Blazon Marbles Ltd Management Discussions.
REPORT OF THE DIRECTORS
(A) Your company is in the field of producing, processing and dealing in all kinds of marbles, stones etc. The Company is undergoing tough condition due to stagnant Industrial Competitive environment. However the Directors hope to see soon recovery.
Opportunities are there but in liberalization and globalization scenario, large companies with multi-locational presence and financial capabilities will benefit. Most of small and medium sized companies have to struggle to remain competitive. Your company being in small-scale sector has decided to adopt a cautions approach. The company has good infrastructure and client base, which can be exploited to its advantage.
a. Growing competition from units having large capacities.
b. Availability of required funds to set up a new plant and to fund its working capital requirement may adversely affect its efforts to generate new business.
The Company has yet to adopt the latest technology plant but due to financial constraint the implementation is delayed. The company has so far achieved control over the cost and other expenses and better realization of the product. The company is looking for some strategic investor to provide resources to fund latest technology plant. There is a no progress so far.
(B) Internal Control System and their Adequacy:
The Internal Control System comprises of exercising control at various stages and is established in order to provide reasonable assurance for:
i) Safeguarding Assets and their usage,
ii) Maintenance of Proper Accounting Records and,
iii) Adequacy and Reliability of the information used for carrying on Business Operations.
The Managing Director handles most of the day-to-day functions. The Directors are regularly looking after all the key areas of the Operations. Additionally the Audit Committee is reviewing all Audit Plans with significant control over all the matters and issues, internal control etc.
(C) Industrial Relations and Human Resources Development:
The company is maintaining good employee relations and no man-days are lost during the year due to employees unrest.