Bacil Pharma Ltd Management Discussions.

MANAGEMENT DISCUSSION AND ANALYSIS

Industry structure and developments

The Company has not started any activities at its factory premises at MIDC, Lote (Maharashtra) due to financial constrain and non-availability of the funds. During the year under review the Company has not done any export of agro commodities and the company is in the process of exploring new opportunities in the trading business including export. The report contains certain forward-looking statements, which are based on certain assumptions and expectations of future events.

Opportunities and threats

There is growing demand for agro commodities in India and abroad specifically due to opening of the Indian Economy to world competition. Agro products and commodities are on demand both in the local and export market. As far as threats are concerned no significant threats except the general market conditions and stringent norms for export of agro products are perceived in the near future.

Outlook

The outlook for agro products and commodities in general is good for the years to come. The Company is taking necessary measures to arrange the required finance for the project implementation and working capital requirements for its plant at MIDC, Lote (Maharashtra) or will have to evaluate other avenues or to lease or dispose off the existing manufacturing facilities and diversify in to other areas. In absence of permission which is pending with Maharashtra Pollution Control Board no commercial activities can be undertaken at the plant. Similarly the plant and machinery has become obsolete and un-repairable. As such disposal of the unit will be a best option available.

Internal control systems

The company has a proper and adequate security system barring natural calamities to ensure that all assets are safeguarded and protected against any possible loss from un-authorised use or disposition. The internal systems and other records are reliable, for preparing financial statements and other information, and for maintaining accountability of assets. Proper security arrangements are being made for safety of all assets, even though the insurance cover for plant and machinery is not obtained.

Financial and operational performance

During the year under review, the Company was unable to procure any Export Order and has not carried out any manufacturing activities from facilities available with the company. The company has carried out only trading activities.

Cautionary Statement

The delay in project implementation has caused increase in project preoperative expenses. Statements in this Management Discussion and Analysis Report are based upon the data available with the company at this point of time and on certain assumptions having regard to the economic conditions, government policies, and political developments within and outside the country. The management is not in a position to guarantee the accuracy of the assumptions and the projected performance of the company in future. It is, therefore, cautioned that the actual results may differ from those expressed or implied herein. Delay in project implementation and commercial production has already caused depletion of the existing plant & machinery, due to plant being in chemical zone and the same will have a barring in the near future for extensive repairs & maintenance.

In spite of steps taken to start the project, the Company still has not got the obtained permission from MPCB and consent to operate. Due to inability to get to permission from Maharashtra Pollution Control Board and consent to operate the Management is unable to give any positive statement. Non receipt of permission and substantial deplation and wear and tear of the Building and Plant & Machinery, the Management has no choice but to sale/dispose of the undertaking i.e. Building and Plant & Machinery and other equipments situated at D-11/1/2, MIDC, Lote Parshuram Industrial Area, Taluka Khed, Dist. Ratnagiri - 415 722 along with adjourning Plot No. D-11/1/1 on as and where is basis.