INDUSTRY STRUCTURE AND DEVELOPMENTS:
Our Company is moving firmly in it‘s visionary & strategy
based market penetration. India has been witnessing a major surge in demand in the
education, health care segments being spear headed by Government & Non Government
Institutions, over and above Corporate Business Spending and a consistently increasing e
-commerce market spread.
Indias Indias GDP growth is expected to remain robust in FY24.
GDP forecast for FY24 to be in the range of 6-6.8%. Economic growth to be boosted by the
expansion of public digital platforms and measures to boost manufacturing output. (source
- https://www.ibef.org/economy/economic-survey-2022-23)
The Indian manufacturing industry generated 16-17% of Indias GDP
pre-pandemic and is projected to be one of the fastest growing sectors. With 17% of the
nations GDP and over 27.3 million workers, the manufacturing sector plays a
significant role in the Indian economy. Through the implementation of different programmes
and policies, the Indian government hopes to have 25% of the economys output come
from manufacturing by 2025.
Further rising number of medical facilities will boost the demand for
medical devices in the market. The medical devices sector in India is projected to reach
US$ 50 billion by 2025. India has the largest population in the world in the age bracket
of 5-24 years with 580 million people, presenting a huge opportunity in the education
sector. he education sector in India was estimated to be worth US$ 117 billion in FY20 and
is expected to reach US$ 225 billion by FY25.
All these and many more factors have fueled the organization‘s
efforts to becoming a major player in India in the health care & education furniture
products industry.
OVERVIEW AND OUTLOOK OF COMPANYS BUSINESS :
Our Company has been associated with some of the prestigious projects
for furniture such as Swarnim Gujarat Sports Foundation, Shree Patel Seva Samaj - Aatkot,
Porbandar Nagrik Sahakari Bank, Divine Life Hospital - Kutch, Transglobe, Rajasthan
Council of School Education, Maa Education, Trendsutra, Pranav Overseas LLP, Rashtriya
Madhyamik Shiksha Abhiyan, Sarva Shiksha Abhiyan, IIT Guwahati, Sarva Siksha
Abhiyan-Gujarat , IIT Gandhinagar & various Medical Colleges falling under the AIIMS
umbrella. Moreover, we have supplied Waiting Area Seating Systems at airports of the
country which gave us the confidence to bid & win a global tender for Airport Seating
Systems such as Aai, Port-Blair - 3 Seater Chair, AAI for Jammu Airport, Trichy
International Airport, Airports Authority Of India, Varanasni, Public Implementation
Unitand in technical collaboration with C.C.M Srl Group, Italy. In the health care sector,
our Company has successfully executed high value orders for Medical & Non Medical
Furniture for various Project Implementation Units (PIU‘s), HLL Infratech Services P
Ltd (Under the Government of India Health & Family Welfare Dept), multiple AIIMS, U N
Mehta Institute of Cardiology & Research, Andhra Pradesh Medical Services &
Infrastructure Development Corporation(APMSIDC), Engineering Projects (Inida) Limited
(EPIL), AAI_Guwahati, West Bengal Medical Services Corporation (wbmsc) Kolkata, so on. As
stated earlier, we are now poised in a very strong position with our affiliation with
Airports Authority of India.
OUR PRODUCT RANGE :
Our Company is having a high flexibility to cater to a wide range of
products in various categories such as Institutional Furniture which covers Office
Furniture, Educational Furniture (From KG to PG), Health Care Furniture (Isolation beds,
Fowler Beds, Motorized Beds, Support Furniture etc.) all types of Non Medical Furniture
over and above having inherent strengths of Home Furniture range covering living room,
dining room and bed room. In fact, Public Seating System (Waiting Area Chairs) is another
major segment where we have developed strength through product development and channel
sales.
CUSTOMER WISE PERFORMANCE IS AS UNDER:
Product wise bifurcation is not feasible to provide as the company is
dealing into various products in one segment only and hence category wise/ customer based
data is given as below :
| Customer |
Sum of Total (Rs. in Lakhs) |
| Government Project |
3175.66 |
| Institutional / Private Project |
4566.79 |
| Online |
151.87 |
| Retailer |
189.90 |
| Wholesaler |
0.47 |
| Total |
8084.69 |
And as stated aforesaid, Company has only one segment , hence segment
wise performance is not applicable.
STRENGTHS, OPPORTUNITIES, RISKS AND CONCERNS
Strength
Our core purpose is "To serve the world with better
lifestyle". Our business network is spread in 4 States. We consistently introduce new
design in our products. We have integrated in-house capabilities to market, distribute and
retail our conceptualized furniture. We also have team of experienced, highly professional
and skilled manpower. We understand the customer needs, market trends mapping and provide
value for money products.
Your company have ventured into new business of manufacture , trading
i.e.buying, selling, dealing in, automobiles, motorcars, lorries, buses, vans,
motorcycles, cycle-cars, motor, scooters, carriages, amphibious vehicles, and vehicles
suitable for propulsion on land, sea, or in the air. or in any combination thereof and
vehicles of all descriptions, whether propelled or assisted by means of petrol, diesel,
spirit, steam, gas, electrical or other power, and of internal combustion and other
engines, chassis-bodies and other components, parts and accessories and maintenance
thereof. Further to carry on the business of Mobile Devices, Tablets, Telecom Accessories
and other related gadgets.
And to carry on the business as developers, builders, erect, demolish,
alter, repair or remodel, to act as contractors, estate agents, engineers, consulting
engineers, supervisors, management consultants, advisors, architects, erectors,
constructors, interior decorators of building, convention centre, business centre, club
house, entertainment centre, roads, infrastructure facilities, school, colleges, hospital,
malls, retail spaces, shopping arcade, house, apartment, structures, shelters, warehouses
and or residential, office, industrial, institutional or commercial complex, Co-operative
housing Societies, township, holiday resorts, hotels, motels, information technology
parks, special economic zones, special tourism Zones., and any such special zones and to
purchase, sale, resale, trade, transfer, give, on leave and License Our diversified
business portfolio enables us to cater a wide range of preferences & consumer segment.
Challenges i.e. Risk and Concern:
The prime challenges faced by the Company are Legal Boundaries,
Economical Changes, Globalization and Regulatory proceedings, Technological and Political
changes are the key challenges for the growth of Business.
Our Company operates under several statutory and regulatory permits,
licenses and approvals. Our inability to obtain, renew or maintain the statutory and
regulatory licenses, permits and approvals required to operate our business may have a
material adverse effect on our business & operations.
Quality of our product is key aspect to sustain in the Market. Any
failure to maintain the quality of the product may affect adversely to our business,
however we have a system of quality check. Third Party like Transportation facilities,
Market Trends include Customers Change in test, preferences, choices, fashion, designs,
patterns, Fluctuation in price and supply of product, failure in obtaining additional
source of finance, Business Rivals, Competition, delay and defaults in clients payments,
inadequate insurance cover age to protect against uncertain hazards, Some Commitments and
liabilities all are adversely affect the growth of Business.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY :
As Stated in Board‘s Report, the Company has in all material
respects, an adequate Internal Financial Control System over Financial Reporting and such
Internal Financial controls over financial reporting were operating effectively.
The Company has proper and adequate system of Internal control to
ensure that all assets are safeguarded and protected against loss from unauthorized use or
disposition and that transaction are authorized, recorded and reported correctly. The
company has effective system in place for achieving efficiency in operations, optimum and
effective utilization of resources, monitoring thereof and compliance with applicable
laws. The Company has also appointed Internal Auditor to check the Internal Control System
and their adequacy.
DISCLOSURE OF ACCOUNTING TREATMENT
The Company has followed all the treatments in the Financial Statements
as per the prescribed Accounting Standards
FINANCIAL PERFORMANCE :
During the year under review, Financial performance from Operation
activities are as follow: ( Rs in lakhs.)
| Particulars |
2022-23 |
2021-22 |
| Total Revenue |
8110.64 |
7614.79 |
| Profit (Loss) before tax |
375.77 |
375.09 |
| Less: Tax Expenses |
|
|
| Current Tax |
107.57 |
123.22 |
| Pre vious Year Tax |
5.90 |
(18.49) |
| Deferred Tax |
(2.50) |
(18.29) |
| Profit (Loss) After tax |
264.81 |
288.65 |
| Earning Per Equity Share |
2.38 |
2.60 |
SEGMENT WISE PERFORMANCE:
The Company has identified its business segment as Primary Reportable
Segment. There are no other Primary Reportable Segment and as such Segment wise reporting
is not given.
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT,
INCLUDING NUMBER OF PEOPLE EMPLOYED
Human resource are valuable asset of our business and the relationship
with the staff and workers continued to be cordial during the entire year. The Directors
wish to place on record their appreciation of the valuable work done and co- operation
extended by them at all levels. Further, the Company is taking necessary steps to recruit
the required personnel from time to time.
Company has framed requisite policies through which Healthy environment
remains amongst the Employees and help us improve quality of life of our employees.
Employees are given freedom to share their views to the Management. We are committed to
fair employment practices and freedom of expression, supported by a strong, Company wide
value system. During the year there was no instance of Strike, Lock out or another issues
related to Human Resources.
DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:
In following Ratios there are significant changes in Key Financial
Ratios in comparison to Previous year:
| Sr. No. |
Type of Financial Ratios |
2022-23 |
2021-22 |
Explanations |
| 1 |
Debtor Turnover Ratio (In
Days) |
261 |
217.00 |
Debt Turnover ratio is
upper as compared to Last year which shows that recovery is lower due to some extended
projects. |
| 2 |
Inventory Turnover Ratio
(Month) |
6.7 |
4.9 |
Inventory turnover ratio
increases due to movement in inventory. |
| 3 |
Interest Coverage Ratio |
3.21 |
2.48 |
Interest coverage ratio
higher as compared to last year which shows that the ability of the company has increased
to pay the interest on its outstanding debt and c ompanys earnings sufficient to enable
it to pay the interest expense. |
| 4 |
Current Ratio |
1.65 |
2.25 |
Current ratio is lower as
compared to last year which shows that liquidity of the company has decreased |
| 5 |
Debt Equity Ratio |
1.56 |
1.03 |
Debt Equity Ratio increase
due to borrowing during the year but the financial structure is sound. |
DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE
IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF:
The Net Worth of the Company has increased to Rs. 48,06,32,515/- in
comparison to previous year of Rs 45,41,52,010 / - There is increase In Net worth of the
Company due to accumulation of profit/surplus.
CAUTIONARY STATEMENT:
Statement in this Management Discussion and Analysis Report, describing
the Companys objectives, estimates and expectations may constitute Forward Looking
Statements within the meaning of applicable laws or Regulations. Actual results might
differ materially from those either expressed or implied.
ANNEXURE V
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