Management Discussion And Analysis
The Textiles Industry is facing the impact of slow global recovery in exports and inthe domestic front too, severely affected with the steep increase of raw material pricesof cotton by over 100% during the year.
As such, the outlook appears to be bleak unless the pressure is eased on cotton priceswith a normal monsoon and increased spending by consumers.
OPPORTUNITIES & THREATS:
With the Global Economic recovery expected to end over next few quarters, the generalopinion is of improved market conditions.
The domestic market is also expected to witness a reasonable growth with increaseddisposable income, especially among the middle class and also in the areas of hotels andhospitals.
The Company is taking initiatives to end the stalemate of illegal strike by the workmenand re-start the production, so as to tap the opportunity both in export and domesticmarkets.
INTERNAL CONTROL SYSTEMS AND ADEQUACY:
The Company has proper Internal Controls in place for safeguarding all its assets fromunauthorized use or disposal. Adherence to Internal Control Systems is ensured by detailedInternal Audit program so that the assets are correctly accounted for and the businessoperations are conducted as per laid down policies and procedures. However, the continuedillegal strike since December 2008, by the workmen is an impediment for carrying out suchinternal control effectively for the time being.
The Company has an Audit Committee of the Board of Directors, which meets regularly toreview, inter alia, risk management policies, adequacies of internal controls and theaudit findings on the various functions of different segments of the business.
The Company is optimistic to solve the current labour problems affecting theproduction. The Company is deliberating policies benefiting both workers as well as allthe stakeholders of the Company at the earliest possible.
HEALTH AND ENVIRONMENT:
Your Company recognizes environment protection and management as one of its highestpriorities and every effort is made to conserve and protect the environment. The Companyhas been involved in ensuring green surroundings in its industrial location.
Statement in this Management Discussion and Analysis describing the Companysobjectives, projections, estimates, expectations or predictions may beforward-looking statements within the meaning of applicable Securities Lawsand Regulations. Actual results could differ materially from those expressed or implied.
The Company assumes no responsibility to publicly amend, modify or revise any forwardlooking statements, on the basis of any subsequent development, information or events orotherwise.
|Registered Office: ||For and on behalf of Board of Directors |
|313-Midas, Sahar Plaza, J. B. Nagar ||P. M. Rao |
|Andheri (East), Mumbai 400 059 ||Chairman & Managing Director |
|Date : 10th August, 2011 || |