well pack papers containers ltd Management discussions

WELL PACK PAPERS AND CONTAINERS LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSIS ACTIVITY: The Company is engaged in manufacturing of Paper and Laminated Sheets. FINANCIAL REVIEW: The year was very tough for the company. Company has achieved turnover of Rs. 34.54 Crores against the turnover of Rs. 20.42 Crores for the previous year. However company has incurred Loss of Rs. 7.05 Lacs as compared to the Profit of Rs. 39.98 Lacs for the previous year. Company has taken Credit facilities from the Bank for the set up and expansion of Laminate Unit and also for the Expansion of the Paper Unit of the company which resulted in to the heavy finance and interest cost to the company. Expansion of the project has been delayed due to the financial crises. Companies Laminate Unit and Paper Unit were remained closed from 20/05/2011 to 25/07/2011 due to financial crises. However at present the company is in stable situation and promotes are trying to revive the company. RISK AND CONCERN: There are no risk and concerns other than the fluctuation in the global economy. INTERNAL CONTROL SYSTEMS: The Company has a risk focused, Internal Control System to analyze and report to the management on the day-to-day operations of the Company. Efforts are being made to continuously strengthen it further. The internal control system ensures protection of assets and proper recording of all transactions. The Internal Audit program is finalized in consultation with the internal Auditors and the audit committee of the Board. The reports of the internal auditors, observations and recommendations, significant risk area assessments and adequacy of internal controls are periodically discussed and reviewed in Audit Committees observations. INDUSTRIAL RELATIONS: There is conscious effort on the part of the management to continuously develop knowledge, skills and attitudes of its employee. Throughout the year Industrial relations continued to remain cordial and harmonious in the Company. ENVIRONMENTAL ISSUES: As the company is not in the field of manufacture, the matter relating to produce any harmful gases and the liquid effluents are not applicable. CAUTIONARY STATEMENT: Statements in this report on Management Discussion and Analysis may be forward looking statements within the meaning of applicable security laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could however, differ materially, from those expressed or implied. Important factors that could make a difference to the companys operations include global and domestic conditions. And changes in government regulation and tax structure, economic development within india and the countries with which the company has business contacts and other factors such as litigation and industrial relations the company assumes no responsibility in respect of forward- looking statements, which may be amended or modified in future on the basis of subsequent developments, information or events. Dated: 12th Aug., 2011 For and on behalf of the Board Place: PIYAJ (VINOD M. PATEL) CHAIRMAN