precious trading investments ltd Management discussions

DOMESTIC ECONOMIC OUTLOOK

India has emerged as the fastest growing major economy in the world and it is expected to be one of the top three economic powers of the world over the next 10-15 years backed by its strong democracy and partnerships. Indias GDP is estimated to have increased and grow in near future.

INDUSTRY STRUCTURE AND DEVELOPMENT

Your Company is an Investment Company holding more than 99% of its assets in the form of investments in shares of or debts in Group Companies, out of which more than 86% are in the form of the investment in Equity Shares. The thrust of business is to hold and continue to hold securities in the group companies.

The Directors of the Company are exploring opportunities in the area of trading and investments in the changing economic environment.

BUSINESS OVERVIEW

During the year under review, the Company suffered loss of Rs. 8.63 Lakhs as compared to previous years loss of Rs. 5.46 Lakhs. The loss of Rs. 5.46 Lakhs is added to the debit balance brought forwarded from earlier years resulting into a total debit balance of Rs. 1056.27 Lakhs as compared to debit balance of previous year of Rs. 1064.90 Lakhs, which your Directors propose to carry over to next year.

There are no significant changes in any of the financial Ratios during the year as compared to previous year. There is no change in return on Networth as no revenue in both the years. As of now, the Company is not engaged in any activity and the management is looking for a right opportunity to make the Company operational.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Break-up of Revenue and Costs of Company is as given below:

		(amount in lakhs)
Particulars	2018-19	2017-18
Income	-	-
Operating Administrative & Other Expenditure	8.63	5.49
Total	8.63	5.49
Profit Before Tax	(8.63)	(5.49)
Profit After Tax	(8.63)	(5.49)
Earning Per Share (In actual Rs.)	(3.60)	(2.29)

Operating Administrative and other expenses:

The operating administrative and other expenses have been increased from Rs. 5.49 Lakhs (FY 2017-18) to Rs. 8.63 Lakhs (FY 2018-19). There has been increase of 57.19%.

The Company has incurred losses during the year under review. The Directors of the Company are exploring all possibilities of turning around the Company.

OPPORTUNITIES AND THREATS

Pricing and Rising of Finance Costs

The industry is very much dependent on FII Investments. Any price volatility due to these investments and to adjust to the same could adversely affect the results of operations and profitability of the industry.

Domestic Markets

We try and tap every lawful opportunity coming our way and follow a focused approach and increased marketing efforts. In the coming years, we shall strive harder to start the activities of the Company.

Segment-wise Performance

The operation of the company consists of a single segment. Hence, the Accounting Standard on Segment Reporting (AS-17) issued by Institute of Chartered Accountants of India does not apply.

Outlook

The Indian economy has shown a substantial growth in the year 2018-19 and this will have a positive impact on all the sectors. However, to tap the full potential of this emerging opportunity, the domestic industry needs to improve its cost effectiveness, scale of operations and quality/reliability in order to be able to compete with other global competitors in the market.

Security Market has maintained their high volatility making it difficult to take long-term views on prices. The volatility of the rupee against the dollar has further been a cause of concern for investors.

Significant factors affecting business

Our business is subjected to various risks and uncertainties. Results of operations and financial conditions are affected by numerous factors including the following:

• Changing technology

• Tax policies

• Cost of Various factors

• Growth of unorganized sector and threat from local regional players.

• General economic and business conditions.

• Changes in laws, regulations & Govt. policies relating to the industry in which the Company operates.

• Changes in political and social conditions in India.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Companys internal control procedures are tailored to match the organizations pace of growth and increasing complexity of operations. This ensures compliance to various policies, practices and statutes.

We have an independent and adequate system of Internal Control which enables reliable financial reporting, safeguard of assets and encourages adherence to management policies. The Company has a system for speedy compilation of accounts and management information reports to comply with applicable laws and regulations.

CORPORATE GOVERNANCE

Though Corporate Governance, pursuant to SEBI (Listing Obligation and Disclosures Requirements), Regulations, 2015 is not applicable to Company, your Company is trying to comply with the maximum provisions of Corporate Governance in accordance with the provisions of Companies Act, 2013 as a good Corporate Governance Practice.

RISKS AND CONCERNS

The Companys income is mainly from the dividend/Interest that may be receivable on investments held by it/may be held in future. Any adverse impact on the industries of which securities are held by the Company, also have a bearing on performance of the Company. Any slowdown in the growth of Indian economy or future volatility in global financial market, could also adversely affect the business.

HUMAN RESOURCE AND INDUSTRIAL RELATIONS

Industrial relations of the company were cordial and harmonious during the year and continue to remain peaceful at the office at Mumbai and all the employees are working with the company for a common objective. The Company had three employees on payroll on the date of this report.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing your Companys objectives, projections, estimates and expectations, may be ‘forward looking statements and are within the meaning of the applicable laws and regulations. Actual results might differ substantially or materially from those expressed and implied.

	For and on behalf of the Board of Directors
	For Precious Trading and Investments Limited
Place : Mumbai	Ashwin N. Sheth
Date : 3rd September, 2019	Chairman
	DIN: 00002053