Looks Health Services Ltd Management Discussions.

1. Industry Structure and Development:

With the changing dimension of beauty, influence of media, film industry and fashion, the market is predicted to fuel over in the near future. Health factors such as rise in accidents and obesity and people have become more prone about their health because of the ongoing situation of COVID-19 Pandemic which have led to the growth of the market. Moreover, technological factors which include the development of advanced materials like silicone implants is also expected to spur the market growth in domestic as well as in global market. Moreover, with the increasing popularity of digital photography, introduction to self-monitoring apps, high demand to increase ones self-esteem and affordability of cosmetic surgeries in developing countries can substantially increase the volume of cosmetic surgery procedures.

India is viewed as one of the most progressive countries for cosmetic surgical procedures and this trend is expected to continue in the near future. This is mainly due to the fact that cosmetic surgery has evolved beyond the traditional concept of being a risky or impractical procedure that was demanded by women who were overly conscious about their appearance. Today, people in India understand that cosmetic surgery is a highly specialized and advanced niche of plastic surgery that helps people attain happiness with fewer risks and greater affordability.

In the past, cosmetic surgeries in India were associated with celebrities and people of the affluent class. However, today, these surgeries are increasingly becoming popular and are being undertaken by the middle class. Increasingly, both men and women from the upper middle class group are opting for cosmetic procedures to look attractive in order to get lucrative jobs, best possible marriage partners and primarily get rid of any deformity that they feel impacts their self confidence and self-esteem. Moreover, traditionally, men and women in their late 20s and early 30s were the key clients of cosmetic surgeons. However, a new trend has emerged where teenagers are approaching cosmetic/ aesthetic surgeons to get some cosmetic procedure done.

The changing lifestyle and urbanization, growing awareness of cosmetic surgery procedures, availability of better infrastructure and the rising economic capacity are all driving the cosmetic surgeries market in India.

2. Opportunities & Threats:

The Cosmetics market is especially rich in opportunities since most products still have low penetration rates among the population. For instance, only 23% of households use skin care products. There is vast potential of growth.

As per research findings, cosmetics market, once female dominated, has started earning high revenues from male counterparts as well, by catering to male-specific needs. The revenue generated through male cosmetic market has increased the total revenue of Indian cosmetic industry.

Meanwhile, the recent COVID 19 pandemic, social taboos against body part violation, non-essential nature of cosmetic surgery and high cost associated with such surgeries are some of the major factors restricting the market growth in domestic as well as in global market.

3. Segment wise performance:

Company operates only in one segment viz. Cosmetic & Non Cosmetic Treatments.

4. Outlook:

It was indeed a tough year with COVID-19 pandemic disrupting life and businesses across the world. Our business was disrupted too with the initial lockdowns leading to closure of both of our Clinics situated at Goa and Mumbai. The company is taking all necessary measures to re-open clinics as soon as the restrictions ease out and start carrying out the operations in order to achieve impressive realization of opportunities in the market.

5. Risks & Concerns:

First and foremost, the Company is truly committed towards all of its customers needs through this demanding time. The Company did witness a meltdown in the growth of our industry due to the enormous impact of COVID 19 pandemic, lockdown implementation measures, etc.

However, despite the situation of COVID 19, people will continue to have hair loss problems, scalp related issues or skin related issues and they will continue to look for guided assistance, assessment and its treatment. Being rest assured, the Company has been there for care and support and it will continue to do so!

The major risks identified by the management are regulatory, competition, supply chain disruption, cyber & data security along with economic and political risks. The Company believes that an organization cannot be risk averse but has to persistently foresee and implement ways of mitigating these risks. The Company occasionally faces the risk of an economic downturn but looking at the growth prospects for the Cosmetic Industry, this risk can be controlled, if not mitigated. In order to ensure long term corporate sustainability and success it is essential that the Company accept these risks, place proper mechanisms and find solutions to reduce as well as mitigate these risks. Thus, the Company is well aware of these risks and challenges and has put in place mechanisms to mitigate the same.

6. Internal Control System & their Adequacy:

The Company has a well-defined system of internal audit. It is in place so as to independently review and strengthen the internal controls. The Audit Committee of the Company reviews the reports of the internal auditors quarterly and recommends steps for further improvement of the internal controls. They ensure that assets are safeguarded and protected against loss or unauthorised disposal. It is also designed for effectiveness and efficiency of operations, compliance or regulations backed by strong audit framework at all the locations.

7. Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be forward-looking statements. Actual results may differ materially from those expressed or implied due to various risks and uncertainties. Important factors that could make a difference to the Companys operations include economic and political condition in India and in the countries in which the Company operates volatility in currency rates, changes in Government regulations and policies, tax laws, statutes and other incidental factors. The Company does not undertake to update these statements.

8. Financial Performance:

> Share Capital:

The Paid up Share Capital of the Company as on 31st March, 2021 stands at Rs. 105,000,000/- divided into 10,500,000 equity shares of Rs. 10/- each fully paid up.

> Reserves and Surplus:

The Reserves and Surplus is Rs. 44,468,385/-as on the end of the Current year.

> Total Income:

During the year under consideration, total income is Rs. 5,860,825/-.

9. Employee Relations:

Company has smooth relations with its employees during the year under review.

10. Our Strategy:

During the Financial Year under Review, Company has closed both the clinics in Mumbai & Goa due to ongoing pandemic restrictions. Company is developing strategies in order to re-open the clinic as soon as the restrictions ease out. Further once the economy starts moving & new expansion strategy is properly implemented, Company is highly upbeat about the business prospects of the Company.

Material Development in Human Resource

The Companys Human Resource Developments efforts aim to make Looks a preferred place to work. This is being achieved through various initiatives including skill development, personality enhancement and employee engagement through internal communications to foster happiness at work.

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefore:

Particulars FY - 2020- 2021 FY - 2019- 2020 Reasons
Debtors Turnover 0.00 0.00 No debtors outstanding
Inventory Turnover N/A N/A Not Applicable as Revenue from Operations is purely from Service Activity
Interest Coverage Ratio (77.17) (22.52) times Due to higher interest payout
Current Ratio 12.11 times 1.47 times The current ratio improved due to lesser liabilities & better cash realization.
Debt Equity Ratio 0.00 0.00 No debtors outstanding
Operating Profit Margin (%) 38.12% 17.73 % Improvement is mainly on account of higher margins charged on lower sales
Net Profit Margin (%) (1179.53) (2.14) % Loss is mainly due to Lower Sales and standard operating expenses

11. Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof:

Return on Net worth FY 2020-21: (1.51)%
Return on Net worth FY 2019-20: (0.11) %

Return on Net worth is decreased by 941.92% during the Financial Year 2020-2021.

There is decrease in revenue from operations by 98.11 % in FY 2020-2021, on the other side company has tried to control the expenses, as a result expenses are reduced by 51.00 % which has resulted in net decrease in net worth by 0.13%.

By Order of the Board

For Looks Health Services Limited

Sd/-

Pritesh Doshi

Chairman cum Managing Director

DIN: 05155318

Date: 06th September, 2021

Place: Mumbai