MANAGEMENT DISCUSSION AND ANALYSIS. (1) OPERATING AND FINANCIAL PERFORMANCE:- Operating & Financial performance has been given in details in Directors Reports. (2) Industry Structure and Development:- Your Company is located at remote place in the State of Gujarat and engaged in minerals Industry by catering to minerals processing segment through extraction of various types of silica sand and china clay, mineral raw material etc. These minerals are sometime sold as raw materials or sold after processing, making value addition to the same as per customer demands. Minerals are expected to become a core sector in the nation's economy in terms of generation of employment and revenues, industrial growth, conservation of energy and natural resources and mainly some unit works as export oriented unit generating foreign exchange and indispensable materials in all important sector of the economy. The Company products are already accepted mainly in the local market. (3) Opportunities and Threats :- It is fact that many developments in Indian economy as triggered by globalization as one world market are under cut-throat competitions, the prime opportunity lies in meeting customer's raised expectation in terms of high quality with value added products, prompt response, timely delivery, proper services and performance and the same opportunities were regularly grabbed by your company since its inception. Your company strives to maintain pace with the fast development in the Indian economy, tremendous competition and latest in technology and know-how with its limited resources. The threats, which the minerals industry foresees, are slow down of Indian economy, myths and misconceptions about minerals and its impact on environment and competition from the global market. However, India has enough mineral resources with good quality accepted in International market, which is expected to fetch sizable foreign exchange in time ahead. Your company will try to start its activity with value addition products gradually to make its share in global market and expecting growth in the times ahead. Your company's production activities are temporary suspended due to notice from State Government of Gujarat as the mining area is under restricted area of Forest Protection Department. Your company is pursuing its case with the concerned department of State gpvernment of Gujarat. Your company's production activities has been started W E F 23rd August 2014 (4) Segment-wise or product-wise performance :- The Company operates only in mining materials segment which includes china clay, silica etc. (5) Business Outlook :- General outlook for the company for the year 2014-2015 is encouraging, progressive & the company with its limited resources has tried to increase its turnover and profitability in this period and come out of world economic recession which company tries further to improve its operation & profitability in years to come. The overall business outlook for Mineral materials including china clay is very encouraging because of the increasing demand. There is an ever increasing demand for china clay, silica sand and mineral materials from various end user for multipurpose and the producers of china clay and silica sand can grab the local as well as global market effectively with high profitability. (6) Risks and Concerns :- The major risks that brvail in the industry are competitions from global players, fluctuation of price and technological obsolescence which company will try to improve upon with its limited resources. Your company is taking due care for the brvailing risks in the industry. (7) Internal Control System and their adequacy :- The management feels that the brsent internal controls in place are sufficient considering the complexity, size and nature of operations of the company. Besides above, Audit Committee which has already been formed by your company under the Companies Act 2013 and later on reformed subject to the requirements of clause 49A of the listing agreement keeps adequate checks & control on overall working of the Internal Control System in the company. (8) Financial Performance with respect to Operation Performance :- The Company will see envisage its growth in future because of continuous hard core efforts put by your Company's management to achieve the pace of development, towards which your company marches. However much requires doing than what has been done due to huge brought forward losses. (9) Material Developments in Human Resources / Industrial Relations front including number of people employed :- There are no material developments in Human Resources under review. The overall industrial relations during the year under review were peaceful. In your Company, contribution and cooperation from all level of employees / workers were excellent during the year and resulted in comparative increase in the business and tilt towards profitability which has been apbrciated and supported well by the management. Due to seasonal business and mainly employment of labor on job work basis, the labor force are employed on need base which fluctuates from time to time. (10) Cautionary Statements:- Estimate and expectation made in the report may differ from actual performance due to various economic condition, government policies and other related factors. |