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Deccan Polypacks Ltd.

BSE: 531989 Sector: Industrials
NSE: N.A. ISIN Code: INE132E01015
BSE LIVE 15:01 | 03 Nov 3.84 0.18
(4.92%)
OPEN

3.84

HIGH

3.84

LOW

3.84

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 3.84
PREVIOUS CLOSE 3.66
VOLUME 620
52-Week high 7.66
52-Week low 3.66
P/E
Mkt Cap.(Rs cr) 0.81
Buy Price 3.84
Buy Qty 4.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.84
CLOSE 3.66
VOLUME 620
52-Week high 7.66
52-Week low 3.66
P/E
Mkt Cap.(Rs cr) 0.81
Buy Price 3.84
Buy Qty 4.00
Sell Price 0.00
Sell Qty 0.00

Deccan Polypacks Ltd. (DECCANPOLYPACKS) - Director Report

Company director report

DECCAN POLYPACKS LIMITED ANNUAL REPORT 2011-2012 DIRECTOR'S REPORT Your Directors have pleasure in presenting their 28th Annual Report together with the Audited Accounts and Cash Flow Statements for the year ended 31st March 2012. The financial results for the year ended 31st March 2012 are summarized below: (Rs. in Lakhs) Particulars 2011-12 2010-11 Income from operations 3208.05 3078.49 Gross Profit 264.96 156.74 Interest 200.48 101.49 Depreciation 30.20 30.09 Profit/(Loss) before taxation 34.28 25.15 Deferred Tax(Liability)/Asset 9.02 3.75 Current tax (6.53) (4.66) Net Profit/(Loss)After Taxation 36.77 24.24 Balance brought forward 124.25 100.01 Balance carried to Balance Sheet 161.02 124.25 Operations The overall performance of the company in terms of sales and turnover has marginally increased to Rs.3208.05 lakhs (previous year Rs.3078.49 Lakhs) in the year under report in comparison with the previous year. During the year the company has recorded production of 2638 MTs ( previous year 2788 MTs). The production has been marginally lower in the year under report due to frequent power cuts leading to loss of production. This has also resulted in lower capacity utilization of 86.12% in comparison with the previous year 91.02%.The volume of export sales has been low compared to previous year. The Company has mainly focused on the domestic market sales during the year hence recorded lower volumes of exports. The realization on sales during the year under report has marginally improved for woven sacks and fabric. The company has recorded , net profit of Rs 36.77 lakhs as against Rs.24.24 lakhs in the previous year mainly due to increase in deferred tax. The company has continued its efforts to reduce costs wherever possible to improve its overall performance. The company is hopeful of achieving improved performance in the coming years. Future Outlook The Economy is showing improvement especially in the infrastructure and construction activities. The Government is making efforts to boost the construction activity by taking up various infrastructure projects and announcing various schemes to provide for housing to the economically weaker sections. Such actions would boost the production of cement and its requirement for its packing. The company mainly caters to the packing requirements of the Cement and Fertilizer industries whose growth has been affected due to present recessionary market conditions. The company has drawn strategic plans to strike balance between the domestic and export market to ensure improvement in performance in future. Disclosure as per Listing Agreement: Clause 43: The company's shares are listed on the Bombay Stock exchange Ltd., P J Towers, Dalai Street, Fort, Mumbai. It is further informed that the listing fees for the year 2012-2013 has been paid to the exchange. Corporate Governance The company has implemented the Corporate Governance Code during the year under report. A detailed report is enclosed. Directors Responsibility Statement In terms of the provisions of Section 217 (2AA) of the Companies Act, 1956 it is stated that: (a) in the preparation of annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures. (b) the Directors have selected such accounting -v 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 of the company for that period. (c) the Directors have 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 have prepared the annual accounts on a going concern basis. CRISIL RATING Your company has been accredited with Crisil B/Stable/Crisil A4 rating to the Company for the facilities availed from the Bank. Energy, Technology and Foreign Exchange Additional information on conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo as required to be disclosed in terms of section 217(1)(e) of the Companies Act, 1956 as amended by the Companies (Disclosure of particulars in the report of the Board of Directors) Rules, 1988 is annexed hereto and forms part of this report. Particulars of Employees There is no employee in the company coming under the provisions of section 217(2 A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules 1975 as amended. Auditors M/s Bhaskara Rao & Co. Chartered Accountants, the Statutory Auditors of the company retire at the conclusion of the ensuing Annual General Meeting and being eligible offer themselves for re-appointment. Directors Your Directors regret to inform the demise of Sri D.V.R. Raju, Promoter and Director of the Company on 13.08.2012. The Directors place on record the contributions made by Sri D.V.R. Raju during his tenure as Director of the company. (Noted in the Board Meeting held on 16.08.2012) Pursuant to the Provisions of Sections 255 and 256 of the Companies Act, 1956 Sri N.V.S. Rao and Sri N S B Reddy Directors of the company retire by rotation at the ensuing Annual General Meeting and being eligible offer themselves for re-appointment. Sri D V Prudvi Raju was appointed as Additional Director and Whole Time Director at the meeting of the Board of Directors held on 08.02.2012 subject to the approval of shareholders of the Company. The appointment of Sri D V Prudvi Raju as Director and Whole Time Director on payment of remuneration is proposed at the ensuing Annual General Meeting'. Secretarial Compliance Certificate Secretarial Compliance Certificate in terms of section 383A of the Companies Act, 1956 is attached and forms part of the report. Acknowledgements The Board expresses its grateful thanks to the State -Bank of India, State Bank of Hyderabad, various departments of the State and Central Government, customers, vendors and shareholders for their valuable support to the company, staff and employees. For and on behalf of the Board G V S Raju D R S P Raju Director (Commercial) Managing Director Place: Hyderabad Date : 16.08.2012 Annexure-I Disclosure of Particulars with respect to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and out go as required under Companies (Disclosure of particulars in the Board of Directors Report) Rules, 1988. A. Conservation of Energy Conservation of energy continues to be accorded high priority. The company conducts in-house study at regular intervals in respect of energy consumption and formulates operational systems to minimize power consumption. B. Technology Absorption The company has not obtained any imported technology. The company has trained its personnel in the equipment suppliers works to absorb the technology C. Foreign Exchange Earnings and Outgo: Current Previous Year Year Rs. Rs. 1. Foreign Exchange earned 28,36,412 62,98,912 2. Foreign Exchange used for import of raw material 29,32,069 1,69,46,399 Form-A (See Rule 2) Form for Disclosure of particulars with respect to Conservation of Energy. Plastic Industry is not covered under the list of industries required to furnish information in Form A hence information not disclosed. Management discussion and Analysis Report Management Discussion and analysis report on the business of the company as applicable and to the extent relevant is given below: The Company is engaged in the manufacture of HDPE/PP Woven sacks/fabric, film covers, HMHDPE/LDPE bags, which is alternate packing medium in comparison with jute or paper bags. These bags are mainly preferred by cement and fertilizer companies due to low sost, good external appearance, long shelf life, easy to handle, moisture resistance etc. In addition, the woven sacks are used for packing composite manure, food grains, chemicals and poultry products in the domestic markets. The company markets its products in the domestic market directly to the end user customers. The company has established its presence in the exports market also but in recent times has reduced its presence in the export market and mainly focused in the domestic market. Polypropylene and Polyethylene the main raw materials are available indigenously as well as through imports. The prices of the raw materials are announced, by indigenous suppliers at the beginning of the month depending upon the international prevailing prices. These prices at times are also revised during the month by the suppliers. The company does not have control on the prices of the raw material. The raw material market is controlled by few players and the company at times is not in a position to pass on the increase in price of raw materials to the buyers. Opportunities and Challenges The woven sacks industry is highly competitive due to presence of many players.' The growth and demand for packing is dependent on the growth of cement and fertilizer industries who account for major consumption of bags in turn whose growth depends on the Real Estate and construction activities and Government Policies, and spending on development of infrastructure activities. Any major variation in the fortunes of these industries has direct impact on the prospectus of the woven sack industry. There is tremendous potential for the woven sacks in the domestic as well as export market, however the contributions are very much dependent upon prices of raw materials which undergo revision frequently. Price of the raw material is major factor which decides the profitability and performance of the company. In addition, the costs of other inputs also influence the bottom line. Segment wise performance The company is engaged in a single line of activity hence n& disclosure of segment wise performance is made. Risk and Concerns Indian Economy is not insulated any more from the global economy. Any adverse factor in the international market also affects the domestic Indian market. Frequent changes in price of raw materials, highly competitive market, leading to price war is building pressure on the existing thin margins in the woven sack industry. Internal Control Systems & their Adequacy The company has adequate internal control system and an external firm of Chartered Accountants have been appointed as the Internal Auditors and the Audit Committee Reviews the Internal Auditor's Report and suggests remedial action where required. Discussion on financial performance with respect to operations The Company has reported marginal increase in gross sales and other income of Rs 3208.05 Lacs as against Rs 3078.49 Lakhs in the previous year. The operations of the company has-resulted in net profit of Rs 36.77 lakhs as against net profit of RS 24.24 Lakhs recorded in the previous year. With the combined efforts of management and staff the company could bring down expenses. There has been no change in the paid up share capital during the year 2011-2012. Material Development in Human Resources/Industrial Relations Human resources is an invaluable asset. The company has cordial relationship with the employees and staff. Cautionary Statement Statement in this 'Management Discussion Analysis' may be considered to be 'forward looking statements' within the meaning of applicable securities laws or regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the company's operations include global and Indian demand-supply conditions, increased installed capacity, finished goods prices, raw materials availability and prices, cyclical demand and pricing in the company's markets, changes in Government regulations, tax regimes, besides other factors, such as litigations and labour negotiations. FORM (See Rule 3) COMPLIANCE CERTIFICATE Registration Number of the Company: L24134AP1984PLC005215 Authorized Capital : Rs.5,00,00,000/- Paid-up-Capital : Rs.2,11,50,000/- To The Members, M/s Deccan Polypacks Limited. I have examined the registers, records, books and papers of M/s DECCAN POLYPACKS LIMITED (the Company) as required to be maintained under the Companies Act, 1956 (the act) and the rules made there under and also the provisions contained in the Memorandum and Articles of Association of the company for the financial year ended on 31st March, 2012. In my opinion and to the best of my information and according to the examinations carried out by me and explanations furnished to me by the company, its officers and agents. I certify that in respect of the aforesaid financial year. 1. The company has kept and maintained all registers as stated in Annexure 'A' to this certificate, as per the provisions and the rules-made there under and all entries therein have been duly recorded; 2. The company has duly filed the forms and returns as stated in Annexure 'B' to this certificate, with the Registrar of Companies, Regional Director, Central Government, Company Law Board or other authorities within the time prescribed under the Act and the rules made there under. 3. The company being a Public Limited Company, comments are not required. 4. The Board of Directors duly met 5 (Five) times on 27.05.2011, 16.07.2011, 13.08.2011, 12.11.2011 and 08.02.2012 (dates) in respect of which meetings proper notices were given and proceedings were properly recorded and signed including the circular resolution passed in the Minutes Book maintained for the purpose. 5. The company has closed its Register of Members from 23.09.2011 to 29.09.2011 (both days inclusive) and necessary compliance of Section 154 of the Act has been made. 6. The Annual General Meeting for the financial year ended on 31.03.2011 was held on 29.09.2011 after giving due notice to the members of the company and the resolutions passed thereat were duly recorded in Minutes Book maintained for the purpose. 7. No Extra-Ordinary Meeting was held during the Financial Year under review. 8. The company has not advanced any loans or given any guarantees or provided any securities to its Directors or persons or firms or companies referred to under section 295 of the Act during the financial year. 9. The company has not entered into any Contracts falling within the purview of Sec. 297 of the Act. 10. The company has made necessary entries in the register maintained under Sec 301 of the Companies Act, 1956. 11. As there were no instances falling within the purview of section 314 of the Act, the company has not obtained any approvals from the Board of Directors, members or Central Government. 12. The company has not issued duplicate share certificates during the financial year. 13. The company has: i) delivered all the certificates on lodgment thereof for transfer/ transmission of shares in accordance with the provisions of the Act. ii) The company has not deposited any amount in a separate Bank Account as no dividend was declared during the financial year. iii) The company was not required to post warrants to any member of the company as no dividend was declared during the financial year. iv) The company was not required to transfer as no such amounts were held in unpaid dividend account e and interest accrued thereon which have remained unclaimed or unpaid for a period of seven years to Investor Education and Protection Fund. v) duly complied with the requirements of Section 217 of the Act. 14. The Board of Directors of the company is duly constituted. There was an appointment of Whole Time Director, however there was no appointment of alternate Directors, and Directors to fill casual vacancy dining the financial year. 15 The company has appointed Whole Time Director during the financial year. 16. The Company has not appointed any sole selling agents during the financial year. 17. The company was not required to obtain approvals of the Central Government, Company Law Board, Regional Director, Registrar or such other authorities as may be prescribed under the various provisions of the Act during the financial year. 18. The Directors have disclosed their interest in other firms / companies to the Board of Directors pursuant to the provisions of the Act and the rules made there under. 19. The company has not issued any Shares, Debentures or other securities during the financial year. 20. The company has not bought back any shares during the financial year. 21. The company has not issued any preference shares/debentures and hence the question of redemption of preference shares debentures does not arise during the financial year under review. 22. There were no transactions necessitating the company to keep in abeyance the rights to dividend, rights shares and bonus shares pending registration of transfer of shares. 23. The Company has not invited / accepted any deposits falling within the purview of Section 58 A during the financial year ended 31.03.2012. 24. The amounts borrowed by the company from directors, members, financial institutions, banks and others during the financial year ended 31.03.2012 are within the borrowing limits of the company! 25. The company has made loans or advances or given guarantees or provided securities to other bodies corporate during the year and entries have been made in the register kept for the purpose. 26. The company has not altered the provisions of the Memorandum with respect to situation of the company's registered office from one State to another during the year under scrutiny. 27. The company has not altered the provisions of the Memorandum with respect to situation or the objects of the company during the year under scrutiny. 28. The company has not altered the provisions of the Memorandum with respect to name of the company during the under scrutiny. 29. The company has not altered the Memorandum of Association with respect to share capital of the company during the year under scrutiny. 30. As the company has not altered the Articles of Association the approval of members in general meeting is not necessary. 31. There was no prosecution initiated against or show-cause notices received by the company and no fines or penalties or any other punishment was imposed on the company during the financial year for offences under the Act. 32. The company has not received any money as security from its employees during the financial year. 33. the company has not constituted a separate provident fund trust for its employees or class of its employees as contemplated under section 418 of the Act. Place: Hyderabad For VBSS Prasad Date : 15.05.2012 Company Secretary VBSS Prasad Proprietor CP. No: 4605 ANNEXURE 'A' - COMPLIANCE CERTIFICATE Name of the Company: M/s Deccan Polypacks Limited Registration Number: L24134AP1984PLC005215 Authorised Capital : Rs.5,00,00,000/- Registers as maintained by the Company: SI. Section Number Name of the Register No 1. 108 Share Transfer Register 2. 143 Register of Charges 3. 150 Register of Members 4. 193 Minutes of meetings of Board of Directors 5. 193(1) Minutes of General Meetings 6. 303 Register of Directors 7. 307 Register of Directors' shareholding 8. 301 Register of Contracts Place: Hyderabad VBSS PRASAD Date : 15.05.2012 COMPANY SECRETARY CP. NO: 4605 ANNEXURE 'B' COMPLIANCE CERTIFICATE Name of the Company: M/s Deccan Polypacks Limited Registration Number: L24134AP1984PLC005215 Authorised Capital : 5,00,00,000/- Returns/Documents/Forms filed with the Registrar of Companies, Regional Director, Central Government or other authorities during the financial year ended 31st March, 2012. REGISTER OF COMPANIES S. Form Description Date of C1 C2 No. No. Filing 1. 23B SRN:S06257836 15.10.2011 Yes No 2. 23 Registration Resolutions 28.10.2011 Yes No 3. 66 Compliance Certificate 28.10.2011 Yes No 2010-2011 4. 25C Managerial Remuneration 21.11.2011 Yes No Sri GVS Raju 5. 25C Managerial Remuneration 21.11.2011 Yes No Sri D R S P Raju 6. 23AC Balance Sheet 2010-2011 22.11.2011 Yes No 7. 23ACA Profit and Loss Account 22.11.2011 Yes No 2010-2011 8. 20B Annual Return 2010-2011 25.11.2011 Yes No 9. 32 Appt of Sri DV Prudvi Raju 07.03.2012 Yes No as Addl. Director 10. 25C Managerial Remuneration 07.03.2012 Yes No 11. 8 Modification of Charges 28.03.2012 Yes No C1 = Whether filed within prescribed C2 = If delay in filing Whether requisite addl. Fee paid Yes/No. Place: Hyderabad VBSS PRASAD Date : 15.05.2012 COMPANY SECRETARY VBSSPRASAD Proprietor CP. No: 4605

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