Asian Petroproducts & Exports Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

Asian Petroproducts and Exports Limited was incorporated in the year 1991. In the year 1994, the Company got list its shares on BSE Limited.

Your Company has started with the manufacturing of chemicals based on Ethylene Oxide and pioneers in manufacturing Ethoxylate in India. These were widely used in Refineries, Fertilizers, Textile, Dye, Pharmaceuticals and Detergent Industries.

With the changing market environment, the Comany diversified into production of various other Chemicals solutions and polymers and plastic products. The major production breaks through years were from 2002 to 2006. Trading Department has been active in Import & Export of various important Chemicals, their allied products and plastic products for past many years.

With the passage of time, the company has started its trading business of plastic products and chemicals from its plant. Our plant is located at Village Anjesar, Tal.: Savli, Dist. Vadodara, which is 25 kms away from Baroda. The Company has Infrastructure established for capacity expansion from 4000 MT to 10,000 MT.

OPPORTUNITIES AND THREATS

As India is slowly but steadily moving towards development under the present. The growth of the Company is subject to Opportunities and Threats as are applicable to the industry from time to time. Further, the Company endeavors to evaluate opportunities considering the macro economic conditions both globally and domestically.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company operates in the manufacturing business segments. During the Financial Year under review, the company has profit amounting to Rs 10.99 Lakhs in aggregate. Barring unforeseen circumstances, the Company expects to increase its volume of business in the current year.

RISK AND CONCERN

It must be clearly understood that each industry in particular and each industry segment in general has its own risk, from which it cannot be fully isolated but mitigated by means of proper risk management. Your Company foresees certain areas of risk, concerns and threats in its arena of operations.

Unless the Government takes strong measures to boost the industrial activity and stimulate the industries by reducing the interest rates and making funds available, it will be difficult in India to achieve the targets.

INTERNAL CONTROL AND ADEQUACY

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The Audit Committee periodically reviews the efficacy of Internal Financial Control Systems and risk mitigation process. Your Board believes that appropriate procedures, controls and monitoring assessment procedures are in place and considered adequate. The Company has an adequate system of internal control implemented by the management towards achieving efficiency in operations, optimum utilization of resources and effective monitoring thereof.

The adequacy of the internal control system is reviewed by the Audit Committee of the Board of Directors. The efficacy of the internal checks and control systems are verified by the Statutory Auditors. The Audit Committee reviews the internal audit plan, adequacy and effectiveness of the internal control system, significant audit observations and monitors the sustainability of remedial measures. Your Board believes that appropriate procedures, controls and monitoring assessment procedures are in place and considered adequate.

FINANCIAL PERFORMANCE

During the year under consideration your Companys Net Profit after tax and after other comprehensive income is Rs. 10.99 lakh. Further the company is debt free during the period under review.

DETAILS OF SIGNIFICANT CHANGES IN THE KEY FINANCIAL RATIOS & RETURN ON NET WORTH :

Pursuant to amendment made in Schedule V to the Listing Regulations, details of significant changes ( i.e. changes of 25% or more as compared to the immediately previous financial year ) in Key Financial Ratios and any changes in Return on Net Worth of the Company ( on standalone basis ) including explanations therefore are given below :

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the companys objectives, estimates, expectations may be "forward-looking statements" within the meaning of applicable security laws and regulations. Actual results could differ materially from those expressed or implied due to several factors which are beyond the control of the management.

In accordance with the Code of Corporate Governance approved by the Securities and Exchange Board of India, shareholders and readers are cautioned that in the case of data and information external to the company, no representation is made on its accuracy and comprehensiveness though the same are based on sources believed to be reliable. Utmost care has been taken to ensure that the opinions expressed by the management herein contain its perceptions on the material impacts on the companys operations but it is not exhaustive.