Zuari Forex Ltd Merged Management Discussions

ZUARI FOREX LIMITEDT (FORMERLY ZUARI FINANCE LIMITED) ANNUAL REPORT 2009-2010 MANAGEMENT DISCUSSION AND ANALYSIS The Management of the Company is pleased to present this report covering the activities of the Company during the period 2009-10. Industry Structure and development: Operation: The financial year 2009-10 was again a period of mixture. There have been unprecedented Exchage Rate fluctuation, which directly on the net financial results. Outlook: The long-term outlook for the business of the company looks positive and ever growing. The Company proposes to relocate certain branches for better performance and also planning to open another ten Branches around India in the ensuing year. Opportunities: Due to globalization and entry of various Multi National Companies (MNCs) into India for closer Business operations Forgein Exchange Requirements are bound to multiply. Threats: The major threat to the business comes from inexperienced and small scale players who adopt unhealthy competition by quoting huge discounts and longer credit periods. Risk Management: The Industry in which the Company operates is highly competitive since there are no entry barriers. The Company does not perceive any risks or concerns other than those comes to industry such as regulatory risks, exchange risks, and other commercial and business related risks. Internal Control Systems and their adequacy The Company has adequate systems of internal control covering all financial and operational acivities. The internal control are designed to provide reasonable assurance with regard to maintaining proper accounting controls, protecting assets from unauthorized losses and ensuring reliability of financial and operational information and proper compliance with regulations. Human Resources Management The Company has harmonious employee relations and there is close interaction between the management and employees to facilitate smooth functioning of our organizational activities. The company facilitates consistent improvement in performance, productivity and effectiveness by setting targets through an interactive process and continuous and regular staff training programmes. Human resources are being recognized as one of the critical area to the success of our organization. Caution Statement Statement in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, amongst others, economic conditions affecting demand /supply and price conditions in the tourist industry and Government policies on Foreign Exchange regulations under which the Company operates, changes in the Government regulations, tax laws and other statutes and incidental factors. The Company assures no responsibility in respect of the forward -looking statements herein, which may undergo changes in future on the basis of subsequent development, information or events.