GLOBAL ECONOMY
Following a turbulent year in 2022, the global economy is seen
demonstrating signs of resilience in 2023. The geopolitical tensions caused by the
prolonged Russia-Ukraine war, supply chain disruptions, higher inflation, and tighter
monetary conditions made it hard to complete the economic recovery in 2022-23. Economic
growth remains low by historical standards and financial risks have increased.
International trade was also severely impacted in 2022-23 due to global economic slowdown,
persistent inflation, supply chain bottlenecks, and subdued consumer sentiments. However,
economic conditions have started showing signs of stabilisation in early 2023.The Economic
Survey 2022-23 comes when global uncertainties are rife. Barely had the pandemic receded,
and the war in Ukraine broke out in February 2022. Prices of food, fuel and fertilizer
rose sharply. As inflation rates accelerated, central banks of advanced countries
scrambled to respond with monetary policy tightening. Many developing countries,
particularly in the South Asian region, faced severe economic stress as the combination of
weaker currencies, higher import prices, the rising cost of living and a stronger dollar,
making debt servicing more expensive, proved too much to handle.
INDIAN ECONOMY
For India, 2022 was special. It marked the 75th year of Indias
Independence. India became the worlds fifth largest economy, measured in current dollars.
Come March, the nominal GDP of India will be around US$ 3.5 trillion. In real terms, the
economy is expected to grow at 7.8 percent for the year ending March 2023. This follows an
8.7 per cent growth in the previous financial year. The rise in consumer prices has slowed
considerably. The annual rate of inflation is below 6 per cent. Wholesale prices are
rising at a rate below 5 per cent. The export of goods and services in the first nine
months of the financial year (April - December) is up 16 per cent compared to the same
period in 2021-22. Although the high oil price this year compared to last inflated Indias
import bill and caused the merchandise trade deficit to balloon, concerns over the current
account deficit and its financing have ebbed as the year rolled on. Foreign exchange
reserve levels are comfortable and external debt is low.
Indias foreign exchange reserves, which were at an all-time high at
USD 645 billion in October 2021 have declined to 471.496 billion in October 2022. This is
because of the appreciation of the dollar, the RBI selling dollars to protect the rupee
from depreciating too much and the higher prices the country has to pay for imports of
oil, gas and other goods and services. The large reduction in Indias foreign exchange
reserves is a cause for concern and can affect the economy.
India is contributing more than 12% to global growth on average during
the last five years. This makes India among the fastest-growing major economies in the
world.
The Indian economy is expected to have recorded a growth of 7% in real
GDP in 2022-23. This can be accredited to strong global headwinds. The slew of measures
announced by Reserve Bank of India (RBI) to enhance foreign exchange inflows should help
rupee to outperform its peers in emerging market economies, experts said. RBI said it has
been closely and continuously monitoring the liquidity conditions in the forex market and
has stepped in as needed in all its segments to alleviate dollar tightness with the
objective of ensuring orderly market functioning. It announced five measures to enhance
foreign exchange inflows. The Indian rupee depreciated by 36 paise to close at a
three-week low of 81.88 against the US dollar after the Economic Survey 2022-23.
After COVID-19 was delivered an enormous global shock, leading to steep
recessions in many countries. Many countries have provided large- scale macro-economic
support to alleviate the economic blow, which has contributed to a recent stabilization in
financial markets. Central banks in advanced economies have cut policy rates and taken
other far-reaching steps to provide liquidity and to maintain investor confidence.
Stronger multilateral cooperation and a more balanced policy mix at the national level,
considering available monetary and fiscal space, are essential for strengthening economic
activity and forestalling downside risks. Building financial resilience, strengthening
growth potential, and enhancing inclusiveness remain overarching goals.
COMPANY BUSINESS:
The Company is a RBI registered Full Fledge Money Changer.
In money changing, the Company provides an array of products and
services including buying and selling of foreign currency notes, servicing of co-branded
International prepaid multi currency travel cards, issuance of foreign currency demand
drafts, travellers cheques and outward telegraphic remittances, including outbound
remittances towards student fees, film shoots, tour remittances etc. and also extend
encasements of foreign currency demand drafts, travellers cheques and forex prepaid
cards.
OUTLOOK, OPPORTUNITIES AND THREATS:
Every year sees global currencies jostle for position, although lately
it has been a race to the bottom, with more than 30 central banks around the world cutting
interest rates in a desperate bid to avoid falling into recession.
Low interest rates typically mean a weak currency, as investors can get
a better return on their money elsewhere.
The Government of Indias initiatives in boosting up its public
expenditure on Infrastructure development will give an impetus to its "MAKE IN INDIA
policy. India is being the most sought after Investment destination for many Investors
world over. Hence, this augurs well for the Company business as there will be inflow of
Capital Investment giving a boost to Companys Money changing business.
Also surge in growth of travel and hotel industry shall lead to
betterment of companys operations and the company is looking forward for the same.
Further, the comparative slower growth globally as compared to Asian
Countries coupled with the challenges faced through the advancement of the world digital
economy and India too encouraging digitisation, the Companys management though expects
new challenges, it does not foresee any immediate threat to its core business activities
and in fact its efforts are being channelized to seize the newer methodologies to counter
the challenges faced.
RISKS AND CONCERNS:
Company has laid down a detailed risk management policy, customer
identification and acceptance procedure. The financial risks involved are evaluated
through a well laid down procedure. However, all the inherent business risks are
adequately insured by the Company. Exchange rate volatility is not only faced by the
Company but is attuned to the forex industry globally. To mitigate the said risks Company
closely monitors the exchange rate movement.
INTERNAL CONTROL SYSTEM:
The Company has already put in place an elaborate Internal Control and
Internal Audit systems. The system ensures adequate periodical checks and balances are
exercised. Continuous monitoring by the Internal Audit team of these checks and balances
due to the inherent risks associated with the nature of Companys activities ensures
compliance of the regulatory framework of RBI & FIU. The Audit team is suitably guided
and updated by the Audit Committee of the various regulatory requirements from time to
time. The Company has put in place a strict credit policy for extending credit to its
corporate customers. The same is continuously monitored and reviewed periodically for any
updations to ensure funds at Companys disposal are being judiciously utilized and
efficiently managed vis- a-vis the business requirements. The Management Discussion and
Analysis explaining the objectives of the Company, the opportunities and threats, the
outlook for the future, the risks and concerns have to be read with the meaning of
relevant applicable laws and regulations. The actual above. As in any other business the
performance of the Company is totally dependent on the market conditions of demand and
supply, the volatility in exchange rate, the Government policy & regulations, the
economy of the country and other factors.
FINANCIAL PERFORMANCE
This year had a very bad impact on companys financial as well as
operational performance
The Company has incurred Net loss for the year ended 31st March 2023 of
Rs.-0.04/- Lakhs. Further there has been no significant changes (i.e. change of 25% or
more as compared to the immediately previous financial year) in key financial ratios of
the Company.
The company is in process to take important steps in the area of
managing the business as the amount of losses in the company is increasing from last some
years and unable to recover any amount.
The company have filed application for Capital reduction of the company
and scheme of Capital Reduction Provides for provides for undertaking of capital reduction
of CHARMS INDUSTRIES LIMITED (hereinafter referred as "CIL or "the
Company"), whereby the paid-up share capital of the "CIL" shall be reduced
from Rs.4,10,61,000/- divided into 41,06,100 Equity Shares of Rs.10/- each fully paid-up
to Rs.41,06,100/- divided into 41,06,100 equity shares of Re.1/-each fully paid-up and
that such reduction be effected by cancelling the paid up capital amounting to Rs
3,69,54,900/- which has lost or is unrepresented by available tangible assets. Further,
the Company also propose to cancel the capital reserve account of Rs.31,46,530/- by
adjustment in debit balance of Profit & Loss Account and therefore the total amount of
adjustment in debit balance of Profit & Loss Account is aggregating to
Rs.4,01,01,430/-.
Further the reduction will be to the extent of Rs.9/- per share upon
each of the 41,06,100 equity shares which have been issued by reducing the paid-up value
of all the shares in the capital of the Company from Rs.10/- per share to Re.1/- per
share. The debit balance of Profit & Loss Account of the Company will be written off
to the extent of amount of the aforesaid reduction of share capital and Capital Reserve.
Details of significant changes (i.e. change of 25% or more as compared
to the immediately previous financial year) in key financial ratios, along with detailed
explanations there for, including:
Sr No. Particulars
of Ratio |
As at 31st March, 2023 |
As at 31st March, 2022 |
1. Debtors Turnover |
- |
- |
2. Inventory Turnover |
- |
- |
3. Interest Coverage Ratio |
- |
- |
4. Current Ratio |
0.76 |
1.55 |
5. Debt Equity Ratio |
0.05 |
0.01 |
6. Debt service Coverage ratio |
- |
- |
7. Operating Profit Margin (%) |
- |
- |
8. Net Profit Margin (%) |
- |
- |
9. Net capital Turnover Ratio |
-0.34 |
- |
10. Trade payable Turnover
Ratio |
- |
- |
Details of any change in Return on Net Worth as compared to the
immediately previous financial year along with a detailed explanation thereof: Not
Applicable
SEGMENT WISE PERFORMANCE:
Our companys operations belong to a single segment and therefore no
segment wise performance given.
MATERIAL DEVELOPMENT IN HUMAN RESOURCES:
Your Company being part of the sector, human resources has always been
the main pillar for all the activities of the Company. Customer Satisfaction being the
ultimate objective of the Company, to ensure sustained business growth. Companys focus
has been to improve the staffs contribution towards the various services offered. To
achieve this objective Company has ensured that all its employees receive continuous
update on the Companys policies as well as the regulatory framework.
For and on behalf of the Board Sd/-
HarsadShantilal Gandhi
Chairman & Director (DIN: 01056779)
Place: Ahmedabad Date: 04/09/2023
Disclosures Regarding Remuneration Required Under Section 197(12) Of
The Companies Act, 2013 Read with Rule 5(1) of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014
Sr. No. Requirements |
Disclosure |
I. The ratio of remuneration to
each director to the median remuneration of the employees for the financial year |
MD |
NIL |
II. The percentage increase in
remuneration of each director, Chief Financial Officer, Chief Executive Officer, Company
Secretary in the financial year |
- |
NIL |
III. The percentage increase in
the median remuneration of employees in the financial year |
No Increase |
IV. The number of permanent
employees on the rolls of the Company as on 31st March, 2023. |
3 |
V. Average percentile increase
already made in the salaries of employees other than the managerial personnel in the last
financial year and its managerial remuneration and justification thereof and point out if
there are any exceptional circumstances for increase in the managerial remuneration. |
Nil |
VI. Affirmation that the
remuneration is as per the remuneration policy of the Company |
Yes, it is
confirmed |
For and on behalf of the Board Sd/-
Harsad Shantilal Gandhi Chairman & Director (DIN: 01056779)
Place: Ahmedabad Date: 04/09/2023
+91-9892691696
