MANAGEMENT DISCUSSION AND ANALYSIS
Management discussion and analysis of financial condition and results of operationsinclude forward looking statements based on certain assumptions and expectations of futureevents. The Company cannot assure that these assumptions and expectations are accurate.Although the management has considered future risks as part of the discussions, futureuncertainties are not limited to the management perceptions.
The financial statements have been prepared in compliance with the requirements of theCompanies Act, 1956 and Generally Accepted Accounting Principles (GAAP) in India. TheManagement of the Company accepts responsibility for the integrity and objectivity ofthese financial statements, as well as for various estimates and judgments used therein.The estimates and judgments relating to the financial statements have been made on aprudent and reasonable basis, in order that the financial statements reflect in a true andfair manner the form and substance of transactions, and reasonably present the Company'sstate of affairs and profits for the year. The following discussion may include forwardlooking statements, which may involve risks and uncertainties, including but not limitedto the risks inherent to Company's growth strategy, dependency on certain clients,dependency on availability of qualified technical personnel and other factors discussed inthis report.
Industry structure and developments
The Company is engaged in the manufacturing Calcium Carbonate, which is used as inputmaterial in various industrial sectors such as Tooth Paste, Pharmaceuticals, PVC products,Rubber, Plastic, Polymer, Cable, Leather, Paper and Paints etc. The Calcium CarbonateIndustry comprises organized and un-organized sectors. The unorganized sector consists ofsmall and tiny units which are out of the purview of paying Excise Duty etc.
Your Company is one the largest producer of Calcium Carbonate in the Country andoperating in the sector since 1976. The Company operates two manufacturing plants one inRaigad District, Maharashtra and in Paonta Sahib, Himachal Pradesh.
Opportunities and Threats
The Company's products are well accepted in the market. The cost reduction plans of thecompany have provided an edge to the company to compete with unorganized sector. Thecompany continues to face competition from other big players and other unorganized playersin calcium carbonate industry.
The high cost of funding and the competitors from the existing players could affect theprofitability and growth of the company to a certain measure.
The Company is exploring overseas market for its products and optimistic to achievegood results. The growth in industrial output and increase in investment in core andinfrastructure sector should improve the sentiments of Economy. The growth in othersectors would also follow which in turn would increase the prospects of the company.
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On behalf of the Board of Directors
|PLACE : Mumbai ||H.I.DAWOODANI ||A.H.DAWOODANI |
|DATED: 30th July, 2012. ||Director ||Managing Director |