Dhunseri Ventures Ltd Management Discussions.

Pursuant to ScheduleVoftheListing Management Discussion and Analysis Regulations,the Report is given below:

Industry Structure and Developments

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

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 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 slowdown of the conditions market could also economicgrowth or volatility adversely affect the Companys performance.

Internal Control System & their adequacy

The Company has instituted a system of checks and balances 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 sectionis 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, 2021 stood at 20 as compared to 17 as on March 31, 2020.

Medium-term and long-term strategy

For the implementation of the new project of manufacturing of

Polyester Film (BOPET), your Company has incorporated a new

Wholly Owned Subsidiary named "Dhunseri Poly Films Pvt. Ltd." with effect from November 28, 2020. The project is likely to start its production from first quarter of 2023.

Significant changes in Key Financial Ratios

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

Key Financial Ratios FY 2020-21 FY 2019-20 Variance (%) Reason
Interest Coverage Ratio 37.88 4.03 839.40% Increased primarily on account of increase in profit and lower finance costs due to repayment of installments during the current financial year. in liabilities due to payment of Reduction outstanding dues to creditors and repayment of term loan installments as applicable.
Debt Equity Ratio 0.04 0.07 (38.83%)
Operating Profit Margin (%) 85.91 26.77 220.87% Increase in revenue from operations in FY 2020- 21 as compared to FY 2019-20.
Net Profit Margin (%) 73.89 28.62 158.16% Increase in revenue from operations in FY 2020- 21 as compared to FY 2019-20.

Note: Debtors Turnover Ratio, InventoryTurnoverRatioandCurrent Ratio for the Financial Year 2020-21 does not reflect a change of 25% or more compared to Financial Year 2019-20.

Change in return on Net Worth

The return on Net worth for the FY 2020-21 is 11.42% and for FY 2019-20 is 2.12% resulting in an increase in the return on net worth by 439.71% due to increase in the profit of the Company in

FY 2020-21 as compared to FY 2019-20.

Cautionary Statement

Statements in this management discussion and analysis describing the Companys objectives, projections,estimates and expectations may be forward looking statements within meaning of applicable laws and regulations. Actual results may differ substantially or materially from those expressed or Important developments that could affect the Companys operations include a downtrend in the industry-global or domestic or both, significant changes in political and environment in India, applicable statues, litigations etc.