aankit granites ltd Management discussions

AANKIT GRANITES LIMITED ANNUAL REPORT 2011-2012 MANAGEMENT DISCUSSION AND ANALYSIS Operations & Performance: Production/Purchase for the year: 83,879 Sqm Dispatches for the year: 74,124 Sqm Sales Value for the year in Rs.: 8,60.95,438 Rs. Your Company continues to carry on its business with the focus on exports. As against the revenue of Rs. 7.53 Crores in the previous year, the Company has achieved overly revenue of Rs. 8.92 Crores. Operating profits increased from Rs 31.78 Lakhs to Rs 55.36 Lakhs. Global competition with supplies coming from China has been the primary concern and is responsible for reduced growth. The market in the United States seems to have shut its door for the granite products. Recession in Europe continues to haunt the granite industry with the vagaries of construction business. Having passed the most difficult situation in the past, your Directors are infusing all out efforts to ensure continued operations and look for better opportunities in the days to come. OUTLOOK: The exposure of the Management to the business being carried out by the Company and the experience earned by the Core Team coupled with the requisite infrastructure for operations, network of market globally, collectively constitute the unique core strength for your Company. Relentless efforts continued by the Company on implementing austerity measures and cost cutting uniformly. With uncertainties and global recession, your Directors will focus on achieving better profitability by garnering all the resources at their disposal. The Directors hope that the situation will change to offer the Company better market opportunities. INTERNAL CONTROL SYSTEMS: Your Company has in place adequate systems of Internal Controls which are commensurate with the size of its operations and it is properly designed to protect and safeguard the assets of the Company. There is a proper system for recording the transactions, which ensures that each transaction is properly authorized and executed according to the norms. Reorganization of some of the key positions was implemented during the year under report and your Directors are of the view that this will help the Company to great extent. INDUSTRIAL RELATIONS: Your Company continued to extend the training programmes at various levels in order to optimize the productivity. The Company continues to have about 160 personnel including casuals.