ncl research and financial services ltd share price Management discussions

The management of Mewar Polytex Limited present the analysis of performance of the Company for the year 2015-2016 and its outlook for the future. This outlook is based on assessment of the current business environment. It may vary due to future economic and other development both in India and abroad.

Financial Performance/Operational Performance:

The Company is engaged in manufacturing of coated and uncoated HDPE/PP woven fabric and sacks.

During the year under review the Company has been able to achieve a turnover of Rs. 6816.52 Lacs as against the turnover of Rs. 5563.08 Lacs during 2014-2015, an increase of22.53%.

The Net Profit after tax was at Rs. 288.58 Lacs (Previous Year Rs. 188.61 Lacs) is after providing for interest of Rs 22.83 Lacs (Previous Year Rs. 51.42 Lacs) and Depreciation of Rs 124.57 Lacs (Previous Year Rs. 112.82 Lacs) increases by 53.00%.

Above Net profit aftertax excludes profit due to Extraordinary items i.e reversal of focus product which amounts to Rs. 22.30 lacs during financial year 15-16 (Previous Year-NIL).

Outlook

The Company’s main approach will be to utilize all its resources, with improved and more effective management practices to get the large share of the market. The Company is also placing heavy emphasis on increasing customer satisfaction and goodwill. The Company’s long-term objective is to emerge as global player in HDPE/PP woven market.

The customers today take quality and prompt delivery from suppliers as essential requirement. Price is very important factor in choosing a supplier. This represents an opportunity for your Company to grow. We have a reputation for good quality and prompt delivery. We have also reduced costs substantially. We are therefore, able to offer attractive prices to our customers.

Internal Control System and its Adequacy

The Company is following a proper and adequate system of internal control in respect of all its activities including safeguarding and protecting its assets against loss from unauthorized use or disposition. Further all transactions entered into by the Company are duly authorized, recorded and reported correctly.

The internal control system is supplemented by an extensive programme of audit, reviews by management and established policies, guidelines and procedures. The system are designed to ensure that the financial and other records are reliable for preparing financial statements and other data and for maintaining accountability of assets.

Business Risk Management

Although the company has long been following the principle of risk minimization as is the norm in every industry, it has now become a compulsion.

Therefore, in accordance with SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 the Board members were informed about risk assessment and minimization procedures after which the Board formally adopted steps for framing, implementing and monitoring the risk management plan for the company.

The main objective of this policy is to ensure sustainable business growth with stability and to promote a pro-active approach in reporting, evaluating and resolving risks associated with the business. In order to achieve the key objective, the policy establishes a structured and disciplined approach to Risk Management, in order to guide decisions on risk related issues.

In today’s challenging and competitive environment, strategies for mitigating inherent risks in accomplishing the growth plans of the Company are imperative. The common risks inter alia are: Regulations, competition, Business risk, Technology obsolescence, Investments, retention of talent and expansion of facilities.

Business risk, inter-alia, further includes financial risk, political risk, fidelity risk, legal risk.

As a matter of policy, these risks are assessed and steps as appropriate are taken to mitigate the same.

Material Development in Human Resources/Industrial Relations Front

In order to develop the human resources, emphasis has been strengthened with a well-structured module at the in-house training center. There is good response to the system, which is constantly reviewed and upgraded, integrating the individual and the plant requirements.

The Performance appraisal system maintains the transparency and enhances the efficiency of the employees; thereby utilizing their potential up to the maximum possible level. Based on this appraisal system the good performers are suitably rewarded.

The relationship with the workers/employees remained cordial during the year.

Cautionary Statement

Statements, made herein describing the Company’s expectations of predictions, are "forward looking statement". The actual results may differ from those expected or predicted. Prime factors that may make a difference to the Company’s performance include market conditions, input cost, government regulations, and economic development within and outside the country.

Readers are cautioned not to place undue reliance on the forward looking statements.