Artech Power Products Ltd Management Discussions.
With the renewed focus by Government of India in the area of manufacturing "Make in India" and also creating environment of "Ease of doing Business in India", we foresee scope of potential growth in the manufacturing sector in India. Further, the Government of India has recognized the importance of renewable green energy and has set an ambitious target of becoming one of the worlds largest green energy producers. To boost the countrys solar power capacity, the Government has approved the national solar mission capacity to 100GW by 2022 and wind power capacity of 60,000 MW. Further, continuous government support for agriculture, rural development and adoption of improved agricultural practices is expected to drive sustainable growth in the agricultural sector.
Opportunities and Threats
The Company intends to take advantage of the opportunity to grow its offerings in power sector, trading and merchandising in agro-commodities. Volatile market conditions, low GDP growth, high inflation, slowdown in the investment cycle, current account deficit and risk of venturing into new business are threats for every business. While the near term conditions pose a challenge for the Company, the medium to long term trends based on rising incomes, aspirations, low consumption levels, are positive and an opportunity for the Company.
The company has a favorable outlook and looks forward for starting its operation and venturing into new sectors. The Company will assess the industry environment and decided future course of action.
Risk and Internal Control adequacy
Your Company has an elaborate Risk Management procedure. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis. There are adequate internal control systems commensurate with the size of the company and nature of its business. The internal checks and balances are augmented by a formal system of internal and statutory audit. Significant audit observations and follow up actions thereon are reported to the Audit Committee. The Audit Committee reviews adequacy and effectiveness of the Companys internal control environment and monitors the implementation of audit recommendations, including those relating to strengthening of the Companys risk management policies and systems.
Financial performance with respect to operational performance The Company has earned operational profits during the financial year.
Human Development in Human Resources/Industrial Relations
The Company attaches the highest importance to human resources and has started inducting talent from various domains of experience and knowledge. The Company places significant emphasis on Leadership Development to build up the capacity and capability of the future leaders.