teesta agro industries ltd Management discussions

MANAGEMENT DISCUSSION

Overview

Teesta Agro Industries Limited is a leading manufacturer of Sulphuric Acid NPK Fertiliser and Single Super Phosphate fertiliser. Its plant is located at Mazabari, Rajganj, Dist. Jalpaiguri, West Bengal. It has six sales offices all situated in the Eastern and North Eastern regions of India. The installed capacity of SSP is 165,000 MT, GSSP 66000 MT, Sulphuric Acid is 66,000 MT and that of NPK is 33,000 MT per annum.

Operation

The turnover and other receipts of your company for the year ended 31st March,2014 stands at Rs. 7744 lacs as against Rs. 11649 lacs for the preceding year. Profit after taxation stood at Rs. 87 lacs as against Rs. 99 lacs in the previous year.

OPPORTUNITIES & THREATS

Government of India introduced Food Security Bill, which ensures providing Food at concessional rate to 840 Million People of India. To implement the same huge quantity of Food Grain is required. Application of proper dose of Chemical Fertilizer & water will ensure such huge production requirement. So, this policy will be beneficial for the poor people as well as the Fertilizer manufacturers.

Due to decontrol of diesel price transportation rate has increased and ultimately cost of bringing raw material to plant site as well as delivering fertilizer to distant places have risen a lot. This price rise may discourage the farmer to purchase proper dose of fertilizer, from within his limited available means.

FUTURE PROSPECTS

The Central Government has shown concern towards balance application of fertilizer dose, which presently skewed in favour of Nitrogen Fertilizer. If this happens in near future, then the phosphate fertilizer industry will go through a boom phase. Subsidised Maximum Retail

Price of SSP fertilizer is low in comparison to other high grade substitutes. Due to its low price, this fertilizer has the farmers acceptability within our marketing zone. So there is hope for the growth of our present business.

Human Resource Development

The company provides ample congenial working atmosphere , so that employees / workers can put their best efforts towards their respective responsibilities. The company provides scope for career growth also. Training programmes are also conducted to update their knowledge .

Adequacy of Internal control

The company has a proper, independent and adequate system of internal control to ensure that all assets are safeguarded and protected against loss from unauthorised use or disposition and that transactions are authorised, recorded and reported correctly. The internal control system are supplemented by an extensive programme of internal audit, review by management of documented policies, guidelines and procedures.

The internal control system of the company are designed to ensure that the financial and other records are reliable for preparing financial statements and other data and for maintaining accountability of assets.

Cautionary Statement

Statements in the Management Discussion and Analysis describing the companys objectives, projections, estimates and explanations may be forward looking statements within the meaning of applicable laws and regulations actual results might differ substantially or materially from those expressed or implied . Important development that could affect the companys operations include a downtrend in the automobile industry global or domestic or both significant changes in political and economic environment in India or key markets abroad, tax laws, litigation, labour relations, exchange rate fluctuations, interest and other costs.