MANAGEMENT DISCUSSION AND ANALYSIS Company Background The Company is engaged in printing, packaging & stationary with manufacturing facilities at three places. As on date the Company is having three manufacturing units. 1) At U-116, M. I. D. C. Industrial Area Hingna (Printing Unit). 2) At Khasara No. 49, Mondha (Stationary Unit) 3) At Plot No 49, Khasara No 69, Mondha (Packaging Unit) Industry Structure and Developments The Indian Economy is estimated to have an increased growth rate with China. The agricultural and allied sector has recovered from decline in brvious years. Lot of emphasis has been given by the Government of development of Agriculture and Education Sector. This shall boost the Paper Industry. GDP Growth rate is expected to be at 8%, growth in consumption of paper is expected to be at 8%. At brsent the paper industry is facing crucial face, due to abnormal rise in cost of raw-materials, chemicals, consumables and power. The Prices of the Paper have shown improvement than brvious years. To be globally more competitive Indian paper industry needs the following: 1. Sustained availability of good quality of raw material (forest based) and bulk import of waste paper to supplement the raw materials supplies. 2. Adequate modernization of the manufacturing facilities. 3. Improvement of Infrastructure. 4. Quality Improvements and reduction in cost of production. 5. Import policy conductive for import of material, equipment, raw-materials and technology. Opportunities The potential of growth for the industry lies in development of the economy, rising literacy rates, consumerism and standard of living. All these factors are in a positive move in India at brsent, which gives a good picture to the scenario of paper industry. With the increased focus on education and agriculture, the future of Indian Paper Industry looks good. Threats The main cause of fall in the profitability of many Indian paper manufacturers can be attributed to the fall in rupee value, increased cost of raw material, fuel consumables etc. Internal Audit Adequacy The Company's Internal Audit Section operates under the guidance of a qualified Chartered Accountant on consultancy basis, to ensure internal checks and balances in finance and accounting aspects. Financial Review This aspect is dealt with in the beginning of this report. However, the Company continues to be a sick industrial unit registered with BIFR, with accumulated losses of Rs. 338.33 Lacs, as at June 30, 2014. Human Resources Relations Human resource is the best resource of all the resources because it is the one which can properly take advantage of the other resources. It is the companies belief that Human Resources is the driving force towards progress and success of the company. The Company seek to motivate and retain its professionals by offering reasonable compensation and opportunity to grow in the organization. The total permanent employees strength of the company was 26 on June 30, 2014. Industrial relations remain cordial during the year. Forward Looking Statement-Cautionary Statement Statements in the management discussion and analysis describing the Companies objectives, projections, estimates, expectations may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results may differ from those exbrssed and implied. Important matters that effects the company's performance is the economic conditions of demand and supply and price conditions in the domestic and overseas market in which the Company operates, changes in the government regulations, tax laws and other statutes and other incidental factors. |