The Directors hereby present the 29th Annual Report together with the
audited accounts of the Company for the year ended March 31, 2012.
Financial Highlights (Rs. in lakhs)
Year ended March 31 2012 2011
Sale 590.00 611.71
Other Income 3.13 000.76
Total Income 594.00 612.47
Profit/Loss) before Depreciation,
interest and taxes 44.50 54.58
Interest 3.26 00.86
Depreciation & Amortization 18.51 21.00
Profit/(Loss) before tax 22.73 32.72
Prior year adjustment - (00.13)
Provision for Gratuity - -
Provision for tax - -
Provision no longer required - 4.86
Profit/(Loss) after tax 22.73 37.45
Your Directors are happy to state that the working of your Company has
been satisfactory during the year as compared to the previous year.
Revenue during 2011-12 at Rs. 590.00 Lakhs the previous year revenue of
Rs. 611.71 Lakhs. EBITDA during the year is Rs. 44.50 Lakhs as compared
to Rs. 54.58 Lakhs during the previous year. The net profit after tax
for the year is Rs. 22.73 Lakhs as compared to net profit of Rs. 32.72
Lakhs during the previous year.
The Company''s financial statements have been prepared in accordance
with Indian Generally Accepted Accounting Principles (GAAP) and
Companies Act, 1956.
Your Company''s product, i.e. HDPE Corrugated pipes for use in
bridges/flyover constructions, foundation drainage etc, are well
accepted in the market and orders are being received from various MNC.
Company''s double walled corrugated pipes have been well accepted. Your
Directors are hopeful to receive good orders of the new products in
years to come. The company during the year has completed major part of
work contracts of SSD projects in Karnataka State.
In view of the accumulated losses, your Directors have not recommended
any dividend for the year under review.
During the year, there has been no reprieve in legal and similar
proceedings continuing before Courts, Debt Recovery Tribunal, Sales Tax
department, BIFR/A AIFR (under SICA) etc.
Mr. Ashok Gupta, Director of the company, retire by rotation at the
ensuing Annual General Meeting and being eligible, offer himself for
re-appointment. The Board of Directors has recommended his
reappointment for consideration of the shareholders.
Mr. Anil P Sahu has ceased to be Managing Director and continues as a
Director of the Company w.e.f. 26th August, 2011. Mr. Sanil P Sahu,
Whole-time Director has been appointed by the Board, subject to
approval of the ensuing Annual General Meeting, as Managing Director
w.e.f. 1st June, 2012.
Directors'' responsibility statement
In terms of section 217 (2AA) of the Companies Act, 1956 your Directors
a. In the preparation of the annual accounts under review, the
applicable accounting standards have been followed along with proper
explanations relating to material departures, if any.
b. Appropriate accounting policies were selected and applied
consistently and reasonable and prudent judgment and estimate were made
so as to give a true and fair view of the state of affairs of the
Company at the end of the financial year under review and the profit of
the Company for the year ended on that date.
c. Proper and sufficient care was 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
from preventing and detecting fraud and other irregularities.
d. The annual accounts have been prepared on a going concern basis.
The existing statutory auditor, M/s. SNMG & Co. Chartered Accountant,
New Delhi, hold office till the conclusion of the ensuing Annual
General Meeting and are eligible for reappointment. The requisite
certificate under section 224 (IB) of the Companies Act, 1956 has been
received from them expressing their willingness for reappointment.
The observations made in Auditor''s Report are self-explanatory and
covered by the notes on the accounts and, therefore, do not call for
any further comments.
Corporate Governance & Management Discussion & Analysis
A Report on Corporate Governance as stipulated in Clause 49 of the
Listing Agreement along with the Auditor''s certificate is enclosed in
terms of Clause 49 of the said Agreement and forms, part of the annual
Management Discussion & Analysis: Company Overview
The company is engaged in the manufacture of Rigid PVC Pipes and
PVC/HDPE Corrugated pipes with manufacturing facilities at Malanpur
(Madhya Pradesh) and Kota (Rajasthan). These pipes are fast
substituting the conventional pipes and have better outlook.
The company had, since beginning, adopted the policy of institutional
sales, as the Govt, departments were the buyers for large diameter
pipes for irrigation and water supply schemes. As such, a majority of
the sale was made to Govt, and semi-Govt. departments after
participating in the tenders floated by them. The recession during the
late nineties led to the poor development work by the Govt, resulting
in low procurement of material by them, which in turn adversely
affected the revenues and profitability of the Company. The company has
now create private market sales network, but could not develop it''s
brand and market the products in open market, in view of paucity of
The company has already taken steps to improve the capacity
utilisation, achieve higher sales by targeting new clients with a focus
on margins, nurturing existing relationships, geographic expansion and
other initiatives. The company has appointed an external consulting
group to formulate a comprehensive revival plan for the company, which
principally focuses on:
- Business Restructuring
- Management Restructuring
- Financial Restructuring
The benefits of the revival plan will be clearly visible on its
implementation in subsequent years.
Internal Controls and Adequacy
The company has in place adequate systems of internal controls,
designed to provide reasonable assurance with regard to recording and
providing reliable financial and operational information, complying
with applicable statues, safeguarding assets and interest of the
Company and ensuring that transactions are properly authorized,
recorded and reported correctly. The internal control systems are
supplemented by review by the Audit Committee.
Conservation of energy, technology, observation and foreign exchange
earnings and outgo
Particulars required under 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, are set out in the Annexure 1
to this Report.
Particulars of employees
None of the employees is covered under Section 217 (2A) of the
Companies Act, 1956, read with Companies (Particulars of Employees)
Your Directors place on record their appreciation for the continued
assistance and co-operation to your Company by various Government
Departments, Company''s shareholders, employees, vendors, customers,
suppliers and other stake holders.
For and on behalf of the Board of Directors
Anil P. Sahu Sanil P. Sahu
Director Managing Director
Place: New Delhi
Dated: 16th Aug, 2012