Management Discussion And Analysis ReportOverview
Corporate Governance refers to the blend of laws, regulations and voluntary practices.The Company believes best management practices with ethical and transparent policy. Strongcorporate governance is indispensable for safeguarding interests of all stakeholders,
Industry Structure
Bearing is the backbone of the automotive and other sectors and largely used by the OEMand replacement markets The industry showed recovery from the global downturn trend andregistered a positive growth Indian economy witnessed overall growth. However, the producthas to be competitive and qualitative to get good market opportunities and profit margins.
Prospects
With the frequent changes in bank rates and introduction of base rates by the ReserveBank of India coupled with other measures taken by the Government of India for revival ofthe economy, the Industrial Sector showed sign of recovery and growth. The performance ofthe automobile sector improved manifold. The demand for bearings and other products willalso Increase. The prospects of the Indian bearing industry are bright. The Company hasbeen quality conscious.
Opportunities, Threats, Risks and concerns
Beanngs are used virtually in every machine or product which rotates or moves. TheCompany has a fair name in the Indian bearing industry and has strategic plans formarketing keeping in view the industry demand in domestic and international market. Withthe working capital facilities availed from bankers, the Company is set to achieve thehigher production to meet with the industry demand. New bearings are also used forreplacement of old. worn out bearings and this is a ongoing process. Liberalization inindustrial policy. Duty structure, export market, entry of multinationals and increasingdemand for industrial products influence demand for bearings. The global economy hasshowed sign of recovery from overall slowdown. There have been heavy fluctuations in theforeign exchange rates. The Company's product has been qualitative and competitive. TheCompany has strengthened its marketing strategy. Further, the Company believessatisfaction of the customers and maintaining long term relationship with them, which willultimately provide better opportunity to grow.
Internal Control Systems
The Company has adequate internal control systems in respect of efficiency ofoperation, financial reporting, compliance with laws etc. Exercises for safeguardingassets and protection against unauthorized use are undertaken. The Management reviewsinternal control system from time to time.
Review of Financial Performance
The financial performance during the year ended 31st March, 2010, has been satisfactorylooking into the present industry trend and scenario. The Company expects betterperformance in the years to come, in view of the increasing demand of the Company'sproducts and action taken to expedite expansion on hand.
Human Resources
The relations between the employees and the Management have remained cordial.Cautionary Statement Statements in this report on Management's Discussion and Analysisdescribing the Company's objectives, projections, estimates, exceptions or predictions maybe forward looking statements within the meaning of applicable security laws orregulations. These statements are based on certain assumptions and exceptions of futureevents. Actual results could however differ materially from those expressed or implied.The Company assumes no responsibility in respect of forward looking statements hereinwhich may undergo changes in future on the basis of subsequent developments, informationor events.