SAND PLAST INDIA LIMITED
ANNUAL REPORT 2011-2012
The Directors are pleased to present the 23 (Twenty Third) Annual Report
together with the Audited Accounts of your Company for the financial year
ended 31st March' 2012.
The purpose of the Directors' Report is to provide shareholders with
certain statutory information about the Company, its Directors and
operations. The Performance and Operational Review, which forms part of the
Directors' Report, informs shareholders and helps them assess how the
Directors have performed their duty to promote the success of the Company.
Financial Results and Performance of the Company
The summarized working results for the financial year ended on 31st March,
2012 as compared with the previous year are as under:-
(Rupees in Lacs)
Current year Previous year
Total Income 249.44 304.69
Total Expenses (424.74) (490.74)
Profit/(Loss) Before Depreciation (175.31) (186.05)
Depreciation (200.67) (200.67)
Profit/(Loss) Before Extra Ordinary
Item & Interest (375.98) (386.72)
Profit/(Loss) Before Tax (375.98) (386772)
Tax - -
Net Profit/(Loss) after tax (375.98) (386.72)
Excess Provision written back - 1.03
Net Profit/(Loss) carried to Balance Sheet (375.98) (385.69)
Performance and Operational Review
The Board informs to you that the performance of your Company was not
satisfactory during the financial year even though settlement of production
level, working out of logistics with respect to movement of finished
products from factor)', arrangement of raw materials etc was satisfactory
in comparison to previous financial year. The staff and workers put their
sincere effort in the operation of the plant and achieving efficiency in
the production level.
During the year, the company has achieved a sales turnover of Rs. 234.03
Lacs in the financial year ending 31st March, 2012 as compared to Rs.286.47
Lacs in the year ended 31st March, 2011. The Company has earned income of
Rs. 249.44 Lacs in comparison to income of Rs. 304.69 Lacs during the
previous financial year.
Your Directors have taken appropriate remedial action to mitigate the
adverse circumstances and are hopeful of better performance and results
during the current year.
Company is taking effective steps to improve its production and sales
during the year under review. Trading in the equity shares of the Company
We are very pleased to inform you that from the date of listing of equity
shares of the Company with the Bombay Stock Exchanges (w.e.f. June, 2009),
the equity shares of the Company are regaining its trading volume day by
day on the bourses with the strenuous and fruitful efforts of the Board of
Directors and management of the Company. This has provided an extra
platform to the proposed investors to invest in the Company and the
existing investor more liquidity for entry and exit route in the Company.
The Board of Director does not recommend any dividend for the financial
Year 2011-2012 due to the loss for the year.
During the year the Company has not accepted or invited any deposit from
the public within the meaning of Section 58A of the Companies Act, 1956
read with Companies (Acceptance of Deposit) Rules, 1975, during the year
Information about Energy Conservation, Technology Absorption and Research &
Development and Foreign Exchange earning and outgo
(A) Energy Conservation :
a) Energy conservation measure taken by the Company:-
i. To optimize steam transfer of autoclaves for pre-heating purpose.
ii. To control spillage of green mix and reuse it before getting it dried,
so that it can be used without adding extra inputs.
iii. By using certain anti-scaling and anti anti-deoxidizing chemicals for
boiler feed water to enhance boiler thermal efficiency.
iv. Resetting of factory shed sheeting in lime area to utilize natural flow
of wind efficiently to reduce number of exhaust fans.
b) Additional investment/proposal being implemented for reduction of
i. Second line of steam transfer within the autoclave has been completed.
ii. To ensure proper insulation on all the autoclaves and boilers as well.
iii. Using of CFLs in place of Halogen lights in plant areas.
iv. To utilize broken bricks (waste) powder as a raw material for in house
use or for other fly ash based industries.
c) Impact of measures as mentioned above in consumption of energy and on
the cost of production of goods.
Saving in energy consumption and waste material utilization will reduce the
production cost of the Company and would also help a bit against global
(B) Technology absorption and Research & Development.
With its established in-house research & Development, Sand Plast has built
its reputation with customers, government authorities, national &
international market and in the society by utilizing up to 90% of fly ash
in the manufacturing of high quality bricks of strength 100 kg per sq. cm
a) Specific area in which research and development carried out by the
I. To make utilization of broken bricks (waste) power as a raw material for
in house use or for other fly ash based industries.
II. Stabilizations of different raw material composition to get better and
b) Benefit derived as result of above efforts:
The Research and Development works for the above are at the preliminary
stage only but the Company is very hopeful to get the favourable results.
c) Future course of action
Work on above assumptions at different level and to get success and to
prove globally that Sand Plast India Limited is the pioneer in the field of
(C) Foreign Exchange earning and outgo
The company has not spent any foreign exchange outgo during the financial
year. There were no foreign exchange incoming during the financial year.
Particulars of Employees
None of the employees are in receipt of remuneration in excess of limits
prescribed under Section 217 of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Amendment Rules. 2011 as amended,
therefore, no disclosure is required.
Director's Responsibility Statement as per Section 217 (2AA) of the
Companies Act, 1956
Pursuant to the requirement under section 217 (2AA) of the Companies
Act' 1956 with respect to director's responsibility statement, it is hereby
(i) That in the preparation of the accounts for the financial year ended
31st March, 2012, the applicable accounting standards have been followed
along with proper explanations relating to material departures;
(ii) that the directors had selected such accounting policies and applied
them consistently and made judgments and estimates that were 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 or loss, to be
read with notes on accounts, of the company for the year under review;
(iii) That the directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguard of the assets of the
company and for preventing and detecting fraud and other irregularities;
(iv) That the directors have prepared the accounts for the financial year
ended 31st March' 2012 on a 'going concern' basis.
Board of Directors
At the AGM held on as a result of retirement by rotation Mr. Shivcharan
Manikrao Parvatkar who retire by rotation and offer himself for re-
appointment as the independent-director of the Company in the said AGM and
being eligible, offer himself for re-appointment.
Director's observation on Audit Report
Attention is invited to Note. No. vi (a) of the Balance sheet of the
company for the year, which state that the company has filed Modified
Draft Rehabilitation Scheme to Hon'ble B1FR dated 27th April, 2011 and
Secured Creditors i.e. PNB and HUDCO. The Company has not provided interest
on PNB dues amounting to Rs. 315.45 Lacs and Rs. 3034.15 Lacs in respect of
HUDCO in totality, as a result of the same Secured liabilities and
accumulated losses of the company are understated by Rs. 3349.60 Lacs
(Including Current year Interest Rs. 405.19).
With reference as per point no. (vi) (a) of the Auditors Report, the dues
of the financial institutions/banks were rescheduled under rehabilitation
package pending with the honorable BIFR.
M/s D Khanna & Associates, Statutory Auditors of the company shall hold
office till the conclusion of the ensuing Annual General Meeting and are
eligible for re-appointment. The Company has received intimation to this
effect that their re-appointment, if made, would be within the prescribed
limits of Section 224 (IB) of the Companies Act' 1956.
Management Discussions and Analysis
The Company has, over the years, relentlessly strived to achieve leadership
position in its field of business. It has been successful in developing its
own technical know-how including designing and development of plant &
machinery. It has further been able to achieve use of fly ash including
bottom ash and pond ash up to 90% in manufacturing of high quality bricks
of the strength of 100 kg per sq. cm and above. The Hon'ble Supreme Court,
through its judgment a few years back, has directed that the traditional
brick manufactures using brick kilns to use 25% of the fly ash, as the raw
material for the purpose of making bricks within the National Capital
Territory of Delhi and had suggested adoption of technology 'Mechanized
Autoclaved Sand Lime Fly Ash Bricks', the one pioneered by your Company.
The Govt, of India's Notification has further made it obligatory for users
to specify fly ash products and has made it mandatory for thermal power
plants to utilize 100% of ash generated by them over the years.
Your company's effort has accordingly been proved useful in the light of
apex court's directive and also from the point of view of directions of
Govt, of India. Further the real estate business in NCR and other part of
the country is now growing up therefore directors are hopeful that it will
bring the opportunity to the Company since the Company produces the
'Mechanized Autoclaved Sand Lime Fly Ash Bricks' which is one of the main
component for the construction industry and real estate business. Further
the Company fully organized although the sector of the product is totally
unorganized like other traditional brick manufacturer. The product of the
Company is also environment friendly and reduces the pollution therefore
the Company has also applied to CDM Executive Board for availing carbon
credit and same is pending with authorities.
However the management of the Company is hopeful that the performance of
the Company will improve in near future.
Corporate Governance - Clause 49 of the Listing Agreement
Your Company has followed Good Corporate Governance Practices since
inception and in accordance with the code of Corporate Governance. The
detailed report on Corporate Governance along with the certificate from
Statutory Auditors in compliance as per Clause 49 of the Listing Agreement
is attached herewith as Annexure-1 and forms part of this report.
Your company has taken significant step in developing human resource and
strengthening human resource systems. During the year under review,
industrial relation in the company continues to be cordial and peaceful.
Your Directors wish to convey their appreciation to all suppliers,
promoters, lenders and governments for their invaluable supports and look
forward to continued supports in future. The Board of Directors thanks to
the appreciation of employees at all the levels for their hard work,
dedication and commitment which enable the company make progress ahead.
For and on behalf of the Board of Directors
S.M. Parvatkar Rajesh Gupta
Director Managing Director
Dated: 08th August, 2012