Dee Kartavya Finance Ltd Management Discussions

Overview:

India has maintained a growth in GDP. Our GDP grew @ 7.50 % p.a. in F.Y.2018-19. India is the fastest growing among major economies of the world. The Government under Prime Minister Ship of Mr. Narendra Modi is moving forward with Growth and Governance as its main agenda. Demonetization of currency was a bold step taken by the Prime Minister. Though it had its operational problems and has affected the economy in short term, it is expected to give positive results in a long term. The interest rates and inflation is also coming down.

a) Outlook:

G S T is another major tax reform which is likely to be implemented from 1st July 2017. Like in any major reform, G S T may also have its initial pains more so because of large number of traders are in unorganized sector and it requires lot of understanding of the complex system and preparedness for the same. There are initial concerns but in times to come it is expected that this will lead to better tax compliance and growth in the economy. The organized sector is expected to perform better on the implementation of G S T. Expectation of Growth led good governance, policy actions, have resulted in good sentiments and the foreign investors have investing in Indian stocks in a big way. This has resulted in the rise of "Nifty & Sensex" to high levels. Your company will target to ensure steady operations and deliver high quality projects for its customers.

b) Risk and concerns:

The key threats include, the change/slowdown in implementation of the policies of the Government, delay & short term fall out in implementation of major tax reform like GST, failure to contain actual inflation within a reasonable range, high NPAs of the banks, defaults, governing rules of SEBI and RBI etc. Effect of BRIXIT from Eurozone, new political conditions in US may effect the global economy which may reflect in capital, currency, commodities and debt market substantially.

c) Cautionary Statement:

Statements in this report on Management Discussion and Analysis may be forward looking statements within the meaning of applicable laws or regulations. These statements are based on certain assumptions and reasonable expectation of future events. Actual results could however differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in government regulations, tax regimes, economic developments within India and other incidental factors. The Company assumes no responsibility in respect of the forward- looking statements herein, which may undergo changes in future on the basis of subsequent development.

d) Financial Results:

The financial performance of the Company, for the year ended 31^st March 2019 is summarized below:

Comment on current years performance:

e) Human Resources

The Companys human resource strategy, which is in line with the group strategy, revolves around the development of the individual.

f) Internal Controls

The Company has a proper and adequate system of internal controls befitting its size to ensure that all its assets are safeguarded and protected against loss from unauthorized use and disposal and that all transactions are authorized and reported correctly.

The internal controls are supplemented by internal audits, reviewed by Management and Audit Committee of Board of Directors. The internal control ensures that appropriate financial records are available for preparing financial statements and other data for showing a true and fair picture of the state of affairs of the Company.