Brady & Morris Engineering Company Ltd Management Discussions.

BUSINESS OVERVIEW

Brady & Morris Engineering Co. Ltd. is a subsidiary of W. H. Brady & Co. Ltd. and started operations in 1946. Considered Indias premier manufacturer of Material Handling Equipment it has been bringing value to landscape of the countrys infrastructure. We represent leading Global its investors for over 60 years. The Company has a Pan India network of sales offices and dealers. Its Headquarters is in Mumbai and its factory is in Bareja, Gujarat. This Pan India presence allows the Company to service every corner of the country.

OPPORTUNITIES AND THREATS

While risk continues to dominate the business agenda, competition is becoming just as dominant a feature. Market volatility, pricing pressure, variations in market performance, demanding stakeholders all have contributed to a global economy that encourages competitive drive. The new policies being framed by the government of India for boosting the manufacturing sector, have certainly boosted our confidence however the result will take time to show up and shall see gradual progress.

The Companys strength lies in providing a complete Material Handling Solution and is involved in multiple projects in industries as varied as Steel, Cement, Power, Sugar, Chemicals, Mining, Water &Sewage Treatment and Defence.

The domestic market continued to be affected by, Macro economic problems, high inflation, petroleum product prices, interest rates and poor consumer sentiments, volatility in foreign exchange rates. In spite of all this, your company was able to sustain its market share.

OUTLOOK

Due to continuous efforts of management, the Companys performance during the year has been remarkably good. The board is hopeful of much better performance in the current year.

RISKS & CONCERNS

The Companys business is exposed to many internal and external risks and it has consequently put in place robust systems and processes, along with appropriate review mechanisms to actively monitor, manage and mitigate these risks.

The risks that may affect us include, but are not limited to:

• Economic Conditions.

• Inflation pressures and other factors affecting demand for our products.

• Increasing cost of Raw Material, transport and storage.

• Supplier and distributor relationships and retention of distribution channels.

• Competitive market conditions and new entrants to the market.

• Labour shortages and attrition of Key Staff.

• Compliance and regulatory pressure including changes to tax laws.

The Company is committed to manufacture and deliver quality products strictly as per requirement of the customer. Constant feedback from the customers is received and all efforts are made for continuous improvement in process performance and product quality wherever required. With established production, the Company is in a position to maintain production and supply of quality products smoothly. The Company has benefit of its long standing with its customers and can match the prices suitably as and when required. For the above reasons, no major threat is overseen and the Company is confident to face any threat from the competition.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company maintains adequate Internal Control Systems commensurate with the nature of its business, size and complexity of its operations. The internal audit functions of the company are carried out by a firm of Chartered Accountants. The scope and authority of the Internal Audit function is defined by the Audit Committee. To ensure independence, the internal audit function has a reporting line to the Audit Committee of the Board. The Internal Auditors monitors and evaluates the efficiency and adequacy of internal control system in the Company, its compliance with operating systems, Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.

The Audit Committee of the Board reviews the performance of the audit and the adequacy of internal control systems and compliance with regulatory guidelines. Significant deviations are brought to the notice of the Audit Committee of the Board of the respective companies and corrective measures are recommended for implementation. The Audit Committee of Board provides necessary oversight and directions to the internal audit function and periodically reviews the findings and ensures corrective measures are taken. This system enables us to achieve efficiency and effectiveness of operations, reliability and completeness of financial and management information and compliance with applicable laws and regulations.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Particulars 2018-19 2017-18 yoy growth
Net Turnover 4,448.53 2604.67 70.79%
Operational Profit (EBITDA) 472.18 (231.84) 303.67%
Profit before Tax 252.67 (113.38) 322.85%
Profit after Tax 207.27 (113.38) 282.81%

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

Your Company has focused on identifying internal talent and nurture them through the culture of continuous learning and development, thereby building capabilities for creating future leaders.

Talent is our most valuable asset and we believe that the ultimate identity and success of our Company lies in the excellent quality of our people and their commitment towards attaining our Organizational goal.

The Companys various employee engagement platforms and initiatives have resulted in a vibrant, productive and enjoyable work environment. A structured approach to career development, leadership development, internal job rotations, and mentoring helps employees grow their careers and realize their potential.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objective, projections, and expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied due to various risk factors and uncertainties. These risk factors and uncertainties include the economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in government regulations and policies that may impact our businesses as well as ability to implement our strategies. We are under no obligation to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information or events and assume no liability for any action taken by anyone on the basis of any information contained herein.