board of directors dr. g.v.chalapathi sri … · sri. g.v.gopinath, as relatives, are interested....
TRANSCRIPT
Annual Report 2009 - 2010
BOARD OF DIRECTORS
Dr. G.V.CHALAPATHI ManagingDirector* SRI G.RADHAKRISHNA JointManagingDirector**SRI G.S.SRIDHAR ExecutiveDirector(Operations)SRI G.V.GOPINATH ExecutiveDirector(FinanceandMarketing)SRI M.RAVINDRA REDDY DirectorSRI S. RAMAKRISHNAN DirectorSRI M.V.CHANDRASEKAR DirectorSRI B.SURENDER DirectorSRI G.P.N.GUPTA AdditionalDirector***SRI RAJU SWAMY AdditionalDirector***SRI SANJAY RAMASWAMI AdditionalDirector****hasresignedfromtheofficeasManagingDirectorw.e.fApril01,2010.**hasbeenredesignatedfromJointManagingDirectortoManagingDirectorw.e.fApril01,2010.***hasbeenappointedastheAdditionalDirectorw.e.fMay27,2010.
STATUTORY AUDITORS COMPANY SECRETARY AND M/s. M.SRINIVASAN & ASSOCIATES COMPLIANCE OFFICER CharteredAccountants, MR. V.RAMESHNo.5,9thFloor,BWingParsnManere602,AnnaSalai,Chennai-600006
BANKERS WORKSThe Karnataka Bank Ltd. ٭ Sholiyapalayam Village, Sholavaram,ThiruvallurDist. Chennai-600067,TamilNadu.SOLICITOR ٭ No.157/1, GNT Road, Chinnambedu PO.Sri R.Sundarrajan,Advocate,Chennai. Kavarapet,ThiruvallurDist. PIN601206,TamilNadu,Assisted Pvt.Industrial Estate ,6-6 ٭ Nellore–524004.A.P.
REGISTERED OFFICE REGISTERED OFFICE W.E.F JUNE 21, 2010No. 46, Halls Road, Kilpauk, “S.K.Enclave” No.4, (Old No.47)Chennai 600010 Nowroji Road, Chetpet,Phone:26451722,26461415,26452325 Chennai600031 Fax:91-44-26451720 Phone:26451722,26461415,26452325,E-Mail:[email protected] Fax:91-44-26451720Website:http://www.blissgroup.com E-Mail:[email protected] Website:http://www.blissgroup.com
REGISTRAR AND SHARE TRANSFER AGENT LISTING:M/S.Cameo Corporate Services Ltd., The Bombay Stock Exchange Ltd., andSubramaniamBuilding,No.1, TheMadrasStockExchangeLtd.Club House Road, Chennai - 600 002.
Annual Report 2009 - 2010
S.No Topic Page No.
1 Notice of Annual General Meeting 01
2 Report of the Directors 05
3 Report on Corporate Governance 12
4 Auditor’s Report 22
5 FinancialStatements 26
6 Balance sheet abstract and Company’s General Business profile 46
7 Attendanceslip&Proxyform End
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Annual Report 2009 - 2010
NOTICE
NOTICEisherebygiventhatthe19th ANNUAL GENERAL MEETING of the members of the Company willbeheldat10.30a.m.onThursday,theJuly29,2010atTAMILNADUFOUNDATIONINC.USA,27,Taylors Road, Kilpauk, Chennai – 600 010 to transact the following business:
ORDINARY BUSINESS:
1. Toreceive,considerandadopttheauditedBalanceSheetoftheCompanyasat31stMarch,2010andtheProfitandLossAccountfortheyearendedonthatdateandthereportsoftheDirectorsandAuditorsthereon.
2. To appoint a Director in place of Sri. S.Ramakrishnan who retires by rotation and being eligible, offershimselfforre-appointment
3. ToappointaDirectorinplaceofSriB.Surenderwhoretiresbyrotation.
4. ToappointAuditorsand fix their remuneration.TheretiringAuditorsMessrs.M.Srinivasan&Associates,CharteredAccountantsareeligibleforre-appointment.Inthisconnectiontoconsiderandifthoughtfit,topass,withorwithoutmodification(s),thefollowingresolutionasanordinaryresolution:
“RESOLVED THAT Messrs. M.Srinivasan & Associates, Chartered Accountants, be and areherebyappointedas theauditorsof theCompany toholdoffice from theconclusionof thisAnnual General Meeting till the conclusion of the next Annual General Meeting on a remuneration to be determined by the Board of Directors.”
SPECIAL BUSINESS:
5. Toconsiderandifthoughtfit,topass,withorwithoutmodification,thefollowingresolutionasan Ordinary Resolution:
“RESOLVED THAT Sri. G.P.N.Gupta, who was appointed as Additional Director at the meeting oftheBoardofDirectorsheldon27thMay2010andwhoholdsofficeassuchuptothedateof this Annual General Meeting of the Company and in respect of whom notices under Section 257oftheCompaniesAct,1956hasbeenreceivedfromamembersignifyinghisintentiontopropose Sri G.P.N.Gupta as a candidate for the office of Director of the company, be and is hereby appointed as a Director of the Company liable to retire by rotation.”
6. Toconsiderandifthoughtfit,topass,withorwithoutmodification,thefollowingresolutionasan Ordinary Resolution:
“RESOLVED THAT Sri. Raju Swamy, who was appointed as Additional Director at the meeting oftheBoardofDirectorsheldon27thMay2010andwhoholdsofficeassuchuptothedateof this Annual General Meeting of the Company and in respect of whom notices under Section 257oftheCompaniesAct,1956hasbeenreceivedfromamembersignifyinghisintentionto
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Annual Report 2009 - 2010
propose Sri Raju Swamy as a candidate for the office of Director of the company be and is herebyappointedasaDirectoroftheCompanyliabletoretirebyrotation.
7. Toconsiderandifthoughtfit,topass,withorwithoutmodification,thefollowingresolutionasan Ordinary Resolution:
“RESOLVED THAT Sri. Sanjay Ramaswami, who was appointed as Additional Director at the meeting of the Board ofDirectors held on 27thMay 2010 andwho holds office as such upto the date of this Annual General Meeting of the Company and in respect of whom notices underSection257oftheCompaniesAct,1956havebeenreceivedfromamembersignifyinghis intention to propose Sri Sanjay Ramaswami as a candidate for the office of Director of the companybeandisherebyappointedasaDirectoroftheCompanyliabletoretirebyrotation.
ByOrderoftheBoard For Stanpacks (India) Ltd
Place : Chennai V.Ramesh Date : May27,2010. CompanySecretary
NOTES:
1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND THE PROXY NEED NOT BE A MEMBER. THE PROXY FORM DULY STAMPED AND EXECUTED SHOULD BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOT LESS THAN 48 HOURS BEFORE MEETING.
2. Members / Proxies should bring the Attendance slip duly filled in for attending the meeting.
3. Members are requested to bring their copy of the Annual Report. No additional copies will be providedatthevenue.
4. Members are requested to intimate to the Company, queries, if any, regarding the accounts/notice,not lessthansevendaysbeforethemeetingtoenablethemanagementtokeeptherequiredinformationreadilyavailableatthemeeting.
5. The Register of Members of the Company will remain closed from 23rdJuly2010to29thJuly,2010(bothdaysinclusive).
6. MemberswhoholdsharesindematerializedformarerequestedtobringtheirClientIDandDPIDnumbersforeasyidentificationofattendanceatthemeeting.
7. AsrequiredunderClause49oftheListingAgreementabriefbackgroundoftheDirectorsproposedforreappointmentandappointmentarefurnishedbelow:
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Annual Report 2009 - 2010
RESUME OF THE DIRECTORS BEING APPOINTED
AsrequiredunderClause49oftheListingAgreementwiththeStockExchanges,abriefbackground,functionalexpertiseof thedirectorsproposed forappointmentare furnishedbelowalongwith thedetailsofcompaniesinwhichtheyaredirectorsandthecommitteesofwhichtheyaremembers:
Name Qualification & Experience in
the field
Suitability to the post Other Companies in which interested as
Director or member of Committee of Directors
Sri G.P.N.Gupta DegreeinCommerce
Hehasmorethan35yearsexperienceinbusinessparticularlyinPackagingIndustry.
HeistheManagingDirectorof M/s. Jumbo Bag Limited.
Sri Raju Swamy MA(Hons)Economics
Hehasmorethan24yearsasanindependentmanagementconsultant
Member-InstituteofManagementConsultantsIndia
Member-ConfederationofIndianIndustry.
Member-TheIndusEntrepreneurs.
Member-NationalInstituteofPersonnelManagement.
Member-BangaloreManagementAssociation.
Member-MysoreChamberofCommerce&Industry
SriSanjayRamaswami
L.L.BattheUniversityofHull,UnitedKingdom
Hehaswidepracticeincivil,criminal,companylaw,banking,labouradministrativelaws,municipallawsandArbitrationlaws
FormerMember–TamilNaduLegislativeAssembly.
Member–CommitteeonDelegatedLegislation,TamilNaduLegislature.
Member–PublicUndertakingsCommittee.
Chairman–TamilNaduPublicAccountsCommittee.
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Annual Report 2009 - 2010
RESUME OF DIRECTOR REAPPOINTED:
Sri S.Ramakrishnan: He is a Science Graduate and has been serving as a Director of the Company since 2002. He is a member of Audit Committee, Selection/Remuneration Committee and Shareholders Investors Grievance Committee of the Company. He was the Director in M/s.Abbott Laboratories and amemberofOPPIMarketingCommittee,ProfessionalMarketingConsultants,AlumniofStaffCollege,Hyderabad,hewasthepastmemberofIndianSocietyofTraining&Development.Heiswellversedin handling production and workforce problems and HRD needs. He a Senior Marketing Consultant with anexperienceofover40yearsandextensivelytravelledinIndiaandabroad.HeisnotholdinganyshareintheCompany.HeisnotadirectorinanyotherCompany.
8. ShareholdersarerequestedtocheckwhethertheyhaveencashedDividendWarrantsforearlieryears.IftheDividendWarrantsarelostorhavebecometime-barred,pleaseapplyforDemandDraftinlieuofthoseDividendWarrantsbeforethelastdateindicatedbelow.
Dividendfortheyear
ended
Rate of Dividend
Dividendwarrantdated
DateonwhichUnpaidamountsrequiredtobepaidto the Central Government
Shareholdersshouldapply
latestby
31.3.2005 5% 27.09.2005 11.10.2012 17.09.2012
31.3.2006 5% 14.10.2006 27.10.2013 03.10.2013
EXPLANATORY STATEMENT PURSUANT TO SECTION 173(2) OF THE COMPANIES ACT, 1956
ITEM NO. 5 - 7
ThequalificationandexperienceastabledaboveadequatelysatisfiestheireligibilitynormsforholdingthepostsandmembershipintheCompanyanditsBoard.ThereisnodoubtthattheCompanywillgrowwellbyutilizingtheirrichknowledgeandexperience.Hence,theBoardrecommendsthattheirappointmentbeapprovedbytheshareholders.
None of the Directors are interested in the appointment of Sri. Raju Swamy and Sri Sanjay Ramaswami. In the case of Sri. G.P.N.Gupta, none of the directors except Sri. G.Radhakrishna, Sri G.S.Sridhar and Sri. G.V.Gopinath, as relatives, are interested.
TheBoardrecommendstheresolutionsgivensuprafortheapprovaloftheshareholders.
ByOrderoftheBoard For Stanpacks (India) Ltd
Place : Chennai-600010 V.Ramesh Date : May27,2010. CompanySecretary
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Annual Report 2009 - 2010
REPORT OF THE BOARD OF DIRECTORS AND MANAGEMENT
DISCUSSION AND ANALYSIS
To,
The Members,
Your Directors have pleasure in presenting their Report and the Audited Accounts of the Company for theyearended31stMarch2010.
FINANCIAL RESULTS:
ThesalientfeaturesoftheCompany’sfinancialresultsfortheperiodunderreviewareasfollows:-
Rs. In lakhs
2009-2010 2008-2009
Income
SalesandotherIncome 2702.32 2959.82
ProfitbeforeInterest,Depreciation&Taxes 194.86 85.33
Interest 185.73 203.67
Depreciation 98.54 97.43
Profit Before Tax (90.92) (213.86)
DeferredTax (27.42) (106.24)
FringeBenefitTax - 2.10
ProfitAfterTax (63.50) (109.72)
Profitofearlieryears (11.65) 98.07
Profit / (Loss) (75.15) (11.65)
DIVIDEND:
TheDirectorshavenotrecommendedanydividendduringtheyearunderreview,asthecompanydidnothaveprofitstodistribute.
OPERATIONS:
Thecompanymadeaturnoverof2694.47Lakhsasagainsttheturnoverof2887.84lakhsduringtheprevious year. This has resulted in the loss of Rs 64 lakhs. The cost of operation increased due to increaseincostofpoweronaccountofpowershutdownsandalsoincreaseinlabourcost.TheshiftingoftheMarasurfactorytoChennaihasresultedinthelossofproduction.
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Annual Report 2009 - 2010
TheMarasurunitdealswithproductionofagronitbags.Thedemandforwhichhasgreatlyreduced.ThescopeforexpansionatMarasur isnot inconsonantwiththecurrentmarketsituations inTamilNadu.Withoutexpansionthecostofrunningistoohightocontinuetheproductionthere.ConsideringallthesetheBoardhadapprovedtheshiftingofthesametoChennai.ThustheplantandmachineriesinMarasurUnithasbeenshiftedtoChennaiUnit.
Regarding Auditors comment in clause xvi of the annexure to the auditors report that “the company has used Rs. 97.98 Lakhs funds on short term basis for long term investment.”
ThecompanywouldliketoinformtheshareholdersthatduringtheyearthecompanyhadtoshifttheoperationfromMarasur(Bangalore)toChennaiforsynergyinoperationandtoconsolidateoperations.Thetemporarydisruptionofproductionduringthisperiod,thecostofrelocationinitialstartupexpensescoupledwiththeadditionalpowerrequirementcostwasthemajorreason,forthis.Anamounttothetune of around Rs. 37 Lakhs was invested towards the same.
Thebenefitsofthiswillaccruetoyourcompanyduringtheensuingfinancialyear.Yourcompanyisconfidentofnullifyingthiseffectduringthecurrentfiscal.
It is pertinent here to inform the shareholders that the balance amount was utilised towards Repayment ofTermLoan.
SECTOR AND INDUSTRY-WISE DEVELOPMENTS
Growth of Industry:
Therecessionarytrendcontinuedinthefinancialyear2009-10thoughitpickedupinthelaterhalfoftheyear.Thistrendmadecostcuttingacrossallsectorsmakingitdifficulttorecoveranyincreaseincost.Theraw-materialpricesincreasedinthelastquarterofthefinancialyear.
However, the year 2009 saw a significant slowdown in India’s official GDP growth rate to 6.1%.
Growth of customers and products:
Yourcompanyconsolidateditsclienteleandtheproductstoensurethevolumesofscaleareachievedtokeepthecostofproductionlow.Alsothecompanyhasbeenfocusingonitssouthernclienteletoensurethatthelogisticsdokeeptheregularoff-takefromthem.
OPPORTUNITIES AND THREATS
Opportunities:
Establishedsetofclientelegivesenoughopportunitiestoexpandtheproductionlevels.
Withitsrangeofproductsithasanadvantageoveritscompetitors.
Thewovensackindustryholdsimmensepotentialinvarioussectorswithgrowingdemand.
Threats TheincreaseinexcisedutyhasaffectedtherealizationsofAgronit. Therawmaterialpricefluctuationsaffectthesalesaswellasthebottomline.
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Annual Report 2009 - 2010
Thegrowinguseofrecycledplasticsbycompetitorsaffectsthesales.
Newconvertersareemerginginthefieldduetoavailabilityofsemifinishedmaterial.
Therehasbeencontinuedacuteshortageofpowerduetowhichproductionhadtobecurtailed.Powercut&fluctuationshasresultedinincreaseinwaste.
Theincreaseincostoflabourwillaffecttherealizations.
Risks and Concerns
The increase in labour cost of skilled and unskilled labour has resulted in high cost ofproduction.
Thepowershortagehashamperedtheproductionlevelsofthecompany.
Reservation of Jute packaging in food grains and other sectors.
Risk alleviation
Thefocusistoincreasethebulkvolumeclients.Thiswillenablethecompanytokeepthecostofproductionlow.
To ensure the full capacity utilization and also increase productivity by mechanization andtraining.
Ensurequality,serviceandpromptdeliveryascommitted.
Tokeepinventoriestotheminimumlevelandreducewastages.
Withwiderangeofproductsandclientele,theshift inthesectorwillenablethecompanytomaintainitsproductionlevels.
FIXED DEPOSITS:
ThetotalamountofFixedDepositsfromthePublicandShareholdersoftheCompanyasat31stMarch,2010 was Rs. 17,90,000 /-. There was no default in repayment of deposits or interest thereon on the due dates and there was no overdue/unclaimed deposit at the end of the year.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
TheCompanybelievesinconstantimprovementandstrivesforbettersystemsandcontrolsateverystage.TheCompanyhasadoptedvariouscontrolandmonitoringmechanisms,whichareauditedbyanindependentInternalAuditor.Thecompanyhasaproperandadequatesystemofinternalcontrolstoensurethatallassetsaresafeguardedandprotectedagainstlossfromunauthorizeduseordisposition,andthosetransactionsareauthorized,recordedandreportedcorrectly.
Theinternalcontrolisdesignedtoensurethatfinancialandotherrecordsarereliableforpreparingfinancial informationandotherdata,and formaintainingaccountabilityofassets. InternalAudit isconducted by M/s. J.V .Ramanujam & Co, Chartered Accountants, Chennai, the Internal Auditors of the CompanyandthereportoftheInternalAuditorsarereviewedbythemanagementandplacedbeforetheAuditCommittee.
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Annual Report 2009 - 2010
TheAuditCommitteealsoevaluatestheadequacyandeffectivenessoftheinternalcontrolsystemsandmonitorstheactiontakenpursuanttothecommittee’sobservations.AlltheshortcomingsintheregularactivitiesarebroughttothenoticeoftheCommitteeandthenalsototheBoardandcorrectiveactionsarebeingtaken.
DIRECTORS:
Sri. S.Ramakrishnan, Director retires by rotation at the ensuing Annual General Meeting and being eligible,offershimselfforre-appointment.
Sri B.Surender, Director retires by rotation at the ensuing Annual General Meeting.
During the year, Dr. G.V.Chalapathi, Managing Director and Sri. G.Muralidhar Director have resigned from the Directorship of the Company. Sri G.Radhakrishna, Joint Managing Director has taken the mantle of the Managing Director from Sri G.V. Chalapathi with effect from April 01,2010. Sri.G.P.N.Gupta, Sri. Rajuswamy and Sri. Sanjay Ramaswami were appointed as additional directors and their appointments are valid till the ensuing Annual general Meeting only. Hence their appointment to the board asNon-ExecutiveDirectors,liabletoretirebyrotationarebeingplacedbeforetheshareholders.
PARTICULARS OF EMPLOYEES:
None of the employees of the Company were in receipt of remuneration which in the aggregateexceededthelimitsfixedundersub-section(2A)ofSection217oftheCompaniesAct,1956.
ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE:
Information in accordancewith the provisions of Section 217(1)(e) of theCompaniesAct, 1956read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 regardingconservationofenergy,technologyabsorptionandforeignexchangeearningsandoutgohasbeen set out in the Annexure-I to this Report.
CORPORATE GOVERNANCE:
The Company has complied with all mandatory provisions of Corporate Governance as prescribed undertheListingAgreementoftheStockExchangesinwhichtheCompanyislisted.Inlinewiththerequirements of Clause 49 of the listing agreement, a separate report on Corporate Governance, along withacertificatefromtheStatutoryAuditorsoftheCompanyisannexedherewithtothisreport.
DIRECTORS’ RESPONSIBILITY STATEMENT:
PursuanttoSection217(2AA)of theCompaniesAct,1956theDirectorsherebyconfirmthat theyhave:
i) FollowedtheapplicableaccountingStandardsinthepreparationoftheannualaccounts;
ii) Selected such accounting policies and applied them consistently andmade judgments andestimatesthatwerereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsofthecompanyattheendofthefinancialyearandoftheprofitsofthecompanyfortheyearunderreview;
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Annual Report 2009 - 2010
iii) Taken proper and sufficient care for the maintenance of adequate accounting records inaccordancewiththeprovisionsoftheCompaniesAct,1956forsafeguardingtheassetsofthecompanyanddetectingfraudandirregularities;
iv) Prepared the accounts for the financial year on a “going concern” basis.
STATUTORY AUDITORS:
TheBoardofDirectorsrecommendtheappointmentoftheAuditorsoftheCompanytoholdofficefromthe conclusion of the ensuing Annual General Meeting until the conclusion of the next Annual General Meeting and to fix their remuneration. The present Auditors, M/s.M.Srinivasan & Associates whose tenure comes to an end at the ensuing Annual General Meeting are eligible for reappointment.
INDUSTRIAL RELATIONS:
Industrialrelationscontinuedtobecordial.TheDirectorsplaceonrecordtheirdeepappreciationforthesincereanddedicatedteamworkbyallemployeesatalllevelstomeetthequality,costanddeliveryrequirementsofthecustomers.
ACKNOWLEDGEMENT:
Your Directors wish to place on record their gratitude to the Central Government and the Government ofTamilNadu,KarnatakaBankLtd.,fortheircontinuedsupportduringtheyear.YourDirectorsalsowishtoconveytheirthankstothevaluedcustomers,dealersfortheircontinuedpatronageduringtheyear.
Your Directors acknowledge with appreciation the services rendered by the Executives, Staff andWorkersoftheCompany.
ForandonbehalfoftheBoard
Chennai G.Radhakrishna G.V.Gopinath May27,2010 ManagingDirector ExecutiveDirector
CAUTIONARY STATEMENT:
Management Discussion and Analysis forming part of this Report is in compliance with Corporate Governance Standards incorporated in the listing agreement with Stock Exchanges and such statements may be “forward-looking” within the meaning of applicable securities laws and regulations. Actual results coulddiffermaterially from thoseexpressedor implied. Important factors that couldmakea difference to the Company’s operations include economic conditions affecting demand/supply and priceconditionsinthedomesticandoverseasmarketsinwhichthecompanyoperates,changesintheGovernment regulations, tax laws and other statutes and other incidental factors.
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Annual Report 2009 - 2010
ANNEXURE-1
INFORMATION UNDER SECTION 217(1)(e) OF THE COMPANIES ACT, 1956, READ WITH THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988
A. CONSERVATION OF ENERGY
a) Measurestakenforconservationofenergy:
i) WhiletheTapeplantisrunning,7unitsperhourissavedbyusageofa10HPcompressorinstead of 2H.P. compressor the cost of power conservation is round about Rs. 29 per hour
ii) The tape plant is run in 250 KVA DG instead of 325 KVA through which the company saves around 6 liters of diesel per hour which in turn saves the company Rs 228 per hour.
iii) AwarenessaboutpowersavingwascreatedamongalltheemployeesintheareaoflightingandACintheoffice.
b) Additionalinvestmentsandproposals,ifany:Nil
Impactoftheabovemeasuresonconsumptionofenergy:N.A
c) Appropriatestepsaretakenforsavingtheenergy.
d) TotalenergyconsumptionperunitofproductionasperForm-A:-
FORM-A
Sl. No. Particulars Current Year 2009-10
Previous Year2008-09
1. ElectricitypurchasedfromElectricityBoards
a. Total units purchased / consumed 20,70,063 26,12,386
b. Total amount of Electricity bill (in Rs.) 1,03,81,807/- 1,22,57,189/-
c. Rate per unit (in Rs.) 5.02 4.69
2. OwngenerationthroughDieselgenerator
Dieselgenerator(inunit) 6,01,391 2,61,833
Fuel(inltrs.) 1,82,388 81377
Averageunitgeneratedperltr. 3.30 3.21
Rate per unit (in Rs.) 11.44 10.55
B.TECHNOLOGY ABSORPTION
EffortsmadeintechnologyabsorptionasperForm-B
FORM-B
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Annual Report 2009 - 2010
RESEARCH AND DEVELOPMENT (R&D)
1. Specific areas in which R&D carried out by the Company:-
* R&D was carried out on both process and product development.
* R&D was carried out on the value added bags and samples also were arrived.
* Agronitbagswithstriplamination.
* On-linegussetopenintuberplant
2. Benefits derived:-
* Agronitbagscreatedmarketforstriplaminatedbags.
* On-linegussetopenveryeffectiveinlaboursaving.
3. Future plan of action:-
* Fabriclaminationwithvariouscombinationsoffabricandbags.
* Value added products identification are in progress.
Expenditure on R&D 2009-10 2008-09
a) Capital Rs. Nil Nil
b) Revenue Rs. 2,98,283 2,17,500
c) Total Rs. 2,98,283 2,17,500
d) Total R&D expenditure as a percentage of total turnover 0.10% 0.07%
C. FOREIGN EXCHANGE EARNINGS AND OUTGO 2009-2010 2008-2009
(Rupees in lakhs)
ForeignExchangeoutgo
Imports(CIF) 35.87 N i lTravel Nil N i lForeignExchangeEarned:
Exports(FOB) 89.04 45.80
ForandonbehalfoftheBoard
Place : Chennai G.Radhakrishna G.V.Gopinath Date : May27,2010 ManagingDirector ExecutiveDirector
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Annual Report 2009 - 2010
REPORT ON CORPORATE GOVERNANCE
1. COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCE: The Company’s Philosophy on Corporate Governance envisages attainment of highest levels of
transparency,accountabilityandequityinallfacetsofitsoperationsandmaintainsbestpossiblestandards of Corporate Governance with the belief that all such actions will have the consequent effectofincreasingtheshareholdervalueonasustainedbasis.
2. BOARD OF DIRECTORS: • Board Composition: Sri B.Surender chairs the Board of the Company; Sri G.V. Chalapathi Managing Director,
resigned as on April 01, 2010 and Sri G.Radhakrishna, Joint Managing Director has been re-designatedastheManagingDirectorofthecompany.TheBoardconsistsof8Directorsoutofwhich4areindependentdirectors.TheCompositionoftheBoardandcategoryofDirectorsaregivenbelow.
• Board Meetings: Duringthefinancialyear,theBoardmet6timeson29thJune2009,29thJuly2009,29th
September2009,24thOctober2009,27thJanuary2010and29thMarch2010.
• Attendance of each Director at the Board Meetings and at the Last AGM and details of other Directorship as on 31st March 2010:
Name of the Directors
Category of Directorship
No of shares
held as on 31st March
2010
Attendance Particulars
No of other Directorship and Committee Membership
Board Meetings
Last AGM
Other Directorships*
Other Committee Memberships #
SriB.Surender Chairman(NEI) Nil 6 Yes 2 2(AsperAnnexureII)
Dr G.V.Chalapathi** ManagingDirector(E) 90,000 5 Yes Nil Nil
Sri G.Radhakrishna JointManagingDirector(E) 2,42,900 6 Yes 1 Nil
Sri G.S.Sridhar Director(E) 13,968 6 Yes Nil Nil
Sri G.V.Gopinath Director(E) 18,000 6 Yes Nil Nil
Sri G.Muralidhar** Director(NE) 1,62,300 5 Yes Nil Nil
Sri M.Ravindra Reddy Director(NEI) 3,500 6 Yes Nil Nil
Sri M.V.Chandrasekar Director(NEI) 59,650 6 Yes Nil Nil
Sri S.Ramakrishnan Director(NEI) Nil 6 Yes Nil Nil
E-Executive,NE-NonExecutive,NEI-NonExecutiveIndependent* DoesnotincludePrivateLimitedCompanies# Audit Committee, Share holders/Investors Grievance Committee and Selection & Remuneration Committee are
aloneconsideredforthispurpose.** Sri G.Muralidhar resigned from Directorship on 13.02.2010** Dr. G.V.Chalapathi resigned from Directorship on 01.04.2010
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Annual Report 2009 - 2010
3. AUDIT COMMITTEE:
AsperSec292AoftheCompaniesAct,1956readwithClause41and49oftheListingAgreement,theCompanyisrequiredtohaveanAuditCommittee.ThescopeoftheAuditCommitteeisasbelow:
1. Overseeing the Company’s financial reporting process and the disclosure of its financialinformationtoensurethatthefinancialsarecorrect,sufficientandcredible.
2. Recommending to the Board, the appointment / reappointment and if required the replacement ofStatutoryAuditorsandfixationofauditfees.
3. Approval ofpayment toStatutoryAuditors for anyother services renderedby theStatutoryAuditors.
4. Reviewing with the Management, the annual financial statements before submission to the Boardforapproval,withparticularreferenceto:
• Matters required to be included in the Directors’ Responsibility Statement to be included in the Directors’ Report in terms of sub-section (2AA) of Section 217 of the Companies Act, 1956.
• Changes,ifany,inaccountingpoliciesandpracticesandreasonsforthesame
• Major accountingentries involvingestimatesbasedon theexerciseof judgmentby themanagement.
• Significantadjustmentmadeinthefinancialstatementsarisingoutofauditfindings.
• Compliancewithlistingandotherlegalrequirementrelatingfinancialstatements.
• Disclosureofrelatedpartytransactions.
• Qualificationsintheauditreport.
5. Reviewing with the management, the performance of Statutory and Internal Auditors, adequacy ofinternalcontrolsystems.
6. Reviewing the adequacy of internal audit function, including the structure of the internal audit department,reportingstructure,coverageandfrequencyofinternalaudit.
7. DiscussionwithInternalAuditorsanysignificantfindingsandfollowupthereon.
8. Reviewing the findings of any internal investigations by the Internal Auditors into matters where thereissuspectedfraudorirregularityorafailureintheinternalcontrolsystemsofmaterialnatureandreportingsuchmatterstotheBoard.
9. DiscussionwithStatutoryAuditorsbeforetheauditcommences,aboutthenatureandscopeofauditaswellaspostauditdiscussiontoascertainanyareaofconcern.
10. To look into the reasons for substantial defaults, if any, in the payment to the depositors,shareholders(inthepaymentofdeclareddividends)andcreditors.
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Annual Report 2009 - 2010
11. TointroduceandreviewtheWhistleBlowingPolicy.
12. CarryingoutsuchotherfunctionasmaybespecificallyreferredtotheCommitteebytheBoardand / or other Committees of Directors of the Company.
13. Toreviewthefollowinginformation:
• Themanagementdiscussionsandanalysisoffinancialconditionandresultsofoperation;
• Statementofsignificant relatedparty transactions(asdefinedby theAuditCommittee),submittedbymanagement;
• InternalcontrolweaknessesreportedbytheStatutoryorInternalAuditors;
• Reviewing the financial statements;
• Review of uses / application of funds raised through an issue (Public issue, rights issue, preferentialissueetc.).
• CompositionoftheCommitteeasondate,Meetingsheldandattendanceduringtheyear:
Particulars Name of the Chairman/Member NoofMeetingsheld NoofMeetingsattended
Chairman SriB.Surender 4 4
MembersSri M.V.Chandrasekar 4 4
Sri S.Ramakrishnan 4 4
CompanySecretaryistheSecretarytotheAuditCommittee.
4. SELECTION & REMUNERATION COMMITTEE:
Thescopeofthecommitteeisasbelow:
Todealwithappointments,remuneration,promotionandotherrelatedaspectsinrespectoftheManagingDirector,Whole-timeDirectorandotherSeniorManagementstaffmembersoftheCompany.
Toreviewtheremunerationpolicyofthecompanyfromtimetotimewhichisinconsonancewiththeexistingindustrypractice,i.e.directedtowardsrewardingperformance,basedonthereviewonperiodicalbasis.
A Remuneration Committee under the provisions of the Schedule XIII to the Companies Act, 1956, has been constituted with Sri B. Surender, Sri M.V.Chandrasekar and Sri S.Ramakrishnan as members. Sri B.Surender is the Chairman of the Remuneration Committee. During the financial year 2009-10 there was no necessity to conduct Remuneration Committee Meeting. TheelementsofremunerationincludeBasicSalary,Allowances,Perquisitesandretirementbenefits(allfixed).
15
Annual Report 2009 - 2010
REMUNERATION PAID TO DIRECTORS FOR THE FINANCIAL YEAR 2009-10:
• Dr. G.V.Chalapathi, Managing Director
FixedComponents 2009-2010(Amount in Rs.)
2008-2009(Amount in Rs.)
Salary/Allowances 10,20,000 10,20,000Perquisites 65,096 39,956Retirement Benefits 90,000 60,000ProvisionforLeavesalary 29,032 -Total 12,04,128 11,19,956
• Sri. G.Radhakrishna, Joint Managing Director
FixedComponents 2009-2010(Amount in Rs.)
2008-2009(Amount in Rs.)
Salary/Allowances 10,20,000 10,20,000Perquisites 80,174 29,858Retirement Benefits 90,000 60,000ProvisionforLeavesalary 29,032 -Total 12,19,206 11,09,858
• Sri G.S.Sridhar, Whole Time Director
FixedComponents 2009-2010(Amount in Rs.)
2008-2009(Amount in Rs.)
Salary/Allowances 7,68,000 7,40,000Perquisites 32,852 16,406Retirement Benefits 72,000 -ProvisionforLeavesalary 23,226 50,323Total 8,96,078 8,06,729
• Sri G.V.Gopinath, Whole Time Director
FixedComponents 2009-2010Amount in Rs.)
2008-2009(Amount in Rs.)
Salary/Allowances 7,68,000 7,40,000
Perquisites 20,160 12,598
Retirement Benefits 72,000 -
ProvisionforLeavesalary 23,226 44,032
Total 8,83,386 7,96,630
Remuneration by way of Sitting fee of Rs.10,000/- is paid to the Non-Executive Directors for attending a Board / Committee meeting. Apart from this travel, accommodation and out-of-pocketexpensesincurredbythemforattendingthemeetingsarealsoreimbursed.
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Annual Report 2009 - 2010
ThedetailsofsittingfeespaidtoNon-ExecutiveDirectorsfortheyear2009-10areasbelow:
Name of the Director Amount (Rs.)Sri.B.Surender 1,00,000Sri. M.V.Chandrasekar 1,00,000Sri. G.Muralidhar 50,000Sri. S.Ramakrishnan 1,00,000Sri. M.Ravindra Reddy 60,000
5. SHARE TRANSFER & INVESTORS GRIEVANCE COMMITTEE:
The Committee consists of Sri S.Ramakrishnan as the Chairman & Sri G. Radhakrishna as the member. CompanySecretaryistheSecretaryoftheCommittee.
TheroleoftheCommitteeistolookintotheredressalofshareholdersandinvestorscomplaintsontransferofshares,non-receiptofBalanceSheet,non-receiptofdeclaredDividendetc.andalso tooversee the performance of the Registrar and Transfer Agent.
COMPLIANCE OFFICER:
Mr. V.Ramesh, Company Secretary is the Compliance Officer and his e-mail address is [email protected]. TheCompany has not received any complaints during theyear.
GENERAL SHAREHOLDERS INFORMATION:
AGM Date : 29thJuly2010
Timeandvenue : 10.30a.m
TAMILNADUFOUNDATIONINC.USA, 27, Taylors Road, Kilpauk, Chennai – 600 010. FinancialCalendar2010-11(Tentative):UnauditedresultsforthefirstquarterendingJune30,2010 : LastWeekofJuly,2010
UnauditedresultsforthesecondquarterendingSeptember30,2010 : LastWeekofOctober,2010
UnauditedresultsforthethirdquarterendingDecember31,2010 : LastWeekofJanuary,2011
AuditedresultsfortheyearendingMarch31,2011 : BeforeendofMay,2011
BookclosureDates : 23rdJuly2010to29thJuly2010 (bothdaysinclusive)
ListingonStockExchanges : BombayStockExchangeLtd MadrasStockExchangeLtd
17
Annual Report 2009 - 2010
StockCode : 530931(BSE)
ISIN : INE457D01018
Registrar and Transfer Agents : M/s. Cameo Corporate Services Ltd., No. 1, Club House Road, Mount Road, Chennai-600002
PlantLocations : Thisinformationformspartoftheannualreport
Address for correspondence : “S.K.Enclave” No.4, (Old No.47) Nowroji Road, Chetpet,Chennai–600031.
MARKET PRICE DATA IN BSE(HIGH, LOW DURING EACH MONTH IN THE YEAR 2009-10):
Month High (Rs.) Low (Rs.) Month High (Rs.) Low (Rs.)Apr2009 5.65 4.26 Nov2009 6.41 5.30
May2009 4.69 3.50 Dec2009 7.20 5.81
Jun2009 5.02 4.08 Jan2010 8.36 6.74
Jul2009 6.35 5.00 Feb2010 7.40 7.09
Aug2009 7.24 6.00 Mar2010 7.04 6.23
Sep2009 5.98 4.29 Apr2010 6.00 5.45
Oct2009 6.55 4.99
DISTRIBUTON OF SHAREHOLDING (AS ON 30TH APRIL 2010):
No.of shares heldFolio Shares
Number % Number %
Upto-500 2195 69.25 516940 8.48
501-1000 402 12.68 342540 5.62
1000-2000 157 4.95 238874 3.92
2001-3000 168 5.30 425408 6.98
3001-4000 88 2.78 308260 5.06
4001-5000 39 1.23 184932 3.03
5001-10000 58 1.83 430301 7.06
10001-20000 22 0.69 312135 5.12
20001-50000 24 0.76 749375 12.29
50001-100000 8 0.25 615945 10.10
100001&above 9 0.28 1971290 32.34
Total 3170 100.00 6096000 100.00
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Annual Report 2009 - 2010
SHAREHOLDING PATTERN AS ON 30TH APRIL 2010:
DEMAT/PHYSICAL STATUS OF SHARES (% TO PAIDUP CAPITAL) AS ON 30TH APRIL 2010:
TheCompanyhasenteredintothenecessaryagreementswithNSDLandCDSLfordematerializationofthesharesheldbyinvestors.SEBIhasincludedthesharesofyourCompanyinthelistofscriptsfortradingonlyindematerializedformforallinvestorswitheffectfromJune,2001.
GENERAL BODY MEETINGS:
Date, Time & Venue of the last three Annual General Meetings
FinancialYear Ended
Date Time Venue Whether Special Resolution passed
March31,2007 27.08.2007 10.30a.m Sri P.Obul Reddy Hall, Vani Mahal, 103, G.N.Chetty Road, T.Nagar,Chennai-600017.
No
March31,2008 25.09.2008 10.30a.m Sri P.Obul Reddy Hall, Vani Mahal, 103, G.N.Chetty Road, T.Nagar,Chennai-600017.
Yes
March31,2009 29.09.2009 10.30a.m Sri P.Obul Reddy Hall, Vani Mahal, 103,G.N.Chetty Road, T.Nagar,Chennai-600017.
Yes
19
Annual Report 2009 - 2010
MEANS OF COMMUNICATION:
The quarterly and annual financial results are published in newspapers viz., “The Financial Express” and “Malai Murasu” (Tamil). The quarterly and annual financial results are also displayed on the Company’s websitewww.blissgroup.com. The Company’s website also contains several other details/information ofinteresttovariousstakeholders.
CODE OF CONDUCT:
TheBoardofDirectorshaslaiddownacodeofconductforallBoardMembersandSeniorManagementoftheCompany.ThesamehasbeenpostedonthewebsiteoftheCompany.
DISCLOSURE:
Duringtheyear,theCompanyhasnotenteredintoanytransactionofmaterialnaturewithanyofthepromoters, directors, management, subsidiary / associate company or relative etc., which is in conflict withthe interestoftheCompany.ThenecessarydisclosureregardingthetransactionswithrelatedpartiesisgiveninNoteNo.22ofnotesonannualaccountsfortheyear2009-10.
ThereisnoinstanceofnoncompliancebytheCompanyinmattersrelatingtothecapitalmarkets;nor is there any penalty / strictures imposed by the stock exchanges or SEBI or any other statutory authorityonsuchmatters,duringthelastthreeyears.
ThenonmandatoryrequirementsofClause49oftheListingAgreement,havebeencompliedtotheextentpossible.
CEO/CFO CERTIFICATION:
The certificate as required under Clause 49(VI) of the Listing Agreement is given as Annexure II.
COMPLIANCE CERTIFICATE:
Certificate from the Auditors of the Company, M/s. M.SRINIVASAN & ASSOCIATES, Chartered Accountants confirming compliance with the conditions of Corporate Governance as stipulated under Clause 49 (VII) of the listing agreement is given as Annexure III.
ForandonbehalfoftheBoard
Place : Chennai G.Radhakrishna G.V.Gopinath Date : May27,2010 ManagingDirector ExecutiveDirector
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Annual Report 2009 - 2010
ANNEXURE I
Name of the Director with Designation
Name of the Committee & Chairman/Member
Name of the Company
Sri.B.Surender,Chairman(NEI) AuditCommittee–MemberRemuneration Committee – Member
JumboBagLtd.JumboBagLtd.
ANNEXURE II
CERTIFICATION BY CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER OF STANPACKS (INDIA) LIMITED.
We, G.Radhakrishna, Managing Director and G.V. Gopinath, Chief Financial Officer of Stanpacks (India) Limited(thecompany),tothebestofourknowledgeandbeliefcertifythat:
1. Wehavereviewed theBalanceSheetandProfitandLossAccountandall itsSchedulesandNotes on Accounts, as well as the Cash Flow Statement and Directors’ Report for the year ended March31,2010.
a. Based on our knowledge and information, these statements do not contain any untruestatementofamaterialfactoromitanymaterialfactorcontainstatementsthatmightbemisleading.
b. ThesestatementstogetherpresentatrueandfairviewoftheCompany’saffairsandareincompliancewithexistingaccountingstandards,applicablelawsandregulations.
2. Thereare,tothebestofourknowledgeandbelief,notransactionsenteredintobythecompanyduringtheyearwhicharefraudulent,illegalorviolativeofthecompany’scodeofconduct.
3. Weareresponsible forestablishingandmaintaining internalcontrolsandprocedures for theCompany pertaining to financial reporting, and have evaluated the effectiveness of theseprocedures in the Company. We have disclosed to the auditors and the Audit Committee,deficiencies,ifany,inthedesignoroperationofsuchinternalcontrols,ofwhichweareawareandthestepsthatwehavetakenorproposetotaketorectifythesedeficiencies.
4. Wehavedisclosed,basedonourmostrecentevaluation,whereverapplicable,totheCompany’sauditorsandtheAuditCommitteeoftheCompany’sBoardofDirectors:-
a. Significantchangesininternalcontrolsduringtheyear;
b. Significantchanges inaccountingpoliciesduringtheyearandthat thesamehavebeendisclosedintheNotestothefinancialstatements;and
c. Instances,ifany,ofsignificantfraudofwhichwehavebecomeawareandtheinvolvementtherein,ifany,ofthemanagementoranemployeehavingasignificantroleintheCompany’sinternalcontrolsystem.
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Annual Report 2009 - 2010
5. Weaffirmthatwehavenotdeniedanypersonnel,accesstotheAuditCommitteeoftheCompany(inrespectofmattersinvolvingmisconduct,ifany).
6. AsrequiredbyClause49(1D)oftheListingAgreement,itisherebyaffirmedthatalltheBoardMembersandSeniorManagementPersonnelhavecompliedwiththeCodeofConductoftheCompany.ItisalsoconfirmedthattheCodeofConducthasalreadybeenpostedontheWebsiteoftheCompany.
G.RADHAKRISHNA G.V.GOPINATHMANAGING DIRECTOR CHIEF FINANCIAL OFFICER Place : Chennai,Date : May27,2010.
ANNEXURE III
C E R T I F I C A T E
TO THE MEMBERS OF STANPACKS (INDIA) LIMITED
We have examined the compliance of conditions of Corporate Governance by Stanpacks (India) Limited fortheyearendedMarch31,2010asstipulatedinclause49oftheListingAgreementofthesaidCompanywithstockexchanges.
The Compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was limited to procedures and implementation thereof adopted by the Company forensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expressionofopiniononthefinancialstatementsoftheCompany.
Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,weCertify that the Company has complied with the conditions of Corporate Governance as stipulated in theabovementionedListingAgreement.
Westate that no investorgrievance ispendingforaperiodexceeding one month against theCompany as per the records maintained by the Shareholders/Investors Grievances Committee.
We further state that such compliance is neither an assurance as to the future viability of theCompanynortheefficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.
forM.SRINIVASAN & ASSOCIATES CharteredAccountants Firmregistrationno.:004050SPlace : Chennai N.KISHOREDate : May27,2010 Partner MembershipNo.025789
22
Annual Report 2009 - 2010
AUDITORS’ REPORT To the Members of Stanpacks (India) LimitedWe have audited the attached balance sheet of Stanpacks (India) Limited (“the Company”) as at 31March,2010, theprofit and loss account andalso the cash flow statement for the year endedon that date annexed thereto. These financial statements are the responsibility of the Company’sManagement.Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.Weconductedouraudit inaccordancewithauditingstandardsgenerallyaccepted inIndia.ThoseStandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthe financialstatementsare freeofmaterialmisstatement.Anaudit includesexamining,ona testbasis, evidence supporting the amounts anddisclosures in the financial statements. An audit alsoincludesassessingtheaccountingprinciplesusedandsignificantestimatesmadebyManagement,aswellasevaluatingtheoverallfinancialstatementpresentation.Webelievethatourauditprovidesareasonablebasisforouropinion.As required by the Companies (Auditor’s Report) Order, 2003, as amended, issued by the Ministry of CorporateAffairsintermsofsub-section(4A)ofSection227oftheCompaniesAct,1956,weencloseintheAnnexureastatementonthemattersspecifiedinparagraphs4and5ofthesaidOrder.FurthertoourcommentsintheAnnexurereferredtoabove,wereportthat:(a) Wehaveobtainedalltheinformationandexplanations,whichtothebestofourknowledgeand
beliefwerenecessaryforthepurposesofouraudit;(b) inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanyso
farasappearsfromourexaminationofthosebooks;(c) thebalancesheet,profitandlossaccountandcashflowstatementdealtwithbythisreportare
inagreementwiththebooksofaccount;(d) inouropinion,thebalancesheet,profitandlossaccountandcashflowstatementdealtwithby
thisreportcomplywiththeaccountingstandardsreferredtoinsub-section(3C)ofSection211oftheCompaniesAct,1956;
(e) onthebasisofwrittenrepresentationsreceivedfromthedirectors,asat31March,2010andtakenonrecordbytheBoardofDirectors,wereportthatnoneofthedirectorsaredisqualifiedasat31March,2010frombeingappointedasadirectorintermsofclause(g)ofsub-section(1)ofSection274oftheCompaniesAct,1956onthesaiddate;
(f) Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,thesaidaccountsgivetheinformationrequiredbytheCompaniesAct,1956,inthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia.
(i) inthecaseofthebalancesheet,ofthestateofaffairsoftheCompanyasat31March,2010;
(ii) inthecaseoftheprofitandlossaccount,ofthelossoftheCompanyfortheyearendedonthatdate;and
(iii) inthecaseofthecashflowstatement,ofthecashflowsoftheCompanyfortheyearendedonthatdate.
ForM.SRINIVASAN & ASSOCIATES CharteredAccountants Firmregistrationno.:004050SPlace : Chennai N.KISHOREDate : May27,2010 Partner MembershipNo.025789
23
Annual Report 2009 - 2010
ANNEXURE TO THE AUDITORS’ REPORT
Annexure referred to in our report to the members of Stanpacks (India) Limited (“the Company”) for theyearended31March,2010.Wereportthat:
(i) (a) TheCompanyhasmaintainedproperrecordsshowingfullparticulars,includingquantitativedetailsandsituationoffixedassets.
(b) TheCompanyhasaregularprogrammeofphysicalverificationofitsfixedassetsbywhichallfixedassetsareannuallyverified.Inouropinion,thisperiodicityofphysicalverificationisreasonablehavingregardtothesizeoftheCompanyandthenatureofitsassets.Nomaterialdiscrepancieswerenoticedonsuchverification.
(c) FixedassetsdisposedoffduringtheyearpartofoldMachinerywerenotsubstantialandtherefore,donotaffectthegoingconcernassumption.
(ii) (a) The inventory,exceptgoods-in-transit,hasbeenphysicallyverifiedbythemanagementduringtheyear.Inouropinion,thefrequencyofsuchverificationisreasonable.
(b) Theproceduresforthephysicalverificationof inventoriesfollowedbythemanagementarereasonableandadequateinrelationtothesizeoftheCompanyandthenatureofitsbusiness.
(c) TheCompany ismaintainingproper recordsof inventory.Thediscrepanciesnoticedonverificationbetweenthephysicalstocksandthebookrecordswerematerialandhavebeenproperlydealtwithinthebooksofaccount.
(iii) TheCompanyhasnotgrantedanyloans,securedorunsecured,tocompanies,firmsorotherparties covered in the register maintained under Section 301 of the Companies Act, 1956.However, the Company has taken unsecured loans from one party of Rs. 1,50,000 covered in theregistermaintainedunderSection301oftheCompaniesAct,1956.Therateofinterestandthetermsandconditionsarenotprimafacie,prejudicialtotheinterestoftheCompany.
(iv) In our opinion and according to the information and explanations given to us, there is anadequateinternalcontrolsystemcommensuratewiththesizeoftheCompanyandthenatureofitsbusiness,forthepurchaseofinventoryandfixedassetsandforthesaleofgoods.Wehavenotobservedanymajorweaknessintheinternalcontrolsystemduringthecourseoftheaudit.
(v) Inouropinion,andaccordingtotheinformationandexplanationsgiventous,therearecontractsorarrangementsandtheparticularsoftransactionsareenteredintotheregisterreferredtoinSection301oftheCompaniesAct,1956andthetransactionshavebeenmadeatpriceswhicharereasonablehavingregardtotheprevailingmarketpricesattherelevanttime.
(vi) TheCompanyhasaccepteddepositsfromthepublicandasperthedirectives issuedbytheReserve Bank of India and the provisions of sections 58A and 58AA of the Act and the rules framedthereunder,whereapplicable,havebeencompliedwith.
(vii) TheCompanyhasaninternalauditsystemcommensuratewithitssizeandnatureofbusiness.
24
Annual Report 2009 - 2010
(viii) The Central Government of India has not prescribed the maintenance of cost records under section209(1)(d)oftheCompaniesAct,1956foranyoftheproductsmanufacturedorservicesrenderedbytheCompany.
(ix) (a) According to the information and explanations given to us and on the basis of ourexaminationoftherecordsoftheCompany,amountsdeductedoraccruedinthebooksofaccountinrespectofundisputedstatutoryduesincludingProvidentfund,Income-tax,Salestax,Customsduty,Servicetaxandothermaterialstatutorydueshavebeengenerallyregularlydeposited,duringtheyearbytheCompanywiththeappropriateauthorities.Asexplainedtous,theCompanydidnothaveanyduesonaccountofInvestorEducationandProtectionFund,Employees’stateinsurance,ExcisedutyandWealthtax.
TherearenoduesonaccountofCessunderSection441AoftheCompaniesAct,1956sincethedatefromwhichtheaforesaidsectioncomesintoforcehasnotyetbeennotifiedby the Central Government of India.
Accordingtotheinformationandexplanationsgiventous,noundisputedamountspayableinrespectofProvidentfund,Incometax,Salestax,Customsduty,Servicetaxandothermaterialstatutoryduesthatwereinarrearsasat31March,2010foraperiodofmorethansixmonthsfromthedatetheybecamepayable.
(b) Accordingtotheinformationandexplanationsgiventous,therearenoduesintherespectofIncome-tax,Servicetax,Wealthtax,ExcisedutyandCesswhichhavenotbeendepositedonaccountofanydispute.ThecompanydisputesthefollowingSalestaxandexcisedutydues:
Name of the Statute
Nature of the Dues
Amount (Rs) Period to which the amount
relates
Forum where dispute is pending
SalesTax SalesTaxDemand
8,25,477 1994-95 OnAppealandthecasewas remanded to theAssessingofficer.
SalesTax SalesTaxDemand
3,53,788 1995-96 OnAppealandthecasewas remanded to theAssessingofficer.
SalesTax SalesTaxDemand
1,28,925 1997-98 OnAppealandthecasewas remanded to theAssessingofficer.
SalesTax SalesTaxDemand
80,755 2001-02 OnAppealandthecasewas remanded to theAssessingofficer.
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Annual Report 2009 - 2010
CentralExcise ExciseDutyDemand
218,870 2007-08 AppealpendingwithTheAssistantCommissionerof Central Excise,Chennai
CentralExcise ExciseDutyDemand
412,853 2008-09 AppealpendingwithTheAssistantCommissionerof Central Excise,Chennai
(x) Inouropinion,theaccumulatedlossesoftheCompanyarenotmorethanfiftypercentofitsnetworth.TheCompanyhasincurredlossesinthefinancialyearendedasonthatdateandcashlossesincurredbytheCompanyintheimmediatelyprecedingfinancialyear.
(xi) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyhasnotdefaultedinrepaymentofduestoitsbankersortoanyfinancialinstitutions.TheCompanydidnothaveanyoutstandingdebenturesduringtheyear.
(xii) TheCompanyhasnotgrantedanyloansandadvancesonthebasisofsecuritybywayofpledgeofshares,debenturesandothersecurities.
(xiii) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyisnot a chit fund / nidhi/ mutual benefit fund/ society.
(xiv) Accordingtotheinformationandexplanationsgiventous,theCompanyisnotdealingortradinginshares,securities,debenturesandotherinvestments.
(xv) According to the informationandexplanationsgiven tous, theCompanyhasnotgivenanyguaranteeforloanstakenbyothersfrombanksorfinancialinstitutions.
(xvi) Accordingtotheinformationandexplanationsgiventousandonanoverallexaminationofthebalance sheet of the Company, we report that the Company has used Rs.97.98 lacs funds on short-termbasisforlongterminvestment.
(xvii) TheCompanyhasnotmadeanypreferentialallotmentofsharestocompaniesorfirmsorpartiescoveredintheregistermaintainedunderSection301oftheCompaniesAct,1956.
(xviii)TheCompanydidnothaveanyoutstandingdebenturesduringtheyear.
(xix) TheCompanyhasnotraisedanymoneybypublicissuesduringtheyearofaudit.
(xx) Accordingtotheinformationandexplanationsgiventous,nofraudonorbytheCompanyhasbeennoticedorreportedduringthecourseofouraudit.
forM.SRINIVASAN & ASSOCIATES CharteredAccountants Firmregistrationno.:004050SPlace : Chennai N.KISHOREDate : May27,2010 Partner MembershipNo.025789
26
Annual Report 2009 - 2010
BALANCE SHEET AS AT 31st March 2010 SOURCE OF FUNDS Schedule As at 31.03.2010 As at 31.03.2009 Shareholders’ Funds : Rs. Rs. Rs. Rs. ShareCapital 1 6,09,60,000 6,09,60,000
6,09,60,000 6,09,60,000LoanfundsSecuredLoans 4 12,47,69,015 13,28,77,093UnsecuredLoan 5 3,49,79,345 3,27,13,505
22,07,08,360 22,65,50,598 APPLICATION OF FUNDS :Fixed AssetsLessDepreciation 6 11,22,38,349 11,90,73,526Add:CapitalWorkinProgress 7,27,101 12,00,000
11,29,65,450 12,02,73,526DeferredTaxAsset 3 30,15,319 2,73,778Current Assets, Loans & Advancesa)Inventories 7 8,16,08,788 68,164,342b)SundryDebtors 8 4,07,74,310 3,37,60,873c)Advances&Deposits 9 1,82,29,779 3,09,77,913d)Cash&BankBalances 10 80,63,171 80,70,347Total(A) 14,86,76,048 14,09,73,475 Less : Current Liabilites & provisionsSundryCreditorsforTrade 3,11,89,746 1,82,25,543SundryCreditorsforExpenses&Others 1,64,83,004 1,39,94,826UnclaimedDividend 2,87,578 2,87,578StatutoryDuesPayable 35,03,570 36,27,486Total(B) 5,14,63,898 3,61,35,433 Net Current Assets (A-B) 9,72,12,150 104,838,042MiscellaneousExpenditure(totheextentnotwrittenoff)Profit&LossAccount 2 75,15,441 11,65,252
22,07,08,360 22,65,50,598
SignificantaccountingpoliciesNotestotheaccounts Theschedulesreferredtoaboveformanintegralpartofthesefinancialstatements
ForandonbehalfoftheBoard AsperourreportofevendateG.RADHAKRISHNA G V GOPINATH For M. SRINIVASAN & ASSOCIATESManagingDirector ExecutiveDirector CharteredAccountants
G S SRIDHAR V.RAMESH N.KISHORE ExecutiveDirector CompanySecretary Partner MembershipNo.025789Place:Chennai Date:May27,2010
27
Annual Report 2009 - 2010
PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDED 31st March 2010Schedule Year ended Year ended
31.03.2010 31.03.2009INCOME Rs. Rs.TotalTurnover 30,83,26,007 33,69,47,185Less:ExciseDutyincludingEducationCess 3,05,85,958 3,90,81,096Less:SalesTax 82,92,427 90,81,588NetTurnover 26,94,47,622 28,87,84,501OtherIncome 11 7,85,315 71,97,619Total Income 27,02,32,937 29,59,82,120 EXPENDITURE(Increase) /Decrease in Finished Goods (1,31,44,272) 2,25,42,338ManufacturingCost 12 24,30,60,005 24,47,03,500EstablishmentExpenses 13 1,01,17,590 96,08,736AdministrativeExpenses 14 72,24,224 70,30,624SellingExpenses 15 34,89,563 35,63,137
25,07,47,110 28,74,48,335 Profit Before Interest, Depreciation & Tax 1,94,85,827 85,33,785Less:InterestandFinanceCharges 1,85,72,829 2.03,66,577Profit Before Depreciation & Tax 9,12,998 (1,18,32,792)Less:Depreciation 98,54,037 97,43,202Profit Before Tax (89,41,039) (2,15,75,994)Less:PriorPeriodAdjustments 1,50,691 (1,89,447)
(90,91,730) (2,13,86,547)Less:ProvisionforTaxa)ProvisionforCurrentYear - -b)FringeBenefitTax - 2,10,000c)DeferredTax (27,41,541) (1,06,24,299)Profit After Tax (63,50,189) (1,09,72,248)Add : Profit/(Loss) b/f from previous year (11,65,252) 98,06,996Balance Carried Over to Balance Sheet (75,15,441) (11,65,252)Loss per share (par value Rs 10 each) - -Basicanddiluted (1.04) (1.80)WeightedaveragenumberofequitysharesBasicanddiluted 60,96,000 60,96,000
SignificantaccountingpoliciesNotestotheaccounts Theschedulesreferredtoaboveformanintegralpartofthesefinancialstatements ForandonbehalfoftheBoard AsperourreportofevendateG.RADHAKRISHNA G V GOPINATH For M. SRINIVASAN & ASSOCIATESManagingDirector ExecutiveDirector CharteredAccountants
G S SRIDHAR V.RAMESH N.KISHORE ExecutiveDirector CompanySecretary Partner MembershipNo.025789Place:Chennai Date:May27,2010
28
Annual Report 2009 - 2010
SCHEDULES FORMING PART OF ACCOUNTS
As at 31.03.2010 As at 31.03.2009SCHEDULE - 1 Rs. Rs.Authorised Capital70,00,000 Equity Shares of Rs.10/- Each 7,00,00,000 7,00,00,000Issued,SubscribedandPaid-upCapital60,96,000 Equity Shares of Rs.10/- Each fully paid up 6,09,60,000 6,09,60,000
SCHEDULE - 2Reserves & Surplus Profit&(Loss)AsperLastBalanceSheet (11,65,252) 98,06,996Add:LossduringtheyeartransferredfromProfitandLossAccount (63,50,189) (1,09,72,248)
Total (75,15,441) (11,65,252)
SCHEDULE - 3Deferred Tax Liability *OpeningBalance (2,73,778) 1,03,50,521DeferredTaxLiabilityfortheyear (27,41,541) (1,06,24,299)Total (30,15,319) (2,73,778)* Grouped separately under Asset head
SCHEDULE - 4Secured LoanTerm Loan from KARNATAKA BANK LIMITED * 4,04,05,186 2,51,60,880OCC Facility - THE KARNATAKA BANK LIMITED 8,43,63,829 10,75,20,879Vehicle Loans - 1,95,334Total 12,47,69,015 13,28,77,093 * Includes working Capital term Loan of Rs 2,70,00,000/- Repayable with in one year Rs.Nil.
SCHEDULE - 5Unsecured LoanAdvance Received against Research & Development 25,00,000 25,00,000Loan-Others 80,21,135 79,00,000Deposits 17,90,000 21,76,000InterestFreeSalesTaxDeferral* 2,26,68,210 2,01,37,505Total 3,49,79,345 3,27,13,505 * (Refer Note No.26 of Notes of Accounts )
29
Annual Report 2009 - 2010SC
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30
Annual Report 2009 - 2010
As at 31.03.2010Rs.
As at 31.03.2009Rs.
SCHEDULE - 7
Inventories (At lower of cost or net realisable value and as valued & certified by the Management)
Raw Materials 1,20,66,171 1,18,76,731
Finished Goods 6,53,26,060 5,21,81,788
Stores&Spares 42,16,557 41,05,823
Total 8,16,08,788 6,81,64,342
SCHEDULE - 8
Sundry debtors (Unsecured)Debtsoutstandingforaperiodexceedingsixmonths
-consideredgood 26,07,155 44,61,695
-considereddoubtful - -
Otherdebts
-consideredgood 3,81,67,155 2,92,99,178
Less:Provisionfordoubtfuldebts - -
Debtors as at theendof the yearwithCompaniesunder the same management as defined undersection370(1B)oftheCompaniesAct,1956
- -
Total 4,07,74,310 3,37,60,873
SCHEDULE - 9Advances & Deposits (Unsecured but considered Good)AdvancesrecoverableinCashorinKindorforvaluetobereceivedAdvances-Others 19,22,125 1,52,03,667
Advances&Deposits-Salestax 12,72,869 12,20,873
Advances&Deposits-Incometax 39,82,179 35,06,593
Advances&Deposits-CentralExcise 17,98,073 22,45,449
Deposits-Others 89,63,786 83,45,707
Prepaid Insurance/Expenses 2,90,747 4,55,625
Total 1,82,29,779 3,09,77,913
31
Annual Report 2009 - 2010
SCHEDULE - 10
Cash and Bank Balance
CashonHand 2,84,390 1,52,160
BankBalancewithScheduledBank
FixedDepositinBank 74,91,203 76,30,609
State Bank of India/ HDFC - Unclaimed Dividend 2,87,578 2,87,578
Total 80,63,171 80,70,347
Year Ended 31.03.2010
Year Ended 31.03.2009
SCHEDULE - 11
Other Income
Interest Earned (TDS Rs. 1,02,620/-) 7,69,392 9,99,858
ProfitonSaleofAssets 6,133 56,92,305
Miscellaneous Receipts 9,790 5,05,456
Total 7,85,315 71,97,619
SCHEDULE - 12
Manufacturing Cost
Opening Stock of RM, Stores and Spares 1,59,82,554 2,51,95,190
MaterialsPurchase&PurchaseExpenses 19,07,87,540 19,55,65,768
ConsumablesandSpares 51,78,259 44,15,206
ManufacturingExpenses 4,73,94,382 3,55,09,890
TotalCost 25,93,42,735 26,06,86,054
Less : Closing Stock of RM, Stores and Spares 1,62,82,730 1,59,82,554
Total 24,30,60,005 24,47,03,500
SCHEDULE - 13
Establishment Expenses
StaffSalaries,PF,ESI&Allowances 56,20,431 60,38,524
Directors’ Remuneration 37,65,695 29,87,255
Directors’TravellingExpenses 3,21,464 1,72,957
Directors’SittingFees 4,10,000 4,10,000
Total 1,01,17,590 96,08,736
32
Annual Report 2009 - 2010
SCHEDULE - 14
Administrative Expenses
Vehicle Maintenance 6,89,121 9,12,497
ElectricityCharges 2,47,431 2,56,355
Rent 4,13,000 4,29,000
R & D Expenses 2,98,283 2,78,437
Printing&Stationery 3,12,536 4,43,655
TravellingExpenses 4,57,217 7,39,270
Postage&TelegramandCourierExpenses 1,95,821 2,03,787
TelephoneExpenses 4,64,014 5,61,943
Advertisement&Publicity 53,982 49,207
InsuranceExpenses 6,80,506 6,13,118
License,Fees&Taxes 6,75,055 2,85,128
ProfessionalConsultancyCharges 2,58,690 5,52,670
LegalCharges 70,820 42,966
AuditFees-Statutory 1,25,000 1,00,000
AuditFees-Internal 80,000 70,112
Membership&Subscription 1,06,965 61,900
BankCharges 6,26,487 9,57,092
Meeting&SeminarExpenses 84,552 1,24,441
LossonSaleofAssets 10,32,134 21,678
OfficeMaintenanceExpenses 3,52,610 3,27,368
Total 72,24,224 70,30,624
SCHEDULE - 15Selling Expenses
Brokerage&Commission 2,07,500 -
Rebate & Discount 1,57,548 71,501
FreightOutwards 28,58,557 30,46,566
Clearing&ForwardingCharges 2,46,027 2,62,660
Bad Debts Written Off/Provision - (7,900)
OtherSellingExpenses 19,931 1,90,310
Total 34,89,563 35,63,137
33
Annual Report 2009 - 2010
ANNEXURE TO SCHEDULE
Manufacturing Expenses Total Total
31.03.2010 31.03.2009
Salary,Wages&Bonus 1,10,32,052 1,08,23,624
ContributiontoPF,ESIandotherfunds 8,37,737 8,80,302
WorkmenandStaffWelfareExp 12,85,793 11,55,016
Rent 34,66,281 44,11,214
Power&Fuel 1,80,60,633 1,33,22,996
ExciseDuty 23,50,480 (53,71,770)
Repairs & Maintenance - Buildings 22,444 1,20,530
Repairs & Maintenance - Machinery 13,63,931 2,99,176
Repairs & Maintenance - Others 3,03,218 2,79,419
LabourChargesPaid 40,85,069 54,15,317
CartageExpenses 3,49,773 2,84,605
TelephoneExpenses 1,28,972 1,71,874
ServiceCharges 6,41,064 7,80,847
SecurityCharges 16,15,733 15,09,724
OtherFactoryExpenses 18,51,202 14,27,015
TOTAL MANUFACTURING EXPENSES 4,73,94,382 3,55,09,890
Staff Salary & Allowances Office
Salary,Allowances&Bonus 49,65,602 53,49,874
ContributiontoPF,ESIandotherfunds 1,46,902 1,46,635
WorkmenandStaffWelfareExp 5,07,927 5,42,015
56,20,431 60,38,524
34
Annual Report 2009 - 2010
SCHEDULE 16
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
(a) The financial statements have been prepared and presented under the historical costconventionontheaccrualbasisofaccountingandcomplywiththeAccountingStandardsissuedbytheInstituteofCharteredAccountantsofIndiaandtherelevantprovisionsoftheCompaniesAct,1956,totheextentapplicable.ThefinancialstatementsarepresentedinIndianrupees.
(b)Accountingpoliciesnotspecificallyreferredtootherwiseareconsistentandinconsonancewithgenerallyacceptedaccountingprinciples.
2 USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted accountingprinciples (GAAP) requires management to make estimates and assumptions that affect the reportedamountsofassetsandliabilitiesandthedisclosureofcontingentliabilitiesonthedateofthefinancialstatements.Actualresultscoulddifferfromthoseestimates.Anyrevisiontoaccountingestimatesisrecognizedprospectivelyincurrentandfutureperiods.
3. FIXED ASSETS AND DEPRECIATION
Fixedassetsarecarriedatcostofacquisitionlessaccumulateddepreciation.Thecostoffixedassets includes freight, duties, taxes and other incidental expenses relating to acquisition.WherefixedassetshavebeenacquiredfromacountryoutsideIndia,thecostofthesefixedassetsalsoincludesexchangedifferences(favourableandunfavourable)arisinginrespectofforeigncurrencyloansonotherliabilitiesincurredspecificallyforthepurposeoftheiracquisition.Borrowingcostsrelatedtotheacquisitionorconstructionofthequalifyingfixedassetsfortheperioduptothecompletionoftheiracquisitionorconstructionarecapitalized.
DepreciationisprovidedontheStraightLineMethodfromthebeginningofthemonthinwhichthe asset is ready for use. The rates of depreciation prescribed in Schedule XIV to the Companies Act,1956areconsideredastheminimumrates.Ifthemanagement’sestimateoftheusefullifeofafixedassetatthetimeofacquisitionoftheassetoroftheremainingusefullifeonasubsequent review is shorter than that envisaged in the aforesaid schedule, depreciation isprovidedatahigherratebasedonthemanagement’sestimateoftheusefullifeorremainingusefullife.Pursuanttothispolicy,depreciationonassetshasbeenprovidedattheratesbasedontheestimatedusefullivesoffixedassets
Assets individually costing Rs 5,000 or less are depreciated at the rate of 100%.
35
Annual Report 2009 - 2010
Depreciationischargedonaproportionatebasisforallassetspurchasedandsoldduringtheyear.
4. REVENUE RECOGNITION
Revenue from sale of Manufactured goods , including scrap, is recognised on transfer of all significant risks and rewards of ownership to the buyer. The amount recognised as sale isinclusiveofsalestax,customduty,tradeandquantitydiscountsonaccrualbasis.
Interest ondeploymentof surplus funds is recognisedusing the timeproportionatemethodbasedonunderlyinginterestrates.
5. INVENTORIES
Inventoriesarecarriedatthelowerofcostandnetrealizablevalue.Thecomparisonofcostandnetrealizablevalueismadeonanitem-by-itembasis.
Costcomprisesofpurchasepriceandallincidentalexpensesincurredinbringingtheinventorytoitspresentlocationandcondition.Themethodofdeterminationofcostisasfollows:
• Raw materials – valued at cost.
• Finishedgoods-atlandedcostonafirstinfirstoutmethod
• Storesandspares-atlandedcostonafirstinfirstoutmethod
Theprovision for inventoryobsolescence is assessedannually and isprovidedasandwhenconsiderednecessary.
6. FOREIGN EXCHANGE TRANSACTIONS
Foreigncurrency transactionsare recordedat the ratesofexchangeprevailingon thedatesoftherespectivetransactions.Exchangedifferencesarisingonforeignexchangetransactionssettledduringtheyeararerecognizedintheprofitandlossaccountoftheyear,exceptthatexchangedifferences related to acquisition of fixed assets froma country outside India areadjustedinthecarryingamountoftherelatedfixedassets.
Monetaryassetsandliabilitiesdenominatedinforeigncurrenciesasatthebalancesheetdatearetranslatedattheclosingexchangeratesonthatdate;theresultantexchangedifferencesarerecognizedintheprofitandlossaccountexceptthoserelatedtoacquisitionoffixedassetsfromacountryoutsideIndiawhichareadjustedinthecarryingamountoftherelatedfixedassets.
7. PROVISIONS AND CONTINGENT LIABILITIES
TheCompanyrecognizesaprovisionwhenthereisapresentobligationasaresultofapasteventthatprobablyrequiresanoutflowofresourcesandareliableestimatecanbemadeof
36
Annual Report 2009 - 2010
theamountof theobligation.Adisclosure foracontingent liability ismadewhen there isapossibleobligationorapresentobligationthatmay,butprobablywillnot,requireanoutflowofresources.Wherethereisapossibleobligationorapresentobligationthatthelikelihoodofoutflowofresourcesisremote,noprovisionordisclosureismade.
Provisionsforonerouscontracts,i.e.contractswheretheexpectedunavoidablecostsofmeetingtheobligationsunderthecontractexceedtheeconomicbenefitsexpectedtobereceivedunderit,arerecognizedwhenitisprobablethatanoutflowofresourcesembodyingeconomicbenefitswill be required to settle apresentobligationasa result of anobligatingevent, basedonareliableestimateofsuchobligation.
8. INCOME TAX
Income-tax expense comprises current tax (i.e. amountof tax for theperioddetermined inaccordancewiththeincome-taxlaw)andnodeferredtaxchargeorcredit(reflectingthetaxeffects of timing differences between accounting income and taxable income for the year)providedinthebooksofaccounts.
9. SALES
SalesareinclusiveofExciseDutyandSalesTax.
10. EXCISE DUTY
ExciseDutyinrespectofgoodsmanufacturedbythecompanyisbeingaccountedfor,atthetimeofremovalofgoodsfromthefactoryforsale.
11. RETIREMENT BENEFITS TO EMPLOYEES.
i ShortTerm
ShorttermemployeebenefitsarerecognisedasanexpenseaspertheCompany’sschemebasedonexpectedobligations.
ii. Post Retirement
Postretirementbenefitscompriseofprovidentfund,superannuationandgratuitywhichareaccountedforasfollows:
a) Providentfund
This isadefinedcontributionplan.Contributions inrespectofstaffandworkersareremittedtoprovidentfundauthoritiesinaccordancewiththerelevantstatuteandarecharged to profit and loss account as andwhen due. TheCompany has no furtherobligationsforfutureprovidentfundbenefitsinrespectoftheseemployeesotherthanitsannualcontributions.
37
Annual Report 2009 - 2010
b) Superannuation
Thisisadefinedcontributionplan.TheCompanymakescontributionaspertheschemeto Superannuation Fund administered by Life Insurance Corporation of India. TheCompanyhasno furtherobligation for future superannuationbenefitsother than itsannualcontributionsandrecognisessuchcontributionsasexpenseasandwhendue.
c) Gratuity
Thisisadefinedbenefitplan.Provisionforgratuityismadebasedonactuarialvaluationusingprojectedunitcreditmethod.Actuarialgainsandlosses,comprisingofexperienceadjustments and the effects of changes in actuarial assumptions, are recognisedimmediatelyintheprofitandlossaccountasincomeorexpense.
12 . RESEARCH & DEVELOPMENT
Research & Development expenditure of revenue nature is charged to Profit & Loss A/c, while CapitalExpenditureisaddedtothecostoffixedassetsintheyearinwhichtheyareincurred.
13. DEFERRED TAX LIABILITY
DeferredTaxresultingfromtimingdifferencebetweenbookandTaxprofitisaccountedforunderliabilitymethod,atthecurrentrateoftax,totheextent,thetimingdifferencesareexpectedtocrystallize.
14. INTANGIBLE ASSETS
ImpairmentofAssets:
Thecompanyassessesateachbalancesheetdatewhetherthereisanyindicationthatanassetincludinggoodwillmaybeimpaired.Ifanysuchindicationexists,theCompanyestimatestherecoverableamountoftheasset.Ifsuchrecoverableamountoftheassetortherecoverableamountofthecash-generatingunittowhichtheassetbelongsislessthanitscarryingamount,thecarryingamountisreducedtoitsrecoverableamount.Thereductionistreatedasanimpairmentlossandisrecognizedintheprofitandlossaccount.Ifatthebalancesheetdatethereisanindicationthatifapreviouslyassessedimpairmentlossnolongerexists,therecoverableamountisreassessedandtheassetisreflectedattherecoverableamount.
15. DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES:
The management is currently in the process of identifying enterprises which have providedgoods and services to the company which qualify under the definition of micro, small andmediumenterprises,asdefinedinMicro,SmallandMediumEnterprisesAct2001.Accordingly,basedoninformationavailable,theamountpayabletosuchenterprisesason31stMarch2010isNIL.
38
Annual Report 2009 - 2010
16. DETAILS OF MANAGERIAL REMUNERATION
Dr.G.V.Chalapathi Mr.G.Radhakrishna
Salary and Allowances : Rs .10,20,000/- Rs.10,20,000/-
Perquisites : Rs. 65,096/- Rs. 80,174/-
Retirement Benefits : Rs. 90,000/- Rs 90,000/-
Provision for Leave Salary : Rs 29,032/- Rs. 29,032/-
Total : Rs. 12,04,128/- Rs.12,19,206/
Mr. G.S. Sridhar Mr. G.V.Gopinath
Salary and Allowances : Rs. 7,68,000/- Rs. 7,68,000/-
Perquisites : Rs. 32,852/- Rs. 20,160/-
Retirement Benefits : Rs. 72,000/- Rs. 72,000/-
Provision for Leave Salary : Rs. 23,226/- Rs. 23,226/-
Total : Rs. 8,96,078/- Rs . 8,83,386/-
17. SALES TAX & CENTRAL EXCISE DUTY PENDING DISPUTE
S.No Name of
the Statute Nature of Dues
Amount (Rs.)
Pertaining Present Status
i. SalesTax SalesTaxDemand 8,25,477 1994-1995 OnAppealthecasewasremandedtotheAssessingOfficer
ii. SalesTax SalesTaxDemand 3,53,788 1995-1996 -do-
iii. SalesTax SalesTaxDemand 1,28,925 1997-1998 -do-
iv. SalesTax SalesTaxDemand 80,755 2001-2002 -do-
v. CentralExcise
ExciseDutyDemand 2,18,870
2007-2008 AppealpendingwithTheAssistantCommissionerofCentralExcise,Chennai
vi. CentralExcise
ExciseDutyDemand 4,12,853
2008-2009 AppealpendingwithTheAssistantCommissionerofCentralExcise,Chennai
39
Annual Report 2009 - 2010
NOTES ON ACCOUNTS
18. LEASES
ThecompanyisobligatedundercancellableoperatingleasesforKavarapetandMarasurfactorieswhicharerenewableattheoptionsofboththelessorandthelessee.Theexpenseunderthecontracted lease amounts to Rs. 31,50,956/- ( previous year Rs. 42,25,691/-)
19. DISCLOSURE UNDER AS-15 2009 – 2010 2008 - 2009
(i) DefinedContributionPlans:-
(a) Contribution to Provident Fund Rs. 9,15,579/- Rs. 8,67,571/-
(b) Contribution to Superannuation Fund Rs. 4,33,284/- Rs. 4,33,284/-
Effective 1st April 2009, the company has adopted revised accounting standard AS15 – “Employee Benefits” issued by the ICAI.
(ii) DefinedBenefitPlans:-
Gratuity: -
The Gratuity liability is covered by a Master Policy taken out with LIC of India under the CashAccumulationScheme.TheFollowingtablesetoutthestatusofthegratuityplanasrequiredundersectionAS15.
The details are as follows :-
1 Table Showing changes in present value of obligation as on 31.03.2010 31.03.2009
Particulars Amount Rs. Amount Rs.
Presentvalueofobligationasatbeginningofyear 25,95,598 22,01,835
InterestCost 2,07,648 1,76,147
CurrentServiceCost 2,05,032 1,67,320
BenefitsPaid -6,53,231 -8,23,615
Actuarial (gain)/loss on obligations -3,26,910 8,73,911
Presentvalueofobligationasatendofyear 20,28,137 25,95,598
2 Table Showing changes in the fair value of plan assets as on 31.03.2010 31.03.2009
FairvalueofplanAssetsatbeginningofyear 1,99,418 9,34,256
ExpectedreturnofplanAssets 25,704 71,729
Contribution 6,00,000 17,048
Benefitspaid -6,53,323 -8,23,615
40
Annual Report 2009 - 2010
Actuarial (gain)/loss on plan Assets Nil Nil
FairvalueofplanAssetsattheendofyear 1,71,891 1,99,418
3 Table Showing fair value of plan Assets as on 31.03.2010 31.03.2009
Fair Value of plan Assets at beginning of year 1,99,418 9,34,256
Actualreturnofplanassets 25,704 71,729
Contribution 6,00,000 17,048
Benefitspaid -6,53,231 -8,23,615
FairvalueofplanAssetsattheendofyear 1,71,891 1,99,418
FundedStatus -18,56,246 -23,96,180
ExcessofActualoverestimatedreturnofplanAssets Nil Nil
(Actual rate of return = Estimated rate of return as ARD falls as on 31st March)
4 Actual Gain/loss recognized 31.03.2010 31.03.2009
Actuarial (gain)/loss on Obligations 3,26,910 -87,391
Actuarial (gain)/loss for the year – plan Assets Nil Nil
Actuarial (gain)/loss on Obligations -3,26,910 8,73,911
Actuarial (gain)/loss recognized in the year -3,26,910 8,73,911
5 The amounts to be recognized in balance sheet and statement of Profit & Loss
31/03.2010 31/03.2009
Present Value of obligations as at the end of year 20,28,137 25,95,598
Fairvalueofplanassetsasattheendofyear 1,71,891 1,99,418
FundedStatus -18,56,246 -23,96,180
Net asset/(liability) recognized in the balance sheet 18,56,246 23,96,180
6 Expenses Recognised in statement of Profit & loss 31.03.2010 31.03.2009
Currentservicecost 2,05,032 1,67,920
Interestcost 2,07,648 1,76,147
Expectedreturnonplanassets -25,704 -71,729
Net Actuarial (gain)/loss recognized in the year -3,26,910 8,73,911
ExpensesrecognizedinstatementofProfit&Loss 60,066 11,45,649
Expendedrateofreturnontheplanassets8%Theestimateoffuturesalaryincrements,contributioninactualvaluation,taxingintoaccountofinflation,senioritypromotionandotherfactorsintheemployment.
41
Annual Report 2009 - 2010
20. Asat31st March,2010, the company had Rs.659.08 lakhs unabsorbed depreciation and carried forwardoflossesundertaxlaws.
21. SEGMENTAL REPORTING
ThecompanycurrentlyoperatesinonebusinesssegmentinmanufacturingofPPbagsandonegeographicalsegmentinIndia.InlinewithAS17,therelevantinformationisavailableinthebalancesheetandtheprofitandlossaccount.
22. DISCLOSURES UNDER ACCOUNTING STANDARD -18 :-
RELATED PARTIESwithwhomtransactionshavetakenplaceduringtheyearareasfollows.
S. No.
Name of the Party
Nature of Relationship
Nature of Transactions
Transaction During the year (Net)
(Rs.)
Closing Balance as on
31.03.2010(Rs.)
Maximum Amount
Outstanding during the Year
1 G.V. Chalapathi KeyManagementPersonnel
Salary&Allowances
12,04,128 1,34,960 1,34,960
2 G.S. Sridhar Relative of Key ManagementPersonnel
Salary&Allowances
8,96,078 1,03,310 1,03,310
3 G.P.N. Gupta Relative of Key ManagementPersonnel
Rent Paid 78,000 - 6500
4 G.V. Gopinath Relative of Key ManagementPersonnel
Salary&Allowances
8,83,386 1,06,020 1,06,020
5 G. Muralidhar Relative of Key ManagementPersonnel
Rent-
32,000-
--
4000
6 G. Radhakrishna KeyManagementPersonnel
Salary&Allowances
12,19,206 1,14,310 1,14,310
7 SuchitraTMurali Relative of Key ManagementPersonnel
Int.onFD&Repayment of FD
8,7601,58,760
- -,
8 Rishab T M Relative of Key ManagementPersonnel
Int.onFD&Repayment of FD
2,88552,885
- -
9 Rohit T M Relative of Key ManagementPersonnel
Int.onFD&Repayment of FD
2,88552,885
- -
10 JumboBagLtd. AssociatedCompany
JobWorkEarnedSalesPurchase
3,16,5394,84,0074,96,955
1,93,571 9,04,662
11 G.F. Impex Pvt Ltd.
AssociatedCompany
RentSales
3,81,00010,64,464
--
10,64,464
12 BalajiTradingEnterprisesPLtd
AssociatedCompany
UnsecuredLoan 1,50,000 80,21,135 96,75,000
InterestonLoan 8,58,122
14 B.SangeethaLakshmi
Relative of Key ManagementPersonnel
Int.onFD&Repayment of FD
9,279-
85,000 -
42
Annual Report 2009 - 2010
23. CONTINGENT LIABILITIES
Sl.No.
Particulars Asat31.03.2010(Rs.)
Asat31.03.2009(Rs.)
a) DisputedAmountofSalestax 13,88,945 13,88,945
b) DisputedAmountofCentralExcise 6,31,723 3,70,589
Noprovisionhasbeenmadeintheaccountsinrespectofdisputedamountofsalestaxasthecompanyhascontestedthecaseand isconfidentofgettingtheverdict in its favour.Certainclaims/show cause notices disputed have neither been considered as contingent liability nor acknowledgedasclaim,basedontheopinionobtained,sincethepossibilityoflossisremote.
24. SecuredLoansavailedfromTheKarnatakaBankLimitedaresecuredbyfirstchargeonspecificassets acquired out of the loan and personal guarantees of Messrs. G.V.Chalapathi, G. Muralidhar, G. Radhakrishna, G.S.Sridhar and G.V.Gopinath,Directors of the company.
25. (a)WorkingcapitalfacilitatesfromTheKarnatakaBankLimitedaresecuredbyfirstchargeonthecurrentassetsconsistingofstockofrawmaterials,finishedgoods,work-in-process,debtors and personal guarantees of Messrs. G.V.Chalapathi, G.Muralidhar, G. Radhakrishna, G.S.Sridhar and G.V.Gopinath, Directors of the company .
(b) WorkingcapitalloanconvertedtoTermLoan,repaymentof3yearsSecuredwithexistingterms&conditions.
26. InterestFreeSalesTaxDeferral:
Due Within 1 year : Rs. 18,19,125/-
Due Within 1 to 5 Years : Rs. 1,24,25,789/-
Due more than 5 Years : Rs. 84,23,296/-27. Advances & Deposits include an amount of Rs.16,55,273/- being Admitted and Disputed Sales
Tax of Rs.14,27,605/- for various years paid and Income Tax for the Assessment Year 1996-97 of Rs.2,27,668/- paid, but kept as Deposit in the books since the company has gone on appeal inrespectofthesematters.Necessaryadjustmentsinthebooksofaccountswillbemadeintheyearinwhichtheoutcomeoftheappealisknown.
28. Deferred Tax Liability accrued during the year aggregating to Rs. (27,41,541/-) Previous yearRs. 1,06,24,299/-) has been recognised in P&L A/c.
43
Annual Report 2009 - 2010
Deferredtaxliability/Asset as on
01.04.2009Rs.
CurrentChargetoP& L a/c
Rs.
Deferredtaxliability/Asset as on
31.03.2010Rs.
1.DeferredTaxLiability 1,95,89,969 (2,02,731) 1,93,86,968
2.DeferredTaxAsset 1,98,63,477 25,38,810 2,24,02,287
DeferredTaxLiability(Net) (2,73,778) (27,41,541) (30,15,319)
29. Expenditure in Foreign Exchange
As at 31.03.10 (Rs.)
As at 31.03.09 (Rs.)
ImportedMaterialsPurchase(CIF) 3,586,753 -
30. Foreign Exchange Earnings
ExportSales(FOB) 8,904,161 45,79,862
31. Remuneration to Auditors :
I) StatutoryAuditFees 1,00,000 75,000
II) InOtherCapacity
a) TaxAudit 25,000 25,000
b) ServiceTax 12,875 10,300
c) FeesforCertification 3,586 3,372
32. ConfirmationofBalancesinrespectofdebtors,creditorsarenotobtainedinfewcases.
33. Previous year figures have been regrouped and recast wherever necessary for comparisonpurpose.
34. CapacityandProductionduringtheyear2009–2010 Product : PolymerProducts LicensedCapacity : NotApplicable InstalledCapacity : 7920Tons Production : 3907Tons
44
Annual Report 2009 - 2010
A) i. Raw - Materials and Intermediates Consumed:
Particulars UOM2009 – 2010 2008 – 2009
Qty Value (in Rs.) Qty Value (in Rs.)
a. PP Granules Kgs 3,440,172 176,316,302 33,90,020 18,00,15,917
b.Others 19,349,319 2,91,77,696
ii. Consumption of Imported & Indigenous Raw – Materials, Stores and spare parts and the percentage of each to the consumption
Particulars2009 – 2010 2008 – 2009
% Value (in Rs.) % Value (in Rs.)
i. Raw Materials
a. Imported 2 35,86,753
b. Indigenous 98 186,343,739 100 20,48,17,259
ii. Stores,Spares&Consumables
a. Imported - - -
b. Indigenous 100 5,735,129 100 43,76,354
B) STOCK SUMMARY FOR THE YEAR 2009 – 2010
NameoftheCommodity
Unit OpeningBalance
Receipts Issues Closingstock
2009-10 2008–2009
Hessian Metres 13,702 274,690 280,914 7,477 13,702
Paper Kgs 62,591 472,014 470,305 64,299 737
Bitumen Kgs 45 - - 45 45
Granules Kgs 1,25,958 3,435,264 3,440,172 121,050 1,25,958
Others Nos. 30 - - 30 30
HDPE/PP Bags Nos. 15,62,618 27,942,407 28,609,895 895,130 15,62,618
HDPE/PP Kraft Bags Nos. 1,29,941 6,409,163 6,396,923 142,181 1,29,941
45
Annual Report 2009 - 2010
C) CLOSING STOCK VALUE WITH QUANTITY AS ON 31.03.2010
Name of the Commodity
Unit Quantity Value
2009-10 2008-09 2009-10 2008-09Hessian Metres 7,477 13,702 1,25,647 1,58,801Paper Kgs 64,299 737 13,71,453 7,747Bitumen Kgs 45 45 1,170 1,170Granules Kgs 1,21,050 1,25,958 88,15,723 77,92,598Others Nos 30 30 18,000 18,000HDPE/PP Bags Nos 8,95,130 15,62,618 2,91,16,055 1,94,08,534HDPE/PP Kraft Bags Nos 1,42,181 1,29,941 28,00,119 23,53,779HDPE/PP Fabric & HDPE/PP Kraft Fabric 2,50,23,923 1,92,34,289
AccessoriesforBags 11,52,972 24,43,971
WaterProofPackingMaterials
- 325
MiscellaneousItemsIncludingConsumables 28,66,870 1,27,72,628
ProvisionforExciseDuty 61,00,300 39,72,500
Total Value of Closing Stock 7,73,92,232 6,81,64,342
D) SALES SUMMARY FOR THE YEAR 2009-10
Name of the CommodityValue (Rs.)
2009 – 2010 2008– 2009PolyPropyleneBags 22,80,20,842 29,78,75,975Others 8,03,05,165 3,90,71,210
46
Annual Report 2009 - 2010
Balance Sheet Abstract and Company’s General Business Profile as per Part IV of Schedule VI to the Companies Act, 1956.i) Registration Details
Registration No 2 1 8 8 8 StateCode 1 8
BalanceSheetDate 3 1 0 3 2 0 1 0 DateMonthYearii) Capital raised during the year (Amount in Rupees Thousands) Public Issue Rights Issue
N I L N I L BonusIssue PrivatePlacement
N I L N I L
iii) Position of mobilisation and Deployment of funds (Amount in Rupees Thousands) TotalLiabilities TotalAssets
2 2 0 7 0 8 2 2 0 7 0 8 Source of Funds Paid - Up Capital Reserves and Surplus
6 0 9 6 0 N I L DeferredTaxLiability
3 0 1 5 SecuredLoan UnsecuredLoan
1 2 4 7 6 9 3 4 9 7 9 Application of Funds NetFixedAssets Investments
1 1 2 9 6 5 N I L NetCurrentAssets MiscellaneousExpenditure
9 7 2 1 2 N I L AccumulatedLoss
7 5 1 5
iv) Performance of the Company (Amount in Rupees Thousands) Turnover TotalExpenditure
2 7 0 2 3 2 2 7 9 1 7 3 +-ProfitBeforeTax + -ProfitAfterTax
- 8 9 4 1 - 7 5 1 5 Earning per Share in Rupees Dividend Rate %
- 1 . 0 4 N I L
v) Generic names of three Principal Products / Services of Company (as per monetary terms)
ItemCodeNo(ITCCode) 6 3 0 5 1 0
ProductDescription L A M I N A T E D J U T E B A G S
ItemCodeNo(ITCCode) 9 9 9 3 0 0 0 9
ProductDescription L A M I N A T I O N O F P A P E R B O A R D
ItemCodeNo(ITCCode) 3 9 2 3 1 0
ProductDescription S A N D W I C H E D B A G S
SignatoriestoSchedules1to16
ForandonbehalfoftheBoard Asperourreportofevendate
G.RADHAKRISHNA G V GOPINATH For M. SRINIVASAN & ASSOCIATESManagingDirector ExecutiveDirector CharteredAccountants
G S SRIDHAR V.RAMESH N.KISHORE ExecutiveDirector CompanySecretary Partner
Place:Chennai MembershipNo.025789Date:May27,2010
47
Annual Report 2009 - 2010
CASH FLOW STATEMENT FOR THE PERIOD FROM 01.04.2009 TO 31.03.2010
(Pursuant to Clause 32 of the Listing Agreement)A. Cash Flow from Operating Activities Year Ended 31.03.2010 Year Ended 31.03.2009
Rs. Rs. Rs. Rs.NetProfitBeforeTaxandExtraordinaryItems (89,41,039) (2,15,75,994)AdjustmentsforDepreciation 98,54,037 97,43,198PriorPeriodAdjustments (1,50,691) 1,89,447ProfitonSaleofFixedAssets (6,133) (56,92,305)LossonSaleofFixedAssets 14,16,727 21,678InterestEarned (7,69,392) (9,99,858)InterestPaid 1,85,72,829 2,03,66,577
2,89,17,377 2,36,28,737OperatingProfitbeforeWorkingCapitalChanges 1,99,76,338 20,52,743AdjustmentforTrade Receivables - (Increase) / Decrease 57,34,697 96,38,813Inventories - (Increase) / Decrease (1,34,44,446) 3,17,54,977Trade Payables - Increase / (Decrease) 1,53,28,465 (2,01,15,753)
76,18,716 2,12,78,037Cash Generated from Operations 2,75,95,054 2,33,30,780InterestEarned 7,69,392 9,99,858InterestPaid (1,85,72,829) (2,03,66,577)Less:DirectTaxPaid 0 2,10,000CashFlowbeforeExtraordinaryItems 97,91,617 37,54,065NetCashfromOperatingActivities(A) 97,91,617 37,54,065
B. Cash Flow from Investing ActivitiesPurchaseofFixedAssets (47,99,248) (39,31,591)SaleofFixedAssets 8,42,693 82,92,497
(39,56,555) 43,60,906NetCashusedforInvestingActivities(B) (39,56,555) 43,60,906
C. Cash flow from Financial ActivitiesProceedsfromLongTermBorrowings (58,42,238) (7,99,713)NetCashUsedinFinancingActivities(C) (58,42,238) (7,99,713)NetIncreaseinCash&Cashequivalents(A+B+C) (7,176) 73,15,258OpeningBalanceofCash&CashEquivalents 80,70,347 7,55,089ClosingBalanceofCash&CashEquivalents 80,63,171 80,70,347
ForandonbehalfoftheBoard AsperourreportofevendateG.RADHAKRISHNA G V GOPINATH For M. SRINIVASAN & ASSOCIATESManagingDirector ExecutiveDirector CharteredAccountants
G S SRIDHAR V.RAMESH N.KISHORE ExecutiveDirector CompanySecretary Partner
Place:Chennai MembershipNo.025789
Date:May27,2010
48
Annual Report 2009 - 2010
(Rs. In Lakhs)
2009-2010 2008-2009 2007-2008 2006-2007 2005-2006
OPERATING RESULTS: Turnover 3,008.19 3369.47 4415.64 3,381.72 2,713.40
Profitbeforedepreciationandtax 7.61 (215.76) 221.61 107.60 145.29
Depreciation 98.54 97.43 98.56 99.05 74.87
ProvisionforTax - (106.25) 6.28 0.96 5.86
FringeBenefitTax - 2.10 2.16 2.68 3.62
ProvisionforDeferredTax (27.43) (106.25) 25.17 2.54 23.97
ProfitafterTax (63.50) (109.72) 89.44 2.37 36.97
Dividend(IncludingDividendTax) - - - - 35.14Retained Profit. (63.50) (11.65) 89.44 2.37 1.83
SOURCES OF FUNDS ShareCapital-Equity 609.60 609.60 609.60 609.60 609.60
Reserves & Surplus (75.15) - 98.07 38.60 36.23
ShareholdersFunds 534.45 609.60 707.67 648.20 645.83Borrowings 1,597.48 1655.90 1663.90 1,771.06 1,589.39DeferredTax(Net) - (2.74) 103.51 78.33 75.78
Total 2,131.93 2262.76 2475.08 2,497.59 2,311.00
APPLICATION OF FUNDS NetFixedAssets 1,129.64 1202.73 1287.06 1,372.19 1,365.17
NetCurrentAssets 972.13 1048.38 1188.01 1,125.39 945.83
Miscellaneous Expenses / P & La/c - 11.65 - - -(Totheextentnotwrittenoff)
Total 2,101.77 2262.76 2475.07 2,497.58 2,311.00
Book Value per Equity Share 8.77 9.81 11.61 10.63 10.59EarningsperShare (1.04) (1.80) 1.47 0.04 0.61DividendonEquityShare% - - - - 5
FIVE YEARS AT A GLANCE
Regd.Office:“S.K. ENCLAVE” New No. 4 (Old No. 47), Nowroji Road, Chetpet, Chennai – 600 031.
ATTENDANCE SLIP
Regd.Folio No......................................................................... D.P.Id.* ...............................................
No.ofsharesheld...................................................................ClientId.*............................................
Mr./Mrs./Miss....................................................................................................................................
I certify that I am a registered shareholder/proxy for the registered shareholder of the Company. I hereby recordmypresence at the19th ANNUAL GENERAL MEETING of theCompanyheld at TAMILNADUFOUNDATION INC.USA, 27, Taylors Road, Kilpauk, Chennai – 600 010 at 10.30 a.m. on Thursday, the July29,2010.
.................................................................... .........................................Member’s/Proxy’s Name (IN BLOCK LETTERS) Member’s/Proxy’s Signature
Notes:PleasefillinthisattendanceslipandhanditoverattheEntranceoftheMeetingHall.
---------------------------------------------------------------------------------------------------------------------------
Regd.Office:“S.K. ENCLAVE” New No. 4 (Old No. 47), Nowroji Road, Chetpet, Chennai – 600 031.
PROXY FORM
Regd.Folio No........................................................................ D.P.Id.*...............................................
No.ofsharesheld...................................................................ClientId.*............................................
I/We...................of.......................................in the district of....................................................being
member/members of Stanpacks(India)Limited hereby appoint.......................of............... in the district
of.....................or failing him.................. in the district of......................as my/our proxy to vote for me/
us on my/our behalf at the 19th ANNUAL GENERAL MEETING of the Company to be held on 29th July,
2010andatanyadjournmentthereof.
Signedthis.........................dayof.....................2010.
Signature..................................................................
Notes: 1) AMemberentitledtoattendandvoteattheMeetingisentitledtoappointoneormoreProxiestoattendand
voteinsteadofhimselfandaProxyneednotbeaMemberoftheCompany.Proxies,inordertobeeffectivemustbereceivedbytheCompanynotlessthan48hoursbeforethetimeforholdingthemeeting.
2) InthecaseofaBodyCorporate,theProxyFormshouldbeexecutedunderitsCommonSealorbesignedonitsbehalfbyanofficeroranAttorneydulyauthorisedbyit.
3) Wheretherearejointregisteredholdersofanyshare,anyoneofsuchpersonsmayvoteattheMeetingeitherpersonallyorbyproxyinrespectofsuchshareasifhewassolelyentitledthereto;andifmorethanoneofsuchjoint-holdersbepresentattheMeetingeitherpersonallyorbyproxy,thenoneofthesaidpersonssopresent whose name stands first on the Register of Members in respect of such share shall alone be entitled to voteinrespectthereof.
4)* Applicableforinvestorsholdingsharesinelectronicform.
Please be informed that no gifts or compliments will be given at the time of Annual General Meeting.
Affix15PaiseRevenueStamp