Today's Top Gainer
Note:Top Gainer - Nifty 50 More
Industry Structure and Developments:
The decorative industry market is continuing to grow at a moderate rate of 12% to 15% annually and with more awareness of quality products used by the developers. The industry gap between the organized and the unorganized sector has been narrowed down significantly with the implementation of GST which has made the competition healthy and rationalized the tax burden on the organized industries thereby making it easier to penetrate the market and scale up the business activities.
Market Network: With a policy of reducing the administrative expenses company has closed its Bhivandi Branch Office as it was not economically viable and also discontinues the sale of OLIVE Brand in the Laminates.
Government Policies: During the year under review Government has implemented the GST replacing the VAT and Excise. This has streamlined the Tax Structure on all the products and created healthy competition in the market. Government gives priority to Infrastructure and real estate Sector as part of its policy i.e. roads, bridges, hospitals, Housing, Hotels, Commercial Properties etc. The growth in this sector will lead to the growth of Companies which are connected with Interior Infrastructure items.
Raw Material: The wood based panel industries are dependent on natural forests for their raw material requirement; it is crisis in view of the restrictions on timber extraction owing to environmental considerations.
Manpower: One of the common problems is emerge for finding talent with competence or even skilled manpower for the wood based panel industries irrespective of the company Brand or Size.
High Competition and Law Profitability: The laminate Industry has entered into the orbit of the high competition. Various brands an various quality laminates are available in the market. Due to high competitions in market, we have to lower the profit margin to maintain the turnover of the company.
New Entrants: More and more new organized and unorganized players are entering into market which will increase competition in our business sector also.
Imported Laminates: Dumping or Cheap import from China and other Countries of laminates, MDF and other furniture products has created the stuff competition in the laminates markets. This may affect our turnover and profitability in near future
Risk and concerns:
Stiff competition from the organized and unorganized players as well as from the imported laminates resulting in lower margins or losing out the customers. However, due to sincere efforts the awareness of our quality products, the company has, at its own, penetrated newer markets and enhanced its offerings and sales revenues. The weakening of rupee will prove to be a major setback which will directly affect all raw material prices in both the doors and the laminates vertical.
Internal Financial Control Systems and their adequacy:
The Company has aligned its current systems of internal financial control with the requirement of Companies Act 2013. The Internal Control is intended to increase transparency and accountability in an organizations process of designing and implementing a system of internal control. The Company has successfully laid down the framework and ensured its effectiveness. The Company has in place a well-defined system to record data for accounting and management information purposes and connects to different locations for efficient exchange of information. It has continued its efforts to align all its processes and controls with global best practices. This system has helped the company to exercise the better administrative control over expenses and maximize the profitability.
Though the various risks associated with the business cannot be eliminated completely, all efforts are made to minimize the impact of such risks on the operations of the Company. Necessary internal checks and control systems are to be implemented by the Company on various activities in the organization to ensure that business operations are systemized in achieving the best performance.
Doshi Maru & Associates., Chartered Accountants, the statutory auditors of the Company has audited the financial statements included in this annual report and has issued an attestation report on our internal control over financial reporting (as defined in section 143 of Companies Act, 2013).
The audit committee meets the statutory auditors of the Company to ascertain, inter alia, their views on the adequacy of internal control systems and keeps the board of directors informed of its major- observations periodically. Based on its evaluation (as defined in section 177 of Companies Act 2013), our audit committee has concluded that, as of March 31, 2018, our internal financial controls were adequate and operating effectively.
Material Developments in Business activities, Human Resources / Industrial Relations Front, including number of people employed:
As part of companys policy of reducing the administrative expenses company has closed its Bhivandi Branch Office as it was not economically viable and also discontinues the sale of OLIVE Brand in the Laminates.
The Company always recognizes the importance of manpower. Company promotes employees and encourages them to make contribution toward company, family and nation at large. Company also encourages the employees to offer their creative suggestions for development in their respective areas which are thoroughly discussed in periodical meetings. The company enjoyed excellent relationship with workers and staff during the last year as on March 31, 2018 the company has 13 employees at its manufacturing plants and administrative office. The Company has been maintaining cordial and healthy Industrial Relations, which has helped to a great extent in achieving the upper growth.
Turnover and Profitability:
Companys turnover has been reduced in view of the closure of the Bhivandi Office, however due to effective administration, checks and internal control companys Profit after Tax is increased by 57.90% over the last year on standalone basis.
Statement in this Management and Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may be forward looking statement and within the meaning of applicable laws and regulations. Actual results may or might differ materially from those either expressed or implied.
|For and on behalf of Board of Directors|
|Suncare Traders Limited|
|Place: Ahmedabad||Managing Director|
|Date: August 30, 2017||(DIN:02114144)|