Clutch Auto Ltd Management Discussions

Annexure A to Directors Report

1. FINANCIAL PERFORMANCE OF THE COMPANY

• Turnover at Rs.46.53 Cr. in FY 2015-16 against Rs. 38.93 Cr. of previous year.

• Material consumption was at Rs.32.61 Cr in 2015-16 against Rs. 36.17 Cr of previous year.

• Employees Benefit Expense was at Rs.3.70 Cr in 2015-16 against Rs.5.81 Cr. of previous year.

• Depreciation for the year 2015-16 was Rs.10.01 Cr against Rs.19.22 Cr. of previous year.

• Financial Cost was Rs.159391 in 2015-16 against Rs.84272 of previous year.

• Net Loss incurred by the Company stands at Rs.47.27 Cr. in 2015-16 against Rs.180.74 Cr. of previous year.

II. SWOT ANALYSIS

Strengths-

• Sustained Brand leadership in a highly technology intensive industry.

• Commanding a strong hold in Aftermarket Dealership network in India

Weakness-

• Single manufacturing facility to be grown up to a full-scale integrated facility.

• Not being able to meet demands in present conditions.

Opportunities-

• Can garner larger market share from present level.

• Revival in Auto Industry will pent up the demand for the products of the Company.

Threat-

• Delay in revival in Auto Industry may hamper future growth.

• Low cost product from Un-organised Sector may eat Companys pie.

III. IPR PORTFOLIO

Although Company has multiple IPR Portfolio but is unable to harness benefits in the present Scenario.

IV. RISKS & CONCERNS

Lack of adequate liquidity is a bolt on companys profitability and to take the company to next level. Increased competition from Organised and unorganized sectors is also a matter of concern for the Company.

V. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Given the nature of business and size of operations, the Companys internal control system has been designed to provide for:

• Accurate recording of transactions with internal checks and prompt reporting

• Adherence to applicable Accounting Standards and Policies

• Compliance with applicable statutes, policies and management policies and procedures

• Effective use of resources and safeguarding of assets

VI. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT

Relationship with workers have remain cordial during the year under report.

VII. CAUTIONARY STATEMENT

Management Discussion and Analysis Report may vary subject to applicable rules & regulations within India & Overseas and also is subjected to National and Global Economic Environment.

	For and on behalf of the Board of Directors
Place: New Delhi	Vijay Krishan Mehta
Date: 18.10.2016	Managing Director