dynachem pharmaceuticals export ltd Management discussions
DYNACHEM PHARMACEUTICALS (EXPORTS) LIMITED
ANNUAL REPORT 2010-2011
MANAGEMENT DISCUSSION AND ANALYSIS
The Company is in the business of Trading in shares and Finance Activity.
The key issues of the Management Discussion and Analysis are given below.
(a) Industry structure and developments
Indian Finance market size is estimated at Rs. 395 Trillion. Approximately
one third of this demand is met through Share Market and the balance is
met through Financers and lenders. The Industry is mainly dependent on the
Investors sentiments. It is now prevailing good and getting healthy.
The fortunes of the Finance industry are. to a large extent, linked to the
growth of the Industry and Investment sentiments of the people. The
Industry is facing intense competition from the Foreign financial
Institution.
(b) Strength
The strength of a company is known from the profit it earns and sound
advances. It also depends on the Government policies of taxation.
Introduction of Securities Transaction Tax and thereby exempting Long term
Capital gain has given a big boost to the market.
(c) Comment on Current years 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
The impact of boom in capital market and real estate market due to
government support has provided a boost to the economy and it is set to
grow at 15% to 19% supported by a smart growth in manufacturing and
services sectors. This brings prosperity to a country and more and more
people go for investment in Share market. Outlook for the year 2010 is
positive. While the overall demand outlook for the year 2011remains good,
the Company expects the pressure on quality customers to continue due to
competition.
(e) Segment wise performance
The business of the Company falls under a single segment i.e. Trading &
Financing for the purpose of Accounting Standard AS-17.
(f) Outlook
The continual growth in the Finance sector is expected to give the
necessary support to the Finance 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 technologically advanced and more
profitable products/market segments and working aggressively in the areas
of productivity, efficiency and cost reductions.
(g) Risk and concerns
The menace of local Finances and play of angadia has further compounded the
problems of the organized Finance Industry as they use inferior way of
transferring funds. The Stock market is also a risky place to put ones
fund. The pull back of FIls will also have an adverse effect on the
share market.
(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.
BY ORDER OF THE BOARD OF DIRECTORS
DYNACHEM PHARMACEUTICALS (EXPORTS) LIMITED,
PLACE: AHMEDABAD
DATE : 01-09-2011 SPANISH V SHAH
(CHAIRMAN)