MANAGEMENT DISCUSSION AND ANALYSIS REPORT Industry Structure & Developments: India emerges as the destination for designing and manufacturing automobiles and auto components. The steady growth in the auto component industry stands to further get spurred through various Government of India initiatives around infrastructure development. Better interstate connectivity through roads and highways is bound to bring an upswing in transportation through commercial vehicles, which already account for 20 percent of the overall turnover in the auto component industry, despite having witnessed dispirited growth of late. With amends in the Foreign Trade Policy 20152020, simplifying the Merchandise Exports from India Scheme with an aim to streamline trade facilitation and ease of doing business, the exports process is bound to get hassle-free and run more proficiently through enhanced electronic governance and reduced physical documentation. Opportunities and Threats: The government's pro-manufacturing stance and favorable policies, coupled with the encouraging steps taken to facilitate exports, augur well for the auto component industry, Which will help generate thousands of additional jobs in India while stimulating economies growth and contribution to the overall GDP. High cost of capital, rising interest cost, thinner margin, scaling infrastructure & input cost, spurious parts, currency fluctuations pose concerns to your Company. v Your Company is confident to tone down the current challenges by developing continuous sustainable strategies and adopting new skill sets. Segment-wise Product Performance: The company's products are ail auto components and corne under the single primary segment. Outlook: Looking at the automotive industry from a global perspective, with demand for new vehicles expected to reach a staggering 110 million by 2020, there is a tremendous opportunity for the automotive component industry in India to rise to the occasion and serve the global automotive parts and components market through exports. For IPRL, consistent quality management practices, cost consciousness, identifying newer customers, targeting higher exports, value engineering and management Systems - ail these elements will contribute in future. Risks and Concerns: The risks and concerns of the Indian auto component industry are closely linked with stiff overseas competition, uncertainty arising from currency volatility, low-priced imports and counterfeit parts. The industry efforts to mitigate the above risks along with policy measures of the government would determine the impact of the above risks on the industry going forward. Internal Control Systems: Your company maintains an adequate and effective internal control System to commensurate with its size and complexity. An Independent Internal Audit function is an important element of your Company's internal control System. The internal control System is supplemented through an extensive internal audit program and periodic review by management and audit committee. Financial Performance: Your Company made a turnaround by ending the year with a PBT of Rs. 12.11 Lakhs while compared to a loss of Rs.115.11 Lakhs recorded in the brvious year. Ail the three divisions of the Company i.e. Rings Division, Transmission Components Division and Tooling Division contributed to the overall results. Human Resource: Health, Safety, Security and environment is a core value of your Company. The health, safety and security of everyone who works for your Company, is critical to the success of its business. Employee training is continuing to receive top priority in the Managements efforts to reach World Class Standards. Systematic training is given at ail levels to improve the knowledge and skill level of ail employees. Industrial Relations: Industrial relations during the year was cordial. Corporate Social Responsibility: Section 135 of the Companies Act, 2013 is not applicable to the Company. 10 Year Record: A chart showing 10 years' performance is appended forming part of this Report. . |