MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Financial year of the company consists of 12 months ended as on 31st March, 2012.
INDUSTRY STRUCTURE & FUTURE OUTLOOK: Company is continuously focusing onDevelopment of Fluoro Speciality Chemicals. As a part of development, one product was wellaccepted in market. Company is also developing another product for Vikram Sarabhai SpaceCentre (VSSC), Tiruvananthapuram, which was accepted by the customer. Company is inprocess to commercialize the same product.
Simultaneously efforts are also being taken to reduce specific consumption of the rawmaterials and necessary modification is being carried out in the plant. Plant capacity isvery small as compared to the competitors, hence company is continuously focusing nichearea of Fluoro Speciality Chemicals. Company is also discussing for development of otherproduct for Defense Research and Development Organization (DRDO).
Development of Fluoro Speciality Chemicals.
KEY THREATS INCLUDE:
Increase input prices i.e., AHF, Chloroform, Furnace Oil and PTFE. China has increasedPTFE production, hence there is a pressure on our product.
SEGMENT WISE PERFORMANCE:
The company is primarily having one segment i.e., PTFE
|Production (MT) ||Year ended 31/03/2012 ||Year ended 31/03/2011 |
|PTFE ||139.19 ||124.58 |
OUTLOOK & INITIATIVE FOR CURRENT YEAR
Company is continuously making efforts to increase the market share of the FluoroSpeciality Chemicals as this product contributes more.
Company is planning to separate valuable material from waste as it will be marketablein the Market and it adds some margins to the company.
INTERNAL CONTROL SYSTEM AND ADEQUANCY
Internal controls are supported by Internal Audit and Management reviews. Companyensures existence of adequate internal control through documented policy and procedures tobe followed by the executives at various levels.
As part of good Corporate Governance the Audit Committee constituted by the Boardperiodically reviews the internal controls, Audit programmes, Financial Results,Recommendations of the Auditors and Management replies to the Auditors qualifications, etc
REVIEW OF FINANCIAL PERFORMANCE
The financial statements have been prepared in accordance with the requirements of theCompanies Act, 1956 and generally accepted accounting principles.
The financial performance highlights are as follows:
The sales turnover was Rs.4557.30 lacs against Rs.3039.37 lacs for the previous yearshowing an increase of 50% and operating profit for the year Rs.252.25 lacs as against223.47 lacs for the previous year.
Statement in this Management Discussion Analysis describing the Companysobjectives, Projections, estimates and expectations may be forward looking statementswithin the meaning of applicable laws and regulations.
(Annexure V to Directors report)