Sabrimala Industries India Ltd Management Discussions

INDUSTRY OVERVIEW: Global economic growth is generally inter linked to Petro-chemical consumption where plastic is an important partner. Indian plastics industry is set to defy the global trend of sluggish growth by emerging as one of the fastest growing markets.

OPPORTUNITIES: The Government has taken certain initiatives to bring the economy back on track. The initial trends of those steps have sent a positive vibe in the business groups. The products offered by the Company are affordable, sturdy and trendy and are best suitable for household use. With the advent of better technology the designs have become more trendy and durable. The products have achieved mass appeal and its longevity shower sit with the trust and confidence.

The steep increase in the income of middle class and rising level of education will make the customers to prefer quality and branded products. This will in turn help the Company as its offerings have earned the trust and confidence of its customers.

Company has changed its objective and has now been submitting the resolution plan in companies undergoing CIRP.

THREATS: The Unorganized Sector which doesn?t use quality material and fails to pay adequate taxes poses constant threat to the Company as they are involved in copying of designs and offering their sub- standard products at a lower rate due to which the Company?s market share has affected.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE: During the year under review, since company is being working in a single segment therefore the specific segment wise performance does not stand eligible.

FUTURE PROSPECTS AND OUTLOOK: The management is optimistic about the future outlook of the Company. The industry witnessed testing times with global economic slowdown and weakening profitability and tightening of financial conditions, still the Company has demonstrated its ability to with stand the challenges posed by the current environment.

RESEARCH AND DEVELOPMENT: Your Company puts a lot of effort in bringing such products which are aesthetically good and sturdy. For this, it carries research and has come out with products that have exceeded the expectations. Every design that we use in our products is executed through an in-house designing software. The Company always strives to serve the customers with the best products, and this zest has made us to achieve international standards. The Company?s expansion in the mould making sector has also opened new doors of innovation and research.

RISKS AND CONCERNS: The Company evaluates potential risks and has evolved over the years a comprehensive risk-management strategy. It takes in to account changing market trends, competition scenario, emerging customer preferences, potential disruptions in supplies and regulatory changes, among others. Ensuring we have an efficient risk management system in place is key to developing our business and achieving our objectives.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY: The Company has carried out the internal audit in-house and has ensure that recording and reporting are adequate and proper, the internal controls exist in the system and that sufficient measures are taken to update the internal control system. The system also ensures that all transaction are appropriately authorized, recorded and reported. Exercises for safeguarding assets and protection against unauthorized use are undertaken from time to time. The Companys audit Committee reviewed the internal control system. All efforts are being made to make the internal control systems more effective. All these measures are continuously reviewed by the management and as and when necessary improvements are affected

OPERATING & FINANCIAL PERFORMANCE: The Sabrimala Industries India Limited is a listed Company. The Company is engaged in the of business i.e. trading including household plastic products, mobile phones and tablets. The Company?s total income for the year under review is Rs 142.94 Lacs and profit/loss before tax amounts to Rs ((26.69)) on standalone basis and the Company?s total income for the year under review is Rs 142.94 Lacs and Profit/loss before tax amounts to Rs ((26.69)) Lacs on consolidated basis.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED: The Company had sufficient numbers of employees at its administrative office. The company recognizes the importance of human value and ensures that proper encouragement both moral and financial is extended to employees to motivate them. The company enjoyed excellent relationship with workers and staff during the last year.

CAUTIONARY STATEMENT: Certain statements made in the management discussion and analysis report relating to Company?s objectives, Projections, outlooks, expectations, estimates and others may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations projections and outlooks whether express or implied. However, Company has also submitted various risks associated with the business.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS: