REPORT ON MANAGEMENT DISCUSSION AND ANALYSIS OPPORTUNITY AND THREAT Company's plant under construction is closed since September, 2000 and with the passage of time, inspite of time to time maintenance by the Company and in the absence of any operation since, then, the corrosion is taking place in the plant due to climatic and cyclonic conditions in the area. It is difficult to exbrss the opinion about the health of the plant on going concern basis or about the losses due to impairment if the assets of the project, since the project and its plant and machinery are one of the highly technologically oriented project whose valuation or its capabilities and conditions are technical subject, and in the absence of independent technical evaluation and health check up of the plant at brsent, one can determine losses if any, for making any provision for impairment of the assets of the project or about its status as ongoing project. In order to protect the interest of the shareholders, stakeholders, employees and the national assets worth Crores of investment, the Company has approached the Hon'ble Allahabad High Court. The Hon'ble Allahabad High Court has granted temporary stay by brventing PICUP from taking over the physical assets of the Company till further order However, your company has settled / trying to settle all the debts so that it can revive the normal business activity INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY The Company has established an appropriate system of internal control to ensure that there exist a proper control over all the transactions and that all its assets are properly safeguarded and not exposed to risk arising out of unauthorized use or disposal MATERIAL DEVELOPMENT IN HUMAN RESOURCES I INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED Relation with the employees remained cordial in general throughout the year. As on 3151 March, 2015 employee strength has been reduced to bare minimum requirement in view of non-operation of the plant. For and on behalf of the Board of Director's For SVC Superchem Ltd. G.S. Dahotre Director Jaffar Imam Director Place: Mumbai. Date: 3rd August 2015 |