solid containers ltd Management discussions

The operations of your Company have been suspended since September 1998 and there have been no further development regarding commencement of its operations. Therefore, your Directors are not able to comment anything substantive through this report.

1. OVERALL ECONOMY

Indian economy, which was growing at close to 7% until the previous year started to slow down during the year and was further impacted by the Corona virus outbreak towards the end of the year. Resultantly, the Indian economy is estimated to have registered a growth of only about 4.5%, which is Indias lowest growth rate in last several years.

The Government of India and the Reserve Bank of India have announced several measures to help the agriculture and MSME segments in particular.

We are greatly encouraged by the Hon. Prime Ministers call of ATMA NIRBHAR BHARAT and do hope that some sector specific measures will be announced by the Government of India to boost demand and to provide required relief to the industries which are facing twin threats of lower demand and increased imports.

2. OUTLOOK

International prices of pulp and consequently paper came down sharply during the year. This resulted in huge increase in import of finished papers particularly from countries covered by FTA agreements which permit duty free imports. Consequently, price realization for the Indian paper industry both in domestic as well as export markets also remained depressed.

The world-wide crisis created by the COVID-19 pandemic dealt a further blow to the Industry in the last quarter of the year.

The Paper industry has submitted several representations to the relevant authorities seeking specific measures against duty free imports. We do hope that these will receive the Governments serious consideration.

3. RISKS AND CONCERNS, SEGMENT WISE OR PRODUCT - WISE PERFORMANCE AND DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Operations of the Company have been suspended since September 1998 and hence information on risks and concerns, discussion on financial performance with respect to operational performance and segment wise or product wise performance is not provided.

4. RISKS, OPPORTUNITIES AND THREATS

Solid Containers Ltd. aims to address risks, opportunities and threats posed by the business environment by developing appropriate risk mitigation measures. Our responses to these elements are discussed in the following section.

5. TECHNOLOGY RISKS

We are in technological businesses whether it is manufacturing of paper & paper related products, where a key challenge is to ensure that the manufacturing facilities are equipped with technologies that can produce value added products, which are competitive in the market.

6. FOREX RISKS

Volatility in currency markets can adversely affect the outcome of commercial transactions and cause uncertainties which will be protected with the margins against rapid and significant foreign exchange movements.

7. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has proper and adequate system of internal control to ensure that all the assets are safeguarded from loss, damage or disposition. The Company has independent Audit system to monitor the entire operations and the Audit Committee monitors the financial statements to ensure that transactions are adequately authorized and recorded, and that they are reported correctly. The Board of Directors considers internal controls as adequate as it regularly reviews the findings and recommendations of internal audit.

8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT INCLUDING NUMBER OF PEOPLE EMPLOYED:

Presently there are only 2 employees and the operations of the Company have been suspended. Hence, there was no material development in Human Resources/ Industrial Relations during the year.

9. RETURN ON NET WORTH:

Return on Net worth during the previous and current financial year is negative due to losses.

10. CAUTIONARY STATEMENT

Statement in this Management Discussion and Analysis describing the Company’s objectives, projections, estimates, expectations or predictions may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied due to risk and uncertainties. Important factors that could make a difference to the Company’s operations include raw material availability and prices, cyclical demand and pricing in the Company’s principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business and other incidental factors.

	For and on behalf of the Board of Directors
	For Solid Containers Limited
	Ashok Kumar Goel
Date: 13th August 2021	Director
Place: Mumbai	(DIN : 00025350)