Hit Kit Global Solutions Ltd Management Discussions.

Industry Structure and Development

Retail is a process of selling goods and services to customers through multiple channel of distribution.

Retail stores may be small or big but they mostly operate in the same line as "purchasing to sale".

Retail form of business is as old as civilization. E-commerce is consistently taking up a larger proportion of consumer time and spending.

The face of retail has changed. The advent of technology in recent period being the primary reason for it. Today, retailing means going into shopping centers, going online and going mobile. In all these, small retailers miss out somewhere. It needs to revive not just survive. Better quality products, fair price and friendly after-sale services are the basic areas in which the business has to concentrate to a remarkable extent. Experience, knowhow of the business and the understanding of the requirement by the customers help us to create business volumes and maintain sustainability.

Economic outlook

Traditional retailing has had a tough time lately. Footfalls in retail shops even in biggest markets has been declining. Chains that were faltering even before onlines ascent are now in even deeper trouble.

Looking at the economic growth of the Tourism Industry, the company has scaled down the business operations of vegetable retailing, thereby consolidating the operations and are diversifying the Business activities into the Resort development by deploying the available funds into the Resort Project of the Company.

Financial Performance

The Financial Statements of the Company and its are prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and other relevant provisions of the Companies Act, 2013. The Notes to Financial Statements are disclosed and forms part of the Financial Statements.

Key Financial performance, Operational Information and Ratio Analysis

Key- Developments in 2018-19

During the year company is engaged into development of resort project and is developing Forest Resort near Lonavala comprising of Forest chalets and cottages at the upcoming Monsoon Lake, catering to tourist from Mumbai and Pune. The company has made investment of Rs.392.40 lakhs as at 31 March 2019 for construction of the Resort Project under the Joint Venture where the Company has 40% stake. The Company is awaiting development permission and Land Use approval from government authorities and forest department for further development of the Resort Project.

During the year the Company has entered into an Lease Agreement for lease of Monsoon Lake and Water Sports for its forthcoming Resort Project at Lonavala on a yearly rental basis renewable after 10 years and will continue on renewal basis for further 20 years. Lessor has to pay 10% interest on deposit amount till the completion of the Monsoon Lake up to 30th June, 2019 and if the Monsoon Lake and Water Sport Facility will not be ready use than the interest on the deposit will be payable at the rate of 20% per annum for the delayed period.

Opportunities and threats

Our success as an organization depends on our ability to identify opportunities and leverage them while mitigating the risks that arise while conducting our business. Major risks identified by the businesses and functions are systematically addressed through mitigating action on a continuing basis.

Risks and Concerns

Your Company is exposed to a number of risks such as economic, regulatory, taxation and environmental risks. Some of the risks that may arise in its normal course of its business and impact its ability for future developments include inter-alia, credit risk, liquidity risk, counterparty risk, regulatory risk, commodity inflation risk and market risk. Over few years in retail business, your Company has developed supply chain for retailing vegetables from farmer to whole seller to the consumers.

Risk Management is a critical exercise for all organizations, particularly ones operating in many locations / countries. The main aim of risk management is to identify and analyse the risks through a structured Risk-Benefit Analysis and mitigate those risks which are not beneficial to the organisation.

Financial Performance & Position


During the year under the review, the Company has recorded gross revenue of operations of Rs.20.81 and other interest income of Rs.10.83 Lakhs as against Revenue of Rs.19.94 Lakhs in the previous year. After offsetting the expenses the company made a profit of Rs.0.06 Lakhs against loss of Rs. 4.49 Lakhs in the previous year.


Company has incurred total expenses of Rs. 31.58 Lakhs, as against Rs. 24.37 Lakhs in the previous year. The company has incurred administrative and general expenses during the year.

Balance Sheet

Details Pertaining to the Net worth of the Company:

worth as on 31.3.2019(in Rs.) worth as on 31.3.2018(in Rs.)
96,744,125 96,973,668

Cautionary Statement

The above Management Discussion and Analysis contains certain forward looking statements within the meaning of applicable security laws and regulations. These pertain to the Companys future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties, regarding a fluctuations in earnings, our ability to manage growth, competition, economic growth in India, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, government policies and actions with respect to investments, fiscal deficits, regulation etc. In accordance with the Code of Corporate Governance approved by the Securities and Exchange Board of India, shareholders and readers are cautioned that in the case of data and information external to the Company, no representation is made on its accuracy or comprehensiveness though the same are based on sources thought to be reliable. The Company does not undertake to make any announcement in case any of these forward-looking statements become materially incorrect in future or update any forward looking statements made from time to time on behalf of the Company