Dear Shareowners,
 
 The Directors take pleasure in presenting the 27th Annual Report on
 the business and operation of the Company together with Audited
 financial statements and accounts for the year ended 31st March, 2012.
 
 Highlights
 
 The key highlights for the financial year 2011-12 are:
 
 Increase in net Sales by 7.74 % to Rs. 913 Crore.
 
 Increase in PBDIT by 21 % to Rs.57.88 Crore.
 
 Increase in PAT by 26 % to Rs. 24.24 Crore.
 
 Financial Results
 
                                                ( Rs. In Lacs)
 
                                      2011-2012         2010-2011
 
 Net Turnover and other Income        91323.21          84758.47
 
 Profit before Depreciation, 
 Interest & Tax                        5788.27           4780.94
 
 Less : Depreciation                    883.52            705.41
 
 Interest                              1685.62           1298.81
 
 Profit before Tax                     3219.13           2776.72
 
 Less : Provision for Tax               794.77            863.50
 
 Profit After Tax                      2424.35           1913.22
 
 Add: Profit brought forward from 
 previous year.                        7614.88           6663.97
 
 Add: Balance b/f from Amalgamating 
 Company                                     0            (81.22)
 
 Amount Available for Appropriation   10039.24           8495.96 
 
 Appropriation
 
 Proposed final dividend on 
 Equity Shares                          413.92            413.92
 
 Corporate Dividend Tax                  67.15             67.15
 
 Transfer to General Reserve            400.00            400.00
 
 Surplus carried to Balance Sheet      9158.17           7614.89
 
 Operations
 
 The Company has repeated an impressive performance in polymer compounds
 business. Revenue from Operations and other income for FY 2011-12 was Rs.
 913 .23 Crore higher by 7.74% compared to Rs. 847.58 Crore in the
 previous year and PAT was Rs. 24.24 Crore for the Current year as against
 Rs. 19.13 Crore in the previous year.
 
 The Company''s Production and Sales have recorded a significant growth
 over the previous year. Higher level of Capacity utilization backed by
 a strong volume growth, tighter cost control geared the company to
 register notable performance for the year, in spite of a miniscule
 price increase. Your Company has consciously been following a policy of
 steady growth in production for last several years.
 
 Expansion
 
 The Company is in the process of commissioning a new production unit at
 Surangi, Silvasa with capacity of handling 200000 TPA of our products.
 Once the project is completed, production capacity of Bhiwadi, Daman
 and
 
 Silvasa – II will be shifted to new unit. The new unit will produce
 various grade of Compounds which includes XLPE, HFFR, Filled PP for
 furniture & appliances, Filled PE Compounds for antifab used for Woven
 Sack, white and black Master Batches, Rigid and Flexible PVC Compound
 used for Cable Insulation, Footwear & Pipe Jointing and other value
 added composition like Zero Halogen Fire Retardant Compound and
 Engineering Plastics. The Company continued its on-going effort to
 increase all – round efficiency and reduced cost.
 
 New Projects
 
 Your company, in order to diversify its product concentration risk and
 take advantage of its in-house compounding knowledge has decided to
 embark on an ambitious flexible packaging project in West Bengal. A
 state of the art flexible packaging unit, complete with blown and
 extrusion film lines, printing, lamination, slitting and pouching
 facilities is being set up in Dankuni along with ink making facilities
 in Bhasa. The total project cost is estimated at Rs 120 Crores and is
 expected to generate net profit returns in excess of 10% when fully
 operational. The facilities are expected to be commissioned
 progressively through in between January and December 2013. Your
 company has also commenced full scale pre-marketing activities with its
 target customers so that the plant, once commissioned, would be able to
 deliver quality products to prospective customers in multiple segments
 in the shortest possible time.
 
 Dividend
 
 Your Directors are pleased to recommend a dividend of Rs. 2.20/- per
 equity share of Rs. 10/- each i.e. 22% for the financial year ended March
 31st, 2012.The Dividend outgo would amount to Rs. 481.07 lacs (inclusive
 of Dividend Distribution tax of Rs. 67.15 lacs). The dividend subject to
 approval of the shareholders at the AGM on 28th September, 2012, will
 be paid to the members whose names appear in the register of members as
 on the date of book closure for the AGM.
 
 General Reserve
 
 Out of the amount available for appropriation for the financial year
 2011-12, an amount of Rs. 4 Crore has been transferred to the General
 Reserve.
 
 Fixed Deposits
 
 Your Company has not accepted any fixed deposit during the year under
 review in terms of Section 58A of the Companies Act, 1956 read with
 Companies (Acceptance of Deposit) Rules, 1975 and hence no amount of
 principal or interest was outstanding as at the Balance Sheet date.
 
 Listing of Shares
 
 During the year under review 320000 equity shares of Rs. 10/- each
 allotted to the shareholders of Bavaria Poly Private Limited, pursuant
 to the scheme of amalgamation, were listed on BSE and CSE.
 
 Research and Development
 
 Your Company recognizes that Research & Development plays a critical
 role in supporting current operations as well as in future growth. Your
 Company has focused its attention towards development of Products that
 have wide industrial application particularly in cable, piping,
 packaging and footwear industry.
 
 Insurance
 
 The Company''s plants & machineries, factories and movables are
 adequately insured against various risks.
 
 Directors
 
 Shri D.C. Surana ceased to a Director on the Board due to his sudden
 demise on 14th January, 2012. The Board of Directors places on record
 its sincere appreciation of the valuable contributions made by Late
 Shri D.C. Surana during his tenure of office.
 
 The Board has appointed Mr. Nilay Guha as Additional Director of the
 Company with effect from 11th February, 2012. Pursuant to section 260
 of the Companies Act, 1956, Mr. Nilay Guha would hold office upto the
 date of the ensuing Annual General Meeting. However, the company has
 received requisite notice from a member under section 257 of the
 Companies Act 1956, proposing the name of Mr. Guha as a candidate for
 the office of director liable to retire by rotation.
 
 The Board of Directors has also appointed Mr. Indranil Dasgupta as a
 Whole-Time-Director of the Company subject to approval of the members,
 for a period of three years with effect from 11 th February, 2012.
 
 Dr. R.Dasgupta, Director is due to retire by rotation at the conclusion
 of the forthcoming Annual General Meeting and being eligible, has
 offered himself for reappointment.
 
 Suitable resolutions for appointment/reappointment of Director, as
 referred above, will be placed for approval of the members in the
 forthcomming Annual General Meeting. The brief resume and other
 information of the conserned directors, in terms of the provisions of
 clause 49 of the Listing Agreement with Stock Exchanges, have been
 detailed in the notice convening the forthcomming Annual General
 Meeting.
 
 Directors'' Responsibility Statement
 
 Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
 hereby confirm that:
 
 - in preparation of the annual accounts, the applicable accounting
 standards have been followed. There are no material departures from
 these applicable accounting standards.
 
 - 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 a true and fair view of the state of affairs of
 the company as at 31st March, 2012 and its profit for the year ended on
 that date.
 
 - the directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Act for safeguarding the assets of the Company and
 for preventing and detecting fraud and other irregularities.
 
 - the directors have prepared the annual accounts on a going concern
 basis.  Auditors and Auditors'' Report
 
 The Statutory Auditors of the Company, M/s D.C. Dharewa & Co.,
 Chartered Accountants, Kolkata, retire at the conclusion of the ensuing
 Annual General Meeting of the Company and confirmed their willingness
 and eligibility for reappointment, if made, will be within the limits
 under section 224(1B) of the Companies Act, 1956 and that they are not
 disqualified for reappointment within the meaning of section 226 of the
 Companies Act, 1956.
 
 Further, the Auditors have confirmed that they have undergone the peer
 review process of the Institute of Chartered Accountants of India
 (ICAI) and hold a valid certificate issued by the ''Peer Review Board''
 of ICAI. The observations of the Auditors in the Report on Accounts
 read with the relevant notes are self - explanatory and do not call for
 any further comments.
 
 Cost Audit
 
 M/s. D. Sabyasachi & Co., Cost Accountants, Kolkata have been appointed
 as Cost Auditors of the Company for the Financial Year 2012-13
 commencing 1st April, 2012, subject to approval of the Central
 Government. Compliance Audit relating to ''PVC Compound'' for the year
 ended 31st March, 2012, has been conducted by the said cost auditors
 and related report will be submitted to the Ministry of Corporate
 Affairs, Government of India within the prescribed time.
 
 Particulars of Employees
 
 None of the employees employed throughout the year or part of the year
 who was in receipt of salary of Rs. 5,00,000 /- or more per month orRs.
 60,00,000 /- or more per annum, therefore, no details have been
 provided or required under section 217 (2A) of the Companies Act, 1956
 read with the Company (Particulars of Employees) Rules, 1975.
 
 Human Resources and Industrial Relations
 
 The Industrial relations of the Company with its personnel has
 continued to be cordial and amicable. Your Directors acknowledge and
 appreciate the efforts and dedication of employees to the Company. Your
 directors wish to place on record the co-operation received from the
 Staffs and Workers at all levels and at all units.
 
 Particulars of Conservation of Energy, Technology Absorption and
 Foreign Exchange Earnings and Outgo.
 
 Our Company has directed its efforts to reduce energy costs by focusing
 on energy savings through the best optimization of operations on a day
 to day basis. The Company has used fuels in appropriate mix to attain
 maximum savings.
 
 As required to be disclosed in terms of 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, the
 relevant data pertaining to conservation of energy, technology
 absorption and foreign exchange earnings and outgo is given in the
 prescribed format as an Annexure to the Report and marked as Annexure
 –''A''.
 
 Management''s Discussion and Analysis Report
 
 In accordance with Clause – 49 of the Listing Agreement with the Stock
 Exchanges in India, the Management''s Discussion and Analysis Report for
 the year under review, is presented in a separate section forming part
 of the Annual Report and marked as Annexure – ''B''.
 
 Corporate Governance
 
 The Company believes in maintaining the highest standards of Corporate
 Governance and has complied with the applicable provisions of Corporate
 Governance under clause 49 of the Listing Agreement with the stock
 exchanges.  A detailed report on Corporate Governance, as stipulated
 under Clause – 49 of the Listing Agreement with the Stock Exchanges in
 India, is included in a separate section forming part of the Annual
 Report and marked as Annexure – C.
 
 A certificate from the Auditors of the Company M/s D. C. Dharewa & Co.,
 Chartered Accountants, Kolkata, confirming compliance of conditions of
 Corporate Governance as stipulated under the aforesaid Clause 49, is
 annexed to this Report.
 
 Acknowledgement
 
 Your Directors take this opportunity to thank the Financial
 Institutions, Banks, Central and State Governments authorities,
 Regulatory authorities, Stock Exchanges and all the various
 stakeholders for their continued co-operation and support to the
 Company.
 
 Your Directors also wish to place on record their appreciation to all
 of the Company''s employees and workers at all level for their enormous
 personal efforts as well as their collective contribution to the
 Company''s performance.
 
                            For and on behalf of the Board of Directors
 
 Place: Kolkata                                       Narrindra Suranna
 
 Date: 24th August, 2012                   Chairman & Managing Director