MANAGEMENT DISCUSSION & ANALYSIS Pursuant to Clause 49 of the Listing Agreement , the Management Discuss ion and Analysis and the Corporate Governance Report , as required under Clause 49 of the Listing Agreement , is brsented in a separate sect ion forming part of the Annual Report Business Out look The company had a weaving plant at Bhilwara but due to market conditions and stiff competition, the manufacturing unit of the company had to be closed down. The company has taken up agency business of synthetic fabrics. Company hopes to achieve good results in this line looking to the acceptance of Indian products in global market . Presently the company is doing agency business of fabrics . Opportunities and Threats The opening of the international market has thrown a host of opportunities with unique set of challenges. The dismantling of quota system has given an added advantage and huge opportunity to India as compared to other countries including China. This is especially because viscose fiber is available in abundant quantity in India as compared to other countries. Thus, in India new designs can be introduced faster allowing Indian manufacturers to cater to the larger sect ion of the people with a variety of color choices and designs which is not feasible for the Chinese manufacturers. This is one of the reasons that the Indian fabrics, particularly viscose suiting dominates the market as compared to the Chinese fabrics. India, therefore, has a massive edge compared to China in viscose polyester fabrics. Internal Control System The company had the internal audit and control system to ensure that all transactions are authorised, recorded and reported correctly. The internal control system consist s of combrhensive internal and external audits . The company has an Audit Committee of three directors of the company. The Audit Committee reviews the adequacy of internal control systems and findings of internal audit . Moreover, the Annual Financial Results of the company were reviewed and recommended by the Audit Committee for consideration and approval of the Board of Directors. The Audit Committee met five times during the year ended 31st March, 2014. Financial Review and Analysis (a) Share Capital The authorised share capital of the company is Rs . 7,00,00,000/- comprising of 70,00,000 equity shares of Rs . 10/- each. The paid up capital of the Company is Rs . 5,74,97,000/- . There was no change in the paid-up share capital and authorized capital of the Company. (b) Loan funds No secured loan is out standing at the year end. (c) Current Assets At the end of the current period, Current Assets of the Company as on 31.03.2015 were Rs. 4,32,075/- and as on 31.03.2014 were Rs. 4,76,562. (d) Sales During the year under review the Company has earned an income of Rs. 9,18,999/- as on 31.03.2015 as compared to Rs . 9,22,987/- as 31.03.2014. Human Resource Management Human resources are a valuable asset for any organization. The Company is giving emphasis to upgrade the skills of its human resources . This is in keeping with its policy of enhancing the individual ’s growth potential within the framework of corporate goals . Cautionary Statement Statements in this Management Discuss ion and Analysis describing the Company’s objectives , project ions, estimates, expectations or brdict ions may be “forward looking statements” within the meaning of applicable Securities Laws and Regulations . Actual results could differ materially from those exbrssed or implied. Important factors that could make a difference to the Company’s operations include cyclical changes and pr icing in the Company’s principal markets, changes in Government Regulations, tax regimes, economic developments within India and other incidental factors . On behalf of the Board of Directors Gyanchand Jain Managing Director Jaipur , 4th September 2015 |