DUJODWALA PAPER CHEMICALS LIMITED
ANNUAL REPORT 2011-2012
Your Directors have pleasure in presenting the 25th Annual Report together
with the Audited Accounts for the year ended 31st March, 2012.
(Rs. In Lacs)
Net Sales 16188.55 13601.04
Increase/Decrease in Stock 1575.31 1818.52
Other Income 26.83 23.41
Gross Profit before Interest,
Depreciation and Taxation 1397.70 891.90
Interest 890.55 448.23
Depreciation 202.90 206.37
Provision for Taxation 129.01 97.19
Deferred Tax (Income)/Expense (12.45) 17.26
Net Profit for the year 187.69 122.84
Surplus brought forward from previous year 1821.23 1698.39
Balance available for Appropriation 1775.35 1821.23
Balance carried forward to Balance Sheet 1775.35 1821.23
To meet the requirement of funds for working capital and its expansion
programme, the Directors have decided not to recommend any dividend for the
year under review.
MANAGEMENT'S DISCUSSION & ANALYSIS :-
The company is engaged in the manufacturing and selling of Rosin and Rosin
Size, Synthetic Resins and other Terpene Chemicals and its products at its
unit located at Atkargaon, Taluka Khalapur, Khopoli., Dist. Raigad,
Industrial Structure and Developments
There was a huge volatility in the price of critical raw-materials
alongwith a recessionary trend in the Western part of the World to save all
slow down in the growth of economic programme.
The same had a huge impact on the purchasing price of critical Raw Material
which eventually effected the profitability.
In order to mitigate the impact created by the volatility in the prices,
the Company made a concerted effort for shifting to alternate technologies
Opportunities and Threats
The Company caters to the units of Paints, Rubbers, Papers, Tyres etc.
which is showing a good sign of growth. The same should also result in the
Company growing as the demand for its product rises.
The Company is aware of the threat and is gearing up for the same.
The Company is continuously implementing means to innovate, reduce cost, be
The Company has a positive outlook towards the future with the industries
being catered to showing good signs of growth.
Risk & Concern:
There is unhealthy competition from internal and external market forces,
which could affect the profitability of the Company.
Internal control systems and its Adequacy:
The Company has put in place necessary internal control systems
commensurate with its operations. Periodical checks are conducted and
necessary remedial measures are adopted.
Discussion on Financial Performance with respect to Operational
During the year under review, the company has achieved sales of Rs.16188.55
Lacs as against Rs. 13601.04 Lacs during the previous year resulting an
increase of 19.02%.
The Company is pleased to announce that it is undergoing expansion in the
state of Maharashtra which will improve its performance in the current
The Company has not accepted any Fixed Deposits during the year under
Human resources/industrial relations & particulars of employees.
The Industrial relations in the manufacturing unit of the Company continued
to be cordial.
During the year there was no employee whose particulars are required to be
given under Subsection 2A of Section 217 of the Companies Act, 1956, read
with the Companies (Particulars of Employees) Rules, 1975.
Pollution and Environment Control.
The Company has always paid highest importance to ensure that the
environment remains relatively pollution free. The work force is
continuously trained and coached in safety and are provided appropriate
Adequate pollution control facilities are installed at the plant as per
Guidelines of Pollution Control authority and are run as per set norms.
CONSERVATION OF ENERGY:
To conserve energy, internal checks are carried out periodically and
suitable measures are adopted wherever necessary.
The particulars are given in Annexure 'A' attached herewith.
The Company's manufacturing process for its Products is based on in-house
technology which has been successfully absorbed. The Company has been
constantly making efforts for improvement of quality and for marketing new
range of products.
FOREIGN EXCHANGE EARNING AND OUTGO:
The Company has spent Rs.314.15 lacs against Rs.375.67 lacs during the
previous year on import of raw materials and expenses. During the year
under review, the Company's foreign exchange earnings amounted to Rs.467.15
lacs as against Rs.459.86 lacs during the previous year on account of
M/S. A. P. Sanzgiri & Co., Chartered Accountants, the Auditors of the
Company will retire from office of the Auditors and being eligible offer
themselves for re-appointment.
The Auditors have given some remarks in their Audit Report which have been
explained in the Notes of Accounts attached with the Balance Sheet and we
want to further clarify that,
As per Accounting Standard AS-15, Company is required to make provision of
Employee benefits viz. Gratuity, Leave Salary, Bonus on actuarial basis,
calculation of which is very cumbersome and therefore the company could not
calculate the liability. The company is making payments of all these on
cash basis and accounting the same at that time.
DIRECTORS' RESPONSIBILITY STATEMENT :
A Directors' Responsibility Statement as required Under Section 217(2AA) of
the Companies Action 1956 is given below:-
1) Directors have followed the applicable accounting standards in the
preparation of the Annual Accounts and proper explanation relating to
material departures have been given in Note No. 1 of Notes on Accounts
forming part of the accompanying Accounts.
2) Directors have selected the Accounting Policies as given in Note No. 1
of Notes on Accounts 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 as at 31st March, 2012 and of
the profits of the Company for the year ended on that date.
3) Directors have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of Companies
Act, 1956 for safeguarding the Assets of the Company and for preventing and
detecting fraud and other irregularities.
4) Directors have prepared the Annual Accounts for the year ended 31st
March, 2012 on a Going Concern basis.
A separate report on Corporate Governance along with Auditors certificate
on compliance has been annexed hereto.
The Directors wish to take this opportunity to thank the State Bank of
India, State and Central Government Departments, the Shareholders for their
valuable co-operation and support to the Company.
The Directors wish to take this opportunity to thank all employees of the
Company for the services rendered by them to the Company.
For & on behalf of Board of Directors
Place:- Mumbai Omprakash Dujodwala
(Whole Time Director)
ANNEXURE TO THE DIRECTORS' REPORT. FORM 'A'
A. POWER AND FUEL CONSUMPTION [RS. IN LACS]
PARTICULARS 2011-12 2010-11
Purchased Units (Kwh/Lakh) 3.934 5.804
Total Amounts(Rs./Lakh) 24.45 33.80
Rate/Unit (Rs.) 6.22 5.82
2. Light Diesel Oil (LDO)/ Furnace Oil (FO)/Coal
Quantity (Kg.VLakh) 4.74 7.84
Total Cost (Rs/Lakh) 21.54 45.65
Average Rate (Rs./Kg.) 4.55 5.82
Form for disclosure of particulars with respect to:
RESEARCH AND DEVELOPMENT [R&D]
1. Areas in which R&D is being carried out.
The R&D centre continue to strengthen the Company's business by providing
new products and process, optimization of the existing range and pollution
control. Brief details are given below:
a) Strong R&D support has enabled development of various products.
b) Pollution control was given importance and efforts directed towards
reduction at source and by-product recovery and usage.
2. Benefits derived as a result of above R&D.
a) Increase in product range, augmenting export potential and marketing.
b) Product consistency for remaining universally competitive.
c) Improvement in process control, conversation of energy resulting in cost
3. Future plan of action.
a) Upgradation and development of more products.
b) Product quality improvement and cost reduction.
c) Waste minimization and development of cleaner and greener technology.
1. Efforts made.
a) Improvement in technical services to meet customer requirements.
b) Interaction with CSIR laboratories and consultants for improving process
and pollution control.
2. Benefits derived as a result of above efforts.
a) Better customer satisfaction.
b) Cost effectiveness and increase in marketability.