Foce India Management Discussions



India entered FY2023 amidst uncertain macroeconomic environment. The threat posed by the Omicron coronavirus subtype quickly subsided but at the same time geopolitical conflicts arose between Russia and Ukraine. In addition to that, Chinas decision to continue lockdown in its cities due to the increasing number of Covid cases had a detrimental impact on the global supply chain. This led to significant increase in oil and food prices which in turn lead to rise in inflation across the global economies.

Indias GDP experienced double-digit growth of 13.1% in Q1FY2023 partially due to the base effect. However, growth slowed down in Q2FY2023 and Q3FY2023, reaching 6.2% and 4.5% respectively, due to high inflation and weakening demand. In Q4FY2023, growth bounced back to 6.1%, pushing the overall growth rate to 7.2% for FY2023. India continues to be one of the fastest growing major economies globally in FY2023.

The financial year 2022-23 has been a good year for the overall watch industry where the industry recovered well from the impact of COVID-19 and low consumer demand. The consumer returned back to the retail markets and the increasing demand was visible across the channels.

The overall watch market size is expected to grow well with the increasing share of fashion and luxury segment. The smart wearable product market is growing at an exponential rate. The E-commerce channel is expected to have a larger pie in the overall channel build-up.


The Indian watch industry has strong growth potential which is substantiated by the following factors:

1. The macro-economic factors including growth outlook of Indian economy, inflation coming under control, governments boost for increasing demand and per capita income, Indian demography, urbanization, and increasing fashion spends of Indian population, are all assuring long term growth of the country. This will boost overall consumer demand and specifically demand for more discretionary goods including watches.

2. Traditional analogue watch segment has ample room to grow as majority of the Indian consumers still like to wear them compared with smart wearables.

3. New age digital sales channels such as e-commerce, online and omni channels are growing the overall watch market size exponentially.

4. With the innovative marketing and consumer engagement initiatives, smart wearables, watches and bands have been growing at an exponential pace and are expected to further grow at a fast pace and will increase the overall size of watch market.


• Execution risk

• Short term economic slowdown impacting investor sentiments and business activities

• Slowdown in global liquidity flows

• Increased intensity of competition from local and global players.


The financial market industry is mainly dependent on economic growth of country and financial market is also further affected by number of issues arising out of International policies of foreign government as well any change in international business environment. The industrial growth is very sensitive which is dependent on many factors which may be social, financial, economic or political and also natural climatic conditions in the country.

The Company has exposure to the following risks arising from financial instruments:

• Credit risk

• Liquidity risk

• Market risk

• Interest rate risk

• Legal & regulatory risk

• Economic and Political risks


"Foce India Limited", formerly known as Heighten Trading Company Private Limited has been at the forefront of Indian Horology Industry for the last three decades. Started as a small retail shop in 1980s in Mumbai, the company today manufactures and imports wrist watches under various brand names and has become one of the front runners in the midrange segment with distribution of many retail stores across the country with an imposing list clientele in corporate segment.

The Company expects to grow the sales of premium and luxury watches in the top Indian cities and also to establish physical stores in high-growth Indian cities. The Companys leadership and management team helps them make informed judgments on significant challenges and sustain business growth. Over the years, it has expanded its market presence, driving revenues and profitability consistently.


Ratios 2022-23 2021-22
Debtors Turnover 3.43 8.27
Inventory Turnover 6.98 63.66
Interest Coverage Ratio



Current Ratio 26.76 14.38
Debt Equity Ratio



Return on Equity 0.53 11.08
Net Profit 1.27 2.59


The Company maintains adequate and effective Internal Control Systems commensurate with its size and complexity. It believes that these systems provide, among other things, a reasonable assurance that transactions are executed with management authorization. It also ensures that they are recorded in all material respect to permit preparation of financial statements in conformity with established accounting principles. An independent Internal Audit function is an important element of Companys Internal Control System. This is supplemented through an extensive internal audit programme and periodic review by the management and the Audit Committee of Board.


The Company is conscious of the importance of environmentally clean and safe operations. The Companys policy requires the conduct of all operations in such manner so as to ensure safety of all concerned, compliance of statutory requirements for environment protection and conservation of natural resources to the extent possible.


Risk is an integral part of the business process. To enhance the risk management process, the company has mapped the risks. Risk arising in achieving business objectives are identified and prioritized. Risk mitigation plans are established and executed as and when need arises. Periodical reviews are carried out to assess the risk levels.


Human resources development, in all its aspect like training in safety and social values is under constant focus of the management. Relations between management and the employees at all levels remained healthy and cordial throughout the year. The management and employees are dedicated to achieve the corporate objective and the targets set before the Company.


Statements in this report on Management Discussion and Analysis, describing the Companys objectives, projections, estimates, expectations, or predictions may be forward looking, considering the applicable laws and regulations. These statements are based on certain assumptions and expectation of future events. Actual results could, however, differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include finished goods prices, raw materials costs and availability, global and domestic demand supply conditions, fluctuations in exchange rates, changes in Government regulations and tax structure, economic developments within India. The Company assumes no responsibility in respect of the forward-looking statements herein, which may undergo changes in future based on subsequent developments, information, or events.

For and on behalf of the Board

M/s Foce India Limited

Sd/- Sd/-
Manoj Sitaram Agarwal Utkarsh Agarwal
Managing Director Director
DIN: 00159601 DIN: 08021945
Date: 5th, September, 2023
Place: Mumbai