Shamken Spinners Ltd Management Discussions

SHAMKEN SPINNERS LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSIS OPERATION & OUTLOOK The Company account for the current year has been prepared for the period of 12 months i.e. from 01-04-2010 to 31-03-2011. During the year under review no commercial activities have been carried out by the Company and the Company has incurred a cash loss of Rs 56.35 Lacs in comparison to the previous year. Due to fund constraint the plant of the Company has been closed during the year under review. We are trying our best to get the plant restarted. In view of the above your Company is still in red. We hope to make a come back after getting our scheme sanctioned for the revival of the Company. Further whole of the Company has been possession by ARCIL under the SARFAESI Act and your Company has filed an appeal against the possession of ARCIL before the Allahabad High Court and the matter is pending. Subsequently, the Directors of your Company have been expected that they will get free their unit very soon. SWOT ANALYSIS FOR THE COMPANY Strengths Your company is one of the leading producers of cotton and synthetic yarn, having world class manufacturing facilities. We are poised to make a stride in international market with our State of Art Manufacturing facilities and competitive strengths. Weaknesses & Threats However due to suspend manufacturing activities the Company has not experienced any problem during the year. Further, your Company has approached Board of Industrial & Financial Reconstruction for the revival of the Company and expecting favorable response in the larger interest of the Company and its stakeholders. Opportunities The Indian Cotton and Synthetic market has thrown in a plethora of opportunities to the liberalization and demolition of quota system in USA and other European Market. With the emergence of strong middle class in Indian economy and having larger disposable income in the hands of the Consumers we expect the textile industry to make a significant contribution in coming days ahead. ENVIRONMENT SAFETY Your Company has installed proper plants to fulfill its obligations towards environmental safety. INTERNAL CONTROL SYSTEM & ADEQUECY 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. 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 Sd/- Sd/- Sanjay Chaturvedi Amit Chaturvedi Director Director Place: New Delhi Date : 23/08/2011