Dhunseri Ventures Ltd Management Discussions.

Management Discussion and Analysis Report

Pursuant to Schedule V of the Listing Regulations, the Management Discussion and Analysis Report is given below:

Industry Structure and Developments

The Company is carrying on the business of treasury operations in shares and securities of other bodies corporate.

The business strategy is largely dependent on the economic environment of the Country. The Management continues to review the business strategy from time to time depending on the changes in Government policies.

The Company is also engaged in F&B sector through its foreign subsidiary, in the name of Twelve Cupcakes Pte Ltd. in Singapore. Twelve Cupcakes Pte Ltd. is engaged in the business of manufacture and retail of confectionery in Singapore.

Opportunities and Threats

The management believes that Government of Indias efforts to improve economic growth in the Country by providing opportunities for start up and infrastructure development is giving hopes to entrepreneurs for exploring new opportunities. The Company is also looking to tap such opportunity at the right moment.

Segment wise performance

The Company operates under the segment "Treasury Operations".

Outlook & Risk and Concern

The Management has to regularly monitor the changing market conditions and the trends. Further, any slowdown of the economic growth or volatility in financial market could also adversely affect the Companys performance.

Internal Control System & their adequacy

The Company has instituted a system of checks and balances to

ensure that all assets are safeguarded and adequately protected against the chances of occurrences of any loss or damage whether foreseen or unforeseen. Internal Control Systems in the Company continues to be reviewed through Internal Audit. The internal control system is commensurate with the size and nature of the organisation. The Company regularly carries out checks to ensure that the internal controls are working satisfactorily. The internal control systems are monitored and reviewed on a regular basis by the Executive Chairman, Managing Director and Executive Director (Finance) & CFO. A seamless system has been put in place to ensure that any major discrepancies or lapse in controls are reported to the Audit Committee and Board of Directors of the Company and action is taken to control any breach.

Discussion on financial performance with respect to operational performance

This section is covered in the Boards Report under the section of financial results and performance.

Material developments in Human Resources / Industrial Relations front including number of people employed

The total employee strength as on March 31, 2020 stood at 17 as compared to 15 as on March 31, 2019.

Medium-term and long-term strategy

The Company is in the process of identifying business opportunities. Your Company is exploring new projects in Chemical and Polyester field and is in discussion with potential technology partners and tie-up of raw materials. Once the project takes a final shape, the same would be communicated to the shareholders.

Significant changes in Key Financial Ratios

In accordance with SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018, the significant changes are detailed below:

Key Financial Ratios FY 2019-20 FY 2018-19 Variance (%) Reason
Debtors Turnover Ratio - - - Since there was no trading in the last year, there are no outstanding debtors on year end.
Inventory Turnover Ratio - 17.79 (100) The Company is not into trading business, and there was no trading in last year, it resulted into Zero purchase during the year leading to Nil Cost of Goods Sold and Zero Closing Inventory.
Interest Coverage Ratio 4.03 3.38 19.27 Higher finance costs due to bank loan taken and repayment of installments during the current financial year.
Current Ratio 20.53 31.21 (34.21) Reduction in current liabilities due to payment of outstanding dues to creditors and repayment of term loan installments as applicable.
Debt Equity Ratio 0.07 0.08 (15.10) Reduction in liabilities due to payment of outstanding dues to creditors and repayment of term loan installments as applicable.
Operating Profit Margin (%) 26.77 6.74 297.36 Increase in other income in FY 2019-20 as compared to FY 2018-19.
Net Profit Margin (%) 28.62 6.38 348.86 Increase in other income in FY 2019-20 as compared to FY 2018-19.

Change in return on Net Worth

The return on Net worth for the FY 2019-20 is 2.12% and for FY 2018-19 is 5.81% resulting in a decrease in the return on net worth by (63.59%) due to decrease in the profit of the Company in FY 2019-20 as compared to FY 2018-19.

Cautionary Statement

Statements in this management discussion and analysis

describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. Actual results may difi^er substantially or materially from those expressed or implied. Important developments that could aff^ect the Companys operations include a downtrend in the industry-global or domestic or both, significant changes in political and economic environment in India, applicable statues, litigations etc.