Govind Rubber Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The company is engaged in manufacture of bicycle & auto tires and tubes and operations at factory in Ludhiana has been stopped due to paucity of working capital since March, 2018.

OVERALL REVIEW:

Company is under Corporate Insolvency Resolution Process under Insolvency and Bankruptcy Code, 2016 therefore powers of the Board of Directors has been suspended and application for resolution process under the Insolvency and Bankruptcy code, 2016, filed by one of the operational creditor before the Honble National Company Law Tribunal, Mumbai was admitted on 18th January, 2019 and CA Mr. Vishal G. Jain Insolvency Professional registered with IBBI, New Delhi as Resolution Professional. Further Committee of Creditors on 16.10.2019 approved the resolution plan (the Plan) submitted by Mr. Brij Bhushan Gupta and others, subject to approval of NCLT.

INTERNAL CONTROL SYSTEM AND ITS ADEQUACY:

The Company is following a proper and adequate system of internal controls in respect of all its activities including safeguarding and protecting its assets against loss from unauthorized use or disposition. Further all transaction entered into by the company are fully authorized, recorded and reported correctly.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Company has achieved a Gross Turnover and Operational Income of Rs. 266.73 Lakhs as compared to Rs.10911 Lakhs in the previous year. The Net Loss before depreciation and tax is Rs. 12583.61 Lakhs as compared to Net Loss before depreciation and tax of Rs. 3936 Lakhs in the previous year. The Net Loss for the year stood at Rs.12887.52 Lakhs as compared to loss of Rs. 3677.49 Lakhs in the previous year

MATERIAL DEVELOPMENT IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT:

The relationship with the staff & workers with all levels remained cordial during the year.

CAUTIONARY STATEMENT:

Statement in the Management Discussion and Analysis describing the Companys objectives, expectations, estimates or predictions may be forward looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement due to external factors. Important factors that could influence the Companys operations include global and domestic supply and demand conditions affecting selling prices of finished goods, input availability and prices, changes in Government regulations, tax laws, economic developments within the country and other incidental factors. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis, of any subsequent developments, events or information.