MANAGEMENT DISCUSSION & ANALYSIS REPORT OVERVIEW - FINANCIAL PERFORMANCE During the year ended 31st March, 2015, the Income of the Company by way of dividend, interest and other income stood up at Rs. 21.30 crore as compared to Rs. 21.60 crore during the brvious year. Profit before interest, debrciation and tax stood at Rs. 4.24 crore as compared to Rs. 21.06 crore during brvious year. Net Profit after tax stood at Rs. 6.09 crore as compared to Rs. 17.33 crore during the brvious year. OUTLOOK The Company falls in the category of a Core Investment Company (CIC) in terms of the Core Investment Companies (Reserve Bank) Directions, 2011. The Company would continue to carry on the business permitted to a CIC in terms of the Core Investment Companies (Reserve Bank) Directions, 2011. The Company is in process of de-registration of the Company with Reserve Bank of India as a Non Banking Financial Company (NBFC) as it conforms to CIC norms. Your Company continues to hold significant investments in equity shares of steel manufacturing companies of O.P. Jindal group. The performance of the Investee Companies are expected to improve in the current financial year, which would result in higher dividend payouts in the coming year. The Company will focus on making long term strategic investments in various new ventures promoted by O.P. Jindal group, besides consolidating the existing investments through further investments in the existing companies. SEGMENT WISE AND PRODUCT WISE PERFORMANCE The Company operates within a solitary business segment i.e. Investments. Further, all products of company are classified as "Investments". Hence, Segment/Product wise report is not given separately. OPPORTUNITIES AND THREATS India's economy is on a cyclical upswing. Forward looking indicators suggest domestic demand is gathering momentum. The Asian Development Bank (ADB) has also projected the country's growth at 7.8 percent in 2015-16 and at 8.2 percent in 2016-17. International Monetary Fund projected that India will overtake China as the fastest growing emerging economy in 2015-16 by clocking a growth rate of 7.5 per cent. Low inflation rate has enabled the Reserve Bank of India (RBI) to cut interest rates aggregating to 50 basis points in early 2015 which has helped in easing brssure on the private sector. The lower rates of interest as well as government's disinvestment programs plays a significant role of raising funds for infrastructure development, should provide a boost to domestic-oriented industries. Indian economy is strengthening, off the back of steep fall in oil prices. The government pledged more money for much-needed roads and railways and cut some red tape for entrebrneurs. Many of the initiatives of the Union Budget 2015 should boost confidence and facilitate growth. Regarding the recent revision to GDP statistics, the Reserve Bank pointed out that the new estimates brsent a picture of a robust acceleration in the economy. Your Company continues to hold significant investments in Equity Shares of steel companies. The anticipated infrastructure development and supportive government measures in the country is expected to give a further boost to the steel industry and your Company is looking forward for a sustainable growth in its Investee Companies in the coming years which would enhance the shareholders' value. RISKS AND CONCERNS The Company is mainly exposed to market risks in the form of reduction in value of its investments and fall in returns due to dip in the investee company's performance. The Company is also exposed to the fluctuations of economy and industry cycles / downturns. ADEQUACY OF INTERNAL CONTROL SYSTEM The Company has adequate internal control systems for the business processes in respect of all operations, financial reporting, compliance with laws and regulations etc. The management information system forms an effective and sound tool for monitoring and controlling all operating parameters. Regular internal audits ensure that responsibilities are executed effectively. The Audit Committee reviews the adequacy of internal controls on regular basis. HUMAN RESOURCE DEVELOPMENT The Company recognizes that its human resource is its strength in realizing its goals and objectives. The Company brsently has four (4) employees. The Company will strengthen its operative staff as and when the need arises. CAUTIONARY STATEMENT The Statement in this Management Discussion and Analysis report, describing the Company's outlook, projections, estimates, expectations or brdictions may be "Forward looking Statements" within the meaning of applicable securities laws or regulations. Actual results could differ materially from those exbrssed or implied. |