<dhhead>MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE AND DEVELOPMENTS</dhhead>
The leather industry occupies a place of prominence in the
Indian economy in view of its massive potential for employment, growth and exports. There
has been an increasing emphasis on its planned development, aimed at optimum utilization
of available raw materials for maximizing the returns, particularly from exports.
Indias leather industry has grown drastically, transforming
from a mere raw material supplier to a value-added product exporter. These sectors provide
immense opportunities for creation of jobs for the weaker sections, especially for women,
and can become vehicles for broader social transformation in the country, a government
release stated. Although there were many fluctuations in the market during the period in
review because of the recession all over the globe which causes decrease in the export.
The Company has taken various steps to promote companys products all over the world and
it is being done in line with global trends to enhance scale, global competitiveness and
financial flexibility and also to contribute towards achievement of companys objective
and to increase revenue, production volume, market shares and shareholders returns.
SEGMENT WISE OR PRODUCT- WISE PERFORMANCE
Your company mainly operates in single product segment, within
domestic and global market. The management of your Company has continuously reviewed the
performance and they found it quite satisfactory. The business is expected to grow in the
coming years. However, highlights of the financial performance of the company are given
below.
OUTLOOK & THREATS, RISK & CONCERNS:
The areas of operations of the Company are largely challenged by
the players from the unorganized body having lesser stakes into the Business. Goods and
Service Tax Act and other law reforms has little bit hampered the growth and confidence
into the market. However, with the strong team in place of the Professionals, the Company
is poised to meet all the challenges and the Board is confident to meet all the challenges
to which the Company may be exposed. The Company is exposed to specific risks that are
particular to its business, including interest rate volatility, economic cycle, market
risk and credit risk. The management continuously assesses the risks and monitors the
business and risk management policies to minimize the risk.
INTERNAL CONTROLS SYSTEMS AND THEIR ADEQUACY
The Company has a well-established and comprehensive internal
control system. Documents, policies and authorization guidelines comply with the level of
responsibility and standard operating procedures specific to the respective businesses.
Observation made in internal audit reports on business processes, systems, procedures and
internal control and implementation status of recommended remedial measures by Internal
Auditors are regularly presented to and reviewed by the Audit Committee of the Board. The
system of internal control is being improved to ensure that all assets are safe and
protected against loss from unauthorized use or disposition, and that all transactions are
authorized, recorded and reported correctly. The Company regularly conducts internal
check, using external and internal resources to monitor the effectiveness of internal
control in the organization. It strictly adheres to corporate policy with respect to
financial reporting and budgeting functions. The Audit Committee of the Board of Directors
deals with significant control issues and instructs further areas to be covered.
FINANCIAL PERFORMANCE
The table below gives an overview of the financial results for
2022-23 and 2021-22.:
PARTICULARS |
2022-23 |
2021-22 |
Revenue from Operation |
3,879.51 |
- |
Other Income |
44.43 |
496.28 |
120.35pt;padding:0in 5.4pt 0in 5.4pt> Expenses |
2,095.69 |
933.34 |
Profit before tax |
1,828.25 |
(437.06) |
Tax expense |
- |
- |
Current Tax |
|
|
Minimum Alternate Tax |
|
|
Profit after tax |
1,828.25 |
(437.06) |
EPS |
0.36 |
(0.87) |
HUMAN RESOURCE DEVELOPMENT
Human resource remains a cornerstone of your company. The
Company also recognizes the importance of providing training and development opportunities
to its people to enhance their skills and experiences, which in turn enables the Company
to achieve its business objectives. Personnel developmental initiatives including
training, both technical and managerial, are regularly conducted to enhance human
potential. The Company recognizes that its employees are its principal assets and that its
continued growth is dependent upon the ability to attract and retain quality people.
CAUTIONARY STATEMENT
Certain statements in the Management Discussion and Analysis
section may be forward-looking and are stated as required by applicable laws and
regulations. Many factors may affect the actual results, which would be different from
what the Directors envisage in terms of the future performance and outlook. Investors are
cautioned that this discussion contains forward looking statement that involve risks and
uncertainties including, but not limited to, risks inherent in the Companys growth
strategy, dependence on certain businesses, dependence on availability of qualified and
trained manpower and other factors discussed. The discussion and analysis should be read
in conjunction with the Companys financial statements and notes on accounts.
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