unique agro processors india ltd Management discussions

UNIQUE AGRO PROCESSORS (INDIA) LIMITED ANNUAL REPORT 2004-2005 MANAGEMENT DISCUSSION AND ANALYSIS Operating Results All the members are fully aware that the company was declared as a sick unit by BIFR, New Delhi and though its revival scheme was finally sanctioned by BIFR, in January 22, 2003, when the Soya season was almost over, the company could not start the production in their factory during that season. Moreover no working capital was available during 2003-04 and hence there was no production started in the factory. Companys efforts were on for getting the loan form any Bank as against working capital as well as effecting the incomplete refinery. The outstanding dues of the main creditors like SBI, SICOM, and MSEB etc, are to be wiped out as per the perquisite condition of the Bank to whom we approached for the loan. This was rather a difficult financial task before the Company, but one of our director, who was our main financial support has come forward and provided the required funds for setting these creditors through OTS and accordingly we have settled the SICOM during March 2003 and SBI during August 2004 finally. The installments of MSEB against their outstanding dues were also paid regularly and as such all the main creditors are finally settled and there is no outstanding dues remained as on to day from any of the main creditors. The Company has applied for sanctioning the loan Rs. 7 crores to the Bharat Co.op Bank Ltd., Mumbai and after completing required formalities this loan was finally sanctioned by the above Bank on dated 9th October 2004, and then only the Company could start the production activities during the season 2004-05. Our industry had started production during the season 2004-05 from Dec. 04 and it was continued till the end of June 2005. The production up to the end of March 2005 was only 2241.390 MT because it has started around two months late due to delay in availability of funds against working capital from our Bankers and delay in completing all pre-start formalities. The Company had installed hydraulic system for both the flakers in preparatory section due to which frequent breakdowns are reduced and rate of production was increased. In addition to this we have installed a conveyer of 75 to 80 MT capacity due to which seed feeding is regular and give continuous production without interruptions arises for want of Hamals for manual feedings of Soya Seed.