MANAGEMENT DISCUSSION AND ANALYSISIndustry structure and development
Our company was incorporated in August 1992 for setting up a modern seafood factory forthe processing and export of value added marine products to USA, the European Union andthe Far East.
Over the last decade the organized corporate sector has become increasingly involved inpreservation, processing and export of coastal fish. With the liberalized policy, fishprocessing sector has been attracting more foreign investment. ******
Countries to which a major portion of seafood is destined are becoming increasinglydiscerning and quality conscious. There is an all round realization at every level thatquality production of international standards is the watchdog for survival now. UniroyalMarine Exports Ltd was conscious about maintenance of quality from the very inception ofthe company and has fully geared to maintain quality right from the selection of the rawmaterial to that of the ingredients. We had already taken steps to upgrade the hygienicand sanitary conditions of the workers, plant and machinery so as to ensure quality of thefinished product.
Opportunities/Risks
Opportunities
1. Our Company has adopted IQF (Individually Quick Frozen) technology, ensuring highervalue addition in its production.
2. Proximity to main fish landing centers namely Beypore and Puthiyappa in NorthKerala.
3. Our Company enjoys the Green Channel Status for export of cooked product to USA andalso approval for export of IQF and Block fishery products to the European Union.
4. The cost control measures introduced by the management are being continued.
Risks/Threats
1. The Company is largely dependent on natural sea caught material. Availability of rawmaterial would depend upon the seasons.
2. Selling prices are governed by international market.
3. Export realization is affected by fall in Rupee Dollar Exchange Rate.
Internal Control System and their adequacy
Company has been maintaining adequate internal control systems commensurate with thesize and volume of the business with respect to the purchase of stocks, raw materials,(including components), plant and machinery, other assets and sale of goods. It alsoensures that all the assets of the company are adequately protected against loss and allthe transactions are properly authorized, recorded and reported. The Internal ControlSystem is supplemented by Internal Audit conducted by a Chartered Accountant.
Financial Performance
The financial result of the company during the year under review was satisfactorydespite shortage of raw materials.
As the company is engaged in processing of marine products only, segment wise analysisis not significant.
Industrial relation and human resource management
Your Management firmly believes that success of any organization comes from good humanresources. Employees are considered as important and valuable assets of the organizationand key to its success. Total number of employees directly employed by the company was 83.
Cautionary Statement
Statement given in this section describing the company’s objectives, projection,estimates, and expectations may be "forward looking statements" based on thepresent environment, rules and regulations. The actual result could differ materially fromthose expressed or implied. The important factors that could make a difference amongothers are economic situation affecting demand and supply, price fluctuation both indomestic and international markets in which the company operates, changes in Govt.regulations, consumer taste, tax laws, other statues and other incidental factors. Thecompany assumes no responsibility to publicly amend, modify or revise any of theforward-looking statements on the basis of any subsequent developments or events.