acil cotton industries ltd Management discussions

Company is mainly operating into the Steel & Ferrous Industry. The key issues of the Management Discussion and Analysis are given below.

(a) Industry Structure and Developments

Indian steel industry plays a significant role in the countrys economic growth. The major contribution directs the attention that steel is having a stronghold in the traditional sectors, such as infrastructure & constructions, automobile, transportation, industrial applications etc. Moreover, steel variant stainless steel is finding innovative applications due to its corrosion resistive property. India is the fifth largest steel producer at the global front and struggling to become the second largest producer in the coming years.

The country has acquired a central position on the global steel map with its giant steel mills, acquisition of global scale capacities by players, continuous modernization & up gradation of old plants, improving energy efficiency, and backward integration into global raw material sources. Global steel giants from across the world have shown interest in the industry due to its phenomenal performance. For instance - the crude steel production in India registered a year-on-year growth of 6.4% in 2017 and reached 66.8 Million Metric Tons.

The Company is operating in this sector on very small size and eventhough it is a small player in the market company had established its own customer base and distribution channel and have good market accep[tance.

(b) Strength

Highly qualified professionals under an efficient Board of directors gives the company an edge over the competitors and a team of executives is the major strength of the Company.

Company is known from its reputation which the company has earned due to its quality business and cordial relation with its clients and presently the company is trying to expand its business into other uncovered areas.

( c ) Comment on Current years performance

Receipts	• : The current financial year turnover is only 9.75 L only
Operating Expenses	: The operating Expenses are well under control.
Operating Profits	: There are no operating profit for the current year.
Indirect Expenses	: The Indirect Expenses are under control.
Depreciation	: Rs.0.09 Lacs is provided as depreciation
Profit before tax	:Company incurred net loss during the year.
Taxation	: Tax is no Provided.
Debtor/Sales	: Debtors are reasonable and realization period has decreased due to the policy of the Company.

d) Opportunities and Threats

We operate in a market characterized by swift changes and convergence. We face formidable competition in every aspect of our business; particularly from companies that seek to connect people across geographies. We do face stiff competition from other players in the market.

Your company however, has a well-integrated platform that will ensure we stay ahead of the curve. We are augmenting features and products to our existing products and own the complete value chain of products and services we address.

(e) Segment wise performance

The business of the Company falls under a single segment i.e. manufacture of steel and steel products for the purpose of Accounting Standard AS-17.

(f) Outlook

The Company is making all efforts to accelerate growth of its business. It expects to improve its position in the market by focusing on technologically advanced and more profitable products/market segments and working aggressively in the areas of productivity, efficiency and cost reductions.

(g) Risk and concerns

The market penetration by new entrants in the Companys business area and the strong hold of existing Big players in the market places hurdles in the growth path of the Company. However the company is aggressively using well talented employees and personal to establish new business areas and to develop existing market.

(h) Internal control system

Internal audit and other controls have been found to be adequate. These are reviewed periodically by the Audit Committee and found the performance satisfactory.

	BY ORDER OF THE BOARD OF DIRECTORS
	FOR ACIL COTTON INDUSTRIES LTD.
PLACE: VADODARA	Sd/-
DATE : 01/09/2017	NARESH N SHAH
	CHAIRMAN

AUDITORS CERTIFICATE ON CORPORATE GOVERNANCE

To

The Board of Directors,

ACIL COTTON INDUSTRIES LIMITED, VADODARA

We have reviewed the records concerning the Companys compliance of conditions of Corporate

Governance as stipulated in LODR,2015 for the F.Y ended on 31^st March 2017.

The compliance of Corporate Governance is the responsibility of the management. Our examination was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statement of the Company.

We have conducted our review on the basis of the relevant records and documents maintained by the Company and furnished to us for the review, and the information and explanations given to us by the Company.

Based on such a review to the best of our information and according to the explanations given to us, in our opinion, the company has complied with the conditions of Corporate Governance, as stipulated in LODR,2015.

On the basis of certificate issued by the company and the Minutes of meetings of the Shareholders/ Investors Grievance Committee of the Company, we state that, there were no investor grievances pending against the Company for a period exceeding one month.

We further state that, such compliance is neither an assurance as to the future viability of the Company, nor as to the efficiency of effectiveness with which the management has conducted the affairs of the Company.

	Mukesh Choksi & Co.,
	Chartered Accountants
	Sd/-
	(Mukesh Choksi)
Date : 01/09/2017	Proprietor
Place :MUMBAI	M.No.31751

CHIEF EXECUTIVE OFFICER (CEO) CERTIFICATION

To

The Board of Directors,

ACIL COTTON INDUSTRIES LTD.,

I, NARESH N SHAH, Managing Director of the Company, do hereby certify that:

1. I have reviewed the financial statements and the cash flow statement for the year 2016-17 and to the best of my knowledge and belief: a. These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading. b. These statements present a true and fair view of the Companys affair and are in compliance with existing accounting standards, applicable laws and regulations.

2. There are, to the best of my knowledge and belief, no transactions entered into by the

Company during the year which are fraudulent, illegal or in violation of the Companys Code of

Conduct.

3. I accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of internal control systems of the Company pertaining to financial reporting and we have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps I have taken or propose to take to rectify these deficiencies.

4. I have indicated to the auditors and the Audit committee: a. Significant changes in internal control over financial reporting during the year; b. Significant changes in accounting policies during the year and that the same have been disclosed in the notes to the financial statements; and c. Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an employee having a significant role in the Companys internal control system over financial reporting

	BY ORDER OF THE BOARD OF DIRECTORS
	FOR ACIL COTTON INDUSTRIES LTD.
	Sd/-
PLACE: VADODARA	NARESH N SHAH
DATE : 01/09/2017	CHAIRMAN

AUDITORS CERTIFICATE

To,

The Board of Directors

ACIL COTTON INDUSTRIES LIMITED, VADODARA

We have examined the attached Cash Flow Statement of M/S. ACIL COTTON INDUSTRIES LIMITED for the year ended on 31-03-2017. The Statement has been prepared by the Company in accordance with the requirement of LODR,2015 and is based on in agreement with corresponding Profit & Loss Account and Balance Sheet of the Company covered by the Report of 01/09/2017 to the members of the Company.

	Mukesh Choksi & Co.,
	Chartered Accountants
	Sd/-
	(Mukesh Choksi)
Date : 01/09/2017	Proprietor
Place :MUMBAI	M.No.31751