MANAGEMENT DISCUSSION & ANALYSIS REPORT Management Discussion & Analysis Report Pursuant to Clause 49 of Listing Agreement. i) Industry Structure and Development The Company is engaged in the business of trading of ferrous and non ferrous metals. The Company intends to extend its area of operations to other metals including of trading of brcious metals. The metal industry in which the Company is dealing is recently having trends of volatility and there are very good chances for the Company to develop its area of operation in the metal industry. ii) Opportunities and Threats For market players of Metal industry, a major cause of volatility is the cost of raw materials, which has been exacerbated by the change from annual to shorter-term price contracts. Shortages in supply have enabled suppliers to re-engineer the pricing mechanisms. However, this has created challenges for market players. They now have to deal not only with the increased volatility in raw material prices, but also with how to maintain margins with fluctuating demand. These developments are significantly affecting the earnings of the Metal industry and try to achieve stability in Metal market. iii) Internal Control system and their adequacy The Company has adequate system of internal control commensurate with its size and operations to ensure orderly and efficient conduct of the business. These controls ensure safeguard of assets, reduction and detection of frauds and error, adequacy and completeness of the accounting record and timely brparation of reliable financial information. iv) Financial performance with respect to operational performance The financial performance of the Company for the year 2014-15 is described in the Directors Report. v) Human Resources/ Industrial Relations Your Company has undertaken certain employees' Development initiative which have very positive impact on the moral and team spirit of the employees. The Company has continued to give special attention to Human Resource/ Industrial Relations development. Industrial relations remained cordial throughout the year and there was no incident of strike, lock-out etc. vi) Cautionary Statement:- Statement in this Management Discussion and Analysis describing the company's objectives, projections, estimated and expectations are "forward looking statements" Actual results might differ, materially from those anticipated because of changing ground realities. For and on behalf of the Board Govindram L. Kabra Chairman cum Whole Time Director (DIN: 00006621) Date : 14/08/2015 Place : Ahmedabad |