The Directors have pleasure in presenting their Twenty Fourth Report
on the affairs of the Company, together with the Financial Statements
for the year ended 31st March, 2012.
1. FINANCIAL RESULTS :
Year ended Year ended
31st March, 2012 31st March, 2011
Gross Revenue 16935.30 16032.73
Profit before Finance Costs,
Depreciation and Tax 2029.80 1730.22
Less: Finance Cost 201.16 217.02
Less: Depreciation 382.63 398.63
Profit before Taxation 1446.01 1114.57
Less : Provision for FBT
of earlier years 0.57 0.11
Profit after taxation 1445.44 1114.46
Add: Profit Brought forward
from previous year 3660.88 2546.42
Transferred to General Reserve 144.55 NIL
Proposed Dividend on Equity
Shares 201.87 NIL
Tax on Dividend 32.75 NIL
Closing Balance 4727.15 3660.88
Your directors are pleased to recommend dividend of 25% (Rs 2.50 Per
Equity Share of Rs 10 each) for the Financial Year 31s! March, 2012
(Previous YearRs NIL).
3. MANAGEMENT DISCUSSION AND ANALYSIS :
(i) Introduction :
The Company is involved in manufacturing activities comprising printing
of capital market stationery, commercial printing such as text books,
annual reports etc., security printing like MICR cheques, dividend
warrants, shares and debenture certificates, railway tickets and
coupons, computer stationery, telephone cards (scratch cards), smart
cards, recharge coupons and note books etc. The Company is also engaged
in packaging activities which include flexible packaging material of
multi-layer film laminates, paper board mono cartons, liner carton,
display cartons and outer corrugated boxes etc. The performance of the
Packaging vertical during the year under Report was satisfactory.
However, the Company could not earn higher operating profit due to
lower contribution by the Printing segment and increase in overheads
due to inflation. The performance of the printing division suffered due
to a very sluggish capital market and to offset this, the Company
diversified in new areas of note book and text book printing resulting
in lower margins. In the Packaging Segment, the performance of both
divisions i.e. Flexible Packaging Division and Paper Board Carton
Division improved with enhancement in both turnover and margins.
(ii) Review of Operations:
The Company earned a net profit of Rs 1446.01 lacs in the year under
review as against a net profit of Rs 1114.57 lacs in the previous year.
The Turnover of the Company was higher at Rs 169.35 Crores for the year
as against Rs 160. 32 Crores for the previous year ended, registering an
increase of 5.6%.
The Turnover of different divisions of the Company was as under:
Current year Previous year
Printing Division 60.53 61.91
Flexible Packaging Division 78.10 74.54
Paper Board Carton Division 30.72 23.87
(iii) Segment wise Performance: The Business of Company falls under two
(a) Printing (b) Packaging
(a) Printing Division: The Turnover of Printing Division was almost
equal compared to the previous year.
(b)(i) Flexible Packaging: The turnover of Flexible Packaging Division
of the Company has increased by 4.78% compared to the previous year.
During the year the Division operated its full production capacity
inspite of severe competition and low demand. However, the profit
margin could not increase proportionate to the turnover due to thin
margin because of high input cost.
(ii) Paper Board Carton Division: The turnover of the Paper Board
Carton Division increased by 28.70% compared to previous year. However
the profit margin could not increase due to thin margin because of
The Company is keenly interested in inducting new technology aimed at
upgrading its existing facilities to remain as one of the leading
players in the printing and packaging industry. The Company''s main
thrust now is in paper and paperboard related printing and packaging
business to safeguard its business interest against any government
legislation to curb plastic related packaging on the grounds of
industrial pollution. The Company is committed to promote eco-friendly
packaging for which it installed automatic Board to Kraft fluting
Lamination Machines. All these machineries and equipment will help the
Company enhance its business opportunity in value added printing and
packaging sector and export market.
(iv) Future Prospects/Outlook:
The present scenario of the printing industry is fragmented and is
dominated by a few big players. The printing and packaging industry has
lately improved after receiving initial shock of financial crisis in
the year 2008-09. There is strong belief that this business improvement
will sustain in the future too. The printing and packaging industry is
a service provider and it is co-related with the GDP growth of the
country as well as the growth of country''s educational sector. Since
the GDP growth of the country is pegged at 7%, it provides a lot of
encouragement for growth of printing and packaging industry. In the
present business scenario and with robust GDP growth, the Company is
expecting 10% to 15% growth in its business, at least, for the next
three years. Besides, India''s printing and packaging industry has
upgraded to international standard in the last five years and thus
provides a lot of export business opportunities for the sector. India
is gradually establishing itself as a business sourcing hub for
developed countries in printing and packaging materials. Initially, it
was China and now India is competing with that country in this sector.
Today, the printing and packaging industry export growth is
significant.compared to last five years. Orient Press has also
increased its share of business in exports and will continue to do so
in the future. We expect at least 10% growth in this field. Orient
Press is constantly upgrading its technology to cater to this market
and we expect that in three years our 25% to 30% earnings will be from
the export sector which today stands at 20%. Exports are growing 10%
and your company is upgrading its technology to cater to this market,
to increase contribution of exports from existing 20% in future atlest
25% of the total sales. Your company has also received the Export
House status from the Govt, of India for its consistent export
(v) Industry structure:
Though the printing and packaging industry is one of the biggest
employers in the country, the nature of the industry is not organized
and it has not been termed as an Unorganized.lndustry by the
Government of India. The number of players in our industry is close to
1,30,000 units ranging widely from the highly organized sector to a
very small proprietary units. Due to this diversified structure of the
industry, growth and profitability are affected by unhealthy
The packaging industry enjoys continuous growth in demand year after
year, necessitating large investments for technology upgration and
automation of manual operations. However fragmented nature of the
industry, consequent unhealthy competition put pressures on margins,
increasing payback periods for investments. As demand from the larger
customers is consistently increasing, it is expected the organised
segment will secure larger market share and better margins.
(vi) Opportunities and threats:
a) Opportunities -Scenario for future opportunities is bright. In the
case of printing segment, the enactment of RIGHT TO EDUCATION, by the
Parliament, much larger and increasing allocation of budgetary
resources by the Central and State Governments, demand for text books
and note books is robust.
b. Government is determined to introduce new legislation to curb food
adulteration and enforce higher standards of safe and hygienic
packaging. This will result in greater opportunities for the entire
packaging industry. Your Company is geared up to meet this challenge
and is planning to expand its production capacity in the packaging
field to capitalize on this new business opportunity.
c. Threats - Uncertainty regarding new policies or rules to be
enforced for use of plastics in packaging and their impact on the
pattern of demand for various types of packagings
(vii) Risks and concern -Adverse or sudden changes in policies of
environmental protection affecting use of plastics in packaging,
international market conditions for petrochemicals affecting raw
material prices and unstable demand scenario affecting export volumes
and realisations are risk factors which can impact growth and
profitability of the industry and your company.
(viii) Internal Control Systems and their Adequacy - In our opinion
there are adequate internal control procedures commensurate with the
size of the Company and the nature of its business with regard to the
purchase of stores, raw materials, plant and machinery, equipment and
other assets and for the sale of goods as well. However the Company is
in the process of introducing more systems to strengthen its internal
(ix) Material Developments in Human Resources/Industrial Relations
Front - Directly/ indirectly your Company is providing employment to
500 persons at various levels at its factories and the Corporate
Office. Its industrial relations continue to remain cordial.
The Company is availing its Working Capital Limits from Axis Bank Ltd.
The Company has accepted Fixed Deposits during the year under Report
without inviting Fixed Deposits from public as permitted under the
provisions of Companies (Acceptance) of Deposits) Rules, 1975 and
Section 58 of the Companies Act, 1956. No matured and unclaimed Fixed
Deposit is outstanding for payment as on the date of this Report.
6. CORPORATE GOVERNANCE
As required by Clause 49 of the Listing Agreement, a Corporate
Governance Report is attached as Annexure A to this Report. Certificate
of Auditors regarding compliance of the conditions of Corporate
Governance as stipulated in Clause 49 of the Listing Agreement of the
Stock Exchanges is also attached in Annexure A and forms part of this
7. DIRECTOR''S RESPONSIBILITY STATEMENT
A Director''s Responsibility Statement as required under section
217(2AA) of the Companies Act, 1956 is given below :-
i) Directors have followed the applicable accounting standards in the
preparation of the Annual Accounts and proper explanations relating to
material departures have been given in Note No. 2 of Accounts forming
part of the accompanying Accounts.
ii) Directors have selected the Accounting Policies as given in Note
No. 2 of Accounts 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
of the Profits of the Company for the year ended on that date.
iii) Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of Companies Act, 1956 for safeguarding the assets of the
Company and for preventing and detecting of fraud and other
(iv) Directors have prepared the Annual Accounts for the year ended
31st March, 2012 on a going concern basis.
Shri R. Kannan and Shri Prakash Maheshwari retire by rotation at the
ensuing Annual General Meeting and being eligible offer themselves for
re-appointment. Shri G. Ravishankar was appointed as an Additional
Director of the Company w.e.f. 2nd April, 2012 and his term of office
will expire at the end of ensuing Annual General Meeting and therefore
he is proposed to be re-appointed.
9. AUDITORS AND AUDITORS'' REPORT
The Auditors M/s. B.L. Sarda & Associates, who hold office until the
conclusion of the ensuing Annual General Meeting have furnished
certificate under Section 224(1) of the Companies Act, 1956 for their
eligibility for reappointment. The proposal for their re-appointment
will be set out in the ensuing Notice of the Annual General Meeting.
The Auditors without qualifying their opinion, have drawn attention to
Note no. 33 of Notes regarding non provision for taxation under Section
115JB of the Income Tax Act, 1961, based on expert opinion.
As the said note is self explanatory the Directors do not have any
further comment to offer.
10. COST AUDITORS
As per the requirement of the Central Government and pursuant to
Section 233B of the Companies Act, 1956, the Company is required to
maintain the cost accounting records of Company for the year 2011-2012
and submit Compliance Report. Accordingly the Company had appointed Mr.
Rohit J. Vora, Cost Accountants, Mumbai as Cost Accountant for the year
2011 -2012 who shall submit the Compliance Report for that year by 30th
Further in term of the Notification no. G S R 430E dated 3rd June 2011
issued by the Central Government, the Company is required to carry out
an audit of cost records relating to Paperboard Division commencing
from year 2011-12. The Company had appointed Mr. Rohit J. Vora, Cost
Accountants, Mumbai as Cost Accountant for the year 2011 -2012 who
shall submit the Audit Report for that year by 30th September, 2012.
11. PARTICULARS OF EMPLOYEES
Information in accordance with the provisions of section 217(2A) of the
Companies Act, 1956 read with Companies (particulars of employees)
Rules, 1975 are not applicable to the Company as Company has not
employed any person drawing a salary of Rs 60,00,000/- in a year or Rs
5,00,000/- per month if employed for part of the year.
12 CONSERVATION OF ENERGY. TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO:-
A) Conservation of Enerav:-
The Company is not covered under the list of industries specified in
the Schedule to furnish the information in Form A under Rule 2 of
the Companies (Disclosures of Particulars in the Report of Board of
Directors) Rules 1988. The manufacturing operations of the Company are
not power intensive. However, the Company makes every possible effort
to conserve energy.
B) Technology absorption:-
The Company does not have any technical collaboration. The Company uses
the latest technology and process available in the printing and
packaging industry. Accordingly, the Company has the latest equipment
and its personnel are trained, from time to time, on the use, operation
and maintenance of such sophisticated equipment.
c) Foreign Exchange Earnings and Outgo:-
Foreign Exchange earned - Exports 3330.49
Foreign Exchange used for
a) Raw materials, Stores and Spares and capital goods 747.56
b) Expenses 33.79
The Directors wish to place on record their appreciation of the
continuous support received by the Company from Banks, Central/State
Government Departments, it customers, suppliers and shareholders. The
Directors express their appreciation for the dedication and commitment
shown by the employees at all levels.
By Order of the Board of Directors
Chairman & Managing Director
Mumbai, 30th May, 2012
L-31 MIDC Tarapur Industrial Area
Boisar 401 506, Dist. Thane.