MANAGEMENT DISCUSSION AND ANALYSIS REPORT INDUSTRY STRUCTURE AND DEVELOPMENTS: The Rubber and PVC industry is growing at a faster pace. Our product range includes Stearic acid, Fatty Acids; the ultimate users of our products are Rubber and PVC industries. Therefore the demand of our products is set to grow at much faster rate. Your company is trying its best to increase the market share of its products and to economize its production. Opportunities and Threats OPPORTUNITIES Production of Rubber and PVC industry is increasing day by day because of demand of Rubber and PVC and its allied products. Since our products are mainly consumed by these industries, demand of our products is also set to increase. THREATS There is lot of competition in the market in this segment and continuous increases in raw material cost are main threats. OUTLOOK The prospects of oil industry for the fiscal year 2014-15 seem bright and encouraging. The Government is all set to decrease the custom duty on imported raw material, which is mainly oil. Therefore cost of imported raw material shall be less as compared to raw material procured indigenously. Demand and market acceptance of our product is very good and in future also management is optimistic about the prospects of the company. RISK AND MANAGEMENT PERCEPTION The operations of your company are subject to general business risks and competition in the industry, which can affect the growth of the company. Your company continuously updates its systems and procedures to reduce uncertainties and risks and explore new market to cope with the competition. INTERNAL CONTROL AND THEIR ADEQUACY The Company has adequate system of internal control and internal audit system and management has access of all its assets and proper procedure is adopted for disposal of any assets of the company. The company has constituted an audit committee, which consists of independent directors, which periodically review the internal control system. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE The Company has achieved a turnover of Rs. 2921.97 Lacs and incurred a loss of Rs.561.73 lacs during the year under review. MATERIAL DEVELOPMENT IN HUMAN RESOURCES AND INDUSTRIAL RELATION FRONT, INCLUDING NO. OF PEOPLE EMPLOYED Industrial relations remained cordial and harmonious during the year under review and there was no working day loss due to any adverse activities. The company had employed 113 persons as on 31st March, 2015. CAUTIONARY STATEMENT Statement in the management discussion and analysis describing the company's objectives, estimates, projections and expectation may be forward looking statements within the meaning of applicable laws and regulations. Actual results could differ materially due to economic conditions effecting demand, supply, prices, changes in government policies, tax laws and other incidental factors. For and on Behalf of the Board For Ritesh International Limited sd/- (Rajiv Arora) Chairman-cum-Managing Director DIN:00079838 1108/1, Tagore Nagar, Civil lines, Ludhiana-141001 Place : Ludhiana Date: 14.08.2015 |