nouritrans exim ltd Management discussions

INDUSTRY OVERVIEW

Indias Foreign Trade Policy (FTP) has, conventionally, been formulated for five years at a time and reviewed annually. The focus of the FTP has been to provide a framework of rules and procedures for exports and imports and a set of incentives for promoting exports. Fifteen years ago India occupied a very small space on the global trade canvas. As various sectors of the Indian economy became more competitive globally, exports began to grow remarkably. Indias merchandise exports recorded a Compound Annual Growth Rate (CAGR) of 15.9 percent over the period 2004-05 to 2013-14. Similarly, as the economic growth rate of the country picked up, so did imports, which grew at a CAGR of 16.8 percent over the same period.

Today, foreign trade has begun to play a significant part in the Indian economy reflecting its increasing globalization. At the same time, the growing merchandise trade deficit, resulting in a persistently high current account deficit, has set alarm bells ringing. This policy, therefore, aims at promoting exports along with making imports more focused and rational.

Government of India has, in the last few months, initiated several measures to re-energize the economy particularly through initiatives such as "Make in India", "Digital India", "Skills India" etc. As these initiatives start showing results, India will become more competitive in several product areas which would, in turn, open up better export prospects. The FTP for 2015-2020, therefore, endeavors to build synergies with such initiatives necessitating, thereby, a "whole-of-Government" approach to foreign trade policy. It first describes a vision with its attendant goals and objectives followed by the strategies and actions identified as necessary to achieve that vision, and, finally, sets out a framework of incentives.

BUSINESS OVERVIEW

Our Company was originally incorporated as "Nouritrans Exim Private Limited" on September 07, 1995 under the Companies Act, 1956 vide certificate of incorporation issued by the Registrar of Companies, Gujarat, Dadra and Nagar Havelli. The CIN of the Company is U51100GJ1995PTC027381.

Our company is in the business of exports, imports and trading of commodity since 1995. Currently, we have a head office and a corporate office located in Gujarat. Our global presence covers various markets in USA, UK, Europe, South Africa and Middle East. Our Managing Director with 22 years of experience, have a mission of dramatically changing the way companies conduct global trade. Our company has been accredited as an International Commodity Export-Import & Trading Company and having APEDA certificate.

Over the decades, our company has emerged as a leading Import-Export & Trading Company with wide portfolio of International and Domestic customers. For importing and exporting of our goods, we follow the high sea sales method. Due to years to existence, good business relations build and esteemed reputation gain internationally and domestically, our import- export processes allows smooth and automatic flow of goods across international borders and in the most efficient, compliant and profitable way. Further, our expertise and professional aptitude have also helped us in creating a long standing relationship with all our customers.

OUR COMPETITIVE STRENGTHS:

1. Experienced promoters and Management Expertise

2. Existing Brand

3. Quality Standards

4. Wide Range of Products

5. Strong Customer base

6. well Established Supply and Logistic Chain

7. Strong Risk Management

8. Customer Satisfaction and Timely delivery of our Orders

9. Cordial relations with our customers and contractors

10. Scalable Business Model

 

OUR STRATEGIES

1. Focus on Performance and Quality

2. Increase Geographical Presence

3. Focus on Increase in Volume of Sales

4. Expansion of product range

5. Continue to develop client and supplier relationships

6. Strengthening our Brand

RISK & CONCERNS

The Company has in place a mechanism to identify, assess, monitor and mitigate various risks to key business objectives. Key business risks and mitigation strategy are highlighted below.

1) Business risk: To mitigate the risk of high dependence on any one business for revenues, the Company has adopted a strategy of launching new products/services.

2) Legal & Statutory Risk: The Company Secretary, compliance and legal functions advice the Company on issues relating to compliance with law and to prevent violations of the same. The Company Secretary submits a quarterly report to the Board on the companys initiatives to comply with the laws of various jurisdictions. The company also seeks independent legal advice wherever necessary.

3) Human resource attrition risk: Vivid Mercantile Limiteds key assets are its employees and in a highly competitive market, it is a challenge to address attrition. Vivid Mercantile Limited continues to accord top priority to manage employee attrition by talent retention efforts and offering a competitive salary and growth path for talented individuals.

4) Others: The Company is exposed to risks & fluctuations of foreign exchange rates, raw material prices and overseas investments exposures.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS:

The Company recognizes human resources as its biggest strength which has resulted in getting acknowledgement that the Company is the right destination where with the growth of the organization, value addition of individual employees is assured. The total number of employees as on 31st March, 2019 is 7.

INTERNAL CONTROL SYSTEM:

The Company maintains a proper and adequate system of internal controls, which provide for automatic checks and balances. The Companys resilience and focus is driven to a large extent by its strong internal control systems for financial reporting. The Company follows strict procedures to ensure high accuracy in recording and providing reliable financial and operational information, meeting statutory compliances. The Companys internal team and Audit Committee closely oversee business operations. These responsibilities include the design, implementation and maintenance of adequate internal financial controls to ensure an orderly and efficient conduct of its business. The committees also ensure adherence to the Companys policies the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information. Any deviations are promptly reported to the management. Various risk mitigation measures are then devised to bring risk exposure levels in line with risk appetite. Timely and adequate measures are undertaken to ensure undisrupted functioning of the business.