mahendra petrochemicals ltd share price Management discussions

MAHENDRA PETROCHEMICALS LIMITED ANNUAL REPORT 2003-2004 MANAGEMENT DISCUSSION AND ANALYSIS a) TEXTILE BUSINESS/INDUSTRY OUTLOOK Recently Abolition of Import Quota System under the Multi Fibre Agreement with effect from January 2005 and favorable government encouragement to the Industry by way of forming export friendly policies, whether it is 80% reduction in excise duty on Polyester Filament Yarn (PFY) to 16% or reduction in Import Duty on Textile Machinery from 20% to 10% or option to avail of exemption route or pay 8% excise duty with CENVAT credit etc. are few explicit favors from the government to the Industry, which will definitely provide Indian Exporters a strong foundation to meet international challenges and to compete with our main competitors China, Korea and Taiwan. b) HUMAN RESOURCE/INDUSTRIAL RELATIONS: Your Company has been successfully maintaining the cordial and peaceful relationship with the employees at all levels, which has been possible with the outstanding support of employees and outsiders both. Your Directors also wish to acknowledge the co-operation and assistance received from the valued customers, suppliers, Banks, Financial Institutions and various Governments, Semi-Government and other Authorities. c) INTERNAL CONTROL SYSTEMS; The Company has adequate internal Control System commensurate with the size of the Company and the nature of its business. d) MANUFACTURING EXCELLENCY; To compete in and face the Market Challenges our management is taking all the necessary steps to limit the cost and putting entire attention over the quality of product to meet the global standards. e) CAUTIONARY NOTE: Certain statements in the Management Discussion & Analysis section may be forward looking and are stated as required by the applicable laws & regulations. Many factors may affect the actual results, which could be different from what the directors envisage in term of future performance and outlook.