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Polycon International Directors Report, Polycon Intl Reports by Directors
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Polycon International
BSE: 531397|ISIN: INE262C01014|SECTOR: Plastics
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Directors Report Year End : Mar '14    « Mar 13
The Members,
 
 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
                                               2013-2014     2012-2013
 
 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.
 
 DIVIDEND :
 
 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.
 
 Opportunity :
 
 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.
 
 Outlook :
 
 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
 statutory auditors.
 
 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
 and regulations.
 
 Timely prepares records, reports, minutes and other financial and
 statutory documents.
 
 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.
 
 DIRECTORS :
 
 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
 Meeting.
 
 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.
 
 AUDITORS :
 
 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 guptag@polycon.in
 
 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.
 
 ACKNOWLEDGEMENT :-
 
 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
                                                                DIRECTOR
Source : Dion Global Solutions Limited
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