Dear Members,
I feel greatly privileged to welcome you to the 39th Annual General Meeting
of your company and hope that all of you and your family members are doing well.
The Annual Report together with the Audited Accounts and Board's Report for the
Financial Year ended 31st March 2024 are with you. I hope that it gives you a
clear insight into the working of the Company during the year under review.
Global Economy
Compounding the damage from the Russian invasion of Ukraine has magnified the slowdown
in the global economy, which is entering what could become a protracted period of feeble
growth and elevated inflation, according to the World Bank's latest Global Economic
Prospects report. This raises the risk of stagflation, with potentially harmful
consequences for middle and low-income economies alike.
Global growth is projected to stay at 3.1 percent in 2024 and rise to 3.2 percent in
2025. Elevated central bank rates to fight inflation and a withdrawal of fiscal support
amid high debt weigh on economic activity. Inflation is falling faster than expected in
most regions, amid unwinding supply-side issues and restrictive monetary policy. Global
headline inflation is expected to fall to 5.8 percent in 2024 and 4.4 percent in 2025,
with the 2025 forecast having been revised down. It is expected to hover around that pace
over 2025-26, as the war in Ukraine disrupts activity, investment, financial sector
stress, and trade in the near term, pent-up demand fades, and fiscal and monetary policy
accommodation is withdrawn, as a result of the damage from the pandemic and the war.
Indian Economy
Indian economy remained resilient with robust 7.6% growth rate of GDP in FY 2023-24
over and above 7% growth rate in FY 2022-23. Growth was underpinned by strong investment
activity bolstered by the government's capex push and buoyant private consumption,
particularly among higher income earners.
India generates 26,000 tonnes of Plastic Waste every day. Even though having such great
advantages, government and many Environmental Activists are calling for a ban on Plastics.
For tackling the menace of Plastic Waste in India, the Government has completely banned
import of Solid Plastic waste/ scrap in the Country. However, the very properties that
make Plastic so dangerous, but its durability and long lifespan also make it a great
asset. Plastic is such a material that can be constantly recycled. This helps Ecology and
the Economy, especially when the human population is growing rapidly, and our lifestyle
demands are increasing exponentially. The solution is not to Ban Plastic, but to ensure
that it is used responsibly and recycled properly.
Scenario in Kkalpana Industries (India) Limited
A Scheme of Arrangement between the Company, Ddev Plastiks Industries Limited (CIN:
24290WB2020PLC241791) ("DPIL"), Wholly Owned Subsidiary of the Company, and
their respective Shareholders and Creditors, providing for, inter alia, transfer of the
Compounding Business Undertaking of the Company, on a going concern basis, to Ddev
Plastiks Industries Limited, under provisions of Sec. 230-232 of the Companies Act, 2013,
("the scheme") was considered and approved by the Hon'ble National Company Law
Tribunal, Kolkata Bench (NCLT) vide its order dated 4th March, 2022 having an
appointed date wef 01.04.2021, copy whereof was filed with Ministry of Corporate Affairs
(MCA) on 01.04.2022, being the effective date. Accordingly, the business undertaking of
Compounding Business stands demerged and vested in Ddev Plastiks Industries Limited in
accordance with the said NCLT Order.
Your company has started taking effective steps to safeguard the topline and bottomline
of the company. In this regard, you should be happy to note that your company recognizes
that continuous innovation across products, processes and systems will be the springboard
to catapult your company to higher profits and growth. Your directors are confident that
these steps will protect your company from the adverse impact of slowdown in Indian
economy.
The company's net revenue for the year ended 31st March 2024 stood at Rs.
6208.87 Lacs as against Rs. 27,220.64 Lacs for the Financial Year 2022-23. Profit after
tax, for the year under review, stands at Rs. 21.89 Lacs, as against Rs. 190.06 Lacs in
the previous financial year. The Company's EPS is Rs. 0.02 as against Rs. 0.20 in the
previous financial year.
Acknowledgements
At the outset, I would like to extend my heartfelt gratitude to the Colleagues and
associates operating from all our manufacturing Units, offices and other ancillary
fabrication facilities who have been relentlessly working to ensure smooth and
uninterrupted operations and serve the customers, vendors, and all stakeholders with
utmost efficiency, despite the challenging times. As we continue to embark on our
transformation journey, I wish to express my heartfelt gratitude to the members of the
Board for providing continuous support and guidance to maintain the highest standards of
Corporate Governance and professionalism in running the day-to-day business of your
company. I also place on record my appreciation to regulatory/statutory bodies, banks, and
financial institutions. My special thanks go to you, dear members, for expressing your
trust in the company and helping it to shape it as an institution of great stability. I
also thank our various customers and suppliers, based in various parts of the country.