INDIA INTERNATIONAL MARKETING CENTRE LIMITED
ANNUAL REPORT 2007-2008
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE & DEVELOPMENT:
The export logistic services like offices/showrooms, permanent display,
etc., created by this company at Rotterdam (The Netherlands) on sponsorship
from the Union Ministry of Commerce, Government of India, are essentially
an activity to facilitate exports from India. These services are offered to
Indian exporters to unable them to promote their products abroad and to
make off-the-shelf deliveries. The performance of this company is thus
linked basically with the state of the domestic and the world markets and
the profitability of exports to a level enabling Indian exporters to hire
our services at Rotterdam.
India is a leading producer of finished jewellery and polished stones.
Gemstone and jewellery represents the most significant specialist segment
of India retaining, accounting for a high proportion of total retail spend.
According to the Gems & Jewellery Export Promotion Council, the total
jewellery market in India is around USD 13 Billion of which diamond
jewellery make up around 20%. The segment is dominated by very small family
owned retailer and the total size of the market is difficult to measure.
Indian household have traditionally relied on a family jeweler to provide a
quality assurance. Consumer brand awareness is low. Most purchases take
place at festival period and to celebrate family rituals such as marriages
Now organized jewellery retailer are increasingly offering brand solution
to the demand for quality and value as consumers move away from traditional
OPPORTUNITIES AND THREATS:
The export from India have been rising since 2002 after having remained
sluggish for seven years after 1995 when the export logistic services were
created by this company at Rotterdam. The Indian exports have in fact shown
20% plus growth rates during the recent years. With the increase in export,
the Company perceives that there would be opportunities for the
infrastructure facilities created at Rotterdam. Due to increasing
improvement in Indian infrastructure facilities and competitive cost in
India; and rising infrastructure cost in Europe, the Company is facing
threat for its services at Rotterdam. In respect of domestic Sale of gems
and jewellery, vast opportunities are perceived on account of growth in
Indian Economy and increase in number of middle-class category persons as
well as their buying power. Overflodding of foreign branded products and
increase in price of gold may pose a threat to the industry.
SEGMENT WISE PERFORMANCE:
Finding not very bright prospects for our export logistics services at
Rotterdam, the company engaged itself more on domestic trade during the
year and made sales worth Rs. 2.13 Lakhs as against Rs.1.53 Crore In the
Due to rising cost of the infrastructure facilities in Europe, the outlook
for the export logistic services at Rotterdam is not very bright. The
Company forsee a good and bright future in retailing of gems and jewellery
business. The outlook is thus that of good days ahead.
RISK AND CONCERN:
The company's activities draw their sustenance and depend largely on the
market conditions. Any change in the market conditions, whether adverse or
otherwise, has the cascading effect on the working of this Company. Apart
from the normal business risks as generally apply to business organisation;
the company does not foresee any other serious area of concern. The company
has also no foreign exchange risk coverage due to its limited exposure.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:
The company has proper and adequate system of internal control to ensure
that all the asset are safeguarded against loss from unauthorized use or
disposition and that all transaction are authorisedly recorded and reported
correctly . Cross functional internal checks mechanism has been created to
ensure compliance of procedure. An audit committee headed by a non
executive independent director is in place to review the various areas of
the internal control system and take suitable remedial steps where
Your company is deeply concerned about the safety, welfare and training of
employees. Employee/employer relation were cordial throughout the year. As
at March 31,2008, the total number of employees stood at 3.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL
The details of the financial performance of the company are appearing in
the Balance Sheet, Profit &Loss Account & other financial statement etc.
Highlights for the financial year ended March 31, 2008 are as under:
Sales Rs. 1.80
Other income Rs. 0.32
Net Loss Rs.10.54