himalaya granites ltd share price Management discussions

INDUSTRY STRUCTURE AND DEVELOPMENT

During the year under review till October 31, 2021, your Company continued to let out part of its factory sheds, situated at Tindivanam, Tamil Nadu. Further, the Company is in process of setting-up a greenfield project for manufacturing of Plywood and allied products, having a proposed capacity of 18.9 million square meter per annum, at Tindivanam, Tamil Nadu, with an investment of approximately ^ 125 Crore.

OPPORTUNITIES AND THREATS

Opportunities: The Company is setting up a green field project for manufacturing of plywood and allied products. Indias plywood sector is at an inflection point, hence there is a huge opportunity available for the Company in the plywood industry. The Indian retail consumption economy is shifting from the unorganised to the organised sector following GST introduction, home sector expansion and population growth which is expected to put your Company in the right place at the right time to capitalise on this sectorial opportunity.

Threats: The competition from the unorganised sector might pose a threat to the Company by selling their products at a cheaper price.

SEGMENT WISE PERFORMANCE

The Company currently operates in only one segment.

OUTLOOK

During the year under review, the Company has announced to set-up a Greenfield Project for the manufacturing of plywood and allied products, having a proposed capacity of 18.9 million square meter per annum, at Tindivanam, Tamil Nadu, with an investment of approximately ^ 125 Crore.

RISK AND CONCERN

Since the Company does not have any outstanding borrowing as on March 31, 2022 and it was operating in a very low scale renting activities till October 31, 2021, hence there is no major risk associated with its operations.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has an adequate internal control system. The Audit Committee headed by Non-Executive Independent Director periodically reviews the audit observation(s) and the corrective remedial measures taken in this respect, whenever required.

FINANCIAL PERFORMANCE

During the financial year 2021-22, your Company posted total Income of the Company of 1,39,51,690/- in the financial year 2021-22 as against 64,35,813/- in the financial year 2020-21. The Company reported a profit of 2,65,123/- (before other comprehensive income) during the financial year 2021-22 as against post tax loss of 87,499/- (before other comprehensive income) in the financial year 2020-21.

HUMAN RESOURCES DEVELOPMENT

Your Company recognizes its people as its greatest asset and constantly strive to create an ecosystem of continuous learning, collaboration, and work-life balance. The employee-friendly policies of the Company, ensure safe and secured environment for employees at workplace. Your Company constantly strive to upgrade the skills of employees and give them the edge to compete in the dynamic market and become future ready.

There were 12 (Twelve) permanent employees on the payroll of Company including Managing Director & CEO, as on March 31, 2022.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

Particulars	2021-22	2020-21
Current Ratio	2.32	10.20
Operating profit margin (%)	9.48	63.74
Net profit margin (%)	7.43	(1.48)
Return on Net worth (%)	1.55	(0.51)

Note :

1. The Return on net worth has increased in financial year 2021-22 as compared to financial year 2020-21, as there was significant increase in the Other Income of the Company for the financial year 2021-22 due to Profit on Sale of Assets and Miscellaneous Income.

2. There has been significant change in the Net Profit margin (%), as the Company has earned profits during the financial year 2021-22 as compared to losses in the financial year 2020-21.

3. There has been significant change in the Current Rafio due to increase in liabilities during the financial year 2021-22 as compared to the financial year 2020-21.

4. There has been significant change in Operating Profit Margin (%) due to decrease in Rental income during the financial year 2021-22 as compared to the financial year 2020-21.

5. There are neither any debtors (towards credit sales) nor any Inventory in the Company as on March 31, 2022, hence Debtors Turnover ratio and Inventory Turnover ratio have not been disclosed in this report.

6. Interest Coverage ratio and Debt Equity ratio have not been disclosed in this report, as the Company has no debt as on March 31, 2022.

CAUTIONARY STATEMENT

Certain statements in the Directors report and management discussion and analysis reflecting the Companys projections, estimates, objectives and expectations may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such projections, estimates, objectives and expectations due to economic and climatic conditions effecting government regulations, policies, taxations and other factors on which the Company does not have any direct control.