Today's Top Gainer
Note:Top Gainer - Nifty 50 More
Industrial structure and Development:
The Automobile and Hospitality industry is an integral constituent of growing Indian Industry. It is one of the diversified sectors. Over the generations automobiles and Hospitality sector have influenced every aspect of society in many ways and have changed to keep up with the times.
The year gone by (F.Y. 2017-18) took several development programs to improve business conditions and improve Indias ranking in the global index in the ease of doing business. The roll out of the "Goods and Service Tax" (GST) has been a landmark policy initiative by the government and emerged as a key milestone in history of Indias tax regime. This along with growing public investments and improving environment for infrastructure investments, are creating a platform for sustainable growth.
Based on these trends, India is moving towards claiming its rightful place in the global economy.
OPPURTUNITIES AND THREATS
Indian Auto sector is expected to grow in coming years. The growth in this sector will be driven by new launches in Premium segment Vehicles. Company being in Motor service segment for premium segment vehicle is expected to be benefited. Further with the Restaurant trend going on opportunity in Hospitality division looks good in future.
As both the Segment - Auto Division and Hospitality falls in the category of Luxury segment and not basic necessities, any reduction in the disposable income of the customers will be considered as a threat in future.
SEGMENT WISE PERFORMANCE & FINANCIAL PERFORMANCE
The Company has two reportable segments Auto Division and Hospitality Division.
During the year under review 2017- 18, revenue from auto division remained stable at Rs. 360 Lacs compared to Rs. 355 Lacs in previous year 2016 17. Further Revenue from the Hospitality division showed significant improvement. Revenue from the Hospitality Division stood at Rs. 322 Lacs Compared to Rs. 248 Lacs in previous Year 2016-17.
Profit before Interest and Tax from Auto Division stood at Rs. 202 Lacs and from Hospitality division stood at Rs. 11 Lacs.
The total Revenue of the Company comprising of Automobile and Hospitality Divisions was Rs. 773 Lacs as compared to Rs. 697 Lacs in the previous year. Further the Profit after tax for F. Y. 2017-18 stood at Rs. 158 Lacs as compared to Rs. 122 Lacs in previous year 2016-17.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company has sound and adequate internal control commensurate with its size and nature of business. We constantly upgrade our systems for incremental improvements, because we firmly believe that change is the only permanent thing, and without change we cannot progress. We periodically review the systems. These systems ensure protection of assets and proper recording of transactions and timely reporting.
RISKS, CONCERNS AND THREATS
The Automobile and Hospitality industry is prone to impact due to fluctuations in the economy change in market conditions, competition in the industry and regulations and other factors.
Motor Services (Auto Division) & running Restaurant (Hospitality Division) has huge staff turnover. Rising staff & utility costs, staff retention & customer / guests satisfaction are the major concerns for both these Industries. Profitability will continue to be a concern with high operational costs. To meet this situation, both Auto Division and Hospitality division have to add new customers and additional attention has to be provided towards talent search, training and development of human resources on a long term basis.
Material Development in Human Resource /Industrial Relations front, including number of people employed.
The Company believes that its intrinsic strength is its people. The Company has always paid special attention to recruitment and development of all categories of staff. The Company is committed to adhere to the highest standards of ethical and moral conduct of business operations. To maintain these standards, the Company encourages its employees to come forward and express these concerns without fear of punishment or unfair treatment. Industrial Relations remained stable throughout the year. There were 57 permanent employees on the rolls of Company as on March 31, 2018.
This management discussion and analysis may contain Forward looking statements within the meaning of the applicable laws, rules and judicial pronouncements, relating to the business strategies, prospects, financial performance etc. The actual results may vary significantly or materially than those contemplated / implied in the analysis for various reasons including but not limited to the Government policy, macro economic situation, Business cycles, Financial & liquidity situation, demand slowdown, service risks, material costs, etc. The Company does not undertake to make any declarations / pronouncements of any such eventuality.