The Directors are pleased to present the Twenty Second Annual Report
on the business and operations of the Company, together with the
Audited Financial Statement for the year ended 31st March, 2013.
[Rs. in Lacs]
Particulars 2012-2013 2011-2012
Revenue Receipts 30043 23930
Other Income 193 113
Total Revenue Receipts
including other income 30236 24043
Operating Profit before Finance
Cost, Depreciation & Tax 2194 2085
Loss on sale of Investments (7) (194)
Less: Finance Cost 169 179
Depreciation 265 270
Profit before tax 1753 1442
Less:-Current Tax 471 393
-Tax in respect of earlieryears (1)
- Deferred Tax 4 65
Profit after tax 1279 984
Balance brought forward from
previous year 500 397
Profit available for appropriations 1779 1381
Proposed Dividend on Equity Shares 212 212
Tax on Dividend 36 35
General Reserve 955 634
Balance Carried to Balance Sheet 576 500
The global economy in the Financial Year 2012-13 improved slowly, but
was short of expectations. Several European economies experienced
recession due to high unemployment, banking fragility, fiscal
tightening and sluggish growth. Deceleration in industrial output and
exports weakened India''s economic growth significantly.
The economic environment in 2012-13 has been tough and the growth in
India moderated for one more year. There were various internal and
external factors that played a role. The effect of the uncertainty and
recessionary trends in the global economies was compounded by the
complexity in the domestic environment.
During the year under review the Company performed well in all areas of
its operations with impressive top line growth and consistent earnings,
reflecting the effective corporate strategy of creating multiple
drivers of growth. The Company has maintained its leadership, due to
continuous thrust on Research,
Development and Technology up-gradation and is expected to further
improve its performance in forthcoming years.
Your Company has scaled new heights in overall performance and has set
new benchmarks in terms of turnover (including export benefit). During
the year, the Company has achieved a turnover of Rs. 30043 lacs as
against Rs. 23930 lacs in the previous year, registering an increase of
25.54% over the previous year. The growth in sales volume in spite of
subdued economical scenario was made possible with more focus on value
Your Company has also improved its performance in Exports and achieved
direct export turnover of Rs. 7580 lacs as against Rs. 5580 lacs in
previous year, registering an increase of 35.84%. Your Company Exports
to more than 25 countries around the Globe.
Based on the Company''s performance, the Directors are pleased to
recommend a dividend of Rs. 21- per share for the year 2012-13, subject
to the members'' approval. The dividend on the Equity Shares, if
approved by the members, would involve a cash outflow of Rs. 248.26
Lacs including dividend tax for the year 2012-13.
Through consistent efforts in maintaining and improving the
international quality standards, your Company has found satisfactory
demand for its products. This has helped in facing price competition in
both domestic and international markets and also achieved increased
sales. With sustained efforts, we expect further improvements in our
performance in the current year. Your Company will continue to seek
new markets while consolidating its hold over the existing customers.
RESEARCH AND DEVELOPMENT
Your company continues to benefit from the strong foundation and long
tradition of Research and Development (R&D) which differentiate us from
In an increasingly competitive business environment, your Company
recognizes the importance of Research & Development (R&D) to maintain
its leadership position. Your Company has, over the years, invested
significantly in its Research & Development (R&D) facility, as a key
source of sustainable competitive advantage.
The R&D division of your Company, located at its plant (recognized by
the Department of Science and Industrial Research (DSIR), Government of
India, as an In-House R&D Unit), constantly endeavors to innovate and
change the product- mix/process, to create higher value items at lower
costs and to widen its range of new generation masterbatches. Its R&D
efforts aim at ensuring cost optimization and environment protection.
It strives to leverage modern advances in science and technology and
blend the same with classical concepts of product development.
The R&D division of your company is equipped with state-of-the- art
testing equipments. These equipments are used to test dispersion,
filterability, mechanical, rheological, thermal, optical & colorist
properties of incoming raw materials and outgoing finished products.
Tests are carried out conforming to internationally accepted test
Your Company is committed to produce and deliver zero-defect
Masterbatches. It also endeavors to achieve consistent customer
satisfaction by implementing and meeting the ISO 9001:2008 QMS
requirements. Constant Interaction with Customers, Optimum utilization
of resources and Training & Education of Employees are carried out in
order to ensure that your company attains its goals.
STAR EXPORT HOUSE STATUS AND CRISIL RATING
Sustained growth in exports has enabled the Company to maintain its
Star Export House Status under the Foreign Trade Policy 2009-2014.
The Company''s Credit Rating is A/Stable/A1 assigned by CRISIL for its
working capital borrowings which signifies strong degree of safety
regarding timely payment.
Smt. Mahima P. Agarwal, retires by rotation at the ensuing Annual
General Meeting pursuant to the provisions of the Companies Act, 1956
and Articles of Association of the Company and, being eligible, offers
herself for re-appointment.
Your Company has been actively practicing the principles of good
corporate governance over the years. The Board of Directors supports
the broad principles of corporate governance. In addition to the basic
governance issues, the Board lays strong emphasis on transparency,
accountability and integrity.
The report on Corporate Governance (in accordance with Clause 49 of the
Listing Agreements with the Stock Exchanges), the Auditors'' certificate
on compliance by the Company and the Management Discussion & Analysis,
have all been included in the Annual Report.
COMPLIANCE WITH THE CODE OF CONDUCT
The Director and Senior Management Personnel have reaffirmed their
compliance with the code of conduct
The company has neither accepted any deposits during the year under
review, nor does it have any fixed deposits outstanding at the
The information required under Section 217(2A) of the Companies Act,
1956 read along with Companies (Particulars of Employees) Rules, 1975,
is given in the statement annexed hereto forming a part of the Report.
M/s K. N. Gutgutia & Co, Chartered Accountants, the present Statutory
Auditors of the Company, hold office till the ensuing Annual General
Meeting and are eligible for re-appointment. They have furnished a
Certificate to the effect that the re- appointment, if made, would be
within the limits prescribed under Section 224(1-B) of the Companies
Act, 1956 and have confirmed their eligibility and willingness to
accept office, if re- appointed.
Complying with the provisions of Section 233B of the Companies Act,
1956 and the MCA General Circular No. 15/2011 dated April 11,2011, (as
amended vide General Circular No. 36/2012 dated 6th November, 2012)
subject to the approval of the Central Government, the Audit Committee
has recommended and the Board of Directors had appointed M/s. K. G.
Goyal & Associates, Cost Accountants, Jaipur (Registration No. 000024)
being eligible and having sought appointment, as Cost Auditors of the
Company to carry out the Cost Audit of all the products manufactured by
the Company for the year ended March, 2013.
ENVIRONMENT, SAFETY, ENERGY CONSERVATION, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGO
Your Company is continuously on the lookout for new ways to preserve
the environment and to manage resources responsibly. Your company
adopts clean technologies and processes that combine both economic
progress and environment sustainability. The company has taken a number
of green initiatives including waste optimization, water conservation
and compliance with applicable laws and regulations.
Your Company has Safety Committee, which regularly monitor compliance
with the Company''s Health & Safety policy. Additional steps have been
taken to install equipments, such as additional fire extinguishers of
different classes, fume extraction system, de-dusting stations etc.
Your company attaches utmost importance to safety. The only acceptable
standard of safety performance for your company is zero accidents.
Safety education and training is imparted to everyone on a regular
Several initiatives were continued as part of energy saving measures.
The drive for energy conservation is always a key priority and your
Company continuously strives to achieve this through process
improvements and through the enhancement of equipment capabilities.
Particulars relating to Energy Conservation, Technology Absorption and
Foreign Exchange Earnings and Outgo, as required under section 217(1
)(e) of the Companies Act 1956, are enclosed as a part of this report.
GO GREEN INITIATIVE
The Ministry of Corporate Affairs, Government of India, through its
Circular nos. 17/2011 and 18/2011 dated April 21, 2011 and April 29,
2011 respectively, has allowed companies to send the Annual Reports and
other official documents to their shareholders electronically as part
of its green initiatives, provided that the email addresses of the
shareholders are obtained by the Company from the shareholders. This
move by the Ministry will benefit the society at large through
reduction in paper consumption and contribution towards a greener
environment. It will also ensure prompt receipt of communication and
avoid loss in postal transit.
Keeping the above in view, your Company proposes to send documents such
as the Notice of the Annual General Meeting and Annual Reports
henceforth to the shareholders by electronic means, to the e-mail
address provided by them and/or made available to the Company by the
Depositories. In absence of any communication from the shareholders,
the email id in the records of depositories shall be considered as the
registered email id of the respective shareholder.
All the shareholders who hold their shares in physical form and whose
e-mail address are not available with the Company, may, if they wish to
receive the Annual Report in electronic form, please send their email
id to email@example.com.
The Company solicits active cooperation of shareholders in helping the
Company implement the e-governance initiatives of the Government.
RISK AND INTERNAL ADEQUACY
Your Company has a low debt-equity ratio and is well placed to take
care of its borrowings. Foreign Exchange transactions are largely
covered to the extent of exposure otherwise not covered by natural
hedging. Your Company is progressively moving towards a net
foreign-exchange earner status.
The Company''s internal control systems are adequate considering the
size of the Company and are routinely tested and certified by our
statutory as well as internal auditors. Significant audit observations
and follow up actions thereon are reported to the Audit Committee.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies (Amendment) Act, 2000,
the Directors confirm:
(i) that in the preparation of the Annual Accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
(ii) that the directors have selected such accounting policies and
applied them consistently and have 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 of 31st March, 2013 and of the
profit of the Company for the period ended on that date;
(iii) that the directors have taken proper and sufficient care to
ensure 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
(iv) That the directors have prepared the Annual Accounts on a ''going
The Management is grateful to the various Government and
Semi-Government Authorities, Bankers, Investors, Marketing Dealers,
Vendors and Customers for their valued support and co-operation.
The Directors also wish to place on record their appreciation for the
dedication and excellent contribution of the employees in realizing the
objectives of the Company. The enthusiasm of the employees has enabled
the company to remain at a constant growth path.
For and on behalf of the
Board of Directors
PLACE: MUMBAI R. K. Sureka S. S. Poddar
DATE : 22nd MAY, 2013 DIRECTOR & CEO MANAGING DIRECTOR