Rose Zinc Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

Company operates in the field of zinc, brass and zinc sulphate and its manufacturing unit was located at Udaipur. Due to increase in overall cost of production and coupled with labour unrest, company could not generate sufficient funds to run manufacturing and other business activities, hence company has discontinued all business activities and dismantled major portion of Plant and Machineries.

OPPORTUNITIES, THREATS AND OUTLOOK

Fuel and Sulphuric Acid prices continuous to be a big area of concern as these are widely used in the manufacturing, which have direct impact on total cost. Apart from this, due to decrease in total sales volume, steep fall in the sales prices, adverse foreign exchange fluctuation, revision in the wages coupled with substantially high price of imported raw material and also changes taken place regarding import rules of raw material company could not generate sufficient funds to run manufacturing activities, hence company¹ s management has closed its unit and settled matter with Labours and their union peacefully.

PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Company has not carried-out any operational activities during the year.

INTERNAL CONTROL SYSTEM AND ADEQUACY

The company has an adequate system of internal control system commensurate with its size and the nature of its business. Sound financial and commercial practices continued to be an integral part of the Company.