Financial Review
The company has NIL turnover in the current year as well as in the previous year. Further, the company has incurred a net loss of Rs. (1040.82) Lakhs as against Rs. (1365.21) Lakhs.
Net Worth
The net worth of the company is Rs. (32977.93) Lakhs as against (31937.10) Lakhs in the previous year.
Operations
Companies operations remained suspended since 03rd March 2020 and could not be resumed due to a shortage of working capital and its inability to complete the installation and commissioning of machines at the Chakan plant, further, the company is now undergoing Corporate Insolvency Resolution Process ("CIRP").
Segment Review
The company operates in a single segment i.e. engineering and capital goods.
Product Development
Due to the shortage of working capital and its inability to complete the installation and commissioning of machines at the Chakan plant and later due to the Corporate Insolvency Resolution Process, there was no new product development during the year under review.
Business Strategy
Currently the company is undergoing Corporate Insolvency Resolution Process and it is under process to get approval of the Honble NCLT on the resolution plan received from the Resolution Applicant as approved by CoC members.
SWOT analysis
The companys strengths are its technology, brand, and product name in CNC machines, high-quality manufacturing infrastructure, high-quality manufacturing ability, and long presence in the industry. Its weaknesses are the severe financial problems it faces that are currently overwhelming all other aspects of its business. The opportunities exist in reviving the existing customer base, upgrading technology, and sourcing new business.
Risk and Concerns
As per the Order of Honble National Company Law Tribunal ("NCLT"), Mumbai Bench, the Company is under Corporate Insolvency Resolution Process with effect from 29th January 2021.
Human Resources and Industrial Relations
The total number of employees/workers as on 31st March 2024 is NIL. Due to the halt in manufacturing and overall business and operations of the company, the strength of the workmen and officers fell drastically in comparison to last year.
The Labour Union has filed various legal cases in different courts for different issues.
Information and Technology
Due to the introduction of GST, the Company uses the Tally ERP system for all its activities. The Company regularly upgrades the Tally infrastructure for optimum utilization while all maintenance activities are outsourced to local IT service providers.
Internal Controls
The Company has set up adequate internal controls to ensure operational efficiency, safety of assets, and efficient financial management. It has adequate internal controls commensurating with the stage and size of the organisation.
Cautionary statement
The Management Discussion and Analysis Report contained forward-looking statements describing the Companys projections and estimates. These are based on certain assumptions and expectations of future events. The Company cannot guarantee the realization of projections as the management may undergo a change post approval of the Resolution Plan by the Adjudicating authority, basis which the actual results may differ due to factors like the price of raw materials, demand-supply conditions, changes in government regulations, tax structures, strategy changes etc. which are beyond the control of Management. The Company assumes no responsibility in respect of forward-looking statements which may undergo change on the basis of any subsequent developments, information or events.
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