agarwal fortune india ltd share price Management discussions

Pursuant to SEBI (LODR) Regulations, 2015, your Directors have the pleasure in presenting the Management Discussion and Analysis Report for the year ended on March 31, 2023.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian glass market was worth about USD 2.7 billion during 2011-12. The per capita glass consumption was 1.2kg compared with 8-9 kg in developed countries and 30-35 kg in USA. During the same period the flat glass market was 4500 tpd (tonnes per day) and was growing at 16%. The market for container glass was about 7000 tpd which has a share of 55-60% of overall market share in the country.

The Indian glass industry has been growing across all segments. Sheet and float glass have recorded the fastest growth, at nearly 67 per cent CAGR (Compound Annual Growth Rate) between 2001 and 2005. Other glassware such as bottles and fibre glass has recorded more modest growth rates of about 5-6 per cent CAGR, over the same period.

It is expected that in future, glass consumption will grow in construction, automotive, consumer goods and pharmaceutical sectors.

Outlook:

Various forecasts have estimated a sharp de-growth in the Indian economy for the current financial year, the first such instance of de-growth in decades.

Indias economic structure and growth make it an attractive market for any business opportunities that can cater to the growing needs of both the Company as well as the stakeholders of the Company.

The liquidity in the banking system, which was impacted after the NBFC fallout, is likely to see gradual improvement.

In spite of challenges faced, the silver lining for India and some other emerging markets in specific is the aftermath of the pandemic has brought to the fore a seemingly structural shift in the desire of several countries and companies wanting to potentially move manufacturing facilities out of China. This could lead to a once in a two decade opportunity for a country like ours to create a virtuous cycle for manufacturing, job growth, self- reliance and hence consumption for the long term. In fact, we are already starting to see winds of change with these companies starting to consider India as their potential manufacturing destination. This will provide substantial impetus to the Governments vision of Make in India.

OPPORTUNITIES & THREATS OPPORTUNITIES

• Increasing Financial Services industrys share of wallet for disposable income.

• Leadership in sophisticated solutions that enable our clients to optimize the efficiency of their business.

• Leveraging technology to enable best practices and processes.

• Corporate looking at consolidation / acquisitions / restructuring opens out opportunities for the corporate advisory business.

THREATS

• Execution risk

• Short term economic slowdown impacting investor sentiments and business activities

• Slowdown in global liquidity flows

• Increased intensity of competition from local and global players

• Market trends making other assets relatively attractive as investment avenues

SEGMENT-WISE & PRODUCT-WISE PERFORMANCE

The company operates in only single segment, hence segment reporting is not applicable. The Company is mainly engaged in the Trading of Glasses and other allied activities.

The Highlights of the Companys performance are as under:

During the year, the Company earned Total Revenue of Rs 517.94 Lakhs as against Rs 22.44 in corresponding previous year and earned a net profit of Rs 6.26 Lakhs.

FUTURE OUTLOOK

The Company is looking for the new Business opportunities to give the best to stakeholders of the Company. The outlook for the Company appears bright on a long-term basis. The Company is hopeful that its performance in the years to come would be encouraging, as the Company is planning to enter into new segments. Your Company will endeavor to maintain and enhance its position in the furniture market.

RISKS AND CONCERNS

Every Company is prone to internal and external risks, including risks around compliance, operational, strategic and many others. Many of these risks are inherent in the enterprise structure of any organization and may interfere with an organizations operations and objectives. Further as our Company is looking for the new Business opportunities the Following Risk associate for doing any business:

• Market Risk

• Reputation Risk

• Competition Risk

• Technological Risk

• Changes in the policies of the Government of India or political instability may adversely affect economic conditions in India generally, which could impact our business and prospects.

• New and changing regulatory compliance, corporate governance and public disclosure requirements add uncertainty to our compliance policies and increase our costs of compliance.

The board of directors also reviewed the key risks associated with the business of the Company, the procedures adopted to assess the risks, efficacy and mitigation measures.

INTERNAL CONTROL SYSTEMS

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.

Internal check is conducted on a periodical basis to ascertain the adequacy and effectiveness of internal control systems. The system also helps management to have timely data on various operational parameters for effective review. It also ensures proper safeguarding of assets across the Company and its economical use.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the Financial Year Company has not done any business activity due to lack of financial resource which resulted in to the week financial performance of the Company.

The Highlights of the Companys performance are as under:

During the year, the Company earned Total Revenue of Rs 517.94 Lakhs as against Rs 22.44 in corresponding previous year and earned a net profit of Rs 6.26 Lakhs.

HUMAN RESOURCES / INDUSTRIAL RELATIONS

The Company is presently working with four Directors, One MD, One CFO and one CS.

Your Company follows a strategy of attracting and retaining the best talent and keep employees engaged, motivated and innovative. The Company continues to have cordial relations with its employees and provide personnel development opportunities for all round exposure to them.