MANAGEMENT DISCUSSION AND ANALYSIS 2014-2015 The Information required in compliance of clause 49 of the Listing agreement and forming a part of the Director's Report for the year ended as 31st March 2015. INDUSTIRAL STRUCTURE AND DEVELOPMENTS: The Company is manufacturing various Compound of Power Cable, Telephone Cable and Engineering Plastics, The Company is Trying to Enhance the Production area and trying to start the Production of Colored Master Batches also. OPERATION AND THREATS: The raw Material price which mainly depends on exchange rate, petroleum Prices and frequent fluctuation affected the probability. Company has discontinues the Production of ST and LT cable due to cut off through competition. And the Company optimizes its full capacity into PP and other Compounds. Company is also start the Production of Colored Master batches. RISK IDENTIFICATION, RISK MITIGATION AND INTERNAL CONTROLS The Company is manufacturing various Compound of Power Cable, Telephone Cable and Engineering Plastics. Its brsence in these segments exposes it to various risks which are explained below. Risk of Competition and Price Pressure The risk of competition from existing players as well as from new entrants remains high. However, the Company's strength in the market place, coupled with its continuous thrust on improving quality of its products and offering newer products in the Master Batch segment. The Company supplies Various Compound both on National and International Market. Both Market have their own nuances in terms of customer expectations, competition and pricing. However, the company is well focused on increasing its share in all segments through sound marketing strategy and a balanced approach. Risk of fluctuations in prices of key inputs Prices of the key ingredients used in the products manufactured and marketed by the Company remain volatile due to several market factors, including changes in government policies and fluctuations in the foreign exchange rates and the Speculators. However, the Company keeps a close watch on the prices, wherever feasible, to minimize the risk of fluctuations in the input prices. Risk Management and Internal Control System The Company has established a well-defined process of risk management, wherein the identification, analysis and assessment of the various risks, measuring of the probable impact of such risks, formulation of risk mitigation strategy and implementation of the same takes place in a structured manner. Though the various risks associated with the business cannot be eliminated completely, all efforts are made to minimize the impact of such risks on the operations of the Company. Necessary internal control systems are also put in place by the Company on various activities across the board to ensure that business operations are directed towards attaining the stated organizational objectives with optimum utilization of the resources. Apart from these internal control procedures, a well-defined and established system of internal audit is in operation to independently review and strengthen these control measures, which is carried out by a reputed firm of Chartered Accountants. The Audit Committee of the Company regularly reviews the reports of the internal auditors and recommends actions for further improvement of the internal controls. INDUSTRIAL RELATIONS AND HUMAN RESOURSE DEVELOPMENT Industrial Relation continued to be harmonious and cordial throughout the year. The Company always valued its Human Resources and believes in unlimited potential of the each employee. The Company was average 34 numbers of Employees as on 31st March 2015. CAUTIONARY STATEMENT Statement in this report on Management Discussion and Analysis describing the company's objectives, projections, estimates, exceptions or brdictions may be forward looking statement and are based on certain assumptions and exception of future events. Actual result could however differ materially from those exbrss or implied. Important factors that could make a difference to the Company's operation including global and domestic demand-supply condition, finished goods process, raw material cost, and availability, changes in government regulations and tax structure , economic development within India and the Countries with which the Company has Business Contracts and other factors such as litigation and industrial relations. The Company assumes no responsibility in respect of forward looking statement herein which may undergo changes in future on the basis of subsequent developments, information and events. For and on behalf of the Board U.S.Bhartia Chairman DIN : 00063091 Place : Noida Date : 11th August 2015 |