The Board of Directors have pleasure in presenting the 28th Annual
Report on the business operations of your Company together with Audited
Financial Accounts for the year ended March 31, 2012.
FINANCIAL RESULTS : (Rs. in Lacs)
Particulars Year ending Year ending
Revenue from operations (net) 8308.98 8192.28
Operating Profit (PBIDT) 483.26 704.82
Finance Cost 122.88 80.28
Depreciation 217.95 225.68
Profit before Tax 142.43 398.86
Taxes 25.67 130.56
Profit after Tax 116.76 268.30
Balance of Profit brought forward 843.13 678.87
Amount available for appropriations 959.89 947.17
Transfer to General Reserve 15.00 15.00
Dividend on Equity Shares 0.00 76.61
Dividend Tax on Equity Shares 0.00 12.43
Balance carried forward to Balance Sheet 944.89 843.13
Total 959.89 947.17
EPS (Basic & Diluted) 1.52 3.50
(Previous Year''s figure have been recast, reclassified and regrouped
wherever necessary to make them comparable with the figures of the
During the year the Company has achieved marginal improvement in
turnover. However it witnessed decline in operating Profit. The
Turnover increased to Rs. 8308.98 Lacs from Rs. 8192.28 lacs - a growth
of 1.42% and the Net Profit after tax declined to Rs. 116.76 lacs from
Rs. 268.30 lacs in the previous year - a decline of 56.48% mainly due
to fluctuations in Raw-materials prices (crude base), increase in Power
& fuel, Manpower cost and uncertainty in global markets.
The export (FOB value) have however increased to Rs. 144.10 Lacs from
Rs. 82.84 Lacs in the previous year.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Management''s Discussion and Analysis Report for the year under
review, as stipulated under Clause 49 of the Listing Agreement with the
Mumbai Stock Exchange, is presented in a separate section forming part
of the Annual Report.
THRUST ON HIGHER VALUE ADDITION CONTINUES: -
Your Company shall always continue its endeavor in Value Addition and
Innovation drive. As a result our R&D Department remains actively
engaged in fulfilling this objective by constantly developing new
shades and proving our strength in terms of versatility in dyeing and
Since the Company operates only in one segment as the Manufacturer of
Polyester Dyed Yarn and Processors of Cotton and other fancy Dyed Yarn,
no further analysis is required and the operational results are
mentioned elsewhere in this report.
Your Company has insured its assets and all its operations against all
insurable risk including fire, earthquake, flood etc. as part of its
overall risk management strategy.
Indicating our commitments to meeting the global quality and
international standards your Company has successfully completed its
surveillance audit for the ISO 9001-2008 Certification from AGSI
Certification Pvt. Ltd.
During the year the company has implemented substantial expansion by
setting up a new unit at Silli Village, Union Territory, D. & N. H. The
Company has incurred the CAPEX of Rs. 804.69 Lacs (approx) against the
envisaged project cost of Rs. 1504 lacs.
The Company has accepted deposit from the Promoters, their relatives,
friends and associates for the expansion of Silli Unit.
Your Company is exploring new avenues to increase the export base and
has chalked out strategic growth plan for the potential market in
Middle East, U K, Egypt, Mexico and other European markets.
The Board of Directors have decided to skip the Dividend for the
Financial Year 2011-12 in order to augment the resources for ongoing
Last year the company had paid equity dividend @ 10% i.e. Re. 1 per
Equity Share of Rs. 76.61 Lacs and Rs.12.43 Lacs as dividend tax there
on for the Financial Year 2010-11.
TRANSFER TO RESERVES:
The Company has transferred Rs. 15 lacs to General Reserve.
Provision for Current Taxation has been made in accordance with
prevailing income-tax laws for the relevant Assessment year.
Provision is made for Deferred Tax to account for the timing
TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:
The information as prescribed under Section 217(1 )(e) of the Companies
Act, 1956 read with Rule 2 of the Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules, 1988 is given in Annexure I
and forms part of this Report.
There are no employees of your Company who comes within the purview of
Section 217 (2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975 during the year under review.
Shri Surendra Kumar Suri, Non Executive Independent Director retires by
rotation and being eligible, offers himself for re-appointment.
DIRECTORS'' RESPONSIBILITY STATEMENT:
Pursuant to the requirement under Section 217 (2AA) of the Companies
Act, 1956 with respect to Directors'' Responsibility Statement, it is
hereby confirmed that:
(i) in the preparation of the annual accounts for the financial year
ended March 31, 2012, all the applicable accounting standards have been
followed along with proper explanation relating to material departures.
(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 said period;
(iii) the Directors 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
(iv) the Directors have prepared the accounts for the financial year
ended March 31, 2012 on a ''going concern'' basis.
The Company has taken adequate steps to ensure that the conditions of
Corporate Governance as stipulated in clause 49 of the Listing
Agreement of the Stock Exchange are complied with. A separate section
on Corporate Governance forms part of the Annual Report. A certificate
from the Practicing Company Secretary regarding compliance of
conditions of Corporate Governance as stipulated under clause 49 of the
Listing Agreement is given in Annexure.
The remarks in the Auditors'' Report have been properly dealt with in
the Notes on Account, which are self explanatory.
M/s. Mehta Chokshi & Shah, Chartered Accountants, will retire as
Auditors of the Company at the conclusion of the Annual General Meeting
and are eligible for re-appointment. The company has received letter
from them to the effect that their appointment, if made would be with
in the prescribed limit under section 224 (1B) of the Company''s Act
The relationship with employees, suppliers and customers across the
Company are cordial.
Your Directors thank our customers, bankers and suppliers for their
continued support during the year. Your Company places on record a deep
sense of appreciation of the contribution made by the staff and workers
at all levels. Our consistent growth was made possible by their hard
work, solidarity, co-operation and support.
For and On behalf of the Board
Suresh N. Mutreja
Place: Mumbai Chairman & Managing Director
Date: 13 August,2012