Aditya Consumer Marketing Ltd Management Discussions.

AS PER LODR Overview of Economy

Real GDP growth or Gross Domestic Product(GDP) growth of India at constant(2011-12) prices in the year 2018-19 is estimated at 6.81% as compared to the growth rate of 7.17% in 2017-18. The growth in gross domestic product was slowest since 2014-15. The previous low was 6.39% in 2013-14.

Industry Scenario

Your Company has opened new unit of all segments in Gaya, i.e. 9 to 9 Supermarket, 9 to 9 Salon & Spa, YO! CHINA and 9to9 Banquet in the year 2018 and also opened Take-Away-Express Restaurant (A Online & Of ine Food Delivery Platform) in Mumbai in the year 2019. Company is now mulling the options of opening these units in Muzaffarpur. Additionally, we are planning to open Yo! China restaurant in Darbhanga, With growth in urban income there has been a rise in discretionary spending mostly falling in areas operated by our Company. However, completion from rapidly growing national players in smaller towns and aggressive e-com players has been challenging. But we have a niche client base which continues to be loyal and ever expanding.

Retail Industry Conditions

India is the fth largest preferred retail destination globally. The country is among the highest in the world in terms of per capita retail store availability. India’s retail sector is experiencing exponential growth, with retail development taking place not just in major cities and metros, but also in Tier-II and Tier-III cities India’s population is taking to online retail in a big way. Online retail sale is forecasted to grow . The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players.

Retailing in India accounts for over 10% of the country’s Gross Domestic Product (GDP) and around 8% of the employment (Source: IBEF). Financial year 2018-19 stood as another year of mixed trends. The retail sector in India witnessed some improvement in consumer sentiments and business con dence. Collective efforts of financial houses and banks with retailers are enabling consumers to go for durable products with easy credit.

The introduction of Goods and Services Tax (GST) and the demonetization move supported the growth of organized retail industry.

Opportunities, Threats and Challenges Opportunities

• Huge Growth Potential in our service segment

• Increasing demand for healthier food and home meal delivery

• Growing population, both in numbers and choices

• Increase in domestic market of products

Threats

• Increased Competition from Local & Big Players

• Rising in ations constrains the operating margins

• Low Margin in FMCG Segment.

• Shortfall of skilled labor

Risk & Concerns

Internal Control System and their adequacy

The Company has adequate internal control system, commensurate with the size of its operations. Adequate records and documents are maintained as required by laws. The Audit Committee reviews adequacy and effectiveness of the Company’s internal control environment and monitors the implementation of audit recommendations. The Audit Committee gives valuable suggestions from time to time for improvement of the company’s business processes, systems and internal controls. All efforts are being made to make the internal control systems more effective.

Discussion of the Financial Performance with respect to operational performance

In a competitive environment also your company have seen a growth in sales which resulted an increase in Net Pro t & EBITDA. Your company has earned gross revenue of Rs. 84.17 crore through sale against Rs. 75.17 crore in the previous year and net revenue of Rs. 76.89 crore against Rs. 69.76 crore in the previous year, registering a growth of 10.22% YOY. EBITDA also grew by 9.07% to 9.42% with a growth of 3.85% as compared to last year and in absolute terms 14.53% to Rs. 7.25 crore in current year from Rs. 6.33 crore in previous year. Your Company’s net profit after tax jumped by 23% to Rs. 3.67 crore from Rs. 2.98 crore in the previous year. Same Store Sales growth had been 6.82%.

The increase in EBITDA has been possible due to continued focus in increasing the share of profitable segment sale. Share of salon business grew by 0.92% to 8.62% of total sales. Similarly sale of Food & Beverages grew by 27.02% of 18.66% of total sales compared to 16.19% in previous year & Retail have also seen an increase in sales by 7.74%.