G D Trading & Agencies Ltd Management Discussions.

INDUSTRY STRUCTURE AND DEVELOPMENT:

Although the monsoon arrived late, its intensity largely made up for the initial deficient rainfall and bodes well for the economy in general. However, the sudden collapse of certain large financial corporate resulted in a trust and liquidity crisis and although there were a series of cuts in the repo rates by the RBI due to benign inflation, there was no improvement in the economic situation, both macro and micro.

Further financial sector reforms were carried out through the Insolvency and Bankruptcy Code to redress the delays in resolution due to interpretation and litigation and to make it more effective.

OPPORTUNITIES AND THREATS:

The Company is operating in an environment, which is becoming more and more competitive and the margins in this continue to be under pressure. The Company feels this business is high growth area. The long term prospects for Indian economy remains bright owing to the growth of internal consumption driven by the countrys demographic dividend, rapid urbanization, growth of manufacturing and infrastructure development.

In the short term, with revival of business confidence coupled with positive actions on reforms, infrastructure and inclusive growth by the government. The overall business sentiments in the country have turned positive after the election of a stable government at the centre; however it is imperative to translate these sentiments into actions to create real gains for the economy. All programs must be implemented with desired speed to continue attracting capital investments and drive growth. Your Company continues to achieve this by both investing in core technology areas and by combining the knowledge.

OUTLOOK:

While economy recovery is expected in 2020, and if some of the forecasts hold true, India will become the fastest growing large economy of the world in the coming years. Government initiatives such as ‘Make in India coupled with the new governance regime will boost confidence of global investors and act as a catalyst for overall growth of the industry. The growth momentum in India is expected to be driven by focused spending on development projects in the form of increased public spending on infrastructure development. This will become the engine for driving several sectors of economy and lead increased industrial activity. A continuously moderating inflation and a growth driving monetary policy coupled with improved purchasing power of an increasing middle class will further aid revival of domestic demand in turn leading to growth. Falling rural incomes and volatility in domestic monetary and fiscal conditions due to global changes may adversely impact the growth. Your companys ability to work closely with customers will enable it to counter threats from competition as well as strengthen the ability to create value proposition for customers. Further, the foreign source and several of them making India their sourcing hubs, overall growth prospects of the industry looks better.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The company has a proper and adequate system of internal control to ensure that all the assets are safeguarded, protected against loss from unauthorized use or disposition and those transactions are authorised, recorded and reported correctly. The internal audit reports are reviewed for corrective actions wherever required. The views of statutory auditors are also considered to ascertain the adequacy of internal control system.

DEVELOPMENT IN HUMAN RESOURCES:

Human resources are a valuable assets and the company seek to attract and retain the best talent available. Systematic training, development, continuance of productivity and employee satisfaction is some of the highlights of human resource development activities during the year. Employee relations continued to be cordial. The company strives to develop the most superior workforce so that it can accomplish along with the individual employees, their work goals & services to its customers & stakeholder. Our fundamental belief in immense power of the human potential and team work. A transformational force that stimulates enterprise accelerates our constant pursuit of excellence and empowers our people to release their full potential. The company also believes human resources as the supporting pillars for the organizations success. Your director acknowledges and thanks employees for their continued contribution