yog industries pvt ltd share price Management discussions

YOG INDUSTRIES PRIVATE LIMITED (Formerly known as Yog Cement Products & Industries Private Limited) ANNUAL REPORT 2005-2006 MANAGEMENT DISCUSSION AND ANALYSIS REVIEW OF OPERATIONS During the year under review the company has achieved a turnover of Rs.3727.68 Lacs against last years Rs.3026.68 Lacs. The overall increase in turnover is 23%. Net profit after tax has increased from Rs. 18.08 Lacs to Rs. 220.58 Lacs which is almost 12 times of the last years profitability. Considering the market situation the company has succeeded in maintaining its market position. DIVISIONWISE PERFORMANCE A) Infrastructure Division: During the year under review the infrastructure division has done substantially well & has shown positive trend in conformity with the market trend. The turnover has increased from 3.70 Crores to 10.16 Crores & vice-versa net profit has considerably increased from 16.38 lacs in the last financial year to 165.30 lacs. As you all are aware that the infrastructure development is showing a very positive trend, the infrastructure division expects to continue to maintain this tempo & achieve considerable amount of orders in the next financial year & for times to come. B) Paper Division: In the year under review the division has achieved turnover of Rs. 2432.71 lass as against Rs. 2369.90 lacs achieved in the last year & a net profit of 113.54 Lacs as against net profit Rs. 56.06 Lacs earned in the previous year. As the members are aware during the year under review price realization in paper industry were good & considering the present demand & profit realization the management has expanded the installed capacity from 60 TPD to 75 TPD in the fag end of the year. This increase in capacity is expected to absorb the fixed. overheads, thus enabling to achieve higher profits. On one side where the division was able to control the cost of chemicals dies by making a change in the consumption pattern, at the same time the division has to face decrease in yield by around 04.00%. This decrease is mainly on account of the following two factors : 1. During the year the division has concentrated mainly on higher B.F. segment as a result of which consumption of imported raw material was high- since the moisture component in imported raw material is high. 2. As all the members are aware that during the current financial year whole India & in particularly the states of Maharashtra, Andrapradesh & Gujarat suffered from heavy rain fall even in the post Monsoon season. As a result of this the raw material received at that tune was highly affected due to the rain water, the moisture content were very high which resulted in increase in the consumption of raw material & consequently resulting in lower yield. C) Petroleum Division : In the year under review the division is able to achieve turnover of 248.13 lacs & net profit of 1.34 Lacs only. The management expects to focus on this division & work out the means & ways to achieve higher turnover in the next financial year. CHANGE OF NAME & ALTERATION IN MEMORANDUM OF ASSOCIATION OF THE COMPANY In the opinion of the management the name of the company i.e. Yog Cement products & Industries Private Limited does not reflects the diversified activities of the Company. Hence, in the Extra ordinary General Meeting of the members held on 17.03.2006 it was decided to change the name from Yog Cement Products & Industries Private Limited to Yog Industries Private Limited. The necessary documents were filed with the relevant authority & the approval was obtained on 10th April 2006. The Main Object clause of the Memorandum of Association was also altered in the same meeting. CONVERSION INTO PUBLIC COMPANY The business activities of the company have shown exponential growth over the period. The new division, Gayatri Energy, require heavy capital investment. These huge funds could be generated by way of inducting proprietor funds. As your company is private company there is restriction onto the Number of members. Hence it is decided by the Board of Directors of the company to convert your private company into public company. FUTURE PERSPECTIVE As you are all aware the Company is undertaking the new activity of Biomass based Energy generation in the name & style of Gayatri Energy. The management is glad to inform you that the project implementation is in its full swing. The EPC contract has been awarded to Walchandnagar Industries Ltd. & the project is expected to commence the commercial production in the financial year 2007-2008. HUMAN RESOURCES Employee relations during the year were cordial. The newly formulated managerial policy was successfully implemented. Developmental needs of the employee were chalked out & training was imparted to them. Training for the field force in general management skills was conducted in conjunction with management development programmes of the various management industries. Such training is also expected to reduce the high staff turnover of the Company. The Directors appreciate the contributions made & initiatives taken by all employees towards achieving improved productivity, flexibility in operations & overall business performance of the Company.