Today's Top Gainer
Note:Top Gainer - Nifty 50 More
1. Industry Outlook
Plastics have played a vital role in transforming the quality of life, and will progressively continue to do so over the years. The per- capita consumption of plastics in India is at around 11 to 12 kgs, as against 30 to 35 kgs in developed countries.
Normally, the tendency is to judge a product or item in terms of its waste disposal problem. The scientific approach is to make a comparative study of products or applications, based on measurements of energy input and the pollution discharged to land, water and air at every stage, from the time that basic raw materials are extracted from the earth to the time a product is produced, transported, used and disposed; this is called a Life Cycle Analysis (LCA). - or more simply the "cradle to grave approach".
LCA studies conducted the world over (including the Centre for Polymer Science and Engineering, the Indian Institute of Technology, Delhi) have shown beyond any reasonable doubt, that plastics are the most eco-friendly materials; they have a pivotal role in reducing green house gas emissions.
Global automobile, foods processing packing and health care companies have established large manufacturing bases in India. Industry is expected to grow at the rate of 12% per annum in time to come.
Environmental concern for use of plastic and collection of waste material for recycling and reuse is a major concern for the Industry.
2. Opportunities and Threats:
There are good opportunities in the specialty application film business - mostly industrial applications, with relatively high technology content and which are generally import substitutes. The risk of backward integration is less in these applications.
Plastics packaging adds value to agricultural produce by increasing its shelf- life and fortifying its nutritive value. The film performance for each item has to be tailored to meet specific requirements and is technology related.
Over the last three years, the industry has encountered volatility and uncertainty on price movements of Poly Ethylene, exchange rate volatility. Major policy decisions of the Government like Demonetisation, Protectionist movements in world.
3. Risks and Concern.
While risk is an inherent aspect of any business, the Company is conscious of the need to have an effective monitoring mechanism and has put in place appropriate measures for its mitigation including business portfolio risk, financial risk, legal risk and internal process risk.
4. Internal Financial Control Systems:
The Companys internal financial control systems are commensurate with the nature of its business and the size and complexities of its operations. These systems are designed to ensure that all assets of the Company are safeguarded and protected against any loss and that all transactions are properly authorized, recorded and reported.
5. Human Resources
It is your Companys belief that people are at the heart of corporate purpose and constitute the primary source of sustainable competitive advantage. Your Companys belief in trust, transparency and teamwork improved employee productivity at all levels
During the year the Company has not entered into any transaction of material nature with its promoters, the directors or the management, their subsidiaries or relatives etc that may have potential conflict with the interest of the Company at large.
All details of transaction covered under related party transaction are given in the notes to account.
7. Cautionary Statement :
Certain statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, outlook, expectations, estimates and others may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, projections and so on whether express or implied. Several factors could make significant difference to the Companys operations. These include climatic conditions and economic conditions affecting demand and supply, government regulations and taxation, natural calamities and so on over which the Company does not have any direct control.