maxgrow india Management discussions

INDUSTRY STRUCTURE AND DEVELOPMENT:

Currently your company Maxgrow India Limited is in the business of trading, However, due to challenges from the industry players and non approval of name of the company the Bombay Stock Exchange, your company could not commence business in the targeted segment. The Company is diversifying into different business activities with a view to optimize the utilization of the resources.

OUTLOOK:

We have been putting in significant efforts towards establishing the new business lines. However the outlook of new business dimensions will totally depend on market circumstances and selected sector for business. The new management of your company will put in efforts in identifying new age business opportunities which is a non-trivial task and depends on a number of factors. Hence information is being collected from a number of sources and based on which your management will embark upon a suitable strategy. Also expert opinion is being sought in order to cover various sector specific attributes such as level of competition, economic activities etc.

OPPORTUNITIES AND THREATS:

Economic growth of around 7% which, makes India one of the fastest-growing G20 economy. The acceleration of structural reforms, the move towards a rule-based policy framework and low commodity prices have provided a strong growth impetus to the country as a whole. Recent deregulation measures and efforts to improve the ease of doing business have also boosted foreign investment. In line with this impetus, key opportunities and threats are being identified for the sectors / business lines being evaluated.

RISKS AND CONCERN:

While setting up and conducting business operations, the Company is exposed to a variety of risks that are inherent to the sectors will operate in. However, we have an intense risk management framework encompassing risk organization structure, procedures and the risk management policies to effectively identify and tackle risks. Some of the risks that we are possibly exposed to include:

• Increasing employee benefits costs

• Broad economic uncertainties

• Tech and data/cyber risks

• Complying with laws

• Attracting and retaining talent

Hence, the Global and Indian economy will have a very great impact on the future growth considering that the organization is undergoing a major transformation.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

Considering the present level of operations of your Company, the maagement has evolved a system of strong internal controls to ensure that the assets are safeguarded and transactions are authorized, recorded and correctly reported. The internal control system is supplemented by management reviews and independent periodical reviews by the external chartered accountancy firms, which evaluate the functioning and quality of internal controls and provides assurance of its adequacy and effectiveness. The Company has an audit committee, which oversees the internal control systems and procedures of the Companys financial operating processes and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible. Audit Committee reviews such audit findings and the adequacy of internal control systems. The Statutory Auditors of the Company also interact with the Audit Committee to share their findings and the status of corrective actions under implementation.

DISCUSSION AND FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

During the year, total income of the Company shrunk to Rs. 213.89 Lacs from against Rs. 908.21 Lacs in the previous year. During the Financial Year, the Company was operating under one segment only (Human Resources).

CAUTIONARY STATEMENT:

The statements in the Management Discussion and Analysis Report describing the Companys objectives, activities, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could influence the Companys operations include economic developments within the country, demand and supply conditions in the industry, changes in Government regulations, tax laws and other factors.