Uniroyal Marine Exports Ltd Management Discussions

Industry structure and development

India is second major producer of aquaculture in the world producing 7 per cent of the world output. Aquaculture sector of the country witnessed boom with increased production of monodon and vannamei. Indian quality has been broadly accepted in the International market. During the previous financial years, exports of marine products reached an all-time high. MPEDA ensures exporters facilities are able to comply with international standards. India has wide varieties of species landing in both west and East coast. Indian Government through MPEDA has provided various subsidies in the form of financial assistance for ‘setting cold stores, ‘purchase refrigerated trucks, ‘seafood units up gradation, ‘purchase antibiotic testing kit, ‘insurance coverage for worker etc.

Exporters receive assistance for promoting exports, hygiene and sanitation, research and development, and acquisition of machinery. Indian seafood has significant presence in the world seafood in commodity trade. Increased commodity diversification has been one of the major strength achieved over the years. HACCP has helped the Indian seafood industry in becoming more organized and process-oriented. The international trade scenario is changing fast and the importers are insisting on stringent quality standards. India produces about 6 per cent of the global aquaculture supply. Introduction of L. vannamei in the culture has improved performance of the seafood export industry. MPEDA envisages export target for marine products exports at USD 6.6 for 2015-16. Indian Seafood growth has been supplemented by the growth of shipment connectivity. India can ship to most of the destinations in the world.

Opportunities/ Risks Opportunities

1. Our Company has adopted IQF (Individually Quick Frozen) technology, ensuring higher value addition in its production.

2. Proximity to main fish landing centers namely Beypore and Puthiyappa in North Kerala.

3. Our Company enjoys the Green Channel Status for export of cooked product to USA and also approval for export of IQF and Block fishery products to the European Union.

4. The cost control measures introduced by the management are being continued.

5. The increasing demand for sea food all over the world.

Risks/ Threats

1. The Company is largely dependent on natural sea caught material. Availability of raw material would depend upon the seasons.

2. Selling prices are governed by international market.

3. Export realization is affected by changes in Rupee Dollar exchange rate.

4. There is a possibility of the shrimps getting affected by virus and diseases which may affect the availability of cultured shrimp.

Internal Control System and their adequacy

Company has been maintaining adequate internal control systems commensurate with the size and volume of the business with respect to the purchase of stocks, raw materials (including components), plant and machinery, other assets and sale of goods. It also ensures that all the assets of the company are adequately protected against loss and all the transactions are properly authorized, recorded and reported. The Internal Control System is supplemented by Internal Audit conducted by an independent Chartered Accountant.

Financial Performance

As the company is engaged in manufacture of marine products only, segment wise analysis is not significant.

Industrial relation and human resource management

Your Management firmly believes that success of any organization comes from good Human resources. Employees are considered as important and valuable assets of the organization and key to its success. Total number of employees directly employed by the company was 48.

Cautionary Statement

Statement given in this section describing the companys objectives, projection, estimates, and expectations may be "forward looking statements" based on the present environment, rules and regulations. The actual result could differ materially from those expressed or implied. The important factors that could make a difference among others are economic situation affecting demand and supply, price fluctuation both in domestic and international markets in which the company operates, changes in Govt. regulations, consumer taste, tax laws and other statues and other incidental factors. The company assumes no responsibility to publicly amend, modify or revise any of the forward-looking statements on the basis of any subsequent developments or events