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GEOLOGGING INDUSTRIES LIMITED
ANNUAL REPORT 2011-2012
MANAGEMENT DISCUSSION AND ANALYSIS
The Company is in the business of oil field service and mainly focused on
Mudlogging Services, Drilling Data Monitoring Services. The key issues of
the Management Discussion and Analysis are given below.
(a) Industry structure and developments:
The size of the oil and gas industry in terms of turnover stands at USD 160
bn. The value of crude oil and LNG imports into India in 2010/11 were
around US$98 billion. About 78 per cent of India's petroleum consumption is
met from imports (mostly of crude oil), while about 25% of natural gas
(including LNG) consumption comes from imports.
The growing oil and Natural Gas exploration world over and specifically in
India given great opportunity for the company.
(b) Strength:
The strength of a company is known from the profit it earns during the last
years and sound advances. It also depends on the Government policies of
taxation. All round economic reforms and consequent growth in the sector
will give boost to the company's business.
(c) Comment on Current year's performance:
Receipts: The Receipt has been phenomenal for the first year of its
operations.
Operating Expenses : The operating Expenses are well under control.
Operating Profits : The Operating Profits are up to industry mark.
Indirect Expenses : The Indirect Expenses are under control.
Depreciation : Reasonable amount of Depreciation is provided.
Profit before tax : Profit before tax is also an improving trend.
Taxation : Taxation is Provided as per Income Tax Act.
Debtor/Sales : Debtors are reasonable.
Creditors/Purchase : The Company has an established credit.
d) Opportunities and threats:
Over the next decade, global demand for oil & gas is set to rapidly
increase as rising populations and economic growth help to drive the
industry. This will create a need for additional oil & gas infrastructure
to be constructed. At the same time, many countries around the world are
currently facing a number of security challenges stemming from civil
unrest, terrorist activities, and a competitive global market. Together,
these factors will create substantial opportunities for companies involved
in the oil & gas infrastructure.
(e) Segment wise performance:
The business of the Company falls under a single segment i.e. Mudlogging
activity related to exploration of oil and natural gas for the purpose of
Accounting Standard AS-17.
(f) Outlook:
The continual increase in demand of oil and other limited resources in
india and other countries is expected to give the necessary support to the
oil industry. The Company is making all efforts to accelerate growth of its
business. It expects to improve its position in the market by focusing on
technological advancement and by working aggressively in the areas of
productivity, efficiency and cost reductions.
(g) Risk and concerns:
The main risk factors are internal to the company. The Company is expecting
some big contracts from Indian and Non-Indian corporate in the Current
year. The materialization of the same may effects the future operations of
the company.
(h) Internal control system:
Internal audit and other controls have been found to be adequate. These are
reviewed periodically by the Audit Committee and found the performance
satisfactory.
(i) Developments in human resources and industrial relations:
Information as per Section 217(2A) of the Companies Act, 1956 read with the
Companies (Particular of Employees) Rules, 1975 is not required to be given
as no employee falls under it. The Company continued to have cordial
relations with all the employees.
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