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Dujodwala Paper Chemicals Ltd.

BSE: 524276 Sector: Industrials
NSE: N.A. ISIN Code: INE990C01010
BSE LIVE 13:45 | 10 Aug Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 7.35
PREVIOUS CLOSE 7.00
VOLUME 250
52-Week high 7.35
52-Week low 0.00
P/E 665.00
Mkt Cap.(Rs cr) 4
Buy Price 6.65
Buy Qty 50.00
Sell Price 7.35
Sell Qty 6500.00
OPEN 7.35
CLOSE 7.00
VOLUME 250
52-Week high 7.35
52-Week low 0.00
P/E 665.00
Mkt Cap.(Rs cr) 4
Buy Price 6.65
Buy Qty 50.00
Sell Price 7.35
Sell Qty 6500.00

Dujodwala Paper Chemicals Ltd. (DUJODWALAPAPER) - Director Report

Company director report

DUJODWALA PAPER CHEMICALS LIMITED ANNUAL REPORT 2011-2012 DIRECTOR'S REPORT To, The Members, 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) 2011-12 2010-11 FINANCIAL RESULTS 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 Appropriations: Balance carried forward to Balance Sheet 1775.35 1821.23 DIVIDEND: 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 :- Overview: 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, Maharashtra. 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 in manufacturing. 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. Outlook: The Company is continuously implementing means to innovate, reduce cost, be environment friendly. 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 Performance: 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%. Expansion Programme: The Company is pleased to announce that it is undergoing expansion in the state of Maharashtra which will improve its performance in the current year. Fixed Deposits: The Company has not accepted any Fixed Deposits during the year under review. 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 safety equipment. 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. TECHNOLOGY ABSORPTION: 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 export. AUDITORS : 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. AUDITORS' REPORT 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. CORPORATE GOVERNANCE A separate report on Corporate Governance along with Auditors certificate on compliance has been annexed hereto. ACKNOWLEDGEMENT: 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. CONCLUSION: 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 Date:- 30.08.2012 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 1. Electricity 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 'B' 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 reduction. 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. TECHNOLOGY ABSORPTION: 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.