jla infraville shoppers ltd Management discussions

ANNEXURE TO DIRECTORS REPORT

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Overview and Company Structure

The company operates in e-commerce sector and provides online retail services. It is engaged in the business of retail trade, except of motor vehicles and motorcycles, repair of personal and household goods. In the face of unprecedented challenges brought about by the global pandemic, JLA Infraville Shoppers Limited demonstrated resilience, adaptability, and a commitment to serving our customers. We remained dedicated to our mission of providing seamless online shopping experiences and connecting consumers with quality products and services. We continued to invest in cutting-edge technology solutions to optimize our platforms performance, enhance security, and provide innovative features to our users.

Indian Economy and E-Commerce Industry

The global economy in FY 2022-23 was impacted by inflation, the Russia-Ukraine conflict, and COVID-19 resurgence in China. Global GDP grew by 3.4%, lower than the previous years growth of 5.9%. Advanced economies experienced their highest inflation rates since 1982, while emerging markets and developing economies saw the most significant inflation since 1999. Central banks globally raised policy interest rates to tackle inflation, leading to a contraction in GDP in Q2.

However, economic growth rebounded in the second half of the fiscal year, supported by lower commodity prices, strong labor markets, robust household consumption, and business investments. Additionally, Chinas reopening in November 2022 contributed to the rebound in global activity.

Indias economy is projected to grow by 7% in FY-23, despite inflation and supply shocks, due to the governments efforts to manage supply and demand. The government plans to invest in infrastructure and stimulate private investment to boost the economy through its various investor friendly measures (i.e. labour reforms, concessional tax rates for new domestic manufacturing units, Production Linked Incentive Schemes, etc.). The manufacturing and services sectors are expected to recover, with a revival in consumer and business confidence, as seen in the high PMI numbers.

Outlook, Risk and Concern

Management of risks to the business with the overall recessionary phase in the world economy is a continuous challenge for any organization growing in size and enhancing its purpose. The e-commerce landscape is highly competitive, with numerous players vying for customer attention. Established players and new entrants can pose a threat to market share. Moreover companies are becoming vulnerable to cyber attacks, data breaches, and fraud, damaging the companys reputation and erode customer trust. Shifts in consumer preferences, such as a preference for in-person shopping experiences or changes in buying habits, are also impacting e-commerce sales.

To counter all these risks, the company is conducting its risk identification, assessment and management activities through a dedicated risks and audit department. The company is implementing robust cyber security measures, including encryption, firewalls, and intrusion detection systems.

It is also regularly updating software and systems to patch vulnerabilities and conducting regular security audits and penetration testing to identify weaknesses.

The policies announced by the Government have been progressive and are expected to remain likewise in future, and have generally taken an equitable view towards various stake holders, including domestic farmers, industry, consumers etc.

Opportunities and Threats

Intense competition from existing or new competitors is eroding the companys market share and pricing power. With economic downturns, inflation, and after effects of COVID 19 pandemic affected consumer spending and business operations.

The Company is considering best-case and worst-case scenarios to prepare for a range of outcomes. The company is planning to diversify its product offerings to reduce reliance on a single product or market segment. Your company is exploring expansion into related markets or complementary industries to broaden its customer base. It is focusing on building strong relationships with the customers through personalized experiences, excellent customer service, and loyalty programs. And encouraging customer feedback and use it to refine its offerings.

The company is closely monitoring its competitors to understand their strategies and identify potential areas of weakness. Moreover the Company is regularly reviewing and updating its strategies based on market dynamics and feedback from stakeholders.

Future Outlook

The future outlook for e-commerce companies is promising and continues to evolve as technology, consumer behavior, and market trends shape the industry.

AI-driven technologies are enabling e-commerce businesses to provide personalized shopping experiences, including tailored product recommendations, virtual shopping assistants, and chat bots for customer support. AR and VR technologies are enhancing the online shopping experience by allowing customers to visualize products in their physical environment before making a purchase. This can lead to increased engagement and reduced return rates. The lines between online and offline retail are blurring, leading to the growth of omnichannel strategies.

Adequacy of Internal Control System

The Company has implemented adequate internal control systems commensurate with its size and nature of operations to ensure operational efficiency, protection and conservation of resources, accuracy and promptness in financial reporting and compliance of laws and regulations. The Company has done adequate segregation of duties ensuring that no single individual has complete control over a transaction process from beginning to end preventing fraud and errors.

The company is regularly monitoring and reviewing of internal controls and also assessing the effectiveness of controls making necessary adjustments based on changing business processes and risks.

Segment Wise Performance

The Company operates only in one segment.

Discussion of Financial Performance

The financial statements are prepared in compliance with the requirements of the Companies Act and the Accounting Standards prescribed by the Institute of Chartered Accountants of India and Generally Accepted Accounting Principles in India.

Human Resources

The Company believes in non-discrimination and equal opportunity for all employees. At JLA Infraville Shoppers Limited they are Clear guidelines on professional behavior, integrity, and ethical standards and policies regarding conflicts of interest, bribery, and corruption. We are committed to hiring, promoting, and compensating employees based on merit, qualifications, and performance. Moreover the Company is dedicated in providing safe and healthy work environment by implementing workplace safety guidelines, including emergency procedures and evacuation plans.

Cautionary Forward Looking Statements

Statements in the Annual Report, particularly those which relate to Management

Discussion and Analysis, describing the Companys objectives, projections, estimates and expectations, may constitute ‘forward looking statements within the meaning of applicable laws and regulations.

These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements.

On behalf of Board of Directors For JLA Infraville Shoppers Limited

Date: 22/08/2023	Sd/-	Sd/-
Place: Bengaluru	Meena Agarwal	Atul Agarwal
	(DIN: 02649280)	(DIN: 09279372)
	(Managing Director)	(Director)