MANAGEMENT DISCUSSION AND ANALYSIS Pursuant to Clause 49 (IV) (B) & (F) of the Listing Agreement your Directors wish to report as follows: • Industry Structure and Development: In view of the demand for Latest Home Appliances, there is good demand in home appliances market in the Domestic as well as International Market. The Companies which will manage to maintain high standards of quality will see potential in the Indian / Overseas market in diamond trade and export. • Opportunities and Threats: Opportunities are there for Companies who maintain their standards of quality but the market conditions in the Domestic and International market pose some threat to the industry. Hence, in view of the brvailing and future scenario in the Domestic and International Market, each Company in the Industry has to be very judicious in its business decisions. • Outlook: The outlook for the Industry and consequently for your company during the current financial year is reasonable, subject however,to the demands in the different parts of the Country. Your Company is putting a lot of efforts to maintain high standards of quality and strengthen its financial position and is attempting to tie up with various Banks- National & Multinational for working capital so as to expand its operations and export business. Risks and Concerns: Domestic and International market conditions could be the only risk which may be faced by the Diamond Industry. Other risks or concerns related to finance, production, stocks, insurance, etc. are being managed adequately and efficiently by your Company. • Internal Control Systems and their adequacy: Your Company has put effective internal control systems into operation and is having regular internal audit mechanism to monitor and review the same under the overall control and supervision of the statutory Auditor and the Audit Committee of Directors. These systems have improved substantially and resulted into better management and effective controls. Continuous improvement in this regard is on going. • Discussion on Financial Performance with respect to Operational Performance: The Financial performance with respect to the operational performance during the year under review was satisfactory. • Material Development in Human Resources / Industrial Relations Front, including Number of People Employed: Your Company is constantly endeavoring to introduce Human Resources Development activities for overall improvement of its team. Your Company has cordial and healthy industrial relations at all levels. Material Financial and Commercial Transactions: There are no material significant financial and commercial transactions with the related parties viz. Promoters, Directors or the Management, their Companies / firms or relatives conflicting with the interest of the Company. The Promoters and the Directors are not dealing in the Shares of the Company For and on behalf of the Board J. N. AGARWAL Place : Mumbai Date: 11th August, 2014 |