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The statements made in this Management Discussion and Analysis Report describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable laws and regulations. Actual results may differ from such expectation whether express or implied. Several factors that could make significant impact on the companys operations include global and supply conditions, input availability and prices, changes in Government regulations, foreign policy, foreign currency, tax laws, economic developments within the country and other factors.
INDUSTRIAL STRUCTURE AND DEVELOPMENT:
Your company is an Export House recognized by Government of India, Ministry of Commerce & Industries and main business of handicrafts like Glass Beads, Necklaces, Imitation Jewellary in indigenous and Export market.
OPPORTUNITIES & THREATS:
The companys product is fashionable items and appreciated in International and indigenous market. Thus there are opportunities for doing more business in this line. But last three four years downfall in fashionable items in International market going on and China has also picked up much share in the market due to their unbelievable low pricing patterns. Thus not only competition has increased but also the Company is forced to reduce price under pressure and to offers to sell its products at un remunerative prices. The fluctuation in foreign currency price also affected the profit of the Company. The management has taken appropriate steps to meet the threats and making extensive efforts on quality control, cost reduction and widen its marketing network. We hope in coming years Company will able to compete price with China.
The Companys main business is Manufacturing and export of Handicraft items like Glass Beads; Neckleces, Imitation Jewellary etc.. All those items form just one Segment. As the company has its commercial activity mainly at Varanasi, hence separate geographical segment wise reporting is not required.
FINANCIAL / OPERATIONAL PERFORMANCE:
|(Rs. in lacs)||(Rs. in lacs)|
|Revenue from Operations||2377.92||2732.46|
|Net Profit Before Taxation||231.82||281.06|
|Net Profit after taxation||138.28||166.89|
|Balance of Profit & Loss Account B/F||1296.06||1174.06|
|Transfer to General Reserve||0.00||15.00|
|Tax on Dividend||13.51||7.07|
|Taxes of earlier Years||0.19||22.82|
|Balance of Profit & Loss Account C/F||1354.28||1296.06|
The Company is developing new items/products through imported machines and getting order on the basis of same and in coming years demand of company products will be increased in international and indigenous market. During the year company has participated in Foreign Trade Fairs mainly held in Hong Kong , Germany, Argentina, Middleast and other countries.
RISK & CONCERNS:
The main business of your Company is Export business, continuous down fall last three four years in international market is major concern for your company.
Any further change in duty drawback, DEPB and Exchange Rate policies would have a direct effect on the profitability of the Company. The management of your Company is hopeful on offsetting any adverse impact by better management abilities.
INTERNAL CONTROL SYSTEMS AND ITS ADEQUACY:
The Company has developed adequate Internal Control Systems, commensurate to its size and business, which are aimed at achieving efficiency in operations, effective monitoring and optimum utilisation of resources. The Company has appointed Internal auditors to conduct the Internal Audit work. The reports of the Internal Auditors are periodically reviewed by the Audit Committee. The Company has been accredited with ISO 9001:2008 and follows the prescribed parameters.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
Despite of taking all efforts during the financial year total turnover has decreased to Rs. 2283.29 lacs in comparison to Rs. 2569.27 lacs..
MATERIAL DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:
Labour relations have been cordial with no interruption of manufacturing activities. The total number of permanent employees of the company 236 employees as on March 31, 2018 and out of which 92 women employees are working.
DISCLOSURES BY SENIOR MANAGEMENT PERSONNEL (I.E) ONE LEVEL BELOW THE BOARD INCLUDING ALL FUNCTIONAL HEADS:
None of the Senior Management personnel has Financial and Commercial transaction with the Company, where they have personal interest that would have a potential conflict with the interest of the Company at large.
The financial statements of the company (Banaras Beads Limited) are prepared in compliance with the Companies Act, 2013 and in accordance with Indian Accounting Standards (Ind. AS) .
The statement of profit and loss for the year ended March 31, 2018, balance sheet as at March 31, 2018 and the cash flow statement for the year ended March 31, 2018 read with statements annexed thereto are more relevant for understanding the performance of the company.
|For BANARAS BEADS LTD.|
|Place : VARANASI||(Ashok Kumar Gupta)|
|Date : 31.05.2018||Chairman & Managing Director|