Managements discussion and analysis of the financial condition and results of
operations include forward looking statements based on certain assumptions and
expectations of future events. The Company cannot assure that these assumptions and
expectations are accurate. Although the Management has considered future risks as part of
the discussions, future uncertainties are not limited to Management perceptions.
1. Review of Indian Economy:
India has emerged as the fastest-growing major economy in the world and is expected to
be one of the top three economic powers in the world over the next 10-15 years, backed by
its robust democracy and strong partnerships. Indias nominal gross domestic product (GDP)
at current prices is estimated to be at Rs. 232.15 trillion (US$ 3.12 trillion) in FY22.
India is the third- largest unicorn base in the world with over 100 unicorns with a total
valuation of US$ 332.7 billion. India needs to increase its rate of employment growth and
create 90 million non-farm jobs between 2023 and 2030s, for productivity and economic
growth according to McKinsey Global Institute. The net employment rate needs to grow by
1.5% per year from 2023 to 2030 to achieve 8-8.5% GDP growth between 2023 and 2030.
According to data from the Department of Economic Affairs, as of March, 2023, foreign
exchange reserves in India reached the US$ 578.4 billion mark. To cushion rupee
depreciation, RBI has been intervening in the forex market via both spot and forward
positions.
2. Industry Structure and developments:
Services exports comprise a major part of the total export from India. The services
sector had targeted USD 300 billion but accomplished USD 322.72 billion. Buoyed by a
significant jump in exports during 2022-23, Services Export Promotion Council (SEPC) said
the healthy growth trend will continue and shipments are expected to reach up to USD 400
billion this fiscal i.e. 2023-24. During 2022-23, the countrys services exports rose by
42 per cent to USD 322.72 billion from USD 254 billion in 2021-22, according to
provisional data from the commerce ministry.
3. Strength, Opportunities, Threats
Strength:
? Established operations and proven track record ? Quality Assurance and Standards ?
Experienced Management Team ? Satisfied customer with quality and service ? Smooth flow of
operations ? Strong business model
Opportunities:
? Potential to provide other value-added services ? Expanding new geographical area ?
Opportunities in Indian Market
? Government thrust for growth in Indian Economy will boost the Services and logistics
Industry.
Threats:
? Increase Competition from Big Players ? Change in Government Policies ? Rising labour
wages ? Margins may be constrained in the future
? There are no entry barriers in our industry which puts us to the threat of
competition from new entrants.
4. Segment Wise - Product wise performance:
During the year under review, the Company operates into the different segments which
are Transportation, Manpower & Merchandise Cleaning Charges and sales & Supply of
goods.
Details of Segment wise Revenue of the Company:
Transportation: The Total Revenue from Transportation is Rs. 55.68/- Lakh Manpower
& Merchandise Cleaning Charges: The Total Revenue from Manpower & Merchandise
Cleaning Charges is Rs. 4612.70/- Lakh Sales & Supply of goods: The Total Revenue from
Sales & Supply of goods is Rs. 2643.37/- Lakh
5. Outlook:
The Continual growth in the Indian sector is necessary to give necessary support to the
industry. The company is making all efforts to accelerate the growth of its business. It
expects to improve its position in the market by focusing in the technologically advanced
and more profitable market segment and working aggressively in the area of productivity,
efficiency and cost reduction.
6. Risks and Concerns
The Industry is exposed to the following risk and concerns:
Political instability or a change in economic liberalization and deregulation
policies could seriously harm business and economic conditions in India generally and our
business in particular.
The Government of India has traditionally exercised and continues to exercise influence
over many aspects of the economy. Our business and the market price and liquidity of our
Equity Shares may be affected by interest rates, changes in Government policy, taxation,
social and civil unrest and other political, economic or other developments in or
affecting India. The rate of economic liberalization could change, and specific laws and
policies affecting the information technology sector, foreign investment and other matters
affecting investment in our securities could change as well. Any significant change in
such liberalization and deregulation policies could adversely affect business and economic
conditions in India, generally, and our business, prospects, financial condition and
results of operations, in particular.
Uncertain Demand:
Aggregately, economic volatility and cyclical demand cause fluctuations in production.
On a more granular level, consumer preference can cause spikes in demand for an individual
products or company. Efficient lean capabilities must be in place to keep inventory
aligned with demand.
We require high working capital for our smooth day to day operations of business and
any discontinuance or our inability to acquire adequate working capital timely and on
favourable terms may have an adverse effect on our operations, profitability and growth
prospects.
Our business demands substantial funds towards working capital requirements. In case
there are insufficient cash flows to meet our working capital requirement or we are unable
to arrange the same from other sources or there are delays in disbursement of arranged
funds, or we are unable to procure funds on favourable terms, it may result into our
inability to finance our working capital needs on a timely basis which may have an adverse
effect on our operations, profitability and growth prospects.
We require certain approvals and licenses in the ordinary course of business and are
required to comply with certain rules and regulations to operate our business, and the
failure to obtain, retain and renew such approvals and licenses in timely manner or comply
with such rules and regulations or at all may adversely affect our operations.
We require several statutory and regulatory permits, licenses and approvals to operate
our business. Many of these approvals are granted for fixed periods of time and need
renewal from time to time. Non-renewal of the said permits and licenses would adversely
affect our
Companys operations, thereby having a material adverse effect on our business, results
of operations and financial condition. There can be no assurance that the relevant
authorities will issue any of such permits or approvals in the time-frame anticipated by
us or at all. Further, some of our permits, licenses and approvals are subject to several
conditions and we cannot provide any assurance that we will be able to continuously meet
such conditions or be able to prove compliance with such conditions to the statutory
authorities, which may lead to the cancellation, revocation or suspension of relevant
permits, licenses or approvals. Any failure by us to apply in time, to renew, maintain or
obtain the required permits, licenses or approvals, or the cancellation, suspension or
revocation of any of the permits, licenses or approvals may result in the interruption of
our operations and may have a material adverse effect on the business.
7. Internal Control systems and its adequacy
The Company has an effective and reliable internal control system commensurate with the
size of its operations. At the same time, it adheres to local statutory requirements for
orderly and efficient conduct of business, safeguarding of assets, the detection and
prevention of frauds and errors, adequacy and completeness of accounting records and
timely preparation of reliable financial information. The efficacy of the internal checks
and control systems is validated by self-audits and internal as well as statutory
auditors.
8. Discussion on financial performance of the Company with respect to
operational performance.
Share Capital
The Paid-up Share Capital of the Company as on 31st March, 2023 is Rs. 13,51,81,920/-
(Rupees Thirteen Crore Fifty-One Lakh Eighty-One Thousand Nine Hundred and Twenty only)
divided into 1,35,18,192 (One Crore Thirty-Five Lakh Eighteen Thousand One Hundred and
Ninety- Two) Equity Shares of Rs. 10 /- (Rupees Ten only).
Reserves and Surplus
The reserves and surplus are Rs. 4170.15 Lakh as on the end of the current year.
Total Income
During the year under consideration, the total income was Rs. 8270.96 Lakh as against
Rs. 7210.3 Lakh during the previous year.
9. Material developments in Human resources / industrial Relations front,
including number of people employed
Human resource is an asset to any industry. We believe that our employees are the key
to the success of our business and hence we have a structured organization plan to take
care of the growth and motivation aspects of our team. Our manpower is a prudent mix of
experienced and young personnel which gives us the dual advantage of stability and growth.
Our work processes and skilled resources together with our strong management team have
enabled us to successfully implement our growth plans. The details of department wise
number of employees are given here below:
The total strength of manpower as on 31/03/2023 is 1896 employees. The number of
employees is dependent on the number of projects in hand as our work is labour intensive
involving deployment of Manpower for Mechanized Cleaning, Catering, Housekeeping,
Conservancy Service, Security Service, Catering Services, Contractual services, Suppling
Goods & Services, Logistics and other related services.
10. Key Financial Ratios: |
|
|
|
Ratios |
2023 |
2022 |
Change |
| Current Ratio |
2.60 |
2.03 |
0.57 |
| Debt Equity Ratio |
0.33 |
0.51 |
(0.18) |
| Return on Equity Ratio |
0.22 |
0.06 |
0.16 |
| Inventory Turnover Ratio |
30.56 |
35.39 |
(4.83) |
| Trade Receivable Turnover Ratio |
1.46 |
1.30 |
0.16 |
| Trade Payable Turnover Ratio |
0.53 |
1.18 |
(0.65) |
| Net Capital Turnover Ratio |
1.68 |
2.20 |
(0.52) |
| Net Profit Ratio |
13.23 |
3.02 |
10.21 |
| Return on Capital Employed |
0.20 |
0.08 |
0.12 |
11. Cautionary Statement
This report contains forward-looking statements based on the perceptions of the Company
and the data and information available with the company. The company does not and cannot
guarantee the accuracy of various assumptions underlying such statements and they reflect
Companys current views of the future events and are subject to risks and
uncertainties. Many factors like change in general economic conditions, amongst others,
could cause actual results to be materially different.
Place: Kolkata |
For and on behalf of the Board of Directors of |
Date: 24.08.2023 |
DYNAMIC SERVICES & SECURITY LIMITED |
|
SD/- |
SD/- |
|
Jugal Kishore Bhagat |
Rekha Bhagat |
|
(Managing Director) |
(Director) |
|
DIN: 02218545 |
DIN: 03564763 |
+91-9892691696
