Concrete Credit Ltd Management Discussions.

INDUSTRY STRUCTURE AND DEVELOPMENT

As per data released by Central Statistics Office (CSO) "Real" or inflation-adjusted GDP grew 6.8 percent in 2018-19, lower than previous years 7.2 percent. The growth in GDP was slowest since 2014-15.

Slowdown signs have been visible since last year, with GDP growing 6.6 percent in October-December 2018. The national income data have reinforced deceleration signs that were emanating from a slew of shop-end data, such as car and consumer goods sales often seen as proxy indicators to gauge trends in household spending.

The projected GDP ranking as per International Monetary Fund (IMF) outlook October 2018 for year 2019 and 2023:

In 2019, Top ten countries in nominal terms would be: United States, China, Japan, Germany, India, France, United Kingdom, Italy, Brazil and Canada. In ppp terms, Top ten countries would be : China, United States, India, Japan, Germany, Russia, Indonesia, Brazil,United Kingdom and France. In top 10, Eight countries are common in both methods. Others two Italy and Canada are in top 10 on nominal basis, while Russia and Indonesia are in top 10 on ppp basis.

In both methods, United States and China would occupy first two place. US would be the largest economy of world on nominal basis where as China would be largest on ppp basis. US is ahead of China by $7310 billion in 2019. China has overtook US in 2014 on ppp basis. China will remain the worlds largest economy on ppp basis over the next few decades as 2nd ranked US is growing slow and 3rd ranked India is way behind.

In nominal ranking, India which is at 7th place in 2018, is projected to surpass United Kingdom and France in 2019 to become 5th largest economy of the world. France is also projected to overtake United Kingdom. Switzerland would move up to 19th by displacing Turkey. Among top 50, Rank of Iran would down by 10 followed by Argentina, down by 4 positions. Bangladesh might overtake Pakistan.

In top 50 ppp ranking, Egypt, Netherlands, Bangladesh, Peru, and Czech Republic would move up by one position by displacing Australia, Netherlands, South Africa, Austria and Norway, resp. in 2019.

United States (1, 8) is present in both list of top ten GDP and GDP per capita ranking at nominal terms. Germany (4, 18), Canada (10,19), Australia (14,11), Netherlands (17,13) and Switzerland (19,3) are in top twenty list of both ranking. In PPP, no economy is in top ten in both ranking. Four economies in both list of top 20: United States (2, 12), Germany (5, 18), and Saudi Arabia (16, 15).

India is expected to grow by 7% in 2019 and 7.2% in 2020, slightly slower than projected in April because the fiscal 2018 outturn fell short. GDP growth in India in the fourth quarter of FY19 declined to 5.8 % year-on-year, down more sharply than expected from 6.6% in the previous quarter. Annual GDP growth decelerated to 6.8% in FY19 from 7.2% in FY18. However it is expected that GDP growth to inch up again to 7.2% in FY21, helped by recent reforms to improve the business climate, strengthen banks and relieve agrarian distress.

OPPURTUNITIES AND THREATS

(a) Opportunities

The global economy has remained subdued in the fiscal year 2018 - 19 but it is expected to improve more in the coming financial year under the backdrop of new reforms and macro-economic developments. Such a scenario will give our Company the opportunity to increase our stakeholder values and gain their trust. The Company has already started taking initiatives to enhance investor relations. It is has become focused on efficiency and planning to diversify its business into other areas.

(b) Threats

The constant fluctuations in the stock market and excessive competition from fellow competitors are some of the hindrances affecting our business.

OUTLOOK, RISK AND CONCERNS

Your Company has been making use of available opportunities in the market for trading of cotton/fabrics and spread its business in other lucrative businesses too for increasing its profitability and size of business. The Company successfully listed its equity shares with BSE in August 2015 which strengthened the credibility of the company among the stakeholders. The underlying strength of Indian consumption and demand, continues to remain robust. The countrys fabric and clothing markets remain a favorite of global consumers. The performance of your Company is closely linked to those of the fashion and clothing markets. The growth tendencies for 2018-19 are expected to be mostly reflective of the developments in these areas. Your Company is cautiously optimistic in the current scenario and will focus on a well adjusted expansion of business in other related business, resourceful cost management and risk containment measures in order to sustain profitability.

The company is a trading company deals in trading of cotton/ fabrics. However company also invests its funds in capital and debt market and creates an additional source of income in form of dividends and returns receivables on investment made and held by it in other Companies and the capital appreciation of investments. Any adverse financial impact on the operation / business of the invested companies may impact the revenues of the company and also results in diminution in the value of investments.

FINANCIAL PERFORMANCE AND ACCOUNTING TREATMENT

Gross revenues for this financial year stood at Rs3,12,747 as against Rs. 1,14,81,666 in the previous year. Loss before depreciation and taxation was Rs. 5,83,733 as against Profit before depreciation and taxation Rs. 59,380 in the previous year. After providing for depreciation and taxation the net loss of the Company for the year under review was placed at Rs. 5,83,733 as compared to net Profit Rs. 41,030 in the previous year.

However the Company is looking forward to grasp the available opportunities and focusing on permitted avenues. The uncertain state of the global economy however remains a cause of concern.

In the preparation of financial statements, provisions of prescribed accounting standards has been followed and financial statements produces true and fair view of the business transactions of the Company.

HUMAN RESOURCE DEVELOPMENT

The Companys relation with the employees and investors continues to be cordial which are the most valuable resources of our organization.

ADEQUACY OF INTERNAL CONTROL SYSTEM

The companys internal control system and procedures are commensurate with the size of operation and are adequate to ensure -

- safeguard its assets and resources against loss, unauthorized use or disposition,

- compliance with the statutes and regulatory policies and framework, and

- all transactions are authorised, recorded and reported correctly.

The Audit Committee of Directors continually reviews adequacy of internal controls.

CAUTIONERY STATEMENT

This report may contain statements which the Company believes are or may be considered to be "forward looking statement". Actual result may vary from those expressed or implied. Important developments that could affect the companys operations are significant changes in political and economic environment in India, tax laws, exchange rate fluctuation and other incidental factors.

On Behalf of the Board of Directors
Rajeev Kumar Verma
Place: Kolkata Whole-time Director
Date: 30thMay, 2019 DIN:00570540

DECLARATION REGARDING COMPLIANCE WITH CODE OF CONDUCT

The Company has adopted "Code of Business Conduct and Ethics". This code deals with the Good Governance and ethical Practices, which the Company, the Board members and the Senior Management of the Company are expected to follow.

It is hereby affirmed that during the year 2018-19, all the Directors and Senior Managerial personnel have complied with the Code of Conduct and have given a confirmation in this regard.

For Concrete Credit Limited
Rajesh Kumar Daruka Rajeev Kumar Verma
Director Whole-time Director
Place: Kolkata DIN:00521236 DIN:00570540
Date:30th May, 2019