MANAGEMENT DISCUSSION AND ANALYSIS REPORT INDUSTRY STRUCTURE AND DEVELOPMENTS AND OTHER RELATED MATTERS During the financial year 2014-2015, the Company's operations performance has improved significantly. However, financial performance has been adversely affected due to external factors resulting in high cost of sales and weak finished goods prices. Though the Global economy has slowed down, mainly due to lower growth rates in emerging economies such as China and India. This has resulted in weaking of commodity prices which has been adversely affected upon our industry. OVERVIEW During the year, your company has earned operating income of Rs.211.90 lacs and a profit before tax of Rs.72.82 Lacs. The management is hopeful to achieve the better performance in the next year. The management of your company accepts the responsibility for the integrity and objectivity of the financial statements. SWOT ANALSIS Strength • Promoters are experienced of more than 27 years in the line of Cycle parts business. • Competitive. • Prompt responsiveness to customer and their requirements. • Increasing customer relationship base resulted in continuous growing industry. • No worker unrest being a trading company. Weaknesses Shortage of demand More than 90% revenue from single segment - trading and manufacturing of Cycle parts Low supply and automation Level: Highly dependent on other steel industries. Opportunities • Growing domestic deman d with the improvements in sentiments in general. Threats Increase in competition. Uncertain in cycle market. INTERNAL CONTROL SYSTEMS The company has proper and adequate internal control systems commensurate with its size and nature of operations to provide reasonable assurance that all the assets are safeguarded, transaction are recorded and reported properly and all applicable statutes and corporate policies are duly complied with. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES There are no significant developments to report on the Human Resource Front. The company enjoys a harmonious relationship with its employees. SEGMENT WISE/PRODUCT WISE PERFORMANCE The company has been trading in iron and steel and its allied products and continues to improve its position in the same area. CAUTIONARY STATEMENTS Statements in the Management Discussion and Analysis Report describing the Company's activities, projections about the future, estimates, assumptions with regard to economic conditions and Government policies etc. have been made in good faith and may be "forward looking statements" within the meaning of applicable securities laws and regulations. Many unforeseen factors may come into play and affect the actual results which might differ from those either exbrssed or implied. Market data was based on information gathered from various published and unpublished sources and their accuracy, reliability and completeness cannot be assured. By the order of Board of Directors For Roxy Exports Limited sd/- Amit Mittal DIN:01691317 (Whole Time Director) sd/- Subhash Chander Mittal DIN: 02739014 (Managing Director) Place: Ludhiana Dated: 1st September, 2015 |