The Members of
Plastiblends India Limited
Your Directors have pleasure in presenting the THIRTIETH ANNUAL REPORT and the AuditedFinancial Statements for the Financial Year ended 31st March 2021.
1 Financial Highlights (Rs in Lacs)
|PARTICULARS ||Year ended 31st March 2021 ||Year ended 31st March 2020 |
|Revenue from Operations (Net of Tax) ||57733.49 ||60587.24 |
|Other Income ||350.63 ||262.13 |
|Total Revenue ||58086.12 ||60849.37 |
|Other Expenditure ||50875.91 ||53842.56 |
|Earnings before Interest and Depreciation (EBIDTA) ||7208.21 ||7006.81 |
|Less : Interest ||301.68 ||148.22 |
|Depreciation ||1587.29 ||1705.01 |
|Profit Before Tax (PBT) ||5319.24 ||5153.58 |
|Less : Provision for Taxation || || |
|Current Tax ||1402.79 ||1434.38 |
|Deferred Tax ||38.06 ||53.54 |
|(Excess)/short provision for earlier years ||143.69 ||(51.88) |
|Profit After Tax (PAT) ||3734.71 ||3717.54 |
|Other Comprehensive Income ||1186.52 ||(461.36) |
|Total Comprehensive Income for the year ||4921.23 ||3256.18 |
The Board of Directors is pleased to share your Company's continued progress asreflected in its growth in margins and profitability inspite of challenging situations.
The brief highlights of operations for the Financial Year 2020-21 are as under :-
The revenue from Operations was Rs 57733 Lacs for FY 2020-21 as against Rs 60849 Lacsfor FY 2019-20.
Earnings before interest tax depreciation and amortisation (EBITDA) increased to Rs7208 Lacs in FY 2020-21 from
Rs 7007 Lacs in FY 2019-20 an increase of 2.87%.
Profit before tax increased to Rs 5319 Lacs in FY 2020-21 from Rs 5154 Lacs in FY2019-20 an increase of 3.21%.
Profit after tax increased to Rs 3735 in FY 2020-21 from Rs 3718 Lacs in FY 2019-20an increase of 0.46%.
Export Market continued to face severe headwinds and coupled with volatile currencyfluctuations impacted export revenue in FY2020-21.
Despite reduction in sales by 5% due to challenging pandemic situation Companyachieved EBITDA of Rs 7208 Lacs which is highest ever in the history of Company. EBITDAmargin has increased by approx. 100 bps to 12.50%. Similarly PBT of Rs 5319 Lacs ishighest ever in the history of Company.
As a part of its cost control measure Company has commissioned two solar power plantsat its units situated at Daman and Palsana in September 2020 which would help the Companyin conservation of energy and cost rationalisation. During the previous year i.e. FY2019-20 Company had received interest assistance of Rs 384 Lacs under the "Schemefor Assistance for Plastic Industry" of Gujarat Government towards borrowing forinvestment in Palsana Plant which was netted off in Finance cost. The remaining assistanceof Rs. 116 Lacs which was supposed to be received in FY 2020-21 is not yet receivedinspite of submission of claim.
Due to lockdown/COVID-19 impact the eligible export incentive to be received from DGFTby way of advance license/MEIS incentive was reduced by Rs 300 Lacs in FY 2020-21.
Huge volatility in Polymer prices were experienced during Q3 and most of the part ofQ4. Polymer prices hit multiyear high due to shortage issues. Similarly other input pricestoo escalated. The freight cost in export segment continued to be at all time high.Company in initial phase decided to partially absorb price increase and gradually passedit on to the customers. Due to timely action initiated Company had successfully minimizedthe impact of aforesaid issues.
However despite all these challenges profitability of the Company is on rise whichdemonstrate that the strategic steps taken by Company in past several years to havefinancial strength to change its product mix and move to more value added products andeffective cost rationalisation exercises at all level are yielding positive results.Various product family namely Additive Black Colour achieved highest ever sales value inhistory of Company.
In past several years Company had adopted technological advancement in timely mannerand done digitisation which has helped us overcome the challenges faced during COVID-19.
Due to slowdown in economic activity caused by COVID-19 pandemic large number ofmanufacturing companies had to cut down on workforce or employees had to face pay cuts orwork without pay which further compounded their difficulties. It is with great pride wewould like to mention that despite challenging times Company not only paid 100% of Salaryto all of its employees whether they were working from home or not working at all butalso gave increment to ensure that employees' morale remains high and they are able totake care of themselves and their families. Medical insurance with enhanced amount wasextended to cover family members of all the employees and Company took Group Term Life(GTL) Insurance policy for all its employees by which all its employees are covered withsum assured upto 1 time of their respective CTC Salary or Rs 10 lacs whichever is higher.The said Sum Assured is payable on death which gives financial support to family in caseof untimely death. In order to extend support for COVID-19 employees were also coveredunder "Home Care Treatment Plan". Here it would be noteworthy to point that ShriSatyanarayan G. Kabra CMD and Shri Varun S. Kabra VCMD has foregone their incrementsince last two years and had also relinquished their remuneration for the month of April2020 which was indicative of their sensitivity towards issues faced by employees.
The Company also believes in returning back to society and as a part of its CSRinitiative Company had contributed Rs 100 Lacs to "PM CARES FUND" during March2020 and in FY 2020-21 has also provided ventilators to state agencies and contributed tothe project in which meal was served to affected communities during the difficult periodof COVID-19 pandemic.
Company's outlook is very optimistic considering Indian economy is eyeing "V"Shaped recovery. The "Make In India / Atmanirbhar Bharat" initiative supportedby "Production Linked Incentive" will help several sectors to grow substantiallyto whom Company is serving. Company is confident about its growth trajectory in time tocome as it has several products in pipeline eyeing new geographies /new customerssupported by consistent strong financial ratios.
Your Company has significantly grown after each challenges be it demonetizationintroduction of GST and E Way bill Plastic bag ban etc. We are confident that we willfurther strengthen ourselves as all necessary measures in terms of mitigating the impactof COVID-19 pandemic are taken.
3 Dividend and Dividend Distribution Policy
The Board of Directors have recommended dividend of Rs 4.00 per share i.e. @ 80 % forthe year ended 31st March 2021. The total outflow amounts to Rs 1039.57 Lacs (Previousyear the Company has paid dividend of Rs 3.75 per share i.e. @ 75 % and the total outflowinclusive of DDT was Rs 1174.92 Lacs.) In terms of Regulation 43A of the Securities andExchange Board of India (Listing Obligations and Disclosures Requirements) Regulations2015 ("Listing Regulations") the Board of Directors of the Company hasformulated and adopted the Dividend Distribution Policy ('DDP'). The Board of Directorswhile taking decision for recommendation of the dividend will take guidance from thispolicy and would ensure to maintain a consistent approach to dividend pay-out plans. TheDividend Distribution Policy is available on the Company's website www.plastiblends.com
4 Transfer To Reserves
The Board of Directors have decided to retain the entire amount of profits for FY2020-21 in the Profit & Loss Account.
5 Transfer to IEPF of Equity Shares and Unclaimed Dividend
In terms of the provisions of Section 125 of the Companies Act 2013 read with theCompanies (Declaration and Payment of Dividend) Rules 2014 all unclaimed / unpaiddividend up to FY 2012-13 amounting to Rs 722858/- has been transferred to the InvestorEducation and Protection Fund and unclaimed / un-encashed dividend for the FY 2013-14 isdue for transfer to IEPF in November 2021. In compliance with the applicable Rules andafter complying with the requisite formalities Company will be transferring requisiteapplicable Equity shares to the designated demat account of IEPF
Authority. The details of the shareholders whose shares are liable to be transferred toIEPF can be accessed at Company's website viz. www.plastiblends.com.
During the year under review Shri Shreevallabh G. Kabra stepped down from the positionof Chairman of the Company due to his preoccupation with other responsibilities andcontinues to be Director of the Company. The Board of Directors place on record their deepsense of gratitude and appreciation for the invaluable contribution rendered ShriShreevallabh G. Kabra during his role as Chairman of the Company. Shri Satyanarayan G.Kabra was elected as Chairman of the Company. Shri Varun S. Kabra was elevated to theposition of Vice-Chairman of the Company.
Shri Varun S. Kabra Director of the Company will retire by rotation at the ensuingAnnual General Meeting and being eligible offers himself for re-appointment.
A brief resume of the Directors seeking appointment/re-appointment at the forthcomingAGM and other details as required to be disclosed in terms of Regulation 36(3) of theListing Regulations and Secretarial Standard on General Meetings (SS-2) forms part of theNotice calling the AGM.
7 Board Independence
Based on the confirmation/disclosures received from the Independent Directors and onevaluation of the relationships disclosed the following Non-Executive Directors areIndependent in terms of Regulation 16 of SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 and Section 149 (6) of the Companies Act 2013; 1) ShriPushp Raj Singhvi 2) Shri Sudarshan K. Parab 3) Shri Bajrang Lal Bagra 4) Shri Rahul R.Rathi 5) Smt Meena S. Agrawal
8 Annual Evaluation By The Board
In compliance with the Companies Act 2013 and Regulation 19 read with Schedule II ofSEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 the Board hascarried out the annual performance evaluation of its own performance the Directorsindividually as well as the evaluation of Committees. A structured questionnaire wasprepared after taking into consideration inputs received from the Nomination andRemuneration Committee members covering various aspects of the Board's functioning suchas adequacy of composition of Board and Committees Board communication timeliness andunbiased information of right length and quality of information Board culture executionand performance of specific duties obligations and governance.
A separate exercise was carried out to evaluate the performance of individual Directorsincluding the Chairman of the Board who were evaluated on parameters such as attendanceand participation in the discussion and deliberation at the meeting understanding role andresponsibilities as board member demonstration of knowledge skill and experience thatmake him/her a valuable resource for the board. The performance evaluation of theIndependent Directors was carried out by the entire Board. The performance evaluation ofthe Chairman and the Non-Executive Directors was carried out by the Independent Directors.The Directors expressed their satisfaction with the evaluation process.
9 Familiarisation Programme For Independent Directors
The Company conducted familiarisation programme for Directors during the year. Theprogramme aims to provide insights into the Company's business and familiarise Directorswith its various aspects and assist them in performing their role as Independent Director.The Company's policy on conducting the familiarisation program has been disclosed on thewebsite of the Company at http://www.plastiblends.com/Upload/PolicyOtherDoc/PLASTIBLENDS-FAMILIARISATION-PROGRAMME.pdf
10 Number Of Board Meetings
During the year 4 (four) meetings of the Board of Directors were held. The details ofthe Meetings are furnished in the Corporate Governance Report which forms part of thisAnnual Report.
11 Audit Committee
The details pertaining to composition of Audit Committee are included in the CorporateGovernance Report which forms part of this report.
12 Directors' Responsibility Statement
Pursuant to Section 134 of the Companies Act 2013 your Directors hereby confirm that
(i) in the preparation of annual accounts for the year ended 31st March 2021 theapplicable Accounting Standards had been followed along with proper explanation relatingto material departures;
(ii) the Directors had selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give the trueand fair view of the state of affairs of the Company as at end of the Financial Year endedon 31st March 2021 and of the profit and loss of the Company for the said Financial Year;(iii) the Directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities; (iv) the Directors had prepared the annual accounts on a "goingconcern basis"; (v) the Directors had laid down Internal Financial Controls to befollowed by the Company and such Internal Financial Controls are adequate and wereoperating effectively; (vi) the Directors had devised proper systems to ensure compliancewith the provisions of all applicable laws and such systems were adequate and operatingeffectively.
13 Credit Ratings
During the year credit rating agency CRISIL has reaffirmed CRISIL A + / Stable (LongTerm Rating) and CRISIL A1 (Short Term Rating) ratings to the Bank loan facilities availedby the Company.
14 Nomination And Remuneration Policy (NRP)
The NRP of the Company for Directors Key Managerial Personnel (KMP) and SeniorManagement Personnel is hosted on the website of the Company at the following web link :http://www.plastiblends.com/Upload/PolicyOtherDoc/ PLASTIBLENDS-NRC.pdf Disclosurepertaining to remuneration and other details as required under section 197 (12) of the actread with Rule 5(1) of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014 is enclosed as particulars of employee which forms part of thisreport.
15 Vigil Mechanism/Whistle Blower Policy
In compliance with the provisions of Section 177(9) the Board of Directors of theCompany has framed the "Whistle Blower Policy" as the vigil mechanism forDirectors and employees of the Company. The Whistle Blower Policy is disclosed on thewebsite of the Company athttp://www.plastiblends.com/Upload/PolicyOtherDoc/PLASTIBLENDS-VIGILMECHANISM.pdf
16 Prevention Of Insider Trading
The insider trading policy of the Company lays down guidelines and procedures to befollowed and disclosures to be made while dealing with the shares of the Company. Thepolicy has been formulated to regulate monitor and ensure reporting of deals bydesignated person/employees and maintain the highest ethical standards of dealing inCompany securities.
17 Internal Financial Controls
The Internal Financial Controls with reference to financial statements as designed andimplemented by the Company are adequate. During the year under review no material orserious observations has been received from the Auditors of the Company for inefficiencyor inadequacy of such controls.
18 Maintenance of cost records
As specified by the Central Government under sub-section (1) of section 148 of theCompanies Act 2013 the Company has maintained cost accounts and records.
19 Risk Management
Risk Management Committee has been constituted as per the requirement of Regulation 21of the Listing Regulations. The details pertaining to its Composition and meetings are setout in the Corporate Governance Report forming part of this Report. The policy on RiskManagement Policy which aims at enlarging shareholders value and providing an optimum riskreward trade off is uploaded on the Company's website www.plastiblends.com.
20 Corporate Governance
As required by Regulation 27 of the Listing Regulation a Report on CorporateGovernance is appended along with a Certificate of Compliance from the Auditors formingpart of this report. The Board of Directors of the Company adopted the Code of Conduct andthe same is posted on the Company's website. The Directors and Senior Management personnelhave affirmed their compliance with the said code.
21 Related Party Transactions
All contracts/arrangements/transactions entered by the Company during the FinancialYear with related parties were in the ordinary course of business and on an arm's lengthbasis. During the year the Company has not entered into any contract / arrangement /transaction with related parties which could be considered material in accordance with thepolicy of the Company on materiality of related party transactions.
The Policy on materiality of related party transactions and dealing with related partytransactions as approved by the Board may be accessed on the Company's website at thelink:http://www.plastiblends.com/Upload/PolicyOtherDoc/PBI-POLICY-ON-RELATED-PARTY-TRANSACTIONS.pdf.Your Directors draw attention of the members to Notes on financial statement which setsout related party disclosures.
M/s. Kirtane & Pandit LLP Chartered Accountants Pune were appointed as StatutoryAuditors for a term of 5 (five) consecutive years in the 28th AGM held on 27th July. 2019and hold office upto 33rd AGM to be held in the year 2024. The notes on financialstatements referred to in the Auditors Report are self-explanatory and do not call for anyfurther comments. The Auditors' Report does not contain any qualifications reservation oradverse remark.
In terms of section 148 of Companies Act 2013 read with Companies (Audit and Auditors)Rules 2014 and other applicable provisions if any of the Companies Act 2013 the Boardof Directors of your Company has appointed M/s. Urvashi Kamal Mehta & Co CostAccountants as the Cost Auditor of your Company to conduct audit of Cost Accountingrecords for Financial Year 2021-22 on the recommendation made by the Audit Committee.
The remuneration proposed to be paid to the Cost Auditors subject to the ratificationby the Members at the ensuing Annual General Meeting would be Rs 132000/- (Rupees OneLac Thirty Two Thousand Only) excluding applicable statutory taxes conveyance and out ofpocket expenses if any.
As required under provisions of section 204 of the Companies Act 2013 the report inrespect of the Secretarial Audit carried out by M/s. Bhandari & Associates CompanySecretaries in Form MR-3 for the FY 2020-21 form part of this report.
As regards the observations mentioned in the Secretarial Audit Report we wish toclarify that Company had contributed
Rs 100 Lacs to "PM CARES FUND" in FY 2019-20 as a token of our support tocombat COVID-19 pandemic in the hour of dire necessity inspite of fulfilling the mandatoryCSR obligation of the Company for that financial year which was allowed to be carriedforward and setoff against any shortfall in subsequent financial years accordingly theCompany has setoff the excess amount. As regards the registration of independent directorsin databank appropriate steps are being taken to get the registration.
23 Corporate Social Responsibility (CSR)
The Report on CSR activities as required under Companies (Corporate SocialResponsibility) Rules 2014 including a brief outline of the Company's CSR Policy totalamount to be spent under CSR for the Financial Year and amount spent is set out at CSRstatement forming part of this Report.
24 Business Responsibility Report (BRR)
Pursuant to Regulation 34(2)(f) of the Listing Regulations the Business ResponsibilityReport initiatives taken from an environmental social and governance perspective in theprescribed format is available as a separate section of this Annual Report.
25 Web link Of Annual Return
Pursuant to the provisions of section 134(3)(a) of the Companies Act 2013 web link ofthe Annual Return for the Financial Year ended March 31 2021 made under the provisions ofsection 92(3) of the Act is placed at http://www.plastiblends.com/Financial-Results
26 Material Changes
There have been no material changes and commitments if any affecting the financialposition of the Company which have occurred between the end of the Financial Year of theCompany to which the financial statement relate & the date of the report.
27 Particulars Of Loans Guarantees Investments
The particulars of loans guarantees and investments given/made during the FinancialYear under review and governed by the provisions of Section 186 of the Companies Act 2013have been disclosed in the financial statements.
28 Conservation Of Energy Technology Absorption And Foreign Exchange Earnings &Outgo
The particulars relating to conservation of energy technology absorption foreignexchange earnings and outgo as required to be disclosed under the Act forms part of thisreport.
During the year under review your Company did not accept any deposits in terms ofSection 73 of the Companies Act 2013 read with the Companies (Acceptance of Deposit)Rules 2014.
30 Significant & Material Court Orders
No significant and material orders have been passed by any Regulator or Court orTribunal which can have an impact of the going concern status and the Company's operationsin future.
31 Disclosure Under The Sexual Harassment Of Women At Workplace (PreventionProhibition And Redressal) Act 2013
The Company pursuant to the Section 4 of the Sexual Harassment of Women at workplace(Prevention Prohibition and Redressal) Act 2013 has constituted an Internal ComplaintsCommittee. During the year no complaint was lodged with the Internal Complaint Committee.
32 Particulars Of Employee And Related Disclosures
In terms of the provisions of Section 197 (12) of the Act read with Rules 5(1) of theCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014 a statementshowing the details required therein forms part of this report.
The statement containing names of top ten employees in terms of remuneration drawn andthe particulars of employee as required under Section 197(12) of the Companies Act 2013read with Rule 5(2) of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014 is provided in a separate annexure forming part of this report.Further the report and account are being sent to the members excluding aforementionedannexure. In terms of Section 136 of the Act the said annexure is open for inspection atthe Registered office of the Company. Any shareholder interested in obtaining a copy ofthe same may write to the Company Secretary.
33 MD & CFO Certification
Certificate from Managing Director and Chief Financial Officer of the Company pursuantto the Regulation 17 of SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 for the Financial Year 2020-21 under review was placed before the Boardof Directors of the Company at its meeting held on May 20 2021.
34 Secretarial Standard
The Company complies with all applicable Secretarial Standards issued by The Instituteof Company Secretaries of India and approved by the Central Government under Section118(10) of the Companies Act 2013 for the Financial Year ended 31st March 2021.
Your Directors would like to express their appreciation for the assistance andco-operation received from the Shareholders Bankers Government Authorities ExportPromotion Council Other Semi Government Authorities Stock Exchanges Customers DealersSuppliers and Business Associates at all levels during the year under review. YourDirectors also wish to place on record their appreciation for the committed services ofthe executives staffs and workers of the Company.
| ||For and on behalf of the Board |
|Place : Mumbai ||Satyanarayan G. Kabra |
|Date : May 20 2021 ||Chairman & Managing Director |
| ||(DIN : 00015930) |