Legacy Mercantile Ltd Management Discussions.
INDUSTRY STRUCTURE, DEVELOPMENTS, OPPORTUNITIES AND THREATS
Our Company is involved in trading of various textile products and also bulk trading. The choice of products is basically based on demand and current prevailing trends in the market. We face competition from various domestic and international traders of manufacturers of suitings and shirtings. Our Company carries on the Business as Manufacturer, traders, buyers, sellers, factors, importers, exporters, distributors agents, brokers, stockiest, commission agents and dealers of textile, fabrics, cotton, silk, jute, woolen, garments, yarns, synthetics goods, fibrous materials and allied products including decorative hand and machine-made readymade garments, carpets and carpet backing, durries, mats, rugs, namdas, blankets, shawls, tweeds, lines, flannels, beds spreads, quilts, scarfs, belts, woven bags, tapestry and all other articles of silk, cotton, woolen, jute and worsted materials and all sorts of apparels, dressing material, mixed, blended products, nylon, polyester, fibres, yarn, yarn and sewing thread, hosiery and mixed fabrics, natural silk fabrics, and leather garments of all kinds including all kinds of commodities. To carry on the business of packing, grading, crimping, twisting, texturing, bleaching dyeing, printing, mercerizing or otherwise processing yarn, cloth, carpets, blankets and other textile goods, whether made from cotton, jute, wool, silk, art silk, synthetic and other fibers or blends thereof.
RISK AND CONCERNS
Substantial portion of our revenues has been dependent upon our few clients. The loss of any one or more of our major clients would have a material adverse effect on our business operations and profitability. Any problems faced by our suppliers in their manufacturing facilities resulting in delays or non-adherence to quality requirements could adversely impact our ability to meet our customers requirements. We will face significant competition from existing players and potential entrants in the industry. Our revenues could get affected adversely in case we are not able to secure new customers and orders.
INTERNAL CONTROL AND THEIR ADEQUACY
The company has adequate internal control systems and procedures commensurate with the size and nature of business. The Company has proper system of disposal of assets of the company. Significant financial, managerial and operating information is accurate, reliable and is provided timely. All internal policies and statutory guidelines are complied with.
Material development in Human Resources and Industrial Relation front, including no. of people employed.
Industrial relations remained cordial and harmonious during the year under review and there was no working day loss due to any adverse activities.
Statement in the management discussion and analysis describing the companys objectives, estimates, projections and expectation may be forward looking statements within the meaning of applicable laws and regulations. Actual results could differ materially due to economic conditions effecting demand, supply, prices, change in government policies, tax laws and other incidental factors.