Enchante Jewellery Ltd Share Price Management Discussions
ENCHANTE JEWELLERY LIMITED
ANNUAL REPORT 2004-2005
MANAGEMENT DISCUSSION AND ANALYSIS
Overview:
The Company is engaged in the manufacturing and selling of gold and diamond
Jewellery. The Company has established its brand and has built up
considerable goodwill in the market for its branded Jewellery.
Economy and Business Outlook:
The Jewellery business in India is a Rs. 50,000 Crore business on account
of the role Jewellery plays in our culture, heritage, traditions etc. As
the size of our economy grows and the purchasing power of the Indian people
increases, the potential of the Jewellery business will continue to
increase.
Risk and Concern:
The principle difficulty faced by the company has been the paucity of
working capital on account of the default of the State Bank of India in
releasing the sanctioned and fully tied up working capital. The Company has
explained in detail the situation pertaining to the settlement with the
bank in the section FUTURE OUTLOOK in the Director report.
Internal Control Systems and its Adequacy:
The company has put in place necessary internal audit system commensurate
with its operations. Periodical checks are conducted and necessary remedial
measures are adopted.
Human Resources/Industrial Relations:
The industrial relations in the manufacturing units of the Company
continued to be cordial. The Companys workforce is being encouraged to
adapt to the fast changing environment and acquire necessary skills and
update their knowledge.
Pollution and Environment Control:
The Company has always paid highest importance to ensure that the
environment remains relatively pollution free. The work force is
continuously trained and coached in safety and are provided appropriate
safety equipment.
Adequate pollution control facilities are installed at the plants as per
guidelines of pollution control authority and are run as per set norms.
Cautionary Statement:
Statements in the Management Discussion and Analysis describing the
Companys objectives, projection, estimates, expectations maybe forward-
looking statements within the meaning of applicable securities law and
regulations. Actual results could differ materially from those expressed or
implied. Important factors that could make a difference to the Companys
operations, include, among others, economic conditions affection
demand/supply and price conditions in the domestic market in which Company
operates mainly, changes in Government regulation, tax law and other
statutes and incidental factors.