Jhaveri Flexo India Ltd. के निदेशक की रिपोर्ट

Mar 31, 2014

Dear Members,

The Directors are pleased to present the 28th Annual Report together with the audited Balance Sheet and the Statement of Profit & Loss for the year ended 31st March 2014.

1. FINANCIAL RESULTS: Amount in lakh

Particulars Current Year 31st Previous Year 31st March 2014 March 2013

Gross Sales 38844.77 34738.02

Less excise duty 3743.91 3387.46

Net Sales 35100.86 31350.56

Raw Material Consumption 27082.64 22784.11

Profit before Interest, Depreciation and Tax 1439.50 2964.18

Less: Interest 1510.29 1363.11

Profit before Depreciation and Tax -70.79 1601.07

Less: Depreciation 1240.45 1080.24

Profit before Tax -1311.24 520.83

Less: Provision for Taxation -221.68 159.19

Profit after tax -1089.56 361.64

Appropriation:

Dividend (proposed for the current FY) - -

Dividend Distribution Tax - -

Balance carried to balance sheet - 361.64

2. OPERATIONAL PERFORMANCE:

Results for the Financial Year 2013-14 are serious setback for the company. During the year under review although gross sales of the company crossed the figure of Rs. 350 crores but bottom line substantially went down and has registered net loss of Rs. 10.90 crores. Owing to increase in operational & financing cost coupled with slow growth in domestic market and high inflation rate have impacted business sentiments.

Due to negative bottom line the company has also faced liquidity crunch which adversely affected company''s business. Simultaneously rise on the price of raw materials and its availability on account of uncertainty of oil prices and volatility in foreign exchange has increased consumption cost.

Export turnover of the company getting new heights with an increase of 25.63% as compared to previous year of export sales 3567.41. Export sales are around 15% of net sales of domestic market during the year under review. Your Company has been recognized as Export House vide Export House Status Certificate issued by the Ministry of Commerce and Industry, Government of India on 14th November, 2012.

The business of the company is expanding in domestic as well as overseas market firmly which can be seen from year on year growth in turnover. The company is focusing to achieve operating efficiency and provide quality products to the customers and major thrust during the year would be to build business volumes through varieties of products targeting more customers in domestic and export markets.

3. DIVIDEND:

Yours Directors do not recommend any dividend for the financial year ended on 31st March, 2014.

4. FIXED DEPOSIT:

Your Company has not accepted any deposits under Section 58A of the Companies Act, 1956 from the public and as such no amount of principal and/or interest was outstanding as on 31.03.2014.

5. DIRECTORS:

Mr. Dinesh Shah retires by rotation at the ensuing Annual General Meeting and being eligible, offer himself for re-appointment.

6. SUBSIDIARY COMPANY:

The company does not have any subsidiary and holding company and therefore the requirement of attachment of results and other details of such companies are not applicable to the company.

7. INSURANCE:

All the properties of the company including Plant & Machinery, Stores and Stocks, wherever necessary and to the extent required have been adequately insured.

9. AUDITORS:

The auditors M/s. Bhatter & Co., chartered accountants hold office until the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment.

The Company has received a letter from M/s. Bhatter & Co, Chartered Accountants, to the effect that their reappointment, if made, would be within the prescribed limits under section 139 of the Companies Act, 2013 and rules made thereunder and that the firm is eligible for appointment and is not disqualified for appointment under this Act, the Chartered Accountants Act, 1949 and the rules and regulations made thereunder.

The auditors reported in its audit report that short term funds have been used for long term purposes, the board has discussed the same in its meeting and explained that due to sluggish market conditions and losses during the year under review and repayment of term loan the short term funds were used for long term purposes. Your board has also decided to take adequate steps to address this situation.

10. HUMAN RESOURCE AND INDUSTRIAL RELATIONS:

The Company has a team of able and experienced professionals and believes that the quality of its employees is the key to its success in the long run.

During the year under report the company continues to maintain cordial relationship with the workmen and staff working at all three units and offices of the company.

11. PARTICULARS OF EMPLOYEES:

The particulars of employees as required under the provisions of section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) (Amendment) Rules, 2002 is annexed hereto and forms part of the Director''s report.

12. DIRECTOR''S RESPONSIBILITY STATEMENT:

Pursuant to Section 217 (2AA) of the Companies (Amendment) Act, 2000, the Directors to the best of their knowledge and belief confirm that:

i. In the preparation of the annual accounts, the applicable accounting standards have been followed.

ii. Appropriate accounting policies have been selected and applied consistently and have made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31,2014 and of the Profit and Loss Account for the year ended March 31,2014.

iii. Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

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

13. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUTGO:

A) Conservation of Energy: The Company has installed Capacitor banks for improving lagging reactive power, maintaining power factor close to unity thus using of more active power. Every energy saving measure is being taken by your company on continues basis including using everywhere high luminous and less wattage fluorescent lamps, keeping all unused lights off in day etc. The Company is planning to install energy saving equipment from approved agency after equipment trials.

B) Technology Absorption and R&D: The company is continuously working to reduce the cost of production with consistent quality by its in-house R&D activities. The company has installed positive Air System at all its facilities to create more healthy and hygienic conditions in the work area.

Company does not compromise with the technology and recently has placed orders for purchase of technological advanced state -of -art machines. There is no import of technology and foreign collaboration except import of machine and spare parts.

C) Foreign Exchange earnings and outgo: During the year the company''s Foreign Exchange Earnings were Rs. 4482.03 lacs (Rs. 3567.41 lacs in previous year) calculated on FOB basis on account of export of goods and total expenditure on account of import of raw materials, consumable stores, repairs and foreign travelling in foreign currency was Rs. 9317.46 lacs (Rs. 7383.31 lacs in previous year) and the capital expenditure was Rs. 1855.85 lacs(Rs. 12.41 Lacs in previous year).

14. COST AUDITORS:

The Company has appointed Mr. Ritesh Naimesh Talati (Membership no. 26963), Cost Accountant, Mumbai for conducting audit of cost records of the company for the financial year 2014-15 in accordance with the provisions of section 148 of the Companies Act, 2013.

15. ACKNOWLEDGEMENT: Your directors wish to express and place on records its gratitude for the faith reposed in and cooperation extended to the company by all the stakeholders including, but not limited to bankers, government authorities, employees, suppliers, customers and shareholders of the company.



By Order of the Board of Directors

Place: Aurangabad Date: 01/09/2014 Rajul Sandeep Jhaveri Chairperson

---

Mar 31, 2010

The Directors are pleased to present the 24th Annual Report together with the audited Balance Sheet and Profit & Loss Account for the year ended 31st March 2010.

1. FINANCIAL RESULTS: Rs. in lakhs

Particulars Current Year 31st Previous Year 31st March 2010 March 2009

Gross Sales 20010.95 19173.12

Less excise duty 1582.56 2250.62

Net Sales 18428.40 16922.50

Raw Material Consumption 13717.88 12740.70

Profit before Interest, Depreciation and Tax 1482.06 1284.06

Less: Interest 425.13 434.59

Profit before Depreciation and Tax 1056.93 849.47

Less: Depreciation & Amortization 843.37 664.73

Profit before Tax 213.56 184.74

Less: Provision for Taxation 108.44 84.53

Profit after tax 104.92 100.21

Appropriation:

Dividend (proposed for the current FY) 62.90 62.90

Dividend Distribution Tax 10.69 10.69

Balance carried to balance sheet 1171.78 1140.45

2. PERFORMANCE: Turnover net of excise during the year ended on 31 st March 2010 was Rs. 18428.40 lakhs as against Rs. 16922.50 lakhs in previous year and net profit was Rs. 104.92 lakhs as against Rs. 100.21 lakhs in previous year registering an increase of approximately 9% in turnover and an increase of approximately 5% in net profit.

During the year under review export turnover increased by Rs. 216.70 lakhs registering growth of 153.30% compared to previous year. It shows satisfactory progress towards tapping export market. However during the year under review growth in top line and bottom line is not as much as expected mainly due to not fully operational of couple of new plants, non-supply of power in Luhari unit and challenges in pricing & input cost. Your directors are confident that during the year of 2010-11 all plants will be fully operational and new & existing developed products will come in main stream and shall increase our ability to cater to the domestic as well as overseas volumes in consumption to help more than mitigate these challenges.

3. DIVIDEND: Your directors have recommended a dividend of Rs. 0.25 per equity share having face value of Rs. 5/-each i.e. 5% keeping same rate as previous year. The proposed dividend including dividend distribution tax will absorb Rs. 73.59 lakhs for the financial year ended on 31 st March 2010. During the year the company has not transferred any amount to reserve account.

5. FIXED DEPOSIT: Your Company has not accepted any deposits under Section 58A of the Companies Act, 1956 from the public.

6. DIRECTORS: Mr. Dinesh Shah and Mr. Ranjan Gupta retire by rotation at the twenty fourth annual general meeting and being eligible, offer themselves for reappointment.

Mr. Mrunal Jhaveri was appointed as Additional Director of the company in October 2009 and is actively looking after marketing strategy of the company specifically companys consumer pack Klin Wrap. The Board of Directors appointed him as a whole time director of the company with effect from 28th January 2010.

Mr. Abhishek Jhaveri was appointed as Director in the Annual General Meeting of the Company held on 08th September 2008. Seeing his involvement into Production and Manufacturing activities of Silvassa Unit and his up to date knowledge of production techniques and methods, the Board of Directors appointed him as Whole Time Director of the company with effect from 28th January 2010.

In view of significant contribution for the growth of the Company, the Board of Directors of the company has promoted Mr. K. K. Sadani as Jt. Managing Director from the post of executive director with effect from 28th May 2010 for a period of 5 years.

The appointment/re-appointment of above said directors shall be put forth at the ensuing Annual General Meeting for the members approval.

In accordance with the provisions of Clause 49 of the listing agreement with the stock exchanges, brief particulars of the above said directors are provided in the notes annexed/explanatory statement to the notice of the Annual General Meeting and are forming part of this Annual Report.

7. INSURANCE: All the properties of the company including Plant & Machinery, Stores and Stocks, wherever necessary and to the extent required have been adequately insured.

8. AUDITORS: The auditors M/s. Bhatter & Co., chartered accountants hold office until the conclusion of the ensuing Annual General Meeting and have given their consent for re-appointment. A certificate from the Auditors has been received to the effect that their re-appointment, if made, would be within the prescribed limits under Section 224 (1B) of the Companies Act, 1956.

9. PARTICULARS OF EMPLOYEES: The particulars of employees as required under the provisions of section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) (Amendment) Rules, 2002 is annexed hereto and forms part of the Directors report. However, as per the provisions of section 219 (1) (b) (iv) of the Companies Act, 1956 the report and the Accounts are being sent to all shareholders of the company excluding the aforesaid information. Any shareholder interested in obtaining such particulars may write to the Company Secretary at the registered office of the company.

10. DIRECTORS RESPONSIBILITY STATEMENT: Pursuant to Section 217 (2AA) of the Companies (Amendment) Act, 2000, the Directors to the best of their knowledge and belief confirm that:

i. In the preparation of the annual accounts, the applicable accounting standards have been followed.

ii. Appropriate accounting policies have been selected and applied consistently and have made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31,2010 and of the Profit and Loss Account for the year ended March 31,2010.

iii. Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

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

11. HEALTH, SAFETY AND ENVIRONMENT: The health and medical services are accessible to all employees. The projects and activities are planned and designed with environment protection as an integral part to ensure a safe and clean environment for sustainable development. To ensure better safety measures and an improved environment the company is taking special care during the ongoing expansion project of the company.

12. HUMAN RESOURCE DEVELOPMENT: The current industrial scenario and the long term vision of the company pose unique challenges to the Human Resource function. Systems and processes are being developed with the intention of building a performance-oriented and customer focused culture that enhances organizational capability, excellence and vitality, while fostering an enabling and empowering work environment.

13. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUTGO:

A) Conservation of Energy: Though your company is not a power intensive industry, the company continues its efforts to reduce energy usage by adopting various methods of energy savings. Your company continuously evaluates new technologies and has endeavored to optimize the use of energy resources and taken adequate steps to avoid wastage.

B) Technology Absorption and R&D: The company always endeavor to achieve cost reduction and productivity by its in-house R&D. In this area the company has:

Installed positive Air System at all its facilities to create more healthy and hygienic conditions in the work area. In-house developed a process of incorporating anti fogging additives such a way that do not change the end properties of the film.

It has always been the Companys endeavor to emphasize on latest development in state-of-art technology. Personnel have been deputed from time to time abroad to achieve and keep abreast of latest development and thereafter transform the same to indigenous products/technology, wherever applicable.

The Company has not imported any technology; however, the Company has imported new and latest machineries/parts during the year under review.

C) Foreign Exchange earnings and outgo: During the year the companys Foreign Exchange earning were Rs.358.06 Lacs (Rs. 141.36 lacs in previous year) on account of export of goods and total revenue expenditure in foreign currency was Rs.3559.02 Lacs (Rs. 2951.97 lacs in previous year) and the capital expenditure was Rs. 94.52 Lacs (Rs. 2063.00 lacs in previous year) on account of expansion cum diversification plans of the company.

14. LISTING: The Equity shares of the company are listed on Bombay Stock Exchange Limited and the Calcutta Stock Exchange Association Ltd.

15. CORPORATE GOVERNANCE & MANAGEMENT DISCUSSION AND ANALYSIS: As required under clause 49 of the Listing Agreement with the Stock Exchange, Corporate Governance, Management Discussion and Analysis Report form part of the annual report. A certificate from the auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated under Clause 49 of the Listing Agreement is attached to this report.

16. ACKNOWLEDGEMENT: Your Directors place on record their deep appreciation and gratitude for the valuable support received from all the customers and suppliers. Your directors appreciate the sincere efforts put in by all the employees at all levels during the year under review. Your directors wish to express and place on record its gratitude for the faith reposed in and cooperation extended to the company by the bank, government authorities and shareholders of the company.

By Order of the Board of Directors

Place: Mumbai Date: 12.11.2010 Rajul Sandeep Jhaveri

Chairperson