Jash Dealmark Ltd Management Discussions.

Fast moving consumer goods (FMCG) is the 4th largest sector in the Indian economy. There are three main segments in the sector – food and beverages which accounts for 19 per cent of the sector, healthcare which accounts for 31 per cent and household and personal care which accounts for the remaining 50 per cent. The FMCG sector has grown from US$ 31.6 billion in 2011 to US$ 52.75 billion in 2017-18. The sector is further expected to grow at a Compound Annual Growth Rate (CAGR) of 27.86 per cent to reach US$ 103.7 billion by 2020.FMCG revenue grew 14.8 per cent during October-December 2017. FMCG sector is expected to register net revenue growth of 11.8 per cent in Q4 March 2018. Indian FMCG sector is forecasted to report revenue growth of around 11-12 per cent in FY19 from 8 per cent in FY18. FMCGs urban segment is expected to have a steady revenue growth at 8 per cent in FY19 and the rural segment is forecasted to contribute 15-16 per cent of total income in FY19.* Accounting for a revenue share of around 45 per cent, rural segment is a large contributor to the overall revenue generated by the FMCG sector in India. Demand for quality goods and services have been going up in rural areas of India, on the back of improved distribution channels of manufacturing and FMCG companies. Urban segment accounted for a revenue share of 55 per cent in the overall revenues recorded by FMCG sector in India. FMCG Companies are looking to invest in energy efficient plants to benefit the society and lower costs in the long term. Patanjali will spend US$ 743.72 million in various food parks in Maharashtra, Madhya Pradesh, Assam, Andhra Pradesh and Uttar Pradesh. Dabur is planning to invest Rs 250-300 crore (US$ 38.79-46.55 million) in FY19 for capacity expansion and is also looking for acquisitions in the domestic market. Growing awareness, easier access, and changing lifestyles are the key growth drivers for the consumer market. The focus on agriculture, MSMEs, education, healthcare, infrastructure and employment under the Union Budget 2018-19 is expected to directly impact the FMCG sector. These initiatives are expected to increase the disposable income in the hands of the common people, especially in the rural area, which will be beneficial for the sector.

(Source:-https://www.ibef.org/industry/fmcg-presentation)

Indias Foreign Trade Policy also known as Export Import Policy (EXIM) in general, aims at developing export potential, improving export performance, encouraging foreign trade and creating favorable balance of payments position. Foreign Trade Policy is prepared and announced by the Central Government (Ministry of Commerce). Foreign Trade Policy or EXIM Policy is a set of guidelines and instructions established by the DGFT (Directorate General of Foreign Trade) in matters related to the import and export of goods in India.

Indian EXIM Policy contains various policy related decisions taken by the government in the sphere of Foreign Trade, i.e., with respect to imports and exports from the country and more especially export promotion measures, policies and procedures related thereto.

Some highlights of the present Foreign Trade Policy 2015-20:-

India to be made a significant participant in world trade by 2020

Commerce Minister announced two new schemes in Foreign Trade Policy 2015-2020Two New Schemes announced in FTP Are MEIS & SEIS. FTP 2015-20 introduces two new schemes, namely "Merchandise Exports from India Scheme (MEIS)" and "Services Exports from India Scheme (SEIS)". These schemes (MEIS and SEIS) replace multiple schemes earlier in place, each with different conditions for eligibility and usage.

Merchandize exports from India (MEIS) to promote specific services for specific Markets Foreign Trade Policy

For services, all schemes have been replaced by a Services Export from India Scheme(SEIS), which will benefit all services exporters in India.

FTP would reduce export obligations by 25% and give boost to domestic manufacturing

Incentives (MEIS & SEIS) to be available for SEZs also. FTP benefits from both MEIS & SEIS will be extended to units located in SEZs. – Both MEIS and SEIS firms and service providers can now get subsidized office spaces in SEZ (Special Economic Zones), along with other benefits. With a view to boost the Special Economic Zones, Government has decided to extend both the incentive schemes for export of goods and services to units in SEZs. e-Commerce of handicrafts, handlooms, books etc., eligible for benefits of MEIS. e-Commerce exports up to Rs.25000 per consignment will get SFIS benefits. e-Commerce Exports Eligible For Services Exports From India Scheme. – As part of Digital India vision, mobile apps would be created to ease filing of taxes and stamp duty, automatic money transfer using Internet Banking have been proposed. > Online procedure to upload digitally signed document by Chartered Accountant/Company Secretary/Cost Accountant to be developed.

Agricultural and village industry products to be supported across the globe at rates of 3% and 5% under MEIS. Higher level of support to be provided to processed and packaged agricultural and food items under MEIS.

Industrial products to be supported in major markets at rates ranging from 2% to 3%.

Branding campaigns planned to promote exports in sectors where India has traditional Strength.

Business services, hotel and restaurants to get rewards scrips under SEIS at 3% and other specified services at 5%.

Duty credit scrips to be freely transferable and usable for payment of customs duty, excise duty and service tax.

Debits against scrips would be eligible for CENVAT credit or drawback also.

Nomenclature of Export House, Star Export House, Trading House, Premier Trading House certificate changed to 1,2,3,4,5 Star Export House. – Some major overhauling of nomenclature and naming have been done. For instance, Export House, Star Export House, Trading House, Star Trading House, Premier Trading House certificate has been changed to One, Two, Three, Four, Five Star Export House. The allocation of the status will now be based on US dollars, instead of Indian Rupees

The criteria for export performance for recognition of status holder have been changed from Rupees to US dollar earnings. – A new position called ‘Status Holder have been formulated, which will recognize and reward those entrepreneurs who have helped India to become a major export player. All IT and ITeS firms, Outsourcing companies and KPOs can rejoice.

Manufacturers who are also status holders will be enabled to self-certify their manufactured goods as originating from India. – Tax and duty on Indian manufacturers have been reduced, to boost Make in India vision

Reduced Export Obligation (EO) (75%) for domestic procurement under EPCG scheme.

Inter-ministerial consultations to be held online for issue of various licences.

No need to repeatedly submit physical copies of documents available on Exporter Importer Profile.

Validity period of SCOMET export authorisation extended from present 12 months to 24 months.

(Source:- https://www.indiainfoline.com/article/news-top-story/economics-for-everyone-india%E2%80%99s-foreign-trade-policy-ftp-exim-115052500326_1.html)

OUR BUSINESS:-

We are a leading import export solution provider. Our company started the business of trading of exim licences. Since July 2014 onwards company were also started to import the various goods. During the financial year 2014-15, we have started trading and supply of industrial and engineering plastic Components as per customer requirement. And during the financial year 2015-16, our company has started trading of various FMCG products within the country. Our products mainly cater to three business segments viz trading of exim licences trading and import of industrial and engineering plastic Components

FMCG products

We are leading trader of EXIM SCRIPS all over India.

We are one of the leading trader and importer of Plastic Moulded Products .The aim of our organization is to enhance customer satisfaction by providing consistent good quality products. We can provide the best in any kind of Moulding cum deep moulding and Blister packing.

PLASTIC PRODUCTS

List of Engineering Plastic Products: Plastic Beads PS Glass Beads Plastic Beads Caractor Plastic Beads Assrtd Shape & Colour Plastic Glass Plastic File Folder Plastic Table Plastic Photo Frame Ceramic Beads Ladies College Bag Hoftex Glass Beds Garments Accessories Plastic Botton Plastic Shoe Parts Intimation Ring Hair Accessories Clip Shoulder Pouch

FMCG Products

We are also engaged in the business of personal care and health care products. Our product offering is well diversified across segments like skincare, hair care, therapeutic products, ayurvedic food supplements. Some of our major products have become household names such as Powder, Fair and Handsome Fairness Cream, Hair Oil, Soap, perfume etc. We have a strong presence in the FMCG sector and our product range encompasses the skin care, beauty care, hair care, medicines. Our FMCG business can be categorized as :-

Personal Care

Health Care

SWOT ANALYSIS OF THE COMPANY

STRENGTHS WEAKNESS
Sound experience of Promoters Lower levels of Expenditure in the Research and
Availability of Low cost and skilled technical and professional Manpower provides competitive advantage to Company. Development.
Limited budget.
The struggle to constantly create new designs
Unique designs. The possible inability to meet demand due to the small size of the company.
The flexibility to provide customized pieces.
A comprehensive distribution network from a robust website.
OPPORTUNITIES THREATS
A growing market that is unaware of contemporary Ti Designs products. Intense competition from the old and well situated competitors.
The injection of fresh , creative designs in a somewhat stagnant industry. High entry cost in the newer markets.
Artistics copycats that enter the market and mimic Steves designs.
A slowdown of the economy that will have a reduction on individuals discretionary income.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

(Amount in Lacs)

PARTICULARS FY 2017-18 FY 2016-17
Revenue from operations 34363.76 40553.63
Other income 18.24 56.69
Total Income 34382.00 40610.32
Less: Total Expenses before Depreciation, Finance Cost and Tax 34200.70 40557.49
Operating Profits before Depreciation, Finance Cost and Tax 181.30 52.83
Less: Finance cost 3.68 5.75
Less: Depreciation 1.04 0.70
Profit / (Loss) Before Tax 176.58 59.27
Less:- Current Tax 55.00 20.00
Less: Deferred Tax -0.08 0.05
Profit/ (Loss) after tax (PAT) 121.66 39.22
Balance carried to balance sheet 121.66 39.22

During the year under review, Company has earned total income of Rs. 34382.00 Lakh as against the total income of Rs. 40610.32 Lakh of previous year. The total income of the company was decreased by 18.11% over previous year. The profit before tax in the financial year 2017-18 stood at Rs 176.58 Lakh as compared to profit of Rs. 59.27 Lakh for last year and net profit after tax stood at Rs. 121.66 Lakh compared to profit of Rs. 39.22 Lakh for previous year, increase in Profit is due to decrease in Total expenses from 40551.04 Lacs in FY 2016-17 to 34205.43 lacs in FY 2017-18.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Internal Control system and adequacy Internal Control measures and systems are established to ensure the correctness of the transactions and safe guarding of the assets. Thus, internal control is an integral component of risk management. The Internal control checks and internal audit programmes adopted by the Company plays an important role in the risk management feedback loop, in which the information generated in the internal control process is reported back to the Board and Management. The internal control systems are modified continuously to meet the dynamic change. Further the Audit Committee of the Board of Directors reviews the internal audit reports and the adequacy and effectiveness of internal controls.

RISKS AND CONCERNS

Our results of operations could potentially be affected by the following factors amongst others: 1. Our failure to keep pace with rapid changes in Our Industry 2. Disruption in our business.

3. General economic and business conditions in the markets in which we operate and in the local, regional and national economies;

4. Our ability to successfully implement our growth strategy and expansion plans, and to successfully launch and implement various projects and business plans for which funds are being raised through this issue; 5. Our ability to effectively manage a variety of business, legal, regulatory, economic, social and political risks associated with our operations; 6. Failure to obtain any approvals, licenses, registrations and permits in a timely manner; 7. Changes in laws and regulations relating to the industries in which we operate; 8. Recession in the market; 9. Failure to adapt to the changing technology in our industry of operation may adversely affect our business and financial condition; 10. Changes in political and social conditions in India or in countries that we may enter, the monetary and interest rate policies of India and other countries, inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices; 11. Occurrence of natural disasters or calamities affecting the areas in which we have operations; 12. Any adverse outcome in the legal proceedings in which we are involved; 13. Concentration of ownership among our Promoters. 14. The performance of the financial markets in India and globally; 15. Failure to comply with regulations prescribed by authorities of the jurisdictions in which we operate; 16. Inability to successfully obtain registrations in a timely manner or at all; 17. Our ability to attract, retain and manage qualified personnel; 18. Disruption in supply of Raw Materials; 19. Effect of lack of infrastructure facilities on our business.

CAUTIONARY STATEMENT

There are certain statements in this report which the Company believes are forward looking. The forward looking statements stated in this report could significantly differ from the actual results due to certain risks and uncertainties, including but not limited to economic developments, Government actions, etc.