1. Industry Structure and Development
The financial year 2013-14 witnessed a low economic growth in almost all the sectorsdue to the policy paralysis of the earlier Government.
Engineering sector forms the backbone of any economy as it is intensely linked withmany other core sectors. The same is true the case with the Indian engineering sectoralso. Design engineering is vital for application of engineering knowledge in industry orfor the advancement of well-being of mankind. This goes to show that this industry hashuge potential in years to come.
2. Opportunities and Threats
Design engineering is the main business activity of the company which requires highlyskilled manpower andthe increase in cost especially the cost of technical personnelrequired tocarry on design engineering activities and competitive market may act as majorthreats which may have adverse bearingon performance of the Company. Further, theclientele of the Company s i limited therefore the profitability of the Company is exposedto greater degree of risk.
The Reserve Bank of India has said that the Indian economic growth is poised for atake-off amid signs of economic reforms, fiscal consolidation and projected improvement ininvestments.The prospect of the Company to a large extent is dependent on themacroeconomic determinants of the Indian industry. The Company caters to the designengineering needs of engineering and project execution companies. The work of the Companyis dependent on the orders received from these companies. It is expected that theGovernment of India would certainlytake some bold steps to stimulate the rate of economicdevelopment of the country. It is expected that in the years to come the company will beable to fetch work from companies in the infrastructure sectors using the designengineering services of the Company.
4. Segment wise or Product wise performance
The global industrial sluggish performance since last three years affected adverselythe Indian industrial performance and engineering industry. Consequently, the demand ofthe services offered by the Company has reducedmaterially and hence due to various microand macro-economic reasons the Company could not undertake any business during the year.Further with the new government taking positive steps for the infrastructure sector yourCompany believes that it will be able to perform well in the financial year 2014-15. Thetotal income of the Company in the Financial Year ended March 31, 2014 is Rs. 26.00 lacand Profit after tax is Rs. 16.08 lac as against total income of Rs. 241.54 lac and Profitafter tax is 215.95 lac in the previous year ended March 31, 2013.
5. Risks and Concerns
The Company provides Design engineering services o t the companies in theinfrastructure sector. The economic slowdown in India has an adverse impact on theInfrastructure Sector of the Country. As your Company provides services to Infrastructuresector, it has also badely felt the impact of the slowdown. Since the Company providesservices to Infrastructure Sector ti will recover as soon as the Infrastructure Sectorrecovers from the economic slowdown.
The Company has a well-defined Risk Management Policy in place.The Company on regularbasis reviews its Risk Management Policy and takes proactive steps to safeguard andminimize any adversity related to the Market, Technology, People, Environment/Regulatory,Financial, Information Technology and Opportunity Risks.,
6. Internal control systems and their adequacy
The Company has an adequate system of internal controls implemented by the managementtowards achieving efficiency in operations, optimum utilisation of resources and effectivemonitoring thereof and compliance with applicable laws. A qualified and independent AuditCommittee of the Board of Directors time to time upgardes these systems in line with thebest practices and standards on the internal control systems and procedures.
7. Human Resource Development
Your Company recognizes the importance of human capital and believes that the humancapital is the key engine for its growth and competitiveness,however the Company did nothave any employee during the year since it did not have enough order book during the year.
Chander Bhan Wadhwa , Director
Kulbhushan Arora , Director
Company Head Office / Quarters:
106 Vishwadeep Tower Plot No 4,
District Centre Janakpuri,
Phone : Delhi- / Delhi-
Fax : Delhi- / Delhi-
Web : http://www.fusionfittings.com
Link Intime India Pvt Ltd
Narang Tower,44 Community Centre,Naraina Ind Area,New Delhi-110028