Satellite Engineering Ltd Management Discussions

OVERVIEW, FUTURE PROSPECTS & OUTLOOK :

Company is planning to increase its output, as the Company has confirmed order from domestic market as well as export market. Many Indian Companies like Anchor, Havells etc, and foreign companies situated at different countries like Philippines, Holland, Singapore have confirmed their order for supply of engineering goods to our Company. The management of the Company is planning to launch the LED products, keeping in view, future demand of engineering goods market which saves lots of energy and electricity. The Company has been trying best to develop the new products and technology which may take at least one and half years to develop and come to the track. Modernization of plant by executing / installing fully atomized and well equipped plant through new technologies with the financial support of the Bank are also one of the priority motto of the Board of Directors of the Company.

RISKS & CONCERNS :

The company faces stiff competition from imported Chinese goods and unhealthy competition from the local unorganized players. Also the Company was confronted by Labor Unions and hence loss of well settled business. Frequent change in Exchange rate resulting into exchange fluctuation and government policies are also risk factor for Company’s business.

INTERNAL CONTROL SYSTEM :

The company has got adequate internal control system and procedure relating to the purchase of various raw materials, stores and other consumables. The plants are sending regular and timely reports to the Managing Director and other Management Executives at Head Office and corrective actions as and when, required are being taken by Head Office.

STATUTORY COMPLIANCE :

Managing Director of the company is the Compliance Office. Moreover the company has retained services of a Practicing Company Secretary for making compliance of all provisions of Companies Act, Securities Contract and Regulation Act, SEBI Act etc.

INDUSTRIAL RELATIONS :

During the year Labor Unions have caused loss of production to the Company by stopping work from time to time and thereby Export Business of the Company was lost. However, in the coming days. Labor will not affect the growth of the Company.