MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS OVERVIEW: The main business of the Company is manufacturing and sale of Chemicals, Dyes, Dyes Intermediates required for Dye manufacturers and merchant export of related items. The Company is also engaged in generation of Solar Power. INDUSTRY STRUCTURE & DEVELOPMENTS, OPPORTUNITIES & THREATS, RISKS & CONCERNS AND OUTLOOK: The growth of the Indian economy has recently shown signs of slow down impacted by the global slow down particularly, Europe and Chinese economy. The Government of India and RBI has consistently been taking suitable initiatives and measures to impart stability and impetus to our economy. During the year under review, the company's sales decreased by about 42% owing to the slackening growth of the world's economy. The outlook of the industry remains cautiously positive. In the chemical industry today, competition is the driving force. Competition that is not just national but increasing on a global scale. The coming years will place India as a significant player in the world's chemical intermediate market. The Exports of the Company constituted around 25% of total sales of the Company. The Company is "Recognized Export House". The Company is consolidating its resources to build a market brsence in the international arena. During the year under review, the Company faced turbulence in the market and the same has been reflected in the results of the Company. The Company is taking all corrective measures to strengthen itself against the volatility. SEGMENT - WISE PERFORMANCE: The Company has achieved revenue from operations of Rs. 23846 Lakhs and Profit before Tax of Rs. 2375 Lakhs during the Financial Year 2015-16. During the year under review, sales of the Company decreased by about 42% resulting in net profit of Rs. 1533 Lakhs during the current Financial Year. Company is committed to be an effective low cost source of supply, while maintaining the required quality of the product. Over a period of time, we have identified new opportunities and developed our product line with our own indigenous technology, such that we can customize our offer to meet the unique needs of our customers. Chemicals are an indispensable part of human life and we hope that our commitment will continue to drive the Company, as we move forward. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY: The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The scope and authority of the Internal Audit function is defined by the Audit Committee. To maintain its objectivity and independence, the Internal Audit function reports to the Chairperson of the Audit Committee of the Board & to the Chairperson and Managing Director. The Internal Audit Department monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies of the Company. Based on the report of internal audit function, the Company undertakes corrective action in their respective areas and thereby strengthen the controls. Significant audit observations and recommendations along with corrective actions thereon are brsented to the Audit Committee of the Board. FINANCIAL PERFORMANCE: The highlights of the financial performance of the Company for the year under review are as under: a. The Company has earned a profit of Rs. 1533 Lakhs. b. The Company spent Rs. 849 Lakhs on Capital Expenditure during the year. c. The Investment in Working Capital was Rs. 6064 Lakhs. d. The Borrowings decreased Rs. 447 Lakhs. e. Your Company is paying dividend continuously since 1993-94. HUMAN RESOURCES: BIL recognizes the importance of the quality and competence of its workforce towards sustained growth of the Company. The management allocates sufficient attention in training the workforce to ensure that they are well equipped to take up challenging projects, and ensure their timely delivery by sticking to target schedules. The Company offers a host of measures like incentives to the employees directly involved in timely completion of such projects. Employee development activities such as workshops, brsentations etc. had been organized during the year for continual capacity building and capability enhancement of employees. The Company has, under its employment 26 officers and workmen. The Company: - Delegates power to employees to implement the Company's policy on health, safety, environment and loss control. - Encourages associates to participate in the framing personnel policies and motivates them to give same level of commitment for continuous improvement performance. - Has in place an attractive policy of performance linked incentive to encourage and reward employee performance. - Ensures compliance with the policy through a process of training and competence, review and audit. During the year, the Company did not experience any strikes or lockouts. CAUTIONARY STATEMENT: Statement in the Management Discussion and Analysis describing the Company's objectives, expectations, estimates or brdictions may be forward looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those exbrssed in the statement. Important factors that could influence the Company's operations include global and domestic supply and demand conditions affecting selling prices of finished goods, input availability and prices, changes in Government regulations, tax laws, economic developments within the country and other incidental factors. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis, of any subsequent developments, events or information. Registered Office: For and on behalf of the Board BHAGERIA INDUSTRIES LIMITED SURESH BHAGERIA (DIN: 00540285) CHAIRPERSON 1002, 10th Floor, Topiwala Centre, Off S. V. Road, Goregaon [ West ], Mumbai - 400 062. 6th May, 2016. |