mk Aromatics Ltd Management Discussions

MK AROMATICS LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSIS A. Industry Structure and Developments: Your company is in the business of manufacturing aromatic chemicals, Hydrocarbon Derivatives and perfumes. Your company is a small-scale industry operating in the chemical industry. B. Performance: Your company reported a total income of Rs.130.51 lakhs as against Rs.54.31 lakhs achieved during the previous year. Your company had incurred a net loss of Rs. 73.35 lakhs as against a net loss of Rs.92.92 lakhs incurred during the previous year. C. Segment Wise Performance: Your company operates in a single segment, i.e. Aromatic Chemicals, Hydrocarbon Derivatives, perfumes and as such segmental reporting is deemed not applicable. However, the income from sale of agricultural produce amounted to Rs. 6.16 lakhs during the year (previous year Rs. 12.41 lakhs). D. Concerns: The pickup in industrial demand for the companys products still remains a concern. The Company is looking to tie up with strategic business partners to venture into allied activities which are yet to materialize. E. Outlook: Your company is focusing on the export markets and Hydrocarbon Derivatives for increasing the Turnover and profitability. The Company is also looking at opportunities to grow aromatic/herbal plants and also in area of biotechnology. The company is trying to tie up with strategic partners to venture into allied activities. F. Internal Control Systems: Your company had a proper and adequate system of internal controls to ensure that all assets are safeguard and protected against loss from unauthorized use or disposition. G. Human Resources and Industrial Relations: Your company is operating with skeletal human resources. However there is adequate manpower to cater to its business requirements. The relationship with the employees of the company remained satisfactory.