archon industries ltd Management discussions

MANAGEMENT DISCUSSIONS AND ANALYSIS REPORT

Management Discussion & Analysis report for the year under review as stipulated under clause 49 of the Listing Agreement with the Stock Exchanges is as follows.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

(Within the limits set by the Company’s competitive position)

(i) Industry structure and developments:

The Company engaged in the manufacturing of Agriculture, implements and equipment and same is substantially depends on the agriculture growth in the country. Past Year Shows substantially Growth in Agriculture along with other industry.

(ii) Opportunities and Threats

The Impact of support from the Central and State Government in the Agree-Sector along with the private investment in the sector has provided the boost to the agriculture Activity during the year and it is set to grow in Expected line. Outlook for the Year 2013 is Positive. The company expect the pressure on Quality Customer to continue due to competition

(iii) Segment Wise- Product wise performance

The business of the company falls under a single segment i.e. For the purpose of accounting standard.

(iv) Outlook

The Continual growth in the Agriculture sector expected to give necessary support to the industry. The company is making all effort to accelerate the growth of its business. It is expected to improve its position in the market by focusing in in the technologically advanced and more profitable Product and market segment and working aggressively in the area of productivity, efficiency and cost reduction.

(v) Risk and Concerns:

the main risk factor in the agri and related industries is the availability of rain and the other change in the climate condition . Supprt to the industry from the government and local bodies also creates lot of changes in the sector. Company being an existing player in the market have substantial market stability for the products manufacturing by it.

(vi) Internal Control systems and its adequacy

The company has internal control systems, the adequacy of which has been reported by its auditors in their report as required under the Companies (Auditor’s Report) Order 2003.

(vii) Discussion on financial performance of the Company with respect to operational performance. The company did not do well due to first year of its diversified activity in the field of F & O segment trading still company is confident to repose the satisfactory performance in the coming years.

(vii) Material developments in Human resources / industrial Relations front , including number of people employed There has been no material development on the Human Resource/ Industrial Relations front during the year. Relations between the management and the staff continued to remain cordial.

(Viii) Cautionary Statement

This report contains forward- looking statements based on the perceptions of the Company and the data and information available with the company. The company does not and can not guarantee the accuracy of various assumptions underlying such statements and they reflect Company’s current views of the future events and are subject to risks and uncertainties.

Many factors like change in general economic conditions, amongst others, could cause actual results to be materially different. The Company does not assume any obligation for such variations.

CORPORATE GOVERNANCE REPORT

Your company is committed to maintain the highest standard of Corporate Governance. Your Directors adhere to the requirements set out in Clause 49 of the Listing Agreement with the Stock Exchanges. Report on Corporate Governance as stipulated in the said Clause is annexed as Annexure – A hereto and forms part of this Report.

Certificate from the Practicing Company Secretary, M/s JKC & Co., Company Secretaries, confirming compliance of conditions of Corporate Governance as stipulated under Clause 49, is also annexed to the Report on Corporate Governance.

ACKNOWLEDGMENTS

The Board of Directors of Company convey their sincere appreciation and gratitude to their Employees, Bankers, Shareholders, Customers and various agencies for their continued support and cooperation to the company.

Date : June 28, 2013	By Order of Board of Directors
Place : Ahmedabad	For MAHESH AGRICULTURAL IMPLEMENTS
	AND STEEL FORGINGS LIMITED

 

SD/-	SD/-
Managing Director/Director	Director