Management Discussion and Analysis (i) Industry Structure and Developments: Your Company is a diversified player with a brsence in Textile, Real Estate and Energy Sectors. Textile: During the year, the 'Revenue from Operations' is from the Textile sector only. The textile sector is expected to have decent growth in the coming years. Your company intends to operate its plant at maximum feasible capacity. The Company is also exploring Asian export markets. These steps are likely to yield improved results in the years to come. Real Estate: The development and progress of the various Real estate projects in the South through 100% subsidiary companies was slow during the year because of various factors like delay in government clearances, low demand etc. However, during the year 2015-16, your Company is expecting to launch at least two projects, subject to receipt of required clearances. Energy: Final Environmental clearance for the Floating Storage cum Re-gasification Unit (FSRU) Project at Jafrabad has been received. Following this, Term Sheets have been signed with the Users of the Terminal. The Terminal will have an initial capacity of 5 MMTPA with a plan to expand the same to 10 MMTPA for which environmental approval exists. The Project is expected to be commissioned during 2018-19 and once operational, it will be first of its kind in India. (ii) Opportunities, Threats, Risks and Concerns: Opportunities in all the three sectors are enormous. Textile business, with expansion in domestic market and exploration of the export market, is likely to add to the revenues of the company. Real estate sector shall contribute handsomely in the years to come, with growth of IT and other sectors in southern India. Gas demand is increasing in India and in this light, the LNG Re-gasification Projects assume greater significance. With national Gas Pipelines Grid connectivity to this Project with the demand centre of western and Northern India, it is likely that the Project can double its capacity in the near future. However, each of the three sectors of the company has inherent threats, risks and concerns, peculiar and applicable to each sector, like, changes and uncertainty of regulations, rising inflation, international factors, demand supply fluctuations, input cost fluctuations etc. Your company is well placed to face all of these threats, risks and concerns. (iii) Segment wise product wise performance: During the year, the revenue from operations has been contributed by the Textile sector only. (iv) Outlook: The new government with its 'Make in India' slogan is driving the Indian Economy towards continued growth prospectus and is determined to take bold initiatives for overall socio-economic development. Your company is well poised to reap the benefits in all the three sectors. The outlook of the management in all the three sectors is positive in spite of variety of adversity of factors. (v) Internal Control systems and their adequacy: Your Company has adequate and appropriate internal control systems. The Senior Management periodically reviews factors and issues that influence the Company's Business and takes appropriate decisions to ensure that the Company's interest and that of the stakeholders is protected. The Company has an inbuilt system of internal checks and controls. The Audit Committee of the Board reviews the adequacy and effectiveness of the internal controls and checks and suggests desired improvements from time to time. (vi) Financial and Operational Performance: (vii) Material developments in human Resources/ Industry relations front, including number of people employed: The Company continues to give utmost importance to Human Resources Development and keeps relations normal. As on 31st March, 2015, there are 157 employees, including 4 whole time directors. Industrial relations continue to be harmonious and normal. (viii) Precautionary Statement: This report contains forward looking statements that address expectations and projections about the future, based on certain assumptions of future events. Company's actual results, performance or achievements may, thus, differ materially from those projected in any such forward looking statements. For and on behalf of the Board of Directors Navinbhai C. Dave Chairman Mumbai, 14th August, 2015 |