innovassynth investments ltd Management discussions

1. Macro-Economic Environment:

The financial year 2022 began with the impact from the COVID second wave creating havoc for India and the world, ushering in newer challenges across sectors.

Inflation remains the biggest concern both due to its impact on demand and due to its impact on margins and profitability. Supply concerns and surge in input costs can force India Incs hand on prices, which would impact affordability and therefore demand which would not be ideal as private consumption accounts for around 60% of the gross domestic product. Another area of concern which India Inc has been highlighting is a rural slowdown in the rural economy. Corporates expect rural demand to remain soft as higher prices have altered consumer spending and preferences. FMCG companies say that inflationary pressures have disrupted demand in both rural and urban areas, with rural demand being significantly weak.

The RBI introduced its Resolution Framework-2.0 in May 2021 during the outbreak of the deadly second wave which gave impacted and vulnerable borrowers breathing space to meet their repayment obligations. Simultaneously, the RBI maintained adequate liquidity to support its accommodative stance throughout the year. It resorted to rebalancing liquidity on a dynamic basis without compromising systemic liquidity. Moreover, the RBI kept its key policy rates including repo rate, reverse repo rate and bank rate unchanged at 4%, 3.35%, and 4.25% respectively throughout FY2022.

2. Industry Structure and Developments:

The Company is in the investment business and your company holds 31.79% in Innovassynth Technologies (India) Limited.

3. Opportunities and Threats:

Your Company has invested in Innovassynth Technologies (India) Limited-(ITIL) which is one of the internationally recognized manufacturers and develops nucleosides and amides. Even in this pandemic situation, Innovassynth Technologies (India) Ltd has done exceptionally well. Your Company has not diversified its investment in other entities except ITIL hence the companys fortune tide with the performance of Innovassynth Technologies (India) Limited.

4. Outlook:

Performance of the Innovassynth Technologies (India) Limited is the key factor for the sustainability of the company, your company has an optimistic approach towards the performance of ITIL.

5. Risk & Concerns:

Non-Diversification of the investments other than ITIL is one of the concerns for the Company.

6. Internal Control Systems and Their Adequacy:

Internal control of the Company is monitored vide circulation monthly compliance sheets, the same is discussed, studied, forecasted and proper plan of action is drawn accordingly.

7. Developments in Human Resources:

During the year, Company has roped in Mr. Sandesh Mhadalkar as Non-Executive Independent Director who has rich experience of working in Banking and Finance Industry.

8. Significant Changes in Key Financial Ratio:

During the period, Only Current Ratio has changed due to increase in borrowings asthe compared to previous Financial Year.

9. Return on Net Worth:

During the period, there has been no significant changes in Return on Net worth as compared to the immediately previous financial years.

	For and on Behalf of the Board of Directors of
	Innovassynth Investments Limited
	Sandesh Mhadalkar	Dr Hardik Joshipura
	Director	Managing Director
Mumbai, 30th May 2022	(DIN: 08929791)	(DIN: 09392511)