This chapter on Managements Discussion and Analysis ("MD&A") is to
provide the stakeholders with a greater understanding of the Companys business, the
Companys business strategy and performance, as well as how it manages risk and capital.
The following management discussion and analysis is intended to help the reader to
understand the results of operation, financial conditions of Panth Infinity Limited.
(1) ECONOMTC OVERVTEW. TNDUSTRY STRUCTURE AND DEVELOPMENTS:
World Economy and Jewellery Tndustry Trends
The global jewelry market size was valued at $216.48 billion in 2022 & is projected
to grow from $224.38 billion in 2023 to $308.36 billion by 2030, exhibiting a CAGR of 4.6%
during the forecast period.
There is a rising trend in jewel consumption as more people are inclined towards
luxurious products. Various positive attributes of the product include assisting in
highlighting specific features of the body, showcasing fashion trends/style, helping to
enhance looks, and others. The products growing popularity among high-income earners as a
symbol of high status is helping to accelerate the consumption rate, Rising demand for
contemporary jewels and an increasing number of designers entering the market continue
contributing to market growth.
Technology has advanced significantly, especially post-Covid-19, which has positively
influenced the ornaments industry, most notably in the design techniques &
manufacturing space. The rising popularity of manufacturers incorporating technology with
ornaments is helping to boost the consumption of the product.
Due to Significant government support, positive vaccination programs and relaxation in
COVID restrictions turned things around and started inducing customers to buy Jewellery
for events like wedding and festivals. The jewellery industry has also been helped by a
shift in consumer preferences from spending in travel and entertainment to luxury products
like Jewellery.
TNDTAN ECONOMY:
Indias gems and jewellery market size was at US$ 78.50 billion in FY21. Growth in
exports is mainly due to revived import demand in the export market of the US and the
fulfilment of orders received by numerous Indian exhibitors during the Virtual
Buyer-Seller Meets (VBSMs) conducted by GJEPC.
Indias gems and jewellery exports reached US$ 39.14 billion in 2021-22, a 54.13% rise
from the previous year. From April-December 2022, Indias gems and jewellery exports were
at US$ 28.6 billion, a 6.28% rise compared to the previous years period. While the export
during April-March 2023 stood at US$ 37.95 billion.
The Company is presently engaged in Business of Trading of Precious Metals, Stones
& Jewellery. The Company expects that these businesses will persist in the coming
years. The Company is a part of an Industry, which largely operates through unorganized
constituents. However, unlike the industry, the Company has attempted to operate through
as systematic and organized manner as possible. Since, Diamond and Jewellery is one
industry, in which India holds commendable position in the world, one can look forward to
more international involvement coming up in this industry.
(2) OPPORTUNITY AND THREATS:
? Opportunities
Diamond and Jewellery volumes in India have remained resilient over the years aided by
strong cultural affinity or the yellow metal and stable returns from the asset class. The
major growth drivers for the industry are:
> Stable asset class
Gold has historically been one of the most stable assets providing investors best
returns over a long-term horizon, compared to other assets.
> An essential part of Indian culture
Jewellery in India has traditionally been an integral part of weddings and festivals.
Indian customers often purchase contemporary jewellery as a form of self-expression and
this has led to evolution of distinct targeted collections including wedding wear, work
wear, regular or daily wear and fashion wear as well as very premium limited edition
signature collections.
> Increasing affordability
Rapidly expanding economy, increasing urban per capita income and governments focus to
double farmers income by 2022, huge opportunities will open up with increasing
affordability of this segment.
> Rising female workforce
Better job opportunities, rising demand for skilled and professional workforce and
rapid urbanization are leading to increasing share of women in workforce. And by virtue of
women being the primary consumers of jewellery, their increasing entry into workforce and
disposable income are likely to drive the demand, going forward.
> E-commerce
With the rising internet penetration in the country, e-commerce is gaining significant
boost with rising consumer confidence along with the advantage of ease in shopping,
lucrative discounts, access to wider variety, free shipping, and quality assurance.
Though, an online sale through online channel is currently miniscule, it is gaining
importance facilitating jewellers in reaching out to more customers. Also, easing of
travel restrictions will help in participating in trade shows, tap new customers and
understand jewellery trends and concepts in a better way.
> Government support
Realizing the sectors potential, the Government has identified it to be a focused area
for export promotion. Adopting policies of ‘Make in India and ‘Design in India
there is a strong intent to push growth. The Government has also undertaken various
measures to promote investments and upgrade technology & skills to promote ‘Brand
India in the international market.
More and more benefits and exemptions are likely to come in the way of exports in
Special Economic Zones. The Company, having commendable exports and being situated in
SEEPZ-SEZ, is likely to receive the advantage of the same.
? Threats
> Fast-changing fashion trends
Diamond and Jewellery, being a vital fashion and lifestyle statement, demands the
players to be more agile and responsive to the constantly evolving trends and consumer
preferences.
> Regulatory framework
Changes in regulations and stringent compliances may cause temporary blip in sales
during the transition period.
> Liquidity crisis
The industry is highly capital intensive in nature with long working capital cycles,
since the jewellery conversion from gold typically requires 15 days. Strength of the
balance sheet and access to easy credit is often required to facilitate and sustain ease
in operations.
(3) OUTLOOK:
The Company has exceeded expectations in the current year inspite of severe impacts of
COVID domestically and restricted travel and lockdown conditions in various countries. The
company continues to invest in product development, efficient processes and skilled
manpower to improve products and services for our customers. We expect to achieve higher
growth and market share in the current year keeping in view the evolving geo political
situation and macro-economic conditions in India and across the globe.
(4) RTSK AND CONCERNS:
Following can be some of the risks and concerns the Company needs to be wary of:
> The largely unorganized structure of the market can affect the systematic
functioning of the Company.
> The major income component of the Company being exports, changes in economies or
government policies of the countries to which the Company is exporting may also affect the
operations of the Company.
> Geo political tensions and impact of war is seen in fluctuating raw materials
prices like gold and diamonds. Also currency rate fluctuations due to this global scenario
can impact business.
> There is an increased global outlook of rising interest rates and inflation which
can adversely impact wider economy and thus Gems and Jewellery business as well.
> Competition amongst manufacturers and exporters remains a concern for jewellery
manufacturing from countries that are lifting COVID travel restrictions recently.
(5) TNTERNAL CONTROL SYSTEM AND THETR ADEQUACY:
The Company has a proper and adequate system of internal controls. This ensures that
all transactions are authorized, recorded and reported correctly, and assets are
safeguarded and protected against loss from unauthorized use or disposition. In addition,
there are operational controls and fraud risk controls, covering the entire spectrum of
internal financial controls. An extensive programme of internal audits and management
reviews supplements the process of internal financial control framework. Properly
documented policies, guidelines and procedures are laid down for this purpose. The
internal financial control framework has been designed to ensure that the financial and
other records are reliable for preparing financial and other statements and for
maintaining accountability of assets.
In addition, the Company has identified and documented the risks and controls for each
process that has a relationship to the financial operations and reporting. The Company
also has an Audit Committee to interact with the Statutory Auditors, Internal Auditors and
Management in dealing with matters within its terms of reference. This Committee mainly
deals with accounting matters, financial reporting and internal controls.
(6) DTSCUSSTON ON FTNANCTAL PERFORMANCE WTTH RESPECT TO OPERATIONAL PERFORMANCE :
The Income from Operation of your Company for the year 2022-23 was increased to Rs.
1573.51 lakh as against Rs. 1458.24 lakh of the previous year. As a result, the Companys
Net Loss after tax has been Rs. 223.54 lakh for the year 2022-23 as against the Net Profit
after tax of Rs. 4.26 lakh of the previous year. Your Directors are hopeful to earn
rational profit in the years to come.
(7) HUMAN RESOURCES &INDUSTRTAL RELATIONS:
The Companys human resources philosophy is to establish and build a strong performance
and competency driven culture with greater sense of accountability and responsibility. The
Company acknowledges that its principal asset is its employees. The expertise of the
management team, the professional training provided to the staff, their personal
commitment and their spirit of teamwork together enhance the Companys net worth. The
total numbers of employees as on 31st March, 2023 were 3 (Three).
The Company considers that its relationship with its employees is vital and ensures
that employees feel valued and is endeavoring to create an environment and culture within
which every employee can put his best efforts and maximize his contribution. The
successful conducted vaccination drive for all employees of the Company is one
illustration of the safe and healthy environment Company endeavours to provide to the
employees.
The Company ensures that all its employees remain competent through education, skills,
training and experience as necessary. The Company has had cordial relations between the
management and employees and an atmosphere of harmonious working to achieve the business
objectives of the Company throughout the year. The Company is poised to motivate each of
its employees to perform to the fullest extent possible and to appropriately reward their
excellence.
(8) DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIO:
| Sr. Ratios No. |
FY 2022-23 |
FY 2021-22 |
Change in Ratio % |
| 1 Debtors Turnover Ratio (Time) |
1.25 |
1.05 |
19.00 |
| 2 Inventory Turnover Ratio (Time) |
25.78 |
6.84 |
277.00 |
| 3 Interest Coverage ratio (Time) |
0.00 |
2.24 |
100.00 |
| 4 Current Ratio (Time) |
135.91 |
12.55 |
983.00 |
| 5 Debt Equity Ratio (Time) |
0.00 |
0.00 |
0.00 |
| 6 Operating Profit Margin ratio (%) |
8.78 |
1.64 |
535.37 |
| 7 Net Profit Margin Ratio (%) |
0.00 |
0.30 |
100.00 |
| 8 Return on Net Worth (%) |
0.00 |
0.35 |
100.00 |
NOTES FOR CHANGE IN RATIOS:
i. Debtors Turnover Ratio increased by 19.00% due to decrease in Debtors of the
Company.
ii. Inventory Turnover Ratio increased by 277.00% due to decrease in Inventory of the
Company.
iii. Interest Coverage Ratio decreased by 100.00% due to the Company has paid all debt.
iv. Current Ratio increased by 135.91% due to outstanding amount of creditor in FY
2022-23 is reduced from outstanding balance of creditor in FY 2021-22.
v. Debt Equity Ratio decreased by 100.00% due to repayment of debts.
vi. Operating Profit Margin Ratio increased by 535.37% due to lower expenses generated
during theyear under review.
vii. Net Profit Margin Ratio decreased by 100% respectively due to the Company doesnt
profit.
viii. Return on Net Worth of the Company decreased by 100.00% due to the Company
doesnt profit.
(9) CAUTIONARY STATEMENT:
This document contains forward-looking statements about expected future events,
financial and operating results of the Company. These forward-looking statements are based
on assumptions and the Company does not guarantee the fulfillment of the same. These
statements may be subject to risks and uncertainties. Readers are cautioned not to place
undue reliance on forward-looking statements as a number of factors could cause
assumptions, actual future results and events to differ materially from those expressed in
the forward-looking statements. Accordingly, this document is subject to the disclaimer
and qualified in its entirety by the assumptions, qualifications and risk factors referred
to in the managements discussion and analysis of Panth Infinity Limiteds Annual Report,
2022-23.
|
By order of the Board of Directors |
|
For PANTH INFINITY LIMITED |
| Place: Ahmedabad |
SENDHABHAI AMRUTBHAI MAKVANA |
| Date:05/09/2023 |
Chairman & Managing Director |
|
DIN:09756503 |
| REGISTERED OFFICE:- |
|
| Office No 1816, Block-B, Navratna Corporate Park, Opp. Jayantilal Park, Ambli Bopal
Road, Bopal, Daskroi, Ahmedabad-380058. |
|
+91-9892691696
