The Directors are pleased to present the Twenty Third Annual Report
and the Audited Financial Statements for the year ended 31st March,
FINANCIAL RESULTS (Summary of key data) [Rs.In Lacs]
Particulars 2013-2014 2012-2013
Revenue Receipts 34007 30043
Other Income 174 193
Total Revenue Receipts including 34181 30236
Operating Profit before Finance Cost, 2388 2194
Depreciation & Tax
Loss on sale of Investments (97) (7)
Less: Finance Cost 121 169
Depreciation 260 265
Profit before tax 1910 1753
Less: - Current Tax 525 471
- Tax in respect of earlier years - (1)
- Deferred Tax 38 4
Profit after tax 1347 1279
Balance brought forward
from previous year 576 500
Profit available for appropriations 1923 1779
Proposed Dividend on Equity Shares 239 212
Tax on Dividend 40 36
General Reserve 1061 955
Balance Carried to Balance Sheet 583 576
REVIEW OF OPERATIONS
During the year under review, your 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. Your Company has maintained its leadership,
due to continuous thrust on Research, Development and Technology
up-gradation innovative products 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, your Company has achieved a turnover of Rs. 34007 lacs as
against Rs. 30043 lacs in the previous year, registering an increase of
13.19 % over the previous year. The growth in sales volume, despite a
subdued economical scenario, was made possible due to a focus on value
Your Company has also improved its performance in Exports and achieved
a direct export turnover of Rs. 9650 lacs as against
Rs. 7580 lacs in previous year, registering an increase of 27.31%.
Despite stiff competition from other countries, international buyers
show preference to your company''s product due to its quality. The
international market is expected to grow further.
Based on the Company''s performance, the Directors are pleased to
recommend a dividend of Rs. 2.25 per share for the year 2013-14,
subject to the members'' approval. The dividend on the Equity Shares, if
approved by the members, would involve a cash outflow of Rs. 279.30
Lacs, including dividend distribution tax.
Through consistent efforts in maintaining and improving the
international quality standards, your Company has noticed that there is
good demand for its products. This has helped in facing price
competition in both domestic and international markets and also
achieved increased volume. 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
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 many others.
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
equipments. These equipments are used to test dispersion,
filterability, mechanical, rheological, thermal & colorist properties
of products that are being developed for customer specific
requirements. Tests are carried out conforming to internationally
accepted test standards.
Your Company has established various quality initiatives to meet or
exceed the expectations of its customers. It has invested in various
pilot plants and state-of-the-art testing equipment in order to carry
out all relevant tests for masterbatches, which support the smooth
running of it''s customers'' production process well.
Close interaction with your Company''s customers and independent
laboratories ensures continuous feedback, which we take on board for
the continued optimisation of products and processes.
STAR EXPORT HOUSE STATUS AND CRISIL RATING
Sustained growth in exports has enabled your 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 a strong degree of safety
with regards to timely payments.
Smt. Mahima P. Agarwal retires by rotation at the ensuing Annual
General Meeting pursuant to the provisions of the Companies Act, 1956
and the Companies Act, 2013 to the extent applicable and Articles of
Association of the Company and, being eligible, offers herself for
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 been included in the Annual Report. A corporate governance
compliance certificate obtained from the auditors of the company is
part of the 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 year-end.
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 139 of the Companies Act,
2013 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 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, 2014.
ENVIRONMENT, SAFETY, ENERGY CONSERVATION, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGO
Your Company accords high priority to health, safety and environment.
Your Company emphasizes maintaining a healthy and safe environment in
and around its facilities. Safety awareness is inculcated through
regular Safety awareness programs, basic fire safety training, mock
drills etc. As a part of safety management system, a comprehensive
Safety manual has been developed for use by operating and safety
personnel. There haven''t been any incidence of accidents reported
during the year under review.
Several initiatives, initiated earlier, were further continued as part
of our 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
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
GO GREEN INITIATIVE
The Ministry of Corporate Affairs has taken a ''Green Initiative in
Corporate Governance'' by issuing circulars allowing paperless
compliances by Companies through electronic mode. Further, in line with
circular issued by the Securities and Exchange Board of India (SEBI)
and consequent changes in the listing agreement, Companies can send
their Annual Report in electronic mode to Members who have registered
their e-mail addresses for this purpose. In the 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. Members holding shares in demat form are
requested to register their e-mail address with their Depository
Participants only. Members of the Company, who have registered their
e-mail address, are entitled to receive such communication in physical
form, upon request. 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 firstname.lastname@example.org.
The Company solicits active cooperation of shareholders in helping the
Company to implement the e-governance initiatives of the Government.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies (Amendment) Act, 2000,
the Directors confirm:
(a) that in the preparation of the Annual Accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
(b) 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, 2014 and of the
profit of the Company for the period ended on that date;
(c) 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
(d) 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 and
achieving 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 : JAIPUR R. K. Sureka S. S. Poddar
DATE : 15th May, 2014 DIRECTOR & CEO MANAGING DIRECTOR