AVI Products India Ltd Management Discussions.

Your Directors have pleasure in presenting the Management Discussion and Analysis report for the year ended on 31st March, 2022

FORWARD-LOOKING STATEMENTS:

This report contains forward-looking statements based on certain assumptions and expectations of future events. The Company, therefore, cannot guarantee that these assumptions and expectations are accurate or will be realized. The Companys actual results, performance or achievements can thus differ materially from those projected in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

INDUSTRY STRUCTURE, DEVELOPMENT:

The Company is operating from 110, Manish Ind Estate No. 4, Navghar Road, Vasai (E), Dist: Palghar- 401210, Maharashtra, India.

PERFORMANCE:

The Company is in the business of trading in Dental and Healthcare products and in the distribution food and beverages products more specifically in Ice Creams and Fast Food, offering Franchisees under the brand IFRUIT. The company is also planning to open a chain of Quick Service Restaurants (QSR) to serve the growing demand of fast food.

Dental & Healthcare Products: The company has now started marketing Indian made endodontic files which is a fast moving product in Dentistry. The high-quality files are now replacing imported files and are proving better in quality and very competitive in price. The price of imported files have increased substantially due to increase in freight charges hence this gives us an opportunity to market local endodontic files. We are using the Digital Marketing platforms to reach end users directly thereby passing on the benefit of by passing dealer margin to the end user.

Ice Cream & Fast Food Franchisee: Our brand of IFRUIT franchisee have reached all corners of the country and more entrepreneurs are seeking the franchisee in medium and smaller cities and towns to enhance their earnings. We have received good leads and interest and are aggressively marketing to potential customers to increase our Franchisee base. More information on Ifruit and products can be viewed on www.ifruit.in.

Quick Service Restaurants: The company will now market QSR to cater to the growing fast food demand in the country. We have goods experience in marketing these type of service and expect good results from this activity.

SEGMENT-WISE PERFORMANCE:

The Company is in the business of distribution of dental and healthcare products and also in the distribution food and beverages products more specifically in Ice Creams and Fast Foods. Both the dental and healthcare segment and the food and beverages segment have shown similar performance trends.

OPPORTUNITIES AND THREATS:

The fundamental growth drivers of the countrys economy as well as our Company continue to remain strong despite the pressures of slowdown and inflationary conditions prevalent till recently in the nation and also globally. We are receiving very positive signs from prospective franchisees of our Food and Beverages business. Also, the dental products business also is in discussion with new companies for onboarding for its distribution platform. There is a substantial growth in the number of leads we are receiving for franchising for our Food and Beverages business. The threats to the segments in which the Company operates are volatility in Exchange rate, pricing pressure arising due to competition from low-cost suppliers, technology up-gradation, severe competition amongst competitors. Although the food and beverages was impacted severely during the COVID-19 pandemic, the company has recovered at a significant rate and plans to expand into a new fast food segments as also opening of chain of QSR restaurants.

MANAGEMENT TEAM:

The existing management has a strong technical and management knowledge and experience in the distribution business. Mr. Avinash Vora, Chairman and Managing Director of the Company is an entrepreneur and is having vast knowledge and expertise in handling various business including the business of the Company. Mr. Vikram Vora, Whole Time Director of the Company and he was a MMS Marketing. Having past experience of working for Indias largest private bank, he brings in great value to the Company.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has proper and adequate internal control system commensurate with the size of the business operations geared towards achieving efficiency in its various business operations, safeguarding assets, optimum utilization of resources and compliance with statutory regulations. The management is ensuring an effective internal control system to safeguard the assets of the Company. Efforts for continued improvement of internal control system are being consistently made in this regard. The Company has cleared secured bank liability against assets.

HUMAN RESOURCES VIS-A-VIS INDUSTRIAL RELATIONS:

The Company values and appreciates the dedication and drive with which its employees have contributed towards improved performance during the year under review. The industrial relations with staff and officers are cordial during the year under review. All issues pertaining to staff matters are resolved in harmonious and cordial manner.

CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates changes in the Government regulations, tax laws, and other statutes and other incidental factors.