Shamken Cotsyn Ltd Management Discussions

SHAMKEN COTSYN LIMITED ANNUAL REPORT 2006-2007 MANAGEMENT DISCUSSION AND ANALYSIS OPERATION & OUTLOOK: The company account forth e current year has been prepared forth e period of 12 months i.e. from 01-04-2006 to 31-03-2007. During the period under review your Company has clocked a turnover of Rs. 356.63 lacs. The company has incurred a net loss of Rs.355.21 Lacs. The Company has been able to reduce its losses significantly as net losses for the corresponding 15 months period. This depicts the overall improvement in the financials of the Company despite the Company being in red. We have resorted to the severe strict measures to revive the Company in order to put it on track as early as possible. As fine economy booming and the demands of the Companys product improving we expect to make a significant turnaround very soon. Your Company is negotiating with financial institutions, Banks, State Government to support the restructuring program formulated by the company so that the financial health of the company be put on track. SWOT ANALYSIS FOR THE COMPANY: Strengths: Your company is in the business of Processing of grey Cloths for the exporters. The company has low power &fuel cost, cheap labour and easy availability of water to carry out the process. Your Company is heavily dependent on the easy availability of raw material & to ensure its genuine supply we remain in touch with its suppliers. We have been able to procure these raw materials in constant touch with vendors. Further, your company has approached Board of industrial & financial Reconstruction for the revival of the company & expecting favourable response in the larger interest of the company & its stakeholder. Opportunities: The Indian textile market is growing considerably resulting increase in the export of garments from India. We are looking forward to avail this opportunities. ENVIRONMENT SAFETY: Your Company has installed proper plants to fulfill its obligations towards environmental safety. INTERNAL, CONTROL SYSTEM & ADEQUACY: Company has a well defined internal Control system that is adequate and Commensurate with size and nature of business. Clear roles, responsibilities and authorities, coupled with internal information Systems, and ensure appropriate information flow to facilitate effective monitoring. Expenditures on Research and Development is not separately allocated and identified. The constant endeavor to upgrade existing manufacturing facilities result in the improvement in the production. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE DISCLAIMER: Statements in this report describing the current industry, outlook, opportunities etc. reflect the estimation and opinion of the company. The same are based on certain assumptions and expectations of future events. The actual results may substantially diverge from the same as they depend upon the worldwide political, economic and social situation. Further, Government regulations, tax structure, demand & supply conditions, cost of raw materials & their availability and other related factors can also have a bearing on the above statements.