MANAGEMENT DISCUSSION AND ANALYSIS
Industry Structure & Development
The man made yarn industry has been facing an extremely volatile situation. The prices
of the basic raw materials such as PTA, MEG etc. have risen to as much as 107% during the
year on account of international supply-demand changes. However there has been no
commensurate increase in the domestic prices of the yarn. The rise was also on account of
political disturbances in West Asia and in some major oil producing countries. The impact
of Severe Acute Respitory Syndrome (SARS) Scare, nation wide strike by down stream weavers
& processors have also hit the industry to a great extent.
With the rationalization of excise duty, PFY is expected to be only marginally helpful
Total income during the year has been Rs.71.38 Lacs against Rs.99.56 Lacs in the
previous year. The management is exploring the best possible solutions to revive the
company and there has been some improvement in this direction.
Opportunities and Threats
As the per capita consumption of Polyester in India remains among lowest in the world,
there exists an opportunity for future growth in the Polyester Industry. There is a threat
from imports. The increased prices of raw materials, anomaly in the custom duty on raw
materials, and excise on Polyester Filament Yarn are also matters of concern.
As per the present operations of the Company, the Segment Reporting under Accounting
Standard - 17 issued by the Institute of Chartered Accountants of India is not applicable.
Internal Control systems
Your Company has an adequate and proper system of internal controls, to provide
reasonable assurances that the all the assets of the company are safeguarded and protected
from unauthorised use and that all the transactions are authorised, recorded and reported
correctly. The system also ensures that the adequacy of existing internal control
mechanism, reliability and integrity of accounts, financial records and other related
statements. The system also helps in continuous improvement in the overall performance
& efficiency of the company.
The Company lays great emphasis on proper management of human resources and believes
that this is the most important ingredient of continuous growth. Industrial relations
remained cordial throughout the year.
The statement in this report on Management Discussion & Analysis may be forward
looking statements within the meaning of applicable laws and regulations. Actual results
may be different than those expressed or implied. The Company undertakes no obligation in
respect of forward-looking statements, which may be amended in future on the basis on