disha resources ltd share price Management discussions

Your Directors have pleasure in presenting the Management Discussion and Analysis Report for the year ended on March 31,2022.

OVERVIEW OF THE ECONOMY/INDIAN ECONOMY:

The Indian economy in fiscal year 2021-22 rebounded strongly and surpassed pre-COVID levels during the current financial year. Indian economy estimated to grow by 9.2 percent in real terms in 2021-22 (as per first advanced estimates) subsequent to a contraction of 7.3 percent in 2020-21. Economic impact of "second wave" was much smaller than that during the full lockdown phase in 2020-21, though health impact was more severe. With revival of economy, employment indicators bounced back to pre-pandemic levels during last quarter of 2020-21. On demand side, consumption estimated to grow by 7.0 percent, Gross Fixed Capital Formation (GFCF) by 15 percent, exports by 16.5 percent and imports by 29.4 percent in 2021-22.

The growth in GDP during 2021-22 is estimated at 8.05% as compared to (-) 8% in 2020-21 as per second advance estimates released by the Central Government. The Indian economy expanded 4.1% year-on-year in the first three months of 2022, slightly higher than market forecasts of 4%, but the least in a year, due to rising Omicron infections, elevated energy prices, and ongoing supply chain constraints. Indias economy expanded 5.4 percent year-on-year in the last quarter of 2021, following an upwardly revised 8.5 percent advance in the previous period and below market expectations of 6 percent.

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

As you are aware, the Company - Disha Resources Limited was originally incorporated on 06^th March, 1995 with the Main Object as mentioned in the Memorandum of Association of the Company which reflects that the Company is carrying on business of Real estate and Financing Activity.

Before couple of years, the Company has identified and altered the main object clauses of MOA so as to include the trading of jewelry made of or containing gold, silver, diamond, platinumor any other precious and semi-precious metals, Logistic Services, Trading of waste paper, recycling of paper, trading of textile, coal and coal related products, convertors, processors of all kinds and classes of all kinds of commodities.

The trading activities have been bullish in the later part of the year due to increase sentiments amongst the Indian population and the withdrawal of covid impact.

The Directors are hopeful to continue to exciting journey to delight the customer and set bench marks through world class products and a PAN India footprint.

2. OPPORTUNITIES & THREATS:

The areas of operations of the Company are largely challenged by the players from the unorganized players having lesser stakes into the Business. The after effects of Covid-19 restrictions and the impact of any stringent containment measures on businesses are the key threats to the nascent demand recovery. They could impact the credit quality outlook adversely.

However, with the strong team, the Company is poised to meet all the challenges and the Board is confident to meet all the challenges to which the Company may be exposed.

3. SEGMENT-WISE PERFORMANCE:

The Company has identified two operating segments i.e trading in shares and trading in others. The annual accounts statements contains the details of the same. The revenue of Company from trading of metal was almost 5 times that of shares sales and almost double to the sales of cloth. The Company and your Directors are rigorously working to increase the geographical presence so as to increase the topline of the Company.

4. OUTLOOK:

With the geo-political conditions prevalent across the world are challenging. The crude is playing a vital role for the growth and develop of the commodities and in turn may have impact of slowdown in the coming year.

5. RISK & CONCERNS:

The Company is exposed to specific risks that are particular to its business, including interest rate volatility, economic cycle, market risk and credit risk. The management continuously assesses the risks and monitors the business and risk management policies to minimize the risk.

6. INTERNAL CONTROL SYSTEMS & THEIR ADEQUEACY:

The Company has an Internal Control System, commensurate with size, scale and complexity of its operations. The internal financial controls are adequate and are operating effectively so as to ensure orderly and efficient conduct of business operations. The Company has appointed M/S SNDK & ASSOCIATES LLP, Chartered Accountants, as internal auditors of the Company. The Audit Committee in consultation with the internal auditors formulates the scope, functioning, periodicity and methodology for conducting the internal audit.

The internal auditors carry out audit, covering inter-alia, monitoring and evaluating the efficacy and adequacy of internal control systems in the Company, its compliance with operating systems, accounting procedures and policies at all locations and submit their periodical internal audit reports to the Audit Committee. Based on the internal audit report and review by the Audit Committee, process owners undertake necessary actions in their respective areas. The internal auditors have expressed that the internal control system in the Company is robust and effective. The Board has also put in place requisite legal compliance framework to ensure compliance of all the applicable laws and that such systems are adequate and operating effectively.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

During the year, the Company has recorded a turnover of Rs. 1,48,03,280/- as compared to Rs. 3,61,20,330/- in the previous year. The Company has made net profit of Rs.20,28,043/-as compared to net profit of Rs.43,85,679 /- in the previous year after providing depreciation, tax.

8. HUMAN RESOURCE DEVELOPMENT:

We are strong believers of developing and retaining talent by treating our employees with dignity, honesty and respect. We have a continued philosophy of hiring high performance individuals. To accomplish our goals, we are always on the look-out for talented, creative, ambitious individuals, driven by a passion to excel. We hire some of the most talented and experienced individuals in their respective fields. Being a performance driven company, we have introduced several performance-driven tools. We are driven by principles of empowerment as we believe in inculcating a winning attitude among our employees by encouraging learning, self-development and by building effective leadership. A well-structured career path is created for each employee within the organization with a progression and succession plan made for each of them. As in the past, the Company has enjoyed cordial relations with the employees at all levels. The Company continues to run an in-house training program held at regular intervals and aimed at updating their knowledge about issues.

7. CAUTIONERY STATEMENT:

This document contains statements about expected future events, financial and operating results of Disha Resources Limited, which are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the assumptions, predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward-looking statements. Accordingly, this document is subject to the disclaimer and qualified in its entirely by the assumptions, qualifications and risk factors referred to in the managements discussion and analysis of Disha Resources Limited Annual Report, 2021-22.

10. DISCLOSURE OF ACCOUNTING TREATMENT:

The company does follow all the treatments in the Financial Statements as per the prescribed Accounting Standards.

11. KEY FINANCIAL RATIOS:

Sr. No.	Ratios	2022	2021	Variance
1.	Inventory Turnover Ratio(times) $	28.04	20.21	38.76%
2.	Return on Equity Ratio (%) @	2.32%	5.21%	(55.45%)
3.	Trade Receivables Turnover Ratio (times) &	0.94	2.65	(64.37%)
4.	Trade Payables Turnover Ratio (times) *	1.01	2.00	(49.66%)
5.	Net Capital Turnover Ratio (times)	3.45	4.38	(21.20%)
6.	Return on Capital Employed (%) **	1.74%	3.96%	(56.05%)
7.	Return on Investments (%) ***	2.32%	5.21%	(55.45%)

@ On Account of Reduced Operational Activities $ Reduction in Inventory Holding Period & Increase in Recovery Period Days compared to last year.

* On Account of Reduction in Operational Activities and Higher Trade Payables Outstanding as at the beginning of the year.

** Lower Operational Activities resulted into lower operational profit, earning before tax and finance cost and ultimately return on capital employed.

*** Lower Operational Activities resulted into lower operational profit and ultimately return on investments.

	FOR AND ON BEHALF THE BOARD OF DIRECTORS
	DISHA RESOURCES LIMITED
Place : Ahmedabad	KRISHNA AWTAR KABRA
Date : 13.08.2022	CHAIRMAN & MANAGING DIRECTOR DIN:00650817