bafna spinning mills exports ltd Management discussions

Pursuant to Regulation 34 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 a Report on Management Discussion and Analysis is given below:

a) Industry Structure & Development and Challenges:

The company was not able to make profit during the year and as the recession is continuing to affect the industries all round the company is also affected. It is expected that the company would in near future, would make profits to offset the losses incurred and on the path of recovery and for that the company has taken several measures.

b) Outlook, Opportunities and Threats:

The company is likely to start its main business activities in the near future and as the textile business which was its core activity but due to the present conditions prevailing the directors feel that the company should continue in its present activity for some more time. However the directors are hopeful they would start the core business in near future.

c) Discussion on Operational & Financial Performance:

During the year under review your Company has earned the total Income of Rs. 11.59 Lakh as compared to Rs. 22.71 in the previous year and similarly the Profit after tax (PAT) for the current year has increased to Rs. 0.64 Lakh as against the Profit after tax (PAT) of Rs. 0.43 Lakh of the previous year.

As the company has not started its core business activities properly, therefore the Company has currently dealing in activity of the online trading of the share and securities along with its a main business activity and interest from Bank.

d) Internal Control System & Their Adequacy:

The company has a good system of internal controls in all spheres of activities. The internal control is supplemented by effective internal audit being carried out by an external firm of Chartered Accountants and Company Secretaries. The effective steps to implement the suggestions/ observations of the Auditors are being taken and monitored regularly. In the opinion of the Board, an effective internal control system adequate to the size of the Company exists.

e) Risk Management:

Risk management is an integral part of the Companys business process. With the help of experts in this field, risks are carefully mapped and a risk management framework is evolved. Pertinent policies and methods are set forth to mitigate such risks. The Company has taken several measures at all its properties to beef up its security preparedness. In addition to the physical security measures, the Company has also taken adequate insurance cover to meet financial obligations which may arise from any untoward incidents.

f) Human Resources & Industrial Relation:

As the company has not started its core business activities however it is continues to lay emphasis on developing and facilitating optimum human performance and maintained the cordial relation between them.

g) Trading Status On the stock exchange:

The Companys equity shares are listed and traded on over the Bombey Stock exchange Ltd (BSE limited) since got listed in 23^rd April 2015. h) Human Resource- The Biggest Competitive Edge

Your Company believes that its Employees are the backbone of the Company and the reason behind the position of your company are its Employees. The Company is in a continuous process of evaluating, training, motivating and rewarding its employees for their unstinted performance and contributions to the Company so that the Company also receives the same in future also.

i) Whistle Blower Policy:

The Company has a vigil mechanism to deal with instance of fraud and / or mismanagement, if any. The detail of the policy is posted on the website of the Company.

j) Cautionary Statement:

Statements made in the report, including those stated under the caption "Management Discussion and Analysis" describing the companys plans, projections and expectations may constitute "forward looking statements" within the meaning of applicable laws and regulations. Actual results may differ materially from those either expressed or implied.