SPECIAL NOTE ON CORONAVIRUS PANADEMIC
By mid of March 2020, the outbreak of Corona virus (COVID-19) pandemic has been rapidly spreading throughout the world, including India causing significant disturbance and slowdown of economic activity. The Company has made committed efforts to support its business stakeholders, employees and service providers. The effect of Covid-19 on the Company is insignificant. Looking at current situation the company does not predict any significant effect of Covid-19 on the Company as the Company is presently not carrying out any business activities. The Company is continuously monitoring the situation and taking necessary actions in response to the developments, to minimize the impact on the business of the Companys Future prospects.
FINANCIAL PERFORMANCE
(Rs in Thousands)
Particulars | F.Y. 2021-22 | F.Y. 2020-21 |
Revenue from Operations | 68.30 | 80.70 |
Other Income | - | - |
Total Income | 68.30 | 80.70 |
Operating Expenditure before Finance Cost, Depreciation and Amortization | 690.94 | 559.43 |
Earnings before Finance Cost, Depreciation and Amortization | (622.64) | (478.73) |
Less: Finance Cost | 1.04 | - |
Depreciation and Amortization Expenses | - | - |
Profit/(Loss) before Tax | (623.68) | (478.73) |
Less: Tax Expense | - | - |
Profit/(Loss) after Tax (PAT) | (623.68) | (478.73) |
REVIEW OF PERFORMANCE
In the financial year 2021-22, the Company has earned 68.30 Thousands from revenue from operations compared to 80.70 Thousands for the financial year 2020-21. Due to increase in Legal and professional expenses, the Company has incurred Loss after tax of 623.68 Thousands during the financial year 2021-22 as compared to loss after tax of 478.73 Thousands in the financial year 2020-21.
KEY FINANCIAL RATIO
Particulars | Numerator | Denominator | As at March 31, 2022 | As at March 31, 2021 | % change from March 31, 2021 to March 31, 2022 |
Current ratio | Current Assets | Current Liabilities | 0.48 | 0.69 | -30% |
Debt- Equity Ratio | Current borrowings + Non- Current Borrowings+ lease payments | Shareholders Equity | 1,020.53 | 53.26 | 1816% |
Return on Equity ratio | Net Profits after taxes - Preference Dividend | Average Shareholders Equity | (180.16) | (5,334.69 ) | -97% |
Inventory Turnover ratio | Cost of material consumed | Average Inventory | 97.01 | 243.85 | -60% |
Trade Receivable Turnover Ratio | Net credit sales = Gross credit sales - sales return | Average Trade Receivable | 10.83 | 1,189.86 | -99% |
Trade Payable Turnover Ratio | Net credit purchases = Gross credit purchases - purchase return | Average Trade Payables | 24.94 | 6.10 | 309% |
Net Capital Turnover Ratio | Net sales = Total sales - sales return | Average working capital = Current assets - Current liabilities | (6.56) | (19.35) | -66% |
Net Profit ratio | Net Profit after tax | Net sales = Total sales - sales return | (913.15) | (593.22) | 54% |
Return on Capital Employed | Earnings before interest and taxes | Capital Employed = Tangible Net Worth + Total Debt + Deferred Tax Liability + Lease Payments | 45.42 | 64.08 | -29.11% |
OPPORTUNITIES
With the change in the segment of Companys Activities, following are the Opportunities for the Company:
> The Company is being managed by well experienced promoter with positive attribute to strive for challenges for future.
> Trading activities has turned out to be fruitful and there is good scope of future growth and profitability.
THREATS
> Future uncertain Factors
> Competition
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an efficient system of internal controls for achieving the following business objectives of the Company: Efficiency of operations
> Protection of resources
> Accuracy and promptness of financial reporting
> Compliance with various laws and regulations
> Compliance with the laid down policies and procedures HUMAN RERSOURCE
Equipping the Company with an engaged and productive workforce is essential to our success. We look for commitment, skills and innovative approach in people. In assessing capability, we consider technical skills and knowledge that have been acquired through experience and practice, along with mental processing ability, social process skills and their application. We continue to invest in developing a pipeline of future talent and nurture them. As part of this process, we provide development and training opportunities to our workforce, which motivates and encourages them to grow in their work. Total 5 employees were employed in the Company. The Company has been maintaining cordial and healthy Industrial Relations, which has helped to a great extent in achieving the upper growth.
CAUTIONARY STATEMENT
Statements in this Report, describing the Companys objectives, projections, estimates and expectations may constitute forward looking statements within the meaning of applicable laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events. These statements are subject to certain risks and uncertainties. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results may be different from those expressed or implied since the Companys operations are affected by many external and internal factors, which are beyond the control of the management. Hence the Company assumes no responsibility in respect of forward-looking statements that may be amended or modified in future on the basis of subsequent developments, information or events.
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.