MANAGEMENT DISCUSSION AND ANALYSIS1. Industry structure and developments
The Indian economy has maintained its growth momentum in the current financial year.The improvement is particularly pronounced in manufacturing and in capital goods andconsumer durable.
The overall performance of your Company has been satisfactory. Your Company focused onincreasing sales as well as profotability. The company has already started production inPM 3 machine installed at the Vapi factory. The modification to die PM 1 Machine at Vapiplant has been successfully completed by the Company, resulting in to the overallimprovement in the quality of the papers to the International Standard as well as increasein the speed of machine to obtain more production. Thus there has been a spurt inexpansion and modernization of the plants in order to fulfil] the additional demand.
2. Opportunities and Threats
With GDP growth forecasts of 7%-8% over the next few years, the Indian Economy willcontinue to provide several attarctive growth opputunity. The Company is putting morestress on quality control measures as well as maximum capacity utilisation, resulting inincrease in production and reduction of wastage. Company is looking for more exportoportunity.
The Company has embarked upon expansion cum modernization projects and expansion cummodernization plans envisages infusion of fresh funds in the share capital of the Company.Due to the Lack of funds available for upgradation or new setups company is planingvarious option to raise the finance.
3. Segment-wise or product wise performance
The Company has only one business segment i.e. paper and hence segment wise or productwise performance is not given.
4 Outlook, risks andconcerns
With continous and indefatigable efforts of the management to run and maganeg theaffairs of the Company efficiently and effectively at all levels of operations andcontinuing upsurge in economy, your company is well set on the road to prosperty.
The Company is expose to risk from international competition, adverse Governmentpolicieis, inflationery trend in cost of raw materials etc. The Company is fully concernedabout environment protection and is doing every bit to provide safe and healthyenvironment for its employees and the community.
The Company is well capable and ready to mitigate the risk and concern by followingwell-formulated and foresighted policies and strategies which will improve the quality ofproducts, spread sense of cost consciousness at all level of operations and makes theproducts environment friendly and most preferred in the market.
5. Internal control systems and their adequacy
The company has adequate internal control systems that commensurate with the structureand operations of the company to provide resonable assurance:
• that assets are safeguraded and protected against loss from unauthorised use ordiposition.
• that transactions are authorised, recorded and reported properly and
• that accounting records are properly maintained and financial statements arereliable
The key elements of internal control systems are as follows:
• clearly defined organisation structure
• well defined authorisation for conducting business
• management control through efficient reporting system
• a regular review of systems and procedures
The Company has an Audit Committee. The Committee regularly reviews the Internal AuditReport to ascertain their observations on financial reports and control concerns. TheAudit Committee's observations are acted upon by the management
6. Discussion on financial performance with respect to operational performance
The year under review was overall, a good and eventful year for the Company. Despite ofstiff competition, the company has achieved net sales of Rs.10524.47 Lacs and a net profitof Rs. 32.08 Lacs as against Rs.7289.19 Lacs and Rs.240.24 Lacs respectively of thecorresponding previous year. The Company has, recently, been able to penetrate USA withgood export order.
There was continuous thrust from the management to develop a strong R&D andtechnical service team to better understand the changing customer needs, improve productquality, productivity and process controls through technology up-gradation. Several energyconservation measures were introduced during the year which will result in recurringsaving in mpower, fuel and spares. Company continued several measures of cost control andexpense optimization.
7. Material developments in Human Resources/ Industrial Relations
The company has a high regard for the well-being of its members and involves all in itsfunctioning and growth. The number of employees as on March 31, 2009, stood at 64.
The workers are encouraged to maintain high levels of productivity by an innovativeincentive scheme encompassing Production, Sales and Quality. A continuous focus area isthat of training and the company constantly encourages both internal and externallearning.
A focus initiative is also being implemented to enhance performance management. The aimhere is to increase the scope of each individual's job, and have employees stretch theirpotential and maximise their contribution for the effective functioning of the Company.The Company is committed to maintaining harmony in indusrial relations, through spirit ofpartnership and collaboration. As aresult, industrial relations have remained cordial.
8. Cautionary Statement
Statements in the Management Discussions and Analysis describing the Company'sobjectives, projections, estimates, expectations may be "forward lookingstatements" within the meaning of applicable laws and regulations. Actual resultscould differ materially from those expressed or implied. The Company assumes noresponsibility to publicly amend, modify or. revise any forward looking statements, on thebasis of any subsequent developments, information or events.