beckons industries ltd Management discussions

(MD&A)

Industry Structure and Developments.

During the financial year under review, the company has not taken any business activity except sale of its unutilized Assets & Stocks. However management is trying to takeover of some viable and sustainable business through merger/ demerger route. The commercialization of Algae technology developed by the company will be a great business opportunity for the company for the times to come.

Opportunities and threats

The company although could be successful in Research and Development work on Algae Project yet being the same at a pre commercialization stage. The initiatives taken by the company by entering into the Renewable energy segment could not lead to the production of an alternate of the coal (Biomass), fossil fuel (Bio diesel & Jet Fuel), and its application in food and pharmaceuticals industries (Health supplement) and also generate income from Carbon Credits.

The company did focus and made investment in the research and development of Algae Project but due to its long gestation period, the project may take much longer period to reach at the commercial phase and also require further investment for continuation of its Research, Demonstration and Validation activities which will impact the finances and profitability of the company. Moreover, the successful development of technology is the key factor for success.

The company did successfully demonstrate its technology for manufacturing of Algae Oil but could not find any joint venture partner or investor; the company could not commercialize the same. Therefore, management was left with no positive hope of immediate returns from this segment. There are several other factors which are beyond the control and means of the company and thus there is likelihood that the company may take some more time. The investment made by the company in the over seas business in UAE has been totally eroded and due to recession in the market, there appears to be remote possibility of its revival.

Initiatives taken by the Company

The company could reach at the pre commercial stage for its already developed algae technology and it is expected that with the collaboration of financial partner or bank funding support, the project in hand could take off with little although late but in near future. Once the basic bottlenecks are removed.

The Company is also exploring various opportunities and alternatives for business arrangement with other companies for growth of the Company including by way of mergers and takeovers.

Financial Performance/outlook

During the financial year under review, the company has not taken any business activity except sale of its unutilized Assets & Stocks. The operations of the company’s subsidiary in UAE had to be closed in view of the operational losses over there. The existing printing and stationary business being traditional could not even generate the revenue for meeting its operation/running costs.

Internal Control Systems and their adequacy

There is a Internal control system and also a Audit Committee which have been formed and implemented with clearly laid down powers and responsibilities that are entrusted to the members to ensure that the Internal Audit Department works independently. This department maintains various manuals which contain various controls and checklists that are to be carried out before execution of any activity. Internal checks are exercised so that various procedures laid down at the time of delegation of authorities and other procedures are strictly followed. The delegation clearly indicates the powers along with the monetary limits, wherever necessary, that can be exercised by various levels of the Managers in the Company.

Similarly, the Company has well defined manuals for all the functional areas, viz., Production, Sales, Administration, Personnel, etc. These manuals contain elaborate procedures and checklist for the related activities. Necessary controls and checks are exercised by strictly adhering to the various procedures and checklist prescribed in the Manuals. Also these are updated from time to time on ongoing basis, keeping in view the latest developments in different areas. Proper controls and checks are exercised by the company by following the procedures prescribed in the various manuals.

Material Developments in Human Resources/ industrial relations front, including number of people employed.

During the year the company has developed various HRD plans within various departments to achieve higher productivity and Excellence Rank between various employee groups. Steps taken during the year had created a sense of belonging in the employees.

Cautionary Statement

The Management Discussion and Analysis statement of the Annual Report has been included in adherence of the spirit enunciated in the code of Corporate Governance approved by the Securities and Exchange Board of India. Statement in the Management Discussion and Analysis describing the Company’s objectives, projects, estimates, and expectations may be‘forward–looking statements’ within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference of the Company’s operation include economic conditions affecting demand.