MANAGEMENT DISCUSSION AND ANALYSIS: A. OVERALL REVIEW OF OPERATIONS: We are a composite textile sector company manufacturing woolen / worsted suiting and machine clothing (felt). The Company manufactures and markets high quality products under the brand name 'dinesh'. There are few organized sector companies and many companies are in un-organized sector and the Company has to face cut throat competition in the domestic and international markets. The Textile Industry is labour & capital intensive and one of the largest employers in India and the industry has to face various internal & external challenges and our Company is not an exception to these challenges. Despite the global slow down and cut throat competitive international & domestic markets, our Company could achieve sales turnover of Rs.8610/- lacs and the net profit of Rs.433/- lacs during the year under review as compared to Rs.8633/- lacs and Rs.309/- lacs respectively of the brvious year. The profitability has been improved mainly due to proper monitoring of expenses. During the year under review, we could achieve the higher export turnover amounting to Rs.534/- Lacs as compared to Rs. 466/- lacs of the brvious year. C. OVERALL OUTLOOK Due to slow down in the developed and developing countries, our GDP could grow 4.7% during the year 20132014 which is expected to grow upto 5.5% during the year 2014-2015 due to formation of the new Government which would take proper steps to boost the economy and our Company would make every efforts to increase the sales turnover. The Management would also take appropriate steps to mitigate various risks viz. interest rate, commodity price, foreign exchange, business operations and Regulatory etc. The Company assumes no responsibility in respect of forward looking statements made herein above which may substantially change based on subsequent developments, events, change in the Government policies, exchange rate etc. over the globe. D. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY The Internal Audit department conducts audit of all departments of the Company and places audit reports/plans before the Audit Committee which reviews adequacy of internal audit functions, audit procedures and its coverage periodically. The minutes of the Audit Committee meetings are placed at the meetings of the Board of Directors from time to time. E INDUSTRIAL RELATIONS The industrial relations both at Baroda and Ankleshwar unit have remained cordial. As on 31st March, 2014, there were 1022 employees in the Company. |