sysco industries ltd Management discussions

(a) Industry structure and developments:

The year 2016-17 continued to witness growth in the FMCG and related sectors. As the company is engaged in supplying packaging materials to such FMCG corporate since last couple of years, the growth of company and industry is justified with growth in industry as a whole and financial performance of the company during FY 2016-17. Further with the indications of a good monsoon and conversion of public towards packaged foods, the industry growth seems to be better as compared to previous years. We thus anticipate higher rates of industry growth for consumption in the future, which will auger well for our prospects.

(b) Opportunities and Threats:

(i) Opportunities:

The continuous growth in the economy has created a number of opportunities for your Company for servicing the packaging requirements of the FMCG, food and other consumer product manufacturers.

(ii) Threats:

There continues to be increase in capacity of packaging manufacturers resulting in over supply coupled with inflation led increases in costs of not only raw materials but also operating expenses. This is a big threat from operating margin perspective. Your Company however mitigates this by continuous increase in productivity and catering to value added products. Further with the delivery of quality products, the margins are ensured and performances are achieved

(c) Segment-wise or product-wise performance:

Following are the product wise performance during the year:

Sr. No. Products	Sales in F.Y. 2015-16 in	Sales in F.Y. 2016-17 in
	Rupees	Rupees
1 IMITATION JARI BADLA	81,43,80,116.63	1,22,07,16,878.04
2 JARI	15,50,69,615.00	23,29,339.00
3 LACQURED POLYESTER FILM	36,69,693.70	22,28,595.98
4 METALISED POLYESTER FILM	56,57,134.83	37,700.35
5 POLY FABRICS	1,69,94,689.00	34,20,197.00
6 PRINTED FLEXIBLE LAMINATED FILM	7,54,01,554.72	13,70,98,065.24
7 S.S.COLLED ROLLED PATTA	3,27,56,816.81	1,39,20,461.37
8 OTHERS -WASTAGE/ SCRAP/JOB	2,69,356.98	38,34,380.81
9 MULTILAYAR PLASTIC FILM	-	9,34,88,206.13
10 POLYFILM SALES	-	26,84,435.25
11 NON WOVEN FABRICS	-	10,08,60,755.18
TOTAL	1,10,41,98,977.67	1,58,06,19,014.35

(d) Outlook:

The Indian economy is one of the fastest developing economies in the world. The government of India is taking continuous steps towards the easy of doing business as a result of which the economy of India may see 7 to 8 percentage growth in the F.Y. 2017-18

(e) Risks and concerns:

The Company being a manufacturer of packaging materials is always exposed to the general risks such as government regulations and policies, statutory compliances, etc. The Company from time to time identifies the risk and has put in its place appropriate measures for mitigating such risks.

(f) Internal control systems and their adequacy:

Your Company has in place adequate internal control systems commensurate with size and nature of its operations. Internal control processes which consist of adopting appropriate management systems and implementing them are followed. The Company has a qualified Audit Committee, independent Statutory Auditors and also Internal Auditors who submit reports periodically which are reviewed and acted upon.

(g) Discussion on financial performance with respect to operational performance:

During the year the performance of the Company has substantially increased compared to the previous year.

- Total turnover for the year was Rs. 158 Cr. as compared to Rs. 110 Cr. in previous year, a growth of 43.15%,

- Profit Before Tax for the year was Rs. 7.26 Cr. as compared to Rs. 4.76 Cr. increased by 52.47%.

- Profit After Tax for the year was Rs. 5.66 Cr. as compared to Rs. 3.39 Cr. increased by 67%.

(h) Material developments in Human Resources / Industrial Relations front, including number of people employed:

Your Company is giving special attention to Human Resources/Industrial relations development. Industrial relations remained cordial throughout the year and there were no incidence of strike, lock out etc. Total 93 employees are on the Companys payroll as on 31^st March, 2017 as compared to 90 employees on the Companys payroll as on 31^st March, 2016. The working atmospheres for all the employees are very favorable and suitable systems are in place for optimum working efficiency of all the employees

	ON BEHALF OF THE BOARD OF DIRECTORS
DATE: 10th JULY, 2017	SYSCO INDUSTRIES LIMITED
PLACE: SURAT
	(BHARATBHUSHAN JAIN)
	CHAIRMAN & WHOLE TIME DIRECTOR
	(DIN: 06908960)