Management discussion and Analysis
OVERVIEW
The Indian economy has witnessed good steady recovery and continued to grow in the lastfiscal year. Good monsoon in most part of the country and revival in manufacturingactivity added to the optimism. This GDP growth has placed India firmly amongst thefastest growing economies of the world in the current year.
There has been no occurrence of any event or circumstance since the date of the lastfinancial statements that may materially and adversely affect or is likely to affect thetrading or profitability of our Company or the value of our assets or our ability to payour liabilities.
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company is mainly engaged in chemical business but due to shortage of funds companyis not able to continue this business. Company is looking and enquiring about enteringinto share broking business and enquiring to get TCM membership of National stockexchange, MCX, NCDEX.
OPPORTUNITY AND THERATS
The Company’s strength is its director experience in marketing and commoditytrading and company is enquiring for membership of NSE,MCX,NCDEX for the brokeragebusiness.
The Company does face threats from financial arrangement and new emerging players inthese product lines.
SEGMENT-WISE PERFORMANCE
The operation of the company consists of the single segment. Hence, Accountingslandered on Segment Reporting (AS-17) issued by institute of Chartered Accountants ofIndia does not apply.
OUTLOOK
We are committed to deliver set up new strong network on a consistent basis , Ourstrategy has been to develop strong customer relationship and to be a customer drivenCompany.
The Indian economy ha shown substantial growth in the year 2006-07 and this will have apositive impact in all the sector. Commodities prices have maintained their highvolatility, marking it difficult to takelong term view on prices,
Factors that may affect our results of the operations
Our financial conditions and results of operations are affected by numerous factorsinter alia-
• Sudden change in global Commodity prices which may effect our outstandingposition in commodities.
• General economic and business conditions;
• Our company ‘s ability to successfully implement our growth strategy;
• Changes in laws and regulations relating to the industry in which weoperate;
• Changes in political and social conditions in India;
• Any adverse outcome in the legal proceeding in which our Company isinvolved; and
Our Results of Operations
The Breakup of Revenue and Costs of Company is as given below;
| Year ended March,31st 2011 | Year ended March 31st 2010 | % charges |
| Income | | | |
| Sales | 6363956 | 7188105 | -11.46% |
| Other Income | 42500 | 73000 | -41.78% |
| 6406456 | 7261105 | -11.77% |
| Expenditure | | | |
| Cost of Purchase | 6142870 | 7039639 | -12.38% |
| Operative | 254227 | 197544 | 28.69% |
| Expenses | | | |
| Interest and Financial Charges | 0 | 0 | 0.00 |
| Depreciation for the Year | 0 | 0 | 0 |
| Profit/(loss)After Depreciation | 9358 | 23922 | -60.88% |
| Short Provision for earlier Year | 0 | 0 | 0 |
| Deferred Tax | 0 | 0 | 0 |
| Assets | | | |
| Credited/Debited | | | |
| Provision for | 0 | 0 | |
| Taxation | | | |
| Profit/(loss)After Tax | 9358 | 23922 | -60.88% |
| Appropriations | 0 | 0 | |
| Transfer to General Reserve | | | |
| Balance Carried to Balance sheet | 9358 | 23921 | -60.88% |
| Earning Per Share | 0.0003 | 0.08 | -99.625% |
1. Total Income
Our revenue has decreased from Rs. 7188105 /- in FY 2009-10 to Rs6363956.98/-in FY2010-11 at a rate of -11.46%. The sales figure is MTM Plus regarding trading in NCDEX.Other Income represents consultancy income which has reduced from Rs. 42500/-in FY 2009-10to Rs 73000/-in FY 20 10-11 at a rate of -41.78%.
Cost of Purchase
The Cost of Purchase has reduced from Rs. 6142870/-in FY 200 9-10 to Rs.7039639/- in2010-11 by 12.38%. The Purchases figure is MTM Minus regarding trading in NCDEX.
2. Operating Expenses
The principal operating expenses are Salary &other Administrative expenses
3. Depreciation
The Company is not having any fixed assets during the year .hence it is Not Applicable.
4. Net Profit
Net profit has decreased by -60.88% from Rs23922/-in FY 200 9-2010 to Rs.9358/-in FY2010-2011, which is in decreasing trend.
Other Factors:
(1) Known trends or uncertainties
There have not been any discernible known negative trends or uncertainties, which couldadversely impact the income or revenue from continuing operations.
(2) Increase in net sales or revenue is due to increased sales volume, introduction ofnew products or increase in sales price.
Increase in sales is solely linked to increase in volume of Trading activity carriedout by our Company.
(3) Future relationship between costs and revenues
Our Company doesn’t see substantial increase in Salary cost or otherAdministrative cost.
(4) Significant development subsequent to last financial year.
In the opinion of the Directors, there are no significant changes since the date of thelast financial statements, which could materially affect the operations, and Profitabilityof our Company.
DEMATERIALISATIONS
To facilitate the share holders Company is again applying for with NSDL and CDCL forDematerializations of its shares.
INTERNAL CONTROL
The Company has an adequate system of Internal Control which enable reliable financialreporting, safeguards assets and encourage adherence to management policies.
The company also has a system for a speedy compilation of accounts and managementinformation reports to comply with applicable laws and regulations.
The company has a reasonable budgetary control system. The actual performance isreviewed with reference to budgets monthly by the management.
The Company has a well defined organization structure, authority level, internal rulesand guidelines for conducting business transactions.