TAAL Enterprises Ltd Management Discussions.

Industry Structure and Developments:

Non Scheduled Aviation Services in India have picked up steadily in line with overall economic growth. This economic growth led to rising revenues of Indian corporates and increasing number of high-net-worth individuals which is one of the main reason for growth in Aircraft Charter Business in India.

Opportunities, Threats, Risk and Concerns:

Relaxations in Foreign Direct Investment norms coupled with an increase in the number of airports in India should create a number of business opportunities in the aviation sector. The Civil Aviation policy introduced by government which lays emphasis on regional connectivity is also likely to give a further impetus to this growth. The uncertainty in commercial airline operations may also increase demand for aircraft charters. Furthermore, the COVID-19 pandemic is creating opportunities for charter business.

On the negative side, the industry continues to suffer from a shortage of skilled manpower and there continue to be a number of infrastructural challenges that put pressures on the cost of aircraft operations as well as on the utilization levels of charter aircraft.

Your Company regularly evaluates and reviews potential risk on account of various factors such as government policies, natural / man-made disasters and political risk.

Your company is keeping a close watch on these developments to map a future course of action.

Outlook:

The Company has had a presence in the Air Charter segment of the Aviation Industry. During the year under review, the Company did not operate the aircraft due to accident and currently exploring various business options.

Internal Control Systems and their adequacy:

The Company is in the process of further strengthening of internal control systems.

Financial Performance:

The financial performance of the Company for Financial Year 2020-21 as compared to the corresponding previous year is given below:

(Rs.In Lakhs)

Particulars 2020-21 2019-20
Gross Income (including Insurance income) 1,117.49 542.20
Expenditure 79.36 576.68
Profit/(Loss) before tax 1,038.13 (570.22)
Profit/(Loss) after tax 964.41 (570.22)
Earnings Per Share 30.95 (18.30)

Material Subsidiaries:

The Company has one material subsidiary viz.TAAL Tech India Pvt. Ltd. (TTIPL) engaged in providing Product Engineering Services, R & D Services customized to the specific needs of every individual customer.

The Financial Performance of TTIPL for the Financial Year 2020-21 as compared to the corresponding previous year is given below:

(Rs. In Lakhs)

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Particulars 2020-21 2019-20
Total Income 10,898.18 13,225.06
Expenditure 8,656.70 10,297.95
Profit Before Tax 2,241.48 2,927.11
Profit After Tax 1,734.08 2,383.97

Material developments in Human Resources/Industrial Relations:

The Company maintained good industrial relations with its employees and staff. Human Resources remained a key focus area for your Company during the year under review. As on March 31, 2021, the Company had three employees.

Key Financial Ratios:

In accordance with the Listing Regulations, as amended, the Company is required to provide details of significant changes (Change of 25% or more as compared to the immediately previous financial year) in key sector specific financial ratios. The Company has identified the following ratios as key financial ratios:

Particulars 2020-21 2019-20 Change
Debtors Turnover NA 47.35 -
Inventory Turnover NA NA -
Interest Coverage Ratio NA (4.66) -
Current Ratio 19.54 3.16 518%
Debt Equity Ratio NA NA -
Operating Profit Margin (%) NA (46.91%) -
Net Profit Margin (%) 86% (47%) 283%
Return on Net Worth (%) 65% (16%) 506%

Since, no charter operations were carried out during the year, the operating results and ratios are not comparable.

Cautionary Statement:

Statements in the Management Discussion and Analysis describing the Companys expectations or predictions are forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include demand-supply conditions, changes in Government regulations, tax regime, economic developments within the country and other factors such as litigations.