Amrapali Capital and Finance Services Ltd Management Discussions.

The Managements views on the Companys Performance and outlook are discussed below:

Economic Outlook:

Global growth has eased but remains robust and is projected to reach 3.5 percent in 2020 as compared to 3.2 percent in 2019. It is already increasing at a slow pace and is further expected to edge down over the next two years as global slack dissipates, trade and investment moderate, and financing conditions tighten. Growth in advanced economies is forecast to decelerate toward potential rates as monetary policy is normalized and the effects of U.S. fiscal stimulus wane. In emerging market and developing economies (EMDEs), growth in commodity importers will remain strong, while the rebound in commodity exporters is projected to mature over the next two years. For the first time since 2010, the long-term (10-year-ahead) consensus forecast for global growth appears to have stabilized. Although this development could signal that the legacies of the global financial crisis are fading, past experience cautions that long-term forecasts are often overly optimistic. While well below levels expected a decade ago, these forecasts also remain above potential growth estimates. Moreover, risks to the outlook are tilted to the downside. They include disorderly financial market movements, escalating trade protectionism, and heightened geopolitical tensions. EMDE policymakers should rebuild monetary and fiscal policy buffers and be prepared for rising global interest rates and possible episodes of financial market turbulence. In the longer run, adverse structural forces continue to overshadow long-term growth prospects implying that EMDEs need to boost potential growth by promoting competitiveness, adaptability to technological change, and trade openness. These steps will help mitigate an expected growth slowdown over the next decade, especially if long term growth forecasts fall once again short of expectations. Rapid Growth among the major emerging markets over the past 20 years has boosted global demand for commodities. The seven largest emerging markets (EM7) accounted for almost all of the increase in global consumption of metals and two-thirds of the increase in energy consumption over this period. As these economies mature and shift towards less commodity-intensive activities, their demand for most commodities may level off. While global energy consumption growth may remain broadly steady, global metals and foods demand growth could slow by one-third over the next decade. This would dampen global commodity prices. For emerging market and developing economies that depend on raw materials for government and export revenues, these prospects reinforce the need for economic diversification and the strengthening of policy frameworks.

Indian Economy

A normalisation in the cash conditions following the demonetization of late 2016 and the fading of disruptions from year 2017s launch of the Goods and Services Tax should facilitate the economic recovery in FY 2020. Nonetheless, risks of fiscal slippage in the run-up to elections next year, concerns over Indias banking sector, increasing global trade tensions and higher oil prices all cloud prospects. Our panel states that Indias GDP growth rate of 6.2% in FY 2019 and expects the same to be 6.7% in FY 2020. The Board would also project the growth of the Company if such an economy projection turns out to be fruitful as the main activity of the Company is directly related with the Economic Conditions of the country.

Risks and concerns

The very nature of the Companys business makes it susceptible to various kinds of risks. The Company encounters market risk, credit risk and operational risks in its daily business operations. The Company has framed a comprehensive Risk Management Manual which inter-alia lays down detailed process and policies in the various facets of risk management function. The risk management review framework provides complete oversight to various risk management practices and process. The framework and assessment remains dynamic and aligns with the continuing requirements and demands of the market. The Company has also implemented surveillance mechanism to deal with various trades related risks and adopted a surveillance policy in line with the regulatory requirements.

Internal control systems and their adequacy

Internal Control system and adequacy Internal Control measures and systems are established to ensure the correctness of the transactions and safe guarding of the assets. Thus, internal control is an integral component of risk management. The Internal control checks and internal audit programmers adopted by our Company plays an important role in the risk management feedback loop, in which the information generated in the internal control process is reported back to the Board and Management. The internal control systems are modified continuously to meet the dynamic change. Further the Audit Committee of the Board of Directors reviews the internal audit reports and the adequacy and effectiveness of internal controls.

Financial Highlights: (Rs. in Lakhs)
Particulars F.Y. 2018-19 F.Y. 2017-18
Revenue From Operations 396387.58 (3123.23)
Other Income 443.43 597.86
Total Income 396831.02 (2525.37)
Less: Total Expenses before Depreciation, Finance Cost and Tax 396591.19 (3154.13)
Profit before Depreciation, Finance Cost and Tax 239.83 628.76
Less: Depreciation 49.77 60.35
Less: Finance Cost 111.79 506.52
Profit Before Tax 78.26 61.89
Less: Current Tax 18.2 13.45
Less: Deferred tax Liability (Asset) 2.19 2.03
Profit after Tax 57.87 46.41

During the financial year 2018-19 the revenue from operation stood at Rs. 396387.58 Lakhs as compared to a total loss of (3123.23) Lakhs in the previous financial year 2017-18. The main reasons of increase in the revenue is due to brokerage income and trading in Gold, Silver, Bonds and shares in the financial year 2018-19.The other income of the Company stood as 443.43 Lakhs in the financial year 2018-19 as compared to Rs.597.86 Lakhs in financial year 2017-18. Further, during the financial year 2018-19, the total expenses have increased from Rs. 2587.26 lakhs to 396752.75 lakhs. The Net Profit after Tax for the financial year stood at Rs.57.87 Lakhs in comparison to that of Rs. 46.41 Lakhs in previous year 2017-18 i.e. increase in profit by 24.69% as compared to previous year.

Human Resources

One of the key pillars of the Companys business is its people. The Companys HR policies and practices are built on Amrapali Group core values of Integrity, Passion, Speed, Commitment and Seamlessness. The Companys focus is on recruitment of good talent and retention of the talent pool. The Company is hopeful and confident of achieving the same to be able to deliver results and value for our shareholders. As on March 31, 2019, the total employees on the Companys rolls stood at 25.

Cautionary Note

Statements in this Report, describing the Companys objectives, projections, estimates and expectations may constitute forward looking statements within the meaning of applicable laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events. These statements are subject to certain risks and uncertainties. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results may be different from those expressed or implied since the Companys operations are affected by many external and internal factors, which are beyond the control of the management. Hence the Company assumes no responsibility in respect of forward-looking statements that may be amended or modified in future on the basis of subsequent developments, information or events.