Anjani Synthetics Ltd Management Discussions.
Your Directors have pleasure in presenting the management discussion and analysis report for the year ended on March 31,2019.
1. INDUSTRY STRUCTURE, DEVELOPMENT:
During the period under the review, the Company had been operating in Textile activities i.e. cloth processing.
The textile sector has always been an important part of peoples lives in India. The textile industry in India is one of the oldest manufacturing sectors in the country and is currently its largest. Textile machinery and accessories have been identified as core sectors under Make In India campaign there has not been any measures for this sector either today, 45% of textile machine accessories requirement is met by domestic producers & 55% through imports. The government has been pushing for indigenous production through Make in India campaign to bring down imports.
2. OPPORTUNITIES & THREATS:
The Government is committed to encourage the healthy growth of Capital Market for development of the Economy. While the government seems committed to reforms to address the challenges, political compromises and high populist spending in an election year will mean that tough decisions are more likely to be deferred. However, steps by RBI to stabilize the exchange rate by reducing liquidity support to the banking system will create a challenging environment for investments.
3. SEGMENT-WISE PERFORMANCE:
The Companys main business activity is textile and its related activities which fall under single reportable segment i.e. Textiles. The Company has majorly focused on quality, production and export.
The Company continues to explore the possibilities of expansion and will make the necessary investments when attractive opportunities arise.
5. RISK & CONCERNS:
The Company is exposed to specific risks that are particular to its business, including interest rate volatility, economic cycle, market risk and credit risk. The management continuously assesses the risks and monitors the business and risk management policies to minimize the risk.
6. INTERNAL CONTROL SYSTEMS & THEIR ADEQUEACY:
The Companys operating and business control procedures ensure efficient use of resources and comply with the procedures and regulatory requirements. There are adequate internal controls to safeguard the assets and protect them against losses from unauthorized use or disposition and the transactions are authorized, recorded and reported correctly.
The Audit Committee periodically reviews the internal controls systems and reports their observations to the Board of Directors.
The Directors have appointed M/s. Kamal M. Shah & Co, Chartered Accountants as the Internal Auditors of the Company for the FY 19-20.
7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONALPERFORMANCE:
During the year, the Company has recorded a turnover of Rs. 30779.20 Lacs as compared to Rs. 34623.17 Lacs in the previous year. The Company has made net profit of Rs. 300.10 Lacs as compared to Rs. 313.72 Lacs of the previous year after providing depreciation, tax, etc. for the year ended 31st March, 2019.
8. HUMAN RESOURCE DEVELOPMENT:
The Company believes that the human resources are vital in giving the Company a Competitive edge in the current business environment. The Companys philosophy is to provide congenial work environment, performance oriented work culture, knowledge acquisition / dissemination, creativity and responsibility. As in the past, the Company has enjoyed cordial relations with the employees at all levels.
The Company continues to run an in-house training programme held at regular intervals and aimed at updating their knowledge about issues.
9. CAUTIONERY STATEMENT:
Statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied.
|For and on behalf of the Board|
|For, ANJANI SYNTHETICS LIMITED|
|PLACE : AHMEDABAD||[VASUDEV S. AGARWAL]|
|DATE : 09.08.2019||CHAIRMAN & MD|