Alfa Ica (India) Ltd Management Discussions.

1. GLOBAL ECONOMIC OVERVIEW

FY 2019-20 was a year of synchronized slowdown in both the advanced as well as developing economies across the world. The escalation of the tariff war between the US and China for major part of the year led to significant on global trade. The US economy grew at a relatively strong rate of 2.3%. The Chinese growth engine too slowed down with exports under pressure. However, due to its Government supported infrastructure investment drive, the economy recorded a moderate growth rate and stood at 6.1%. At the same time, the Eurozone continued to witness staggered growth with pressures from the Brexit uncertainty as well as political uncertainty in some of its member states. The trade truce or partial deal between the US and China in the second half of the year brought along expectations of a revival in global trade and overall economic growth. Door Covering, However, the rapid spread of the COVID-19 pandemic across the world and the ensuing lockdown in several countries brought unprecedented testing times for the e other things. entire global economy as the financial year ended.

2. INDIAN ECONOMY

The Indian economy continued with its slow growth trend, with quarterly growth rates trending downwards through the year. The decline was led by a slowdown in the key construction sector, a restricted real estate space and persistent downturn in the automotive sector. The fourth quarter witnessed a growth rate of 3% - the lowest in almost a decade. It aptly highlighted the concern of deceleration in the domestic economy even before the impact of COVID-19 shock. The reasons for this consistent downward growth trajectory are multi-fold. The large-scale defaults and governance issues in few large non-banking resulted in liquidity squeeze in the financial Institutions corporate debt markets. This not only hurt some of the larger corporates, but also severely impacted the mid and small-size companies as the lending channels practically froze. At time,the vagaries of the monsoon same extended monsoon in some regions and deficitrainfall in others also adversely impacted the rural sector. The easy monetary policy regime implemented by the Reserve Bank of India as well as measures taken by the Central Government like sharp reductionin corporate tax rates have not helped the economy get back to its growth trajectory. the Indian currency was stable for most On part of the year. It faced significant downward pressure in the last quarter on bouts of increased volatility across global financialmarkets with the rising uncertainty around COVID-19.

3. BUSINESS OVERVIEW

Your company is in the business of High Pressure Laminate (H.P.L) Sheets & Compacts .Alfa ranges are available in several Colours, Designs and Textures consisting of more than 400 design decors and more than 50 textures. With more decors and more finishes, our innovation brings you beautiful, high quality environmental friendly solutions.

Alfa High Pressure Laminates are recognized and pressureappreciated by architects, interiors and fitters. We confirm all our produce is as per strict requirements of EN438 (European Standard).To ensure European quality, all decorative papers are sourced from worlds best European printers.

In changing world, we are changing faster. We are relentless in our pursuit of discovery and innovation, bringing in technologies that empower us to enhance your environment, constantly opening the door to a world of possibility. Alfa Laminate sheets are used for various applications in many areas such as Furniture Covering, Wall Shower Panels, Interior Paneling, Wall Paneling, Exterior Wall Cladding, Green Chalk Board, White Marker Board, Kitchen Top and Backsplash, Table Top, Anti-bacterial laminate, Anti-fingerprint laminate, mo Cubiclepartitionpanel and Your company assures highest commitment of consistent innovation by introduction of new designs as well as finishes to feed furniture designers. The companys philosophy is to attain transparency and accountability in its relationship with all its stakeholders, ensuring a high degree of regulatory compliance.

4. DISCUSSION ON COMPANYS PERFORMANCE

Your Company continues to sustain with its overall year 2018-19 driven performancein by the financial average performance in existing business. Currently the Company is running well in decorative laminates segment. Your Directors have been making efforts on all fronts viz. production, marketing, finance and cost control etc. and these efforts have been yielding good results. The outlook for the companys products appears to be good and the company is confident of achieving improved operational performance.

The Profit before Tax amounted toRs. 165, 11,470 as against Rs.178, 52, 003 in the previous year. The net profit after tax was Rs. 123, 21,013 as against Rs.124, 54, 939 in the previous year.

Your company has continued to put in all possible efforts to boost exports, during the year under review achieved Export sales of Rs. 442,341,510.

5. INTERNAL CONTROL SYSTEM

The Company has in place robust internal control procedures commensurate with its size and operations.

Company has the internal controls Department headed by Internal Auditor of the company. The Board of Directors is also responsible for the internal control system, sets the guidelines, verifying its adequacy, effectiveness and application. The Companys internal control system is , measurabilityefficiency designedtoensuremanagement and information, compliance with all applicable laws and regulations, and the protection so that the companys main risks (operational, related, economic and financial)are properly identified managed overtime.

6. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Company maintained healthy, cordial and harmonious industrial relations at all levels. The Board of Directors and management wish to place on record their appreciation of the efforts put in by all employees to achieve good performance.

Some of the companys core developments on the HR front and imitative planned during the year under review included the following:

Standardized recruitment through creating robust systems and processes to ensure that only those qualified whose skill sets matched requirements;

Focused on training to establish a professional e-learning module

Focus on capabilities interventions, both on functional and behavioral side

With a view to professionalize payroll, to outsource the service to ensure that all statutory and regulatory compliances are met to the highest level There was not any case pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition Redressal) Act, 2013 was reported during the year.

7. RISK MANAGEMENT

Your Company has adopted a mechanism to identify, assess, monitor and mitigate various risks to key business objectives. Major risks elements associated businesses and functions of the Company identified and will be systematically addressed through mitigating actions discussed at the meetings of the Audit the Board of Directors of the Company. Risk Management forms an integral part of the Companys planning process. There are no risks, which in the opinion of the Board threaten the existence of your Company. of the Companys compliance-

8. FUTURE OUTLOOK and

Exports shall remain the core growth are and a lot depends on oversease economic recovery. In the domestic sector, the outlook seems to best able in long term, with the economy expected to perform better in the years to come. Though inflation is a worry which may dampen real spends in the economy, but an emphasis on infrastructure and housing shall push the demand for companys products.

9. SEGMENT-WISE AND PRODUCT-WISE PERFORMANCE

The Company is engaged primarily in manufacturing of Laminated Sheets and there are no separate reportable segments.

10. CAUTIONARY STATEMENT: with Certain statements in this Annual Report more particularly the in the Management Discussion and Analysis Report describing the Companysstrength,strategies,objectives, predictions, expectations and estimates looking statements" within the meaning of applicable laws and regulations.Actualresultsmayvarysignificantly from the forward looking statements contained in this document due to various risks and uncertainties. These risks and uncertainties include global and domestic financial market conditions affecting the interest of resources for the financial sector, market for lending, changes in regulatory directions issued tax laws, economic situation affecting demand / supply, price conditions in the domestic markets in which Company and operates, significant changes in political and economic environment in India, applicable statues, litigations, labour relations that may impact the Companys business as as its ability to implement its strategies. Further, market data and product information contained in this Report are with the based on information gathered from various published and been unpublished reports, and their accuracy, reliability and completeness cannot be assured. The Company does not a continuing basis. These are already undertake to update these statements. And