sanghi polyesters ltd Management discussions

SANGHI POLYESTERS LIMITED ANNUAL REPORT 2007 MANAGEMENT DISCUSSION AND ANALYSIS Operations: During the year under review, the company has achieved a sales turn over of Rs.24691.50 lacs with a production volume of 33,382 Metric Tons. The company has reported a net profit of Rs.74.08 lacs as against a net profit of Rs.10119.73 sacs of previous year. One Time Settlement (OTS) Scheme: The company has approached the Banks and Financial Institutions for compromise settlement of its loans during the previous year. It had already received the sanctions from most of the lenders for the OTS proposal submitted. The Company implemented the OTS package in the books of accounts during the previous year for the lenders who have sanctioned the proposal in that year and the same has been done during the period under review for the lenders who have given the sanction during this year. As a result, an amount of Rs. 4712.76 lacs has been credited to Profit and Loss A/c under the head Extra-ordinary Income. The Company had requested for extension of time for the payment of OTS for the lenders whose sanctions have got expired. The payment is made to all the lenders through refinance from the new lender in the next accounting year. Environmental & Pollution Control: Your Company on an ongoing basis is monitoring environment and pollution parameters at its plant at Sanghinagar. The Company has adopted several measures like smoke precipitators, effluent treatment plants, planting of trees etc., to keep the environment healthy; a matter of global concern now. The actual values of parameters achieved by the plant are substantially better than those specified by the pollution control authorities. Your Company is determined to maintain and improve these parameters in the years to come. Industrial Relations: The industrial relations continued to be cordial throughout the year. Your Directors wish to place on record their appreciation for the excellent team work with which the workers and officers of the company at ail levels have contributed individuality and collectively to the impressive performance of the Company.