Prima Plastics Directors Report, Prima Plastics Reports by Directors
Prima Plastics
BSE: 530589|ISIN: INE573B01016|SECTOR: Plastics
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Prima Plastics is not listed on NSE
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Directors Report Year End : Mar '14    « Mar 13
Dear Shareholders,
 The Directors submit the 20th Annual Report along with the Audited
 Statement of Accounts of the Company for the year ended March 31, 2014.
                                                           (Rs. In Lacs)
 FINANCIAL RESULTS                                2013-2014    2012-2013
 Gross Income                                      8,029.16     7,569.21
 Profit before Depreciation, Finance Cost and Tax    684.70       596.91
 Less : Depreciation                                 163.76       160.70
 Less : Finance Cost                                 113.61        96.78
 Profit before Taxation                              407.33       339.43
 Less : Current Tax                                   88.44        76.00
 Profit after Tax                                    318.89       263.43
 Add : Balance b/f from previous year              1,922.81     1,837.23
 Balance available for appropriation               2,241.70     2,100.66
 Appropriation :
 Balance c/f                                       2,241.70     2,100.66
 Less : Proposed Dividend                            110.00       110.00
 Less: Dividend Tax                                   18.70        17.85
 Less : General Reserve                               50.00        50.00
 Balance c/f to Balance Sheet                      2,063.00     1,922.81
 The Global environment was not encouraging due to continuous recession
 in several European economies, persistent problem of unemployment,
 banking fragility and fiscal tightening, China experienced considerably
 slow growth and the entire Indian industries too were facing policy
 paralysis, despite these constraints and the challenging environment,
 your Company performed reasonably well and delivered positive growth in
 sales. The highlights of the company''s performance are as under:
 * PBDIT increased by 14.70% at Rs. 684.70 lacs
 * Turnover of moulded furniture division increased by 9% to Rs.7,287.61
 * Exports increased by 22% to Rs.1,863.62 lacs.
 * Operating revenue of moulded furniture division increased from
 Rs.137.10 to Rs.581.58 lacs.
 * Turnover of ACP division increased from Rs.436.56 lacs to Rs.623.96
 The performance of ACP business has slowly improving due to focusing on
 retail business. However commercial real estate sector had remained
 sluggish in the last year resulting into under utilization of installed
 capacity. 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. 407.33 lacs.
 Your Directors have recommended a dividend of Rs.1/- per equity share
 (last year Rs.1/- per equity share) for the financial year ended March
 31, 2014, amounting to Rs.128.70 lacs (inclusive of tax of Rs.18.70
 lacs). The dividend payout is subject to approval of members at the
 ensuing Annual General Meeting.
 The dividend will be paid to members whose names appear in the Register
 of Members as on September 12, 2014; in respect of shares held in
 dematerialized form, it will be paid to members whose names are
 furnished by National Securities Depository Limited and Central
 Depository Services (India) Limited, as beneficial owners as on that
 The dividend payout for the year under review has been formulated in
 accordance with shareholders'' aspirations and the Company''s policy to
 pay sustainable dividend linked to long term growth objectives of the
 Company to be met by internal cash accruals.
 The Company proposes to transfer Rs.50.00 lacs to the General Reserve
 out of the amount available for appropriations and an amount of
 Rs.2,063.00 lacs is proposed to be retained in the Profit and Loss
 The Company has bagged the Top Export Award from Plex Council of
 India for the Financial Year 2011-12 & 2012-13.
 Prima Dee-lite Plastics Pvt. Ltd., Cameroon is a Joint Venture Company
 manufacturing Moulded Articles and HDPE Woven Sack Bags. The total
 turnover of JV Company for the calendar year 2013 was INR 4,724.71 lacs
 as compared to previous calendar year of INR 3,267.20 lacs. The profit
 for the year after depreciation and tax was INR 873.70 lacs as compared
 to INR 491.86 lacs in the previous year.
 In accordance with the Accounting Standard (AS) - 21 on Consolidated
 Financial Statements read with AS - 27 on Financial Reporting of
 Interests in Joint Ventures, the audited consolidated financial
 statement is provided in the Annual Report.
 Shri Bhaskar M. Parekh (DIN - 00166520) retires by rotation and being
 eligible, offers himself for reappointment at the ensuing Annual
 General Meeting. Pursuant to the applicable provisions of Section 149,
 150, 152, 161 and other applicable provisions of the Companies Act,
 2013 and rules made there under, the Board has received the proposal
 from members of the Company for appointment of Independent Directors
 for 5 years. Shri Bhaskar M. Parekh and Shri Dilip M. Parekh were
 re-appointed as Executive Chairman and Managing Director & KMP
 respectively as per the requirement of new Companies Act, 2013. Brief
 resume of Shri Bhaskar M. Parekh (DIN - 00166520), Shri Dilip M. Parekh
 (DIN - 00166385), Shri Mulchand S. Chheda (DIN - 00179932), Shri
 Krishnakant V. Chitalia (DIN - 00443945), Shri Rasiklal M. Doshi (DIN -
 00239580) nature of his experience are given in the section on Notice
 elsewhere in the Annual Report.
 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, 2014, 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, 2014 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
 M/s. G.P. Kapadia & Co., Chartered Accountants, Mumbai bearing ICAI
 Registration (104768W) are proposed to be appointed as Auditors of the
 Company from the conclusion of ensuing Annual General Meeting till the
 conclusion of the 23rd Annual General Meeting of the Company held
 thereafter, subject to ratification of the appointment by the members
 at every AGM held after the ensuing AGM.
 As required under Section 139 of the Companies Act, 2013, the Company
 has obtained a written consent from M/s. G.P. Kapadia & Co., to such
 appointment and also a certificate to the effect that their
 appointment, if made, would be in accordance with Section 139(1) of the
 Companies Act, 2013 and the rules made there under, as may be
 The Auditors'' Report to the members on the Accounts of the Company for
 the financial year ended March 31, 2014 does not contain any
 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.
 Additional information given as required under the Companies
 (Disclosures of Particulars in the report of Board of Directors) Rules,
 Energy conservation program is an 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.
 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 further plans to develop and introduce new
 range of products in the current year.
 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.
 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.1,863.62 lacs as compared to Rs.1,526.15 lacs in last year. The
 growth in export too is very impressive at 22% in percentage term due
 to repeated orders from its existing clients.
 The Company has not accepted any Fixed Deposit covered from the Members
 or the Public during the year.
 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
 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
                                      Bhaskar M Parekh (DIN - 00166520)
 August 13, 2014
Source : Dion Global Solutions Limited
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