vintage cards creations ltd Management discussions

VINTAGE CARDS AND CREATIONS LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSIS Pursuant to Clause 49 of the Listing Agreement, MDA forms part of this report and is as follows: A. Industry Structure And Development: The Company has discontinued with its Company owned stores. There are plans to sell through the organized retail arena and other channels of distribution where there would be better reach to customers. B. Future outlook: a) Sales and marketing: The company continues with its own distribution and deals directly with the corporate and institutions. b) Cost saving: The Company continues to focus on reducing the cost of goods, as well as, the non-product cost. C. Segment wise, Product wise Performance: The Company continues to operate in a single business segment of greeting cards and gifts mainly in India. Therefore, there are no reportable business and geographical segments. D. Internal control system and their adequacy: The company has adequate Internal Control system to safeguard all assets of the company and detect fraud or irregularities, if any. The Internal Control systems are designed in such a way to ensure reliability in financial records and other records for preparing financial information. E. Risk and concerns: The Company proposes to institutionalize the Risk Management framework to effectively, identify, assess & manage risk through an appropriately designed and strictly enforce system of risk controls. These controls would promote efficiency and reduce risk of losses and also provide a reasonable assurance on the reliability of financial statements and compliance with laws and regulations. F. Material development in Human Resources including number of people employed: The company has a total of 6 employees and company has had cordial employee relations. G. Financial and Operational performance: During the year, the total income was Rs.16.84 Lacs which is lower as compared to previous years income of Rs 93.95 Lacs; the directors are unable to recommend any dividend in view of absence of profit for the period under review. Corporate tax: Since the Company has not generated any taxable income for the period; no provision for taxation has been made in the books of accounts.