rock hard petro chemical industries ltd Management discussions

ROCK HARD PETROCHEMICAL INDUSTRIES LIMITED ANNUAL REPORT 2008-2009 MANAGEMENT DISCUSSION AND ANALYSIS Statements in this Report, particularly those which relate to the Companys objectives, projections, estimates and expectations may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied. (A) Industry structure and developments In view of the fact that the company has already sold its material and major plant and machineries, there can not be any manufacturing activity of formaldehyde and hexamine in the company. Considering the fact that some of the machineries are under the attachment of the sales tax department of the state, the management of the company is not belong to any specific industry. (B) Opportunities and Threats, Risks and concerns As is known that the company has already sold out die formaldehyde plant except a few of the machineries which are under the attachment of the sales tax department of the state, the management of the company is not in a position to explore any other business possibilities. Therefore, till the clearance of this attachment mater which is presently sub- judice and about which the management is very much hopeful of getting an order in favour of the company, the process of realization out of the sale proceeds of the remaining assets of the company is not possible and till then neither new funding is possible nor any other business activity is possible, hence though it is just a matter of time that the company once again comes into hard core business activity, till men there is no business opportunity for the company and therefore, no outlook can be projected for the company. (C) Segment-wise or product-wise performance In view of the aforesaid, the present business in the company dose not belongs to any product or segment, hence, no comments are offered here. (D) Risk & concents As explained hereinabove, at present there is no business risk in the company, however, it is also to be noted that due to various factors, which have already been discussed by your management in its previous reports and which have always been beyond the control of the management of the company The company neither has any productive assets nor it has any financial strength to carve out any definite future course of action of the company including pursuing of other objects in the company. Sales tax Department had raised amount of Rs. 1,70,0007- which has been challenged by the company and a write petition have been filed before Honble Indore High court. Allahabad Bank has filed a suit before the DRT Jabalpur for a sum of Rs. 88 lacs plus interest. However company has filed its written statement and has danied its liability. (E) Internal controls and their adequacy In view of the aforesaid, neither there is any need for existence of any internal control system and procedure in the company nor any comments be offered by the management here. (F) Financial performance vis~ avis operational performance As discussed here- in-above, in due to continuity of various beyond the management contror factors having adverse impact on the operations of the company. There have been no operations in the company. FOR AND ON BEHALF OFTHE BOARD OF DIRECTORS KHIMJI PATADIA Chairman & Managing Director Place: Indore Dated: 3rd September, 2009