Micro Forge India Ltd Management Discussions

MICRO FORGE (INDIA) LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS a. Industry Structure & Development: The companys business relates to the forging of steel products. The Indian forging industry is trade up of 330 player having production capacity of approximate 1 million tonne p.a. Industrys exports recorded a growth of almost 24% in 2005-06 and have reached level of US$ 310 million. The targeted exports of auto components industry is US$ 1.2 billion by 2015. h. Opportunity. Threats and Outlook Risk & Concerns: The increase competition among forging players and high volume transactions in the products limits the increments in service prices and improvement in profits. However, we continuously strive to differentiate ourselves from the competitors and to innovate the services model. Failure on quality parameter may reverse the result of the company. c. Segment/Product wise perfortnance: The companys operation falls under single segment namely, Forging of steel products. Hence, segment wise performance is not furnished. d. Internal control systems and their adequacy: The Company has in place an moderate Internal Control System. The team ensures an appropriate information flow and effective monitoring. e. Discussion on financial performance with respect to operational performance: The Financial Performance of the company, during the year under review, has been given separately in the Directors Report. f. Material development in Human resources/Industrial relation front, Including number of people employed: The Industrial Relations of the company are amicable and peaceful.