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The Management of Lexus Granito (India) Limited Presenting Management Discussion and Analysis Report covering the operational and financial performance of the company for the year 2017-18 the core business of the company is manufacturing, trading and marketing of vitrified ceramic tiles and wall tiles.
Our Company is promoted and managed by AnilkumarDetroja, Hitesh Detroja, Nilesh Detroja and Pavan Blackrock Private Limited. Our individual promoters manage and control the major affairs of our business operations. With their dedication and commitment, our Company has grown over a short span of time which is evidenced by the growth in our total revenue from Rs. 6,365.40 lakhs in FY 2012-13 to Rs. 18,438.517 lakhs in F.Y. 2017-18 and profit after tax from Rs.156.17 lakhs from F.Y. 2012-13 to Rs.699.83 lakhs in F.Y. 2017-18. It is the vision of our promoters which has been instrumental in defining the business strategy of our Company.
Our Company is engaged in manufacturing, trading and marketing of vitrified ceramic tiles and wall tiles for the domestic and international markets. Till date we were outsourcing manufacturing of wall tiles to third party manufacturers, however recently we have set up our own wall tiles manufacturing unit at our existing facility thereby integrating our operations and strengthening our routes in the industry. Our manufacturing facility is situated at Morbi, Gujarat and is spread over more than 4 hectares. Our manufacturing facility is well equipped with requisite plant and machineries and other facilities. We also have an in-house laboratory, enabling the company to develop new colours, besides facilitating conducting of tests and analysis of various products. Our quality system with respect to manufacture of our products has been ISO 9001:2008 certified. Further we have also been issued Certificate of Compliance by UK Certification & Inspection Ltd for our quality systems covering the design, manufacture and final inspection of the products. We manufacture and market our products under the brand name Lexus.
The Company has carved a niche for itself in the industrial shoe/ uppers segment both internationally and in the domestic market. The quality of the Companys products and services provided is well recognized. Embarking on this strength we are constantly working towards expanding the market for Companys products to other countries apart from our present work areas.
RISK & CONCERNS
To sustain and grow in global market one must be ready for some level of uncertainty. Greater the uncertainty, higher the risk. The risk management function is integral to the Company and its objectives include ensuring that critical risks are identified, continuously monitored and managed effectively in order to protect the Companys business. The Company operates in an environment which is affected by various factors some of which are controllable while some are outside the control of the company. The Company proactively takes reasonable steps to identify and monitor the risk and makes efforts to mitigate significant risks that may affect it. Some of the risks that are potentially significant in nature and need careful monitoring are listed here under:
- Macroeconomic Factors
- Political Factors
- Changes in government policy and legislation
- Raw Material Price Increase
- Foreign Exchange Fluctuation
INTERNAL CONTROL SYSTEM AND ADEQUACY
The Company has a well-established and comprehensive internal control system. Documents, policies and authorization guidelines comply with the level of responsibility and standard operating procedures specific to the respective businesses. Observation made in internal audit reports on business processes, systems, procedures and internal control and implementation status of recommended remedial measures by Internal Auditors are regularly presented to and reviewed by the Audit Committee of the Board. The system of internal control is being improved to ensure that all assets are safe and protected against loss from unauthorized use or disposition, and that all transactions are authorized, recorded and reported correctly. The Company regularly conducts internal check, using external and internal resources to monitor the effectiveness of internal control in the organization. It strictly adheres to corporate policy with respect to financial reporting and budgeting functions. The Audit Committee of the Board of Directors deals with significant control issues and instructs further areas to be covered.
The summarized financial performance of the Company as compared to last year is shown as under:
|Particulars||2017 - 18||2016-17||% change|
|Revenue from operations||1,811,674,891||1,645,231,012||10.12|
|Profit before tax||109,047,070||80,341,219||35.73|
|Net Profit after tax||69,983,072||65,746,272||6.44|
|Payment of Dividend (including Interim and DDT)||-||-|
Human resource remains a valuable assets of our business. The Company continues to lay emphasis on attracting and retaining talent. Personnel developmental initiatives including training, both technical and managerial, are regularly conducted to enhance human potential.
As on 31st March, 2018 the Company has 182 employees. The Company recognizes that its employees are its principal assets and that its continued growth is dependent upon the ability to attract and retain quality people. The company has established a full-fledged Human Resources Department, which is entrusted with the responsibility of retaining and developing the skills of all its employees. The Company also recognizes the importance of providing training and development opportunities to its people to enhance their skills and experiences, which in turn enables the Company to achieve its business objectives.
FORWARD LOOKING STATEMENT
The success of our business depends substantially on our ability to implement our business strategies effectively. Company is planning to expand its operations in the domestic tiles market of India by appointing its dealers throughout in India. The company also planning to acquire other business involved in the same line of business activity. This will result in increasing the market capturing of the company and will also increase the turnover and as a result the profits of the Company.
OCCUPATIONAL HEALTH, SAFETY, AND ENVIRONMENT
The emphasis on Occupational Health, Safety and Environment continues at all of the operations of the Company throughout India. The Company is committed to the best standards in safety and continuously monitors matters related to this.
CORPORATE SOCIAL RESPONSIBILITY
As per the provisions of Section 135 Company has constituted the CSR Committee for undertaking the CSR activities as per the provisions of Companies Act, 2013 and SEBI (LODR), 2015.Considering the provisions of Companies Act, 2013, our company is looking for prospective and reliable CSR projects/programmes and considering the projects for making contribution to them with suitable mode of CSR activity.
During the year under review company wasnt able to spend the prescribed amount of CSR expenditure as company wasnt able to find reliable CSR projects/programmes. The Company has incurred a sum of Rs. 1.51 Lakhs (Rupees One Lakh Fifty One Thousand Only) on CSR initiatives in the areas as per the policy of the company. The CSR Report, forming part of this Report, is furnished in Annexure XI.
Statements in the Management Discussions and Analysis report describing the Companys objectives, projects estimates, expectations or predictions may be forward looking statements within the meaning of applicable security laws and regulations. Actual results could di er materially from those expressed or implied. Important factors that could make a difference to the companys operations include economic conditions a ecting demand and supply and price conditions in domestic and overseas market in which the company operates. Changes in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business and other incidental factor.
|NILESH BABUBHAI DETROJA|
|ANIL KUMAR BABULAL DETROJA|