MANAGEMENT DISCUSSIONS AND ANALYSIS
New Approach of Management: The Company has introduced a three tier reporting
structure wherein the reporting by any individual employee in the organization is a single
reporting and not dual reporting. Clear job and reporting responsibilities have been laid
down for every employee, thus ensuring absolute clarity of job requirements from
the employee. Management is confident that this approach will lead to a higher
productivity per employee, thereby benefiting the company in the long run.
Opportunities and Threats: Your company's products enjoy good acceptance among the
various industrial applications. Yet, in the changing duty-tax structure regime it is
necessary that optimum margins be maintained to ensure that the company moves into profits
in the near future. Rest assured that the management of your Company is capable of
utilising every opportunity for the Company's benefit, while also addressing possible
threats, which could have a negative effect on profitability and turnover.
Outlook: Barring unforeseen circumstances, the company expects to better its growth
rate and try to improve profitability. The company will also continue to
provide high quality products to its esteemed customers. Risks and Concerns: High costs of
power and the continued high state duties being levied on certain products result in a
negative impact on the turnover of the company.
Financial Performance and Operational Performance: The financial performance of the
company has been less than satisfactory. The operational performance of the company has
improved in the current year. Review of Internal Control systems and their adequacy. The
company has an internal control system which, in the opinion of the management, is
commensurate with the size and the activities of the company.
Human Resource Development and Industrial Relations: The company continues
to maintain excellent industrial relations, while also ensuring human resource
development. Training and educational programs are conducted as per the requirements, to
improve efficiency and in turn, increase productivity of every employee. The company
believes that its employees are the real strength of the organization.
||FOR & ON BEHALF OF THE BOARD
||JITEN S. CHOKSEY
I, JITEN S. CHOKSEY, Director hereby declare that all the members of the Board
of Directors and have affirmed compliance with the code of conduct for the year ended 31st
March, 2012, in terms of Clause 49 of the Listing Agreement made with the Stock Exchange.
For & on behalf of the Board
Kumar Wire Cloth Manufacturing
JITEN S. CHOKSEY.
To the members of
KUMAR WIRE CLOTH MFC. CO. LTD.
We have examined the compliance of conditions of corporate governance by KUMAR WIRE
CLOTH MFC. CO. LTD., for the year ended March 31, 2012, as stipulated in Clause 49 of the
Listing Agreement of the said company with the stock exchange. The compliance of
conditions of Corporate Governance is the responsibility of the Management. Our
examination was limited to procedures and implementation thereof, adopted by the company
for ensuring the compliance of the conditions of the corporate governance. It is neither
an audit nor an expression of opinion on the financial statements of the company.
In our opinion and to the best of our information and according to the explanations given
to us, we certify that the Company has complied with the conditions of Corporate
Governance as stipulated in the above-mentioned Listing Agreement. We state that no
investor grievances are pending for a period exceeding one month against the Company as
per the records maintained by the Shareholders/ Investor Grievance Committee. We further
state that such compliance is neither an assurance as to the future viability of
the Company nor the efficiency or effectiveness with which the management has conducted
the affairs of the Company.
For M/S. AMAR BAFNA & ASSOCIATES
Chartered Accountants M. No. 048639
Date: 30th May, 2012.
I, JITEN S. CHOKSEY
Director of the Company hereby certify that:
We have reviewed the financial statements and the cash flow statement for the year
ended 31st March, 2012 and we hereby certify to the best of our knowledge and belief.
1. These statements do not contain any materially untrue or omit any material fact or
contain statements that might be misleading.
2. These statements together present a true and fair view of the Company's affairs and
are in compliance with accounting standards, applicable laws and regulations.
3. There are, to the best of our knowledge and belief, no transactions entered into by
the Company during the year ended 31st March 2012 which are fraudulent, illegal or violate
the Company's code of conduct.
4. We accept responsibility for establishing and maintaining internal controls and that
we have evaluated the effectiveness Of the internal control systems of the Company and we
have disclosed to the auditors and the Audit Committee those deficiencies, of which we are
aware, in the design or operation of the internal control systems and that we have take
the required steps to rectify these deficiencies. further certify that:
(a) There have been no significant changes in internal control during the year.
(b) There have been no significant changes in accounting policies during the year.
(c) There have been no instances of significant fraud of which we have become aware and
the involvement therein, of management or an employee having a significant role in the
Company's control system.
For KUMAR WIRE CLOTH MANUFACTURING COMPANY LIMITED
JITEN S. CHOKSEY
Date: 30th May, 2012.