Galaxy Consolidated Finance Ltd Management Discussions

1. Industry Structure & Development

The global economy is witnessing dynamic changes in business conditions, consumer preferences which are creating an increasingly competitive market environment. The priorities of the industry are changing, concentrating more on re-organization of operations, development of new markets and marketing techniques, giving the organizations vision a global outlook and retaining and building upon customer relationships. Fragmented markets provide many opportunities for company to expand and increase market share. New markets allow company to expand their business and diversify their portfolio of products and services.

2. Business Overview

The Company is currently engaged in the trading and distribution of different types of commodities and materials. The Company in F.Y. 2015-16 took a step forward to sustain in the competitive economy.

Further, the Company is showing substantial growth and is making all due efforts in achieving its business objectives in the most efficient manner.

3. Review of Operational and Financial Performance

The Company is into trading business. During the financial year under review, Revenue from operations was Rs. 187.79 Lakhs compared to the Revenue from operations of Rs. 2.64 Lakhs of previous year which shows increase of 71 times over the previous year. Whereas due to increase in expenditure borne by the Company, specifically increase in remuneration paid to the KMPs of the Company, during the reporting financial year it recorded low profit before tax. The Profit before tax of the Company for the financial year 2016-17 stood at Rs. 1.07 Lakhs as against profit before tax of Rs. 0.98 Lakhs of previous year.

The Company has shown consistent increase in the revenue generation and is making all due efforts in achieving its business objectives in the most efficient manner.

4. Debt Structure

During the year under review your Company has not raised any amount.

5. Future Outlook

The Company is focused on financing conservatively to the customers after closely assessing their profile during the year under review. Further, the focus for the forthcoming financial year for the Company will be continued delivery in progressing mode and inculcate a high performance. The Company will strengthen its position in current business and will try to grab new opportunities beneficial for the Company as well as try to overcome all the hindrances and challenges blocking the performance of the Company. During the year under review with a view to promote greater efficiency and operational convenience, with effective 10^th February, 2017, the Company has shifted its Registered Office from Shree Commercial, Dr. Yagnik Road, Rajkot to 308, Shital Varsha Arcade,, Opp. Girish Cold Drinks, C. G. Road, Navrangpura, Ahmedabad- 380009.

6. Opportunities, threats, risks and concerns

To survive and sustain in the current global scenario where the industry is attempting to shift from linear to non-linear growth models has been a very challenging task though new programmes and initiative taken by the government has created new opportunities for the Company.

Increase in significant growth rate and momentum in economy has also created competitive threats to the Company by existing as well as new entrants but the Company is trying to grab all the opportunities on its way which would enhance the companys performance. The current economic environment is combined of substantial growth as well as evolving risks for which appropriate changes are done to face them.

The members of Risk Management Committee has framed a Risk Management Policy to ensure sustainable business growth with stability and to promote a pro-active approach in reporting, evaluating and resolving risks associated with the business.

7. Risk Management

The Company has adopted a Risk Management Policy in accordance with the provisions of the Companies Act, 2013 and Regulation 17 (9) of the Listing Regulations. It establishes various levels of risks with its varying levels of probability that likely may impact on the business and its mitigation measures. Further, the Company has voluntarily constituted Risk Management Committee which oversees the Risk Management and reports to the Audit Committee as well as the Board of Directors about risk assessment and management procedures and status from time to time.

8. Internal Control Systems and their adequacy

The internal control is designed to ensure that the financial and other records are reliable for preparing financial statements and other data and for maintaining accountability of assets. Internal Control and Audit is an important procedure and the Audit Committee of the Company is empowered by the Board to review the adequacy of internal financial controls. Thus, the audit committee periodically reviews the matter relating to internal control system.

9. Human Resources

Human resources play a key role in helping the Company to deal with the fast-changing competitive environment. So, the company endeavors to provide individual development and growth to the employees that motivate them to give high performance helping the Company to achieve its goals.

The Company has been working towards institutionalizing a Performance Oriented Culture. The Entire system including recruitment, performance management system, reward and recognition has been aligned with the business objectives.

10. Cautionary Statement

Statements made herein describing the Companys objectives, projections, estimates, predictions and expectations may be "forward looking statements" within the meaning of applicable securities law and regulations. Actual results might differ materially from those either expressed or implied.