york exports ltd Management discussions

1. Financial Highlights

		(Rs. in Lacs)
Particulars	Current Year	Previous Year
Turnover	3444.04	3075.81
Other Income	1.90	4.42
Profit/(loss) before Depreciation and Taxation	188.01	173.52
Less: Provision for Depreciation	79.63	82.34
Profit/(Loss) before taxation	108.38	91.18
Less: Provision for Taxation	20.00	17.00
Profit/(Loss) after tax	88.38	74.18
Add: Balance B/F from the previous year	152.02	60.37
Add: Transferred from General Reserve	-	-
Add: Transferred from Export Profit Reserve	-	-
Add: Re-measurement gain/(loss) on defined benefit plan	5.49	16.53
Add/(Less): provision of Taxation for earlier Year	-1.33	0.94
Balance carried to Balance Sheet	244.56	152.02

2. State of Companys Affairs and Future Outlook

Company is operating under single segment that is textile manufacturing. During the year under review, the company has achieved a sales turnover of Rs.3444.04 Lacs as compared to 3075.81 Lacs for the previous year registering an increase of 11.98%. However, profit after tax at Rs. 88.38 Lacs for the year under review has registered an increase of 19.14% as compared to 74.18 Lacs forthe previous year.

3. Human Resources

The well-disciplined workforce which has served the company for three decades lies at the very foundation of the companys major achievements and shall well continue forthe years to come. The management has always carried out systematic appraisal of performance and imparted training at periodic intervals. The company has always recognized talent and has judiciously followed the principle of rewarding performance.

4. Risk Management Policy

Although the company has long been following the principle of risk minimization as is the norm in every industry, it has now become a compulsion. Therefore, in accordance with clause 49 of the listing agreement the Board members were informed about risk assessment and minimization procedures after which the Board formally adopted steps for framing, implementing and monitoring the risk management plan for the company. The main objective of this policy is to ensure sustainable business growth with stability and to promote a proactive approach in reporting, evaluating and resolving risks associated with the business. In order to achieve the key objective, the policy establishes a structured and disciplined approach to Risk Management, in order to guide decisions on risk related issues. In todays challenging and competitive environment, strategies for mitigating inherent risks in accomplishing the growth plans of the Company are imperative. The common risks inter alia are: Regulations, competition, Business risk, Technology obsolescence, Investments, retention of talent and expansion of facilities. Business risk, inter-alia, further includes financial risk, political risk, fidelity risk, legal risk. As a matter of policy, these risks are assessed and steps as appropriate are taken to mitigate the same.

5. Internal Control System and their Adequacy

The Company has adequate system of internal control to safeguard and protect from loss, unauthorized use or disposition of its assets. All the transactions are properly authorized, recorded and reported to the Management. The Company is following all the applicable Accounting Standards for properly maintaining the books of accounts and reporting financial statements. The internal auditor of the company checks and verifies the internal control and monitors them in accordance with policy adopted by the company.

6. Cautionary Statement

The statements contained in the Boards Report and Management Discussion and Analysis contain certain statements relating to the future and therefore are forward looking within the meaning of applicable securities, laws and regulations. Various factors such as economic conditions, changes in government regulations, tax regime, other statues, market forces and other associated and incidental factors may however lead to variation in actual results.