globus corporation ltd Management discussions

1. Industry Overview

The government at the center has infused optimism in the sentiments in general. The Union Budget has also announced initiatives to boost investment. As a result, the outlook for the GDP growth has improved.

The asset quality which had deteriorated in general across the banking sector during the year are bad to worse, is expected to remain weak until economic growth gathers momentum. Even, net-interest margins are expected to follow the similar pattern after experiencing decline by the banking sector.

2. Opportunities And Threat

The growth of the Company is subject to opportunities and threats as are applicable to the industry from time to time.

3. Segment-wise or Product-wise performance

During the year company was not in operation so there is no segment /product wise performance given in the Annual Report.

4. Outlook & Market Scenario

The market condition for the small scale industries is not favourable. The linking in the prices of raw materials with global market is key issue for the survival of the unit. The global market is very volatile & volatility affects the SSI units very badly. The fixed assets of the Company are disposed by the Bank.

Marketing Efforts

Since the unit is closed nothing could be done for marketing. The company is reassessing business opportunities.

5. Risk and concerns

During the year company is not in operation. The loss is mounted more than100% of paid up capital. The companies account has been declared as NPA. The Bank did not come forward to help the SSI Manufacturing infra-structure unit, which was providing employment to 70-75 unskilled workers 25-30 persons were working as technicians, office & factory administration. The Bank disposed the fixed assets of the company and recovered loan amount, however bank has filled a case in DRT for the interest amount.

6. Internal Control System and their adequacy

The Company has an adequate system of internal control in place which has been designed to provide a reasonable assurance with regard to maintaining of proper accounting controls, monitoring of operations, protecting assets from unauthorized use or losses, compliance with regulations and for ensuring reliability of financial reporting. GCL has documented procedures covering all financial and operating functions.

7. Discussion on financial performance with respect to operational performance

Key elements of the statement of profit and loss for the year ended March 31, 2019 are:

• Loss during the year was Rs.37.71 Lakhs against previous year 19..29 Lakhs.(figures are based on profit before tax)

• Current year income tax provision amounted to INR 00.00 lakhs as compared to INR 0.00 lakhs in the previous year.

• The Earnings per share (Basic) was INR (0.05) for the current year as against INR (0.14) for the previous year.

8. Human Resource

The plant is closed for more than 5 years. The Bank has disposed the fixed assets of the company the senior staff members have resigned. To economize the expenses, after reassessing the opportunity company will have full strength of staff.

9. Cautionary Statement

Statement in this Management Discussion and analysis describing the Companys objective, projects, estimates and expectations may be ‘forward looking statement within the meaning of applicable laws and regulations. Actual results may vary significantly from the forward-looking statements contained in this document due to various risks and uncertainties. Several factors could make a significant difference to the Companys operations. These include economic conditions, Government regulations and Tax Laws, Political situation, natural calamities etc. Over which the Company does not have any direct control.

	By order of the Board of Directors
	For GLOBUS CORPOORATION LIMITED
	Sd/-
	Mahendra C. Shah
Place : Mumbai	Chairman
Date: 14th August, 2019	(DIN No. 01650375)