MANAGEMENT DISCUSSION & ANALYSIS INDUSTRY STRUCTURE AND DEVELOPMENT :- India is set to become the World fastest growing major economy by 2016 ahead of China, the International Monetary Fund said in it srecent latest forecast. India is expected to grow 6.3 percent in 2015 and 6.5 percent in 2016 by when it is likely to cross china's projected growth rate, the IMF said in the latest update of its world Economic outlook.The Global Economic conditions continued to remain sub-optimal during the F.Y 2013-14. The emerging and developing economics slowing down to 4.7% in 2013 to from 5.1% in 2012 and 6.3% in 2011. According to IMF, the advanced economies grew at 1.3% in 2013 on account of subdued economic environment but growth is expected to pick up to about 2.25% in 2014-15. The global economy too has started showing signs of revival after facing unparalleled brssure by way of economic crises. The oil industry has recovered strongly during fiscal year 2013-14 and higher oil production also resulted in lower spare capacity and consequently putting upward brssure on prices .The Oil Exploration Industry witnessed a resurgent phase of modernization, expansion and consolidation, mainly through mergers and acquisitions. The achievement will open tremendous approach to the Crane Industry. Trishakti is mainly engaged in the business of supplying Crane to the Consumers for drilling the Oil and Gas. The company has also started with as a commission agent of Globalised Company for bidding ONGC Global Tender and Oil India Limited and explores hiring of its crane to Real Estate sector which has also revived to some extent in Eastern India. The company has built its reputation based on decades of achievements in providing the crane services to the various industries at a large. OPPORTUNITIES AND THREATS :- We believe our strengths give us the competitive advantage to position ourselves as the leading global solutions and services company Our specific industry, domain, process, and technology expertise allows us to enable clients to transform their businesses through innovative strategies and solutions. Weare able to undertake complex business and technology transformation initiatives that help our clients enhance their performance, gain process and IT efficiencies, increase agility and flexibility, reduce costs, and achieve measurable business value. Competence development of our workforce has always been our key strategic focus area. There are excellent opportunities in the cranes due to large scale investment in the infrastructure and construction activities. The constant growth in oil sector, the demand for cranes and spares parts has gone up considerably. Your company has capabilities to quickly adapt to the changing market conditions and sustain the projected growth in sales and profit. The company expects good business performance as a Commission Agent of various foreign company for participate the Global Tender on behalf of them(Foreign Company)as India Agent and made Agreement with them (Foreign Company)for few years and witness tremendous growth and will continue. The threatqserception for the company includes slowing down the World Economy, high input cost especially of the Maintenance of the Crane and labour Cost, increasing Competition from the new entrants, Change of the policy of the Government and to the Capacity utilization along with the product obsolescence due to emergence of the new Technology of the cranes By leveraging our strengths, we believe that we have these unique competitive capabilities: • The ability to keep pace with ever-changing technology and customer requirements • The ability to articulate and demonstrate long-term value to existing and potential customers • The ability to attract and retain high -quality management, technology professionals and sales personnel. • The ability to effectively integrate onsite and offshore execution capabilities to deliver-high quality .seamless, scalable .cost effective services. • A proven track record of performance excellence and customer satisfaction • High ethical and corporate governance standards to ensure honest and professional business Practices and protect the reputation of the Company and its customers. Particulars of some of the Foreign Company and Business Agreements with them as India Agent are? (A) A consortium company which is based on Abu Dhabi i.e. M/s Abu Dhabi Ship Building with Spain based company M/s Rodman Polyship participates in the tender with Oil & Natural Gas Corporation Ltd. (ONGC) for Immediate Support Vessel (ISV) construction of 23 Nos. vessels. Where our Company will be acting as a Commission Agent. (B) A China based company M/s China Oilfield Services Ltd. (COSL) participates in the tender with Oil & Natural Gas Corporation Ltd. (ONGC) for 3D Seismic Data Acquisition in KG Basin during Field Season 2015-16. Where our Company will be acting as a Commission Agent. (C) A China based company M/s Sichuan World-Rise Petroleum Equipment Corporation participates in the tender with Oil & Natural Gas Corporation Ltd. (ONGC) for Heavy Weight Drill Pipes (HWDP) supplyWhere our Company will be acting as a Commission Agent. (D) A Chinabased company M/s Petro Materials (Cangzhou) Co. Ltd. participates Jn the tender with Oil & Natural Gas Corporation Ltd. (ONGC) for Drill Collar supply. Where our Company will be acting as a Commission Agent. (E) A China based company M/s M/s Jiangsu Rutong Petro -Machinery Co. Ltd participates in the tender witrOil & Natural Gas Corporation Ltd. (ONGC) for Handling Tools supply Where our company will be acting as a Commission Agent. (F) A China based company M/s Zhongnan Equipment Company Ltd.participates in the tender with Oil & Natural Gas Corporation Ltd.(ONGC) for SRP Accessories supply. Where our company will be acting as a Commission Agent. SEGMENTWISE/ PRODUCTWISE INFORMATION: - The company operates only in one segment of Hiring Crane for the drilling of the oil and gas from earth. There is no other classification of any segment wise performance as applicable to the company. OUTLOOK: - The company perceives better prospectus for the future once the cost of Spares parts, Labour and fuel are reduced .The Company is also aiming at utilization which should further reduce the operation and Maintenance Cost. Although the export explorer in India has shrunk considerably due to global economic slowdown, the domestic explorer has improved considerably. The company is also making concerted efforts to enter newer markets internationally which were hitherto untapped or under tapped. The market size for Indian crane industry is expected to grow by steady30-40 % in coming years. It is expected that the demand for cranes in coming years are expected to double the oil exploration industries are growing continuously. Your company perceives better prospects for the future. The company is also utilizing its maximum capacity which would further reduce the Operation and Maintenance cost. RISKS AND CONCERN :- Company's growth and profitability are dependent on the functioning of economy. The Company is exposed to several market risks like inflation, rise in operating cost etc. The volatility of the market in which your Company operates is also a major cause of concern to the Company. The global economy seems to be recovering slowly, although the debt crisis on the European continent could trigger short term vulnerability in the global economy. This may have an adverse impact on global demand I terms of exports out of India. On the domestic front, although the government has a focused approach of investing in infrastructure and growing the economy, the rising fiscal deficit and inflation remairu the biggest challenges The company's risk management system identified various risk, collated at the departmental level and planned suitable mitigation measures. These are subjected to a quarterly review. Industry competition, rising raw material prices, rising labor cost are the main business risk. The company has tried to adjust its crane hiring prices to recover some of the input cost movement within limitations of the competitive scenario. Volatility in Rupee value also is a concern as it effects the realization of hiring proceeds. Although in nut shell, the Management does not perceive any major technological, environment and/or financial risks for the company in the near future. INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY :- Internal control systems and procedures in the Company are commensurate with the size and the nature of Company's business and are regularly reviewed and updated by incorporating changes in regulatory provisions in order to safeguard the assets and to ensure reliability of financial reporting. The Internal Auditors supplemented by an extensive internal audits, review by management and audit committee, documented policies, guidelines and procedures. The Internal Auditors submit their reports on quarterly/periodical basis for review by Directors and Audit Committee. The Internal audit function is designed to ensure that the financial and other records are reliable for brparing financial statements and other data, and for maintaining accountability of assets. FINANCIAL PERFORMANCE WITH RESPECTTO OPERATIONAL PERFORMANCE :- Sales Crane Hire charges and other Income for the year ended March 31, 2015 were Rs. 2,08,75,998/-as compared to Rs. 1,72,09,432/-of the last financial year. During the year under review which ended on March 31, 2015 the PBDIT (Profit Before Debrciation, Interest & Taxes) margin was Rs. 65,76,536/- as compared to Rs.48,53,328/-with the last year. The (Profit) / Loss after tax amounted to Rs. 36,30,253/- during the year as compared to Rs. 20,40,201/-of last Financial Year. MATERIAL DEVELOPMENT IN HUMAN RESOURCE/INDUSTRIAL RELATION :- The Company continues to give priority to its human assets. The Company provides a fair and equitable work environment to all its employees. The Company is continuously working to create and nurture an atmosphere which is highly motivated and result oriented. The company is committed to Human Resource Management & Development as the employees are one of the most important stakeholders of the Company. A major factor for the successful of your organization is the understanding and constructive support of all Executive, Employees, Workers, Creditors and the confidence shown by them in the growth of the company. Industries relations in all the sites were cordial throughout the year under review. Human Resources Transformation process, which includes: Performance management that balances long term and short term goals, as well as delivery and behaviors. Consistent delegation of authority to empower managers to make decision on people related matters Alignment of internal and external job markets, underpinned by a standard recruitment process CAUTIONARY STATEMENT: - Certain statements as discussed and mentioned in the Management Discussion and Analysis and elsewhere constitute forward-looking statements articulated as the management's expectations for the future business prospects of the company. The factors like nature of the company's business, foreign currency fluctuations, regulatory, initiatives, tender processes in the Government, Public Sector and other large undertakings, competition etc. are not in the control of the company. Such uncontrollable factors are crucial for success of the company's business plans and or brdictions, which may cause the actual results to materially differ from the performance or achievements, discussed orimplied by such forward looking statements. |