We have pleasure in presenting the 45th Annual Report and Audited
Statements of Accounts of the Company for the year ended 31st March,
2011. The overall performance of the current year was satisfactory
inspite of high raw material and fuel oil prices and lower sales of
Nylon Tyre Cord Fabric (NTCF). The lower off-take of NTCF by the tyre
companies was mainly due to labour unrest at their factories and high
level of imports of bus & truck tyres in the third quarter of the
financial year that forced tyre companies to cut their production.
FINANCIAL RESULTS
Rs. / Lacs
This Year Previous Year
Sales / Income from Operations
(Less Excise Duty) 134433 123087
Profit before Depreciation,
Interest, Exceptional Items
and Tax 17792
22437
Add / (Less):
Depreciation (6115) (6106)
Interest (Net) (1058) (741)
Taxation (Net) (2683) (5238)
Voluntary Retirement
compensation - (336)
Net Profit 7936 10016
Add: Balance brought forward from
previous year 18616 11629
Profit available for appropriation 26552 21645
Less :Dividend 1420 1311
Tax on Dividend 231 218
General Reserve 1500 1500
Balance carried forward to
next year 23401 18616
DIVIDEND
We recommend a dividend at the rate of 65% (i.e. Rs. 6.50 per Equity
Share of Rs.10/- each) for the year ended 31st March, 2011 (Previous
year 60% i.e. Rs.6/- per Equity Share of Rs.10/- each).
COURSE OF BUSINESS AND OUTLOOK
As required under Corporate Governance, the Managements Discussion and
Analysis Report which is forming a part of this report, is a refection
of the current state of business. It also
deals with the opportunities and challenges faced by your Company and
the outlook for the future.
Your Company would like to add that in view of high crude oil prices in
the international market, the prices of raw material and fuel oil are
likely to remain firm in the current financial year and may cause
pressure on profit margins. However, with the recently completed
capital expenditure of about Rs. 200 crores, your Company is hopeful of
improved performance in the current financial year.
With growing Indian economy and good demand growth in end- used
products i.e. synthetic textile and automobile tyres, the long-term
outlook remains positive.
EXPANSION & MODERNISATION
The trial runs in connection with capacity expansion of Nylon Tyre Cord
Fabric (NTCF) by 7500 tons per annum have been completed and process
conditions are being stabilised for regular commercial production as
per the requirements of tyre companies. It is expected to achieve full
capacity utilization within 3 months. 13 MW gas based power plant has
been successfully commissioned at Pune site. There is some delay in
installation of 4 MW LNG gas based power plant at Bharuch. The same is
now expected to be commissioned by the third quarter of current
financial year.
Most of the modernisation and de-bottlenecking projects undertaken by
the Company have been completed. The installation of new Nylon
Polymerisation capacity is on hold and will be reviewed in due course.
HUMAN RESOURCE DEVELOPMENT AND ENVIRONMENT
The report on Managements Discussion and Analysis includes its
observations on human relations, approach to human resource
development, safety, health and environment.
The Company provides a fair and equitable work environment to all its
employees, and with support from their seniors, is fully engaged in
developing their skills. The Company is continuously working to create
and nurture an atmosphere which is highly motivated, result-oriented
and adaptable to changing business environment.
The Directors place on record their appreciation for workmen, staff and
management in bringing improvement at all levels in factories and
offices of the Company and effective response to changing environment.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
Particulars in respect of conservation of energy, technology absorption
and foreign exchange earnings and outgo, as required by the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 are set out in a separate statement attached hereto and forming
part of the report.
CORPORATE GOVERNANCE
Your Company reaffirm its commitment to Corporate Governance and is
fully compliant with the conditions of Corporate Governance stipulated
in clause 49 of the Listing Agreement with the Stock Exchanges. A
separate section on compliance with the conditions of Corporate
Governance and a Certifcate from the firm of practising Company
Secretaries dated 2nd May, 2011 in this regard is annexed hereto and
forms a part of the Report.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirements of Section 217(2AA) of the Companies Act,
1956 and on the basis of explanation and compliance certificate given
by the executives of the Company, and subject to disclosures in the
Annual Accounts and also on the basis of discussions with the Statutory
Auditors of the Company from time to time, we state as under:
i) that in the preparation of the annual accounts, the applicable
accounting standards had been followed;
ii) that the directors had selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit of the Company for that period;
iii) that the directors had taken proper and sufficient care 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; and
iv) that the directors had prepared the annual accounts on a going
concern basis.
DIRECTORS
In accordance with Articles of Association of the Company, Mr.R. A.
Shah and Mr.B. S. Mehta, Directors of the Company will retire by
rotation and being eligible, offer themselves for re-appointment.
AUDITORS
Messrs. Price Waterhouse, the Auditors of the Company will retire from
the office of the Auditors and being eligible offer themselves for
re-appointment. Their remuneration for the current year is to be fixed
by you.
COST AUDITORS
The Cost Accounts records maintained by your Company for the products -
Polyester and Nylon are subject to yearly audit by qualified Cost
Auditors. Your Company has appointed M/s. N.I. Mehta & Co., a firm of
Cost Auditors for conducting the audit of such records for the
financial year 2010-11.
PARTICULARS OF EMPLOYEES
Pursuant to the provisions of Section 217 (2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules, 1975 as
amended, the names and other particulars of employees are set out in
the Annexure to the Directors Report. However, as per the provisions
of Section 219(1)(b)(iv) of the said Act, the Annual Report excluding
the aforesaid information is being sent to all members of the Company.
Any member, who is interested in obtaining such particulars about
employees may write to the Company Secretary at Registered Office of
the Company.
For and on behalf of the Board of Directors
B. K. BIRLA
G. M. SINGHVI
(Directors)
Place : Mumbai
Date : May 02, 2011
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