golkonda engineering enterprises ltd Management discussions

a) Structure and Developments, Opportunities and Threats, Performance, outlook, Risks and Concerns:

The Company achieved a turnover of Rs. 1,67,11,22,524/-during the current year as against Rs. 1,01,56,17,252/- during the previous year.

The market is expected to show signs of pickup during the current year 2017-18. With inventory available on the ground and with low demand, the selling prices will be under pressure. Further, the increase in the cost of power and consumables will have an impact on the margins.

b) Internal Control Systems and their Adequacy:

Management has put in place effective Internal Control Systems to provide reasonable assurance for: Safeguarding Assets and their usage. Maintenance of Proper Accounting Records and Adequacy and Reliability of the information used for carrying on Business Operations.

Key elements of the Internal Control Systems are as follows: i) Existence of Authority Manuals and periodical updating of the same for all Functions. (ii) Existence of clearly defined organizational structure and authority. (iii) Existence of corporate policies for Financial Reporting and Accounting.

(iv) Existence of Management information system updated from time to time as may be required. (v) Existence of Annual Budgets and Long Term Business Plans. (vi) Existence of Internal Audit System.

(vii) Periodical review of opportunities and risk factors depending on the Global / Domestic Scenario and to undertake measures as may be necessary.

Normal foreseeable risks of the Companys assets are adequately covered by comprehensive insurance. Risk assessments, inspections and safety audits are carried out periodically.

c) Financial performance with respect to operational performance.

The details of the financial performance of the Company are appearing in the Balance Sheet, Profit & Loss Account and other financial statements etc. appearing separately. Highlights for the year 2017-18 are as under:

Sales for the year 2017-18	1,67,11,22,524
Profit After Tax	1,73,04,230
Paid up equity share capital as on 31st March, 2018	4,14,47,700

The financial performance of the Company has been explained in the Directors Report of the Company for the year 2017-18 appearing separately

d) Human Resources Development and Industrial Relations:

The Company has constituted an Internal Complaint Committee (ICC) in pursuant to the provisions of Sexual Harsassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 for prevention, prohibition and redressal of complaints / grievances on the sexual harassment of women at workplaces. The Company continued the welfare activities for the employees, which include Medical Care, Group Insurance, and Canteen Facility. To enrich the skills of employees and enrich their experience, the Company arranges, Practical Training Courses by Internal and External Faculty.

e) Cautionary Statement:

Statements in the Management Discussion and Analysis and Directors Report describing the Companys strengths, strategies, projections and estimates, are forward-looking statements and progressive within the meaning of applicable laws and regulations. Actual results may vary from those expressed or implied, depending upon economic conditions, Government Policies and other incidental factors. Readers are cautioned not to place undue reliance on the forward looking statements.