Fast moving consumer goods (FMCG) is the 4th largest sector in the Indian economy.
There are three main segments in the sector – food and beverages which accounts for
19 per cent of the sector, healthcare which accounts for 31 per cent and household and
personal care which accounts for the remaining 50 per cent. The FMCG sector has grown from
US$ 31.6 billion in 2011 to US$ 52.75 billion in 2017-18. The sector is further expected
to grow at a Compound Annual Growth Rate (CAGR) of 27.86 per cent to reach US$ 103.7
billion by 2020.FMCG revenue grew 14.8 per cent during October-December 2017. FMCG sector
is expected to register net revenue growth of 11.8 per cent in Q4 March 2018. Indian FMCG
sector is forecasted to report revenue growth of around 11-12 per cent in FY19 from 8 per
cent in FY18. FMCGs urban segment is expected to have a steady revenue growth at 8 per
cent in FY19 and the rural segment is forecasted to contribute 15-16 per cent of total
income in FY19.* Accounting for a revenue share of around 45 per cent, rural segment is a
large contributor to the overall revenue generated by the FMCG sector in India. Demand for
quality goods and services have been going up in rural areas of India, on the back of
improved distribution channels of manufacturing and FMCG companies. Urban segment
accounted for a revenue share of 55 per cent in the overall revenues recorded by FMCG
sector in India. FMCG Companies are looking to invest in energy efficient plants to
benefit the society and lower costs in the long term. Patanjali will spend US$ 743.72
million in various food parks in Maharashtra, Madhya Pradesh, Assam, Andhra Pradesh and
Uttar Pradesh. Dabur is planning to invest Rs 250-300 crore (US$ 38.79-46.55 million) in
FY19 for capacity expansion and is also looking for acquisitions in the domestic market.
Growing awareness, easier access, and changing lifestyles are the key growth drivers for
the consumer market. The focus on agriculture, MSMEs, education, healthcare,
infrastructure and employment under the Union Budget 2018-19 is expected to directly
impact the FMCG sector. These initiatives are expected to increase the disposable income
in the hands of the common people, especially in the rural area, which will be beneficial
for the sector.
(Source:-https://www.ibef.org/industry/fmcg-presentation)
Indias Foreign Trade Policy also known as Export Import Policy (EXIM) in general, aims
at developing export potential, improving export performance, encouraging foreign trade
and creating favorable balance of payments position. Foreign Trade Policy is prepared and
announced by the Central Government (Ministry of Commerce). Foreign Trade Policy or EXIM
Policy is a set of guidelines and instructions established by the DGFT (Directorate
General of Foreign Trade) in matters related to the import and export of goods in India.
Indian EXIM Policy contains various policy related decisions taken by the government in
the sphere of Foreign Trade, i.e., with respect to imports and exports from the country
and more especially export promotion measures, policies and procedures related thereto.
Some highlights of the present Foreign Trade Policy 2015-20:-
India to be made a significant participant in world trade by 2020
Commerce Minister announced two new schemes in Foreign Trade Policy 2015-2020Two
New Schemes announced in FTP Are MEIS & SEIS. FTP 2015-20 introduces two new schemes,
namely "Merchandise Exports from India Scheme (MEIS)" and "Services Exports
from India Scheme (SEIS)". These schemes (MEIS and SEIS) replace multiple schemes
earlier in place, each with different conditions for eligibility and usage.
Merchandize exports from India (MEIS) to promote specific services for specific
Markets Foreign Trade Policy
For services, all schemes have been replaced by a Services Export from India
Scheme(SEIS), which will benefit all services exporters in India.
FTP would reduce export obligations by 25% and give boost to domestic manufacturing
Incentives (MEIS & SEIS) to be available for SEZs also. FTP benefits from both
MEIS & SEIS will be extended to units located in SEZs. – Both MEIS and SEIS firms
and service providers can now get subsidized office spaces in SEZ (Special Economic
Zones), along with other benefits. With a view to boost the Special Economic Zones,
Government has decided to extend both the incentive schemes for export of goods and
services to units in SEZs. e-Commerce of handicrafts, handlooms, books etc., eligible for
benefits of MEIS. e-Commerce exports up to Rs.25000 per consignment will get SFIS
benefits. e-Commerce Exports Eligible For Services Exports From India Scheme. – As
part of Digital India vision, mobile apps would be created to ease filing of taxes and
stamp duty, automatic money transfer using Internet Banking have been proposed. >
Online procedure to upload digitally signed document by Chartered Accountant/Company
Secretary/Cost Accountant to be developed.
Agricultural and village industry products to be supported across the globe at
rates of 3% and 5% under MEIS. Higher level of support to be provided to processed and
packaged agricultural and food items under MEIS.
Industrial products to be supported in major markets at rates ranging from 2% to
3%.
Branding campaigns planned to promote exports in sectors where India has
traditional Strength.
Business services, hotel and restaurants to get rewards scrips under SEIS at 3% and
other specified services at 5%.
Duty credit scrips to be freely transferable and usable for payment of customs
duty, excise duty and service tax.
Debits against scrips would be eligible for CENVAT credit or drawback also.
Nomenclature of Export House, Star Export House, Trading House, Premier Trading
House certificate changed to 1,2,3,4,5 Star Export House. – Some major overhauling of
nomenclature and naming have been done. For instance, Export House, Star Export House,
Trading House, Star Trading House, Premier Trading House certificate has been changed to
One, Two, Three, Four, Five Star Export House. The allocation of the status will now be
based on US dollars, instead of Indian Rupees
The criteria for export performance for recognition of status holder have been
changed from Rupees to US dollar earnings. – A new position called ‘Status
Holder have been formulated, which will recognize and reward those entrepreneurs who have
helped India to become a major export player. All IT and ITeS firms, Outsourcing companies
and KPOs can rejoice.
Manufacturers who are also status holders will be enabled to self-certify their
manufactured goods as originating from India. – Tax and duty on Indian manufacturers
have been reduced, to boost Make in India vision
Reduced Export Obligation (EO) (75%) for domestic procurement under EPCG scheme.
Inter-ministerial consultations to be held online for issue of various licences.
No need to repeatedly submit physical copies of documents available on Exporter
Importer Profile.
Validity period of SCOMET export authorisation extended from present 12 months to
24 months.
(Source:-
https://www.indiainfoline.com/article/news-top-story/economics-for-everyone-india%E2%80%99s-foreign-trade-policy-ftp-exim-115052500326_1.html)
OUR BUSINESS:-
We are a leading import export solution provider. Our company started the business of
trading of exim licences. Since July 2014 onwards company were also started to import the
various goods. During the financial year 2014-15, we have started trading and supply of
industrial and engineering plastic Components as per customer requirement. And during the
financial year 2015-16, our company has started trading of various FMCG products within
the country. Our products mainly cater to three business segments viz trading of exim
licences trading and import of industrial and engineering plastic Components
FMCG products
We are leading trader of EXIM SCRIPS all over India.
We are one of the leading trader and importer of Plastic Moulded Products .The aim of
our organization is to enhance customer satisfaction by providing consistent good quality
products. We can provide the best in any kind of Moulding cum deep moulding and Blister
packing.
PLASTIC PRODUCTS
List of Engineering Plastic Products: Plastic Beads PS Glass Beads Plastic Beads
Caractor Plastic Beads Assrtd Shape & Colour Plastic Glass Plastic File Folder Plastic
Table Plastic Photo Frame Ceramic Beads Ladies College Bag Hoftex Glass Beds Garments
Accessories Plastic Botton Plastic Shoe Parts Intimation Ring Hair Accessories Clip
Shoulder Pouch
FMCG Products
We are also engaged in the business of personal care and health care products. Our
product offering is well diversified across segments like skincare, hair care, therapeutic
products, ayurvedic food supplements. Some of our major products have become household
names such as Powder, Fair and Handsome Fairness Cream, Hair Oil, Soap, perfume etc. We
have a strong presence in the FMCG sector and our product range encompasses the skin care,
beauty care, hair care, medicines. Our FMCG business can be categorized as :-
Personal Care
Health Care
SWOT ANALYSIS OF THE COMPANY
| STRENGTHS |
WEAKNESS |
| Sound experience of Promoters |
Lower levels of Expenditure in the Research and |
| Availability of Low cost and skilled technical and professional Manpower provides
competitive advantage to Company. |
Development. |
|
Limited budget. |
|
The struggle to constantly create new designs |
| Unique designs. |
The possible inability to meet demand due to the small size of the company. |
| The flexibility to provide customized pieces. |
|
| A comprehensive distribution network from a robust website. |
|
| OPPORTUNITIES |
THREATS |
| A growing market that is unaware of contemporary Ti Designs products. |
Intense competition from the old and well situated competitors. |
| The injection of fresh , creative designs in a somewhat stagnant industry. |
High entry cost in the newer markets. |
|
Artistics copycats that enter the market and mimic Steves designs. |
|
A slowdown of the economy that will have a reduction on individuals discretionary
income. |
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
(Amount in Lacs)
| PARTICULARS |
FY 2017-18 |
FY 2016-17 |
| Revenue from operations |
34363.76 |
40553.63 |
| Other income |
18.24 |
56.69 |
| Total Income |
34382.00 |
40610.32 |
| Less: Total Expenses before Depreciation, Finance Cost and Tax |
34200.70 |
40557.49 |
| Operating Profits before Depreciation, Finance Cost and Tax |
181.30 |
52.83 |
| Less: Finance cost |
3.68 |
5.75 |
| Less: Depreciation |
1.04 |
0.70 |
| Profit / (Loss) Before Tax |
176.58 |
59.27 |
| Less:- Current Tax |
55.00 |
20.00 |
| Less: Deferred Tax |
-0.08 |
0.05 |
| Profit/ (Loss) after tax (PAT) |
121.66 |
39.22 |
| Balance carried to balance sheet |
121.66 |
39.22 |
During the year under review, Company has earned total income of Rs. 34382.00 Lakh
as against the total income of Rs. 40610.32 Lakh of previous year. The total income
of the company was decreased by 18.11% over previous year. The profit before tax in the
financial year 2017-18 stood at Rs 176.58 Lakh as compared to profit of Rs. 59.27 Lakh for
last year and net profit after tax stood at Rs. 121.66 Lakh compared to profit of Rs.
39.22 Lakh for previous year, increase in Profit is due to decrease in Total expenses from
40551.04 Lacs in FY 2016-17 to 34205.43 lacs in FY 2017-18.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY:
Internal Control system and adequacy Internal Control measures and systems are
established to ensure the correctness of the transactions and safe guarding of the assets.
Thus, internal control is an integral component of risk management. The Internal control
checks and internal audit programmes adopted by the Company plays an important role in the
risk management feedback loop, in which the information generated in the internal control
process is reported back to the Board and Management. The internal control systems are
modified continuously to meet the dynamic change. Further the Audit Committee of the Board
of Directors reviews the internal audit reports and the adequacy and effectiveness of
internal controls.
RISKS AND CONCERNS
Our results of operations could potentially be affected by the following factors
amongst others: 1. Our failure to keep pace with rapid changes in Our Industry 2.
Disruption in our business.
3. General economic and business conditions in the markets in which we operate and in
the local, regional and national economies;
4. Our ability to successfully implement our growth strategy and expansion plans, and
to successfully launch and implement various projects and business plans for which funds
are being raised through this issue; 5. Our ability to effectively manage a variety of
business, legal, regulatory, economic, social and political risks associated with our
operations; 6. Failure to obtain any approvals, licenses, registrations and permits in a
timely manner; 7. Changes in laws and regulations relating to the industries in which we
operate; 8. Recession in the market; 9. Failure to adapt to the changing technology in our
industry of operation may adversely affect our business and financial condition; 10.
Changes in political and social conditions in India or in countries that we may enter, the
monetary and interest rate policies of India and other countries, inflation, deflation,
unanticipated turbulence in interest rates, equity prices or other rates or prices; 11.
Occurrence of natural disasters or calamities affecting the areas in which we have
operations; 12. Any adverse outcome in the legal proceedings in which we are involved; 13.
Concentration of ownership among our Promoters. 14. The performance of the financial
markets in India and globally; 15. Failure to comply with regulations prescribed by
authorities of the jurisdictions in which we operate; 16. Inability to successfully obtain
registrations in a timely manner or at all; 17. Our ability to attract, retain and manage
qualified personnel; 18. Disruption in supply of Raw Materials; 19. Effect of lack of
infrastructure facilities on our business.
CAUTIONARY STATEMENT
There are certain statements in this report which the Company believes are forward
looking. The forward looking statements stated in this report could significantly differ
from the actual results due to certain risks and uncertainties, including but not limited
to economic developments, Government actions, etc.
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