Sarthak Global Ltd Management Discussions.

Industrial Structure and Developments

Your Company is a registered Share Transfer Agent from SEBI since 1995. It is successfully handling share transfer activities for various client Companies & serving more than 1,00,000 shareholders. In compliance with SEBIs circular of single point share transfer & demat activities, the Company has taken direct electronic connectivity from both the depositories i.e. the National Securities Depository Ltd. (NSDL) & the Central Depository Services (India) Limited (CDSL).

Opportunities and Threats

Depending on market opportunities the Company is undertaking Merchant Trading activities of various commodities. The future performance of your Company would depend to a large extent on its ability to successful diversification, market of commodities. Due to COVID-19 pandemic, the situation is uncertain and it is difficult to predict when economies will fully normalise. Hence, FY21 is likely to be a challenging year.

Outlook

Company is now exploring opportunities to get more business from corporate in the field of share transfer & other capital market activities.

Risk and concerns

Competition from existing and prospective registrar & share transfer agents may affect the profitability of the company. The Company is exposed to risks from change in policy of similar Companies; changes in Govt. Policies/SEBI policies, etc. which may affect profitability and working of the Company.

Internal Control System and their adequacy

Your Company has good and effective internal control systems, which provide efficiency of operations, financial reporting, proper recording and safeguarding of assets, compliance with applicable laws and regulations, etc.

The adequacy of the same has been reported by the statutory auditors of your Company in their report. Financials

Your Company has succeeded in achieving satisfactory results for the financial year 2019-20:

Particulars 2019-20 2018-19
Revenue from Operations and other Income 10,442.86 4,018.71
Profit before tax and Depreciation 13.55 7.93
Depreciation 0.97 0.70
Profit before tax 12.58 7.23
Deferred Tax (0.03) (0.05)
Current Tax 3.32 1.88
Profit after Taxation 9.29 5.41
Less : Previous year adjustment 0.00 0.00
Less : Old Income tax written off - -
Balance brought forward from previous year 220.24 214.83
Provision for diminution in value of non current investment
Excess Depreciation Written back
Amount available for appropriation 229.53 220.24
APPROPRIATION
Amount Carried to Balance sheet 229.53 220.24
Paid Up Equity Share Capital 300.00 300.00
Earning Per Share ( 10/- each) Basic & Diluted (in ) 0.31 0.18

Material development in Human Resources / Industrial Relations front

The Company is being equipped with all the modern amenities like Intranet, Internet & latest models of computers & printers. By intensive training from both the depositories and up gradation of systems & software, transfer & demat work is being managed successfully.

Your Company considers the quality of its human resources to be the most important asset and constantly endeavors to attract and recruit best possible talent. Our training programs emphasize on general management perspective to business. The Company continues to empower its people and provide a stimulating professional environment to its officers to excel in their respective functional disciplines.

The industrial relations of the Company continue to remain harmonious and cordial with focus on improving productivity and quality. The number of permanent employees on the rolls of Company as on 31.03.2020 is 7.

KEY FINANCIAL RATIOS ANALYSIS

Particular FY 2020 FY 2019
1 Debtors Turnover Ratio 9.00 27.71
2 Inventory Turnover Ratio 6.21 17.98
3 Interest Coverage Ratio 1.09 1.10
4 Current Ratio 4.11 3.56
5 Debt Equity Ratio 2.88 4.27
6 Operation Profit Margin 2.00% 1.80%
7 Net Profit Margin 0.13% 0.18%
8 Return on Net Worth 2.00% 0.90%

Cautionary Statement

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