MANIYAR PLAST LIMITED
ANNUAL REPORT 2002-2003
The Directors are placing herewith the Nineteenth Annual Report together
with Audited Statement of Accounts for year ended 30th September, 2003.
1. FINANCIAL RESULTS:
The financial results for the period ended on 30.09.2003 as compared to the
previous year are as under:
Current year Previous year
Gross Sales 1678.24 1552.31
Profit/ (Loss) before
interest, (179.11) (136.61)
Depreciation and Taxation
Interest 1020.30 1022.45
Depreciation 240.53 223.85
Provision for taxation -
Profit/Loss after taxation (1439.94) (1392.92)
Add: Balance b/f
Less Adjustment relating to previous year - -
Surplus available for appropriation - -
Dividend on equity shares - -
Transfer to General Reserve - -
Carried forward to next year -6689.30 -5249.36
In view of huge losses during the last and current year, directors are not
in a position to recommend any dividend.
3. REVIEW OF OPERATION:
The year in retrospect was a tough one for the Indian Industry in general.
The moulded furniture industry was not an exception to it Though there was
increase in the sales in general the margins remained very low. Raw
Material prices have remained a key factor in the operations which during
the calendar 2002 saw its all time peak and remained the same more or less
during the part of this year. The fluctuating level of input prices and
intense competition from small producers have contributed to further loss
in the moulded furniture products.
The sale of the moulded furniture products marginally increased due to the
introduction of the new models and improvement in the old models. The
company is looking for tie-up with other small manufacturers for their
moulds to manufacture chairs in the Company's name and get favourable
market for its existing . range of products. The turnover of the Company
for the period under priew was Rs. 1678.24 Lacs against the turnover of
Rs.1552.31 Lacs in the preceding year registering an increase in the
turnover by around 8% on annualised basis.
The Profit before interest and depreciation continued to be negative at
As per the directions of the Hon. BIFR, the Company had submitted a revival
proposal to IDBI, and in the joint meeting held on 12/09/2003 with IDBI &
all the bankers, it had been decided to conduct a Techno Eco Viability
study (TEV) of the Company, As soon as the (TEV) Study Report is approved
by the Banks and IDBI, it will be submitted to Hon. BIFR for its approval
and a revival plan will be chalked-out.
The Company had gone in appeal with Hon-AAIFR, which came late and the
advertisement by IDBI for change of mgt. was already published in the
newspaper, hence the Company withdraw its appeal.
4. PROSPECTS FOR THE CURRENT YEAR:
Though the sale of the Moulded Furniture products increased in the past
year, the impact of the increased sale could not be seen on the
profitability. The Company is sure to weave profit in the current year if
the interest burden is waived off as per the revival proposal submitted to
IDBI. Moreover with the availability of funds the Company can utilise the
capacity of its machines to the full extent.
The Company is also planning to introduce new models further as per the
market taste and consumer demand in the current year by doing tie-up with
other small manufacturers in the wine segment
Though some of the Court cases have been solved, many are still pending.
The Company is taking all measures to recover the dues against the cheques
bounced by the distributors and is selling the goods on cash payment basis
The directors are targeting to get highest level of output from the woven
sacks segment as well. With the introduction of the new labour law by the
Government for 50 Kg. packing the Company is confident that the demand for
its product woven sacks will definitely increase Margins are sure to
increase at; the demand will increase for the bags. The government has
already allowed the Sugar industry to pack 20% Sugar. In Plastic Wovon
Flogs It is also expected that the packing of Food Grains will also be
allowed in the Plastic bags, thereby resulting in higher profit margins.
Now that new models have been introduced and with increase in the demand
for the bags the Directors certainly feel that the lost market share could
be gained and there will be a huge increase in the sales of the Company in
the current year.
5. DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to the requirements under section 217 (2AA) of the Companies Act,
1956, it is hereby confirmed.
i) That in the Preparation of the Annual Account for the year ended on 30th
Sept., 2003, the applicable Accounting standards have been followed.
ii) That the Directors selected such accounting policies and applied them
consistently and made judgements and estimates that were reasonable and
prudent so as to give a true and fair view of the state of affairs of the
Company as at the end of the financial year.
iii) That the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the companies Act, 1956 for safe guarding the assets of the
company and for preventing and detecting fraud and other irregularities.
iv) That the Directors had prepared the accounts for the year ended 30th
Sept, 2003 on a going concern basis.
6. FIXED DEPOSIT
The Company has not accepted any Fixed Deposits from the public during the
Mr. Ashok Jawale retired by rotation and is eligible for reappointed.
Members are required to appoint Auditors and fix their remuneration. M/s
S.G. Deshpande & Associates, Chartered Accountants, Jalgaon the retiring
Auditors, are eligible for reappointment. The company has received a
Certificate from them to the effect that their appointment if made, will be
within the prescribed limits under Section 224 (1B) of the companies Act
9. AUDITORS REPORT
The auditors have submitted their Report alongwith Notes on Accounts for
the year ended 30/092003. Your Directors are of the opinion that Notes,
comments. remarks of the Auditors are self explanatory and therefore, do
not call for any further comments arid explanations.
10. PARTICULARS OF EMPLOYEES
The Company is having no employee drawing salary of Rs. 24,00,000/- P.A. or
more or Rs. 2,00,000/- per month or more for a part of the year in
pursuance of the provisions of Section 217 (2A) of the Companies Act, 1956
read with the Companies (Particulars of Employees) Rule 1975, as amended.
11. MATERIAL CHANGES
During the period under review the Company has purchased one Chair Mould in
Moulded Furniture Plant & one Automatic Cutting & Printing Machine in woven
sacks plant, both the Assets were of worth Rs. 51.50 Lacs.
12. ENVIRONMENTAL FACTOR
The by-products & wastes generate by Company's production process are not
hazardous and dangerous to the surrounding atmosphere & pollution of the
Yours Directors wish to place on record their appreciation of the
continuous support received by the Company from IDBI, UBI, BOI, SBI, its
Bankers, Business Association as well as the employees.
14. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
EARNING AND OUTGO
Additional information on conversation of energy, technology absorption and
foreign exchange earning and outgo as required to be disclosed in terms of
Section 217 (1) (e) of the Companies Act, 1958, is annexed.
For and on behalf of the Board,
Place : Jalgaon, Y. K. MALPANI
Date : 29th November, 2003 (Executive Director)
FORM FOR DISCLOSURE OF PARTICULARS WIT'" RESPECT TO CONSERVATION OF ENERGY
A. Power and FaN Consumption
1. Electricity 2003-2004
Units (KWH) : 35,00,445
Total Amount (Rs.) 1,29,33,956
Average rate per Unit (Rs.) : 3.69
b. Own Generation
Through Diesel Generator
Units (KWH) N.A.
Units/litre of diesel oil
2. Furnance Oil and LSHS
Qty (MT) -
B. Consumption per Unit of Production
Electricity Consumption (KWH)MT @1021.17
units per MT Form 'B' is not applicable
as there are no R&D expenses
Rs. in Lacs
C. Foreign Exchange Earned (FOB) 35.82 Lacs approx.
Incurred 0.15 Lacs