MANAGEMENT DISCUSSION AND ANALYSIS Industry Structure & Development As the wooden and glass items are being substituted by plastic items, manufacturing of plastic products have also increased. Your company has been focusing on satisfying the customers by supplying the quality products well in time. This will bring your company in sync with the requirements of buyers and in turn, will bring great profits and values to its stakeholders. Opportunity According to a study on plastics industry by Plast India Foundation increasing usage of plastics in automobiles, consumer packaging and impact of increased infrastructure spending, the plastics industry is expected to continue double-digit growth beyond 2016-17. The industry grew by 13 per cent annually in last five years and expected to continue double-digit growth beyond 2016-17. Your company is quick in realizing the latest trends and opportunities in the industry and has been in sync with the latest happenings in the market. Polycon International Limited is continuously working over its capacity and effectiveness to increase its production and aims to provide better quality products to its consumers along with making strong position in domestic market. Threats - Cut-throat competition from the new entrants in the market, thereby squeezing the Company's profit margins. - Price volatility of key raw material and fuel. - Uncertainty in the economic environment. - Unavailability of skilled manpower. - Threat of substitutes. - Introduction of new technologies. The company's business activity falls within a single primary business segment viz. 'Plastic item' in India hence the disclosure requirement of Accounting standard-17 "Segment Reporting" are not applicable. Outlook 4Your company is constantly striving to provide quality products and is looking forward to use improvised technology and innovative methods to increase its sales. Your company's endeavour to provide high quality products aiming to grant full value of money to the customer, expected to place in light of its refreshed mission and vision and clear strategic framework. Your Company will seize the opportunities and face the challenges brvailing in the industry and is confident to remain the market leader in the organized plastic industry. Risks and Concerns In the normal course of business, the Company is exposed to external risks such as overall demand fluctuation in the market segment in which it operates reduction in relative market share for its products due to the impact of competition as well as internal risks such as limited product range, variation in operational efficiency and cost structure. The company is also exposed the financial risk in the form of interest rate variation. The Company is taking appropriate steps to guard itself against these identified risks. In order to overcome such situations company is fully devoted in the brparation of appropriate programmes, adoption of suitable policies and to take corrective and brcautionary measures for safeguarding the company's market position and further to strengthening it. Adequacy of Internal Control System Your Company has adequate system of internal controls commensurate with its size and scale of operation, to ensure that all the assets of the Company are safeguarded and protected and that all the transactions are authorized, recorded and reported appropriately. The annual internal audit plan and internal audit reports are also shared with the statutory auditors. Your company adheres to the following internal control system:-• Properly conducts Board and general meetings containers since 1991 and the income also derived from the sale of these products. Your Company is hopeful of sustaining its performance through calibrated steps. Your directors are confident of the long-term business prospects of the Company. CAUTIONARY STATEMENT Some statements in this management discussion and analysis describing the Company's objectives, projections, estimate, and expectations may be "forward looking" statement within the meaning of applicable laws and regulations. These Statements are likely to address the company's growth strategy, financial results etc. Actual results would differ substantially or materially from those exbrssed or implied. Important factors that could affect the company's operations include domestic and international economic conditions in the industry, significant changes in political and economic environment in India, changes in government regulations, tax regimes, litigation, labour relation and other statutes. |