MANAGEMENT DISCUSSION AND ANALYSIS INDUSTRY STRUCTURE AND DEVELOPMENT M/S. UTL INDUSTRIES LIMITED is engaged in the trading business of Ferrous and Non Ferrous Metals products. The company will resume the production on availability of the requisite working capital. EMERGING TREND AND FUTURE OUTLOOK The business activities is largely influenced by several external factors including the international Commodities and financial markets. During the year the the demand and the market of Ferrous and Non ferrous Metal products were subdued due to financial crisis and lower margins in the manufacturing sector which adversely affected new projects and expansion plans of companies. FORWARD LOOKING STATEMENTS The report contains forward-looking statements identified by words like ,plans", „expects", „wiH" „believes" ,Projects" „estimates" and so on. All statements that address expectation or projection about the future, but not limited to the Company"s strategy for growth, Market position, expenditure and financial results are forward-looking statements. Since these are based on certain assumptions and expectation of future events, the company cannot give guarantee that these are accurate or will be realized. BUSINESS STRATEGY The board of Directors of Your Company are exploring the opportunity to raise and generate the financial resources as to crystalize the plans to expand business activities in India and abroad. Merchant exports offers relatively better margins in trade as compared to the domestic sector currently. RISKS AND CONCERNS Your company is in the business of trading in the metal sector . The operations of the company is likely to be influenced by the international factors for commodities and financial markets, the economic conditions of the metal consumers, the Government policies and economic conditions of the trade and commerce of our country. Even though the promoters are very much dedicated and concerned about the development of the company the operations of the company are largely influenced by the aforesaid external factors beyond control of the management. To that extent the investors are exposed to the risks and the concerns for the return and investments. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY: Your company has adequate internal procedure commensurate with the company"s size and nature of the business. The objects of these procedures are to ensure efficient use and protection of the company" s resource, accuracy in Financial Reporting and due compliances of statute and company procedure. The existing system provides for structured work instruction, clearly laid down procedures of authorization and approvals for purchase and sale of goods, providing accurate services, reserve responsibility of custodial control with identified personnel, and used of computerized system to ensure control at source HUMAN RESOURCE MANAGEMENT The company because of its low activity level has few employees but still Your company firmly believes that its greatest strength lies in the quality of its manpower. The company"s "People philosophy" has given it a competitive edge. There is a conscious effort on the part of the management to develop the knowledge, skills and attitudes of its people through variety of training interventions specifically aimed at as individual's need with a specific thrust on enhancing functional / domain knowledge across disciplines. The employees and management relations remained cordial through 2015-16. OUTLOOK With the diversification contemplated by the management of the company in the metal trading sectors and markets, the diversification of risk and maximization of the return will be assured. CAUTIONARY STATEMENTS Statement in the Director's Report and The Management Discussion & Analysis describing the company's objectives, projections, claims, disclaims, estimates, achievements are forward looking statements and progressive within the meaning of applicable security laws ,and regulations .Actual results may vary from these exbrssed or implied depending on the economic conditions, global recessionary trends Governmental policies, cost inflations, crude oil price movements and all other incidental factors affecting the performance of your company. Industry information contained in the Report, have been based on information gathered from various published and unpublished report and their accuracy, reliability and completeness cannot be assured |