MANAGEMENT DISCUSSION AND ANALYSIS REPORT INDUSTRY STRUCTURE AND DEVELOPMENT: The Company has been engaged in manufacturing and sale of mini and rotary kiln cement plants, refractory cement and emery stone minerals and special cement plant. An integrated facility that brpares the raw mix, feeds it to the proprocessing system (kiln), and then grinds the clinker from the kiln system into various cement products. The cement industry has witnessed substantial re -organization of capacities during the last couple of years. OPPORTUNITIES AND RISKS: Today's cement manufacturers are faced with a spectrum of challenges as they strive for consistent quality products while reducing input costs. The fluctuating customer demands, high energy costs, strict environmental limits are few of the threats faced by Cement Industry. The Company also strives to improve its efficiency levels in all areas of its operations by reducing the costs thereby increasing the profits. There has been a global rise in demand for the cement due to increased activity in infrastructure. India has also witnessed a growth in cement needs with Governments at Center and State putting their thrust in the areas of infrastructure development like roads, irrigation projects, housing etc. With this background, the Company sees great opportunity for the industry to grow as a whole. SEGMENT WISE OR PRODUCT WISE PERFORMANCE: The Company has been engaged in manufacturing of mini cement plant machinery and mineral grinding machinery, refractory cement and processing of minerals. Due to intense competition and loss of business, the over all market share of the Company has eroded completely. During the year sales of machinery division, refractory cement and minerals has also suffered. The company due to continuing losses in the refractory section has closed down the refractory units and machinery manufacturing unit. The Company finds it very difficult to continue its brsent line of business and trying to venture into new business. The company is exploring various possibilities and has identified the business of fertilizers as one of the business to step in. The Company is following various leads and trying to emerge as a serious player in this business. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY: The company believes in systematic working and placing of proper checks. Proper systems are in place and regular reviews are held at higher levels to check the efficacy and relevance of system. The company has adequate Internal control systems that commensurate with the size of the company. The Company is also continuously upgrading itself to meet the market dynamics. CAUTIONARY STATEMENT: Statements in this report on Management Discussion and Analysis describing the Company's projections, estimates, expectations or brdictions may be forward looking statements within the meaning of applicable laws or regulations. These statements are based on certain assumptions and reasonable expectation of future events. Actual results could, however, differ materially from those exbrssed or implied. Important factors that could make a difference to the Company's operations include global and domestic demand-supply conditions, finished goods prices, raw materials cost & availability, changes in Government regulations and tax structure, economic developments within India and the countries with which the Company has business contacts and other factors such as litigation and industrial relations. Thus, the Company should and need not be held responsible, if, which is not unlikely, the future turns to be something quite different. Subject to this management disclaimer, this discussion and analysis should be perused. For Saboo Brothers Ltd Sd/- ARUN AGARWAL Director (Din No. 03258275) Place: Udaipur Date: 30/05/2015 |