MANAGEMENT DISCUSSION AND ANALYSIS REPORT Industry Structure and Developments The electrical equipment industry witnessed cumulative growth index of 8.50 during April 2015 to February 2016. Although higher imports still plague the industry but policy changes and various initiatives undertaken by the industry and government are eventually showing signs of revival for the sector. The main customer segment continues to be Textile Machinery Manufacturing Industry and the year 2015-16 has seen a moderate growth in the sector. There was a muted market trend and our performance reflect the same. Opportunities and Threats There was a marginal growth in turnover in our main business segments ie., Electricals and Plastics during the year 2015-2016. The streamlining of our internal processes and procedures are carried out on continual basis. Segment wise Performance Control Panel Production continues to be the spearhead of our company. We are continuing to take a lot of steps during the year to improve our efficiency levels. There has been a widesbrad involvement of all cadres in improving the deliverables of this segment. New customers continue to be added and this segment should continue to grow in the years to come. New machines are added in Plastics division and some of the old machines are replaced with energy efficient machines. The endeavour to broad base the customers and also forays into new verticals continues. This segment is expected to contribute towards the growth of top line in future. The lower wind velocity has affected the generation of wind power in Wind Power Generation segment of the Company. Outlook We remain confident that growth pattern will be positive in the years to come and our company is well poised to reap this trend with excellent infrastructure and trained manpower in place. Risk and concerns Raw Material and Labour cost continue to be our major concern. The only solution here is better value addition and efforts are on to achieve the same. Internal Control System and Adequacy The Company has adequate internal control system, commensurate with its size and nature of its business. The management has the overall responsibility for the Company's internal control system to safeguard the assets and to ensure reliability of financial records. The Company has a budgetary control system and periodically the actual performance is reviewed and the deviations are addressed accordingly. Human Resources The company's HR objective is to achieve company's growth through developing a skilled, motivated and committed workforce. Risk Management The Company adopts a combrhensive and integrated risk appraisal, mitigation and management process. The risk appraisal and risk mitigation measures of the Company are being placed before the Board periodically for review and for improvement. Cautionary Statement The Management Discussion and Analysis Report contains forward looking statements based upon assumptions with regard to global and country's economic conditions, expectation of future events, etc., The factors that might influence the operations of the Company are demand-supply conditions, prices of the finished goods, raw material costs & availability, change in the government rules & regulations and natural calamities over which the Company has no control. The Company assumes no responsibility on the accuracy of assumptions and perceived performance of the Company in future. For and on behalf of the Board Nethra J.S. Kumar Chairperson and Managing Director (DIN: 00217906) Place : Coimbatore Date : July 1, 2016 |