Asian Flora Ltd Management Discussions.
Floriculture Industry Overview:
Indian Floriculture Industry is largely dominated by unorganized small players. Off late Ethopia is supporting Floriculture in big scale with lot of incentives and infrastrucute support. Moreover with growth of economy and born in real-estate there has been lot of escalation in price of land and a availability of quality agriculture land at reasonable price is getting more and more difficult day by day. Hence the major player is moving to Africa.
The Flora industry is mainly a labor intensive industry as it provides livelihood to the huge population, mainly consist of unskilled workers, and thus plays a pivotal role in the development of any economy. As this particulars industry also corners under the basis necessities of human begins, it impacts a lot to the society as a whole. There has been increase in demand of flowers and Flower related products in last few decades globally, mainly due to rapidly changing social and economic structures of the countries worldwide.
Opportunities & Threats:
Your Company is engaged in the business of manufacturing and export of the Fresh Cut Flower which is seasonal product and has enormous demand during the seasons and it is a part of a growing sector that has potencial to sustain in the market even during the economic depression that is prevaling in the global economy. The management of your company is making all efforts in restating the commercial productions and finding new strategic investor and markets for the Companys products.
Internal Control Systems and Their Adequacy
The control system of the company consists of standard practices and processes appropriate audit program and risk monitoring system. The various initiatives taken by the company has led to further improvement in the control systems of the company. The Board of Directors has been entrusted with the responsibility of reviewing the findings and to take necessary actions wherever required.
The Commercial Production of the company has been stopped for the last several years due to unfavouable market condition. As Comoany is yet to settle secured loans, the Board of Directors are working out the various options for re-commencement of the Commercial Production and reviving the company and also to settle with the secured creditor.