startech finance ltd share price Management discussions

Industry Structure and Developments

Due to the stress in the economy post implementation of the Goods and Services Tax and continued after effect of demonetization, substantial changes has taken in the way of business. The implementation of GST took away the margin in the business and the Company thought it fit to stop the business of trading of fabric / cloth.

Your directors thought it fit to stop the fabric trading and has continued it conventional business in financial/ real estate/ construction business for the available opportunities, owing to its expertise in the area. Further, it look forward to utilise its capability to use it as and when the opportunity is available.

Opportunities and Threats

Demand of variety linked with choice and increased population, driving the demand, is an opportunity to be enchased. This offers wide opportunities in business of trading in fabric / cloth. The Business has good potential, however, margins are quite thin. The industry in which Company operate is highly competitive and fragmented. We have a number of competitors offering services similar to us. Further, changes in taxes is major constraint and threat. However, the conventional business of financial/ real estate/ construction business has less of opportunities and being conventional, less threats. Your directors will take the available opportunities, owing to its expertise in the area.

Segment-wise or product-wise performance

The Company operated in only one segment of trading of fabric and all other revenue were treated as other income. However, going ahead, your directors will again take up call for appropriate business which will be its area of operation.

Financial Performance/ Operational Performance

The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013, guidelines issued by the Securities and Exchange Board of India and Generally Accepted Accounting Principles (GAAP) in India. The Company has adopted Ind AS for preparation of Financial Statement.

Your Company has reported total income of Rs. 1,011.55 Lakhs. The net profit after tax for the year amounted to Rs. 5.61 Lakhs and Earning per share amounted to Rs. 2.27.

The Company has tried to utilize the potential and its performance is indicator of same. However, Company do undertakes isolated transactions which is in line with its expertise to maximize the profit.

Outlook

As stated your Board thought it fit to stop the business of trading of fabric / cloth as its paramount importance is maximization of shareholders wealth. Keeping the same as priority your company continues to operate in financial/ real estate/ construction business for the available opportunities, owing to its expertise in the area.

Your directors are further looking forward for the other opportunity available in market and looking forward to utilise the same based on its capability to undertake and effectively execute the same.

Risks and Concerns

Our Company, like any other enterprise, is exposed to business risk which can be internal risks as well as external risks.

Changes in regulatory framework pertaining to fiscal benefit and other related issue will affect the operation and profitability of the Company. Further, Company is also exposed to all market risks.

Risk Management Policy

Risk Management is an integral part of the business process. The risk management process, inter alia provides for review of the risk assessment and mitigation procedure and timely report. Review of the identified risks at periodical interval is important to assess the progress and implementation of control measures. The Audit committee of the Board reviews the risk management periodically.

Internal Controls and their Adequacy

Your Company has adequate internal control systems to monitor business processes, financial reporting and compliance with applicable regulations. Company conducts internal audit through qualified chartered accountant who are given access to all records and information. The Audit committee of the Board reviews internal control systems and their adequacy and recommendations made for corrective action.

Your Company has vigil mechanism and same contains whistle blower policy. The policy provides adequate safeguard against victimization to make easy for employee/ director to report any issue.

Human Resource Development and industrial Relations

Your Company is aware of the challenge in attracting and retaining the talents at the competitive cost. Presently, our company has eleven (11) employees. The relationship with employee remains cordial.

Cautionary Statement

This report may appear to be forward- looking statements. Many factors like change in general economic conditions, amongst others, couid cause actual results to be materially different The Company does not assume any obligation for such variations.

By Order of the.Board of Directors For Prestige Stocks ancfcBtjnds Limited

Place: Mumbai

Date: 3rd September 2018

Acjitya Keqia

Chairman DIN:00802042