AKG Exim Ltd Management Discussions.
INDUSTRY STRUCTURE AND DEVELOPMENT
The World Bank forecasts global economic growth to edge up to 2.6 percent in 2019 after a much weaker- than-expected 2018, before inching up 2.7 percent in 2020, Growth in emerging market and developing economies is expected to stabilize next year as some countries move past periods of financial strain, but economic momentum remains weak as the recovery in investment, manufacturing, and trade continues, and as commodity- exporting developing economies benefit from firming commodity prices.
Emerging and developing economy growth is constrained by sluggish investment, and risks are tilted to the downside. These risks include rising trade barriers, renewed financial stress, and sharper-than-expected slowdowns in several major economies, the World Bank says in its June 2019 Global Economic Prospects: Heightened Tensions, Subdued Investment. Structural problems that misallocate or discourage investment also weigh on the outlook.
Growth among advanced economies as a group is anticipated to slow in 2019, especially in the Euro Area, due to weaker exports and investment. U.S. growth is forecast to ease to 2.5% this year and decelerate to 1.7% in 2020. Euro Area growth is projected to hover around 1.4% in 2020-21, with softness in trade and domestic demand weighing on activity despite continued support from monetary policy.
Growth among emerging market and developing economies is projected to fall to a four-year low of 4% in 2019 before recovering to 4.6% in 2020. A number of economies are coping with the impact of financial stress and political uncertainty. Those drags are anticipated to wane and global trade growth which is projected to be the weakest in 2019 since the financial crisis a decade ago -- is expected to recover somewhat.
OVERVIEW OF DEVELOPMENTS IN INDIA DURING 2018-19
India has emerged as the fastest growing major economy in the world and is expected to be one of the top three economic powers of the world over the next 10-15 years, backed by its strong democracy and partnerships.
Indias GDP is estimated to have increased 7.2 per cent in 2017-18 and 7 per cent in 2018-19. India has retained its position as the third largest startup base in the world with over 4,750 technology start-ups.
Indias labour force is expected to touch 160-170 million by 2020, based on rate of population growth, increased labour force participation, and higher education enrolment, among other factors, according to a study by ASSOCHAM and Thought Arbitrage Research Institute.
Indias foreign exchange reserves were US$ 405.64 billion in the week up to March 15, 2019, according to data from the RBI. During 2018-19 (up to February 2019), merchandise exports from India have increased 8.85 per cent year-on-year to US$ 298.47 billion, while services exports have grown 8.54 per cent year-on-year to US$ 185.51 billion.
Our Company is in the Business (Import/ Export) dealing in products i.e. export of non-Basmati Rice and Import of Metal Scraps (Ferrous and Non-Ferrous). Our Exports (Non-Basmati Rice) are mainly to West African Countries. We are importing metal Scraps from Australia, U.K, Canada, Europe, West Africa, U.S.A.
The turnover during the year 2018-19 has touched of Rs.117 Crores approx. excluding the other income.
The Company has already set up a good marketing team as is evident from increase in turnover.
The Company has an internal control system, commensurate with the size of its operations. Adequate records and documents were maintained as required by laws. The Companys audit Committee reviewed the internal control system. All efforts are being made to make the internal control systems more effective.
SEGMENT WISE REPORTING
During the year under review, Company has achieved all sales under one segment and hence segment wise break up is not available..
RISKS AND CONCERNS
In any business, risks and prospects are inseparable. As a responsible management, the Companys principal endeavor is to maximize returns. The Company continues to take all steps necessary to minimize losses through detailed studies and interaction with experts.
Statement in this Managements Discussion and Analysis detailing the Companys objectives, projections, estimates, expectations or predictions are forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and Indian demand-supply conditions, feedstock availability and prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which the Company conducts business and other factors such as litigation and labour negotiations.
DISCLOSURE OF ACCOUNTING TREATMENT
The Company has followed all the treatments in the Financial Statements as per the prescribed Accounting Standards.
|By Order of the Board of Directors|
|For AKG Exim Limited|
|RAJEEV GOEL||MAHIMA GOEL|
|DIN: 01507297||DIN: 02205003|
|Place: New Delhi|
|Date: 27th July, 2019|