Seasons Furnishings Ltd Management Discussions.

COMPANY OVERVIEW: Seasons Furnishings Limited (SFL) was incorporated on 16th February, 1990 and promoted by Late Shri Nanak Singh Wadhwa, Shri Inderjeet Singh Wadhwa, and Shri Mandeep Singh Wadhwa. SFL is one of the pioneer companies in organized sector which market exclusively designed furnishing fabric, made-ups and life style products to institutional as well as retail customers. The Company not only sells products but sell a concept to sell its products. The Company is regularly participating in fairs and exhibitions to keep itself abreast with the latest trends and customers taste as also to showcase its products. Besides, the Company has its own Design Studio, continuously engaged in creating new and innovative designs. The in-house Design Studio help the company to market its exclusively designed products. Every care is made to provide quality products, service and excellent ambience at all Seasons outlets.

INDUSTRY STRUCTURE & DEVELOPMENTS:

The Textile Industry in India is one of the largest segments of the Indian economy. It provides direct employment to many million people.

Indian home furnishings manufacturers and home furnishings exporters offers a spectacular range of bedspreads, furnishing fabrics, curtains, rugs, durries, carpets, cushion covers, table covers, linen, kitchen accessories, made-ups, bath linen, and other home furnishings accessories to the nation as well as to the world. Manufacturers of Home Furnishings from India, e.g. floor coverings, kitchen linen, bath linen, cushion covers, bed spreads, and curtains, etc. create a rage in the international markets.

With the increasing textile industry in the country, the furnishing fabric market will also continue to flourish. The home furnishing market is anticipated to witness huge demand with the booming real-estate projects like hotels, hospitals, commercial and big residential apartments.

OPPORTUNITIES & THREATS

• Tremendous boom in retail as a result of change in consumption pattern and private incomes.

• More and more shifting of the customer towards branded products.

• Growing real-estate projects is expected to bring more demand in the market for furnishing fabric and related products;

• Increased disposable income, especially among the middle class along with the already existing high-end customers will fuel the retail boom.

• Our priority categories of product range are expected to continue to witness healthy growth.

However, consumer demand could get impacted due to inflationary pressure as the products of our company form a part of discretionary spend basket. Fluctuation in the foreign exchange may further affect the prices for the products. There is always a cheap competition in the market from the unorganized sector in the same business.

OUTLOOK:

India is one of the leading producers and exporters of home furnishings from bed, bath, and kitchen linen to window dressing, carpets and rugs. The industry is witnessing all-round growth in the global scenario, which is coupled with gradual rise in demand in the housing and infrastructure. Changing life styles and peoples acumen to opt for sophisticated standards are the key factors in its growth pattern too. These factors will help the Company to achieve its projected growth for the future. The Companys continued thrust in retail segment and to extend its reach to the untapped segments has helped in achieving its long-term goals which will lead the Company to the consolidation phase later. The Companys expansion plans in the retail foray will greatly help the Company to improve margins, overall return on the capital and eventually shareholders value.

The Company remains apprehensive about possible changes in government policies, which will help to control the inflation affecting the purchasing power of consumers. Foreign exchange volatility is expected to be under control resulting in reduction in the prices of raw materials and finished goods. Market volatility and fluctuating prices of materials are key concerns, which are to be addressed appropriately at crucial stages to ensure projected growth.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has suitable and adequate system of Internal Control commensurating to its size and nature of operations primarily to ensure that - the assets are safeguarded against loss from unauthorized use or disposition; the transactions are authorised, recorded and reported correctly and the Code of conduct, Policies and applicable statutes are duly complied with.

The Company has established a methodical system of Annual Budgeting and Management Information System (MIS).In addition, administrative and HR activities of the Company are also brought within this purview. The financial results of the Company are reviewed by the Audit Committee every quarter. The composition and role of Audit Committee can be found in the Corporate Governance Report in the Annual Report.

The Company has appointed Internal Auditor to examine the adequacy, relevance and effectiveness of Internal Control Systems. The Top Management and the Audit Committee of the Board review the findings and recommendations of the internal auditor.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

Company has acquired fresh talent during the year for some of the critical leadership positions based on business requirements.

As on March 31, 2020 the company had 29 permanent employees. The company recognizes the importance of human value and ensures that proper encouragement both moral and financial is extended to employees to motivate them.

RISK AND CONCERNS:

In every business activity, risk is inherent and your management is aware about the risk related to the business activity of your Company.Your Company is having a well - defined Risk Management Policy to identify major risks and their timely mitigation to protect the present and future performance of the company. The risks are broadly classified as market led business risk, risk related to foreign exchange, financial risk, change in trends and designs. The working capital management also received its due attention to reduce rising interest cost.

MARKET RELATED Risk: As far as domestic market is concerned your Company is operating in a highly competitive environment both from big and organized sector as well as from small unorganized sector. However, we follow the stringent checks on quality and this help us to maintain consistency in the quality of all our products. The Company is hopeful that by constantly bringing in new designs, collections and with new concepts through innovation and employing new marketing strategies will greatly help it in mitigating the adverse impact apprehended.

FOREIGN Exchange: With respect to foreign exchange exposures, following steps are being taken to limit the risk of adverse exchange rate movement:

a) In respect of export sales, in case we are able to predict the foreign exchange fluctuation trends, we determine our price accordingly and

b) In respect of import of capital goods, whenever we make a contract, the liability is freezed keeping in view the future position of foreign exchange fluctuation.

GOVERNMENT POLICY: The Company remains apprehensive about possible changes in government policies, which might adversely affect the purchasing power of consumers. Market volatility and fluctuating prices of materials are key concerns, which are to be addressed appropriately at crucial stages to ensure projected growth. Adopting suitable strategies depending upon the nature of change so as to retain the market share and profit margin could minimise adverse impact of change in Government policies and fiscal measures.

CAUTIONARY STATEMENT: The statements in the "Management Discussion and Analysis Report" section describes the Companys objectives, projections, estimates, expectations and predictions, which may be "forward looking statements" within the meaning of the applicable laws and regulations. The annual results can differ materially from those expressed or implied, depending upon the economic and climatic conditions, Government policies and other incidental factors. The discussion and analysis must be read in conjunction with the Companys financial statements and notes on accounts.