enchante jewellery ltd 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.