Goldcrest Corporation Ltd Management Discussions.

Managements Discussion and Analysis Report for the year under review, as stipulated under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), is presented in a separate section, forming part of the Annual Report. The developments in business operations / performance of the Company and its major subsidiaries consolidated with the Company are as below:

OVERVIEW

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair value, the provisions of the Companies Act, 2013 (“the Act”) (to the extend notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act, read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, and relevant amendment rules issued thereafter.

INDIAN ECONOMY

India continues to be one of the fastest growing major economies in the world and is expected to be among the worlds top three economic powers in the next 10-15 years. The Indian economy is expected to improve and closed the year 2019 with a GDP growth of 7.3% (Source: IMF).

Sustained real GDP growth of over 6% since FY 91 has led to a fundamental transformation of Indias economy. Today, India is the worlds seventh largest economy in real terms, backed by strong demand, positive consumption pattern and rising disposable income. In PPP terms, the economy is expected to be among the top five global economies by 2020.

COMPANYS PERFORMANCE

Your Company is currently in the business of maintaining and operating a Tech Park and other ancillary businesses. In the Financial Year 2018-19 your Company has had a decrease in turnover and increase in profitability as compared to the Financial Year 2017-18.

OUTLOOK

In the coming year, your Company will continue to explore opportunities in real estate across the country, will further develop and grow its current real estate investments and deploy surplus funds through various avenues. It is a matter of pride that your Company had almost zero attrition amongst its business clients during this time.

OPPORTUNITIES AND THREATS

The management of your Company continues to actively seek viable opportunities that will boost the profitability and long-term financial health of the Company. The Companys management will work towards this goal in the years to come. Our success as an organisation depends on our ability to identify opportunities and leverage them while mitigating the risks that arise while conducting our business.

In line with the new regulatory requirements, your Company has formally framed a Risk Management Policy to identify and assess the key risk areas, monitor and report compliance and effectiveness of the policy and procedure. Your Company has a proper system in place to oversee the risks and also has in place a risk mitigation plan.

INVESTOR RELATIONSHIP

Your Company believes in transparent communication and building a relationship of mutual understanding and trust. Your Company further ensures that critical information about the Company is available to all the investors by hosting all such information on the Companys website.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has in place proper and adequate systems of internal control and the same is being reviewed commensurate with its size and nature of operations. The internal control is intended to increase transparency and accountability in an organizations process of designing and implementing a system of internal control

Pankaj P. Sanghavi And Co., the statutory auditors have audited the financial statements included in this annual report and have issued an attestation report on our internal control over financial reporting (as defined in section 143 of Companies Act 2013).

The Company has entrusted the internal & operational audit to M/s. M. V. Ghelani & Co., a reputed firm of Chartered Accountants. The main thrust of the internal audit process is to test and review controls, conduct an independent appraisal of risks, and benchmark internal controls with best practices.

The Audit Committee of the Board of Directors, Statutory Auditors and Business Heads are periodically apprised of the internal audit findings and corrective actions are taken. Audit plays a key role in providing assurance to the Board of Directors.

FINANCIAL PERFORMANCE WITH OPERATIONAL PERFORMANCE

The turnover of your Company for the year under review is Rs 1315.02 lacs, as against 1468.47 lacs in the previous year, which is less than the turnover of the previous year. Your Directors are working to improve the growth rate in turnover and profitability in the current year. Net Profit After Tax stood at 495.51 lacs as against Rs 376.75 lacs in the previous financial year.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT. INCLUDING NUMBER OF PEOPLE EMPLOYED

The core of our success is our people. We do not view our employees as resources, we consider them our most valuable assets. We believe that engaged and inspired employees are more satisfied with their work, tend to stay longer, and are more productive and committed. Your Company provides a workplace environment that is safe, hygienic, humane, and which upholds the dignity of its employees. Your Company creates systems and practices to ensure a harassment free workplace, where employees feel safe and secure in discharging their responsibilities.

There are 13 persons employed with your Company.

RISKS AND CONCERNS

STAYING ONE STEP AHEAD OF RISK

Changes in the policies of the Government of India or political instability may adversely affect economic conditions in India generally, which could impact our business and prospects.

In the event that the Government of India changes its tax policies in a manner that is adverse to us, our tax expense may materially increase, reducing our profitability.

Risk Management has always been an integral part of the corporate strategy which compliments organizational capabilities with business opportunities. A detailed exercise is being carried out to identify, evaluate, manage and monitor both business and non-business risks.

The Company has a vigil mechanism to report concerns about unethical behaviour, actual/suspected frauds and violation of the Companys Code of Conduct. Protected disclosures can be made by a whistle blower through several channels with the surety that no discrimination will be meted out to any person for a genuinely raised concern.

KEY FINANCIAL RATIOS

Particulars FY 18-19 FY 17-18 Change (%) Reason
1 Debtor Turnover (times) 87.56 44.52 96.65 Improved primarily on account of a decrease in debtors receivable.
3 Interest Coverage Ratio % N.A. 120.05 100 Improved primarily on account of no finance cost during the year.
4 Current Ratio (times) 14.20 7.27 95.35 Increased primarily on account of a decline in current liabilities.
5 Debt Equity Ratio % 0.21 0.17 24.52 Increased primarily on account of a decline in current liabilities.
6 Operating Profit Margin % 49.36 27.68 78.30 Increased primarily on account of an increase in net profits during financial year 2018-19.
7 Net Profit Margin % 49.36 27.68 78.30 Increased primarily on account of an increase in net profits during financial year 2018-19.

Note: (a) Inventory Turnover ratio is not applicable as inventory is NIL.