Dhabriya Polywood Ltd Management Discussions.

Corporate Overview

Late Prof. S.S. Dhabriya who was an environmentalist and a remote sensing expert had contributed a lot towards saving nature. His motto of life was to save trees. He has been the inspiration for all of us to work towards the betterment of the human race by saving natural resources. His values have been the motto of our lives and we have reached so far following his footprints. Dhabriya Polywood Limited was incorporated under the erstwhile Companies Act, 1956 in the year 1992.

Your Company started its operations in the year 1995 with production of U/R-PVC (Unplastisized/Rigid Poly Vinyl Chloride) Profiles under the brand name "Polywood". Over the years, we have gradually expanded our product base to include the PVC (Poly Vinyl Chloride) Section with various designs to suit the complete fabrication requirement of Doors, Windows, Partitions, False Ceilings, Wall Paneling, Pelmet, Kitchen Cabinets & other interior applications. In the last 25 years, "Polywood" has been an undeniable part of the "Save Trees" campaign by bringing in the minds of people the use of PVC Profiles which, was only confined to European Countries earlier. The Company has also taken the credit of launching for the first time in India some exquisite products like PVC Folding Doors, PVC Designer Doors, PVC Fencing, Wood Plastic Composite Panels.

Economy Overview Global

The global economy reported de-growth of 3.5% in 2020 compared to a growth of 2.9% in 2019. This steep decline in global economic growth was largely due to the outbreak of the novel coronavirus and consequent suspension of economic activities across the world. The global economy is projected to grow by 5.5% in 2021 largely due to the successful roll-out of vaccines across the globe, coupled with policy support in large economies. (Source: IMF)

Region Growth% 2020 2019
World Output (3.5) 2.9
Advanced economies (4.9) 1.7
Emerging and developing economies (2.4) 3.7
Source: IMF


The Indian economy passed through one of the volatile periods in living memory in 2020-21. At the start of 2020, India was among five largest global economies; its economic growth rate was the fastest among major economies (save China); its market size at 1.38 bn was the second largest in the world; its rural population of the under-consumed was the largest in the world.

The Indian government announced a complete lockdown in public movement and economic activity from the fourth week of March 2020. The lockdown staggered an already slowing economy as 1.38 billion Indians stayed indoors - one of the most stringent lockdowns anywhere.

The outbreak of the novel coronavirus impacted the Indian economy during the first quarter of the year under review. The Indian economy de-grew 23.9 per cent in the first quarter of 2020-21, the sharpest de-growth experienced by the country since the index was prepared.

The Indian and state governments selectively lifted controls on movement, public gatherings and events from June 2020 onwards. The result is that Indias relief consumption, following the lifting of social distancing controls, translated into a full-blown economic recovery. A number of sectors in India real estate, steel, cement, home building products and consumer durables, among others - reported unprecedented growth. India de-grew at a relatively improved 7.5 per cent in the July-September quarter and reported 0.4 per cent growth in the October- December quarter and a 1.6% growth in the last quarter of the year under review.

The result is that Indias GDP contracted 7.3% during 2020-21 largely on account of the sharp depreciation of the first two quarters. This recovery one of the most decisive among major economies validated Indias long-term consumption potential.

Y-o-Y growth of the Indian economy

Region Growth% FY18 FY19 FY20 FY21
Real GDP growth (%) 7 6.1 4.2 -7.3

Growth of the Indian economy, 2020-21

Region Q1, Q2, Q3 Q4
Growth% FY21 FY21 FY21 FY21
Real GDP growth (%) (23.9) (7.5) 0.4 1.6


(Source: Economic Times, IMF, EIU, Business Standard, McKinsey)

Indian economic reforms and recovery

There were a number of positive features of the Indian economy during the year under review. India reported improving Goods and Services Tax (GST) collections month-on-month in the second half of 2020-21 following the relaxation of the lockdown, validating the consumption-driven improvement in the economy.

The per capita income was estimated to have declined by 5% from 1.35 Lakh in 2019-20 to 1.27 Lakh in 2020-21, which was considered moderate in view of the extensive demand destruction in the first two quarters of 2020-21.

Despite the gloomy economic scenario, foreign direct investments (FDI) in India increased 13% to US$57 Bn in 2020.

India jumped 14 places to 63 in the 2020 World Banks Ease of Doing Business ranking and was the only country in the emerging market basket that received positive FPIs of $23.6 Bn in 2020; the country ranked eighth among the worlds top stock markets with a market capitalization of $2.5 trillion in 2020.

The Indian government initiated structural reforms in agriculture, labour laws and medium-small enterprise segments. The labour reforms were intended to empower MSMEs increase employment, enhance labour productivity and wages.

The government approved amendments to the Essential Commodities Act and brought an ordinance to allow farmers to sell their crop to anyone; the changes to the Essential Commodities Act, 1955, were intended to ‘deregulate agricultural commodities (cereals, pulses, oilseeds, edible oils, onions and potatoes from stock limits). The government approved the Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020, to ensure barrier-free trade in agriculture produce.

The Government relaxed foreign direct investment (FDI) norms for sectors like defence, coal mining, contract manufacturing and single-brand retail trading.

The Union Cabinet approved the production-linked incentive (PLI) scheme for 10 sectors: pharmaceuticals, automobiles and auto components, telecom and networking products, advanced chemistry cell batteries, textile, food products, solar modules, white goods and specialty steel. These incentives could attract outsized investments, catalyzing Indias growth journey.

Indias foreign exchange reserves continue to be in record setting mode FY 20-21 saw $101.5 Bn dollars accretion in reserves, the steepest rise in foreign exchange reserves in any financial year; Indias forex reserves are ranked third after Japan and China and can cover more than a years import payments.


The Indian economy is projected to grow by more than 10% in FY22 as per various institutional estimates, making it one of the fastest-growing economies. Indias growth journey could be the result of a culmination of favorable tailwinds like consistent agricultural performance, flattening of the COVID-19 infection curve, increase in government spending, reforms and an efficient roll-out of the vaccine, among others.

However, the only dampener is the surge in Covid-19 in the first quarter of the current financial year that could affect public consumption of products and services.

Indian construction and building materials industry

Indias construction industry is engaged in growth, which mainly includes real estate and urban development projects. Given the nations objective to modernize infrastructure and bring about a ‘smart development in its cities, India is expected to emerge as the third largest construction market by 2025. This industry covers a wide scope and contributes around 55% to the steel, 15% to the paint and 30% to the glass industry. To facilitate growth, India relaxed foreign investment norms, with the real estate sector solely receiving investments worth US$5 billion. In terms of job creation, the Indian construction sector created more than 50 million jobs in 2020.

The Covid-19 pandemic caused a social and economic disruption. The economic impact on the construction and building industry was vast. The Indian construction industry is expected to experience a YoY growth of 11.6% by 2021. Different industries and markets are bound to go through changes in the upcoming years, with a common factor in each business- digitization. Therefore, even within the real estate and infrastructure industry, while the nature and pace of change could vary from business to business, each of them will be in need of digitization.


(Source: India briefing, Surfaces reporter, roofandfloor.com)

Growth drivers

Rising urbanisation: Indias population is expected to rise from 1.38 billion in 2020 to 1.52 billion in 2036.

Demographic dividend: Indias median age of population is 28 years, which is lower compared to the global average of 30, expected to drive demand for building materials.

Rise of real estate sector: The real estate sector is projected to increase from a market size of US$ 180 billion in 2020 to US$ 650 billion in 2025.

Smart Cities Mission: An allocation of 137 billion was made in the Union Budget 2021-22 for the Smart Cities Mission, which aims to promote ‘smart cities that provide their citizens with the benefit of core infrastructure, as well as decent life quality, clean and sustainable environment.

Pradhan Mantri Awas Yojana - Gramin (PMAY-G): India seeks to build 30 million houses in rural areas by 2022.

Budgetary allocation: The Ministry of Rural Development received the 4th highest allocation of the Union Budget 2021-22 across all ministries (1,33,690 crore). Out of this amount, 98% was allotted to the Department of Rural Development and the rest to the Department of Land Resources. (Source: The wire, Trading Economics, Statista, PRS, India briefing)

Indian Plastic/PVC Industry

The Indian plastics industry made a promising beginning in 1957 with the production of polystyrene. Thereafter, significant progress has been made, and the industry has grown and diversified rapidly. The industry spans the country and hosts more than 2,000 exporters. It employs about 4 million people and comprises more than 30,000 processing units, 85-90 per cent of which are small and medium-sized enterprises.

The Indian plastics industry produces and exports a wide range of raw materials, plastic-moulded extruded goods, polyester films, moulded / soft luggage items, writing instruments, plastic woven sacks and bags, polyvinyl chloride (PVC), leather cloth and sheeting, packaging, consumer goods, sanitary fittings, electrical accessories, laboratory / medical surgical ware, tarpaulins, laminates, fishnets, travel ware, and others. The Indian plastics industry offers excellent potential in terms of capacity, infrastructure and skilled manpower. It is supported by a large number of polymer producers, and plastic process machinery and mould manufacturers in the country.

A wide variety of plastics raw materials are produced to meet the material needs of different sectors of the economy. These polymeric materials are broadly categorized as commodity, engineering and specialty plastics. Commodity plastics are the major products that account for bulk of the plastics and in turn for petrochemical industry. Commodity plastics comprise of Polyethylene (PE), Polypropylene (PP), Polyvinyl Chloride (PVC) and Polystyrene. While engineering and specialty plastics are plastics that exhibit superior mechanical and thermal properties in a wide range of conditions over and above more commonly used commodity plastics and are used for specific purpose. These include styrene derivatives (PS/EPS & SAN/ABS), polycarbonate, poly methyl methacrylate, polycarbonates, poly oxy methylene (POM) plastics etc.

Poly Vinyl Chloride (PVC) industry is important for national economy. Investments are not happening despite the rapidly growing Indian PVC market. The last greenfield investment for a PVC plant in India was conceived in the year 2002-03, when duty differential was a little over 15%. However, while demand has grown by almost 1.6 million tons no new capacity addition has even been envisaged. Indian import duties on PVC are lower than those in the developed world and in the ASEAN Region. Imports of PVC, which were less than 5% of the countrys demand ten years ago, are now at almost 50% and growing rapidly every year and are expected to reach to $3 billion in a few years. Appropriate fiscal measures can propel investments in the PVC sector.

PVC is a synthetic resin made from the polymerization of vinyl chloride. It is the third largest plastic in production and consumption. Technology has gradually improved over time with improvements in safety, product quality, production volume, environmental issues and cost. A key feature of PVC is that it can be combined with additives and fabricated into a wide variety of forms. These include pipes and fittings, profiles and tubes, windows and doors, sidings, wires and cables, film and sheets, toys and other moulded products and floorings. This quality, together with features such as durability, self-extinguishing property, resistance to most chemicals and oil, mechanical strength and ease of processing, means that PVC is a competitive and attractive option for many end uses in construction and infrastructure, agriculture, electrical products and healthcare. Further, only 43% of PVCs content comes from oil. The balance 57% comes from salt, meaning that PVC is less dependent on fossil fuels compared to other materials. This feature, coupled with the fact that PVC products can last up to 100 years, can be recycled and can provide products with good quality to price ratio, greatly reduces life cycle costs of PVC.

The COVID-19 outbreak has resulted in a huge economic crisis across the world. Since the growth in the demand for PVC is directly linked to the rise in GDP, this situation is posing many challenges for the PVC market. Globally, the major PVC-consuming industries, like automotive, electrical and electronics, and building and construction, have been severely hit by the COVID-19 pandemic.

UPVC Windows and Doors

The Indian uPVC doors and windows market witnessed meteoric growth in the last few years, and it is estimated that the market may grow significantly at a CAGR of more than 7% during the forecast period, 2021-2026. The COVID-19 pandemic and lockdown acted as a massive restraint on the Indian uPVC doors and windows market in 2020, as supply chains were disrupted due to trade restrictions. The purchase of these products was declined due to lockdowns imposed by the Indian government. Due to the COVID-19 pandemic, the market was under pressure in 2020, which restricted the construction of housing and building projects. The lockdown restrictions forced to stop the manufacturing of uPVC products and reduced the purchasing of uPVC products, which resulted in a decline in the overall ASEAN market. Increasing consumer spending on the construction and renovation of commercial and residential buildings may drive the Indian doors markets growth. Booming demand for energy-efficient and impact-resistant housing infrastructure may lead the industry toward more innovative product materials. Growing awareness about the benefits of uPVC products, rapid urbanization, high migration of working-class population to urban cities, increased personal disposable income, and rise in residential units contributed to the steady growth of this industry. The market is expected to expand synergistically in the mid-long term, due to several other driving factors, including the shortage of household units in the country, the central governments initiatives to develop affordable housing for all by 2022, and the construction of several smart cities across the country. India still has a shortage of 18 million homes. The uPVC material offers insulation against rain, is recyclable, offers UV protection, sound insulation, resistant to saltwater, and impact resistance, and has several other commercial applications. The unplasticized PVC does not have any additive material added to it during production as the normal PVC, and hence, it requires less energy input during production. Therefore, a massive level of residential unit construction is required to meet this demand of the housing sector. The residential sector presents a huge potential for the expansion and adoption of uPVC doors and windows. Over the past 15 years, India witnessed exceptional growth in the industrial and real estate sector. Urbanization, construction of smart cities, changing lifestyle due to the emerging middle-class population, and FDI in Indian companies are a few factors that have given a push to new building technologies and materials. uPVC (unplasticized polyvinyl chloride) is one such building material that has gained attention as a replacement to other traditional materials. uPVC has low maintenance, yet it is an effective material in making windows and doors. In the last couple of years, the market has witnessed an increasing demand for uPVC windows and doors due to the host of benefits uPVC offers. uPVC windows and doors provide efficient thermal insulation and help in energy conservation. Not only this, uPVC windows provide high sound insulation with properly fabricated windows and installations. In FY 2015, the Government of India started a project of making 100 smart cities by FY 2020. Safety of the public, energy conservation, and eco-friendliness are prime agendas of smart cities. Owing to the high compliance of uPVC doors and windows in high-rise buildings and aesthetics properties, they are more likely to emerge as the preferred fenestration choice over conventional aluminum and timber counterparts. Moreover, a few infrastructural development projects will be undertaken in these cities, which may provide further impetus to the industry over the period 2019-2023. Increasing central and state government finances for infrastructure development projects, public funding, and a decline in the construction material prices will boost the product market growth. In addition, private and public partnership projects to support infrastructure development in rural areas are expected to induce immense potential to the industry size till 2024. The announcement of 100 smart cities from the central government, growth in infrastructure due to enormous investment by both governments in India, and the increase in FDI give a clear indication that the UPVC window and door market may get more opportunities and grow at a good rate.

In terms of market share, a few of the major players currently dominate the market. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and tapping new markets.

SPC Flooring Industry

The increasing use of Stone Plastic Composite (SPC) Flooring in Commercial Use, Residential Use and other industries is driving the growth of the Stone Plastic Composite (SPC) Flooring market across the globe.

Global "Stone Plastic Composite (SPC) Flooring Market" is expected to grow at a steady growth during the forecast period 2021-2026, Stone Plastic Composite (SPC) Flooring Market report offers insights into the latest trends. It summarizes key aspects of the market, with focus on leading key players areas that have witnessed the highest demand, leading regions and applications. It offers qualitative as well as quantitative information regarding the factors, challenges, and opportunities that will define the growth of the market over 2021-2026.

COVID-19 can affect the global economy in three main ways: by directly affecting production and demand, by creating supply chain and market disruption, and by its financial impact on firms and financial markets. The situation across the globe explains that the market will generate remunerative prospects for producers post COVID-19 crisis.


DHABRIYA POLYWOOD LTD. is one of the most reputed name in the manufacturing of uPVC and PVC products for a wide range of building interior & exterior applications. The company was incorporated in the year 1992 with the brand name POLYWOOD with PVC profile products. With continuous growth and innovation, the company extended its product range within the brands: uPVC Windows, uPVC Doors, System Aluminum Windows & Doors, PVC Doors, PVC Wall Panel, PVC Fencing, PVC Furniture, SPC Flooring, PVC foam board.

SPC Flooring

Polywood SPC Flooring is a new type of environment friendly floor that can be recycled. It has the characteristics of 100% waterproof, mold & fungus proof, fire retardant, termite proof, anti-skid, noise free, zero formaldehyde and simple & quick installation.

With our vision to save natural resources like Tree, we always make sure to develop and bring the product which is environment friendly and safe to use. Polywood SPC Flooring production process required no glue, no formaldehyde, no benzene and other toxic substances. It also has no radiation and green product which do not harm the human body. At the same time, Polywood SPC Flooring is a very cost effective and durable. We have a collection of textures like wood grain, marble and fabric. It has much more advantages which can be experienced by the user at home, office and other indoor applications.

Our continues research and innovation for SPC Flooring is based on continues upgradation demand and consumption by Architects, Interior Designers, Users. We take care of their different choices, moods, type of application and aesthetically pleasing. Acceleration of urbanisation and the popularity of premium villas, bungalows and townships, the decorative SPC Flooring has immense demand. Its durability and excellent performance in extreme condition will definitely be the first preference against wood and stone flooring.

Aluminium Windows & Doors

Polywood Slider windows work well in a variety of rooms. A popular choice for contemporary styled homes, sliding windows bring improved ventilation as sashes can be moved right or left with a smooth sliding motion. Polywood Sliding door design offers a unique combination of oversized openings, Compression sealed technology for high energy performance and effortless sash operation all in a traditional sliding panel aesthetic. Polywood Sliding Windows & Doors feature two [or more] horizontal sashes fitted with rollers at the bottom for swift sideways movement on tracks. Faster & easier to operate, they are great for panoramic views and air circulation. As a whole-house solution, sliders create a stunning look that accentuates modern architecture.

PVC Foam Board

Polywood PVC Foam Boards provide a constantly smooth and bright surface. They are lightweight and durable and offer excellent chemical resistance. They have good thermal properties too, making PVC Foam Board a versatile choice suitable for use indoors and outdoors.

Polywood PVC foam board is a kind of building made of polyvinyl chloride, with features as waterproof, flame retardant, acid & alkali resistant, light & heat preservation, noise insulation and shock absorption. The PVC foam sheet can be the ideal substitute of wood, aluminum and composite board. Furthermore, the surface is very smooth and high hardness, which is not easy to be scratched. For this feature, PVC foam board can be the prime choice in making furniture. The surface is polished, grain less, non-porous and clean which can be printed, painted, coated and laminated directly.


D-Stona is a revolutionary product engineered to transform your buildings interiors to a new level of luxury. It is a high-quality engineered marble with limestones as the major component. It is brainchild of Dhabriya Group, a company known throughout India for the benchmark quality they provide. D-Stona decorative and interior products offering are Marble sheet, Moldings, SPC Wall Panels and PVC Laminates in various Marble, Wooden, Royal touch, Metallic, Matt, Sparkle, Elite shades. With its diverse range D-Stona is sure to add a whole new dimension to interior decoration.

uPVC Windows & Doors

Polywood has a very wide range of windows and doors like sliding windows & doors, casement windows & doors, combination window, bay window, fixed window, villa window, arched window etc. Polywood has its own research and development team and we have manufacture and supply as per customer requirements using latest technology. We are using world class profile like Shide & Kommerling to manufacture it. uPVC is proven to offer excellent performance and durability; it is long lasting and requires very little maintenance making it the perfect material for your windows. It is also recognised for its thermal efficiency, sound insulation and great value for money. With Safe style we can rest assured that even in the harshest weather conditions Polywood windows will not warp, rot or rust due to the quality and nature of the uPVC we manufacture. Polywood windows is a 100% waterproof & termite proof & Borer free. It is light in weight and not required any paint or polish and gives an elegant look.

PVC Door

The most popular material for bathroom doors these days, PVC doors are the material of choice for doors in bathroom. They are not only far more durable and enduring than other door materials but are also more flexible in terms of design options. Despite the fact that wooden doors tend to look elegant, they are usually better saved for other parts of the home. Wood is a naturally absorbent material and has the capacity to soak up humidity and moisture which may result in the warping of the doors over time.

Steel doors, on the other hand, are extremely durable and rugged but not pleasing to the eye. While steel is also naturally resistant to water damage, steel tends to be a bit on the expensive side. Furthermore, another factor that should be considered is that prolonged exposure to humidity and moisture will eventually cause many steel doors to rust. Polywood has a wide range of PVC doors like single panel door, multi panel door, premium egress door, glass designer door, folding door, digital printed door etc.

PVC Wall Panel & False Ceiling

Polywood PVC Wall Panels are extensively used to add look and charm to the residential as well as commercial places. Available in a variety of designs and textures, these are easy to maintain and clean. Being water-proof, it is widely popular at locations where wall seepage is a common problem. Available in a wide range of color and designs. If required these panels ca be easily uninstalled to relocate from one place to another. Our range of wall paneling can be customized as per the clients specifications and configuration. These wall panels are non-porous and non-absorbent, thus help in the safe fitting of lighting, access hatches and air-vents.

PVC Furnitures

Polywood modular furnitures help you to make the most of the available space, by effectively giving you plenty of storages and space. Our full spread of features is available for all layouts and designs, allowing you to create a furniture that is built for how you use it. These are available in broad range of eye-catching colors and designs to match the unique requirements of any interior furniture design. Polywood workstations & Tables help you to utilize and organize your workspace very well. Having a stylish appearance and strong construction, our range of PVC workstations is offered in various textures and designs in order to fulfill the varied requirements of our clients, at market leading rates.

PVC Fencing

Polywood fencing can be used for both interior as well as exterior applications. It can be easily grouted over soil, making it ideal for application around household gardens. One of the biggest advantages is that it has rounded edges with plastic fasteners, no metal parts. Therefore, it is safe even when used around childrens. It does not corrode, requires no painting or polishing. Invulnerable to insects or termites and almost no maintenance is required.

There are 2 types of U-PVC fencings Outdoor UV resistant type It can be used for both interior as well as exterior applications. It is grouted with sand. Heavy duty concrete filled type It is used for exterior applications only and is grouted with cement, concrete and iron rod inside the main fence pillars

Confronting the Pandemic

The pandemic affected the business in the same manner as most others in the construction and related industries; Firstly, because of a sudden reduction in the operations of the real estate industry in general, new demand for windows and doors has been compromised. Secondly, labour migration, transportation and manpower related problems due to lockdown and the panic created by the pandemic have introduced various challenges in delivering the required level of the service to the clients. The situation is now getting from bad to worse with the arrival of the second wave of the pandemic and the economy is also getting disrupted owing to the same.


Your Company is confident of overcoming the challenges on account of Covid-19 to a greater extent and ensure business continuity. We are expanding our services to new territories and to start a dealership or franchise model to be able to cater better to the retail market. The company aims to become the biggest window fabrication facility and cover the entire north & south region. It further aims to launch various new types of windows and to distribute uPVC window profiles to window fabrication pan India.

In 2021, The company intends to start a new 75,000 sq. ft. production plant in Bengaluru. In the same year, it will also initiate its uPVC window profiles facility in Bengaluru. The Company further has another aluminium fabrication facility project in the pipeline.

Your Companys objective of becoming one stop solution provider by adding new products under its brand, augurs well over last couple of years. With the above focused approach, your Company is well poised to capture the emerging opportunities in the market and deliver sustained growth.

Financial Overview

Analysis of the profit and loss statement

Revenues: Revenue from operations reported 8.35% decline from Rs.6016.15 lakhs in 2019-20 to Rs.5513.84 lakhs in 2020-21. Other income of the Company reported a 45.49% growth and accounted for 0.86% share of the Companys revenues reflecting the Companys dependence on its core business operations.

Expenses: Total expenses of the Company decreased by 5.68% from Rs.5788.16 lakhs in 2019-20 to Rs.5459.13 lakhs due to lower volume of production.

Profit & Loss: Profit before taxes reported 60.88% decline from Rs.260.42 lakhs to Rs.101.88 lakhs in 2020-21. Total comprehensive income for the period reported 47.18% decline from Rs.132.32 lakhs to Rs.69.89 lakhs compared from previous year.

Analysis of the Balance Sheet

The capital employed by the Company increased by 13.03% from Rs.5368.73 lakhs as on 31st March 2020 to Rs.6068.17 lakhs as on 31st March 2021.

The net worth of the Company increased by 1.79% from Rs.3915.64 lakhs as on 31st March 2020 to Rs.3985.54 lakhs as on 31st March 2021 owing to increase in reserves and surpluses. The

Companys equity share capital comprising

1082.42 lakhs equity shares of Rs.10 each, remained unchanged during the year under review.

Finance costs of the Company decreased by 1.66% from Rs.344.07 lakhs in 2019-20 to Rs.338.37 lakhs in 2020-21 following the repayment of liabilities and negotiation of better terms with bankers.

Applications of funds

Fixed assets (gross) of the Company increased by 4.05% from Rs.4295.19 lakhs as on 31st March 2020 to Rs.4469.18 lakhs as on 31st March 2021 owing to expansion.

Working capital management

Inventories including raw materials, work in-progress and finished goods among others increased by 24.23% from Rs.2166.19 lakhs as on 31st March 2020 to Rs.2691.04 lakhs as on 31st March 2021.

Trade receivables decreased by 8.80% from Rs.1639.48 lakhs as on 31st March 2020 to Rs.1495.19 lakhs as on 31st March 2021.

Cash and bank balances of the Company decreased by 25.11% from Rs.187.15 lakhs as on 31st March 2020 to Rs.140.16 lakhs as on 31st March 2021.

Market Presence

Your Companys market presence covers all the major cities of India. Your Company is having three manufacturing facilities (i.e. two at Jaipur, Rajasthan and one at Coimbatore, Tamilnadu), through which whole India is being catered. Company is having strong market hold throughout the India except couple of states for which also Company has made detailed marketing plans to strengthen its presence there also in the next one to two years.

Opportunities & Threats

Development of company activities in management, marketing, quality, research and branding Government bans
Low availability of quality wood & there costly manufacturing labour and high maintenance cost increases the demand of our products. Volatile raw material pricing
Changing consumer behavior Increased Competition from
Increasing awareness to protect the environment & green building revolution Local & Big Players Shortfall of skilled labor

Internal Control System and their Adequacy The Company has adequate internal control system, commensurate with the size of its operations. Adequate records and documents are maintained as required by laws. The Audit Committee reviews adequacy and effectiveness of the Companys internal control environment and monitors the implementation of audit recommendations. The Audit Committee gives valuable suggestions from time to time for improvement of the companys business processes, systems and internal controls. All efforts are being made to make the internal control systems more effective.

Human Resources/Industrial Relations

Your Company believes that human resource is its most valuable resource and it is the quality and dynamism of human resources that enables it to make a significant contribution to enhance stakeholders value.

We places Employee engagement, development and retention of talent as its highest priority, to enable achievement of organizational goals. The Company provides technical and Behaviour training skills to employees so that they are competent enough to advance in their careers. The Company always strives to maintain good work culture, ethics, values and rewarding remuneration packages to keep its staff highly motivated.

Your Companys HR philosophy is to establish and build a high performing organization, where each individual is motivated to perform to the fullest capacity to contribute to developing and achieving individual excellence and departmental objectives and continuously improve performance to realize the full potential of our personnel. Your Company continues to maintain positive work environment and constructive relationship with its employees with a continuing focus on productivity and efficiency. Your Company is focused on building a high-performance culture with a growth mindset. Developing and strengthening capabilities for all employees has remained an ongoing priority.

Your Company has over 300 employees spread across 3 manufacturing units and multiple branch locations. Our vision is to deliver world class service at optimal cost by making every employee a fully engaged and aligned team member. Employee relations during the period under review continued to be healthy, cordial and harmonious at all levels and your Company is committed to maintain good relations with the employees.