Sarang Chemicals Ltd Management Discussions

SARANG CHEMICALS LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSIS Financial Performance-Operational Performance During the year company has not carried out any business activities. Company has incurred loss of Rs. 15.63 Lacs during the year. However in the current year company is planning to diversify its business activities and to venture into business of trading of various items and business of mining activities. Risk and Concern There are no risks and concerns other than the fluctuation in the global economy. Material Development in Human Resource The Company will be investing appropriately with focus on customer centricity, human resources will be focused on optimum employment engagement and the talent will be strengthened vis-a-vis the performance. Internal Control Systems The Company has in place adequate internal control systems and procedures covering all the financial and operating functions. These have been designed to provided adequate assurance to the management regarding compliance with the accounting standards by maintenance of appropriate accounting records, monitoring the economy and efficiency of operations, protecting the assets of the Company form losses and ensuring the reliability of financial and operational information though proper compliance with the statutory enactments and its rules and regulations. Some of the significant features of the internal control systems and procedures are as follows: * Appropriate delegation of authority limits with responsibility incurring capital and revenue expenditures. * Approval and monitoring of annual revenue budget for all operating and service functions. * Procedure for approval of capital budget proposals and monitoring the expenditure on such acquisitions. * Formulating and reviewing the annual and long-term business plans. * A comprehensive code of conduct for ensuing the integrity of financial reporting, ethical conduct, regulatory compliances and conflict of interest, if any. * Review of the operations and financial plans in key business areas through monthly management meetings. * Appointment of and independent experienced accountant for conducting internal audit for reporting to the management and the Audit committee, the adequacy and compliance with the internal controls and efficiency and effectiveness of operations. The Audit Committee of the Board of Directors which is reviews the finding of the internal audit, adequacy of internal controls, compliance with the accounting standards, as well as recommends to the Board the adoptions of the quarterly and annual results of the company and appointment of auditors. The Audit Committee also reviews the related party transactions, entered into by the company during each quarter. Environmental Issues As the company is not in the field of manufacture, the matter relating to produce any harmful gases and the liquid effluents are not applicable. Cautionary Statement Statement in this report on Management Discussion and Analysis may be forward looking statements within the meaning of applicable security laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could however, differ materially, from those expressed or implied. Important factors that could make a difference to the companys operations include global and domestic conditions. And changes in government regulation and tax structure, economic development within India and the countries with which the company has business contacts and other factors such as litigation and industrial relations. The Company assumes no responsibility in respect of forward-looking statements, which may be amended or modified in future on the basis of subsequent developments, information or events.