follows:
Material import : Rs.512.32 lacs
Stores & spares : Rs. 4.66 lacs
Capital goods : Rs. 695.06 lacs
Expenditure in foreign currency : Rs. 3.53 lacs
PARTICULARS OF EMPLOYEES
The information required under Sec 217(2A) of the Companies Act 1956 is
not given as there was no employee in receipt of remuneration during
the year, exceeding the limits prescribed by the Companies (Particulars
of Employees) Rules, 1975 as revised.
DEPOSITS
The company has not accepted any deposit from the public attracting the
provisions of Sec 58Aof the Companies Act 1956.
DIRECTORS
Shri Shrawan Kumar Patodi and Shri Dashrath Bhai Trivedi retire by
rotation and being eligible offer themselves for reappointment.
AUDITORS
M/s. A.P. Garg & Co., Chartered Accountants hold office until the
conclusion of the ensuing Annual General Meeting and are eligible for
re-appointment. They have furnished a certificate to the effect that
their appointment if made, would be within the prescribed limits under
Sec 224(1 B) of the Companies Act 1956.
AUDITORS REPORT
Report of the auditors and their observations and notes to the accounts
of the company for the year under review are attached herewith which
are self-explanatory and do not require further explanation.
ACKNOWLEDGEMENT
Your Directors provide their gratitude to the various Government
Agencies, Banks and financial institutions, investors, Companys
business associates, customers, suppliers and other service providers
for their continued support.
Your Directors place on record their sincere appreciation of the
contributions made by the employees of the Company and its subsidiaries
at all level through their hard work, dedication and support in
ensuring an excellent all around operational performance.
Your Directors expresses its appreciation of the understanding and
support extended by the shareholders of the Company for the confidence
reposed on the management of the Company.
Date: 15th October 2010 Forand on behalfofthe Board of Directors
Place: Indore (K.S.TRIVEDI)
CHAIRMAN
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