MANAGEMENT DISCUSSION AND ANALYSIS REPORT Your Company is the only producer of Ethylene amines based in India having its plant at Plot No. 13, PCC Area, P.O. Petrochemicals; Vadodara 391 340. The Products Ethylene Amines find their application in various industry segments such as Pharmaceuticals, Agro-chemicals, Resin and Coating, Water treatment chemicals, Oilfield chemicals and so many other The plant facility is equipped with up to date manufacturing equipments and supported by R & D Center and quality assurance department which are equipped with advanced equipments and analytical instruments. The site also has a dedicated pilot plant to conduct trials. The Company has an excellent team of experienced and qualified professional to manage day to day operations efficiently. For more details please visit www.dacl.co.in. PERFORMANCE: Total revenue (net of excise and taxes) for the year 2014-15 amounted to Rs. 3927.63 Lacs compared to Rs. 4424.28 Lacs of the brvious year 2013-14. The operating profit/ (Loss) before tax amounted to - (29.76) lacs compared to Rs. 79.31 lacs in the year 2013-14. STRENGTHS & OPPORTUNITIES: Your company is the sole manufacturer of ethylene amines in India which is a growth market. This offers regular opportunities & helps company to cater to market needs very effectively. Over the years the company has developed robust Systems which help to maintain and sustain the operations despite sever challenges it faces & able to enjoy the market leadership position in one of the segments it operates. Its geographical position & the vicinity to customers also offer added advantage in servicing the customers Ethylene Amines are building blocks for many industries & hence your company believes that this fact will continue to offer potential to grow by exploring manufacturing possibilities of derivatives based on homologues of Ethylene Amines . CONCERNS & THREATS: Since company's core business is Ethylene amines, any negative Development or upheavals taking place in the market place may affect the performance of the company. Fluctuating prices of certain key rawmaterials also has potential to impact the performance in short term. Company also has to compete with competitors who are either forward or backward integrated & has the advantage of scale of economies & thus can swamp the markets with excess & lower priced or even duly free products. Your company recognizes & understands these challenges very well and always braces itself to compete effectively by providing superior, reliable and timely customer support to the end use- OUTLOOK: For the year 2015 the Company's focus will continue on sustaining and maintaining the market share in certain industry segment where company enjoys market leadership position. This will be achieved by forging stronger relationship with customers and by negotiating and entering into beneficial contracts with the suppliers of raw materials. The Ethylene amines business is going through demand-supply imbalance on global level and excess supply is expected to be a reality in the year 2015-16 also. Your company is well aware of the challenging scenario lying ahead and taking necessary steps by planning activities properly at operational stages. HUMAN RESOURCE: Human Resources Development, in all its aspects like training in safety and social values is under constant focus of the management. Relations between the management & the employees at all levels remained healthy & cordial throughout the year. The Management and the Employees are dedicated to achieve the corporate objectives and the targets set before the Company. The Company has been regularly monitoring its policy for enhancement in the skills of its employees by providing need-based training. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY: The Company has a proper and adequate system of internal controls to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition. The internal control systems are supplemented by an extensive programme of internal audits, review by management, guidelines & procedures. Company's control systems are time tested, documented and recognized under ISO Certification. On the financial side, periodic audits by Internal Auditors and External Auditors provide a means whereby weaknesses, if any, are identified and rectified. The Company has an independent internal audit system, covering on a continuous basis, the entire gamut of operations and services spanning major business functions. The internal audit functions include evaluation of all financial & major operating system controls. The internal audit findings and recommendations are reviewed by the Audit Committee and are then reported to the Board. CAUTIONARY STATEMENT: Statements in this Management Discussion and Analysis describing the company's objectives, projections, estimates and expectations are "forward looking statements". Actual results might differ materially from those anticipated because of changing ground realities. For and on behalf of the Board Yogesh M. Kothari Chairman Mumbai, Dated: May 8,2015 |