Shamken Multifab Ltd Management Discussions

SHAMKEN MULTIFAB LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS OPERATIONS & OUTLOOK: The Companys Accounts for the current year has been prepared far the year of 12 Months i.e. from 01-04-2007 to 31-03-2008. During the year under review your Company has clocked a turnover of Rs. 2483.80 Lacs excluding increase in Stocks & other income. The Company has incurred a net loss of Rs.1225.70 Lacs after providing a depreciation of Rs. 1108.22 Lacs. This is attributed to the severe strict measures to revive the Company in order to put it on track as early as possible. As the economy booming and the demands of the Companys product improving we expect to make a significant turn around 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 one of the leading producer of automobile fabric & matrac for original cars, having command over one third of automobile fabric market. Your Company has tied-up with liziong Ltd., Korea & Sumino textile, Japan for supply of necessary know-how to produce world class automobile fabric in India at competitive prices. This will lead to gain in significant market share in automobile fabric market. Weaknesses & Threat: Your Company is heavily dependent on the supply of raw materials like; Air texture yams, polyster yams and fancy yarns. To ensure supply of these raw materials your Company is in constant touch with the vendors. Further, your Company has approached Board of Financial & Industrial Reconstruction for the revival of the Company and expecting favourable response in the larger interest of the Company and its stakeholders. Opportunities: The Indian Automobile Fabric market is going paces with the steep rise in the production of cars with estimated production of around four million cars per year by 2010. This gives us immense opportunity to grow in this field. ENVIRONMENT SAFETY: Your Company has it stalled proper plants to fulfill its obligations towards environmental safety. INTERNAL CONTROL SYSTEM & ADEQUACY: The 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. RESEARCH & DEVELOPMENT: Expenditures on Research and Development is not separately allocated and identified. The recent technological tie-up with the Korean and Japanese firm will lead to overall quality improvement. 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. For and on behalf of the Board For Shamken Multifab Limited Sd/- Sd/- Place : New Delhi Sanjay Chaturvedi Amit chaturvedi Date : 25th August, 2008 Director Joint Managing Director