hindustan wires ltd Management discussions

The Company is engaged in trading of Industrial Gases, transportation of gases, financing and investment activities besides providing services in the field of Business support services.

During the year the revenue from sale of Industrial Gases is Rs 586.16 Lakhs, income from Gas transport services is Rs. 5.77 Lakhs, income from financing & investment activities is Rs. 262.44 Lakhs, other incomes - from business support services is Rs. 31.50 Lakhs, rental income is Rs. 14.85 Lakhs. During the year the Company has disposed off its Land & Building etc. to monetise its assets after due consent of the members of the Company and the net surplus on such sale was Rs. 3740.95 Lakhs. However, the Company has earned a net profit (after tax) amounting to Rs. 3023.77 Lakhs.

During the year, the Company has taken short term loans from Banks amounting to Rs. 1898.28 Lakhs and accordingly the debt equity ratio has significantly changed. During the year, the net profit and net worth of the Company has also increased significantly due to profit on sale of immovable property of the Company.

The Company is supplying Industrial Gases primarily in Northern India in the Gas Tankers owned by the Company. The Company has made some investments in debt mutual funds and also provided short term loans till such time any new line of business is finalised.

The Company is also providing business support services to one of its Group Company. The Company is also exploring the possibility of providing such type of services to some other parties. However, the scope for the same is limited.

The Company has in place an adequate system of internal controls for ensuring reliability of financial reporting, monitoring of operations, protecting assets and compliance with regulations.

The Company consistently insures its assets and generally follows a conservative financial profile by following prudent business practices. The Company has in place a Risk Management Policy. Potential Risks of the Company are : Operational risk - Disruptions in operating the Gas Tankers (Mobile Pressure Vessels) due to failure of control valves etc, un-expected or un-foreseen interruptions in transportation. The Company continuously works towards monitoring the maintenance of transport system, Safety, Health and Environment : The business of trading in Gases and Transportation is inherently hazardous. Any accident, explosion may cause bodily injury or property damage and can adversely affect surrounding environment resulting in disruption of operations. The Company continuously monitors the safety guidelines to eliminate any such possible occurrence.

The Company has to make compliance of various statutory and legal requirements under different laws in force. The Company adheres to the statutory requirements as applicable to it and regularly reviews the compliance to overcome any risk involved.

During the year the Industrial Relations were cordial. The Company has always valued its human resources and believes in unlimited potential of each employee. The number of employees (including contractor workers) at the yearend were 20.

Cautionary Statement : The statements made in this report describing the Companys expectations and estimations may be forwarding looking statement. Actual results may differ from those expressed or implied in this report due to the influence of external and internal factors which are beyond the control of the Company.

	Annexure A to G of Directors Report
	For and on behalf of the Board of Directors
	U.S. Bhartia	G.R.Goenka
Place: Noida	Director	Director
Date: 27th May, 2019	DIN : 00063091	DIN 00133700