sonell clocks gifts ltd Management discussions

SONELL CLOCKS AND GIFTS LIMITED ANNUAL REPORT 2011-2012 MANAGEMENT DISCUSSION AND ANALYSIS Overall review, industry Structure and Developments: During the year, the Management has negotiated and settled with its Bankers-Indian Overseas Bank and obtained No Dues Certificate. However still the said Bank is yet to hand over the factory premises and its inventory. As the factory was, in the possession of the Bank, there were no commercial activities in the Company andflow with the possession of the premises from the Bank, the Management will get into its original business of Time pieces and Gift items. The Market is very wide and due to heavy population in India, the demand for the products and Gift Articles is very high. Opportunities and Threat: With the research and development in the quality and appearance of the products, one can not only retain its share in the market but also gets better margin as compared to other who deal in the repeat patterns and design. The taste of the market keeps of changing very fast and manufacturers as well as the trader has to be updates with the current trend in the market. Segment wise Performance: Presently the Company plans in only one segment Time pieces and Gift items. Future Outlook: The Management with further induction of capital and skilled workmen, plans to diversified into Imitation Jewellery and varied range of Gift Article where though working capital is high, but its circulation is very fast. Internal control System: The Company adequate internal control systems, which provide, among other things, reasonable assurance of recording the transaction of its operations in all material respects and provide protection against significance misuse of loss of Companys assets. Human relations: The Company believes that the manpower and business network consisting of human being is the primary and most valuable resources to the growth of organization. Your Company put all its efforts for sound and healthy human relation for development of trade and organization. Financial performance with respect to operational performance: During the year, the Management were successful in finalizing Negotiated Settlement with its Banker-Indian Overseas Bank and obtained No Dues Certificate. However the Company is yet to get the possession of the factory premises and its inventory which the Management is expecting in the current year and then the commercial operation will be resumed.