justride enterprises ltd share price Management discussions


Industry Overview:

The Indian toy industry represents a huge opportunity for both domestic and global toy manufacturers, owing to its base of the worlds largest population of children. The industry is highly fragmented, with a large number of indigenous manufacturers and some leading global Companies dominating the branded toys market in the country.

Business Segmentation:

The toy industry is characterized by many different toy manufacturers. Within the larger toy industry, there is a niche of educational toy manufacturers. This niche is fairly new (within the last five years) as the convergence of toys and educational tools becomes more legitimized. For years there was no awareness that a toy could have educational value, it was assumed that a toy was a mindless way of occupying a childs time and attention, giving the parent a break. Only recently has there been studies published that clearly show the ability to design a toy that captivates a childs attention while teaching them constructive skills.

Market Segmentation:

• Individual Consumers: This group consists of retail consumers who generally purchase products for their child or someone that they know. They have high aspirations for their children in terms of education and development and want to get started as soon as possible.

• Wholesale Purchasers : This group is buying toys for children as apart of providing their business services. This segment consists of daycare based or school based such as nursery school or preschool.

SWOT Analysis:

Strengths:

a) Accessibility of trained manpower

b) Novelty skills

c) Huge pool of low-cost labor

d) Business shrewdness

e) Entrenched demand for toys

f) Pool of supportive institutions

g) Ability to compete under adverse scenarios

h) Extensive variety of products to choose

Weakness:

a) Uneven technological knowledge

b) Low down volume production

c) Absence of strong and professionally managed Trade associations and managements

d) Absence of focus on exports

e) Negligible expenditure on Brand building and advertising

f) Sky-Scraping cost of foreign technologies

g) In attentiveness to customer needs

Opportunities:

a) Well-developed market - domestic as well as oversees

b) Rising domestic market and trade capacity of users

c) Liberalized economy, "Make or Buy" decisions easier

d) Improved support from government

e) Low-cost manufacturing base enabling strategic alliances

Threats:

a) Competition from international players

b) Sluggish response to qualify and safety necessities of international market

c) China and other South East Asian countries all set to turn major market share

d) Shifts of trends to electronics toys in which India does not hold a good position

e) Enhanced brand consciousness (of MNC products) among Indian buyers

Risk and Concerns

Wheelers Industry : Risk Management forms an integral part of your Companys operations. Your Company continues to focus on a system-based approach to business risk management. It broadly involves identification & potential risks; their analysis and impact as also risk mitigation initiatives to address the same. The Board of Director of the Company over sees the risk management Process.

Outlook

As stated earlier, your Company is a financially weak Company and is adopting measures to come out from financial losses. Increasing competition both in terms of more manufactures of our products and coming in of lower end products will be a challenge that we will need to meet in order to stay a breast with the market growth.

Adequacy of Internal Control System

The Company has adequate internal control systems for the business processes in respect of all operations, financial reporting, compliance with laws and regulations etc. The management information system forms an effective and sound tool for monitoring and controlling all operating parameters. Regular internal audits ensure that responsibilities are executed effectively. The Audit Committee reviews the adequacy of internal controls on regular basis.

Discussion on financial performance with respect to Operational performance

The brief on Financial Performance of the Company is already provided in the Boards Report of the Company.

Human Resources Development / Industrial Relations

Human resources are valuable assets for any organization. The employees of the Company have extended a very productive cooperation in the efforts of the management to carrying the Company to greater heights. The Company is giving emphasis to upgrade the skills of its human resources and continuous training down the line is a normal feature in the Company to upgrade the skills and knowledge of the employees of the Company.

Cautionary Statement

The Statement in this Management Discussion and Analysis report, describing the Companys outlook, projections, estimates, expectations or predictions may be "Forward looking Statements" within the meaning of applicable securities laws or regulations. Actual results could differ materially from those expressed or implied.

For and on behalf of the Board

JUSTRIDE ENTERPRISES LIMITED

SUKRITI GARG

BHAWANA GUPTA

DIN : 09585946

DIN : 10101543

WHOLE TIME DIRECTOR

WHOLE TIME DIRECTOR

PLACE : DELHI
DATE : 10.07.2023