ECE Industries Ltd Management Discussions.
INDUSTRY STRUCTURE AND DEVELOPMENTS
Main segments of companys activities relate to manufacture and sale of Equipments for Power & Distribution Transformers and Elevators.
OPPORTUNITIES & THREATS
There is strong need to revamp and revitalize the power and distribution system of the Country. Poor realization from State Electricity Boards and increasing cost of finance and raw-material resulting in lower income.
The business segments of the company i.e. "Equipment for Power Transmission and Distribution" & "Elevator" accounted for 76.41% and 23.59% of the gross turnover respectively in the year 2017-18.
A. Business Segment - Equipment for Power Transmission and Distribution
(after depreciation and before interest & exceptional items)
B. Business Segment - Elevators :Rs :n :a:(h)
(after depreciation and before interest 8i exceptional items)
Your company focuses on quality manufacturing of transformers and expects to get more orders in coming years.
Improve designs and cost reduction techniques will help us to gain more in coming years. Adoption of global trends
in Elevator business which include energy efficient safe and reliable equipment manufacturing by your company help
us to gain more market share
RISKS AND CONCERNS
1. Fixed Assets of the Company i.e. Buildings, Plant and Machinery, Office equipments, Furniture 8i Fixtures and Vehicles are insured with a view to minimize the risk in case of fire and loss of profit.
2. Current Assets of the company i.e. Raw Materials, Work-in-Progress, Stores 8i Spares and Finished Goods are insured to minimize the risk.
3. The Company has taken cash/cash in transit insurance cover to safeguard itself from any theft/ burglary.
4. The Company has also kept its activities reasonably diversified in terms of products and locations with a view to minimize the risk.
5. The Company is having in-house Research 8i Development abilities to cater the needs of technological changes in the market and to upgrade its products.
6. To plug the operational hazards, the Company has vast base of suppliers to procure continuous supplies of raw material from its local and foreign suppliers.
7. The Company hedges its risk of fluctuation in foreign currency while taking loan from banks.
8. Keeping in view the size and infrastructure of the company, it is felt that the existing arrangement of Risk Management is reasonably sufficient.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
ECE has an internal control system that is geared towards achieving efficiency in operations, optimum utilization of resources, effecting monitoring and compliance with all applicable laws and regulations. A program of internal audit by an Independent firm of Chartered Accountants is reviewed by Management and documented policies, guidelines and procedures, supplements the internal control systems that are designed to ensure reliability of financial and all other records to prepare financial statements and other data and to maintain accountability of assets.
FINANCIAL REVIEW AND ANALYSIS
(Rs. in Lakh)
|Turnover (Net of Excise Duty)||26002.52||26058.62|
|Profit / (Loss) before Depreciation, Exceptional Items and Tax||5267.92||675.76|
|Gain from Exceptional Items||1169.44||2251.97|
|Profit before Tax||6260.07||2714.66|
|Income Tax including Deferred Tax (Charge) / Credit||49.61||23.66|
Other Income mainly consists of interest, dividend, investment profits, royalty, rent & license fee and liabilities / bad debts / provisions written back etc.
HUMAN RESOURCES DEVELOPMENT
ECE recognizes the need of training & development on regular basis. Continuous learning by individuals is necessary for the organization. It provides opportunity, appropriate working environment and scope to develop the younger
For and on Behalf of the Board of Directors
|Place : Kolkata||(Prakash Kumar Mohta)||(Shiban Ganju)|
|Dated : 22nd August, 2018||Managing Director||Director|