print house india pvt ltd Management discussions

MACHHAR POLYMER PRIVATE LIMITED ANNUAL REPORT 2005-2006 MANAGEMENT DISCUSSION AND ANALYSIS PERFORMANCE: During the year under review your companys sales were reduced to Rs.870.36 lacs (previous year Rs. 1126.50 lacs) resulting in decrease in sales by 22.74% over the previous year. Decrease in sales turnover of the company was due to a one major customer i.e. Videocon Group was suddenly shifted into corrugated packing. This has affected the overall profitability. The management is confident towards a steady growth in near future to cover the fall in sales by putting their best efforts to achieve the maximum profitability. This is an on going process with full focus on all cover to control the cost elements/ centers. TERM LOAN: During the year your company has repaid entire term loan amount to State Bank of India also repaid regularly loan installment to Standard Chartered Bank. During the year your company raised a term loan of Rs. 90 lacs from State Bank of India (IFB Branch) Aurangabad and availed Rs. 42 lacs. The said term loan has been utilized for implementation of expansion program by acquisition of Plant & Machinery, Mould and construction of building. WORKING CAPITAL LIMITS: During the year State Bank of India has increased Working Capital Limits from Rs. 60 lacs to Rs. 100 lacs. EXPANSION PROJECT: Your company is installing 3 new Molding Machines (Big Size) with hydraulic PLC control along with required equipments, 1 new Block producing line with required equipments, 1 new Batch performer machine with PLC operating system, 1 new crushing machine with required equipment, R.O. water softener plant, Mould and Dies for 3 new molding machine, 1 new Premium Efficiency screw Air compressor and boiler having 4 Ton per hour Steam generation capacity. Total capital investment will be Rs.145 Lacs. These machines are being installed at, existing factory at Gut No.38, Juni Jithardi, Village Karjan, Tq. Karjan Dist. Baroda. These machines shall be producing quality products with lower cost of production. The expansion project will be completed by the end of December 2006. INDUSTRIAL RELATIONS: Relations with staff and workmen were peaceful during the year. INSURANCE All the properties of the Company including plant and machinery and stores, wherever necessary, and to the extent required, have been adequately insured.