Best & Crompton Engineering Ltd Management Discussions

Industry Structure and Development

The Company with a view to capitalize on the growing demand for Pumps and Castings has, by a judicious product mix of various types of pumps and new types of castings, is expecting to achieve better results in terms of productivity and profitability.

Out of the other ventures, Best & Crompton Apparels Limited, had commenced commercial production but could not continue production schedules due to financial crunch faced by the company and B & C Machinery Limited, is on the verge of project completion. Once the project is completed and commercial production commences, this venture is expected to break even in the next two years.

The new ventures are facing demands for recovery of loans from their bankers, which has a bearing on your Company. Your Company is addressing this issue and is in the process of submitting concrete revival and restructuring plans to the Bankers of the new ventures and it is hopeful of these proposals being acceptable to the Bankers of the new ventures and thus making the new ventures viable.

Opportunities and Threats

The Companys plans for improvement of the production facilities involves fund based support from the Bankers. The effect of the Bankers demands on the new ventures also has a bearing on the Companys plans.

Any change in Government Policies and Regulations coupled with a volatile Market and soaring prices of raw materials could result in a delay in the completion of the projects, which in turn, would affect the projections as envisaged by the Company.

Internal Control Systems

The Company has been maintaining adequate internal control systems, which are commensurate with the size of the operations being carried out by the Company and are adequate.

Financial Performance

This is covered in the Directors Report.

Human Resources

The Company is in the process of finalizing and putting in place its HR Policy to motivate the employees and retain them. The objective is to ensure job satisfaction and a clear career growth at all levels. The Company strives to recruit the best talent in their respective disciplines to utilize their experience and expertise for the benefit and growth of the organization.