MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE AND DEVELOPMENT
India is one of the most matured markets and with the huge population offers theautomotive industry a lucrative and substantial market. The automation in the industry hasalso opened up a growing market for metal forming , with the Companys productsseeing use in the transport industry.
Indias economic growth will present tremendous opportunities for growth inAutomotive Segment. Demand for auto components is directly related to that forautomobiles; hence, demand drivers for automobiles indirectly influence those for autocomponents.
Your Company has been strenuously working to ensure that this opportunity is convertedinto profitable growth by focusing on R&D activities innovation, design, andengineering activities to meet global quality standards and emerge as full-serviceproviders to OEMs and the domestic after-market.
Our Company has manufacturing centers all over India. Everywhere we have facedpressures due to (a) enormous power shortages (b) pricing pressures from OEMs, which inturn are entering into a phase of heightened competitive intensity (c) threat of risingraw material prices; (d) likely higher cost of funds consequent to hardening of interestrates; and (e) import from other low cost-locations. (f) Uncertainty arising from currencyvolatility. Such increases in the cost could reduce our profitability.
RISKS AND CONCERNS
The Company has put in place a risk management policy to identify the nature andmagnitude of risk associated with the Company and to take steps for mitigating the impactof such risks. These are reviewed periodically and placed before the Board.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has adequate internal control systems to monitor internal business process,financial reporting and compliance with applicable laws. The Company periodically reviewsthe adequacy and effectiveness of the control systems.
The Audit Committee at their meetings regularly reviews the significant observations ofthe compliance and other monitoring reports. The heads of various monitoring / operatingcells and statutory auditors are invited to attend the Audit Committee meetings
HEALTH, SAFETY, SECURITY ENVIRONMENT
The Company already has in place its own Safety System. Regular training is imparted tothe workers and staff at all levels. The increased focus on safety has resulted inimproved safety records at all our Plants and thus has improved the working environment.
HUMAN RESOURCES / INDUSTRIAL RELATIONS
Employer Employee relations continued to remain cordial during the year.Training and development of employees continue to be an area of prime importance. Thedevotion and commitment of our employees has enabled the Company to fulfill its targetsand deadlines in time. The total number of people employed in the Company as on 31stMarch 2012 was 2457
Risk Management is an integral part of the business process, with the help of experts,the Company mapped the risks at the business processes and enterprise levels and evolved arisk management framework. Mitigative measures have been identified in respect of thelatter. These would be periodically reviewed by the Board of Directors.
The Management Discussion and Analysis Report contains forward looking statements basedupon the data available with the Company, assumptions with regard to global economicconditions, the government policies etc. The Company cannot guarantee the accuracy ofassumptions and perceived performance of the Company in future. Therefore, it is cautionedthat the actual results may materially differ from those expressed or implied in thereport.
| ||By Order of the Board |
|Coimbatore ||B. VIJAYAKUMAR |
|28.04.2012 ||Chairman Cum Managing Director |