The Management of GOLDEN BULL RESEARCH & GROWTH LIMITED (Formerly Known as Kausambi
Vanijya Limited) in its Analysis Report has highlighted the performance and outlook of the
Company in order to comply with the requirement of Corporate Governance. However,
investors and readers are cautioned that this discussion contains certain forward looking
statements that involve risk and uncertainties.
GLOBAL OVERVIEW:
Risks to global growth in the form of deflation, slowdown in China, lower commodity
prices and interest rate hike in USA continue to weigh heavily on the growth momentum and
outlook.
GDP growth in Europe is expected to remain low as the strength of supportive factors
(accommodative monetary policy, low energy prices and Euro depreciation) diminishes,
amidst uncertainty relating to Britains referendum, migrant crisis and geo-political
tensions. Europe continues to face multiple headwinds due to high debt levels, a fragile
banking sector and increasing political impasse.
India is expected to continue its growth momentum in Financial Year 2017-18 on the back
of robust manufacturing sector growth. Further, various measures such as ‘Make in
India, ‘Smart Cities, ‘Digital India that the Government has been taking in
the last couple of years are beginning to show results and the gradual implementation of
structural reforms will continue to broaden and contribute towards higher growth.
The global textile industry was affected by volatile raw material and finished goods
prices, result was that the exchange rate fluctuations, increase in costs and inconsistent
governmental policies. The Indian market also witnessed a decline in textile exports.
INDIAN INDUSTRIAL OVERVIEW:
Introduction
The Indian textiles industry is extremely varied, with the hand-spun and hand-woven
textiles sectors at one end of the spectrum, while the capital intensive sophisticated
mills sector at the other end of the spectrum. The close linkage of the textile industry
to agriculture (for raw materials such as cotton) and the ancient culture and traditions
of the country in terms of textiles make the Indian textiles sector unique in comparison
to the industries of other countries. The Indian textile industry has the capacity to
produce a wide variety of products suitable to different market segments, both within
India and across the world.
Market Size
The Indian textiles industry, currently estimated at around US$ 108 billion, is
expected to reach US$ 223 billion by 2021. The industry is the second largest employer
after agriculture, providing employment to over 45 million people directly and 60 million
people indirectly. The Indian Textile Industry contributes approximately 5 per cent to
Indias Gross Domestic Product (GDP), and 14 per cent to overall Index of Industrial
Production (IIP).
The Indian textile industry has the potential to reach US$ 500 billion in size#. The
growth implies domestic sales to rise to US$ 315 billion from currently US$ 68 billion. At
the same time, exports are implied to increase to US$ 185 billion from approximately US$
41 billion currently.
Investments
The textiles sector has witnessed a spurt in investment during the last five years. The
industry (including dyed and printed) attracted Foreign Direct Investment (FDI) worth US$
1.85 billion during April 2000 to March 2017.
Some of the major investments in the Indian textiles industry are as follows:
• One of the leading manufacturers and exporters of terry towel, home textile,
yarn and paper in India, has entered into a partnership with French firm Lagardere Active
Group, to launch a premium range of home textiles under the renowned French lifestyle
brand Elle Dcor in India.
• Raymond Group has signed a Memorandum of Understanding (MoU) with Maharashtra
government for setting up a textile manufacturing plant with an investment of Rs 1,400
crore (US$ 207.53 million) in Maharashtras Amravati district.
• Grasim Industries has invested Rs 100 crore (US$ 14.82 million) to develop its
first fabric brand, ‘Liva, which it will distribute through 1,000 outlets as part of
a plan to stay in sync with changing consumer behaviour.
OPPORTUNITIES & THREATS:
OPPORTUNITIES:
India is today recognized as one of the best sourcing destinations for garments,
textiles, accessories and finish: It provides a perfect blend of fashion, design, quality,
patterns, textures, colours and finish.
Number of policy measures has been announced by the Government to boost investments
which includes an investment allowance for manufacturing companies, policy measures for
creating affordable housing and addressing requirements of agriculture sector through
measures other than price supports. Various measures are being adopted taken to address
requirements of mining and power generation sectors which will remove supply bottlenecks
to a number of sectors. With the governments initiative to boost infrastructure projects,
NBFCs can also look for growth in asset financing.
THREATS:
It is to be noted that Indias position in global arena is on a shaky platform as it is
facing tough competition from its neighbouring countries such as China & Bangladesh.
Talking about these three Asian countries the labour in Bangladesh is cheapest and Indias
labour is costliest. The fuel prices in India are the highest among these countries. China
is the leader in exports with more than 40% market share.
Threats like high inflation, high interest rates, liquidity issues, decrease in value
of Indian Currency, political changes etc. act as a barricades for the Companys business.
The growth of the Companys assets and ability to raise funds depends significantly on the
economy. Due to unfavourable events in the Indian economy, the consumers sentiments can
be affected and in turn impact consumer decision to purchase financial products. Various
other factors such as cut throat competition from a broad range of financial services
providers and changes in regulatory framework could impact the Companys operations.
RISK MANAGEMENT:
Golden Bull Research & Growth Ltd. was mainly engaged in Trading in sarees as its
principal business, as the Company has decide to diversify its business activity from
textile Trading in garment and sarees to Research Activity. It also Invests inequities
through the secondary markets and provides Loans & Advances to Corporate, Individuals
etc.
In an interdependent, fast-moving world, organizations are increasingly confronted by
risks that are complex in nature and global in consequence. Such risks can be difficult to
anticipate and respond to, even for the most seasoned business leaders.
An economic slowdown or other factors that affect the economic health of the country
may affect our business. Our net income may get reduced if Government of India slashes the
subsidies given. Changes in the policies of the Government of India or political
instability could delay the further liberalization of Indian economy, which could impact
our business prospects. Our failure to complete the orders in agreed time frame may
negatively affect our profitability. Our client contracts are often conditioned on our
performance, which, if unsatisfactory, could result in lesser revenues.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Board of Directors of the Company is responsible for ensuring that Internal
Financial Controls have been laid down in the Company and that such controls are adequate
and operating effectively. The foundation of Internal Financial Controls (IFC) lies in the
Companies Code of Conduct, policies and procedures adopted by the Management, corporate
strategies, annual management reviews, management system certifications and the risk
management framework.
The Company has appointed its own Internal Audit system, the scope and authority of the
Internal Audit function is to maintain its objectivity and independence, the Internal
Audit function reports to the Chairman of the Audit Committee.
The Internal Audit team monitors and evaluates the efficacy and adequacy of internal
control systems in the Company, accounting procedures and policies of the Company. Based
on the report of internal audit function, process owners undertake corrective action(s) in
their respective area(s). Significant audit observations and corrective action(s) thereon
are presented to the Audit Committee.
The Audit Committee reviews the reports submitted by the Internal Audit team annually.
HUMAN RESOURCES / INDUSTRIAL RELATIONS:
The Company regards its human resources as amongst its most valuable assets and
proactively reviews policies and processes by creating a work environment that encourages
initiative, provides challenges and opportunities and recognizes the performance and
potential of its employees attracting and retaining the best manpower available by
providing high degree of motivation, training and structured compensation was the main
thrust this year.
CAUTIONARY STATEMENT:
This report contains forward-looking statements based on certain assumptions and
expectations of future events. Actual performance, results or achievements may differ from
those expressed or implied in any such forward looking statements. The Company assumes no
responsibility to publicly amend, modify or revise any forward looking statements, on the
basis of any subsequent developments, information or events.
|
FOR AND ON BEHALF OF THE BOARD |
|
GOLDEN BULL RESEARCH & GROWTH LIMITED |
| Place: Kolkata |
|
|
| Date: 14/08/2017 |
Sd/- |
Sd/- |
|
Pankaj Jain |
Naveen Kumar |
| Regd. Off. |
(Managing Director) |
(Director) |
| 128, Hozra Road, Khirod Ghosh Market, |
DIN: 06829557 |
DIN: 07136843 |
| Kolkata – 700 026 |
|
|
+91-9892691696
