le lavoir ltd Management discussions


A. Overview of the Global Economy:

As consumer product companies struggle to obtain the inputs and commodities they require, they also face a changing geopolitical and business environment. This involves governmental restrictions on technology transfer, fraught relations between the worlds greatest powers, and increased rationalization of supply chains. It also involves new efforts by global companies to reinforce supply chain resilience and redundancy, partly by diversifying supply chain processes and no longer depending on just one country or supplier. As a result, we may begin to see a consumer products industry emerge that is, in many ways, more diverse than before.

B. Overview of the Indian Economy:

Indian service sector is popular for its competency and efficiency. In seven decades of independence, Indian service sectors have witnessed phenomenal growth. In Financial Year, the contribution of service sectors in Indian GDP is more than 50.00%. This sector has witnessed 10.08% growth in the year 2021-22. Indias service sectors are not only giving an unprecedented contribution to the growth of the Indian economy but also attracting foreign investors to endeavor their industrialization venture. Hotels and restaurants, transport, storage and communication, telecommunication, finance, insurance, real estate, business services related to IT, community, social and personal services, etc. come under the service sector of India.

C. Outlook:

Asias third-largest economy expanded faster than the forecast of 5.0% by economist in a Reuters Poll in the last quarter of the 2022-23 Fiscal year through March up from a revised 4.5% in the previous quarter. The Full-year growth estimate was revised to 7.2% from an earlier estimate of 7.00%. Further, resolution for Atmanirbhar Bharat along with collective effort of all stakeholders will contribute to rebuilding a strong economy. The Company will continue to focus on meeting the needs of its long-term strategic partners through investment in new capabilities and the continuous improvement of the services provided within these collaborations.

D. Industry structure and developments

Innovation and creativity are the foundation of any successful business. However, there is another addition in the Indian markets for laundry services. The main customers of this market are bachelors and students. Targeting them will help in increasing the popularity of any laundry startup. Recently, startups have focused on offering compact designs with longer utility. They provide high performance at budget-friendly costs for increasing the appeal of their services amongst the target audience. Complete customer satisfaction is the only way to ensure success and demand in the market.

E. Opportunities and Threats:

Opportunities:

Network area: The Company has diverse product portfolio, wide network area of Services, marketing and distribution, wide range of fill volumes etc. Management: The Company has experienced management team and well qualified senior executives. Market: Companys manufacturing and institutional sales stabilize revenue stream and helps in targeting new domestic and export markets. Hence, the Company has a wide range of network area for trading its products online or offline. Technological developments: The ongoing adoption of technological developments is a feature of the chemicals industry that can be seen in every segment and creates both opportunities and risks. There is also an increasing adoption of block chain technology to enable supply chain transparency and product tractability around the time-specific delivery of chemicals in end-markets.

Threats:

High Competition Era: The Customer Sector Industry has entered into the orbit of the high competition. The market fights are set to intensify with unstoppable capacity build up. The Competition from both unorganized and other organized players, leading to difficulties in improving market share. Manpower: The one of the common problem emerged for finding talent with competence or even skilled man power for Pharmaceutical Industries irrespective of the Companys Brand or Size. Under cutting of price: Due to high competition in market, the competitors are doing price cutting of Services to compete or keep their existence in markets which is ultimate big problems for the industries. New Entrance: More and more new organized players are entering into market which will increase competition in organized sector also.

F. Segment-wise or Product-wise performance:

The Company is primarily engaged in single segment i.e. Special Consumer Service

The Turnover of the Company for the Financial Year 2022-23 is Rs. 176.15 Lakhs.

G. Future Outlook:

The Companys outlook for the year 2022-23 is to add more Services in the product range as per requirement in both Indian and Global market. The Company will focus on research and development, higher productivity, etc.

H. RISKS AND CONCERNS

Fragmented customer relationship management

Underutilized methods to improve customer service and reduce related costs A lack of knowledge on the part of one section of an enterprise regarding interactions with a customer on the part of another, leading to customer frustration and embarrassment A lack of integration among order-entry systems or infrastructures, causing an inability to respond to market demands A lack of visibility of the order status along the whole supply chain A lack of true integration of supply chain management (SCM) Inefficient routing protocols that send voice calls and emails into a black hole where they are never retrieved or responded to Inadequate staffing that provides an overloaded workforce where responses to inquiries may be unacceptably delayed or never answered at all

I. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

Industrial Relations continued to be harmonious and cordial throughout the year. The Company always valued its Human Resources and believes in unlimited potential of each employee. Your directors believe and affirm the importance of developing human resources, which is the most valuable asset of your Company and the key element in bringing all round improvements and achieving growth. The human resource philosophy and strategy of your Company has been designed to attract and retain the best talent. In practice, it creates and nurtures a work environment that keeps employees engaged & motivated. Employee relations during the year under review were peaceful. The contribution and co-operation received from employees across all levels was excellent and the same has been appreciated & supported by the management through its continuous & systematic training programmes.

J. Internal control systems and their adequacy:

The Company has an independent Internal Audit function with a well-established risk management framework. The scope and authority of the Internal Audit function are derived from the Internal Audit Charter approved by the Audit Committee. The Company has engaged a reputable external firm to support the Internal Audit function for carrying out the Internal Audit reviews.

The Audit Committee meets every quarter to review and discuss the various Internal Audit reports and follow up on action plans of past significant audit issues and compliance with the audit plan. The Chairperson of the Audit Committee has periodic one-on-one meetings with the Chief Internal Auditor to discuss any key concerns.

Additionally, the following measures are taken to ensure proper control:

Budgets are prepared for all the operational levels.

Any material variance from budget has to be approved by the Commercial director. Any major policy change is approved by the managing director. Any deficiency in not achieving target is reviewed at management meetings.

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

The financial performance of the Company for the Financial Year 2022-23 is described in the Directors Report of the Company.

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

The cordial employer - employee relationship also continued during the year under the review. The Company has continued to give special attention to human resources.

M. Caution Statement:

Statements made in the Management Discussion and Analysis describing the various parts may be “forward looking statement” within the meaning of applicable securities laws and regulations. The actual results may differ from those expectations depending upon the economic conditions, changes in Govt. Regulations and amendments in tax laws and other internal and external factors.

Registered Office:

By the Order of the Board

Digvijay Plot, Street No. 51 Opposite

Le Lavoir Limited

Makhicha Nivas, Jamnagar - 361 005

Sd/- Sd/-
Sachin Kapse Dhiraj Kothari

Place: Jamnagar

Managing Director Director

Date: 1st September, 2022

DIN: 08443704 =RIGHT>DIN: 08588181

SECRETARIAL AUDIT REPORT

FORM NO. MR-3

SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2023

[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To, The Members of

Le Lavoir Limited

Digvijay Plot, Street No. 51, Opposite Makhicha Nivas Jamnagar 361 005

I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Le Lavoir Limited (hereinafter called the “Company”). The Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing my opinion thereon.

Based on my verification of Le Lavoir Limiteds books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, I hereby report that in my opinion, the Company has, during the audit period covering the financial year ended on 31st March, 2023, complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

I have examined the books, papers, minute books, forms and returns filed and other records maintained by Le Lavoir Limited (“the Company”) for the financial year ended on 31st March, 2023, according to the provisions of:-

1. The Companies Act, 2013 (the Act) and the rules made thereunder;

2. The Securities Contracts (Regulation) Act, 1956 (‘SCRA) and the rules made thereunder;

3. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;

4. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings;

5. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act): a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011; b. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 ; c. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018; (Not applicable to the Company during the Audit Period). d. The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015; e. The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018 (Not applicable to the Company during the Audit Period). f. The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client;

I have also examined compliance with the applicable clauses of the following: (i) Secretarial Standards issued by The Institute of Company Secretaries of India;

During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above except:

1. The Company has not maintained functional website as per Regulation 46 of the Securities and Exchange Board India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

2. During the year under review, following forms were not filed by the Company:

Independent Directors of the Company had not applied for inclusion / renewal of their name in the data bank as per rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014. E form ADT-1 for appointment of Statutory Auditor has not been filled by the Company. E form ADT-3 for resignation of Statutory Auditor has not been filled by the Company. Limited Review Report and Audit Report were not given by Peer Review Chartered Accountant as per Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Appointment of Auditor for the financial year 2021-22 was not made as per Section 139 of the Companies Act, 2013.

Nomination and Remuneration Committee was not constituted as per Section 178 of the Companies Act, 2013.

I further report that the Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act.

Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.

Majority decision is carried through while the dissenting members views are captured and recorded as part of the minutes.

I further report that there are adequate systems and processes in the company commensurate with the size and operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

FOR, GAURAV BACHANI & ASSOCIATES,
COMPANY SECRETARIES
GAURAV V. BACHANI
PROPREITOR
ACS: 61110
COP: 22830

Date: 1st September, 2023

Peer Review Certificate No.: 2126/2022

Place: Ahmedabad

UDIN: A061110E000914677

This report is to be read with our letter of even date which is annexed as Annexure - A forms an integral part of this report.

To, The Members

Le Lavoir Limited Ahmedabad

My report of even date is to be read along with this letter.

1. Maintenance of secretarial record is the responsibility of the management of the company. My responsibility is to express an opinion on these secretarial records based on my audit.

2. I have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records. I believe that the processes and practices, I followed provide a reasonable basis for my opinion.

3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.

4. Where ever required, I have obtained the Management representation about the compliance of laws, rules and regulations and happening of events etc.

5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of management. Our examination was limited to the verification of procedures on test basis.

6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or effectiveness with which the management has conducted the affairs of the Company.

FOR, GAURAV BACHANI & ASSOCIATES,
COMPANY SECRETARIES
GAURAV V. BACHANI
PROPREITOR
ACS: 61110
COP: 22830
FRN: S2020GJ718800

Date: 1st September, 2023

Peer Review Certificate No.: 2126/2022

Place: Ahmedabad

UDIN: A061110E000914677

DECLARATION

All the Board Members and Senior Management Personnel of the Company have affirmed the compliance with the provisions of the code of conduct of Board of Directors and Senior Management for the year ended on 31st March, 2023.

By the Order of the Board
Le Lavoir Limited

Sd/-

Sd/-

Sachin Kapse

Dhiraj kothari

Managing Director

Director