vajra bearings ltd share price Management discussions

VAJRA BEARINGS LIMITED ANNUAL REPORT 2006-2007 MANAGEMENT DISCUSSION AND ANALYSIS Companys Performance The Companys performance during the year was poor. This is due to non- availability of the working capital despite full orders. As per the discussions going on with Anyonya Co-Operative Bank, who are and only Bankers to the company. Bank has agreed to allow to shift machinery required repairing and overhouling and further installation at Shapar - Rajkot. The company has agreed to dispose off property owned by the company and pay to the Bank directly and bring an end to the long pending stalemate. The Bank has also agreed to settle for Principal Ledger Balance amounting to Rs.185 Lacs as a full and final settlement. The Bank has appointed Dr. U. R. Danganvala, Chartered Accountant, to mediate between the company and the Bank. The shifting of Plant to Shapar - Rajkot will result in cost saving for inventory as well as transport cost which amounts in Lacs per month. The company has also received assurances from the suppliers to support the production provided we are located near to them i.e., Shapar - Rajkot. The shifting will enable company to dispose the property and settle with the Bank. The company expects to work round 0 Clock at Shapar - Rajkot on Job Work Basis till company makes arrangement for the working capital. Company is sure to come out from the present mess as Promoters/Directors are dedicated and decided to re-locate themselves at Rajkot despite being at Baroda for last more than 30 years. This establishes dedication towards the company and its shareholders. Opportunities, Threats and Future Outlook Since same circumstances are prevailing in the market, outlook for the next year would remain same. The Company is strategically refocusing its business through efficient channel management. credit and recovery process and good back office processes to achieve competitive costs. and minimize the loses. Internal Controls System and their adequacy The Company has a proper and adequate system of internal controls developed over a period of time. The system is supported by professional management and internal audits. Human Resources The Companys human resource policy lays stress on motivating people by encouraging better work culture and environment aimed at continuous improvement in production and quality. For and on behalf of the Board Vadodara 30/06/2007 Sd/ Vijay Doshi Chairman & Managing Director