The Directors are pleased to present the Twenty First Report on the
business and operations of the Company, together with the Audited
Accounts for the year ended 31st March, 2012.
FINANCIAL RESULTS (Rs. in Lacs)
Particulars 2011-2012 2010-2011
Revenue Receipts 23931 20056
Other Income 113 251
Total Revenue Receipts
including other income 24044 20307
Operating Profit before
Cost, Depreciation & Tax 2085 1811
Loss on sale of Investments (194) -
Less: Finance Cost 179 178
Depreciation 270 233
Profit before tax 1442 1400
Less: -CurrentTax 393 410
- Deferred Tax 65 34
Profit after tax 984 956
Balance brought forward
from previous year 397 1420
Profit available for
appropriations 1381 2376
Interim Dividend on Equity
Shares - 159
Proposed Dividend on Equity
Shares 212 80
Total Dividend on Equity Shares 212 239
Tax on Dividend 35 40
General Reserve 634 1700
Balance Carried to Balance Sheet 500 397
The global economy has witnessed lower economic growth, barely a year
after recession. FY 2011-12 was a challenging year. Despite these
constraints and the challenging environment, your company performed
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. 23931 lacs as
against Rs. 20056 lacs in the previous year, registering an increase of
19.32% over the previous year.
Your Company has also improved its performance in Exports and achieved
direct export turnover of Rs. 5580 lacs as against Rs. 4939 lacs in
previous year, registering an increase of 12.98%. Your Company Exports
to over 20 countries around the globe.
Your Company posted yet another year of high performance, with
impressive top line growth and consistent earnings, reflecting the
effective corporate strategy of creating multiple drivers of growth.
Based on the Company''s performance, the Directors are pleased to
recommend for approval by the members, a dividend of Rs. 21- per share
for the year 2011-12. The dividend on the Equity Shares, if approved by
the members, would involve a cash outflow of Rs. 246.63 Lacs, including
dividend tax for the year 2011-12.
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
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, 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, Theological, thermal, optical & colorist
properties of incoming raw materials and outgoing finished products.
Tests are carried out conforming to internationally accepted test
The R&D division of the Company has been recognized by the Department
of Science and Industrial Research (DSIR), Government of India, as an
In-House R&D Unit on 06.06.2012.
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.
During the year Smt. Kusum Poddar resigned from Directorship w.e.f.
21.07.11 and Shri V.K. Fogla has vacated the office of director w.e.f.
27.08.11. The Board places on record its appreciation for their
valuable contribution to the Company.
Further, Smt. Mahima R Agarwal and Shri Kishore Rungta have been
appointed Additional Director of the Company w.e.f. 25.07.11 and
confirmed Directors w.e.f. 27.08.11.
Shri M. K. Sonthalia, 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.
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 Company had put in place a Code of Conduct for its Board Members
and Senior Management Personnel from 23rd January 2006 and has
reaffirmed the same on 7th February 2012. It is also available on the
website of the Company. Declarations on compliance with the Code of
Conduct have been received from all concerned. A certificate annexed to
this effect forms a part of this Report.
The company has neither accepted any deposits during the year under
review, nor does it have any fixed deposits outstanding at the year
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 have confirmed their eligibility and willingness to accept
office, if re-appointed.
ENVIRONMENT, SAFETY, ENERGY CONSERVATION, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGO
Your Company is continuously on the look-out 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 Committees, 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
GO GREEN INITIATIVE
Recently, 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.
As a first step, your Company is Printing Annual Report using recycled
paper. Keeping the above in view, your Company also 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 firstname.lastname@example.org.
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 judgements 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, 2012 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.
For and on behalf of the Board of Directors
S. S. Poddar
R. K. Sureka
DIRECTOR & CEO
PLACE : JAIPUR
DATE : 7th August, 2012