Today's Top Gainer
Note:Top Gainer - Nifty 50 More
The management of your Company is pleased to present the discussions and analysis on the industry structure, developments, future outlook and operating and financial performance.
I. INDUSTRY STRUCTURE AND DEVELOPMENT
a) Industry Scenario:
The per capita consumption of vegetable oil is relatively low in India leaving a scope for market expansion consistent with high disposal income in future. Keeping in view the rising input costs on account of imports, various measures are being taken by the Government to step up the domestic oil seed production and moderate import duties with a view to ensure adequate availability and price stability, taking into account the equitable view towards various stakeholders such as domestic farmers, industry, consumers etc.
b) Industry outlook:
The industry is in the process of consolidation with the large domestic and multinational entities having strong business capabilities, efficiencies in logistics, operations in strategic locations and strong consumer focus and seeking opportunities to expand the growing market share.
c) Risks and Concerns:
Your companys business is exposed to price fluctuations on its major raw materials with bulk of them being agro based and subject to market price variations during the year. Prices of these commodities continue to be linked to both domestic and international prices, which depend on the various external factors like good monsoon in the country, import/exports, international crop size etc. The setting up of commodity exchange and introduction of commodity futures and other hedge strategies in the country has opened up reasonable opportunities for the industry to hedge and manage the impact of these price fluctuations.
d) Risks and Concerns:
Strength: We believe that the factors which contribute to our strength are our ability to adapt to ever changing environment, maintaining continuous growth, creating new market opportunities, efficient leadership qualities and maintaining good customer relationship.
Threats: Important factors that could make a difference to the companys operations which include economic conditions affecting demands/ supply and price conditions in the domestic markets in which the Company operates, changes in government regulations, tax laws and other statutes and other incidental factors.
e) Segment-wise or product-wise performance
Due to continued sluggish market and other unfavourable conditions the operations of the Company continued to be closed.
II. ANALYSIS & DISCUSSION OF FINANCIAL PERFOMANCE WITH RESPECT TO OPERATIONAL PERFOMANCE
Due to continued sluggish market and other unfavourable conditions the operations of the Company has continued to be closed during the year too. However, the management is considering various options available for restarting of the business activities of the Company, once the conditions become feasible.
III. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
Monthly information system is backbone of our internal control system. Roles and responsibilities for all managerial positions have been clearly defined. All operating parameters are closely monitored and controlled. The management also regularly reviews the operational efficiencies, utilization of fiscal resources, and compliance with laws so as to ensure optimum utilization of resources and achieve better efficiencies.
IV. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT
The employees are basically its human resource assets. They have played significant role in growth of the Company and enabled Company to deliver superior performance during the year. The Company has initiated several steps for overall development, training and welfare of its human resource asset and progress is monitored on regular basis. Employee relations have continued to remain cordial during the year under review. However, since the operations have been closed, the management has kept the minimum staff required for the time being, keeping in view the fact that the strategic work of the Company remains to be unaffected.
V. CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis describing the companys objectives, projections, estimates, expectations may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could defer materially from those expressed or implied. Important factors that could make a difference to the companys operations include economic conditions affecting demands/supply and price conditions in the domestic markets in which the company operates; changes in the Government regulations, tax laws and other statutes and other incidental factors.