Ozone World Ltd Management Discussions.

INDUSTRY STRUCTURE AND DEVELOPMENTS

In view of potential growth rate of the GDP in line with expectations, India will continue to be growth leader among major economies globally. It is expected and assessed that the indian economy will grow at higher rate over the years in view of favourable demographics and streamlining of tax structure. The other reforms implemented by the government with further boost the outlook.

Increase in the domestic demand will be the key driver of the Indian economy in future. Public infrastructure spending by the government coupled with robust business confidence and bank credit growth point to continuing activity and the monetary policy of RBI should further support business investment prospects. Further continuous implementation of structural and financial reforms would be essential to secure the economys growth prospectus.

OPPORTUNITIES AND THREATS

Changing dynamics of credit growth and focus on infrastructure improvements is driving the Indian real estate market. The year gone by could be termed as year of consolidation and adjusting to new policy requirements for the industry. However, this has brings much needed transparency and accountability among buyers. In view of good demand, here is an ample opportunity for the Company for trading in commodities.

There are various factors which may pose a challenge for the Company in the sector of commodities and real estate. Over regulatory environment and unanticipated delay and other factors may cause a threat to the Company for the long term sustainability of various business prospectuses in the commodity and real estate sector.

FUTURE OUTLOOK

The various measures taken by the government will in long-run improve the overall sentiment in the infrastructure & construction industry and would provide the adequate opportunities to grow the business. Apart from this, the growing commodity market would also provide an ample opportunity to the Company. With gradual acceptance of the GST, RERA and other measures, the confidence in the market is growing and the Company is poised to take advantage of improving market conditions.

RISKS AND CONCERNS

Apart from the high competitiveness in the business of trading of commodities, the infrastructure industry is facing some of the critical issues related to regulatory compliances, contracting, financing, competition which lead to price-cuts and low operating margins, high instability in prices of major raw material such as steel, cement, etc. and labour shortage. Apart from this various policy decisions related to land acquisition, environment clearance, increase in finance cost will also remain a major challenge in future.

INTERNAL CONTROL SYSTEMS

The Company has adequate internal control procedures commensurate with the size and business operations of the company and nature of its business. The internal control system is continuously reviewed by the management to ensure orderly and efficient conduct of business. The system emphasis on the functions of purchase, sales, finance etc. to adhere to the well–defined corporate policies.

FINANCIAL PERFOMANCE

The companys performance was satisfactory during the year 2018-2019. The revenue from operations of the Company was Rs. 1,22,05,963/- compared to Rs. 55,15,142/- of previous financial year.

The net profit after tax was Rs. 35,00,780/- during the financial year 2018-2019 compared to Rs. 15,15,801/- of previous financial year.

HUMAN RESOURCES

The Company continued to have cordial and harmonious relations with its employees during the year under review. The Company is taking effective steps for the developments of human resources in various fronts.

CAUTIONARY STATEMENT

All statement that address expectations or projections about the future, but not limited to the companys strategy for growth, product development, market positions, expenditures, and financial results, are forward-looking statements. Since these are based on certain assumptions and expectations of future events, the company cannot guarantee that these are accurate or will be realized. The Companys actual results, performance or achievements could thus differ from those projected in any forward –looking statements. The company assumes no responsibility to publicly amend, modify or revise any such statements on the basis of subsequent developments, information or events.