Salguti Industries Ltd Management Discussions.

Pursuant to SEBI (LODR) Regulations 2015, Management Discussion and Analysis Report is given below:

I. COMPANYS PRODUCTS/SERVICES

* Plastic Division:

Our Company is Manufacturing HDPE/PP Woven sacks for packing of Fertilizers & Cement.

* Textile Division: Manufacturing Cotton grey fabric for garments, Bed Linen and Furnishings.

II. OPPORTUNITIES AND THREATS TEXTILE SECTOR

Opportunities:

1. Growth rate of Domestic Textile Industry is 6-8% per annum.

2. Large, Potential Domestic and International Market.

3. Product development and Diversification to cater global needs.

4. Elimination of Quota Restriction leads to greater Market Development.

5. Increased Disposable Income and Purchasing Power of Indian Customer opens New Market Development.

6. Emerging Retail Industry and Malls provide huge opportunities for the Apparel, Handicraft and other segments of the industry.

7. Greater Investment and FDI opportunities are available.

Threats:

1. Competition from other developing countries, from Vietnam and Bangladesh.

2. Continuous Quality Improvement is need of the hour as there are different demand patterns all over the world.

3. Elimination of Quota system will lead to fluctuations in Export Demand.

4. Threat for Traditional Market for Powerloom and Handloom Products and forcing them for product diversification.

5. Geographical Disadvantages.

6. International labor and Environmental Laws.

7. To balance the demand and supply.

8. To make balance between price and quality.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Internal control systems are aimed at promoting operational efficiencies while stressing adherences to policies. The systems are designed with adequate internal controls commensurate size and nature of operations. Transactions are executed in accordance with the company policies. Assets are safeguarded and deployed in accordance with the Companys Policies.

The Company has in place adequate internal financial controls with reference to financial statements. Periodic audits are undertaken on a continuous basis covering all the operations i.e., manufacturing, sales & distribution, marketing, finance, etc. Reports of internal audits are reviewed by management from time to time and desired actions are initiated to strengthen the control and effectiveness of the system.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS:

The Company is able to retain the experienced staff, in spite of the copper consuming Industries are under recession, the Company feels confident of keeping its manpower costs to below industry norms. The atmosphere that is created in the organization is conducive for self-development and career growth; this is the success in retaining our manpower.