Hyderabad Flextech Ltd merged Management Discussions

HYDERABAD FLEXTECH LIMITED ANNUAL REPORT 2008-2009 MANAGEMENT DISCUSSION AND ANALYSIS Industry Structure and Developments: Your Company is one of the few companies specialized in manufacturing flexible printed circuit boards in India. The flexible PCBs being sold by the Company in India is an import substitute. The PCB industry purely depends on electronic industry. The Electronic Industry is looking up and doing well giving a scope for PCB industry to expand. Opportunities and Threats: Spreading into domestic market, as an import substitute is a major opportunity for the Company. However due to fall in exports, there is a constraint on DTA eligibility. Therefore, the Company would have to make DTA sales by paying full Excise Duty, which is an additional burden on the margins. The company has been following this system through out the year under review. Segment or product-wise performance: Segment or product-wise performance is not required to be given as the Company has only one business segment and one product during the financial year under review. Outlook: The company is expecting to improve its prospects by concentrating on the domestic sales, which are encouraging comparatively. Risks and concerns: The machinery being Fourteen years old, requires thorough overhauling and replacement of certain high cost spares. Further, to be more cost effective, the plant needs to be modernized to match the latent technology. Internal control systems and their adequacy: The company has adequate internal control systems. Further, the Company also has independent internal auditors, who conduct periodical audit and their report is taken into account by the Management as well as the Statutory Auditors. Financial/operational performance: This has been already discussed elsewhere in this Report. Human Resources/Industrial Relations: The company enjoys very cordial industrial relations and there is very low employee/labour turnover in the company. You will be happy to note that ever since the inception of the Company, there were no strikes, lockouts, lay-offs, retrenchments, etc.