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Gwalior Polypipes Ltd.

BSE: 506987 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
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Gwalior Polypipes Ltd. (GWALIORPOLYPIPE) - Director Report

Company director report

DIRECTOR

Dear Members

Your Directors hereby present the 31 st Annual Report together with the auditedaccounts of the Company for the year ended March 312014.

Financial Highlights

(Rs. in lakhs)

Year ended March 31 2014 2013
Sale 461.53 507.36
Other Income 4.89 27.06
Total Income 466.42 534.42
Profit/(Loss) before Depreciation interest and taxes 21.68 6.67
Interest 0.26 00.68
Depreciation & Amortisation 13.18 15.43
Profit/(Loss) before tax (35.12) (9.44)
Prior year adjustment - -
Provision for Gratuity - -
Provision for tax - -
Provision no longer required - -
Profit/(Loss) after tax (35.12) (9.44)

Financial performance

Your Directors have to state that the working of your Company has been satisfactoryduring the year as compared to the previous year. Revenue during 2013-14 at Rs. 461.53Lakhs the previous year revenue of Rs.507.36 Lakhs. EBITDA during the year is Rs.21.68 Lakhs as compared to Rs. 6.67 Lakhs during the previous year. The net loss after taxfor the year is Rs. 35.12 Lakhs as compared to net loss of Rs. 9.44 Lakhs during the previousyear.

The Company's financial statements have been prepared in accordance with IndianGenerally Accepted Accounting Principles (GAAP) and Companies Act 1956.

Your Company's product i.e. HDPE Corrugated pipes for use in bridges/flyoverconstructions foundation drainage etc are well accepted in the market and orders arebeing received from various MNC. Company's double walled corrugated pipes have been wellaccepted. Your Directors are hopeful to receive good orders in years to come.

Dividend

In view of the accumulated losses your Directors have not recommended any dividend forthe year under review.

Legal Proceedings

During the year there has been no reprieve in legal and similar proceedings continuingbefore Courts Debt Recovery Tribunal Sales Tax department.

Directors

Mrs. Swati S. Sahu Director of the company retire by rotation at the ensuing AnnualGeneral Meeting and being eligible offer herself for re-appointment. The Board ofDirectors has recommended her reappointment for consideration of the shareholders.

Directors' responsibility statement

In terms of section 217 (2 AA) of the Companies Act 1956 your Directors state that:

a. In the preparation of the annual accounts under review the applicable accountingstandards have been followed along with proper explanations relating to materialdepartures if any.

b. Appropriate accounting policies were selected and applied consistently andreasonable and prudent judgment and estimate were made so as to give a true and fair viewof the state of affairs of the Company at the end of the financial year under review andthe profit of the Company for the year ended on that date.

c. Proper and sufficient care was taken for the maintenance of adequate accountingrecords in accordance with the provisions of the Companies Act 1956 for safeguarding theassets of the Company and from preventing and detecting fraud and other irregularities.

d. The annual accounts have been prepared on a going concern basis.

Auditor

The existing statutory auditor M/s SNMG & Co. Chartered Accountant New Delhihold office till the conclusion of the ensuing Annual General Meeting and are eligible forreappointment. The requisite certificate under section 224{IB) of the Companies Act 1956has been received from them expressing their willingness for reappointment.

Auditor's Report

The observations made in Auditor's Report are SQlf-explanatory and covered by the noteson the accounts and therefore do not call for any furtbfer comments.

Corporate Governance & Management Discussion & Analysis

A Report on Corporate Governance as stipulated in Clause 49 of the Listing Agreementalong with the Auditors' certificate is enclosed in terms of Clause 49 of the saidAgreement and forms part of the annual report.

CostAuditor:

Pursuant to Section 233 B of the companies Act 1956 and subject to the approval of theCentral Government M/s V.K. Gupta & Co. practicing Cost Accountant (Firm RegistrationNo. 101705) was appointed as Cost Auditor of the company to conduct audit of its productfor the financial year 2013-14.

Management Discussion & Analysis:

Company

Overview

The company is engaged in the manufacture of Rigid PVC Pipes and PVC/HDPE Corrugatedpipes with manufacturing facility at Kota (Rajasthan). These pipes are fast substitutingthe conventional pipes and have better outlook.

The company had since beginning adopted the policy of institutional sales as theGovt departments were the buyers for large diameter pipes for irrigation and water supplyschemes. As such a majority of the sale was made to Govt and semi-Govt. departmentsafter participating in the tenders floated by them. The recession led to the poordevelopment work by the Govt resulting in low procurement of material by them which inturn adversely affected the revenues and profitability of the Company. The company has nowcreated private market sales network but could not develop it's brand and market theproducts in open market in view of paucity of working capital.

Revival Plan

The company has already taken steps to improve the capacity utilisation achieve highersale$ by targeting new clients with a focus on margins nurturing existing relationshipsgeographic expansion and other initiatives.

The benefits of the revival plan will be clearly visible on its implementation insubsequent years.

Internal Controls and Adequacy

The company has in place adequate systems of internal controls designed to providereasonable assurance with regard to recording and providing reliable financial andoperational information complying with applicable statues safeguarding assets andinterest of the Companjrand ensuring that transactions are properly authorized recordedand reported correctly. The internal control systems are supplemented by review by theAudit Committee.

Conservation of energy technology observation and foreign exchange earnings and oytgo

Particulars required under section 217(1) (e) of the Companies Act 1956 read with theCompanies (Disclosure of Particulars in the Report of the Board of Directors) Rules 1988are set out in the Annexure 1 to this Report.

Particulars of employees

None of the employees is covered under Section 217 (2A) of the Companies Act 1956 readwith Companies (Particulars of Employees) Rules 1975

Acknowledgements

Your Directors place on record their appreciation for the continued assistance andco-operation to your Company by various Government Departments Company's shareholdersemployees vendors customers suppliers and other stake holders.

For and on behalf of the Board of Directors

Place: New- Delhi Anil P. Sahu Sanil P. Sahu
Dated: 18th July 2014 Director Managing Director

Annexure 1 to the Directors' Report

STATEMENT CONTAINING PARTICULARS PURSUANT TO COMPANIES (DISCLOSURE OF PARTICULARS INTHE REPORT OF BOARD OF DIRECTORS) RULES 1988.

A. Conservation of Energy

Conservation of energy measures were taken into reckoning at the planning stage itselfin plant design and equipped with capacitors. The Company is further conscious of the needto conserve energy and keep a strict vigil over the use of utilities such aswater-cooling compressed air lighting etc. Though during the year under review therewere no additional investment and proposals the company will continue to make efforts forreduction of consumption of energy.

Particulars of total energy consumption and energy consumption perunit of production inForm A are not applicable.

B. Research & Development (R&D)

Due to lower volume during the year under review there have not been new research anddevelopment activities. The Company was however benefited with the development of newproducts to cater the needs of different and users which is proposed to be continued infuture as well. Expenditure on R&D has been charged under primary heads of accounts.

C. Technology Absorption Adoption and Innovation:

The Company has not entered into any technical foreign collaboration agreement. Thetechnical know-how received along with the imported equipment has been folly absorbed andimproved.

D. Foreign Exchange Earned and Used:

Foreign Exchange Earned : Nil
Foreign Exchange Outgo : Nil

 

For and on behalf of the Board of Directors

Place: New- Delhi Anil P. Sahu Sanil P. Sahu
Dated: 18th July 2014 Director Managing Director