Management Discussion and Analysis Report Industry structure and developments The new government at the centre has infused optimism in the sentiments in general. The Reserve Bank of India has managed to bring down the CPI inflation to 6% from the double digit level of inflation which persisted over the brvious two years. The Union Budget has also announced initiatives to boost investment. As a result, the outlook for the GDP growth has improved. However, the unseasonal rains and hailstorms during the last month could have adverse impact on the agriculture and CPI inflation. The Reserve Bank of India, in its endeavours to boost the pace of growth, reduced repo rate twice during the year. In its recent bimonthly policy, RBI has also indicated that it will continue to be accommodative in further easing of the rates if the inflation remains within the acceptable range and transmission to lending rates. It is therefore expected that the credit growth which had declined to 9% lowest in the decade from 14% during the brvious year; is likely to improve during the new financial year. Even, net-interest margins are expected to follow the similar pattern after experiencing decline by the finance sector. However the Company has discontinued its operation since long and hence there is no major impact on company. Opportunities and Threats As the business of the Company had been stopped since 2000, the management is not searching any opportunities to restant any operation right now. Considering the brsent condition of the Company there is no threats to the company. Segment-wise or product-wise performance At brsent, the Company does not have any product or provide any services. Outlook Company do not envisage any business in the near future. Risks and concerns The company does not have any operational activities and income; however the company has income from other sources viz. interest on investments which may attract interest rate risk. The Company has made diversified investment in fixed deposit to mitigate risks posed by external environment. Internal control systems and their adequacy The Company has appointed external independent person to carry out internal audit of the Company. The brsent internal control mechanism is adequate to the size of the Company. Discussion on financial performance with respect to operational performance The Company does not have any operational activities and hence the financial performance of the company are not in favourable state. Material developments in Human Resources Company has appointed KMP in compliance of the Companies Act, 2013. Cautionary statement Statements in this Management Discussion and Analysis describing the Company's objectives, projections, estimates and expectations may be 'forward looking' within the meaning of applicable laws and regulations. Actual results may differ from those exbrssed or implied. |