wopolin plastics ltd Management discussions

WOPOLIN PLASTICS LIMITED (Formerly known as BAJAJ PLASTICS LIMITED ANNUAL REPORT 2005-2006 MANAGEMENT DISCUSSION AND ANALYSIS WORKING & FUTURE PROSPECTS: As informed earlier, operation of the Foundry Division remains suspended. The Directors of the Company deeply regrets to inform that the operation of the Plastic Division has also been closed down. Due to labour problems and financial crunch, it was not possible to run the Company. In order to minimize the losses, the management declared lock out at the Plastic Division with effect from 28th January, 2006. Further many workers and all the supervisory staff and office staff have resigned and left the Company. As on date, the operations of both the divisions are completely closed. ASSIGNMENT OF DEBTS BY LENDERS TO ARCIL: As informed earlier, ICICI Bank Limited and Industrial Development Bank of India Limited (IDBI) had assigned all their dues/rights to Asset Reconstruction Company (India) Limited. In the current financial year under review, Bank of Maharashtra and Bank of Baroda has also assigned all their dues/rights to Asset Reconstruction Company (India) Limited. As on date, ARCIL holds 96% of the total debt of the Company. POSSESSION OF ASSETS OF THE COMPANY: Pursuant to the above, ARCIL has taken possession of the Companys immovable property together with all buildings, structures thereon and all the movables lying or stored therein, plant and machinery attached to the land or permanently fastened to anything attached to the land. ARCIL has started the process of realizing the Assets of the Company and has already auctioned raw material and finished goods of the Company. For and on behalf of the Board NAGPUR H.G. BAJAJ Dated: 16th October, 2006 Chairman & Managing Director