MANAGEMENT DISCUSSION AND ANALYSIS REPORT The Management of M/s. Sibar Auto Parts Ltd, D4 & D5, Industrial Estate, Renigunta Road, Tirupati brsents its Analysis Report covering the Performance and Outlook of the Company. The Report contains business perspective and prospects based on the current environment and strategic options to steer the Company through unforeseen and uncontrollable external factors. Though company is facing several financial constraints company is able to perform better within available resources. KEY OPPORTUNITIES INCLUDE Expansion in the automobile and electrical components manufacturing is concentrated. Previous year 2013-14 we manufactured electrical components 220 KV, 420 KV , 765 KV . In future we expect better growth in electrical components. We have also taken new electrical component manufacturing for MNC Companies such as ALSTOM. KEY THREATS INCLUDE Increase of price in Furnace oil, Aluminum and other inputs affects profit margin PRODUCT-WISE PERFORMANCE (MAIN PRODUCTS) Product Cumulative for the year-2013-14 Total melting for the year: 968.182 tons out of which Job work: 627.949 tons and sales: 340.233 tons OUTLOOK AND INITIATIVES FOR THE CURRENT YEAR The management is working toward enhanced efficiencies in consumption of raw materials, reduction in input costs. SOME RISKS & CONCERNS * The man power cost per ton of finished product still remains high. * Huge investments required for revamp/replacement/modernization of Machinery. INTERNAL CONTROL SYSTEMS & THE ADEQUACY Internal controls are supported by Internal Audit and Management Reviews. Company ensures existence of adequate internal control through documented policy and procedures to be followed by the executives at various levels. With the objective of improving the systems and removing bottlenecks, systems review is carried out and policies and procedure manuals are implemented. As part of good Corporate Governance the Audit Committee constituted by the Board periodically reviews the internal controls, Audit Programmes, Financial Results, Recommendations of the Auditors and Management's Replies to those Recommendations. REVIEW OF FINANCIAL PERFORMANCE: The Financial Performance of the company is elaborated in the Director's Report CAUTIONARY STATEMENT Statement in this Management Discussion and Analysis describing the Company's objectives, projections, estimates and expectations may be 'forward looking statements' within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those exbrssed or implied. Important developments that could affect the Company's operations global or domestic or both, significant changes in political and economic environment in India or key markets abroad, tax laws, litigation, manpower cost, exchange rate fluctuations, interest and other costs. For and on behalf of the Board For SIBAR AUTO PARTS LIMITED P. Veeranarayana P. Madhupratap (Vice Chairman & Managing Director) (Technical Director) Place : Tirupati Date : August 09, 2014 |