Brand Concepts Ltd Management Discussions.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Indian Luggage Industry has grown at a rapid pace over the years. It has been majorly dominated by strong consumer demand in the overall market. Rise in the personal disposable income, growth in air travel and growing acceptance of Luggage bags as lifestyle products by the customers have contributed significantly to Luggage Industry in India. The Luggage market has been further categorized into travel, business and casual bags which add a number of categories, styles and varieties in it which gives a wide option to the consumers to go with their choice which overall gives the high revenue to the industry.

Similarly increasing preferences to carry fashion accessories along with the individual attire became the current furore amongst the youth. The other factors driving industry growth is largely due to the opening up of new hypermarkets and departmental stores which led to an increase in brand visibility, thereby contributing immensely to the demand for branded bags among the people. Therefore branded handbags, belts and wallets industry has shown positive growth in line with the company vision. Ecommerce business channel continues to grow at a very healthy pace and contributed towards the growth of the product line.

The Objective of the company is to further strengthen its position and become one of the Indias most regarded Fashion & Lifestyle Accessories retail entity, by adding more valuable brands to our portfolio. Also to collaborate with relevant and strategic International & Indian brand partners and provide them the right platform for retailing their products in India using innovative concepts to value add to their business as well as to the end consumer.

OPPORTUNITIES AND THREATS:

In India, there is big emerging market towards these products and the company has a healthy lead over its competition in terms of brands. There is an accelerating consumer shift towards Ecommerce and Hypermarkets and the Company has increased its presence and investment on these platforms. The Company is also more focused on expansion of point of sales, distribution along with the product line and services.

Changing trends in fashion & lifestyle can lead to slowdown in the key market which can lead to decrease the volume of sales of Company. Increased competition from Indian and global players could impact its growth plans and Profitability. There is continuous threat of intense competition from other brands and high working capital requirement.

SEGMENTWISE OR PRODUCTWISE PERFORMANCE AND DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Company continues in one segment only i.e. trading of branded luggages and accessories. The Company continues to see good growth in its overall performance in the financial year 2018-19 driven by the performance of the segment in which the Company operates. Your directors are glad to report that during the year under review, your company has posted higher gross income of Rs. 81.80 crores as compared to Rs. 68.37 crores in the corresponding previous year, registering a growth of approx. 20% as compared to previous corresponding year. As a result, your company has posted much better net Profit of Rs. 2.68 crores as compared to Rs. 2.24 crores in the corresponding previous year registering growth of approx. 20%. Your directors believe that improved financial results are directly attributable to several corrective measures viz. increasing volumes; improve productivity and ensuring overall operational efficiency at different stages and savings in cost.

OUTLOOKS AND RISKS

Under a common goal, together we all look forward to capture both current and future market opportunities. We always seek opportunities to expand our product portfolio with relevant brands and categories. From Backpacks to Travel Gear, Belts & Wallets, Women Handbags & Women Wallets & Clutches and adding more.

The Company has in place a mechanism to identify, assess, monitor and mitigate various risks to Key business objectives. Major risks identified by the Board and systematically steps taken to mitigate on a continuous basis. The Companys internal control system is commensurate with the nature of its business and the size and complexity of operations.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has adequate system of internal control to safeguard and protect from loss, unauthorized use or disposition of its assets. All the transactions are properly authorized, recorded and reported to the Management. The Company is following all the applicable Accounting Standards for properly maintaining the books of accounts and reporting financial statements. The internal control system is commensurate with its size and scale of operations. Roles and responsibilities are clearly defined and assigned. Standard operating procedures are in place and have been designed to provide a reasonable assurance. Internal checks from time to time ensure that responsibilities are executed effectively. The observations and good practices suggested are thoroughly reviewed by the Management and appropriately implemented for strengthening the controls of various business processes.

HUMAN RESOURCE AND INDUSTRIAL RELATIONS

Human resource has played a very important role in the growth of Brand Concepts. Managing a team of 10 people and managing a full team of more than 400 plus people at different locations needs a lot of efforts. We believe that our employees are key contributors to our success. Retail industry sees a high employee turnover. We have been fortunate enough to have people who have been committed to the organization at all times. Our Company also looks for specific skill-sets, interests and background that would be an asset for its kind of business. Our team has a good mix of the experienced and young people, which gives us the dual advantage of stability and growth. Our people are our strength that derives success. Our basic objective is to ensure that a robust talent pipeline and a high-performance culture, centered on accountability is in place. We feel this is critical to enable us retain our competitive edge

CAUTIONARY STATEMENT

Statement made in this report in describing the Companys Objectives, projections, estimates, expectations may be "forward looking statements" within the meaning of applicable securities laws and regulations. Many factors may affect the actual results, which could be different from what the directors envisage in terms of future performance and outlook. Important factors that could influence the Companys operations include global and domestic supply and demand conditions affecting selling prices of finished goods, availability of inputs and their prices, changes in the Government policies, regulations, tax laws, economic developments within the country and outside and other factors such as litigation and industrial relations.

The Company assumes no responsibility to publically amend, modify or revise any forward-looking statements, on the basis of subsequent developments, information or events.

For and on behalf of the Board of
Brand Concepts Limited
Place: Indore
Dated: 28-08-2019 Prateek Maheshwari Abhinav Kumar
Managing Director Whole-Time Director
DIN- 00039340 DIN-06687880