Today's Top Gainer
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Industry Structure and Development:
The Company is engaged in providing Management and Consultancy Services inter-alia engineering, information technology & technical including other Management and Consultancy Services and it also in the business of trading of all kinds of goods including agricultural products, metal & metal alloys etc. All these activities are facing competitive, taxation, regulatory headwinds and game changing structural changes. Your Company is gearing up to face such developments and re-engineer its business strategy as required from time to time. Much awaited revival of economic growth and its resultant benefits, early signs of which are being felt, are likely to provide favorable business conditions for the Company.
Indias economy appears to have slowed down slightly in 2018-19. The proximate factors responsible for this slowdown include declining growth of private consumption, tepid increase in fixed investment, and muted exports.The 2018-19 GDP growth of 7% is the lowest in five years.
The Government of India recognizes the importance of promoting growth in services sectors and provides several incentives in wide variety of sectors such as health care, tourism, education, engineering, communications, transportation, information technology, banking, finance, management, among others. Services sector growth is governed by both domestic and global factors. The Indian facilities management market is expected to grow at 17 per cent CAGR (Compound annual growth rate) between 2015 and 2020 and surpass the US$19 billion mark supported by booming real estate, retail and hospitality sectors.
The services sector, which accounts for 54 per cent of countrys gross value added (GVA), witnessed a growth rate moderated to 7.5 per cent in 2018-19 as compared to 8.1 per cent in 2017-18. While segments like tourism, trade, hotels, transport, communication and services related to broadcasting, public administration and defence saw deceleration, financial, real estate and professional services category accelerated.
Risk & Concerns and its mitigates:
This section lists forward-looking statements that involve risks and uncertainties. Our outlook, risks and concerns are as follows:
The economic environment, pricing pressures and decreased employee utilization rates could negatively impact our revenues and operating results. Any inability to manage our growth could disrupt our business, reduce our profitability and adversely impact our ability to implement our growth strategy. Intense competition in the market for technology services could affect our revenues. Our success depends in large part upon our management team and key personnel and our ability to attract and retain them.
New and changing corporate governance and public disclosure requirements add uncertainty to our compliance policies and increase our costs of compliance changes in the policies of the Government of India or political instability may adversely affect economic conditions in India generally, which could impact our business and prospects.
Internal Control Systems and Adequacy:
The Company as well as its subsidiary have good internal control systems.The adequacy of which has also been reported by the Auditors of both the Companies in their respective reports as required under the Companies (Auditors Report) Order, 2016 issued by the Government of India. Adequate system of internal control is in place which assures:
Proper recording and safeguarding of assets.
Maintaining proper accounting records and reliability of financial information.
Review the process of identification and management of Business Risks.
Environment Management System:
The Company and its subsidiary are committed to demonstrate continual improvement in our environmental performance in line with corporate values and stakeholders expectations.
Development in Human Resources and Industrial Relation:
The Industrial relations climate of the Company and its subsidiary continues to remain harmonious and cordial with focus on improving productivity quality and safety.
Financial and Operating Performance:
During the period under review, the total income including other income of the Company was stood at Rs. 120.73 Lac as against Rs. 52.65 Lac in the previous year. The Company reported net profit of Rs. 4.93 Lac as compared to loss of Rs. 23.95 Lac in its Financial Statement which are prepared in accordance with the provisions of the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India.
Segment wise performance:
During the year, the Company was engaged in providing management and consultancy services, therefore no separate segment for reporting.
Statements in this "Management Discussion Analysis" describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make difference to the Companys operation include globalization of services, improved business environment for services, reformed regulations in services to enhance performance and create new opportunities, adapting to innovative policies to the growth of services,tax regimes, economic developments in India and other incidental factors.