Shiva Suitings Ltd Management Discussions

SHIVA SUITINGS LIMITED ANNUAL REPORT 2006-2007 MANAGEMENT DISCUSSION AND ANALYSIS FUTURE OUTLOOK a) The New Corporate Perspective. The Factory Building, Plant & Machinery was in the possession of the Court Receiver High Court Bombay, the same has been vacated on 7th October 2006 after completion of certain formalities. b) Internal Control Systems and their Adequacy The Company has adequate and effective control systems, commensurate with its size and nature of business, to ensure that assets are efficiently used and the interest of the Company is safe guarded and the transactions are authorised, recorded and reported correctly. Checks and balances are in place to determine the accuracy and reliability of accounting data. The preventive control systems provide for well-documented policy, guidelines, and authorization and approval procedures. The Company has also developed a Risk Assessment policy and is reviewed by the Board of directors. c) Financial Performance and related disclosures Total income achieved during the year under review is Rs.1,46,08,174/- as against Rs.32,62,468/- in the previous year. The income from sales has increased to Rs.77,16,137/- as against Rs.31,99,468/- in previous year, showing an increase of more than 141.16%. The Company has not provided for depreciation and interest on debentures.