Super Syncotex India Ltd Management Discussions

SUPER SYNCOTEX (INDIA) LIMITED ANNUAL REPORT 2008-2009 MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL RESULTS: PARTICULARS: This Year 08-09 Previous Year 07-08 (Rs In lacs) (Rs In lacs) Operational Profit/Loss) (14.37) (1056) before financial expenses and depreciation. Less:Financial Expenses - 7.02 Gross Profit/Loss (14.37) (1758) Less:Depreciation - - Net Profit/Loss After depreciation (1437) (1758) Less:FBT 0.02 0.03 Add:Balance brought forward from (481043) (4792-82) earlier years Balance carried forward (482482) (481043) PERFORMANCE: The performance of the Company during the year ended 31st March, 2009 was poor. During the year under review. Further due to labour disturbance In the month of Oct., 2004 & onwards Your Companys productivity effected badly. In addition to above the productivity also affected due to poor demand, lower price of yarn, lower margin & increase of input cost & and looking to the losses and workers problems from the month of oct., 2004 and onwards it was decided to keep the plant under suspense of work since October 25th, 2005. During the year plant under suspense of work hence production is Nil as against NIL in the preceding year. During the year, your Company could have achieved a net turnover of Rs. Nil lacs as against Rs. Nil lacs in the preceding year which includes export turnover (FOB) amounting to Rs. NIL Lacs as against Rs. Nil Lacs of last year. REVIVAL OF INDUSTRIAL UNIT: The promoters of the Company have taken effective steps for revival of the Industrial undertaking of the Company. One time settlement proposal was given to Fls & Banks. The settlement of dues of all the FIS and Banks has been done before 31st March, 2008. To rehabilitate the unit it has been planned to demerge the spinning Unit at khan-KaLamba of the Company based on valuation of assets. The demerger will result into issue of equity shares by demerged unit and substantial reduction in existing Equity share capital of the Company. The scheme of de-merger, reduction in Equity Share capital and scheme of revival of Sick industrial undertaking and scheme for making the net worth positive of the Company has been submitted to the Honble BIFR for its approval.