MPL Plastics Ltd Management Discussions.
1. INDUSTRY STRUCTURE AND DEVELOPMENTS
The industry of moulded furniture is facing lots of constraints. The margins are reduced to lowest level and stiff competition from un-organised sector and local players adversely affected the turnover. The management is of the view that any investment and expansion in the present lying of moulded furniture will not provide any better results. The Company has continued its effort in product innovation considering the changing consumer preferences.
2. OPPORTUNITIES AND THREATS Opportunities:
Concentration in Rural Market and exploring the export market.
The Competition from unorganized / small scale sectors and new entrants in the open market.
3. segmentwise performance
The Company manufactures only thermoware products; hence no separate segment wise information is required to be given.
The Company is diversifying its presence in Rural market through strong distribution network. The Company is also exploring the potential in the international market.
5. RISKS AND cONcERNS
Competition from the un-organised small scale sector via cut-throat competition from the new entrants in the market, thereby squeezing the Companys profit margins.
6. INTERNAL cONTROL SYSTEMS
The Company has an adequate system of internal controls that ensures that all assets are protected against loss from unauthorized use or disposition and all transactions are recorded and reported in conformity with generally accepted accounting principles.
7. financial performance
The Company has achieved a sales turnover of during the year Rs.2290 lacs as against Rs.2648 lacs in the corresponding previous year. During the year, the Company earned a profit of Rs.17 lacs as against Rs. 119 lacs in the corresponding previous year.
8. human resources and industrial relations
The Industrial relations remained cordial during the year under review.
9. cautionary statement
Statements in this Report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions are based on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied. The Company assumes no responsibility to amend, modify or revise any of the statements on the basis of subsequent developments, information or events.
|BY ORDER OF THE BOARD|
|For MPL PLASTicS LIMITED|
|Email : firstname.lastname@example.org|
|2, Ashish Warehouse Corporation,|
|Punjab Foundry Industrial Estate,|
|Near Classic Studio, Mira Bhayander Road,|
|Kashimira, Mira Road (East), Dist. Thane - 401104|
|Date: 14th August, 2019|