The Directors submit the 18lh Annual Report along with the Audited
Statement of Accounts of the Company for the year ende March 31, 2012.
(Rs. In Lacs)
FINANCIAL RESULTS 2011-2012 2010-2011
Gross Income 6,110.02 6,053.62
Profit before Depreciation, Finance Cost and Tax 520.38 558.43
Less : Depreciation 150.91 158.53
Less : Finance Cost 93.70 69.25
Profit/(Loss) before Taxation 275.77 330.65
Less : Current Tax 56.84 67.89
Profit /(Loss) after Tax 218.93 262.76
Add : Balance b/f from previous year 1,796.15 1,711.66
Balance available for appropriation 2,015.08 1,974.42
Balance c/f 2,015.08 1,974.42
Less : Proposed Dividend 110.00 110.00
Less: Dividend Tax 17.85 18.27
Less : General Reserve 50.00 50.00
Balance c/f to Balance Sheet 1,837.23 1,796.15
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 Shares) for the financial year ended March 31, 2012 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 58.40%. This Management had maintained the
consistency in dividend payout in-spite of plans to invest in new
manufacturing units / Joint Ventures. 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. 1837.23
lacs is proposed to be retained in the Profit and Loss Account.
The year under review was a challenging year for manufacturing
Industries in India due to multiple adverse conditions like high
inflations, high oil prices, lower economic growth, euro zone debt
crises 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 profits. Your
Company achieved higher net sales in moulded furniture segment of Rs.
5,572.35 lacs as against Rs. 5,247.48 lacs in the last year. The growth
in sales in percentage terms achieved is 6%. The Exports were higher at
Rs. 1070.05 lacs as compared to Rs. 870.46 lacs in last year. The
growth in export in percentage term achieved is 23%. The moulded
furniture division has earned higher profit before interest of Rs.
397.83 lacs as against Rs. 224.65 lacs in last year from its operation.
The Government of India has taken corrective steps by removing ''Anti
Dumping Duty'' on Polymers resulting into lower volatility in raw
material prices as compared to previous years and resulted in improved
margins of moulded furniture division.
However the performance of the Company has adversely impacted due to
lower Sales of ACP Division at Rs. 464.71 lacs as compared to Rs.646.48
lacs in last year and resulted into a loss of Rs. 101.32 lacs before
interest as compared to profits of Rs. 14.66 lacs in last year.
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.
Overall the Company''s performance is satisfactory and registered a
profit before tax of Rs. 275.77 lacs.
The Company has been awarded the ''Second Best Export Award'' from PLEX
Council of India for the exports for Financial Year 2009-10 & 2010-11.
Prima Global (FZE), a wholly owned subsidiary of the Company at
RAK SEZ Ras Al khaimah, UAE is taking steps to start trading in UAE
Countries and also looking to set up a manufacturing unit to cater the
UAE & other Countries.
PERFORMANCE OF JOINT VENTURE
Prima Dee-lite Plastics Pvt. Ltd., Cameroon, a Joint Venture Company
manufacturing Moulded Articles had diversified in to the business of
HDPE Woven Sack Bags and set up a manufacturing unit in adjacent
location with total investment of INR 1600.00 lacs. The Commercial
production was started from January 2012.
The total turnover of JV Company for Moulded Furniture division for the
calendar year 2011 was INR 1992.48 lacs as compared to previous
calendar year of INR 1432.32 lacs. The profit for the year after
depreciation and tax was INR 452.87 lacs as compared to INR 341.27 lacs
in the previous year.
The encouraging performance of Joint Venture Company has boosted the
confidence of both the Joint Venture Partners and initiatives have been
taken to explore neighboring countries to set up distribution network
for Moulded Furniture Articles.
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.
Shri Krishnakant V. Chitalia retires by rotation and being eligible,
offers himself for reappointment at the ensuing Annual General Meeting.
Brief resume of Shri Krishnakant V. Chitalia and nature of his
experience is given in the Section on Notice elsewhere in the Annual
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, 2012, 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, 2012 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.R 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(1 B) 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,
A number of energy conservation techniques were initiated and energy
was used more efficiently. Efficient maintenance and daily monitoring
has resulted in lower consumption of power and there by lowered the
cost of production. 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 dedicated to the
development if new product, new design of chairs for better comfort and
attractive colour and modern look. The designed department is directly
working in the supervision and guidance of the Managing Director. The
Company has been able to launch several new designs of chairs and other
articles. The Company has developed first time in India a moulded
computer table and launching in this financial year for sale. The
Company further plans to develop and introduce new range of products in
the current year.
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 Exports products are well
established in the international market and the Exports were higher at
Rs. 1070.05 lacs as compared to Rs.870.46 lacs in last year. The''
growth in export in percentage term achieved is 22.93% 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) 97,460,862 77,849,953
Foreign Exchange earned (Capital Goods) 1,283,250 NIL
Foreign Exchange used 52,545,142 69,285,899
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 events.
For and on behalf of the Board
Mumbai, Bhaskar M Parekh
May 28, 2012 Chairman