Some extracts from the Management Discussion and Analysis of 2015-16 annual report (in italics).
In summary, there is absolute lack of clarity in thought and in data. Lots of words which mean the same thing keep getting repeated.
As you are aware, your Company has been providing innovative and application focused products to
enhance value of its customers globally__The Company markets several value added products, which are
steadily gaining strength in the overseas market through a net work of dealers and customers. We
continue to develop new and innovative products for various applications.
Nobody seems to be aware based on the thread above. No info on what is the innovation, what is the application and what is the value. The 2 sentences are really the same content rehashed in different words!!
The Company sees several opportunities for profitable growth in the areas of value added products, and
a growing demand both in the international and domestic markets. Strong quality product development
and marketing efforts have enabled the Company to stay ahead.
Again no information on what is the value addition. Stay ahead of whom? Absolutely no data to prove the claims on quality product development and growing demand.
In view of the anticipated growth in the demand for the products of the company in the years to come
opportunities for the company to improve its performance is bright. The Company has also decided
to improve its manufacturing efficiency by incorporating various balancing equipments and also by
placing emphasis on efficient and professional management of the available resources of the company.
However, the changing International developments affecting the production and distribution of the
essential petrochemical products and raw materials are likely to have it s effect in our activities.
Again lots of words with no data.
The plant and machinery of the Company are of the state of the art technology. The products of the
company are of best quality and have been accepted by well-known end-users in many advanced
countries like U.S.A, U.K. etc.
Why is the Plant and Machinery state of the art, why are the products of best quality, who are the end users who have accepted it?
In veiw of very good order book position the Board will be considering expansion and /or diversification
If order book is good why would anyone diversify? In the worst case, diversification could make sense only if the company has enough and more cash (that again I know is debatable). Again why expansion, no information on what is current capacity, what is utilised capacity, how much demand is expected to go up and how much expansion is planned and how it will be funded. It is very funny indeed that the company wants to diversify instead of executing on its “good order book”.
The Risk Management Committee
_reviews and monitors the identified risks and mitigation plans at regular interval. Some of the risks _
identified and analysed by the Management are as under:
The Audit Committee and the Board are apprised of the significant risks and mitigation efforts made by
the Management in its quarterly meetings.
If you are searching for the “risks as under”, keep searching. Maybe they wanted to google the risks and add it sometime later but forgot! Or may be, they want to indicate that the risks are really the audit committee, the board and the management !!
Your Company’s main business is “Polymer Processing” and all other activities of the company revolve
around this main business.
Why does Polymer Processing require a double quote? Double quote is normally used when you do not exactly mean what is within the double quote or when quoting someone else! What are the other activities that revolve around Polymer processing? You either process polymer or you dont. What can anyone do around polymer processing that is innovative, adds value and is accepted in developed countries like US, UK etc?
Good luck to all who are invested (sorry speculated) in this.