The Directors are pleased to present their Thirtieth Annual Report and 
 Audited Accounts for the year ended 31st March 2012.
 
 1.  FINANCIAL RESULTS                               Rs.''000
 
                                               31.03.2012    31.03.2011
 
 Net Sales                                        597,170       660,615
 
 Other Income                                       1,640         1,578
 
 Sales and Other Income                           598,810       662,193
 
 Operating Profit                                  39,304        56,368 
 (before Depreciation)
 
 Less: Depreciation                                13,560        11,456
 
 Profit before Tax                                 25,744        44,911
 
 Less: Provision for Tax
 
 Current Tax                                        8,940        14,025
 
 Deferred Tax Credit                               (1,312)          306
 
 Profit after Tax                                  18,116        30,580 
 
 Short Provision of Tax for Prior Years              (179)          (22)
 
 Net Profit after Prior                            17,937        30,558 
 period items
 
 Add : Balance Brought Forward                     50,845        33,232
 
 Profit available for Appropriation                68,782        63,790 
 
 APPROPRIATION :
 
 Transfer to General Reserve                        1,500         3,500
 
 Dividend on Equity Shares                          3,600         8,100
 
 Corporate Dividend Tax                               584         1,345
 
 Balance Carried Forward                           68,782        50,845
 
                                                   68,782        63,790
 
 2.  OPERATING RESULTS
 
 During the year under review, net sales decreased by 9.6% to Rs. 5972
 lacs, from Rs. 6606 lacs in the previous year. Operating profit before
 depreciation decreased by 30.27% to Rs. 393 lacs from Rs.564 lacs in
 previous year. The resulting net profit after tax (with prior period
 adjustments), decreased by 41.31% to Rs. 179 lacs from Rs. 306 lacs in
 previous year.
 
 3.  DIVIDEND
 
 The Board of Directors recommend a dividend of Rs.  1.20 per equity
 share (12%) for the year 2011-12.  (Previous year - 27 %) for approval
 at the Annual General Meeting. The dividend if approved will result in
 a cash outflow of Rs. 41.84 lacs including dividend tax compared to Rs.
 94.45 lacs in previous year.
 
 4.  TRANSFER TO RESERVES
 
 The Company proposes to transfer Rs. 15.00 lacs to the General Reserve
 out of the amount available for appropriations and an amount of Rs.
 137.53 lacs is proposed to be retained in the statement of Profit and
 Loss.
 
 5.  FIXED DEPOSIT
 
 The Company continued accepting Fixed Deposits from the public during
 the year under review. The Company received Rs. 49,83,000/- under the
 Fixed Deposit scheme. At the close of the year there were no Fixed
 Deposits due for payment which remained either unclaimed or unpaid,
 except 14 deposits amounting to Rs. 4,95,000/- which have matured but
 have not been claimed. Of these, 10 Deposits, amounting to Rs.
 3,35,000/- have been renewed or repaid up to the date of this Report.
 
 The Company has complied with the requirements of the Companies
 (Acceptance of Deposits) Rules, 1975.
 
 6.  OPERATIONS
 
 During the year under review the traditional business of lamination
 films in Export market was adversely affected, because one of the
 customers has back-integrated into film manufacture based on the large
 quantity of film required. Sales of films for other application have
 grown marginally.
 
 Volatility in input cost, inflationary trend in commodity market,
 higher borrowing cost and fluctuations in Exchange rate has adversely
 affected the business growth and profit margins.
 
 The company continues to make investments in equipments and ancillaries
 to provide customers with improved film performance and quality
 consistent with their requirements.
 
 7.  PROSPECTS FOR THE CURRENT YEAR:
 
 The company expects current year to be full of challenges.  The
 abnormal increase in input cost, stagnancy in demand coupled with high
 inflation rate and increased borrowing cost will put pressure on volume
 growth as well as profit margins. Medium and small enterprises will
 look for consolidation
 
 The uncertainty continues in behaviour of oil prices which will affect
 the prices and availability of critical raw material.  Abnormal
 fluctuations in Exchange Rate will also have adverse impact on cost of
 raw material
 
 The company expects a marginal growth in volumes.  However
 profitability will be determined by focussing efforts on promoting
 films for speciality applications.
 
 The traditional business of multilayer film for production of laminates
 for consumer packaging has become very competitive but the volume of
 business in this sector has some relevance in providing improved plant
 productivity.
 
 The company''s strength has been in ability to understand the ultimate
 customer''s end use performance characteristics of the film and to
 develop its properties that meet with specific performance
 requirements. It is this strength that has allowed the company to
 venture in to some niche market applications hitherto serviced by
 imports. These are mostly industrial applications, pharmaceutical
 packaging and highly specialised laminate applications where the
 margins on sales are consistent with company''s growth objectives and
 its reputation as a supplier providing value to customer.
 
 8.  SUBSIDIARY COMPANY
 
 During the year under review the company has acquired additional 5,
 96,680 equity shares in Synergy Films Private Limited for a total
 consideration of Rs.97, 50,000. With this, company now holds 8, 96,020
 Equity shares of Synergy Films Private Limited which is 74.96% of its
 Equity Capital. Synergy films Private Limited thus has become
 subsidiary of the company.
 
 Pursuant to provisions of Section 212(8) of the Companies Act,
 1956(Act), the Ministry of Corporate Affairs vide its General Circular
 No 2/2011 dated February 8, 2011 has granted general exemption subject
 to certain conditions to holding companies from complying with the
 provisions of Section 212 of the Act which requires the attaching of
 the Balance Sheet, Statement of Profit & Loss and other documents of
 its subsidiary companies to its Balance sheet. Accordingly, the said
 documents are not being included in this Annual Report. The main
 financial summaries of the subsidiary company are provided under the
 section Subsidiary Company: Financial Highlights 2011-12'' in the
 Annual report. However the company will make available the said annual
 accounts and related detailed information of the subsidiary company
 upon request by any member of the Company or its subsidiary company and
 the same will also be kept open for inspection by any member at the
 Registered Office of the Company and the Subsidiary
 
 9.  CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
 EARNINGS AND OUTGO:
 
 Information in accordance with Clause (e) of Sub-section (1) of Section
 217 of the Companies Act, 1956, read with the Companies (Disclosure of
 Particulars in the Report of Board of Directors) Rules, 1988 and
 forming part of the Directors'' Report for the financial year ended 31st
 March 2012 is given in the Annexure to this Report.
 
 10.  PARTICULARS OF EMPLOYEES
 
 Information as per Section 217(2A) of the Companies Act, 1956, read
 with the Companies (Particulars of Employees) Rules, 1975 is not
 provided, as none of the employees of the Company is drawing salary
 above the limits prescribed under the above rules.
 
 11.  AUDITORS QUALIFICATION
 
 Auditor''s remarks referred in para 4(f) in form of non qualifying
 remarks and are self explanatory as per Note No. 29 of Notes to
 Accounts.
 
 12.  DIRECTORS
 
 Mr. Mukul B. Desai, Director of the Company, liable to retire by
 rotation, retires at the ensuing Annual General Meeting and being
 eligible offers himself for re- appointment.
 
 Mr. Bhupendra M. Desai, Director of the Company, liable to retire by
 rotation, retires at the ensuing Annual General Meeting and being
 eligible offers himself for re- appointment.
 
 13.  CORPORATE GOVERNANCE
 
 Pursuant to Clause - 49 of the Listing Agreement with the Stock
 Exchange, Mumbai a report on Corporate Governance, Management
 Discussion and Analysis, and a Certificate obtained from the Auditors
 of the Company regarding Compliance with the conditions of Corporate
 Governance, form part of this Report.
 
 14.  DIRECTORS'' RESPONSIBILITY STATEMENT
 
 Pursuant to section 217 (2AA) of the Companies Act, 1956, the Directors
 confirm that :
 
 (i) In the preparation of the Annual Accounts, the applicable
 accounting standards have been followed and that there are no material
 departures from the applicable accounting standards.
 
 (ii) The Directors had selected such accounting policies and applied
 them consistently and made judgments and estimates that are reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of the Company as on 31st March, 2012 and of the profit of the company
 for the year ended on that date;
 
 (iii) 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;
 
 (iv) The Directors had prepared the Annual Accounts on a going
 concern basis.
 
 15.  AUDITORS
 
 M/s. Akkad Mehta and Co., Chartered Accountants, Auditors of the
 Company will retire at the 30th Annual General Meeting and are eligible
 for re-appointment. A Certificate to the effect that their
 reappointment, if made, will be in accordance with the limit specified
 in Sub- section (1-B) of Section 224 of the Companies Act, 1956 has
 been furnished.
 
 16.  SECRETARIAL AUDIT REPORT
 
 As stipulated by the Securities and Exchange Board of India, a
 qualified Practicing Company Secretary carries out the Secretarial
 Audit to reconcile the total admitted capital with National Securities
 Depository Limited (NSDL) and Central Depository Services Limited
 (CDSL) and the total issued and listed capital of the Company. This
 audit is carried out every quarter and the report thereon is submitted
 to the stock exchanges and is also placed before the Board of
 Directors. The audit, inter alia, confirms that the total listed and
 paid up capital of the Company is in agreement with the aggregate of
 the number of shares in dematerialized form (held with NSDL and CDSL)
 and the total number of shares in physical form.
 
 17.  COMPLIANCE CERTIFICATE
 
 The Compliance Certificate as required under Section 383A of the
 Companies Act, 1956 from a Practicing Company Secretary is attached.
 
 18.  ACKNOWLEDGMENT
 
 The Directors wish to convey their appreciation to Customers,
 Suppliers, Bankers, other Stakeholders and specially the employees for
 their co-operation. The Directors also appreciate the confidence
 reposed in the Management of the Company by its shareholders.
 
                          For and on behalf of the Board of Directors 
 
                                                         P. P. Kharas
 
                                                             Chairman
 
 Mumbai, 11th August, 2012