Annual Report 2011-2012 - Bajaj Group

MANAGEMENT DISCUSSION AND ANALYSISFORWARD LOOKING STATEMENTS:1. DisclaimerThese financial statements have been prepared in compliance with the requirements of theCompanies Act, 1956 and Generally Accepted Accounting Principles (GAAP) in India.All statements that address expectations or projections about the future, including, but notlimited to statements about the company's strategy for growth, product development ,market position, expenditures and financial results are forward looking statements.Forward looking statements are based on certain assumptions and expectations of futureevents. The company cannot guarantee that these assumptions and expectations areaccurate or will realized. The Company's actual results, performance or achievementscould thus differ materially from those projected in any such forward – lookingstatements. The Company assumes no responsibility to publicly amend, modify or reviseany forward looking statements, on the basis of any subsequent developments,information or events.2. Future Trend & Opportunities :The technological developments on Ginning & Pressing Machinery has acted as andriving force in structural shift from old outdated to more productive advance machinery.By and large the good pace of technology development and dissemination has beenwitnessed in India in the last 10 years. The continuous thrust of Government, researchinstitutes like Central Institute for Research on Cotton Technology, organizations likeCotton association of India and machinery manufactures towards technologicaldevelopments will prove a driving force for the further improvement of cotton ginningand pressing machinery in future. The growth rate for utilization of cotton is about10-15%, at present and among all the natural fibers cotton constitutes about 80% of thetotal consumption of natural fibers in the world. There are various possibilities to increasethe use of cotton for diversified product manufacture, thus the requirement ofmodernization machinery is going to increase which will improve the working of thecompany in the core business. Further, the company has planned to take up the otherareas of cotton ginning & pressing factories such as building structures, electrical panels,fire diversion, humidification systems and advanced material handling systems whichwill result in substantially higher value for orders as compared to earlier orders only forcore machinery.