sti products india ltd share price Management discussions

STI PRODUCTS INDIA LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSIS PERFORMANCE DURING THE YEAR: The continuance of closure of manufacturing operations during the year has resulted in losses to the Company, as with no manufacturing operations. The accumulated losses of the Company as at 31st March, 2011 were marginally up at Rs. 2,857.56 Lacs (Previous year Rs.2,850.64 Lacs). FINANCIAL RESULTS: As the Company did not has any manufacturing operation during the year, the financial figures are not comparable with the previous year, a summary of which is as under: (Rs. in Lacs) Particulars 2010-11 2009-10 Authorized Share Capital 400.00 400.00 Other Income - 24.26 Total Expenditures 0.93 49.98 Gross Profit/(Loss) (0.93) (25.72) Provision for taxation Goodwill written off Net Profit/(Loss) (0.93) (25.72) Balance b/f from previous year (2,850.63) (2,824.91) Balance carried to Balance Sheet (2,851.56) (2,850.63) CLOSURE OF THE COMPANY: With a view to conserve resources from further depletion and to save administrative cost, the Company has given a closure notice with effect from 1st June, 2004 to the Labour Secretary, Department of Labour, Government of Karnataka, Bangalore. The dues of all the employees and workers of the Company have been settled and for more than 2 years there is no employee working in the Company. The Company also does not own any assets for its operations. REFERENCE TO THE BIFR: The members are aware that as the accumulated losses as on 31st March, 2004 had went up to Rs. 1099 Lacs, the net worth of Rs. 871 Lacs of the company got completely eroded in the year 2003-04 and the provisions of Section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985, (SICA) became applicable on the Company, Accordingly the Company had made a reference for registration to the Board for Industrial and Financial Reconstruction (BIFR). The Honble BIFR has in its hearing held on 12th July, 2006 dismissed the reference filed by the Company on the ground that the Company does not own any industrial unit. FUTURE OUTLOOK: As already informed to all the members earlier the company does not expect to commence any operations in the company as the Plant & Machinery and other fixed assets of the company have already been disposed off and therefore the prospects of the company appears to be critical. The management of the Company also does net expect any turn around in the Company in near future.