The Directors have the pleasure of presenting the 23rd Annual Report
of the company together with Audited Accounts and Cash Flow Statement
for the financial year ended 31 st March, 2014.
REVIEW OF OPERATIONS
Your company has effectively utilized its capacity and has recorded net
sales of Rs. 4405.51 lacs against Rs. 3947.49 lacs in the previous
financial year and registered an overall increases of 11.60 %.
FINANCIAL RESULTS :
The financial results for the year ended 31st March, 2014 are
summarized below :
Amount Rs. In lacs
Net Sales Turnover 4405.51 3947.49
Gross Profit before Interest
and Depreciation 395.57 323.76
Less : Interest 248.75 185.30
Less : Depreciation 108.71 123.39
Profit/(Loss) for the year 38.11 15.07
Less : Provision for Taxation 11.10 6.30
Profit/(Loss) after Taxation 27.00 8.77
Add: Balance brought forward
from Previous Year 82.03 73.26
Balance carried to the
Balance Sheet 109.03 82.03
CORPORATE DEVELOPMENTS / GROWTH & EXPANSION :
All the units of the company are running well, but unfortunately, a
fire has occurred in Kanota Unit on 01.02.2014, thereby causing damage
to the fixed assets & Stock of the Company.
With the continuous research and development, understanding the
customer needs and preferences for design and quality remained another
focus area. Improvement of overall product performance by implementing
the planned strategies, bringing in new developments and product
improvements based on consumer research have helped your company to
achieve an unprecedented performance during the year under review. The
improved performance of your company over the last few years is a
testimony to the fact that the company is moving in the right direction
and has adopted the right model of doing its business.
In view of marginal profits, the Board of Directors does not recommend
payment of Dividend for the year under review.
MANAGEMENT DISCUSSION AND ANALYSIS Industry Structure & Development
As the wooden and glass items are being substituted by plastic items,
manufacturing of plastic products have also
increased. Your company has been focusing on satisfying the customers
by supplying the quality products well in time. This will bring your
company in sync with the requirements of buyers and in turn, will bring
great profits and values to its stakeholders.
According to a study on plastics industry by Plast India Foundation
increasing usage of plastics in automobiles, consumer packaging and
impact of increased infrastructure spending, the plastics industry is
expected to continue double-digit growth beyond 2016-17. The industry
grew by 13 per cent annually in last five years and expected to
continue double-digit growth beyond 2016-17. Your company is quick in
realizing the latest trends and opportunities in the industry and has
been in sync with the latest happenings in the market.
Polycon International Limited is continuously working over its capacity
and effectiveness to increase its production and aims to provide better
quality products to its consumers along with making strong position in
domestic market. Threats :
- Cut-throat competition from the new entrants in the market, thereby
squeezing the Company''s profit margins.
- Price volatility of key raw material and fuel.
- Uncertainty in the economic environment.
- Unavailability of skilled manpower.
- Threat of substitutes.
The company''s business activity falls within a single primary business
segment viz. ''Plastic item'' in India hence the disclosure requirement
of Accounting standard-17 Segment Reporting are not applicable.
Your company is constantly striving to provide quality products and is
looking forward to use improvised technology and innovative methods to
increase its sales. Your company''s endeavour to provide high quality
products aiming to grant full value of money to the customer, expected
to place in light of its refreshed mission and vision and clear
strategic framework. Your Company will seize the opportunities and face
the challenges prevailing in the industry and is confident to remain
the market leader in the organized plastic industry.
Risks and Concerns :
In the normal course of business, the Company is exposed to external
risks such as overall demand fluctuation in the market segment in which
it operates reduction in relative market share for its products due to
the impact of competition as well as internal risks such as limited
product range, variation in operational efficiency and cost structure.
The company is also exposed the financial risk in the form of interest
rate variation. The Company is taking appropriate steps to guard itself
against these identified risks.
In order to overcome such situations company is fully devoted in the
preparation of appropriate programmes, adoption of suitable policies
and to take corrective and precautionary measures for safeguarding the
company''s market position and further to strengthening it.
Corporate Social Responsibility :
As a part of the Corporate Social Responsibility plan, your company has
been emphasizing on eco-friendly packaging solutions, that is, keeping
in mind the economy as well as the environmental friendliness. Your
company contributes to a healthy corporate culture in our country.
Adequacy of Internal Control System :
Your Company has adequate system of internal controls commensurate with
its size and scale of operation, to ensure that all the assets of the
Company are safeguarded and protected and that all the transactions are
authorized, recorded and reported appropriately. The annual internal
audit plan and internal audit reports are also shared with the
Your company adheres to the following internal control system :-
Properly conducts Board and general meetings
Records data discussed during the meeting in proper manner.
Properly constitutes committees in compliance with the acts, rules
Timely prepares records, reports, minutes and other financial and
It ensures that every employee of the Company is heard, in which
decisive and standard reporting structure help the management to reach
to all the classes of employees.
Discussion of financial Performance :
Your Company''s net turnover for the year ended March 31, 2014 is Rs.
4405.51 lacs. The Profit before interest, depreciation and tax is Rs.
395.57 lacs. However, profit after tax is Rs. 27.00 lacs.
Your Company is engaged in the manufacturing of plastic containers
since 1991 and the income also derived from the sale of these products.
Your Company is hopeful of sustaining its performance through
calibrated steps. Your directors are confident of the long-term
business prospects of the Company.
Human Resources Development/Training :
Your company believes that Employees are its main strength.
Accordingly your Company places people in the heart of its business
strategy. Your Company is attracting and retaining the best people,
creating a culture and environment where people are able to deliver
their best and they are recognized and encouraged.
Your Company upholds the culture of trust and mutual respect in all its
employees'' relations endeavors. Your company has ensured that there is
sustained communication and engagement with workforce through various
forums. Company''s human resources are mobilized to strengthen the
company internally and to face future challenges. Your
company is providing a state of art working environment to the
employees with a view to optimize their performance.
Employment Profile & Industrial Relations :
As on 31st March, 2014, the Company employed a total of 169 employees
of which 13 were Officers and 156 belongs to non-executive cadre.
POLYCON International Ltd. believes in building teams across the
business and functions with the aim to share knowledge and experience.
Cross functional teams work with clear objectives to solve the issues
and create value for the company. The company fosters open dialogue
among the employees with the brief that the people, who communicate
continuously and openly, build trust and mutual respect.
CAUTIONARY STATEMENT :
Some statements in this management discussion and analysis describing
the Company''s objectives, projections, estimate, and expectations may
be forward looking statement within the meaning of applicable laws
and regulations. These Statements are likely to address the company''s
growth strategy, financial results etc.
Actual results would differ substantially or materially from those
expressed or implied. Important factors that could affect the company''s
operations include domestic and international economic conditions in
the industry, significant changes in political and economic environment
in India, changes in government regulations, tax regimes, litigation,
labour relation and other statutes.
CAPITAL STRUCTURE :
The authorized share capital of the Company is Rs. 750 Lacs divided in
75 lacs Equity Shares of Rs. 10 each.
DEPOSITORY SYSTEM :
The ISIN No. allotted to the Company is INE262C01014. The Company has
also established the required connectivity with both the NSDL & CDSL
through its registrar and share transfer agent Link In-time India Pvt.
Ltd., Delhi for both physical and demat segments.
The equity shares of the Company can be held in electronic form with
any depository participant (DP) with whom the Members/Investors have
their depository account.
In terms of provisions of the Companies Act, 2013 and the articles of
association of the company Shri Rajiv Baid Executive Director of the
Company retires by rotation at the ensuing Annual General Meeting and
being eligible offer himself for re-appointment. The Board recommended
his re- appointment.
Pursuant to Section 149, 152 and other applicable provisions of the
Companies Act, 2013 your Directors are seeking appointment of Smt.
Tiyana Sacheti, Shri. Kamal Bordia and Shri Adarsh Singhania as
independent Directors for the term given in the Notice of ensuing
Annual General meeting. Details of the proposal for appointment of
above Independent Directors are mentioned in the Explanatory Statement
under Section 102 of the Act to the notice of Annual General Meeting.
A brief resume of expertise and details of other directorship of these
directors is attached along with Notice of the ensuing Annual General
PUBLIC DEPOSITS :
Your Company has not accepted any Public Deposits. DIRECTORS''
RESPONSIBILITY STATEMENT :
Pursuant to requirement under section 217 (2AA) of the Companies Act,
1956 and in respect of the annual accounts for the period under review
your Directors hereby confirm that :-
i) In the preparation of the annual accounts, the applicable accounting
standards have been followed and no material departures have been made
from the same;
ii) Directors of the company selected such accounting policies and
applied them consistently and made judgment and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and the
Profit & Loss Account for the period under review;
iii) They have taken proper and sufficient care for 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 irregularities;
iv) They have prepared the annual accounts on a going concern basis.
M/s. A. Natani & Co., Chartered Accountants, retire at the forthcoming
Annual General Meeting and being eligible, offer themselves for
re-appointment. The Company has received the Letter from them that
their re-appointment, if made, would be within the limits prescribed
under section 141 (3)(g) of the Companies Act, 2013 and that they are
not disqualified for re- appointment with the meaning of Section 141 of
the said Act.
COMPLIANCE OFFICER :
CS Gajanand Gupta, Finance Controller and Company Secretary is looking
after all compliances under various laws and can be contacted for any
investor related matter relating to the company. His contact No:
0141-2363048/2363049 and e-mail ID is email@example.com
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
A. CONSERVATION OF ENERGY :-
Polycon International Limited is committed to follow high standards of
environmental protection and provisions of a safe and healthy work
place for workers, customers and other stakeholders.
Your company is striving continuously to conserve energy by adopting
innovative measures to reduce wastage and optimize consumption. The
manufacturing units of the company are well planned and adequately
equipped for ensuring optimum energy utilization. Positive impact of
measures already taken has been observed on the costs.
B. TECHNOLOGY ABSORPTION :-
Your company is committed to providing consumers with high quality
products. The technology that is being used by your company is
eco-friendly that conserves the environment. All the units of the
company are well furnished with suitable equipments and self sufficient
in the matter of manufacturing process and focus is to stay aligned
with the best and continuously increase efficiency. We proactively and
continuously invest in developing technology which adds value to our
business. Sustained delivery has ensured that your company''s products
are trusted by consumers. During the year your company continued its
focus on driving the quality culture and total productivity management
across the factories.
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 as amended, regarding Employees : NIL CORPORATE GOVERNANCE
As required under clause 49 of Listing Agreement with the stock
exchange, Corporate Governance Report is forms part of this report.
Your company is in full compliance with the requirements and disclosure
that have to be make in this regard. A certificate from the Statutory
Auditors of the company confirming compliance of the corporate
governance is appended to the report on corporate governance.
The Board of Directors would like to thank Rajasthan Financial
Corporation, Indian Overseas Bank and all Government authorities and
Trade Associations for their continued support and also appreciate the
contribution made by the employees at all levels for their hard work,
dedication co-operation and support for the growth of the company.
Your Company continued to receive co-operation & unstinted support from
the customers, vendors, investors and trading partners. The Directors
wish to place on record their appreciation for the same and your
company will continue in endeavour to build and nurture strong links
with trade, based on mutuality, respect and cooperation with each other
and consistent with consumer interests.
For and on behalf of the Board
Place : Jaipur CA L.C. BAID
Date : 30.05.2014 CHAIRMAN & MANAGING