MANAGEMENT DISCUSSION & ANALYSIS The Indian Textile Market India is the one of the world's largest producer of textiles and garments. Abundant availability of raw material such as cotton, wool, silk and jute as well as skilled workforce have made the country a sourcing hub. It is the world's second largest producer of textiles and garments. The Indian textiles industry account for about 24% of the world's spindle capacity and eight percent of global rotor capacity. The potential size of the Indian textiles and apparel industry is expected to reach US$ 223 billion by 2021. The textiles industry has made a major contribution to national economy in terms of direct and indirect employment generation and net foreign exchange earnings. The Sector contributes about 14% to industrial production, 4% to gross Domestic product (GDP), and 27% to the country's foreign exchange inflows. It provides direct employment to over 45 million people. The textiles sector is second largest provider of employment after agriculture. Thus, the growth and all round development of this industry has a direct bearing on the improvement of India's economy. ABOUT THE FRASER AND COMPANY LIMITED: Business Overview: The Company is engaged in the operations as general merchants and traders in goods and commodities, commission agents, buying selling agents, and importer exporters of retails products. We foray into marketing and acting as buying selling agents of fabric and allied products and also we proposed to enter into export and import operations of diamond. FINANCIAL PERFORMANCE: During the fiscal 2015, the gross operational income of the Company stood at Rs. 17.68 Lacs as compared to brvious fiscal of Rs. 38.55 Lacs. The company has continued its trading activities and this fiscal, Company losses have been Rs.78.19 Lacs as compared to the profits Rs. 28.56 Lacs of fiscal 2014. SWOT Analysis SWOT Strengths •Experienced Promoters and management team •Cordial relationship with Customers •Established Logistics Weaknesses •Dependence upon existing customers for our business •Limited geographical coverage •Dependent on original suppliers of products Opportunities •Establishment of market in neighboring states. •Potential to increase the business in the existing facility. Threats •Threat of competition from new entrants as no entry barriers. •Any change or shift of focus of government from agriculture industry may adversely impact. •There are no entry barriers in our industry which puts us to the threat of competition from new entrants. FUTURE STRATEGY: •Expansion of existing activities •Foray in to export oriented products • Brand recognition REGULATORY: Company is complying various statutory provisions such as Companies Act, Income tax, Service tax, Listing Agreement provisions and other applicable laws and regulations applicable to the company. INTERNAL CONTROL SYSTEM AND ADEQUACY: Internal Control Systems has been designed to provide reasonable assurance that assets are safeguarded, transactions are executed in accordance's with management's authorization and properly recorded and accounting records are adequate for brparation of financial statements and other financial information. Internal check is conducted on a periodical basis to ascertain the adequacy and effectiveness of internal control systems. CAUTIONARY: Statement in the Management Discussion & Analysis, describing the company's objectives, projections and estimates are forward looking statement and progressive within the meaning of applicable laws & regulations. Actual result may vary from those exbrssed or implied. Important developments that could affect the company's operations are significant changes in political and economic environment in India, tax laws, exchange rate fluctuation and other incidental factors. On behalf of the Board of Directors, For Fraser And Company Limited Sd/- Ashok C Patel DIN - 06659772 Chairman Place : Kolkata, date : 29th May, 2015 |