ANNEXURE- II
1. Industry Structure and Development:
The global economic graph saw some of the worst plunges in 2020-2021 because of the
ongoing situation of COVID-19 Pandemic and the effects are still being reflected in the
financial year 2022-2023. However, the proactiveness shown by most of the Governments
through stimulus and aggressive vaccination drives allowed most nations to tide over the
worst and witness rekindled growth going forward. With the changing dimension of beauty,
influence of media, film industry and fashion, the market is predicted to fuel over in the
near future. Health factors such as rise in accidents and obesity and people have become
more prone about their health which has led to the growth of the market. Moreover,
technological factors which include the development of advanced materials like silicone
implants is also expected to spur the market growth in domestic as well as in global
market. Moreover, with the increasing popularity of digital photography, introduction to
self-monitoring apps, high demand to increase one s self-esteem and affordability of
cosmetic surgeries in developing countries can substantially increase the volume of
cosmetic surgery procedures
India is viewed as one of the most progressive countries for cosmetic surgical
procedures and this trend is expected to continue in the near future. This is mainly due
to the fact that cosmetic surgery has evolved beyond the traditional concept of being a
risky or impractical procedure that was demanded by women who were overly conscious about
their appearance. Today, people in India understand that cosmetic surgery is a highly
specialized and advanced niche of plastic surgery that helps people attain happiness with
fewer risks and greater affordability.
In the past, cosmetic surgeries in India were associated with celebrities and people of
the affluent class. However, today, these surgeries are increasingly becoming popular and
are being undertaken by the middle class. Increasingly, both men and women from the upper
middle class group are opting for cosmetic procedures to look attractive in order to get
lucrative jobs, best possible marriage partners and primarily get rid of any deformity
that they feel impacts their self confidence and self-esteem. Moreover, traditionally, men
and women in their late 20s and early 30s were the key clients of cosmetic surgeons.
However, a new trend has emerged where teenagers are approaching cosmetic/ aesthetic
surgeons to get some cosmetic procedure done.
The changing lifestyle and urbanization, growing awareness of cosmetic surgery
procedures, availability of better infrastructure and the rising economic capacity are all
driving the cosmetic surgeries market in India.
2. Opportunities & Threats:
The Cosmetics market is especially rich in opportunities since most products still have
low penetration rates among the population. For instance, only 40% of households use skin
care products out of which women are more prone on using such products for their skin
health. Company is continuously looking for opportunities of growth in new areas and
ventured into some revenue generating services that can boost financial health of the
company. The global cosmetic surgery market is projected to grow from $46.02 billion in
2021 to $58.78 billion in 2028 at a CAGR of 3.6% in forecast period 2021-2028.
As per research findings, cosmetics market, once female dominated, has started earning
high revenues from male counterparts as well, by catering to male-specific needs. The
revenue generated through male cosmetic market has increased the total revenue of Indian
cosmetic industry.
Meanwhile, the recent COVID 19 pandemic, social taboos against body part violation,
non-essential nature of cosmetic surgery and high cost associated with such surgeries are
some of the major factors restricting the market growth in domestic as well as in global
market.
3. Segment wise performance:
Company operates only in one segment viz. Cosmetic & Non Cosmetic Treatments.
4. Outlook:
The effects of COVID-19 pandemic effects are showing recovery on a slow pace and growth
of businesses across the world. Our business was disrupted too with the initial lockdowns
leading to closure of both of our Clinics situated at Goa and Mumbai. The company is
taking all necessary measures to re-open clinics as soon possible and start carrying out
the operations in order to achieve impressive realization of opportunities in the market.
5. Risks & Concerns:
First and foremost, the Company is truly committed towards all of its customers needs
through this demanding time. The Company did witness a meltdown in the growth of our
industry due to the enormous impact of COVID 19 pandemic, lockdown implementation
measures, etc.
However, despite the situation of COVID 19, people will continue to have hair loss
problems, scalp related issues or skin related issues and they will continue to look for
guided assistance, assessment and its treatment. Being rest assured, the Company has been
there for care and support and it will continue to do so!
The major risks identified by the management are regulatory, competition, supply chain
disruption, cyber & data security, requirement of huge capital, along with economic
and political risks. The Company believes that an organization cannot be risk averse but
has to persistently foresee and implement ways of mitigating these risks. The Company
occasionally faces the risk of an economic downturn but looking at the growth prospects
for the Cosmetic Industry, this risk can be controlled, if not mitigated. In order to
ensure long term corporate sustainability and success it is essential that the Company
accept these risks, place proper mechanisms and find solutions to reduce as well as
mitigate these risks. Thus, the Company is well aware of these risks and challenges and
has put in place mechanisms to mitigate the same.
6. Internal Control System & their Adequacy:
The Company has a well-defined system of internal audit. It is in place so as to
independently review and strengthen the internal controls. The Audit Committee of the
Company reviews the reports of the internal auditors quarterly and recommends steps for
further improvement of the internal controls. They ensure that assets are safeguarded and
protected against loss or unauthorized disposal. It is also designed for effectiveness and
efficiency of operations, compliance or regulations backed by strong audit framework at
all the locations.
7. Cautionary Statement
Statements in the Management Discussion and Analysis describing the Company s
objectives, projections, estimates, expectations may be forward-looking statements. Actual
results may differ materially from those expressed or implied due to various risks and
uncertainties. Important factors that could make a difference to the Company s operations
include economic and political condition in India and in the countries in which the
Company operates volatility in currency rates, changes in Government regulations and
policies, tax laws, statutes and other incidental factors. The Company does not undertake
to update these statements.
8. Financial Performance:
Share Capital:
The Paid up Share Capital of the Company as on 31st March, 2023 stands at
Rs. 105,000,000/- divided into 10,500,000 equity shares of Rs. 10/- each fully paid up.
Reserves and Surplus:
The Reserves and Surplus is Rs. 431.87 lakhs as on the end of the Current year.
Total Income:
During the year under consideration, total income is Rs. 46.22 Lakhs.
9. Employee Relations:
Company has smooth relations with its employees during the year under review.
10. Our Strategy:
In the Precious Financial Year, the pandemic restrictions led the closure of both the
clinics in Mumbai & Goa. Company is developing strategies in order to re-open the
clinic as soon as possible. Further the company is looking into cost management and new
targeted expansion since the economy has started gaining strength. Company is highly
dedicated in searching for new place for expansion and bringing the business prospects of
the Company back to life.
Material Development in Human Resource
The Company s Human Resource Development s efforts aim to make Looks a preferred place
to work. This is being achieved through various initiatives including skill development,
personality enhancement and employee engagement through internal communications to foster
happiness at work.
Details of significant changes (i.e. change of 25% or more as compared to the
immediately previous financial year) in key financial ratios, along with detailed
explanations therefore:
Particulars |
FY 2022- 2023 |
FY 2021- 2022 |
Reasons |
| Debtors Turnover |
0 |
0 |
No debtors outstanding |
Inventory Turnover |
N/A |
N/A |
Not Applicable as Revenue from Operations is purely from Service
Activity |
Interest Coverage Ratio |
N/A |
N/A |
As There is No Interest Expenses During FY 2021-22 hence Interest
Coverage Ratio Not Applicable |
Current Ratio |
67.17 times |
30.55 times |
The current ratio improved due to lesser liabilities & better cash
realization. |
| Debt Equity Ratio |
0 |
0 |
There is no major difference in debt Equity |
Operating Profit Margin (%) |
1,364.54% |
N/A |
The Operating Profit Margin ratio is Negative as company is EBIT is
Loss of Rs. 10.23 Lakhs Ratio. for FY 2022-23 |
Net Profit Margin (%) |
2,127.67% |
N/A |
The Operating Profit Margin ratio is Negative as company is EBIT is
Loss of Rs. 10.23 Lakhs for FY 2022-23 |
11. Details of any change in Return on Net Worth as compared to the immediately
previous financial year along with a detailed explanation thereof: Return on Net worth
FY 2022-23: -1.08% Return on Net worth FY 2021-22: 0.21%
Return on Net worth is decreased by 606.23% during the Financial Year 2022-2023.
The Total Expenses of the Company is increased by 39.99% to Rs. 56.45 Lakhs during FY
2022 -23 as compared to Rs. 40.33 Lakhs during FY 2021-22 which result into Net Loss of
Rs. 15.96 Lakhs for FY 2022-23 as Compared Rs. 3.19 Lakhs Net Profit for FY 2021-22, hence
overall decrease in Net worth by 606.23%.
By Order of the Board
For Looks Health Services Limited
sd/-
Pritesh Doshi
Chairman cum Managing Director
DIN: 05155318
Date: 04th September, 2023
Place: Mumbai
+91-9892691696
