Bombay Paints Ltd merged Management Discussions

BOMHAY PAINTS LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS OPERATIONS: The year under review witnessed a growth of 31.82% in Sales and 211.95% in Net Profit which stood at Rs. 412.10 Lacs (excluding interest waiver) as against Rs.132.11 lacs in the previous year. Your Companys focus on product mix to cater to industrial, marine and OEM segments has helped in maintaining the average-contribution at higher levels and considering the expanding potential of both agricultural and automotive sectors, the coming years would witness substantial growth in terms of sales. Prices of crude oil and commodities have been rising alarmingly which poses a cause of concern until some level of stability is reached. BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION (BIFR): As reported in the last Report of the Directors to the Shareholders, the Company continues to be sick under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985. The long pending matter of One Time Settlement with Central Bank of India was finally settled during the year resulting in a waiver of excess interest of Rs 212 Lacs, The Company is now preparing a fresh restructuring programme taking into account the current position, and subject to the approval of BIFR, hopes to return to a healthy stature, before the end of March 2009. Your Directors wish to place on record their special Thanks for the unstinted support given by Grauer & Well (India) Limited, in enabling the Company to repay its dues to Central Bank of India and set it on the path of progress. RESEARCH & DEVELOPMENT: The Research & Development Division has continued its efforts to develop new products, productivity improvement and cost reduction with focus on development of exports. The Company has obtained renewal of recognition of In-house R&D Unit from the Government of India, Ministry of Science & Technology, for the period 1st April 2007 to 31st March 2010. SAFETY ENVIRONMENTAL CONTROL AND PROTECTION: The Company has taken all the necessary steps for safety and environmental control and protection at its plant. Both the certifications, ISO 9001-2000 as well as ISO 14001-2004 awarded to your Company are valid. INSURANCE: All the insurable interests of your Company including inventories, buildings, plant and machinery and liabilities under legislative enactments are adequately insured.