layla textile and traders ltd share price Management discussions

BUSINESS ENVIRONMENT INDUSTRY OVERVIEW, RISKS AND CONCERNS

Layla Textile and Traders limited (Formerly known as Haricharan Projects Limited) is mainly into Textile Business and engaged in trading activities. The Company main activities are trading into textiles related items. The Company is exploring various options to improve margins of the Company, by having tight control on expenses & exploring various business activities. Chinese products had flooded our markets which has impact on every Indian Companies.

Despite various adverse factors we firmly believe that Indian economic will grow and hence the growth of textiles sector presents us with exciting opportunities like Indias long-term growth story remains intact notwithstanding declining growth in the past year or two. This presents vast opportunities for us to grow our businesses in the medium to long term, though short-term pain remains a possibility. We further believe the policy liberalization and forward-looking regulatory changes will help markets grow in size.

While positive Government policies and regulatory changes do enlarge the scope of opportunities for textiles sector companies, lack of or delay in reforms or certain regulatory changes can significantly impact the performance or make an existing business model unviable. The growth in the sector is very good and Management expects better results in forth coming year. The Company is targeting lower segment of the market, where the margins are low but there is huge market as Tier II & Tier III cities are more sensitive to prices, but they are also looking to various international brands. The company is slowly progressing towards becoming a one stop shop for all the retailers. The company is planning to venture into trading of other merchandise products through the existing chain of Whole sellers and retailers & for its expansion it has shifted its registered office from Kolkata to Mumbai during the year, as it can cater to various parts of the country easily. Moreover, Mumbai based Company carry better image & Mumbai is gateway to India & for international market.

PERFORMANCE REVIEW

Inspite of decline in economic growth, demonetization, European crisis during the year, the Company has been able to maintain its profitability corresponding to last year, even though there was slight decline in the revenue, because various cost control exercise implemented during the year.

INDUSTRY OVERVIEW:

The Indian economy started to pick up but demonetization has affected every sector in the Country. The Company is into trading of textiles products in India, but on account of tough competition from Chinese Companies & other Indian Companies, there has been decline in the profit margin in our products. Hence the Company decided to do trading activities in commodities & other various options it is exploring to maintain its track record. The trading activities are also lucrative business activities, wherein Company has concentrated in India. The Company is entering into entertainment sector, as the present Managing Director has tremendous experience, contacts, skill, knowledge in the media sector. The media sector is also growing throughout the country & world as apart from Television, theatres, online segment is catching very fast & cost factor in web based serials are comparatively cheaper.

ADEQUACY OF INTERNAL CONTROL:

The Company has robust internal control systems in place which are commensurate with the size and nature of the business. The internal controls are aligned with statutory requirements and designed to safeguard the assets of the Company. The internal control systems are complemented by various Management Information System (MIS) reports covering all areas. Increased attention is given to auto generation of MIS reports as against manual reports to take care of possible human errors or alteration of data. The Management reviews and strengthens the controls periodically.

HUMAN RESOURCE DEVELOPMENT

During the year, the Company continued its efforts to strengthen its HR policies and processes to attract and retain the best talent in the industry. The Company believes in acquisition, retention and betterment of talented team players.

PERSONNEL

Cordial Industrial relations continue to prevail thereby further strengthening employees commitment to the growth of the Company. The Board wishes to express its deep appreciation to all sections of the Employees for their whole hearted efforts, co-operation and outstanding contribution to the growth of the Company during the year.

Particulars of employees as required under the provisions contained in Rule 5(2) and rule 5(3) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 form part of this Report. However, the information is not being sent alongwith the Annual Report as per proviso of the above rule. Any shareholder interested in obtaining such particulars may write to the Company at its Corporate/Registered Office.

SEGMENT-WISE PERFORMANCE

The Company is into single reportable segment only

COMPLIANCE

The Compliance function of the Company is responsible for independently ensuring that operating and business units comply with regulatory and internal guidelines. The Compliance Department of the Company is continued to play a pivotal role in ensuring implementation of compliance functions in accordance with the directives issued by regulators, the Companys Board of Directors and the Companys Compliance Policy. The Audit Committee of the Board reviews the performance of the Compliance Department and the status of compliance with regulatory/internal guidelines on a periodic basis.

New Instructions/Guidelines issued by the regulatory authorities were disseminated across the Company to ensure that the business and functional units operate within the boundaries set by regulators and that compliance risks are suitably monitored and mitigated in course of their activities and processes.

CAUTIONARY STATEMENT

Investors are cautioned that this discussion contains statements that involve risks and uncertainties. Words like anticipate, believe, estimate intend, will, expect and other similar expressions are intended to identify "Forward Looking Statements". The company assumes no responsibility to amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events. Actual results could differ materially from those expressed or implied.

For and on behalf of Board of Directors

Sd/-

Rajesh Harish Gouri

Managing Director

DIN: 01735907