Dujodwala Paper Chemicals Ltd Management Discussions

DUJODWALA PAPER CHEMICALS LIMITED ANNUAL REPORT 2011-2012 MANAGEMENT DISCUSSION AND ANALYSIS Overview: The company is engaged in the manufacturing and selling of Rosin and Rosin Size, Synthetic Resins and other Terpene Chemicals and its products at its unit located at Atkargaon, Taluka Khalapur, Khopoli., Dist. Raigad, Maharashtra. Industrial Structure and Developments There was a huge volatility in the price of critical raw-materials alongwith a recessionary trend in the Western part of the World to save all slow down in the growth of economic programme. The same had a huge impact on the purchasing price of critical Raw Material which eventually effected the profitability. In order to mitigate the impact created by the volatility in the prices, the Company made a concerted effort for shifting to alternate technologies in manufacturing. Opportunities and Threats The Company caters to the units of Paints, Rubbers, Papers, Tyres etc. which is showing a good sign of growth. The same should also result in the Company growing as the demand for its product rises. The Company is aware of the threat and is gearing up for the same. Outlook: The Company is continuously implementing means to innovate, reduce cost, be environment friendly. The Company has a positive outlook towards the future with the industries being catered to showing good signs of growth. Risk & Concern: There is unhealthy competition from internal and external market forces, which could affect the profitability of the Company. Internal control systems and its Adequacy: The Company has put in place necessary internal control systems commensurate with its operations. Periodical checks are conducted and necessary remedial measures are adopted. Discussion on Financial Performance with respect to Operational Performance: During the year under review, the company has achieved sales of Rs.16188.55 Lacs as against Rs. 13601.04 Lacs during the previous year resulting an increase of 19.02%. Expansion Programme: The Company is pleased to announce that it is undergoing expansion in the state of Maharashtra which will improve its performance in the current year. Fixed Deposits: The Company has not accepted any Fixed Deposits during the year under review. Human resources/industrial relations & particulars of employees. The Industrial relations in the manufacturing unit of the Company continued to be cordial. During the year there was no employee whose particulars are required to be given under Subsection 2A of Section 217 of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975. Pollution and Environment Control. The Company has always paid highest importance to ensure that the environment remains relatively pollution free. The work force is continuously trained and coached in safety and are provided appropriate safety equipment. Adequate pollution control facilities are installed at the plant as per Guidelines of Pollution Control authority and are run as per set norms. CONCLUSION: The Directors wish to take this opportunity to thank all employees of the Company for the services rendered by them to the Company.