tripex overseas ltd share price Management discussions

TRIPEX OVERSEAS LIMITED ANNUAL REPORT 2005-2006 MANAGEMENT DISCUSSION AND ANALYSIS As required under Clause 49 of Listing Agreement, a Management Discussion & Analysis report is given below: INDUSTRY STRUCTURE AND DEVELOPMENTS: Your company is engaged in the business of manufacturing and trading of wide range of organic chemicals used as dyes and intermediates in the textile, pharma and colour industries. The products are sold in both in domestic and export market. The products of your company are mostly industrial inputs and customers are industries which are engaged in business of Bulk drugs, textile, packaging, petrochemicals, inks etc. During the year under review performance of your company has been encouraging. Due to improvement in domestic market your company has achieved tremendous level of turnover. Your directors are hopeful to achieve better growth in export market for its dyes intermediates. Your directors are hopeful that the company is in position to compete in the international market. OUTLOOK ON OPPORTUNITIES, THREATS, RISK AND CONCERNS: As far as the future outlook is concerned, the company is expects to increase the scope of the business in the future, considering the fact that industrial growth of textile is picking up. The company is planning to expand its existing export Market. In view of present liberalised textile policy of Central Government the Company has excellent opportunity to perform better in future. As considering the threats & risks factors, Government set up and the policies looking at WTO regime, may effect the performance of the Company. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY: Your Company is committed to maintaining high standards of internal controls designed to provide accuracy of information, efficiency of operations, and security of assets. The company has adequate internal controls commensurate with the size and nature of its operations to ensure orderly and efficient conduct of business. These controls ensure the safeguarding of assets, prevention and detection of fraud and error, the accuracy and completeness of the accounting records, timely preparation of reliable financial information and adherence to companies policies, procedures and legal obligations. The audit committee of the Board of Directors meets periodically to review the performance as reported by the auditors: FINANCIAL PERFORMANCE: The companys Income for the Financial Year 2005-06 is Rs.1983.47 Lacs. The Company has earned net profit after tax of Rs. 220.90 Lacs. Net sales have increased by 441% to Rs.1933.55 Lacs compared to Rs.357.37 Lacs of the previous year. HUMAN RESOURCES: The company continues to have harmonious and cordial relations with its employee at all locations. Induction programmes are held for new employee and training program and workshop are held both at global and local levels to sharpen the skill of the staff. The company is currently engaged in the implementation of strong HR practices and systems, comprising recruitment procedures, performance appraisals, compensation, reward system and training procedures. The companys rich intellectual capital, supplemented by new HR practices, is expected to improve its operational efficiencies leading to sustainable growth. CAUTIONARY STATEMENT: Management Discussion and Analysis report are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized by the Company. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operation include global and Indian market conditions, Government set up, changes in the Government Regulations, Tax regimes and such other factor. The Company assumes no responsibility to publicly amend, modify or revise any of these statements on the basis, of any subsequent developments, information or events.