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PPAP Automotive Ltd.

BSE: 532934 | NSE: PPAP |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE095I01015 | SECTOR: Auto Ancillaries

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BSE Live

Feb 19, 16:00
186.50 2.35 (1.28%)
Volume
AVERAGE VOLUME
5-Day
655
10-Day
883
30-Day
1,496
106
  • Prev. Close

    184.15

  • Open Price

    187.50

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Feb 19, 15:55
187.30 2.95 (1.60%)
Volume
AVERAGE VOLUME
5-Day
11,974
10-Day
9,470
30-Day
15,943
6,109
  • Prev. Close

    184.35

  • Open Price

    187.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
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Director’s Report

The Directors have great pleasure in presenting Thirteenth Annual Report on the business and operation of the Company together with the Audited statement of accounts for the year ended March 31, 2008. FINANCIAL HIGHLIGHTS In the Financial year 2007-08, your company recorded revenue of 12741.96 Lakhs, a growth of 15.99% over the previous year. Profit after tax was Rs. 1938.63 Lacs, against Rs. 1395.70 Lacs in previous year. Earnings per share (EPS) for the year 2007-08 on an expanded equity of Rs. 1400.00 Lakhs was 13.85. The brief financial highlights with comparison of previous year are as below: Particulars Year ended Year ended March 31, 2008 March 31, 2007 Total Income 12741.96 10973.36 Profit Before Depreciation, Interest And Taxation (PBDIT) 3795.21 2796.49 Less: Depreciation 586.50 497.03 Less: Interest 159.06 167.68 Profit Before Tax 3049.64 2131.78 Less: Income Tax Paid & Other Provisions 1111.01 736.08 Profit After Tax 1938.63 1395.70 Add : Profit brought forward from previous year 3057.59 2325.63 Profit available for appropriation 4996.22 3721.33 Less: - Transfer to General Reserve 200.00 150.00 - Dividend 420.00 450.00 Dividend Tax 71.38 63.73 Profits Carried forward 4304.84 3057.60 REVIEW OF OPERATIONS Your Company is engaged in the business of manufacturing automobile sealing systems and exterior products. The product range includes weather strips, trim door opening, windshield molding, roof molding, quarter window seal, A-pillar garnish, B-pillar garnish, skirt air damper, body side molding etc. Additionally, the company manufactures PVC based customized profiles for white goods and other industries. Your Company is OEM supplier to the automobile industry and the client list includes Maruti Udyog Limited, Honda SIEL, General Motors and Toyota Kirloskar. Your Company has a technical collaboration with Tokai Kogyo Co. Ltd (TKCL), Japan, to manufacture automobile products. In I the white goods industry, your company supply I customized profiles to Godrej, Voltas, Videocon and Carrier Refrigerators. Your Company derives around 90% of the turnover from automobile customers, nearly 4% from white goods products and the remaining from other segments including electrical and construction. For the financial year ended March 31, 2008 the Company achieved a total sales turnover of Rs. 125.82 Crores showing a growth of over 15% over the previous year. Net Profits after Ta x (PAT) increased to Rs. 1938.63 Lacs in 2008 from Rs. 1395.69 Lacs in 2007 showing an increase of 38.90%. The profit margin increased to 15.21% in 2008 from 12.77% in 2007. The Companys Unit at Mohan Co-operative Industrial Area, Mathura Road, New Delhi started commercial production of Power Line Communicators for its principals M/s Power Data Corporation Pty Ltd. (PDC), Sydney, Australia during January, 2008. PDC has a world wide patent for this product and looking into the utility of the product, it should be commercially very successful world wide once it is launched. Your Company entered into an Automotive Parts Licensing agreement with Nissen Chemitec Corporation, Japan. Nissen would provide new product technology to the Company in order to manufacture and deliver automotive interior parts and related products to Honda SIEL Cars India Limited of India and its affiliated companies. CRISIL has again awarded a rating of SME I to the Company indicating highest level of credit worthiness in relation to other SMEs. The Company is also awarded by Honda SIEL cars limited for outstanding performance in the category cost and best vendor award from Toyota Kiroloskar Motors Limited in the category Cost, Quality, Zero PPM and best quality supplier.(Delhi region) . MARKET SCENARIO The passenger vehicle industry witnessed a slowdown but managed to grow by 11.1% mainly on account of launch of new product models, reduction in excise duty by the Government and aggressive sales promotion schemes by the manufacturers. Amidst moderation in economic growth, continued increase in fuel prices, a high interest rate regime and tightening of the liquidity position, the domestic passenger vehicle industry was able to grow by 11.3% to an all time high of over 1.5 million vehicles, albeit at a lower growth rate than 21% of the last fiscal. Maintenance of these factors or any increase in them would impact demand in the current year and this may affect sales volumes, leading to lower profitability. EXPANSION PLANS The Company is setting up an ultra modern plant for manufacture of Automobile profiles at B-4, Surajpur, Industrial Area, Greater Noida (UP) to meet the future demands of our existing customers and to cater to the requirements of the new entrants to the Car Market in India. This plant will have an installed capacity to produce 12.00 Lakh K G during 2008-2009 and is in advance stage of implementation. Major Car manufacturers like Nissen, Mahindra & Mahindra and Tatas have shown keen interest in the products of the Company for their future requirements. All the major plant and machineries have been identified and orders placed. The commissioning of extrusion facility is expected to start by middle of September, 2008 and the commercial production will start by October, 2008. DIVIDEND The Board is pleased to recommend a dividend of Rs. 3.00 per equity share (being 30% on the par value per equity share), to be appropriated from the profits of the Company for the financial year 2008 subject to the approval of the shareholders in the ensuing Annual General Meeting. TRANSFER TO RESERVE A sum Rs.200.00 Lakhs is transfered to the general reserve being 10.31% of the current years profit. An amount of Rs. 4304.84 Lakhs is retained in the profit and loss account. MATERIAL CHANGES There is no other material change affecting the affairs of the Company, which has happened between the date of the Balance Sheet and up to the date of this report. DEPOSITS Your Company has not accepted any Public deposits under Section 58A of the Companies Act, 1956 read with the Companies (Acceptance Of Deposits) Rules, 1975 rules made there under. AUDITORS REPORT The observations in the Auditors Report read with the Notes to Accounts are self - explanatory and do not call for any comments. AUDITORS M/s. Dharam Taneja Associates, Chartered Accountants, Statutory Auditors of the Company hold office until the conclusion of the ensuing Annual General Meeting. The Company has received letter from them to the effect that their appointment, if made, would be within the limits prescribed U/s 224(1B) of the Companies Act, 1956. Accordingly, M/s. Dharam Taneja Associates, Chartered Accountants are required to be reappointed as Statutory Auditors of the Company at the ensuing Annual General Meeting. Their reappointment has also been recommended by the Audit Committee. DIRECTORS Mr. Ajay Kumar Jain, Managing Director and Mr. Rajeev Jain Director- Works of the Company were reappointed for further period of one year with effect from 1st November, 2008 by the Board in its meeting held on 29th July, 2008. Mr. Abhishek Jain was appointed as a Whole Time Director designated as Executive Director of the Company, by the Board of Directors in its meeting held on 3rd July, 2007 for a period of Five years. At the ensuing Annual General Meeting, Mr. Anuj Jain and Mr. Satish Lal Tandon, Directors of the Company shall be liable to retire by rotation in accordance with the provision t of section 255 and 256 of the Companies Act and being J eligible, offer themselves for re-appointment as Directors I of the Company. Mr. Surender Kumar Tuteja, Mr. Vinod Vaish, Mr. Sudarshan Kumar Duggal and Mr. Abhishek Jain were appointed as Additional Director of the Company, by the Board, w.e.f. 3rd July, 2007. They are proposed to be appointed as regular directors pursuant to Section 257 of the Companies Act, 1956. None of the Director of the Company is disqualified as per provision of Section 274(1)(g) of the Companies Act, 1956. The Directors of the Company have made necessary disclosure as required under various provisions of the Companies Act and Clause 49 of the Listing Agreement. DIRECTORS RESPONSIBILITY STATEMENT In compliance of Section 217(2AA) of the Companies Act, 1956 as amended by the Companies Amendment Act, 2000, the directors of your company subject to notes appended to accounts and auditors report confirm that: (1) In preparation of annual accounts for the financial year ended 31st March, 2008, the applicable Accounting Standards read with the requirements set out under Schedule VI to the Companies Act, 1956, have been followed and there are no material departures from the same; (2) Such accounting policies have been selected and applied consistently and such judgments and estimates made are reasonable and prudent so as to give true and fair view of the state of affairs of the Company at the end of the financial year 31st March, 2008 and of the Profit of the Company for the said year; (3) 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; and (4) The annual accounts have been prepared on a going concern basis. AUDIT COMMITTEE The Board reconstituted the Audit Committee during the year 2006-2007 having Mr. Kaushal Kumar Mathur as the , Chairman and Mr. Brij Behari Tandon, Mr. Satish Lal Tandon and Mr. Sharat Chand Jain as the members. The audit committee performed its duties during the year and reviewed & submitted the annual accounts for the year 2007-2008 to the Board for its approval. The Audit Committee is constituted in accordance with the provision of the Companies Act, 1956 and in accordance with the Listing Agreement entered into with the stock exchanges. The term of reference and role of the Audit Committee are as per the guidelines set out in the Listing Agreement with the stock exchanges read with Section 292A of the Companies Act, 1956 and includes such other functions as may be assigned to it by the Board from time to time. The Audit Committee has adequate powers to play an effective role as required under the provision of the statute and Listing Agreement. INITIAL PUBLIC ISSUE (IPO) OF THE COMPANY During the financial year ended March 31, 2008, Precision Pipes and Profiles Co. Limited completed its IPO of 50,00,000 equity shares fo Rs.10/- each for cash at a premium of Rs. 140/- per share aggregating to Rs.75.00 Crores. Your Company is now a listed company with effect from 11th January, 2008. CORPORATE GOVERNANCE Precision Pipes And Profiles Company Limited believes that good Corporate Governance is the key driver of sustainable corporate growth and enhances the wealth of shareholders of the Company The Company to its best endeavor comply with all the aspects in letter and spirit of Corporate Governance Practices. The Companys views on Corporate Governance envisages the attainment of the high level of transparency, fairness, social responsiveness, accountability, equity, integrity, independence professionalism and complete disclosure of its all operations and interaction with its shareholders, employees, creditors, customers, stock exchanges, government and public at large. Pursuant to Clause 49 of the Listing Agreement of the Stock exchanges, the Report on Corporate Governance and Management analysis & Discussion Report have been included in this annual report as a separate section and forms part of the Directors Report along with the Auditors Certificate. PARTICULARS OF EMPLOYEES None of the employees of the Company are in receipt of the salary exceeding the limits of Rs.24,00,000/- per annum or Rs. 2,00,000/- per month as specified by Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 as amended by Companies (Particulars of Employees) Rules, 2002. CONSERVATION ENERGY, TECHNOLOGY ABSORPTION AND RESEARCH & DEVELOPMENT AND FOREIGN EXCHANGE EARNINGS AND OUTGO CONSERVATION ENERGY The particulars in respect of energy conservation are not applicable to your company in terms of Section 217(1) (e) read with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988. TECHNOLOGY ABSORPTION AND RESEARCH & DEVELOPMENT As required under Rule 2 of the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, the particulars relating to Technology Absorption and Research and Development as per Form B are given in annexure attached hereto, which forms a part of this Directors Report. ENVIRONMENT The Company is not involved in any type of operations hazardous to environment and does not discharge any trade effluents (solid, liquid or gaseous) causing pollution. The Company adheres to the provisions of environmental laws. Our Unit I is ISO 9001 and 14001 certified from B.S.I Management System, London and all other units are QS ISO 14001 certificate holders from TUV Management Service GmbH, TS 16949 Certificate holders from AIB - Vinocotte, Belgium & OHSAS 18001 from TUV Management Services GmbH. Our operations do not generate effluents. The Proposed units also would not generate any effluents. Appropriate equipments would be installed for the plant as per the requirements of the Pollution Control Board to check pollution. INDUSTRIAL RELATIONS Industrial relations between the management & employees are cordial and no dispute of any kind was neither reported nor observed during the year. The Management including the employees of the Company worked as a team. LISTING Your Company is listed at Bombay Stock Exchange Ltd. & National Stock Exchange of India Limited. Your Company is regular in paying listing fees. ACKLOWLEDGEMENTS Your Directors take this opportunity to gratefully acknowledge the co- operation and assistance extended by the valued customers of the Company, M/s Tokai Kogyo Co. Ltd., Japan, and Nissen Chemitec Corporation Japan our Technical Collaborators, Government of India and Companys Bankers for their continued support and guidance. The Directors also wish to place on record their sincere appreciation for the dedication and efforts shown by all the employees of the Company and are also thankful to all the investors of the company for their continued patronage and confidence in the Company. By order of the Board of Directors For PRECISION PIPES & PROFILES COMPANY LIMITED Devendra Chandra Jain (Chairman) Place : New Delhi Dated : 29th July, 2008

Director’s Report