Today's Top Gainer
Note:Top Gainer - Nifty 50 More
Global Overview :
World growth remained stagnant in the year 2018 to 3.6% as against 3.8% in 2017. It is surmised that the year 2019 and also 2020 will not dramatically change the economic scenario because of impending trade war between the USA and China. Because of this most of the economists fear that if this trade war continues, it will also lead to currency war.
Indian Scenario :
Your countryachieved GDP of 6.8% in 2018. But it is anticipated that GDP for 2019-20 will be 7%. It can be
emphatically stated that with this growth rate India cannot achieve dollar 5 trillion economy.
Industry Overview :
Your Companys customers are wide based and it caters mainly to cable and wires industries.
Industry Structure and Developments :
The central government has put deep emphasis on electrification. It has target of electricity in all houses by 2023. If this fructifies, your Company will be greatly benefitted because of tremendous increase in demand for its products.
Financial Performance for 2018-19 is summarized below:-
|Sales & other Income||47.11||46.43|
|Profit/ (Loss) before Depreciation , Interest & Tax||10.94||16.79|
|Less : Depreciation||0.09||0.00|
|Profit/ (Loss) before Tax||10.85||16.78|
|Less : Provision for Tax|
|Tax Expense for earlier years||0.00||0.00|
|Profit/ (Loss) After Tax||6.96||11.94|
|Add: Profit brought forward from previous year.||86.92||74.98|
|Balance Carried to B/S||93.88||86.92|
The overall future scenario for Indian Economy will not be rosy in 2019-20 and also 2020-21, unless miracle happens the auto, mining, reality, cotton, etc. industries will largely adversely impacted. This spin-off will affect Kkalpana Plastick also.
Opportunity and Threats:
The use of plastic made products has gained considerable response from the customers. In number of items of Retail and Industrial consumption, it is found that the use of Plastic made products has replaced many other products as the best substitute product. This increase, in the use of plastic Products, will open many new areas for the Industry in the years to come.
India will need to increase the generation of electricity from 280GW to 710GW. This will enhance the growth prospect of cable industry and accordingly your company.
Further, the likely growth in Indian economy will increase the disposable income of Indians and the purchasing power will get enhanced.
As already mentioned above, the main threat is from unorganized sector which is, however, gradually receding due to introduction of GST.
India will not be able to remain immune to recession in world economy, if it does happen. There is fear that the ongoing import tariff trade war and currency war will push the world economy to recession and unemployment
Segment wise or Product wise Performance:
The Company operates in single business segment of plastic compounds. However, the company has not undertaken any operation during the Financial Year 2018-19.
Risks and Concerns:
Based on operations of the Company, new risks, if any, are identified and steps are taken to mitigate the same. At Kkalpana Plastick, management ensures that risks are adequately measured, estimated and enrolled to enhance shareholders value.
Internal Control System:
The Company has a well-established internal control systems and procedures covering all functional areas. It provides, among others, a reasonable assurance that transactions are executed with management authorization and ensures preparation of financial statements in conformity with established accounting principles and that the assets of the Company are adequately safeguarded against significant misuse or losses. The Audit Committee of the Board periodically reviews the terms of reference and the adequacy of internal control system, significant observations and their disposals and remedies if any.
Human Resources and Industrial Relations:
The Company appreciates performance of the employees for the year and anticipate the much more for the years to come. Your Company believes in employee empowerment across the entire organization in order to achieve organizational effectiveness. The Industrial relations of the Company was cordial and there were no instances of employee disputes arising during the year.
Certain statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, estimates, and expectations and others may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws, natural calamities and so on over which the company does not have any direct control.
|For and on Behalf of the Board|
|2B, Pretoria Street 2B Pretoria Street ,|
|Kolkata-700071 Kolkata 700 071|
|Date: 27th May, 2019||Deo Kishan Kalwani (DIN: 03363450)|
|Date: 27th May, 2019||Whole Time Director|
|Ramakant Mishra (DIN: 06882372)|