Meyer Apparel Ltd Management Discussions.

Your Directors have pleasure in submitting their Management Discussion and Analysis Report for the year ended March 31, 2018 as under Industry Structure & Development

Meyer Apparel is an apparel manufacturing company with major focus on exports. However, the industry as a whole is facing severe demand compression on export side and working capital issues due to GST. Indias apparel exports are in decline over the last two years facing severe completion from other Asian countries. In addition local demand has been subdued and thus entire industry is under demand pressure. This has been further accentuated by cost increases due to increase in minimum wages making local operations uncompetitive.

Segment-wise Performance

Your company operates in single segment of manufacturing of garments for both wholesale market and retail market. With devaluation of Great Britain Pound last year and GST changes it had major adverse impact on the company. The industry segment as a whole has been hit badly and consequently your company had lower volumes and thin margins on that account.

Outlook, Risk & Concern

Your company has forced to focus on the domestic markets for its business due to sharp fall in price in the export market making it unviable for the company. Domestic market being seasonal in nature, the company has been examining feasibility of the operations on a pure domestic platform. Revival of domestic market is the key to sustenance of your company.

Internal Control

The Company has adequate system of internal controls to ensure that the transactions are properly authorised, recorded, and reported, apart from safeguarding its assets and continues re engineering its internal control processes and up gradation of the production machines wherever required with latest technology and saving of energy cost which reduces the manufacturing cost and helps the Company to be competitive. Self assessment of the processes / controls are also used as the basis of CEO and CFO certification as required under Regulation 17(8) of the SEBI (LODR) Regulations, 2015.

Financial Performance with respect to operational performance

Despite all efforts, the company could not be able to maintain its operational profits during the current year due to thin margins and lower gross turnover this year which went down drastically by 43.96%.

CFO and WTD Certification in pursuance of the SEBI (LODR) Regulations, 2 015 on Corporate Governance

1. We have reviewed financial statements and the cash flow statement for the year ended March 31, 2018 and that to the best of our knowledge and belief:

a. These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;

b. These statements together present a true and fair view of the companys affairs and are in compliance with existing accounting standards, applicable laws and regulations.

2. To the best of our knowledge and belief, no transactions entered into by the company during the years which are fraudulent, illegal or volatile of the companys Code of Conduct.

3. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of internal control systems of the company pertaining to financial reporting and that there are no deficiencies in the design or operation of such internal controls.

4. There is no :

a. significant changes in internal control over financial reporting during the year;

b. significant changes in accounting policies during the year; and

c. Instances of significant fraud.

Sd/- Sd/-
Place : New Delhi (R. K. Sharma) (Gajender Kumar Sharma)
Date : 28th May, 2018 CFO & Company Secretary Whole-time Director