deep diamond india ltd share price Management discussions


Annexure III

Your Directors are pleased to present the Management Discussion and Analysis Report for the year ended March 31, 2023.

The Management Discussion and Analysis have been included in consonance with the Code of Corporate Governance as approved by The Securities and Exchange Board of India (SEBI). Investors are cautioned that these discussions contain certain forward-looking statements that involve risk and uncertainties including those risks which are inherent in the Companys growth and strategy. The company undertakes no obligation to publicly update or revise any of the opinions or forward-looking statements expressed in this report consequent to new information or developments, events or otherwise.

The management of the company is presenting herein the overview, opportunities and threats, initiatives by the Company and overall strategy of the company and its outlook for the future. This outlook is based on managements own assessment, and it may vary due to future economic and other future developments in the country

Forward looking statement:

The Statements made in this report describe the Companys objectives and projections that may be forward looking statements which are based on certain assumptions and expectations of future events. The Companys actual results may differ materially from those projected in any such forward-looking statements depending on economic conditions, government policies and decisions which are beyond the control of the Company.

Segment-wise or product-wise performance:

The Company falls within two business segments viz. ‘diamond Jewellery and ‘Pharmaceuticals. The sales are substantial in the domestic market and the said financial statements are reflective of the information required by Accounting Standard 17 "Segment Reporting", notified under the Companies (Accounting Standards) Rules, 2006.

The Company continues to be engaged in activities pertaining to sale of gold and diamond studded Jewellery.

Further the Company has also engaged itself in the new business segment pertaining to marketing of Pharmaceutical goods in India during the year under review.

Internal Control Systems:

The Company has in place an adequate and effective internal audit and control systems which ensure efficiency in operations, and optimum use of resources. Internal Control weaknesses are reported regularly, and timely steps are taken as and when required. The effectiveness of the internal control systems is constantly monitored by the Audit Committee set up by the Board and the required changes are introduced as and when necessary.

Risk Management:

Your Companys risk management system comprises of prudential norms, timely reporting, and stringent controls.

Opportunities and Threats

Some of the key trends of the industry that are favorable to the company to exploit these emerging opportunities are:

Clients are more comfortable with the uniform high quality and quick service and process across the enterprise.

There are good prospects for expanding further activities in this direction.

Some of the key changes in the industry unfavorable to the company are:

Heightened competition

Increasing Compliances

Attraction and retention of human capital.

Regulatory changes.

Segment-wise/Product-wise Performance:

Your Company has two reporting segments. The revenue from operations from Diamond-Jewellery and Pharmaceutical segment for the year is 557.22 lakhs and Rs.210.00 Lakhs respectively and the combined net profit from both the segments is Rs.125.60 lakhs.

Human resources:

Your company has been able to employ and retain qualified professionals by offering a challenging work environment and compensation. The Company provides in-house training to its employees.

The Management believes in maintaining cordial relations with its employees. The management recognizes the importance of Human Resources and effective steps will be taken to strengthen the same depending on the requirements. The Company provided an excellent working environment so that the individual staff can reach his/her full potential. The Company is poised to take on the challenges and march towards accomplishing its mission with success. The Company maintained good Industrial/Business relation in the market which enhanced the Creditworthiness of the Company.

Insurance:

The Company has insured its assets and operations against all insurable risks including fire, earthquake, flood etc. as part of its overall risk management strategies

Key Financial Ratios:

In accordance with the Securities and Exchange Board of India (Listing Obligations and Disclosures Requirements) (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in Key sector-specific financial ratios.

The Company has identified the following ratios as key financial ratios:

Particulars

F.Y. 2022- 23 F.Y. 2021- 22
Current Ratio1 7.65 76.42
Debt Equity Ratio 0.26 0.00
Return on Equity Ratio2 11.21 2.60
Trade Receivables Turnover 4.91 3.24
Ratio3
Trade Payables Turnover Ratio4 3.86 19.42
Net Capital Turnover Ratio 89.38 30.16
Net Profit Ratio5 16.37 14.15
Return on Capital Employed6 11.03 3.45

1Decrease in current ratio due to Regrouping /rearrangement of Current Loans/Advances into Non-Current Loans/Advances. 2The Return on Equity Ratio is increased, as there is an increase in Net Profit after tax due to the increase in the Sales from Pharmaceutical Segment during the year into consideration. 3Trade Receivable Turnover Ratio is increased, as there was an increase in the companys turnover during the year into consideration. 4The Trade Payable Turnover Ratio is decreased, as there was a decrease in total purchases during the year into consideration. 5The Net Profit Ratio is increased, as there is an increase in profit during the year into consideration. 6The Return on Capital Employed Ratio is increased, as there is increase in Net Profit after tax during the year into consideration

Cautionary Statement:

The statement in the Management Discussion and Analysis describing the Companys objectives, exceptions or predictions may be forwards looking within the meaning of applicable securities, laws, and regulations. Actual results may differ materially from those expressed in the statement. Several factors could make a significant difference to the companys operation. These include climatic conditions and economic conditions affecting demand and supply, government regulations and taxation, natural calamities etc. over which the company does not have any control.

FOR AND BEHALF OF THE BOARD

OF DEEP DIAMOND INDIA LIMITED

Sd/- Sd/-

Ganpat Lal Nyati

Sonali Ladda

Place: Mumbai

Managing Director

Whole Time Director

& CEO

Date: August 28, 2023

Din: 09608005

DIN: 09782074