Overview of Indian Economy
India has emerged as the fastest growing major economy in the world as per the Central
Statistics Organization (CSO) and International Monetary Fund (IMF), and is expected to be
one of the top three economic powers of the world over the next 10-15 years, backed by its
strong democracy and partnerships. The Indian economy remains one of the fastest growing
and possibly the least affected by global turmoil.
India has already surpassed France to become the sixth-largest economy. By 2019, it may
become the fih-largest economy
Market size
Indias GDP is estimated to have increased 7.2 per cent in 2018-19 and 7 per cent in
2019-20. India has retained its position as the third largest startup base in the world
with over 4,750 technology start-ups.
Indias labour force is expected to touch 160-170 million by 2020, based on rate of
population growth, increased labour force participation, and higher education enrollment,
among other factors, according to a study by ASSOCHAM and Thought Arbitrage Research
Institute.
Indias foreign exchange reserves were US$ 405.64 billion in the week up to March 15,
2019, according to data from the RBI.
Recent Developments
With the improvement in the economic scenario, there have been various investments in
various sectors of the economy. The M&A activity in India reached record US$ 129.4
billion in 2018 while private equity (PE) and venture capital (VC) investments reached US$
20.5 billion. Some of the important recent developments in Indian economy are as follows:
• During 2018-19 (up to February 2019), merchandise exports from India have
increased 8.85 per cent year-on-year to US$ 298.47 billion, while services exports have
grown 8.54 per cent year-on-year to US$ 185.51 billion.
• Nikkei India Manufacturing Purchasing Managers Index (PMI) reached a 14-month
high in February 2019 and stood at 54.3.
• Net direct tax collection for 2018-19 had crossed Rs 10 trillion (US$ 144.57
billion) by March 16, 2019, while goods and services tax (GST) collection stood at Rs
10.70 trillion (US$ 154.69 billion) as of February 2019.
• Proceeds through Initial Public Offers (IPO) in India reached US$ 5.5 billion in
2018 and US$ 0.9 billion in Q1 2018-19.
• Indias Foreign Direct Investment (FDI) equity inflows reached US$ 409.15
billion between April 2000 and December 2018, with maximum contribution from services,
computer soware and hardware, telecommunications, construction, trading and automobiles.
• Indias Index of Industrial Production (IIP) rose 4.4 per cent year-on-year in
2018-19 (up to January 2019).
• Consumer Price Index (CPI) inflation stood at 2.57 per cent in February 2019.
• Net employment generation in the country reached a 17-month high in January
2019.
Government Initiatives
The interim Union Budget for 2019-20 was announced by Mr. Piyush Goyal, Union Minister
for Finance, Corporate Affairs, Railways and Coal, Government of India, in Parliament on
February 01, 2019. It focuses on supporting the needy farmers, economically less
privileged, workers in the unorganized sector and salaried employees, while continuing the
Government of Indias push towards better physical and social infrastructure.
Total expenditure for 2019-20 is budgeted at ? 2,784,200 crores (US$ 391.53 billion),
an increase of 13.30 per cent from 2018-19 (revised estimates).
Numerous foreign companies are setting up their facilities in India on account of
various government initiatives like Make in India and Digital India. Mr. Narendra Modi,
Prime Minister of India, has launched the Make in India initiative with an aim to boost
the manufacturing sector of Indian economy, to increase the purchasing power of an average
Indian consumer, which would further boost demand, and hence spur development, in addition
to benefiting investors. The Government of India, under the Make in India initiative, is
trying to give boost to the contribution made by the manufacturing sector and aims to take
it up to 25 per cent of the GDP from the current 17 per cent. Besides, the Government has
also come up with Digital India initiative, which focuses on three core components:
creation of digital infrastructure, delivering services digitally and to increase the
digital literacy.
Some of the recent initiatives and developments undertaken by the government are listed
below:
• In February 2019, the Government of India approved the National Policy on
Soware Products – 2019, to develop the country as a soware hub.
• The National Mineral Policy 2019, National Electronics Policy 2019 and Faster
Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME II) have also been
approved by the Government of India in 2019.
• Village electrification in India was completed in April 2018. Universal
household electrification is expected to be achieved by March 2019 end.
• The Government of India released the maiden Agriculture Export Policy, 2018
which seeks to double agricultural exports from the country to US$ 60 billion by 2022.
• Around 1.29 million houses have been constructed up to December 24, 2018, under
Government of Indias housing scheme named Pradhan Mantri Awas Yojana (Urban).
• Prime Ministers Employment Generation Programme (PMEGP) will be continued with
an outlay of ? 5,500 crore (US$ 755.36 million) for three years from 2017-18 to 2019-20,
according to the Cabinet Committee on Economic Affairs (CCEA).
Road Ahead
• Indias gross domestic product (GDP) is expected to reach US$ 6 trillion by FY27
and achieve upper-middle income status on the back of digitization, globalization,
favorable demographics, and reforms.
• Indias revenue receipts are estimated to touch Rs 28-30 trillion (US$ 385-412
billion) by 2019, owing to Government of Indias measures to strengthen infrastructure and
reforms like demonetization and Goods and Services Tax (GST).
• India is also focusing on renewable sources to generate energy. It is planning
to achieve 40 per cent of its energy from non-fossil sources by 2030 which is currently 30
per cent and also have plans to increase its renewable energy capacity from to 175 GW by
2022.
• India is expected to be the third largest consumer economy as its consumption
may triple to US$ 4 trillion by 2025, owing to shi in consumer behavior and expenditure
pattern, according to a Boston Consulting Group (BCG) report; and is estimated to surpass
USA to become the second largest economy in terms of purchasing power parity (PPP) by the
year 2040, according to a report by Price water house Coopers.
Exchange Rate Used: INR 1 = US$ 0.0145 as on March 29, 2019.
Index of Industrial Production
Indias industrial production rose 3.4 percent from a year earlier in April 2019,
following an upwardly revised 0.4 percent gain in the previous month and beating market
expectations of a 0.8 percent increase. Output went up at a faster pace for manufacturing
(2.8 percent compared to 0.1 percent in March); mining (5.1 percent compared to 0.8
percent) and electricity (6 percent compared to 2.2 percent). Industrial Production in
India averaged 6.28 percent from 1994 until 2019, reaching an all time high of 19.90
percent in November of 2006 and a record low of -7.20 percent in February of 2009.
Indian Foreign Direct Investments
Foreign Direct Investment in India increased by USD 4,381 Million in April of 2019.
Foreign Direct Investment in India averaged USD 1,349.59 Million from 1995 until 2019,
reaching an all time high of USD 8,569 Million in August of 2017 and a record low of USD
-1,336 Million in November of 2017.
HR Trends in 2019: The Future of Human Resource Management
In 2019 and the near future, HR soware is moving beyond its base functionality of
benefits management, recruitment, time and attendance, professional development, and other
standard features. These features are still integral to the technology, but more advanced
tools are emerging. Automation is an overarching theme for HR innovation, with many
functions becoming completely digitized, eliminating the need for human involvement.
Headhunting of passive candidates has always been part of the recruitment process. But
these days, its much different from simply siing through resumes on a career website.
The advent of social media has made getting in touch with candidates easier than ever
before.
Working virtually — at home, at a coffee shop or anywhere else theres Wi-Fi
— is a growing trend in the United States. In the past two decades, the volume of
employees who have worked at least partially by telecommuting has quadrupled and now
stands at 37%.
A significant driver of this stems from VPN technology making it easy to access work
systems from nearly any computer. This makes it possible to recruit from almost anywhere
in the world, and its no surprise that many startups are built with remote teams. From a
corporate perspective, it opens up the pool of candidates, and by offering remote work
capabilities, its a way to retain current employees and boost job satisfaction through a
better work-life balance. With video conferencing and collaboration tools evolving every
year, this trend will only continue on the upswing.
The tech industry and Silicon Valley in particular, was rocked in 2017 by accusations
and counter-claims of bias in the workforce. The easiest way to minimize any controversy?
Make hiring a blind process. In standard screening and interviewing, unconscious bias
easily becomes part of the equation by including any data that may give away key parts of
a candidates background: gender, age, race, even alma mater. By making hiring a blind
process — that is, stripping away any info on a resume that may reveal demographic
data — the first wave of screening can be done based purely on abilities and
achievements. Theres even recruiting soware built to automate screening and anonymize
candidates. This allows for a more diverse workforce built on merit, not any buddy-buddy
vibes picked up during the early interview process.
Gasification is a technique that has been working its way into all different types of
industries. The idea of turning engagement into a competitive game format works for a
range of purposes, whether its marketing or teaching or hiring. In business, gasification
can be used as a candidate screener, turning tests of critical skill sets and cognitive
abilities into fun engagement. With the advent of Smart phone apps, its possible to have
a user base play recruitment games while under-the-hood algorithms track critical
analytics. The result benefits both candidates and employers: Candidates have a fun reason
to try to increase their scores while showing off to potential employers; Hiring managers
have an ocean of data that can help predict the strengths and weaknesses of candidates
— and even find diamonds in the rough.
While political talking points oen emphasize the return of jobs in manufacturing and
manual labor, the cold hard truth is that those positions are going away because of
evolving technology. In many cases, artificial intelligence is replacing repeatable tasks
while predictive analytics is replacing certain levels of management and decision making.
It goes beyond manufacturing — travel agents, flight attendants and more are all
vulnerable. Where does this leave the human work force? In 2018, its up to companies to
look at their human resources and determine the best way to pivot them into future
positions. This means identifying the staff who are willing to embrace different aspects
of jobs: management, problem solving, troubleshooting and other areas that require a human
element. By planning ahead, this will save the company money as it transitions to cheaper
computer-driven labor while maximizing the human potential already on the payroll.
What have been the changes in HR in the recent years?
In 2019, it boiled down to how HR can support the growth of the organization through
people and scaling through sustainable HR practices. This theme then manifests itself to
the next adjacent area and that is about how we can help employees do meaningful work.
This can be done by removing barriers, fixing defects, and enabling self-service.
No process or policy can be so well designed as to properly cover every situation. When
common sense is at odds with policies or practices, we should be able to make
high-judgment exceptions. How can we as HR leaders ensure that "the process does not
become the thing"? We have to teach people how to make high judgment exceptions.
Organizations need to realize that they will never be good at building and solving for
everything in HR systems and technology, so they need to leverage the external HR tech,
digital and start-ups networks to build a 3rd party partnership-based ecosystem that works
on solving the key organizational priorities and challenges. As we come to the end of
2018, a year that was eventful both geopolitically and economically, it would not be wrong
to state that it has le us with a world that is grappling with some great opportunities,
threats such as protectionism, and some harsh economic realities. Thus, the right
"bifocal strategy" i.e. a balance of looking into the future and executing in
the here and now, is key.
HR has been evolving a lot as a function in the last couple of years. The war for
talent has been increasing, and as a consequence organizations are looking at HR more
prominently than before. A lot of the future of HR will be decided by the investment of
top leaders in some of the most serious challenges HR is facing today. The changes happen
slowly so most challenges wont be addressed and solved in the short run.
In a recent survey done by the Society for Human Resource Management, HR professionals
say that the three biggest challenges facing HR executives over the next 10 years are: 1.
Retaining and rewarding the best employees (59%) 2. Developing the next generation of
corporate leaders (52%) 3. Creating a corporate culture that attracts the best employees
(36%)
This research also explores investment challenges, talent management tactics,
evolvement of the workforce, and critical HR competencies and knowledge.
Well, a lot of the challenges mentioned start with hiring. And nowadays hiring is
connected to having a strong employer brand. However, in most organizations HR and
Marketing dont communicate with each other as much as they should. They dont interact
enough to understand the value proposition they offer to candidates or the path that one
must take to become a leader in the company, and most C-level executives do not recognize
HR enough to let them co-lead, along with the CEO, the implementation of a certain company
culture.
So if we look at the upcoming 10 years of HR, here is what will be different:
1. HR WILL BE FLEXIBLE
As shown in the survey by SHRM, providing flexible work arrangements will be a top
priority for organizations. 9 to 5 work is over, young professionals are looking for
places where they can have the chance to take time off to be creative, be able to take a
break without being judged, go solve administrative issues without having to take a day
off, or even work from home with pre-agreed objectives.
Employees want flexibility and will excel in their performance if they are allowed to
adjust both their work and personal lifestyle. HR is starting to understand that, we see
many hot startups implementing such methods and the next 10 years will only bring more of
this.
2. HR WILL BE SOCIAL
Intranet, internal social platforms, internal "Face books", and many other
ways of promoting Online collaboration and communication across the company will be part
of HR responsibilities in the future. HR can use social tools to drive behaviors in office
performance by giving extra benefits to high performers of the month or give incentives to
employees who are great brand ambassadors. The work experience will be taken live and will
bring a stronger social component to organizations.
3. HR WILL BE MOBILE
We all know that mobile is the new hot trend in almost every industry; HR is no
exception. If you are a recruiter, you want to wake up, have a nice breakfast, and check
your mobile recruiting app while commuting to your office to see the new applicants you
have in the system. You will want to leave comments, assign tasks, and when arriving to
the office have your team already working on such tasks. You will want to able to check,
while having a coffee before entering an individual performance meeting, what comments
were given during the last meeting. You will want to be able to check how youre
performing in terms of workforce happiness, to check the latest stats on your mobile and
give a report to your CEO.
All in all, the lifestyle of an HR person will not be desktop-based. It will be
wherever they are, whenever they wants.
4. HR WILL BE ABOUT DATA
How many days does it take to hire a new person? What is the best quarter to hire
specific profiles? When are people the happiest throughout the year? Who are the most
performing people and why? What are the trending skills we need to acquire in the next
hire? These and many more questions are all connected to the hot topic of Big Data. But
data is meaningless without interpretation and context. HR will have a great deal of
responsibility in analyzing the data, interpreting it and making the right decisions in
order to ensure the right acquisition, training, development and retention of talent.
5. HR WILL BE INTEGRATED
This might sound strange, but yes, HR will become set very diverse skills. HR will be
composed by tech savvy people, data scientists, recruiter experts, connectors and brand
editors. People that are able to do copy-writing, for job descriptions that correspond to
the company culture. People that are able to read data and forecast trends. People that
are on top of the latest technology and can solve problems or bring additional benefits to
the company. People that are connectors, socially active. The next decade is crucial for
HR to evolve and become a key role in any organization. HR might no longer be a single
department in the future. HR might be part of something greater. Exciting times are ahead
of HR.
BUSINESS OVERVIEW
Our Company was incorporated as Husys Consulting Private Limited under the provisions
of the Companies Act, 1956 vide certificate of incorporation dated August 24, 2005 in
Hyderabad, Subsequently, our Company was converted into public limited Company pursuant to
which the name of our Company was changed to "Husys Consulting Limited" vide
fresh certificate of incorporation dated August 06, 2015. Our Company got listed on Emerge
Institutional Trading Platform of National Stock Exchange of India Limited (NSE) on August
21, 2015. Further, our Company has made an application for de-listing from on Emerge
Institutional Trading Platform of NSE vide letter dated April 25, 2016.
Husys has been in the forefront of innovation for HR Industry in India. With many first
of its kind innovation we carved a niche for ourselves. We are the first one to bring HR
Function Management for Small & Medium Industries when the whole world did not
recognise the significance for a great economy. We are ahead in our learning curve and can
use it to leap jump to capture the opportunity that is offering at this time. We foresee a
great future with the thrust of Startup and Stand-up India initiatives and also the Make
in India programs are a boon for our Company. Demonitisation has added fuel to the growth
prospects of your Company to multiply our opportunities.
SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL YEAR
Our strategic approach last year to the business growth has given us a chance to set
your company towards higher growth in future. All the initiatives have impacted in
improving our services and client confidence.
SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS
The Human Resources Industry thrives under a dynamically changing and highly
competitive business environment.
Your Company too faces several business risks, of which some prominent ones are
discussed hereunder alongside the risk mitigation approach followed by the Company:
Concentration Risk: We have taken great steps in ensuring that the client portfolio
and the partners are diverse, reducing the impact on our business with concentration. This
helps us to maintain a balanced growth with our challenges of loosing clients and
impacting the business results in future.
Availability of Skilled Manpower: We being in the Human Resources Industry, our
efforts to generate greater flow of skilled and focused manpower paid off. We do run the
programs to tap our own talent. Our programs on HR Skills development and working with
Government bodies like the Telangana Academy for Skills & Knowledge and AP Skill
Development Corporation has been a success in building future talent with Government
support. This generates the required manpower for our future. Also the program of
"HRPrenuership" for encouraging people to start HR business helps us to build
the future Franchise Network strongly.
Competition Risk: HR services market is a very competitive space. However, our
investment into the HR Cloud technology is giving us an opportunity to make potential
competitors into users and also implementors. This gives significant advantage to Husys
without bothering about the competition, gains the expertise of those Individuals and
small HR companies adapting to our technology in future. This mitigates the risk of
competition and turning into collaborative opportunity.
New Technologies: Emerging technologies are more becoming a friends of Husys in
collaborating on our platforms. There is a significant amount of investment done in the HR
space in technology on a specialized areas. Your company is in a better position to use
those technologies and save significant amount of money and also efforts and bringing
business results faster.
International Risks: We have ensured that all our contracts with the international
partners takes care of the risk in exchange rates and contractual compliance point of
view. This ensures that any changes in exchange rates etc., would not be impacted on your
company.
Margin Pressures: While there is a significant pressure of margin, we are
mitigating by asking for more business volumes to ensure that your company resources are
utilized least and get maximum benefit of growth. We are also providing alternative
methods of pricing based on the need of the clients, which is keeping us on a high respect
for clients.
DISCUSSION ON RESULT OF OPERATION
The following discussion on results of operations should be read in conjunction with
the audited financial results of our Company for years ended March 31st, 2019 and March
31st, 2018.
Overview of Revenue & Expenditure Revenues
Our Companys revenue is primarily generated from Sales of services: -
Domestic Sale
Export Sale.
|
|
(Amount in Lacs) |
| Particulars |
As at March 31, 2019 |
As at March 31, 2018 |
| Income |
|
|
| Revenue from Operations |
3,282.99 |
2,286.50 |
| Increase/Decrease in % |
43.58% |
57.17% |
| Other Income |
25.21 |
6.92 |
| Increase/Decrease in % |
264.05% |
100.71% |
| Total Revenue |
3,308.20 |
2,293.42 |
Husys As it Stands today:
Husys positioning has been perfect for the environment for people focus and growing
Economy in future. We are strategically aligned to take advantage of the economic
condition of India. Our future focus of services rightly fits in the Growth of Startup and
SMEs, People Focus, Business acquisitions and expansions in the country. We have service
offerings for extreme growth conditions like the HR cloud Technology, Operational HR
Support with Consulting. While the down trend also uses the HR Cloud Technology to enable
the HR with lesser cost and more effectiveness. Our outplacement service is used by
company at the time they are cutting down their operations due to M&A, Takeovers and
Business reduction stages. Our future investment in Technology and Franchise Partner
Development take us close to every business who are looking forward for such innovation
and support in HR space.
The following is the Income mix in terms of value of total income of our Company for
different services.
|
|
(Amount in Lacs) |
| Particulars |
As at March 31, 2019 |
As at March 31, 2018 |
| Revenue from Operation |
|
|
| Sales of Services- |
|
|
| Domestic Services |
480.76 |
221.68 |
| Export Services |
2,802.23 |
2,064.82 |
| Total Revenue from Operation |
3,282.99 |
2,286.50 |
The following is the Income mix in terms of percentage of total income of our Company
for different services.
| Particulars |
As at March 31, 2019 |
As at March 31, 2018 |
| Revenue from Operation |
|
|
| Sales of Services- |
|
|
| Domestic Services |
14.64% |
9.70% |
| Export Services |
85.36% |
90.30% |
| Total Revenue from Operation |
100.00% |
100.00% |
Other Income
Other operating revenue consists of Interest and miscellaneous income.
|
|
(Amount in Lacs) |
| Particulars |
As at March 31, 2019 |
As at March 31, 2018 |
| Interest |
24.81 |
6.55 |
| Miscellaneous income |
0.40 |
0.38 |
| Total Other Income |
25.21 |
6.93 |
The following is the other income mix in terms of percentage of other income of our
Company for other incomes:
| Particulars |
As at March 31, 2019 |
As at March 31, 2018 |
| Interest |
98.41% |
94.53% |
| Miscellaneous income |
1.59% |
5.47% |
| Total Other Income |
100.00% |
100.00% |
Trade Receivables
The following table presents the details of our Companys trade receivables:
|
|
(Amount in Lacs) |
| Particulars |
As at March 31, 2019 |
As at March 31, 2018 |
| Unsecured and Considered Good |
|
|
| Outstanding for a period not exceeding six months |
157.02 |
133.59 |
| As a % of total Trade receivables |
87.12% |
79.31% |
| Outstanding for a period exceeding six months |
23.21 |
34.86 |
| As a % of total Trade receivables |
12.88% |
20.69% |
| Less: Provision for doubtful debts |
NIL |
NIL |
| As a % of total Trade receivables |
100.00% |
100.00% |
| Total –Trade receivables |
180.23 |
168.45 |
| Avg. Trade receivables |
174.34 |
251.82 |
| Trade receivables Turnover Ratio |
18.22 |
13.57 |
| Average Collection Period ( in days) |
20.04 |
26.89 |
Expenditure
Our Companys operating expenditure consists of following: -
Employees benefit expenses, Finance cost, Depreciation and other expenses.
RESULTS OF OPERATIONS
Statement of profits and losses
The following table sets forth, for the fiscal years indicated, certain items derived
from our Companys audited restated financial statements, in each case stated in absolute
terms and as a percentage of total sales and/or total revenue.
|
|
(Amount in Lacs) |
| Particulars |
As at March 31, 2019 |
As at March 31, 2018 |
| INCOME |
|
|
| Revenue from Operations |
|
|
| Revenue |
3,282.99 |
2,286.50 |
| Increase/Decrease in % |
43.58% |
57.17% |
| Other Income |
25.21 |
6.92 |
| Increase/Decrease in % |
264.05% |
100.71% |
| Total Revenue |
3,308.20 |
2,293.42 |
| EXPENDITURE |
|
|
| Employee benefit expenses |
2,927.75 |
1,975.01 |
| As a % of Total Revenue |
88.50% |
86.12% |
| Finance costs |
3.92 |
3.14 |
| As a % of Total Revenue |
0.12% |
0.14% |
| Depreciation and amortization expense |
31.03 |
30.06 |
| As a % of Total Revenue |
0.94% |
1.31% |
| Other expenses |
134.79 |
121.90 |
| As a % of Total Revenue |
4.07% |
5.32% |
| Total Expenditure |
3,097.49 |
2,130.11 |
| As a % of Total Revenue |
93.63% |
92.88% |
| Profit before prior period items |
210.71 |
163.31 |
| Exceptional Items |
0 |
0 |
| Depreciation written back |
0 |
0 |
| Profit on sale of Assets |
0 |
0 |
| Extraordinary Items |
0 |
0 |
| Profit before tax |
210.71 |
163.31 |
| PBT Margin |
6.37% |
7.12% |
| Tax expense : |
|
|
| (i) Current tax Provision |
62.24 |
50.39 |
| (ii) Deferred Tax Provision/(Assets) |
(4.18) |
3.37 |
| Total |
58.06 |
53.76 |
| As a % of Total Revenue |
1.75% |
2.34% |
| Profit for the year |
152.65 |
109.55 |
| PAT Margin |
4.61% |
4.78% |
FISCAL YEAR ENDED MARCH 31, 2019 COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2018
Income
Total revenue increased to ? 3,282.99 Lacs or 43.58% from ? 2,286.50 lacs in the fiscal
year ended March 31, 2019. The revenue has increased due to increase in sales of Domestic
as well as Export services from Company.
Expenditure
Total Expenditure increased by ? 967.38 Lacs, or 45.41%, from ? 2,130.11 Lacs in the
fiscal year ended March 31, 2018 to Rs.3,097.49 Lacs in the fiscal year ended March 31,
2019. Overall expenditure has increased mainly due to increase in Employee Benefits
Expenses, finance costs, other costs which are directly linked to our operations.
Finance Costs
Finance Costs in terms of value and percentage increased by ? 0.78 Lacs and 3.79%, from
? 3.14 Lacs in the fiscal year ended March 31, 2018 to Rs.3.92 Lacs in the fiscal year
ended March 31, 2019. Overall finance cost has increased mainly due to FE Fluctuation
charges.
Employee Benefit Expenses
Employee benefit expenses in terms of value and percentage increased by ? 952.74 Lacs
and 48.24% from ? 1,975.01 Lacs in the fiscal year ended March 31, 2018 to ? 2,927.75 Lacs
in the fiscal year ended March 31, 2019. Overall employee cost has increased mainly due to
increase in salary to staff, corresponding increase in Employee Provident Fund. The number
of personnel employed also increased during the year on account of higher operations.
Depreciation & Amortization
Depreciation in terms of value increased by ? 0.97 Lacs or 20.21% from Rs.30.06 Lacs in
the fiscal year ended March 31, 2018 to ? 31.03 Lacs in the fiscal year ended March 31,
2019. Increase in Depreciation was due to additions to fixed assets.
Other Expenses
Other Expenses in terms of value and percentage decreased by ? 12.89 Lacs or 10.57%,
from ? 121.90 Lacs in the fiscal year ended March 31, 2018 to ? 134.79 Lacs in the fiscal
year ended March 31, 2019. Other expenses increased mainly due to decrease in
Advertisement, Insurance Marketing cost and Misc. Expenses.
Net Profit after Tax and Extraordinary items
Net Profit has increased by ? 43.10 Lacs or 39.34% from profit of ? 109.55 Lacs in the
fiscal year ended March 31, 2018 to profit of ? 152.65 Lacs in the fiscal year ended March
31, 2019. Net profit has increased due to increase in revenue from Operations.
INTERNAL CONTROL SYSTEM
Your Company has an adequate system for internal control covering all financial and
operating functions commiserating with the Companys size and business. These have been
designed to provide reasonable assurance with regard to recording and providing reliable
financial and operational information, complying with applicable statutes, safeguarding
assets from unauthorized use or losses, executing transactions with proper authorization
and ensuring compliance of corporate policies. These ensure that its assets and interests
are carefully protected. The systems and processes are continually reviewed for its
effectiveness and augmented by documented policies and procedures. A strong internal audit
programme under the leadership of its dedicated Internal Audit team that ensures adequate
processes, systems and internal controls are implemented strictly. The Audit Committee,
which is a subcommittee of your Board of Directors, reviews adherence to internal control
systems, internal audit reports and implementation of suggestions. This Committee reviews
all Half yearly financial results of the Company and conveys to the Board its
recommendation for consideration of such results and their approval.
HUMAN RESOURCE
Human resource management (HRM) is the strategic and coherent approach to the
management of an organizations most valued assets - the people working there who
individually and collectively contribute to the achievement of the objectives of the
business. Human resource management is both an academic theory and a business practice
that addresses the theoretical and practical techniques of managing a workforce. Human
Resource functions and initiatives of the Company are driven by a strong set of values and
policies. Your Company has maintained a competitive, healthy and harmonious work
environment at all levels. We have taken new initiatives to strengthen the Companys
recruitment process, values and vision programmes, leadership and Performance management.
The Companys HR policies and processes are aligned to effectively drive its expanding
business and emerging Opportunities. This has been achieved by continuously investing in
learning and development programs, creating a compelling work environment, empowering
employees at all levels and maintaining well-structured reward and recognition mechanisms.
Employee engagement remains a key focus of HR initiatives undertaken by the Company. Husys
enables its employees to meet their career objectives through rotation across projects,
functions and locations. The Company helps employees build new skills and competencies and
promotes knowledge sharing and team building.
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