Has Lifestyle Ltd Management Discussions

Annexure [E] to Boards Report

a. Industry structure and developments:

Given the present economic challenges, your companys Board of Directors is proactively addressing the complexities of the current business landscape. The ongoing economic volatility has intensified the pressures on our industry, requiring a strategic and adaptive approach to maintain and enhance profitability. Our focus has been on developing innovative solutions that not only sustain growth but also position the Company to thrive amidst these uncertainties.

We recognize that these economic conditions demand a careful balancing act between short-term gains and long-term sustainability. To this end, the Board is committed to implementing strategies that optimize operational efficiency, reduce costs, and identify new revenue streams, all while ensuring that our core values and stakeholder interests are upheld.

As we navigate these intricate economic dynamics, our commitment to driving positive outcomes remains steadfast. The Board is continuously evaluating and refining our business practices to ensure that we are not only responding to the immediate challenges but also laying a strong foundation for future growth. We are leveraging our expertise to capitalize on emerging opportunities, particularly in areas where we can innovate and differentiate ourselves in the market.

Our unwavering dedication to overcoming challenges and seizing opportunities is central to our strategy. The Board is resolute in its mission to chart a path that not only preserves but also enhances the collective success of the Company and its valued stakeholders. We believe that by staying agile, proactive, and focused on our long-term vision, we can navigate the current economic landscape effectively and emerge stronger in the years to come.

b. Opportunities and Threats:

The FMCG sector continues to face a dynamic and rapidly changing landscape, presenting both significant opportunities and challenges that demand our strategic focus.

The ongoing shifts in consumer behavior and preferences offer us a unique opportunity to expand our product portfolio and tap into new market segments. With increasing awareness and demand for health-conscious and sustainable products, we are well-positioned to innovate and introduce offerings that align with these trends. By investing in R&D and leveraging insights from market research, we can develop products that cater to the growing demand for organic, natural, and eco-friendly options. This also includes the potential for expanding into emerging markets where there is a rising middle class and an increasing appetite for premium FMCG products.

The digital transformation sweeping across industries is another area of immense potential. By embracing e-commerce and digital marketing, we can enhance our direct-to-consumer sales channels, reach a broader audience, and personalize customer experiences. Our focus on digital innovation will also allow us to streamline supply chain operations, improve inventory management, and increase operational efficiency.

However, the FMCG industry is not without its threats, particularly in the context of a volatile economic environment. Fluctuations in raw material prices, inflationary pressures, and supply chain disruptions can significantly impact our cost structure and profit margins. The increasing cost of logistics and the challenges of maintaining a consistent supply chain in a globalized market add further complexity to our operations.

Regulatory changes and stricter compliance requirements, especially related to environmental sustainability and product safety, present another set of challenges. Navigating these regulations requires constant vigilance and adaptability, as non-compliance can lead to significant financial and reputational risks.

Moreover, the competitive landscape in the FMCG sector remains fierce, with both established players and new entrants vying for market share. The rapid pace of innovation and changing consumer preferences mean that we must continually innovate and differentiate our products to stay ahead of the competition. The FMCG industry presents a mixed bag of opportunities and threats. Our ability to capitalize on the opportunities provided by consumer trends, digital transformation, and emerging markets will be key to our growth. At the same time, we must remain agile and responsive to the threats posed by economic volatility, regulatory changes, and intense competition. By balancing these factors and maintaining a clear focus on our strategic objectives, we are confident in our ability to sustain our growth and deliver value to our stakeholders in the years to come.

c. Segment wise or product-wise performance:

Our company, a prominent player in the Food & Beverage sector, remains committed to delivering exceptional culinary experiences to our customers. Through our well-established retail chain of outlets, we offer an extensive and diverse array of products that cater to a wide range of tastes and preferences. Our product portfolio includes:

Fresh & Exotic Fruit Juices: These are packed with essential nutrients and fibers, catering to the health- conscious segment of our clientele. The variety in flavors and the quality of ingredients used in our juices have contributed significantly to their popularity.

Smoothies & Milkshakes: Our smoothies and milkshakes continue to be a customer favorite, known for their rich texture, refreshing taste, and nutritional value. These products have consistently performed well, particularly in urban markets with a growing demand for quick, yet healthy, snack options.

Sandwiches and Other Curated Food Products: Catering to the needs of culinary enthusiasts, our range of sandwiches and other carefully curated food products has been crafted to provide a satisfying and wholesome eating experience. These offerings have helped us capture a significant share of the on-the-go meal segment.

At the core of our business strategy is the ambition to establish and solidify a distinguished brand positioning as a celebrated Food & Beverage store. Throughout the past fiscal year, our efforts have been directed towards not just meeting but exceeding the expectations of our valued customers. This has involved continuous innovation in our product offerings, enhancing the in-store experience, and expanding our market presence.

In reviewing the fiscal year 2023-2024, it is crucial to assess our performance in comparison with the previous financial year, 2022-2023. This comparative analysis provides a clear picture of our growth trajectory and highlights areas where we have achieved significant advancements, as well as those that require further strategic focus.

Particulars	F. Y. 2023-2024	F. Y. 2022-2023
	(In Rupees)	(In Rupees)
Total Income	15,49,58,656	13,64,41,788
Total Expenses	(12,19,77,239)	(11,70,25,493)
Profit/Loss before Tax	3,29,81,417	1,94,16,295
Total Tax Expenses (Including deferred Tax)	52,10,161	29,40,176
Profit/Loss for the year	2,77,71,257	1,64,76,119

This fiscal analysis shows a notable increase in total income from Rs. 13.64 crores in 2022-2023 to Rs. 15.49 crores in 2023-2024, representing a strong growth trajectory. Our commitment to operational efficiency is evident in the management of total expenses, leading to a substantial increase in profit before tax, which rose from Rs. 1.94 crores in the previous year to Rs. 3.29 crores in the current fiscal year.

The tax expenses have also increased, consistent with the rise in profits, yet the overall profitability has significantly improved. The profit for the year after tax stands at Rs. 2.77 crores, a significant increase from Rs. 1.64 crores in the previous year.

This performance highlights the effectiveness of our strategies in driving growth and profitability while reinforcing our brand as a leading player in the Food & Beverage industry. As we continue to innovate and expand, we remain focused on maintaining this upward momentum and delivering sustained value to our stakeholders.

d. Outlooks:

In the current challenging market environment, adaptability and dynamism are more crucial than ever. Our company is committed to elevating the quality of our services and expanding our reach through the opening of new outlets. This strategic expansion will not only enhance the visibility of our brand, HAS Juices & More, but also reinforce our dedication to delivering excellence.

While our core business has focused on providing fresh and healthful juices to our discerning clientele, we are acutely aware of the intense competition within this industry. Nevertheless, the broader outlook for our sector remains optimistic due to the substantial growth opportunities it offers.

Looking ahead, we are driven by the conviction that a blend of robust marketing strategies, innovative product introductions, and proactive market development will significantly enhance our presence. This concerted effort will contribute to the overall growth of the health-conscious market in India and bolster our business in the coming years.

As market dynamics evolve, we remain steadfast in our mission to create lasting value for our customers, build enduring relationships, and maintain our upward trajectory. By embracing change and leveraging our strengths, we are well-positioned to capitalize on the positive industry outlook and secure a strong position in the competitive landscape.

e. Risks and concerns:

The growth trajectory of our individual business categories is intrinsically linked to the broader economic landscape. This interconnectedness implies that our progress is closely correlated with overall economic conditions. Consequently, one of the primary risks facing our operations is the potential for adverse shifts in the economic environment.

Should the economy experience a downturn or face unfavorable changes, there is a substantial risk that it could significantly impact our business. Economic fluctuations can lead to reduced consumer spending, affecting demand for our products and services. This, in turn, may influence our revenue streams and profitability.

In addition to economic risks, we must also consider other potential concerns, such as:

1. Competitive Pressure: The presence of numerous competitors in the fresh juice and wellness market could intensify, potentially affecting our market share and pricing strategies.

2. Operational Challenges: Issues related to supply chain disruptions, quality control, and maintaining consistent product standards could impact our ability to deliver on our brand promise.

3. Regulatory Changes: Any new regulations or changes in existing policies affecting health and wellness products could require adjustments in our operations and compliance processes.

4. Consumer Preferences: Shifts in consumer preferences or trends towards alternative health solutions might affect demand for our products, necessitating agility and responsiveness in our product offerings.

5. Technological Advancements: The rapid pace of technological change may necessitate ongoing investment in new technologies and digital platforms to stay competitive and meet evolving consumer expectations.

To mitigate these risks, we are committed to monitoring economic indicators, adapting our strategies proactively, and maintaining a flexible approach to navigate the complexities of the market. By staying vigilant and responsive, we aim to safeguard our business against potential threats and continue our growth trajectory.

f. Internal control systems and their adequacy:

At the core of our operations is a robust system of internal controls designed to ensure optimal efficiency, uphold compliance with internal policies, relevant laws, and regulations, safeguard valuable resources and assets, and maintain the accuracy of financial reporting. Our organizational structure is meticulously defined, supported by comprehensive policy guidelines, and reinforced by internal controls that reflect our unwavering commitment to operational excellence.

i. System of Internal Controls:

Operational Efficiency: Our internal controls are structured to enhance the efficiency of our operations by streamlining processes, reducing redundancies, and ensuring effective resource utilization.

Compliance: We maintain strict adherence to internal policies, industry regulations, and applicable laws to ensure that all aspects of our business operations are conducted within the legal and ethical framework.

Safeguarding Assets: Controls are in place to protect our physical and financial assets from loss, theft, or misuse. This includes rigorous procedures for asset management and regular audits.

Financial Reporting Accuracy: Our financial reporting processes are designed to ensure the accuracy and completeness of financial statements. This involves regular reconciliations, thorough documentation, and adherence to accounting standards.

ii. Organizational Structure and Policy Guidelines:

Defined Roles and Responsibilities: Our organizational structure clearly outlines roles and responsibilities to ensure accountability and effective oversight.

Documented Policies: We have established well-documented policy guidelines that provide a framework for operational procedures and decision-making processes.

Internal Controls: Our internal controls are embedded within our policies and practices, designed to mitigate risks and ensure adherence to established guidelines.

iii. Continuous Improvement:

Enhanced Practices: We are committed to continually enhancing our internal control systems by incorporating the latest and most effective practices. This involves regular reviews, updates, and adaptations to evolving industry standards and regulatory requirements.

Operational Efficiency: Our ongoing efforts to refine and optimize our internal controls demonstrate our dedication to maintaining the highest standards of operational efficiency and regulatory compliance.

iv. Risk Management:

Fortified Strategies: We continuously strengthen our risk management strategies to identify, assess, and address potential risks. This proactive approach helps us to mitigate challenges and adapt to the dynamic business environment.

System Refinement: Regular assessment and refinement of our internal control systems ensure that we remain resilient and well-positioned for continued success.

In summary, our internal control systems are designed to support our commitment to excellence, ensuring that we operate efficiently, comply with relevant regulations, safeguard our assets, and maintain the integrity of our financial reporting. Through continuous improvement and robust risk management, we aim to navigate the complexities of the business landscape and achieve sustained success.

g. Discussion on financial performance with respect to operational performance:

For the financial year (F.Y.) 2023-2024, our company has demonstrated substantial growth in both gross income and net profit compared to the previous financial year (F.Y. 2022-2023). The detailed financial performance is outlined below:

HAS Lifestyle Limited Annual Report 2023-2024

Particulars	F. Y. 2023-2024	F. Y. 2022-2023
Gross Income (Sales+ others)	15,49,58,656	13,64,41,788
Profit/Loss for the year	2,77,71,257	1,64,76,119

Analysis of Financial Performance:

Gross Income: The gross income for F.Y. 2023-2024 has increased to 15,49,58,656 from 13,64,41,788 in the previous year, representing a remarkable growth of 88.05%. This significant rise in gross income reflects our successful operational strategies, including enhanced market reach, successful product offerings, and effective promotional activities. The growth in income indicates a positive market reception and increased demand for our products and services. Profit for the Year: Our profit for the year has risen to 2,77,71,257, compared to 1,64,76,119 in the previous year. This increase in profit demonstrates not only higher revenue but also improved cost management and operational efficiency. The enhancement in profitability is indicative of effective strategic decisions, optimized operational processes, and a focus on maintaining cost efficiency while scaling revenue.

Operational Performance Impact:

Revenue Growth: The substantial increase in gross income signifies that our operational performance has been robust, driving higher sales and expanding our customer base. This growth aligns with our strategic goals of increasing market presence and driving sales.

Profit Margins: The notable rise in profit margins reflects our ability to manage expenses effectively while scaling up operations. This suggests that our cost control measures, operational efficiencies, and pricing strategies have contributed positively to our bottom line.

Strategic Initiatives: The financial performance is a testament to the successful implementation of strategic initiatives such as opening new outlets, enhancing product offerings, and investing in marketing. These actions have contributed to increased revenue and profitability.

In summary, the financial performance for F.Y. 2023-2024 demonstrates a significant improvement over the previous year, marked by an 88.05% increase in gross income and a substantial rise in profit. The positive results reflect our effective operational strategies, strong market performance, and commitment to enhancing overall efficiency. Moving forward, we remain focused on sustaining this growth trajectory by continuing to innovate, optimize operations, and meet the evolving needs of our customers.

h. Material developments in Human Resources / Industrial Relations front, including number of people employed:

Our company acknowledges the crucial role that Human Resources (HR) and Industrial Relations (IR) play in driving our growth and ensuring long-term success. Over the past year, we have made several significant advancements in these areas, aimed at fostering a positive work environment and cultivating a high-performance culture.

Human Resources Developments

i. Workforce Expansion:

Number of People Employed: Our workforce has grown significantly over the past year. As of the end of F.Y. 2023-2024, we have a total of 89 employees. This expansion reflects our commitment to scaling operations and supporting our growth initiatives.

ii. Talent Acquisition and Recruitment:

Recruitment Initiatives: We have enhanced our recruitment processes to attract top talent across various levels of the organization. This includes refining our hiring strategies, leveraging advanced recruitment tools, and expanding our talent pools to include diverse and highly skilled candidates.

Onboarding Programs: We have implemented comprehensive onboarding programs to ensure new hires are seamlessly integrated into the company culture and equipped with the necessary skills and knowledge to contribute effectively.

iii. Employee Development and Training:

Training Programs: A focus has been placed on continuous learning and professional development. We have introduced a range of training programs designed to enhance employees skills, leadership capabilities, and career progression. These include technical training, leadership workshops, and soft skills development.

Performance Management: Our performance management system has been refined to better align individual goals with organizational objectives. This includes regular performance reviews, constructive feedback, and tailored development plans to support career growth.

iv. Employee Engagement and Well-being:

Engagement Initiatives: We have launched various initiatives to improve employee engagement and satisfaction. These include employee feedback surveys, team-building activities, and recognition programs to celebrate achievements and foster a sense of belonging.

Well-being Programs: We have introduced well-being programs aimed at supporting employees mental and physical health. These programs include wellness workshops, health screenings, and flexible work arrangements to promote work-life balance.

Industrial Relations Developments i. Labor Relations and Compliance:

Regulatory Compliance: We have ensured compliance with labor laws and regulations through regular audits and updates to our policies and practices. This includes adhering to wage regulations, working conditions, and employee rights.

Conflict Resolution: Our approach to industrial relations emphasizes proactive conflict resolution and open communication. We have established channels for employees to voice concerns and address issues promptly and effectively.

ii. Policy Updates and Implementation:

Policy Revisions: We have reviewed and updated our HR policies to reflect current best practices and legal requirements. This includes updates to employee handbooks, code of conduct, and grievance procedures to ensure clarity and fairness.

iii. Diversity and Inclusion:

Diversity Initiatives: We are committed to fostering a diverse and inclusive workplace. Our diversity and inclusion initiatives include implementing policies to promote equal opportunity, conducting diversity training, and supporting employee resource groups.

In summary, the past year has seen significant strides in our Human Resources and Industrial Relations efforts. From expanding our workforce and enhancing employee development to strengthening labor relations and promoting diversity, we have made considerable progress in building a supportive and high-performance work environment. These developments underscore our commitment to nurturing talent, fostering positive industrial relations, and driving organizational success.

i. Performance-Based Appraisal System:

A notable achievement on the Human Resources front is the successful implementation of a performance-based appraisal system. This system is designed to recognize and reward employees contributions in alignment with their performance, ensuring a fair and transparent evaluation process. By linking rewards and career advancement to performance metrics, the system empowers our workforce to excel and motivates them to strive for continuous improvement.

Key features of the system include:

Objective Evaluation: The system utilizes clear and measurable performance indicators to provide an objective assessment of employee achievements and areas for development.

Transparent Process: Employees have access to the criteria and metrics used in their evaluations, promoting transparency and trust in the appraisal process.

Regular Feedback: Frequent feedback and performance reviews are integral to the system, enabling employees to understand their progress and make adjustments throughout the year.

Recognition and Rewards: High performers are recognized and rewarded through various incentives, including bonuses, promotions, and professional development opportunities.

Overall, the performance-based appraisal system is a cornerstone of our commitment to fostering a high-performance culture, driving employee engagement, and achieving organizational goals.

j. Employee Empowerment and Development:

Weve continued our focus on employee empowerment and development, fostering a learning environment where skill enhancement is actively encouraged. Our commitment to employee growth is demonstrated through a variety of initiatives designed to equip our workforce with the tools and knowledge needed to excel in their roles. Key aspects of our approach include:

Comprehensive Training Programs: We offer a range of training initiatives and workshops tailored to various skill levels and departmental needs. These programs are aimed at enhancing both technical and soft skills.

Skill-Building Opportunities: Employees are encouraged to participate in skill-building activities that align with their career aspirations and organizational goals. This includes access to online courses, seminars, and industry conferences.

Mentorship and Coaching: Our mentorship and coaching programs provide employees with guidance and support from experienced leaders within the company, helping them navigate their career paths and achieve their professional objectives.

Continuous Learning Culture: We promote a culture of continuous learning by providing resources and tools that facilitate ongoing personal and professional development. Employees are encouraged to pursue learning opportunities that drive innovation and enhance job performance.

By investing in our employees growth and development, we aim to build a more skilled, motivated, and engaged workforce, ultimately contributing to the overall success and competitiveness of our organization.

k. Employee Well-Being:

The well-being of our employees remains a top priority. We are dedicated to creating a supportive work environment where employees can thrive both personally and professionally. By prioritizing employee well-being, we aim to enhance job satisfaction, reduce stress, and create a positive and productive work environment. Our commitment to supporting our employees health and happiness is integral to our organizational success.

l. Number of People Employed:

As of the current fiscal year, our workforce has grown to 89 employees. This expansion reflects our commitment to harnessing the talents of skilled individuals to drive our companys progress and excellence.

Through these strategic developments, we aim to cultivate an engaged, motivated, and skilled workforce that not only fuels our current success but also propels us towards a future of sustained growth and innovation. By continually investing in our people, we are building a strong foundation for ongoing achievement and long-term success.

By order of the Board
For Has Lifestyle Limited
Sd/-	Sd/-
Hemang Bhatt	Niru Kanodia
Managing Director	Director
(DIN: 01353668)	(DIN: 02651444)
Place: Mumbai
Date: 28.08.2024