| Dear Members,
The Directors have pleasure in presenting the Twenty Eighth Annual
Report of the Company together with the Financial Statements for the
year ended 31st March, 2014.
OPERATING RESULTS (Rs. In Lakh)
Particulars For the Year For the Year
ended 31st ended 31st
March,2014 March,2013
Net Sales 4052.25 3089.39
Other Income 17.81 36.26
Total 4070.06 3125.65
Less : Total Expenditure 3533.70 2792.80
Profit before Interest,
Depreciation and Tax 536.36 332.85
Less: Interest 221.55 218.62
Profit before Depreciation
and Taxation 314.81 114.23
Less: Depreciation 71.38 68.87
Profit before Tax 243.43 45.36
PERFORMANCE REVIEW
With the Indian economy decelerating, growth rates dipped as inflation
and interest costs started climbing up. Despite these constraints and
the challenging environment, your Company performed well. During the
year 2013-14, the gross turnover of the Company has increased to
Rs.4422.14 lacs as against Rs. 3402.20 lacs for the previous year ended
31st March, 2013 representing a healthy growth. The Company has
achieved higher profit before tax at Rs. 243.43 lacs compared to Rs.
45.36 lacs, during the previous year.
The Gross Turnover of the two divisions of the Company were as under:
(? In Lakh)
Division 2013-14 2012-13
Paper Sacks Division 3634.62 3131.28
Flexible Packaging Division 782.30 260.60
As reported in the last Board report, the initiatives/various measures
and vigorous marketing undertaken by your company during the year under
review in increasing productivity and efficiency have led to
improvement of the operational performance in terms of production,
sales and profitability, which is visible from the operational
performance for the year under review. Your management will continue
their effort in improving the performance of the company to bring back
on track by expanding market and concentrating more in value added
structure to increase not only volume but also profit margins.
The results of cost reduction initiatives and operational efficiencies
will be further visible in the current financial year 2014-15 as your
company has continued the initiatives to optimize capacity utilization
in both the units.
Paper Sacks Division
During the year under review, the Paper Sacks could achieve growth of
more than 15% resulting in better profitability than previous year.
However, the quantity of paper sacks sold remained same compared to
previous year. Your company has suffered a loss of sale by 50% at
carbon black sector due to recession in the Automobile industry which
has affected the division in terms of business volume.However the loss
has been compensated by sale of higher volume of high value added sacks
in other sectors like Chemical, powder paints and attributed
significantly toward the over all growth of this division.
Flexible Division
During the year under review, the performance of flexible division was
satisfactory and it has achieved higher turnover than previous year.
The turnover of Flexible Packaging Division was almost triple compared
to the previous year. Your Company could add many new customers during
the year under review which has resulted in growth in this segment.
However, this Division could not be operated to its optimum level of
production capacity due to severe competition and flat demand.
FUTURE OUTLOOK
The Company expects that domestic market for paper sacks and flexible
laminate pouches will expand, despite pressure on overall economic
growth. The Company is positioned for the anticipated growth in
business with an appropriate structure, strategy and capabilities. Your
Company is planning to open a representative office in the Baroda,
Gujarat where huge market for our brand of Products exists and will
help the company to approach the potential customers .It is expected
that the turnover of the Company is likely to improve considerably.
The flexible sector has suffered lot due to lesser demand, price
undercut and cut throat competition. Many units have closed their
operation due to severe loss in this segment. However, your company has
focused from volume job at marginal contribution to small but high
priced job. During the current year the company has targeted to move on
along with medium sized volume at better contribution.
In the present business scenario and despite the fragmented nature of
the industry which is dominated by few big players the Company is
expecting 10% to 15% growth in its business. The Company is focusing
more to capture the market of imported paper sacks for achieving better
contribution.
DIVIDEND
Your Directors are pleased to recommend a dividend of 2.5% on the
equity shares of Rs.10/- each of the Company for the financial year
2013-14.The distribution of dividend will result in payout of Rs.
12,40,125/- excluding tax on dividend.
DIRECTORS
Dr. Hemendra Prasad Barooah, Chairman of the Company ceased to be
director of the company due to sad demise on 31st July, 2013. The Board
expresses its profound grief on the sudden demise of Dr. Hemendra
Prasad Barooah founder Chairman of the Company and place on record its
deep appreciation for the valuable contribution made by him in the
Corporate sector and remember his achievements, in the tea and
packaging industry and also the contribution made by him during his
tenure as Chairman and Whole time Director on the Board of the Company.
Mr. Panchkari Banerjee, Director of the Company ceased to be director
of the company due to sad demise on 25th September, 2013. The Board
expresses its deep condolences at the sad demise of Mr. Panchkari
Banerjee and place on record deep appreciation for the service rendered
by him during his tenure as member of the Board.
Mr. Sudipto Sarkar, Director of the Company has resigned from the Board
due to personal reasons w.e.f. 2nd September,2013. The Board placed on
record its high appreciation for the valuable advice rendered by Mr.
Sarkar during his tenure as a director of the Company.
The Board has appointed Mr. Amit Chowdhuri and Mrs. Anuradha Farley as
an Additional Directors of the Company w.e.f. 5th November,2013 and
13th November,2013 respectively. Mrs. Farley has also been nominated as
Chairman of the Company by the Board of Directors on that date.
Pursuant to section 161 of the Companies Act,2013, Mrs. Anuradha Farley
and Mr. Amit Chowdhuri will hold office upto the date of ensuing Annual
General Meeting. The Company has received notice in writing from two
members of the company proposing their appointment as directors of the
Company. Mr. Amit Chowdhuri has been appointed as an 'Independent
Director' of the Company by the Board of Directors with effect from
23rd May, 2014 pursuant to provision of sections 149, 150 and 152 read
with Schedule IV of the Companies act, 2013 and subject to approval of
the members in the ensuing Annual General Meeting.
Mrs. Gargi Barooah, Director, retire by rotation at the forthcoming
Annual General Meeting and being eligible offer herself for
re-appointment.
As stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges, the relevant details of Directors retiring by rotation and
seeking re-appointment at the ensuing Annual General Meeting are given
in the report of Corporate Governance.
The proposals regarding the appointment/re-appointment of the aforesaid
Directors are placed for your approval.
AUDITORS
M/s. APS Associates, Chartered Accountants, the Statutory Auditors of
the Company will retire at the ensuing Annual General Meeting and are
eligible for re-appointment. The Audit Committee at its meeting dated
23rd May, 2014 has recommended their re-appointment. As required under
the provisions of section 139(1) of Companies Act, 2013 & the Companies
(Audit & Auditors) Rules 2014,your Company has obtained a written
certificate from the Auditors proposed to be re- appointed to the
effect that, if the appointment is made it shall be in accordance with
the conditions as may be prescribed.
FIXED DEPOSITS
Your Company has not invited or accepted any deposits from the public
during the year under review.
CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS REPORT
As required by Clause 49 of the Listing Agreement with the Stock
Exchange, a separate report on Corporate Governance and Management
Discussion and Analysis forms part of the Annual Report. A certificate
from the Statutory Auditors of the Company regarding compliance of
conditions of corporate governance is annexed to this report.
DIRECTORS' RESPONSIBILITY STATEMENT
As required by Section 217 (2AA) of the Companies Act, 1956, your
Directors state that:
- In the preparation of Annual Accounts for the year ended 31st
March, 2014, the applicable accounting standards have been followed and
in case of material departures, proper explanations have been given in
the accounts and notes thereon.
- The accounting policies adopted in the preparation of the annual
accounts have been applied consistently and reasonable and prudent
judgments and estimates have been made so as to give a true and fair
view of the state of affairs of the Company as at 31st March, 2014 and
of the Profit of the Company for the year ended on that date.
- 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
detecting fraud and other irregularities.
- The Annual Accounts for the year ended 31st March, 2014 have been
prepared on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information as prescribed under 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 given in Annexure -A
which forms a part of this Report.
ENTERPRISE RESOURCE PLANNING (ERP)
The Company is in the process of upgrading its existing Enterprise
Resources Planning (ERP) system which will help the company more to
integrates the various functions within the organization and presents
in a greater manner with the greater transparency of the transactions.
It will further strengthen internal controls, compliances and will help
in improving the quality and efficiency of the business operations in
future.
The upgraded ERP is expected to put in place strong checks and balances
particularly in financial matters ensuring greater transparency.
ACCOLADES & RECOGNITIONS
During the year under review your Company has received some honours
which reflect company is growing and is in the right direction. Some of
the accolades/recognitions are:
- CRISIL has ranked the Company 22nd position in the East Zone of
India in its Unmatched coverage of rating of 351 companies of packaging
and mentioned it in its Report under CRISIL Industry Insights.
- Received trophy from Indian Institute of Packaging for contribution
in the National Conference of Packaging.
SAFETY, HEALTH AND ENVIRONMENT PROTECTION
Your Company focuses on environmental management not only to comply
with the applicable regulatory regime but also strives to contribute
positively to the communities around its operations. The Paper sacks
and its manufacturing process are both eco friendly and do not generate
pollution. Your Company accords highest priority towards environment
protection, occupational health and safety and is committed for this.
The Company focus on the conservation of natural resources to the
extent possible.
Your Company has received ISO 22000:2005 food grade certificate, ISO
14001- Environment Management System and OHSAS 18001- Occupational
Health & Safety Standard certificates. Your Company is also pursuing
BRC(British Retail Consortium) IOP, the highest form of auditing
process for application in food packaging.
COST AUDIT
The Cost accounts maintained by the company in respect of "Paper
sacks and Flexible packaging" is being audited by a reputed firm of
Cost Accountant, M/s S. B. & Associates, Cost Accountants appointed by
Board of Directors with the approval of the Ministry of Corporate
Affairs. The Cost accounting records for the year ended 31st March,
2014 were maintained as per the Companies (Cost Audit Report) Rules,
2011.
INSURANCE
Your Company has taken adequate insurance cover for properties of the
company including buildings, plant and machineries and stocks against
fire, earthquake and other risks as considered necessary.
OBLIGATION OF COMPANY UNDER THE SEXUAL HARRASMENT OF WOMEN AT
WORKPLACE(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
In order to prevent sexual harassment of women at work place a new act
"The Sexual Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013 "has been notified on 9th December, 2013.
Under the said Act every company is required to set up a Committee to
look into complaints relating to sexual harassment at work place of any
women employee. In view of the said Act, the Company has formed
Internal Complaint Committee.
Your Company has not received any complaints relating to sexual
harassment at work place from any women employee, during the year.
PARTICULARS OF EMPLOYEES
None of the employees employed throughout the year or part of the year
was in receipt of remuneration the aggregate of which exceeds the
limits as prescribed under Section 217(2A) of the Companies Act, 1956
read with Companies (Particulars of Employees) Rules, 1975 as amended,
for disclosure in the report of the Board of Directors.
STATUTORY DECLARATION
None of the directors of the Company are disqualified as per the
provisions of section 274(1)(g) of the Companies Act,1956. The
directors have made necessary disclosures as required under the various
provisions of the Act.
ACKNOWLEDGEMENT
Your Directors would like to express their appreciation for the
continuous assistance and co- operation received from Bank, Government
Authorities, customers, vendors and other business associates during
the year under review and thank the Members for the confidence they
have reposed in the Company and its management.
Your Directors place on record their deep appreciation for the
dedicated efforts and contribution of the employees at all levels and
look forward to their continued support in the future as well.
For and on behalf of the Board of Directors
Anuradha Farley
Chairman
Date : 23rd May, 2014
Place: Kolkata
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