MUNAK CHEMICALS LIMITED
ANNUAL REPORT 2001-2002
MANAGEMENT DISCUSSION AND ANALYSIS
The Fertilizer Industry has been adversely effected due to the adverse
Policies of Govt. of India, as a result thereof, margins have been under
pressure due to withdrawal of subsidy.
a) Industry structure and development.
The most of the Fertilizer Plants in India are lying closed or are on the
verge of shut down of their operations. The development of the Industry
wholly depends upon the policies of Govt. of India.
b) Opportunities and threats.
The opportunities are being explored to diversity in other areas as the SSP
Fertilizer of India is facing threat low demand on one side and withdrawal
of subsidy by Govt. on the other side. As such other business opportunities
are being looked into.
c) Risks and concerns.
The Company has already closed the operation and there had been a Nil
turnover of SSP, the mass product of the Company.
So far as SSP Industry is concerned the future is very bleak due to
availability of Imported Fertilizer and other substituted at more
economical prices and drastic reduction in demand due to drought conditions
in the northern part of India.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has proper and adequate system of internal control in order to
ensure that all transactions are authorised, recorded and reported
correctly. Regular internal audit checks are carried out to ensure that
adequate systems are in place. The management continuously reviews the
internal control systems and procedures to ensure orderly and efficient
conduct of business. The emphasis of internal control prevails across
functions and processes covering the entire activities of the company.
COMPANY'S FINANCIAL PERFORMANCE AND ANALYSIS
Other matters such as operational and financial performance have been
discussed under the respective heads in the Director's Reports.
HUMAN RESOURCE DEVELOPMENT/INDUSTRIAL RELATIONS
Our employees continue to be the backbone of our organisation. Our efforts
are towards instilling a level of competency in the work force. The human
resource has to be more dynamic and result oriented in the present day
On behalf of Board of Directors
PLACE : CHANDIGARH
DATED : 14TH OCTOBER, 2002 (V.K. GARG)