Dhunseri Ventures Ltd Management Discussions

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 and commodity trading including trading of PET Resins.

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.

The Company also has a subsidiary namely DVL USA INC. in United States (U.S) incorporated for exploration and expansion of the Cupcake Business in the U.S. Market.

Opportunities and Threats

The management believes that Government of Indias efforts to improve economic growth in the Country by providing opportunities for startup 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" and "Trading activities"

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 the 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 Senior Officials including KMPs. 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, 2024 stood at 24.

Medium-term and long-term strategy

Your Companys wholly owned subsidiary "Dhunseri Poly Films Pvt. Ltd." (DPFPL) had commenced its commercial production of BOPET Line I in Panagarh, West Bengal on 13th December, 2023. It is also in the process of setting up State of the Art - 10.4 Meter 2 Biaxally Oriented Polypropylene (BOPP) production in The Union Territory of Jammu & Kashmir. Consent to Establish is received for the project and activities on the ground is expected to start from July/August, 2024. The first BOPP line is expected to commence production from the FY 2025-26. While second line is expected to start operation from 2026-27.

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 2023-24	FY 2022-23	Variance (%)	Reason if change is 25% or more
Current Ratio	3.62	4.95	(26.87%)	Decrease due to increase in trade payable and other payables.
Operating profit Margin(%)	0.61	1.00	(39.19%)	High Operating Cost and Lower Margin in Trading Operations
Net Profit Margin(%)	0.48	0.77	(37.66%)	High operating Cost and Lower Margin Trading Operations

Note 1: All numbers are based on Standalone Financial Statements.

Note 2: During the F.Y 2022-23, Debtors Turnover Ratio, Inventory Turnover Ratio were Nil.

Note 3: Debtors Turnover Ratio, Inventory Turnover Ratio, Debt Equity Ratio and Interest Coverage Ratio for the Financial Year 2023-24 does not reflect a change of 25% or more compared to Financial Year 2022-23.

Further, the Key Analytical ratios and their definitions are given in Note 40 of the Standalone Financial Statements.

Change in return on Net Worth

The return on Net worth for the FY 2023-24 is 9.43% and for FY 2022-23 is 8.40% resulting in an increase in the Return on Net Worth by 12.17% due to increase in net income during the year.

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 differ substantially or materially from those expressed or implied. Important developments that could affect the Companys operations includes a downtrend in the industry- global or domestic or both, significant changes in political and economic environment in India, applicable statues, litigations etc.