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INDUSTRY STRUCTURE AND DEVELOPMENTS
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 utilisation of available raw materials for maximising the returns, particularly from exports.
Indias leather industry has grown drastically, transforming from a mere raw material supplier to a value- added product exporter. Total leather and leather goods exports from India stood at US$ 1.36 billion during April 2017-March 2018. 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.
The table below gives an overview of the financial results for 2017-18 and 2016-17.:
|Revenue from Operation||59,66,485.00||69,16,631.00|
|Profit before tax||(8,08,352.00)||31,501.00|
|Minimum Alternate Tax||(5,830.00)|
|Profit after tax||(8,12,677.00)||31,501.00|
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.
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.