The Directors submit the 19th Annual Report along with the Audited
Statement of Accounts of the Company for the year ended March 31, 2013.
(Rs. In Lacs)
FINANCIAL RESULTS 2012-2013 2011-2012
Gross Income 7,569.21 6,110.02
Profit before Depreciation, Finance
Cost and Tax 596.91 520.38
Less : Depreciation 160.70 150.91
Less : Finance Cost 96.78 93.70
Profit/(Loss) before Taxation 339.43 275.77
Less : Current Tax 76.00 56.84
Profit /(Loss) after Tax 263.43 218.93
Add : Balance b/f from previous year 1,837.23 1,796.15
Balance available for appropriation 2,100.66 2,015.08
Balance c/f 2,100.66 2,015.08
Less : Proposed Dividend 110.00 110.00
Less: Dividend Tax 17.85 17.85
Less : General Reserve 50.00 50.00
Balance c/f to Balance Sheet 1,922.81 1,837.23
Based on the Company''s performance, the Directors are pleased to
recommend a dividend of Rs.1/- per Equity Share (last year Rs. 1/- per
Equity Share) for the financial year ended March 31, 2013 amounting to
Rs.127.85 lacs (inclusive of tax of Rs.17.85 lacs). The dividend pay
out ratio for the current year, inclusive of corporate tax on dividend
distribution, is at 48.53%. This Management had balance the dual
objectives of rewarding shareholders by dividends and retaining equally
for future growth.
TRANSFER TO RESERVES
The Company proposes to transfer Rs.50 lacs to the General Reserve out
of the amount available for appropriations and an amount of
Rs.1922.81lacs is proposed to be retained in the Profit and Loss
It was a challenging year for the Indian Economy due to higher
inflation, steady interest rate and allegation of corruptions in higher
places resulting into policy impediments to investment. The Global
environment too was not encouraging due to several European economies
experienced recession due to high unemployment, banking fragility,
fiscal tightening and sluggish growth. Amongst Asian economies, China
going through a political transition experienced considerably slow
growth etc. Despite these constraints and the challenging environment,
your Company performed reasonably well and delivered positive growth in
sales, however there is marginal decline in operating margins.
Your Company achieved higher net sales in moulded furniture segment of
Rs. 6,679.69 lacs as against Rs. 5,572.35 lacs in the last year. The
growth in sales is healthy at 20% in percentage terms. The exports were
higher at Rs.1,526.15 lacs as compared to Rs. 1,070.05 lacs in last
year. The growth in export too is very impressive at 43% in percentage
term. The moulded furniture division has earned its operating profit of
Rs. 137.10 lacs as against Rs. 397.83 lacs in last year due to
fluctuations in material prices and one time write off of Bad Debts of
Rs. 75.00 Lacs.
However the performance of ACP business has adversely impacted due to
continuous sluggish commercial real estate sector resulting into under
utilization of installed capacity. The sales of ACP division was at Rs.
436.56 lacs as compared to Rs. 464.71 lacs in last year and resulted
into a loss of Rs. 153.85 lacs before interest as compared to loss of
Rs. 101.32 lacs in last year. The Loss for the year partially
attributed to one time write off of Bad Debts of Rs. 115.00 lacs.
The main raw material for ACP division is Coated Aluminum Coil and
prices of the Aluminum are driven by global market and at present the
prices are within the reasonable range. The Company mainly sources, its
raw materials from China & other leading countries.
The far sighted vision of the Promoters of the Company paid rich
returns in the year under review and the Company had received a sum of
Rs. 475.00 lacs as maturities proceeds of Keyman Insurance policies.
These Policies were taken in the past and policy premium were spread
over initial 10 years.
Overall the Company''s performance is satisfactory and registered a
profit before tax of Rs. 339.43 lacs.
The Company has been awarded the 2nd Runner-up for the category Best
Focus Product Exporter'''' at the ECGC-D&B Indian Exporters'' Excellence
Due to sluggish world economies and overall weak global economic
sentiments, the Company has defer in plans to set up trading and
manufacturing base at UAE and decided to surrender license of its
subsidiary Prima Global (FZE), to the Licensing Authorities of RAK
SEZ Ras Al khaimah, UAE. The Company is under process to take necessary
approvals / compliance from Indian and UAE Authorities for
PERFORMANCE OF JOINT VENTURE
Prima Dee-lite Plastics Pvt. Ltd., Cameroon, a Joint Venture Company
manufacturing Moulded Articles and HDPE Woven Sack Bags. The total
turnover of JV Company for the calendar year 2012 was INR 3,267.20 lacs
as compared to previous calendar year of INR 1,855.70 lacs. The profit
for the year after depreciation and tax was INR 491.86 lacs as compared
to INR 357.31 lacs in the previous year.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Accounts form part of this Annual Report.
Pursuant to the provision of Section 212(8) of the Act, the Ministry of
Corporate Affairs vide its circular dated February 8, 2011 has granted
general exemption from attaching the Balance Sheet, Profit and Loss
Account and other documents of the Subsidiary Companies with Balance
Sheet of the Company. The annual accounts of these subsidiaries / Joint
Venture Companies and the related detailed information are available
for inspection by any member at the registered office of the Company.
The Company shall furnish a copy of details of annual accounts of
subsidiary /Joint Venture Company to any member on demand.
The Board of Directors at their meeting held on May 29, 2013 approved
the revision in terms of agreement and reappointed Shri Bhaskar M.
Parekh as Executive Chairman and Shri Dilip M. Parekh as Managing
Director for a period of 3 years with effect from July 01, 2013
Shri Mulchand S. Chheda retires by rotation and being eligible, offers
himself for reappointment at the ensuing Annual General Meeting. Brief
resume of Shri Mulchand S. Chheda, Shri Bhaskar M. Parekh and Shri
Dilip M. Parekh, nature of their experience are given in the section on
Notice elsewhere in the Annual Report.
DIRECTORS'' RESPONSIBILITY STATEMENT
As stipulated in Section 217(2AA) of the Companies Act, 1956, the Board
of Directors of the Company hereby state and confirm that:
I. In the preparation of the annual accounts for the year ended March
31, 2013, the applicable accounting standards read with requirements
set out under Schedule VI to the Companies Act,1956, have been followed
and there has been no material departure;
II. The Directors have selected such accounting policies and applied
them consistently and 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 at March 31, 2013 and of the profit of the Company
for the year ended on that date;
III. The Directors have taken proper and sufficient care to the best
of their knowledge and ability for the maintenance of adequate
accounting records in accordance with the provisions of the Companies
Act, 1956. They confirm that there are adequate system and control for
safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities.
IV. Directors have prepared the Annual Accounts on a going concern
AUDITORS & AUDITOR''S REPORT
M/s. G.P. Kapadia & Co., Chartered Accountants, Mumbai, Statutory
Auditors of the Company, holds office until the conclusion of the
ensuing Annual General Meeting and are eligible for reappointment.
The Company has received letter from them to the effect that their
reappointment, if made, would be within the limits prescribed under
Section 224(1B) of the Companies Act, 1956 and that they are not
disqualified for such reappointment within the meaning of the Section
226 of the said Act.
The observations made in the Auditors'' Report, read together with the
relevant notes thereon are self-explanatory and hence, do not call for
any comments under section 217 of the Companies Act, 1956.
PARTICULARS OF EMPLOYEES
The Company does not have any employee drawing remuneration as
stipulated under Section 217 (2A) of the Companies Act, 1956 read with
the Companies (Particulars of Employees) Rules, 1975.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
Additional information given as required under the Companies
(Disclosures of Particulars in the report of Board of Directors) Rules,
Energy conservation program is a ongoing process, the Company continues
to emphasize on energy conservation at the stage of selections of
plant, equipment to optimize energy consumption and by installing
necessary power saving equipments.
RESEARCH & DEVELOPMENT
The R& D activities carried out by the Company are directly working in
the supervision and guidance of the Managing Director. The Company has
been able to launch few new products in plastics in replacement of
conventional wood and also few new designs of chairs developed
internally. The Company has developed first time in India a Rocking
Chair and launching in this financial year for sale. The Company
further plans to develop and introduce new range of products in the
TECHNICAL ABSORPTION, ADAPTATION & INNOVATION
The Company has not imported any technology or processes know how. The
Machines and moulds used for manufacturing products are regularly
upgraded to cater variety products in line with the market trend and
demand. The new investments are made in new technology upgraded
machines & moulds.
As a result, the Company is able to give new & innovative designed
product and has created strong demand of its products in export market.
II. FOREIGN EXCHANGE EARNING AND OUTGO
1) Activities relating to exports, initiative taken to increase
exports; development of new exports market for products and services;
and export plans:- The Company''s key markets for international business
are the Africa, Middle East, and Latin America. The export products are
well established in the international market and the exports were
higher at Rs. 1,526.15 lacs as compared to Rs.1070.05 lacs in last
year. The growth in export too is very impressive at 43% in percentage
term due to repeated orders from its existing clients. The Company has
won 14 top export awards from PLEXCONCIL of India in last 16 years.
2) Total foreign exchange used and earned.
Foreign Exchange earned (FOB) –
(Finished Goods) 133,840,727 97,460,862
Foreign Exchange earned (Capital Goods) NIL 1,283,250
Foreign Exchange used 52,798,331 52,545,142
The Company has not accepted any Fixed Deposit covered under Section
58A of the Companies Act, 1956 from the Members or the Public during
The Report on Corporate Governance as stipulated under Clause 49 of the
Listing Agreement forms part of the Annual Report.
The requisite Certificate from the Auditors of the Company confirming
compliance with the conditions of Corporate Governance as stipulated
under the aforesaid Clause 49 is attached to this Report.
The Directors thank the Company''s customers, vendors, investors and
banks for their support to the Company.
The Directors also thanks the Governments of other countries,
Government of India, State Governments in India and concerned
Government Departments/Agencies for their co-operation.
Certain statements in the reports of the Board of Directors and
Management''s discussions and analysis may be forward looking statements
within the meaning of applicable securities laws and regulations.
Actual results could differ materially from those expressed or implied
since Company''s operations are influence by many external and internal
factors beyond the control of the Company. The Company assumes no
responsibility to publicly amend, modify or revise any of these
statements on the basis of any subsequent developments, information or
For and on behalf of the Board
Mumbai Bhaskar M. Parekh
May 29, 2013 Chairman