MANAGEMENT DISCUSSION AND ANALYSIS REPORT The Management Discussion and Analysis seek to provide to the Stakeholders of the company an overview of most transparent, ethical and accountable manner and analysis the underlying economic factors which have influenced or impacted the performance of the company with focus on the financial year 2014-2015. Adherence to Corporate Governance ensures greater level of transparency and accountability, fairness in operations, full disclosure, integrity and compliance of laws. Your Company is committed to administer good Corporate Governance to the extent possible even during its continued sickness and other related matters. YASHRAJ CONTAINEURS LTD. recognizes the value of adherence to Corporate Governance in its true sense which alone can ensure continuation of belief and the trust reposed by one and all in your company. INDUSTRY STRUCTURE, DEVELOPMENTS, OPPORTUNITIES AND OUTLOOK After the Election Results were declared, the new Government has taken place and it is focusing more on the manufacturing Sector. It is laying emphasis on the reforms in the labour laws, commercial laws, etc. This has got a positive impact on the market and it is expected that manufacturing sector will do well. Considering this it is expected that the barrels and drums manufacturing industry in which segment your company operates will also get good opportunities to revive its fortunes. THREAT, RISKS AND CONCERNS MSME in Government of India issued Government Resolution under which large no. of items were reserved for procurement from SSI Sector only which includes Barrels / M S Drums which is manufactured by your company. The process of 100% procurement by Government PSU's under this G.R. has to be completed by end of the year 2015, i.e. in the phased manner procurement from non SSI will be stopped. However its appears that the Public Sector Oil Companies who have to procure the material from SSI Sector only. Till the Government of India announces relaxation in the procurement policy for purchasing from MSME, till such time there is a threat to our business. The Basic raw materials for our products barrels and escalation cost of raw materials prices and other inputs have relentlessly squeezed the margins in the business low entry barriers have today made the logistics services industry somewhat vulnerable. Your company is also focusing its attention to have a better brsence in the Private Sector manufacturing companies in the fertilizer, chemicals, food storage industries etc. CAUTIONARY STATEMENT Statement in this Management analysis Report detailing company's objective projections etc. may be forward looking statement within the meaning of applicable laws and regulations. Actual Results may differ materially. From the exbrssed in the statement as the global scenario, govt. policies regulations, economic scenario may impact performance. Company assumes no responsibility to publicly amend, modify or revise the forward looking statement on the basis of subsequent developments, information. |