prestige foods ltd Management discussions

PRESTIGE FOODS LIMITED ANNUAL REPORT 2009-2010 MANAGEMENT DISCUSSION AND ANALYSIS AN OVERVIEW OF BUSINESS ENVIROMENT: During 2009-10, the world production of soybeans was historically highest at 250 MMT. The prices of commodities headed at the southward direction and the demand for the commodities overseas witnessed a very steep fall. High fluctuations were witnessed in the soya Industry. The industry witnessed low performance of the Soya units. The plant working on job work basis with PEC Limited (A Govt, of India Enterprises) and Prestige Feed Mills Limited, Margins and capacity utilization of plants remained low, As Soya bean Crop marketing during 2009-10 was about 60 Lacs MT, as compared to that in the previous year.(85 Lacs MT) OPERATONAL REVIEW: The company undertook job processing during the year so as to have a sustainable source of revenue, sustained hard due to lack of working capital facilities. The company has maximizing its revenue and operating profits under depressed conditions. SOYA DIVISION: During the year, The Company has processed 63625 MT of Soybean seed, on Job work against (104666 MT) during previous year. Due to lack of workable parity. The Company has Processed Vegetable Oil 123 MT (Previous year 674 MT). The gross income amounted to Rs.4021.75 Lacs for the year(Previous year Rs. 4208.42 lacs). During 2009-2010 season (Oct.,2009-March, 2010) soybean prices were volatile and remained around of Rs. 19500-24300 PMT factory delivery (previous year Rs. 16500-25500 PMT). As compared to this, the Soya Meal prices were around Rs. 17000-21000 PMT F.O.R. (Previous year Rs. 10500- 21200 PMT). The domestic Soya raw oil prices were in the range of Rs.37500 - 45000 MT ex-factory (Previous year Rs. 43600-71200 PMT). FUTURE OUTLOOK: Various measures are taken by the government to inject necessary help to the ailing industrial sector in the wake of the world wide economic crisis and to support the farmers and agro based industry in light of the scanty monsoon in the crop growing areas INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY: The Company has a reasonable and adequate system of internal control to safeguard and protect from loss, unauthorized use or disposition of its assets. All the transactions are properly authorized, recorded and reported to the management. The company is following all the Accounting Standards for properly maintaining the books of accounts and reporting Financial Statements. HUMAN RESOURSES DEVELOPMENT/INDUSTRIAL RELATIONS: The Company has drawn specific program to harness and improve the knowledge, skill and efficiency of each and every employee for the development of their career prospects. Senior Management is actively involved in boosting the morale of employees through continuous dialogue in structured communication meetings. The Industrial relations remained cordial, throughout the year under reference, at all the manufacturing plants and administrative offices of the company.