MILK SPECIALITIES LIMITED
ANNUAL REPORT 2011-2012
MANAGEMENT DISCUSSION AND ANALYSIS
During the year under review, the Company has achieved a turnover of
Rs.4773.55 lacs with a Net Loss of Rs. 6.19 lacs against the previous year
Sales Turnover of Rs. 5692.62 lacs and Net Profit ofRs. 69.54 lacs.
INDUSTRY STRUCTURE & DEVELOPMENTS
With the liberalization of the Indian economy in 1991, the Dairy sector too
was de-licensed which was earlier dominated by the Cooperative Sector.
Indian Dairy Industries is heading towards an accelerated & positive
momentum with accelerated growth in milk production by over two & half
times in the two decades. India has emerged as the largest producer of milk
in the world.
The Company is a manufacturer of varieties of Dairy Products such as Pure
Ghee, Milk Powder, Pasteurized Milk etc. and is marketing its products
under the brand name MILKTIME. The Company is committed to provide Pure,
Fresh & unadulterated Milk to the society at large.
OPPORTUNITIES & THREATS
The opportunities for the products of the Company are enormous because of
essential nature and application to varieties of uses. With the rising
health consciousness among the people, demand for the products of Company
will further increase. The expected rise in urban population and their
purchasing power would be a boom to Indian Dairy. At present only few
cities and towns are served by the organized milk sector in India. This
leaves the organized sector with huge untapped market. As your Company is
also operating in the liquid milk market, there exists a vast opportunity
for increasing the share in the liquid milk market.
There are large numbers of Milk Dairies operating in the unorganized Sector
producing Dairy products with adulterated and unhealthy Milk. Since these
products are cheap, they cause strain on the marketing and pricing policies
of the Company.
Considering the growth potential in the Liquid market, your Company has
drawn plans to increase its market share in the existing markets and to
enter into new markets by providing Fresh and unadulterated Milk.
RISK & CONCERN
The real risk and concern to the Company is the fluctuation in prices of
Raw Milk not directly related to the selling prices in the market. Dairy
Industry is dependent upon the assured supply of quality Raw Milk at
competitive & predictable prices. Fluctuation in Raw Milk prices and
deficiency in rain falls due to adverse climatic conditions present a
business risk. Milk is highly perishable commodity. There exists an
inherent risk due to delay in transport bottlenecks and breakdown of
SEGMENT WISE OR PRODUCT WISE PERFORMANCE
The Company deals with only one segment i.e. Milk and Milk products.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company ensures existence of adequate internal control and procedure at
various levels in the Company commensurate with the size of the Company and
the nature of its business for the purchases of Stores, Raw Materials
including components Plant & Machinery, Equipments and other Assets, and
for the sale of goods.
HUMAN RESOURCES DEVELOPMENT & INDUSTRIAL RELATION
The current strength of the manpower is 54 besides employing worker on
contract basis. Industrial relation at the plant during the year were
The report may contain certain Statements that the Company believes are, or
may be considered to be forward looking statements that describe our
objectives, plan or goals. All these forward looking Statements are subject
to certain risks and uncertainties, including but not limited to,
Government action, economic development, risks inherent in the Companys
growth strategy and other factors that could cause the actual results to
differ materially from those contemplated by the relevant forward looking
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