The directors have pleasure in presenting the 18th Annual Report on
the business and operations of your Company together with the Audited
Statement of Financial Statements for the year ended March 31, 2012:
PARTICULARS Year ended Year ended
March 31 2012 March 31 2011
Rs. in Crores Rs. in Crores
Gross Turnover Including other income 187.78 159.19
Profit before Interest, Depreciation
and Tax 22.52 18.41
Less: Interest and financial charges 15.13 10.74
Depreciation 4.30 3.02
Profit Before Tax 3.09 4.65
Less: Exceptional Items - -
Provision for Current & Old Tax 0.29 1.23
Provision for Deferred Tax 0.60 1.38
Net Profit available for appropriation 2.21 2.04
Add: Profit Transfer From Last Year 9.49 10.68
Dividend on equity shares - -
Dividend Distribution Tax - -
Balance Carried Forward to Balance Sheet 11.70 12.72
PERFORMANCE AND BUSINESS OPERATIONS
The company has achieved modest growth in terms of sales and production
in the year gone by. Indian Economy was able to show growth of about 7%
during the year under challenging global and domestic environment. The
government''s policy and focus on the agriculture and irrigation with
greater allocation of Plan funds augurs well for your Company. Your
Company''s products are sold across the length and breadth of India
through the Company''s wide dealer network.
For the fiscal year 2011 -12, the sales of your Company grew by 17.96%
to Rs. 187.78 Crores as compared with that of previous year at Rs.
We are happy to inform you that due to continuous increase in the
demand for the Company''s products across the length and breadth of
the country, the Company has increased its capacity from 30,093 MT. to
33,981 M.T. showing an increase of 13 %. Further we are happy to
inform you that during the year under review your Company was able to
utilize its capacity to the tune of 18,785 MT which is approx. 55% of
the capacity as at the end of the last year. The lesser capacity
utilization is due to size change, mould change, sales order of higher
dimensions and frequent power cuts.
The EBIDT (Earning before Interest, Depreciation and Tax) of the
company has increased from Rs 18.41 Crores to Rs 22.52 Crores, which
shows a increase of 22.32%.
However, this year saw significant material cost inflation in the
second half, driven primarily by spiraling crude oil prices. Prices of
Resin and Granules, which constitute 75% of our Material Cost Base,
were adversely impacted. However, your Company continues to strive for
operating cost optimization through a series of initiatives in product
mix rationalization, vendor development and factory technological
Resultantly, Profit before tax during 2011 -12 was Rs.3.09 Crores as
compared to Rs.4.65 Crores during 2010-11, which shows a decrease of
33.55%. The decrease was mainly due to higher interest rates,
inflation, additional discounts to dealers for price competition and
firm commodity prices and increase in the stock, particularly micro
irrigation system and drip irrigation which is to be sold in the first
quarter of 2012-13 and accordingly benefit will accrue at that time.
Moreover, the cost of transportation has also increased due to increase
in the fuel prices.
With a view to expand its business in Gulf Countries, the Company has
promoted a wholly owned subsidiary, Tulsi International (FZE) which is
incorporated in Hamriyah Free Zone at Dubai, UAE. However, during the
fiscal year 2011-12 no business operations have been carried out.
However, having regard to the provisions of Section 219( 1 )(b)(iv) of
the Companies Act, 1956, the Annual Report excluding the information on
Consolidated books of account is being sent to all the Members of the
Company and others entitled thereto. Any member interested in obtaining
such particulars may write to the Compliance Officer at the Registered
Office of the Company
Seeing towards the wide market in Pipe Industry, company is planning to
expand its business by relocating its factories, accompanying with
machines of latest technology and exploring itself with new varities of
goods like chairs, Furniture and brass fitting.
Present Status of Project
- Till date the company has already purchased land measuring
approximately 67.71 Acers at Pahur, Nasirabad and Jalgaon
- The company is planning is to acquire plant & machinery of latest
technology from various giants of Technology and it has already placed
order for it.
- Construction and related Civil has been commenced.
- The company is targeting to start commercial production by January
The Board does not recommend any dividend for the year ended March
The Company during the year under review has not accepted any deposits
from Public under the Companies (Acceptance of Deposits) Rules 1975.
The Company had no unclaimed (overdue) deposits as on March 31,2012.
The Fixed Assets and Stocks of the Company are adequately insured.
MANAGEMENT''S DISCUSSION & ANALYSIS REPORT
A detailed review of the progress of the Project and the future outlook
of the Company and its business, as stipulated under Clause 49 of the
Listing Agreement with the Stock Exchanges, is presented in a separate
section forming part of the Annual Report.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
Information on conservation of energy, technology absorption, foreign
exchange earnings and outgo required to be given pursuant to Section
217(1 )(e) of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of the Board of Directors)
Rules, 1988 is as per Annexure - A hereto and forms part of this
In accordance with the requirements of the Companies Act, 1956 and the
Company''s Articles of Association, Mr. Jaiprakash B Kabra and Mr.
Omprakash B Jhavar retires by rotation at the Annual General Meeting
and being eligible offer themselves for reappointment.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) the Directors to the
best of their knowledge and belief confirm that:
i. In the preparation of the annual accounts, the applicable
accounting standards have been followed;
ii. Appropriate accounting policies have been selected and applied
consistently and have 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 as at March 31,2012 and of the Profit and Loss Account
for the year ended March 31,2012;
iii. Proper and sufficient care has been taken 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. The annual accounts have been prepared on a going concern basis.
Information as required under the Companies (Particulars of Employees)
Rules, 1975 read along with section 217(2A) of the Companies Act, 1956,
as amended, are not applicable to the company and hence not provided.
Your Company has adequate internal audit system commensurate with the
size of our industry and is carried out by M/s Badale Mahale Lanke &
Co., M/s Raj kumar Kothari &Co. and M/s U. K. Rathi & Co. Chartered
M/s K.K. Kabra & Co., Chartered Accountants, Statutory Auditors of the
Company retires at the conclusion of the ensuing Annual General
Meeting. The Company has received a certificate from them to the effect
that their appointment, if made, would be within the limits prescribed
under Section 224(1 -B) of the Companies Act, 1956. Accordingly, they
are proposed to be re-appointed as Statutory Auditors of the Company
for the year 2012-13.
Your Company is committed to maintain the highest standards of
Corporate Governance. Your Directors adhere to the stipulations set out
in the Listing Agreement with the Stock Exchanges.
A report on Corporate Governance as stipulated under Clause 49 of the
Listing Agreement with the Stock Exchanges forms part of the Annual
Certificate from Mr. Milan Mehta, Practicing Company Secretary
confirming compliance of conditions of Corporate Governance as
stipulated under the aforesaid Clause 49, is annexed to Corporate
Attached herewith please find a copy of the Corporate Governance Report
for the period ended March 31,2012.
CORPORATE SOCIAL RESPONSIBILITY
As a responsible corporate citizen, your Company is constantly
extending its support in areas of education, health, environment,
sports and community welfare directly as well as through various
independent agencies, engaged in charitable activities with special
attention on the villages around company''s manufacturing plant at
Jalgaon. The company has always lived by its philosophy of Samridh
kisan desh ki shaan and Let''s nurture the green era… and
believes in living every moment of life in harmony with nature to
create value for ourselves, our stakeholders and the society.
Unlike rushing for new and leaving old, company has maintained kiosk
for supply of drinking water (Panpoi), in the city and in MIDC area of
Jalgaon. To promote the concept of water conservation, the Company had
participated in a project for roof water harvesting in collaboration
with the Rotary Club of Jalgaon. A water harvesting system was also
installed at Jalgaon at the S.P. Office as a part of the water
conservation initiatives taken by the Company.
In addition of organizing blood donation camp in the factory premises
,your Company has also organized Medical health check up and Safety
program for its employees striving the idea of Health is wealth.
In continuation with previous year, company made farmers aware about
the novel and improved farming techniques which help them in better
yield giving farming, through magazine published by the company,
Tulsi Patra and also circulate the method which has benefitted a
farmer among the others. It also gives details about the monsoon crops
and solved farmer''s queries on varied topics. Company''s CEO, Mr.
Sanjay Kumar Taparia preached moral values and rich culture of our
country through his blog in the aforesaid magazine Tulsi Patra
In the wake of conservation of drinkable and potable water, the company
has assisted various water supply schemes in rural areas in association
with local Zila Parishads and has taken initiative to encourage locals
about the importance of water and various tools like roof water
harvesting to preserve water resources.
Your Company, in association with Sudharma, a welfare society
trust, has arranged for school bags, note books, clothes etc. for
around 125 children whose families are unable to bear the cost of same.
Also, it has arranged for foot wears and clothes for people located in
the vicinity of the Company''s manufacturing plant at Jalgaon.
The management has also continued with training programmes to the
farmers and plumbers. Also, your Company continues to participate in
tree plantation programme and is actively taking participation by
associating itself with various local NGO''s and Government bodies.
Your Company continued to assist community in its social, spiritual,
cultural and religious pursuits by rendering necessary help in monetary
and other terms irrespective of caste, creed or religion for holding
festivals, exhibitions, repairing religious shrines etc.
The Board of Directors place their sincere thanks to the Government,
local authorities, Bankers, customers, suppliers, esteemed shareholders
and business associates of the Company for their encouragement,
co-operation, support and confidence.
The Directors further express their deep appreciation to all employees
for commendable teamwork, high degree of professionalism and
enthusiastic effort displayed by them during year.
By Order of the Board
Registered Office: Pradip J. Mundhra Sanjay R. Taparia
N-99, MIDC Area, Managing Director Executive Director
Dated: September 03, 2012