ECONOMIC SCENARIO:
India has emerged as the fastest growing major economy in the world as per the Central
Statistics Organization (CSO) and International Monetary Fund (IMF). India has retained
its position as the third largest startup base in the world with over 4,750 technology
startups, with about 1,400 new start-ups being founded in 2016, according to a report by
NASSCOM. The favorable policy as well as executive reforms by the Government to support
strong and sustainable growth, prudent fiscal regime and calibrated monetary easing that
reigned in inflation have helped to strengthen macroeconomic stability.
The improvement in Indias economic fundamentals has accelerated in the year 2015 with
the combined impact of strong government reforms, Reserve Bank of Indias (RBI) inflation
focus supported by benign global commodity prices. According to The World Bank, the Indian
economy is likely to grow at 7 per cent in 2016-17, followed by further acceleration to
7.6 per cent in 2017-18 and 7.8 per cent in 2018-19. Demonetization is expected to have a
positive impact on the Indian economy, which will help foster a clean and digitized
economy in the long run, according to Ms Kristalina Georgieva, Chief Executive Officer,
The World Bank... Though Indias fundamentals still remain strong, the demonetization
initiative undertaken by the Indian Government is expected to lower Indias GDP growth
from 7.6% in FY16 to 6.8% in FY17. The growth momentum should rise, driven by the
Governments policy initiatives in areas such as taxation (GST), foreign direct investment
(FDI), and the ease of doing business, among others Other major factors helping India stay
as a bright spot in the global economic landscape include the lower global oil price, with
positive impact on the countrys import bill, a well-regulated monetary policy by the
Reserve Bank to stabilize prices, and improving fiscal condition.
The Global Economy continues to face subdued growth owing to low commodity price and
low inflation rates, stagnant growth in advanced economies, and geopolitical and political
uncertainties. As per the World Steel Association, the US policy uncertainties, Brexit,
the rising populist wave in current European elections and the potential retreat from
globalization and free trade under the pressure of rising nationalism add a new dimension
of uncertainty in the investment environment. According to the International Monetary Fund
(IMF), the global economic activity is picking up with a long awaited cyclical recovery in
investment, manufacturing, and trade. It has projected economic activities to improve in
both advanced economies as well as EMDEs in CY 2017 and CY 2018, with global growth
projections at 3.5% and 3.6%, respectively. Growth in emerging markets and developing
economies is picked up in 2017 on the back of fiscal stimulus measures in developed
economies and narrowing of divergence between commodity exporters and importers. The main
factors that could possibly weigh on the medium-term growth prospects across many emerging
markets and developing economies are weak investments, below par levels of productivity
coupled with heightened policy uncertainty, and protectionist pressures.
INDUSTRY OVERVIEW:
Industrial sector plays an important role in realizing higher economic growth in the
country. India has become one of the most attractive destinations for investments in the
manufacturing sector. With the help of Make in India drive, India is on the path of
becoming the hub for hi-tech manufacturing as global giants such as GE, Siemens, HTC,
Toshiba, and Boeing have either set up or are in process of setting up manufacturing
plants in India, attracted by Indias market of more than a billion consumers and
increasing purchasing power. Foreign Direct Investment (FDI) inflows in Indias
manufacturing sector grew by 82 per cent year-on-year to US$ 16.13 billion during
April-November 2016. Various initiatives launched by the Government of India, such as
‘Make in India, ‘Invest India, ‘Start-Up India, and e-biz Mission Mode
projected under the National e-Governance plan are expected to further improve the ease of
doing business and provide a boost to manufacturing in the Country. The Agriculture and
Allied sector witnessed an improved rate of growth in FY 17. This is largely on account of
normal monsoon throughout the Country for the current fiscal, as against sub-par monsoon
during in FY 15 and 16. Eight core industries, comprising coal, crude oil, steel, cement,
natural gas, electricity, fertilizers and refinery products registered a combine growth of
4.9% during the FY 17, compared to 2.5% growth during the same period in FY 16. Due to
decline in global crude oil prices, imports declined by 7.4% in 2016-2017 in value (till
January, 2017). The Current Account Deficit (CAD) of India narrowed to 0.3 % of GDP during
April-September 2016, The trend of negative export growth reversed a bit with exports
registering a growth of 0.7 % during 2016-17 (till January 2017). Petroleum, Oil and
Lubricants (POL) declined by 10.8% in 2016-17(till January 2017) whereas non-POL declined
by 2%. The industrial sector, which constitutes mining, manufacturing, electricity and
construction is decline from 7.4% growth rate registered in FY 16 to 5.2% in FY 17. The
services sector is projected to grow at 8.8 per cent in 2016-17, similar to 2015-16. The
corporate Sector in India registered a sales growth of 1.9 % during Q2 of FY 17, compared
to 0.1% in Q2 of FY 16. In the power sector, thermal energy production registered a growth
of 6.9 % while nuclear and hydro power generation marginally contracted during FY 17.
OUTLOOK, OPPORTUNITIES AND THREATS:
The outlook for the Company appears bright on a long term basis. The Company is hopeful
that its performance would be encouraging in the coming years. In line with the increase
in revenue, the company foresees handsome growth in its bottom line also.
Your Company is engaged in the business of Trading in Iron & steel and other
commodities, which is one of the basic industries of the country and plays an important
role in strengthening the economy. Iron is the most important and widely used metal in the
world, due to its hardness, strength and durability. Actually we live in an iron and steel
age. The iron and steel industry is the basic or the key industry as all other industries
depend on it. The growth in the Indian iron and steel sector has been driven by domestic
availability of raw materials such as iron ore and cost-effective labour. Consequently,
the steel sector has been a major contributor to Indias manufacturing output. So with the
growing Economy there will be immense opportunities for your company to improve its
results. The vision of your Company is to strive towards recognition as key player in
commodities, Iron & Steel Industries and to achieve its objectives with excellence,
fairness & courtesy towards factors of the organization. Your Company commits itself
to ethical and sustainable operation and development of all business activities according
to responsible care and its own code of conduct.
The threats for the companys business mainly comprises of changes in government
policies of various countries. However the management with its dynamism in consultation
with its core team can tune in with the threats (if any) due to government policy changes.
RISK AND CONCERNS:
Risks can come from uncertainties in financial markets, legal liabilities, credit risk,
accidents, natural causes and disasters. Your Company has adopted appropriate procedure
and policies to safeguard it against such type of risks and uncertainty.
HUMAN RESOURCES:
Your Company believes in creating a workspace where diverse set of people can
contribute and thrive. Our Vision is to deliver best service at optimal cost by making
every employee a fully engaged and aligned team member. Developing and strengthening
capabilities for all employees in your Company has remained an ongoing priority.
CAUTIONARY STATEMENT:
Certain statements made in the Management Discussion and Analysis Report relating to
Companys objectives, projections, outlook, expectations, and estimates may constitute
forward looking statements within the meaning of the current market and economic scenario
with applicable laws and regulations. Actual results may differ from such expectations,
projections in the capital market. Several other factors also could make a significant
difference to the Companys operations such as economic condition, Government regulations
and taxation, etc.
|
On Behalf of the Board of Directors |
|
For NEWEVER TRADE WINGS LIMITED |
|
VIKASH DUBEY |
VIKRANT KAYAN |
| Date : 29.08.2017 |
Director |
Director |
| Place : Kolkata |
DIN : 06548810 |
DIN : 00761044 |
CEO/CFO CERTIFICATION
To
The Board of Directors
Newever Trade Wings Limited
238B, A.J.C. Bose Road,
Unit 4B, 4th Floor,
Kolkata - 700 020
a. We have reviewed the financial statements and the cash flow statements of Newever
Trade Wings Limited for the year ended 31st March, 2017 and to the best of our
knowledge and belief:
i. these statements do not contain any materially untrue statement or omitted any
material fact or contain any statements that might be misleading;
ii. these statements together present a true and fair view of the Companys affairs and
are in compliance with existing Accounting Standards, applicable laws and regulations.
b. There are, to the best of our knowledge and belief, no transactions entered into by
the Company during the year ended 31st March, 2017, which are fraudulent,
illegal or violate the Companys code of conduct.
c. We accept responsibility for establishing and maintaining internal controls for
financial reporting and we have evaluated the effectiveness of internal control systems of
the Company pertaining to financial reporting.
We have not come across any reportable deficiencies in the design or operation of such
internal controls.
d. We have indicated to the Auditors and the Audit Committee:
i. that there are no significant changes in internal control over financial reporting
during the year;
ii. that there are no significant changes in accounting policies during the year; and
iii. that there are no instances of significant fraud of which we have become aware.
|
KOUSIK BRAHMA |
| Date : 29.08.2017 |
Chief Financial Officer |
| Place : Kolkata |
DIN : 00761044 |
+91-9892691696
