PREMIER VINYL FLOORING LTD
Your Directors have pleasure of presenting the Sixteenth Annual Report and
Audited Accounts for the year ended 31st March, 1997.
The financial results of the Company for the year ended 31st March, 1997
are as follows : Year ended Year ended
31st March 31st March
Turnover 1,29,51,06,318 86,90,01,847
Operating Profit 20,08,01,345 15,48,76,585
Interest 9,25,28,843 6,13,00,406
Depreciation 2,53,28,849 2,23,60,680
written off 4,40,504 6,89,999
Profit before Tax 8,25,03,149 7,05,25,500
Provision for Tax 77,43,000
Net Profit 7,47,60,149 7,05,25,500
- Proposed Dividend
On Equity Shares 53,30,300 1,59,90,900
On Preference Shares 7,33,562
- General Reserve 1,40,00,000 2,50,00,000
- Debenture Redemption Reserve 62,50,000 2,62,50,000
- Preference Shares Redemption Reserve 50,00,000
Balance carried to Balance Sheet 4,34,46,287 32,84,600
The Board of Directors in its meeting held on 29th March, 1997 declared
Interim Dividend @ 17.5% p.a. on 1,00,000 Preference Shares of Rs. 100/-
each held by LIC Housing Finance Limited for the period from 30th October,
1996 to 31st March, 1997 as per terms and conditions of the issue of
With a view to plough back major part of the profits into operations to
overcome cash flow constraints, the Directors recommend payment of dividend
on equity shares @ 5% (previous year 15%) subject to approval of financial
institutions and bankers of the Company.
SALES AND GENERAL
Your Company has maintained a sustained thrust towards alround growth and
the operating results for the year adequately reflect the achievements.
During the year under review your Company has achieved higher turnover and
profits. The turnover of the Company has increased to Rs. 12951.06 lakhs
(Rs.1295.10 million) for the year as compared to Rs. 8690.02 lakhs (Rs.
869.00 million) during the previous year registering an increase of Rs.
4261.04 lakhs (Rs. 426.10 million), i.e. 49.02%. The net profit after
providing for depreciation has gone up to Rs. 747.60 lakhs (Rs. 74.76
million) as compared to previous year's figure of Rs. 705.26 lakhs (Rs.
70.53 million) - an increase of Rs. 42.34 lakhs (Rs. 4.23 million), i.e.
6.00%. On the exports front, your Company performed exceptionally well and
achieved an export turnover of Rs. 8505.74 lakhs (Rs. 850.57 million)
against last year's figure of Rs. 1962.85 lakhs (Rs. 196.29 million) - an
increase of 333.33%.
There was a minor fire in Company's factory godown at Sikandrabad on 8th
February, 1997 resulting in partial loss of godown building, electric
wiring & fittings and other materials of about Rs. 49.00 lakhs. The
building and other materials are insured and the matter is pending with the
Your Company has under consideration major diversification plans. The
proposed project will be financed by term loans/ECB/issue of new shares.
The proposal has been kept under wraps due to continued sluggish capital
Your Directors express their gratitude to the consortium of Bankers
comprising of Canara Bank, State Bank of India, The Sanwa Bank Ltd. and the
Benares State Bank Ltd. The Directors also place on record their gratitude
to The Federal Bank Ltd., for sanctioning to the Company working capital
facilities to avail of full assessed working capital facilities. The
Company does not envisage any constraint for working capital funds.
The Company accepted deposits during the year pursuant to provisions of
Section 58A of the Companies Act, 1956. The total amount of Fixed Deposits
held as on 31st March, 1997 was Rs. 1,00,00,000. There is no overdue or
CONSERVATION OF ENERGY
Your Company continues to give high priority to conservation of energy on
an on-going basis and as a result of these measures the consumption of
energy per unit of production has come down. The Company continues to give
priority to conservation of energy on a continuous basis.
As per Annexure - A'
FOREIGN EXCHANGE EARNINGS AND OUT-GO
The foreign exchange earnings and out-go during the year have been as
Earnings : Rs. 85,05,74,292
Out-go : Rs. 5,20,02,217
Your Company continues to be market leaders in Flexible PVC Flooring and
enjoys a formidable position in other products. The demand for the
Company's products has been increasing in domestic as well as international
markets. Your Company has been sourcing the importers abroad more
particularly in hard currency areas and the response has been encouraging.
Your Company's products are favourably competitive in the international
market. Continued export orders and excellent domestic market response to
the Company's products are all indications for still better performance
during the current and future years, unforeseen circumstances apart.
BOARD OF DIRECTORS
IDBI has changed its Nominee Director on the Board of the Company and
accordingly Shri R.C. Razdan has been nominated in place of Shri P.K.
Ramadasan with effect from 06th March, 1997.
The Board records its sincere appreciation of the contributions made by
Shri P.K. Ramadasan during his tenure as a Director of the Company.
Shri M.K. Vig and Shri Ashok Goenka are due for retirement by rotation at
the ensuing Annual General Meeting. They being eligible, offer themselves
for re-appointment. Shri O.N. Goenka is also being appointed as a non-
retiring Director and the Managing Director of the Company at the ensuing
Annual General Meeting.
Messrs De & Bose, Chartered Accountants, Auditors of the Company, retire at
the ensuing Annual General Meeting and are eligible for re-appointment.
PARTICULARS OF EMPLOYEES
None of the employees of the Company is covered under Section 217 (2A) of
the Companies Act, 1956 read with the Companies (Particulars of Employees)
Rules, 1975 as amended.
The Board expresses and places on record its deep and sincere appreciation
for the continued support and whole-hearted co-operation received by the
Company from the Central and State Governments, Industrial Development Bank
of India, The Industrial Finance Corporation of India Ltd., The Industrial
Credit and Investment Corporation of India Ltd., Canara Bank, Punjab
National Bank, State Bank of India, The Sanwa Bank, The Benares State Bank
Ltd., The Federal Bank Ltd., Canbank Mutual Fund, UTI, PNB Mutual Fund, The
Pradeshiya Industrial & Investment Corporation of U.P. Limited and LIC
Housing Finance Ltd., for all the help extended to the Company. The
Directors sincerely acknowledge the continued trust and confidence that
they have placed in the Company.
The Directors also wish to place on record their appreciation of the
devoted services of all the employees of the Company which have in great
way contributed to the Company's progress and without which these results
would not have been possible.
RESEARCH AND DEVELOPMENT (R & D)
1. Specific areas in which R & D carried out by the Company : Development
of new types of floorings, new shades and designs of flooring and
2. Benefits derived as a result of the above R & D : Developed new
floorings, shades, designs of flooring and sheeting.
3. Future Plan of action : To continue develop new floorings, range/shades
of Flooring, Sheeting during the year.
4. Expenditure on R & D
(a) Capital Nil
(b) Recurring Around Rs. 6,00,000
(c) Total Around Rs. 6,00,000
(d) Total R & D expenditure as a percentage of turnover : 0.05 per cent
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION
1. Efforts, in brief, made towards absorption, adaptation and innovation :
By training our man-power and by inviting foreign technicians from abroad
adopted and absorbed the technology fully.
2. Benefits derived as a result of the above efforts e.g. product
development, import substitution etc. : Saved money by continuous
improvement of technology.
For and on Behalf of the Board of Directors
M. K. Vig O. N. Goenka
Director Managing Director
Place : New Delhi,
Date : 28th June, 1997.