transmetal ltd share price Management discussions
TRANSMETAL LIMITED
ANNUAL REPORT 2007-2008
MANAGEMENT DISCUSSION AND ANALYSIS
REVIEW OF OPERATIONS AND OUTLOOK:
The Company, during the year under review, continued its thrust on volume
based growth both in domestic and export markets; with the operating
margins under pressure; following steep escalations in raw material prices-
fuelled by a demandpush in the chlor-alkali industry, oil prices and other
inflationary factors.
In the year under review, the Companys initiative of having acquired
additional operating capacities; reached culmination with the Company
entering into along term Supply Agreement, with a multinational company,
for its Indian manufacturing facility as an exclusive supplier. The
Customer trial runs have been successfully completed, in terms of enhanced
quality norms, Commercial supplies will progressively commence from the
first quarter of 2009.
We had a chance to share with you, in the previous years Directors Report
on acquisition of manufacturing facility of Paritej Molecules Pvt. Ltd, as
a going concern. Paritej facility, which was acquired from September 7,
2007, in Karakhadi, near the Companys existing factory could be only
partially operationalised, with one of the plants going on stream only from
April, 2008.
During the first quarter of the current year, the Companys plant for
manufacture of Chlorpyriphos (technical) will go on stream with both of its
Methyl and Ethyl variants. The corresponding capacities of penultimates to
help integrate the operations have been streamlined and would be further
augmented in the current year.
In the current year, with the enhanced capacities, your Company has
sanguine aspirations to more fully realise its operating potential; in
respect of the ongoing products.
Sustainability of our operations and volume growth may be impaired by
runaway inflation, impacting many of the economies, across the world. Your
Companys integrated operations will contribute to mitigate the downside.
FINANCE:
As stated in last report, to substantially fund acquisition of the
additional manufacturing facilities, NaTCP Expansion and Chlorpyriphos
Project, the Company issued 600,000 equity shares aggregating to Rs.555.00
lacs to Promoters, Associates, Employees and Mitsu Limited, on preferential
basis. The Company also issued 5% non-cumulative redeemable preference
shares of Rs.500.00 lacs to Mitsu Limited, on a preferential basis.
Your Company raised term loans aggregating to Rs.1100 lacs and availed of
working capital facilities enhancement of Rs.450 lacs. The Company has
continued to receive good response to its fixed deposit scheme.
INSURANCE:
The Company continues to carry adequate insurance cover for all its assets
against foreseeable perils like fire, flood, earthquake etc. and covers
consequential loss and liability risks as per applicable provisions of
Public Liability Insurance Act.
ORGANISATIONAL DEVELOPMENT:
Your Company continues to provide a thrust on promoting development and
capacity building of its human resources; for employees at all levels.
Towards this objective, the Company collaborate with Resonate Consulting, a
renowned Organization Development Consulting outfit.
A Development Center approach is being deployed as a key intervention, to
focus on base lining and developing specific leadership competencies
through group coaching to senior employees; by use of Appreciative Inquiry
approach.
Competency development programme has been integrated with business goals.
The coachees, it is envisaged, will emanate as more effective second-tier
line leaders, to progressively shoulder greater operational
responsibilities.
Another training organization, facilitates Supervisory Staff Leadership and
Motivational training to augment shop floor skills and deliverance, both
for office and factory staff.
All employees and spouses are eligible to attend Vipassana Meditation
Courses and encouraged for its regular practice, per your Companys policy;
in terms of which, regular benefits are being availed of. The Company staff
also collaborate to serve Vipassana Organizations in and around Vadodara.