tamarai mills ltd Management discussions

TAMARAI MILLS LIMITED ANNUAL REPORT 2007-2008 MANAGERIAL DISCUSSION AND ANALYSIS A. INDUSTRY STRUCTURE AND DEVELOPMENTS: Textile industry can be broadly classified as Spinning, Weaving, Knitting and Processing. Spinning industry has relatively modernised in India, compared to Weaving and Processing and internationally competitive. Government is making efforts to modernize Weaving and Processing industry through various measures to make it internationally competitive. B. SWOT ANALYSIS FOR THE COMPANY: Report under this head is not feasible for the reasons mentioned in the future outlook. C. PRODUCT WISE PERFORMANCE: Yarn: Yarn sales were less by 33.37% due to the spinning units were mainly doing job work. Fabrics: Fabrics sales increased by 2.68%. D. OUTLOOK: With the Strategic Investor Silverstar Communication Ltd bringing in funds to settle the OTS of all the secured lenders, the net worth of the company turned positive and BIFR in their hearing dated 30.10.2007, declared that the company as out of the purview of BIFR. The company passed a resolution by Postal Ballot for disposal/lease of whole or substantially whole of the undertaking on 23.1.2008. Accordingly, the company has disposed of the machineries in Coimbatore after closing down the operation in January, 2008. With power shortage, the units at Sivaganga and Thirumangalam could not be operated to its full capacity. E. INTERNAL CONTROL SYSTEMS: The Company has clearly laid down policies, guidelines and procedures that form part of the internal control system which provide for automatic checks and balances. The internal auditor reviews the effectiveness and efficiency of these systems to ensure that all assets are protected against loss and that the financial and operational information is complete and accurate.