rasoi ltd Management discussions

Annexure - G

1. Industry structure and developments

During the year under review, full benefit of the much needed reforms undertaken by the Government of India have not yet yielded the desired benefits, and these disruption in the economic system still persists, and would seemingly take some more time.

In view of the volatile global political scenario and the consequent rising prices of crude the rupee is witnessing depreciation vis a vis the US Dollar. It is anticipated that the rupee will continue to depreciate and your management keeping an eye on these developments.

Interest rate scenario remained volatile throughout the year and there was pressure in the domestic real estate sector. In view of the crude complex becoming firmer, the commodity prices have been firm. However, precious metals are not showing any direction and the trading environment remains tough due to the high volatility in precious metal prices.

The situation of the business of manufacturing of baby care and other healthcare products continue to be highly competitive.

2. Opportunities and threats

The anticipated benefits which one perceived would ensue given the slew of reforms unleashed have not materialized as yet, and are taking time, the opportunities that could open up are delayed. Fiscal imbalance caused by the upsurge in crude oil prices and consequent impact on currency and inflation also poses risk for the investment climate in the country.

The immediate threat is the election year looming in the horizon and the impact of this on the business and industry as a whole.

3. Segment – wise or product-wise performance

In view of the economic scenario on the macro level we have also been impacted in the business, and hence the year in review has witnessed flattish growth in the volumes of the business.

4. Outlook

We can safely say that in the state of flux that the economy is in just now, and the general uncertainty that is abounding post the various banking issues prevailing, your company is taking measures to weather these times.

Rising crude prices coupled with a depreciating rupee are exerting pressure on the country’s fiscal and government will have to resort to some tough measures to keep the fiscal balance in check.

Banking conundrum and stress in the domestic real estate sector along with pressure on government finances are expected to have negative impact on your company’s investment activities. However, your management is taking all necessary precautions to keep the impact to a bare minimum.

Management is keeping a close watch on the heightened volatility in the precious metal space.

5. Risks and concerns

The current banking systemic issues, and the coming election year could pose a risk to the business cycle. Plus added to that the global political upheavals are having an impact on the crude oil complex, this could once again devalue the Indian Rupee vs the US dollar, and spike an inflationary trend once again thereby forcing the Central Bank to raise interest rates in the near term. The concern is that if the monsoon should be deficient this year then it could have a deleterious impact on the overall business environment your company operates in.

6. Internal control systems and their adequacy

Given the slew of reforms as well as the new cyber age issues related to banks, and banking in general, as well with most information being fed virtually, the company makes regular reviews of all its systems specially banking and information systems, and deployed effective means ensuring that your company is not impacted by any such issues in the near future. It will be constantly reviewing this as technology is changing the situation very rapidly.

7. Discussion on financial performance with respect to operational performance

As we have highlighted earlier in the report, and given the current scenario your management adopted a very safe strategy to hedge, and insulate itself from the environment which is prevailing, and hence the year under review has witnessed flattish growth and decline in profits.

8. Material developments in Human Resources / Industrial Relations front, including number of people employed

We are happy to put on record our appreciation for the continuous cooperation and help that your management received from its workers and staff. There were 45 permanent employees on the rolls of Company as on 31st March, 2018.

	For and on behalf of the Board of Directors
	Sd/-	Sd/-
	H M Parekh	Kapil Kaul
Place: Kolkata	Director	Executive Director & CFO
Date: 22nd May, 2018	DIN: 00026530	DIN: 00053937