G D Trading & Agencies Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT:

The Company mainly trading into electronic parts to supply specified clients. Now considering the need and demand in Indian semiconductor industry decided to carryout business activities in Indian semiconductor sector.

The Indian semiconductor industry has been experiencing significant growth and development in recent years. It plays a crucial role in the countrys electronics manufacturing sector and contributes to the advancement of various high-tech industries. Overall, the Indian semiconductor industry is experiencing growth and transformation, driven by increasing domestic demand, government initiatives, and a focus on design and R&D. With continued support and investment, the industry is expected to contribute significantly to Indias electronics manufacturing capabilities and emerge as a global player in the semiconductor sector.

OPPORTUNITIES AND THREATS:

Due to stiff competitions in the finance field where the companys activities are cantered in, the overall margins are always under pressure, but maintainable, with the constant effort and good services rendered by the company.

The Indian semiconductor businesses will give good returns in the days to come along with the trading line of activities.

There is industrial growth expected to increase new opportunities in personal finance and there is favorable Govt. policies and that shall help the Company to start/ expand in near future.

A small change in the focus of a large competitor might wipe out any market position we achieve. Through highly prevailing in the market remains the main risk faced by the company for investment activity.

In the current financial Year 2024-25, the company has changed its main object and ventured in to new business of Electronics devices and Semiconductor. The Company is anticipating huge business opportunities considering growing demand of Electronics devices and Chips, and incentive and subsidy benefits (PLI Scheme of Government) provided by State and central government for the business.

The semiconductor industry faces several threats that can impact its operations and growth. Here are some significant threats faced by the semiconductor industry:

Supply Chain Disruptions: The semiconductor industry relies on complex global supply chains, and disruptions at any stage can have severe consequences. Events like natural disasters, geopolitical tensions, trade disputes, or pandemics can lead to supply chain interruptions, component shortages, and production delays. Technological cost and its Obsolescence: The rapid pace of technological advancements in the semiconductor industry means that products and technologies can quickly become outdated. Companies must continually invest in research and development (R&D) to stay competitive and ensure their offerings remain relevant in the market. Failure to do so can lead to the risk of being left behind.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company has changed its main object in current financial year 2024-25 and started new business and doing well, and looking forward for growth in the future in trading activities.

OUTLOOK:

While economy recovery is expected in 2024, 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. 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.

RISKS AND CONCERNS

In semiconductor industry there is risk of supply chain disruption of recent years and current political and economic uncertainty. The semiconductor industry is influenced by global economic conditions. Periods of economic downturns, recessions, or fluctuations in consumer demand can impact semiconductor sales and revenue. Companies need to be prepared to navigate through economic uncertainties and adapt their strategies accordingly. The semiconductor industry requires highly skilled professionals, including engineers, researchers, and technicians. However, there is a shortage of talent with the necessary expertise in certain regions. This scarcity can impede technological advancements and innovation in the industry.

The Financial need of the company in Indian semiconductor industry trading activities and FAB center is huge and company may face a lot of challenges in this regard.

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.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year under review, the Company has achieved turnover of Rs. 38.00 Lakh as against no turnover in the previous year. After deducting total expenditure aggregating to Rs. 39.70 Lakh, the Company has incurred loss after tax of Rs. 1.70 Lakh as against loss of Rs. 7.22 Lakh of the previous year.

The financial summary for year ended is as follows:

MATERIAL DEVELOPMENT IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

The Directors wish to place on record their appreciation and acknowledgment of the efforts and dedication and contributions made by employees at all levels during the year under review. The Company continues to focus on attracting new talent & help them to acquire new skills, explore new roles and realize their potential. Your director acknowledges and thanks employees for their continued contribution. Considering commencement of new business the Company need/ hire highly skilled employees & professionals, including engineers, researchers, and technicians etc.

KEY FINANCIAL RATIO

Please refer notes of financial statement for the year ended 31.03.2024 for Key Financial Ratio.

DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF

The net worth of the Company is Rs. (778.73) lakh against Rs. (177.03) Lakh in last year due to loss in the company.