ANNEXURE-B
INDUSTRY STRUCTURE & DEVELOPMENTS
The Silk Export Industry has gone steadily in small markets of Asian addition to the traditional major markets like USA and European Countries. Exports earnings which was Rs. 2294 Crore during 2002-03 increased to Rs. 3338 Crore during 2006-07. However sharp appreciation of Rs. V/s USD during 2007-08, there was a slump in silk goods exports in 2008-09, 2009-10 and 2010-11. The European debt concerns further aggregated the export market. But with the recent market revival in US, the export market is poised to grow in the coming years.
OPPORTUNITIES AND THREATS
a) Opportunities
The Company has commenced the retail initiatives in Indian Markets. The Company has taken various initiatives to broaden the product mix coupled with the state of the art R & D and designing capabilities.
b) Threats
The threat perception in our business includes increase in Raw materials costs from China, lower consumption in USA & West European countries, fluctuation in foreign exchange rates as well as increase in interest rate on borrowings.
SEGMENT-WISE PERFORMANCE
The Company has only single Reportable Business Segment in terms of requirements of AS 17.
OUTLOOK FORTHE INDUSTRY
The Government has experienced various exports initiated like continuation of TUFS and extension of export incentives like FPS and SHIS.
Silk fabrics being a premium segment is yet to see the kind of increase in market share of overall Textile Export. However, there has been positive response shown by the overseas buyers at present.
OUTLOOK FOR THE COMPANY
Your Company has put in place a series of initiatives on marketing with the introduction of various product mix and also selling in Domestic Market to attain the growth.
RISKS & CONCERNS
Your Company product is intrinsically linked to the fashion industry and more importantly, growth of the economy. Any slowdown of the economic growth or fashion industry growth would have a direct impact on the demand of our product. But the Company feels that the effect of such slow down in the long run is very minimal.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUECY
The Company has adequate internal control systems and procedures regarding purchase of assets and sale of finished goods. All the transactions are authorized, recorded and reported correctly.
The Company has an independent internal auditing system. Professionally qualified firm conducts periodic audits to ensure that the Companys internal control systems are adequate and are complied with.
DISCUSSION ON FINANCIAL PEFORMANCE WITH RESPECTS TO OPERATIONAL PERFORMANCE
The details on financial performance with respect to operational performance are available in the Balance Sheet, Profit & Loss and other financial statements appearing separately.
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT INCLUDING NUMBER OF PEOPLE EMPLOYED
People have always been the strength of the Company. Only with their participation, we can manage to achieve a healthy work culture, transparency in working, fair business practices and a passion for efficiency. To enhance their skills and enrich their experience, the Company provides continuous training.
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Copyright © IIFL Securities Ltd. All rights Reserved.
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www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.