Your Directors have pleasure in presenting the 26th Annual Report
together with the Audited Statement of Accounts of the Company for the
financial year ended on March 31,2015.
(Rs. In Lacs)
PARTICULAR Year ended Year ended
Gross Sales 772.80 2716.92
Industrial Park Revenue 1050.00 425.00
Other Income 8.47 18.81
Profit Before Depreciation and Tax 33.97 63.03
Less: Depreciation 30.29 49.38
Profit Before Tax 3.87 13.65
Sundry credit balance written off/(back) (0.20) 1.21
Provision for MAT 0.74 2.37
Provision for deferred Tax (38.32) 2.18
Profit after Tax 41.45 7.89
Proposed Dividend Nil Nil
Dividend Distribution Tax Nil Nil
Balance carried forward to Balance Sheet 41.45 7.89
The Balance in Profit & Loss Account for the year is Rs. 41.45 Lacs
(Previous year Rs. 07.89 Lacs). Balance of Rs.1254.56 Lacs (Previous
Year Rs. 1246.67 Lacs) is carried to Balance Sheet under the head
1. PERFORMANCE FOR THE FINANCIAL YEAR 2014-2015
The company has achieved a turnover of Rs. 772.80 Lacs for the year
ended March 31,2015 as against Rs 2716.92 Lacs for the previous year.
The year witnessed decline in operation due to non-availability of raw
material, crash in commodity prices and overall economic conditions.
The Company expects better performance in the current year with good
The company produces various grades of PIB like HV 10, HV 30, HV 100
and HV 200. The feedstock prices remained high during the year;
however the company was able to manage and cater to the customers''
requirements and expectations.
Due to the ongoing expansion/diversification plans and raw material
situation, the Board of Directors is of the opinion that shareholders
would be best served by retaining the surpluses back into the company.
Hence no dividend has been proposed.
3. FIXED DEPOSIT
During the year the Company has not accepted any Fixed Deposits within
the meaning of any of the sections of the Companies Act, 2013 and the
rules made there under.
4. FUTURE BUSINESS PLANS OF THE COMPANY
During the period under review, the Company''s manufacturing activities
were badly affected due to crash of commodity prices and short supply
of raw material. However, for the current year the company has a target
to outperform previous year''s production level as the availability of
raw material is improving.
With a view to further expand the operations and to raise the top line
as well as the bottom line the company is foraying into trading of
various chemicals and energy products like High- density polyethylene
(HDPE), low density polyethylene (LDPE), base oil, furnace oil,
polymers, LPG, coal etc. The company has a ready market for these
products as it enjoys excellent business rapport with the potential
customers. The management is determined to expand its core customer
base. The company is also tapping the huge export market.
With a view to address the financial strains, the management is
foraying in to tapping on alternate sources of long term funds and
utilization of excess assets. The management has identified excess land
owned by the company and has proposed to develop industrial gala or
technology park on this excess land. The company is in the process of
entering in to an understanding with a company, which is also a related
party but the transaction conducted or to be conducted on arm''s length
basis, for this purpose which will provide technical support. The
Company has approached Maharashtra Industrial Development Corporation
(MIDC) for necessary approvals.
Ms. Sangeeta Rathi, Director, retires by rotation and being eligible
offers herself for re- appointment at the forthcoming Annual General
The Company has received declaration from all the independent directors
of the company confirming that they comply with the provisions of their
independence as per clause 49 of the listing agreement with the BSE
Limited as well as provisions of the Companies Act.
The Company has a policy of performance evaluation of the board,
various board committees and individual directors.
The report on Corporate Governance contains information on various
Board committees, meetings thereof etc. and is an integral part of this
6. EXTRACT OF ANNUAL RETURN MGT 9
MGT9 has been given in this Annual Report and is an integral part of
7. DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the requirement under section 134(5) of the Companies Act,
2013 with respect to Directors Responsibilities Statement, it is hereby
a. In the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
b. The directors had 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 at the end of the financial year and of the profit and
loss of the company for that period;
c. The directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the company and
for preventing and detecting fraud and other irregularities;
d. The directors had prepared the annual accounts on a going concern
e. The internal financial controls for ensuring the orderly and
efficient conduct of its business, including adherence to company''s
policies, the safeguarding of its assets, the prevention and detection
of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information
are adequate and are operating effectively; and
f. The directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
During the year under review, none of the employees received
remuneration of or in excess of the limits prescribed as per the
provisions of Section 217 (2A) of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules, 1975.
9. AUDITORS AND AUDITORS'' REPORT
M/s B K G & Associates, Statutory Auditors of the Company, retire at
the conclusion of the ensuing Annual General Meeting and they are
eligible for the reappointment.
The observation made by the StatutoryAuditors in their report are self
explanatory and do not need any further clarification.
10. COST AUDIT
M/s C. G. Pampat & Co, Cost Accountants, Mumbai have been appointed as
the Cost Auditors of the Company for the financial year 2014-2015. The
Cost Statements for the financial year 2014-15 will be filed with
11. SECRETARIAL AUDIT
Ms. Disha Dugar, a Practising Company Secretary, (Membership number
Fellow 8128, Certificate of Practice number 10895) was appointed as the
Secretarial Aduitor and the report has been annxed and forms and
integral part of Directors'' Report. The report is self explanatory.
12. PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE
Particulars of loans and advances given and investments made is given
Note 15 to Balance Sheet and Profit and Loss Account, please also see
related parties transactions in notes to accounts section.
13. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
Information with respect to conservation of energy, technology
absorption, foreign exchange earnings and outgo pursuant to Section 217
(1) (e) of theAct read with Rule 2 of the Companies (Disclosure of
Particulars in the Report of the Board of Directors) Rules, 1988, form
part of this Report.
14. CORPORATE GOVERNANCE
Being observant and responsible, the company is committed to high
standards of the corporate ethics, professionalism and transparency. As
per Clause 49 of the Listing Agreement with the stock exchanges, a
separate section on Corporate Governance forms part of the Annual
Report. A certificate from the Statutory Auditors of the Company
confirming the compliance of conditions of corporate governance under
Clause 49 of the Listing Agreement is also attached to this Report.
15. EMPLOYEE RELATIONSHIP
The Company enjoyed very cordial relations with the employees during
the year under review and the Management wishes to place on record its
sincere appreciation of the efforts put in by workers, staff and
16. LISTING WITH STOCK EXCHANGE
The equity shares of the Company are listed with the Bombay Stock
17. DEMATERIALISATION OF SHARES
The company has dematerialized its shares with both depositories viz.
CDSL and NSDL.
The Directors would like to express their sincere appreciation and
gratitude for the support and co-operation received from the Central
and State Governments Department, Civic Corporation and authorities,
Banks, Customers, Suppliers, Associates, Vendors and Members during the
year under review. The Directors also wish to thank and place on record
their appreciation for all the employees for their committed and
sincere services and continued cooperation throughout the year.
For and on behalf of the Board
Chairman and Managing Director
Place: Navi Mumbai
Date: 12th August, 2015