futuristic offshore services and chemical ltd share price Management discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

1. Business of the Company

The business of the company is manufacturing and marketing of specialized chemical Maleic Anhydride, and downstream products such as Fumaric Acid, Tetra Hydrophthalic Anhydride, Tetrahydro phthalimide, (THPA/THPI).

Maleic Anhydride is a versatile monomer and chemical intermediate with many uses. The largest end use, accounting for almost half of total consumption, is unsaturated polyester resins. Other uses include Lube oil Additives, Alkyd resins, Fumaric and Maleic acids, copolymers and agricultural chemicals.

Strong R&D base and foresight in the introduction of newer technologies sustain and to meet their global vision in the years ahead. The group is committed to the manufacturing of quality products using internationally accepted norms.

The markets for products of the Company are well established with a good distribution network for domestic as well as export market.

The management expects to overcome difficulties faced by the Company shortly. The Company is looking at different options to resume operation of factory.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

Main segments

Products	Applications
MALEIC ANHYDRIDE	For Manufacture of Polyester Resins, Alkyd resins, Agrochemical eg. Malathion(Insecticide),
	Maleic Hydrazide (Herbicide/Growth Inhibitor), Fumaric Acid, Dye Intermediates,
	Pharmaceuticals, Surface Coatings Agents, Plasticisers and Speciality Lubricant Additives.
	It is also used as copolymer in wide range of chemical synthesis.
FUMARIC ACID	Food and Beverage Industries as Acidulant and Flavoring Agent, For upgrading Natural
	Drying of Oils; To improve Drying Characteristics in Food; Substitute For Tartaric Acid;
	For manufacture of Plasticizers; Rosin Esters and Adducts, Alkyd Resin Coatings
	In Organic synthesis as well as in Printing Inks Modifier for Polyester Resins, Alkyd Resins
	as well as Phenolic Resins;
TETRA HYDROPHTHALIC	For Curing Epoxy Resins, To manufacture of Unsaturated Polyesters it impart Air Drying
ANHYDRIDE	Properties, Intermediate to manufacture other organic compounds.
TETRA HYDROPHTHLIMIDE	To manufacture Fungicide - Captan.

OPPORTUNITIES AND THREATS

Some developments are taking place developing other uses for Maleic Anhydride. It is used as a starting material for synthesis of 1, 4-Butanediol, THF, Speciality dispersants, Succinates in, a biodegradable Chelating Agent, and Polyaspartic Acid, a Biodegradable Dispersing Agent. Total worldwide consumption is expected to grow at a rate of approximately 5% annually despite recession in most of the economies.

The Company will strive to catch the opportunities as it has inherent key strength areas such as:

State-of-the-Art Manufacturing facilities. Fully computer monitored plant, with technical know-how from Scientific Design Co. Inc., U.S.A. The plant is specifically designed to ensure strict quality standards of the end product range.

Largest plant in India to produce Maleic Anhydride from basic raw materials.

Convenient location of the plant of the Company at Tarapur, Maharashtra.

The company is awarded ISO 9002.

Review of operations

There were no manufacturing operations during the year under review or in the previous year.

Risks and concerns

The pricing uncertainties of the raw material of the Company for its Chemical Division would continue to affect the profitability of the Company.

Financial performance with respect to operational performance

There were no Manufacturing operations during the year under review.

The operations for the year under review have resulted in loss of Rs. (134.88) Lacs as against loss of Rs. (8.17) Lacs in previous year.

The Companys Ordinary share capital stands at Rs. 1731.58 Lacs and there are no outstanding instruments which are convertible into equity at a later date.

Internal Control System

No internal audit carried out during the year. The Company has formed Audit Committee which is constituted by Four Directors. All the significant audit observations and flow up actions would be reported to the Audit committee.

FINANCIAL CONDITION Share Capital

Issued subscribed and paid up capital as at 31st March, 2017 was Rs. 1731.58 Lacs. (Rs. 1731.58 Lacs in the previous year.)

Reserves and Surplus

In view of uncertainty of availment of tax benefit on accumulated business losses and unabsorbed depreciations, Company has not recognized deferred tax liabilities/assets. As at March 31, 2017 Reserves and Surplus amounted to Rs (3776.36) Lacs. (Rs (3641.49) Lacs in the previous year).

Loan Secured

The Loan funds stood at Rs NIL as at March 31, 2017 (NIL in the previous year.) Deferred tax Assets/ Liability provision outstanding as at March 31, 2017. (NIL in the previous year.)

Fixed Assets

Net Fixed Assets including capital work in progress as at March 31, 2017 are Rs 1635.53 Lacs. (Rs 1635.53 Lacs. as at March 31, 2016)

Investment

Total amount of Investment as at March 31, 2017 are Rs.0.36 Lacs (Rs.0.36 Lacs as at March 31,2016)

Net-Current Assets

Net Current Assets stood at Rs.(3718.96) Lacs as at March 31, 2017 and Rs.( 3581.88) Lacs. as at March 31, 2016.

HUMAN RESOURCES / INDUSTRIAL RELATIONS

The Company has no employees at present.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objective, expectations or predictions may be forwarded looking within the meaning of applicable securities, laws and regulations. Actual results may differ materially from those expressed in the statement.

Important factors that could influence the companys operations include global and domestic supply and demand conditions affecting selling prices of finished goods, input availability and prices, changes in government regulations, tax laws, economic developments within the Country and other factors such as litigation and industrial relations.