| The Directors have pleasure in presenting the 15th Annual Report
together with the Audited Statement of Accounts of the company for the
year ended 31-03-2005 with the Auditors Report thereon:
1. FINANCIAL RESULTS:
2004-2005 2003-2004
P.M.-I
Installed Capacity 19800.000 MT 19800.000 MT
Production 4753.553 MT 6473.115 MT
Capacity utilisation 24.00% 32.70%
P.M.-II
Installed Capacity 21750.000 MT 21750.000 MT
Production 8375.960 MT 11819.145 MT
Capacity utilisation 38.51 % 54.34 %
P.M. III
Installed Capacity 36000.000 MT 36000.000 MT
Production 27776.068 MT 43.028 MT
Capacity Utilisation 77.16% 0.12%
(Production started on 04.03.2004)
(Rs. in lacs) (Rs. in lacs)
Sales (Net of Returns) 9747.53 2670.38
Profit before Depreciation 357.63 268.50
Depreciation for the year 467.78 211.08
Expenses/Income related to earlier year (+) 5.39 (-) 2.06
Excess/Short provision of Income Tax (+)0.03 (-)2.63
Profit after Depreciation (-) 104.73 (+) 52.85
Provision for Income Tax (-) 4.50
Deffered Income Tax (+) 109.30 (-) 21.63
Profit after Tax (+)4.57 (+) 26.72
2. PERFORMANCE :
During the year under review, the company has not been able to maintain
the same capacity utilisation in both kraft paper machines. The
productivity remained low since both the machines are outdated as far
as process is concerned. The sales target also could not be achieved
due the liberal policy of our adjoining state of Uttaranchal in regard
to full excise duty exemption and overall recession. Because of basic
reason of excise exemption, maximum medium and small units which are
not opting for availment of Cenvat, have diverted to duty free paper
from Uttaranchal and Himachal States.
The overall performance during the year was little encouraging since
your company could achieve the desired profitability as PBD stood at
Rs. 357.63 Lacs as against Rs.268.32 Lacs in immediate preceding year.
During this year also fire occurred in the waste paper yard of the
company on 15th April, 2004. A substantial part of stock of Imported
waste paper was burnt due to fire. The Company had sufficient
arrangement of fire fighting equipments like water, hydrant points,
pipes, fire buckets, fire extinguishers etc, but due to devastating
nature of fire, it could not be controlled immediately. The management
has taken certain effective preventive measures such as MinimaxTrailer
Pumps, Temperature Sensor System and other latest fire fighting
equipments to avoid such type of accidents in future. The company had
lodged claim for fire loss on New India Assurance Company Limited which
has been settled
3. COMPLETION OF EXPANSION PLAN OF NEWS PRINT/ WRITING-PRINTING PAPER
WITH CO- GENERATION :
You would appreciate that expansion plan of the unit with diversified
project of News print and Writing-Printing paper having installed
capacity of 36000 MT per annum has been completed last year. The
production of the News print and Writing-Printing plant is satisfactory
and plant achieved 77.16% capacity utilization during first year.
4. FUTURE OUTLOOK
In order to improve companys turnover, management has taken various
steps and concentrating more on markets where demand of our product is
more and favourable business conditions exist The company is planning
for modernization of Paper Machine II by making it compatible for use
of total waste paper based pulp in place of agro pulp.
All possible efforts are being made to improve the overall performance
of the company and effect of same will be seen in near future, as good
demand of writing printing paper exists in domestic as well as export
market.
5. FINANCIAL ASSISTANCE:-
Term loan of Rs. 2980 lacs from Punjab National Bank, Large Corporate
Branch, New Delhi and Rs. 2100 lacs from Punjab & Sind Bank,
Industrial Finance Branch, New Delhi was availed for the Writing
Printing/Newsprint Paper project and co-generation plant and the
interest and instalments are being repaid in time as per sanction.
Further, during this year Cash Credit/Working Capital limit enhanced
from 930.00 lacs to Rs. 1730.00 lacs Fund Based and Rs. 925.00 lacs to
Rs. 1725.00 Lacs Non Fund Based sanctioned by the Punjab National Bank,
Large Corporate Branch, New Delhi for smooth working of your new plant.
6. DIVIDEND
In view of Loss/inadequacy of profit, the Board of Directors of your
company have not recommended any dividend for the year 2004-05.
7. INDUSTRIAL RELATIONS
The employee-employer relationship remained cordial and harmonious
throughout the year. The Board of Directors of your Company place on
record their satisfaction for the dedicated services rendered by the
employees of the Company.
8. CAPITAL EXPENDITURE
The total capital expenditure incurred during the year amounts to
Rs.559.02 lacs in the plant for its smooth running.
9. PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND OUTGO:
Particulars in respect of conservation of Energy Technology absorption
and Foreign Exchange earnings and outgoing as required under section
217(1) (e) of the Companies Act, 1956 read with the companies
(Disclosure of particulars in the report of Board of Directors) Rules
1988 are given in the Form A attached hereto and Form B1 part of
this Report.
10. SUBSIDIARY COMPANY:
During the financial year, no company was the subsidiary of our Company
11. DIRECTORS:
S. Rajender Singh Chadha and S. H.P.S. Bhatia retire by rotation in
accordance with the Articles of Association of the Company at the
ensuing Annual General Meeting and being eligible, offers themselves
for re-appointment.
None of the Directors of your company is disqualified under section
274(1 )(g) of the companies Act1956. As required by law, this
position is also reflected in the Auditor Report.
12. AUDITORS:-
M/s Shiv Om & Co., Chartered Accountants, Moradabad, statutory auditors
retire at the conclusion of the ensuing Annual General Meeting of the
company and being eleigible offer themselves for re-appointment. They
have confirmed that their appointment, if made, will be in accordance
with the limits specified U/s 224(1 B) of the Companies Act1956.
13. PARTICULARS OF EMPLOYEES :
None of the employees was in receipt of remuneration in excess of the
limit specified U/s 217(2A) of the Companies Act 1956 during the year
under report.
14. DIRECTORS RESPONSIBLITY STATEMENT
Pursuant to section 217 (2AA) of the Companies Act, 1956 your Directors
state that:
(i) In the prepration of Annual Accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departure,
(ii) The Directors have selected such accounting policies and applied
them consistently and made judgements and estimates that are reasonable
and prudent so as to give true and fair view of the state of affairs of
the Company at the end of financial year and the profit of the company
for the 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, for safeguarding the assets of the
Company and for preventing and detecting fraud and other
irregularities.
(iv) The Directors have prepared the annual accounts on a going concern
basis.
15. Compliance Certificate
A certificate from the Auditors of the Company regarding compliance of
conditions of Corporate Governance as stipulated under Clause 49 of the
Listing Agreement is attached to this report.
16. MANAGEMENT OISCUSSSION AND ANALYSIS REPORT :
17. ACKNOWLEDGEMENTS:
Yours Directors would like to express their grateful appreciation for
the assistance and co-operation received form the Financial
Institutions, Banks, Government Authorities, Customers and Shareholders
during the year under review. Your Directors with to place on record
their deep sense of appreciation for the devoted services of the
Executives, Staff and Workers of the Company.
For and on behalf of the
BOARD OF DIRECTORS
Dated: 03th September, 2005 (S. KULWANT SINGH CHADHA)
Place: BILASPUR (Rampur) Chairman cum Managing Director
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