A. Overview of the Indian Economy:
The Indian economy has fully recovered to the pre-pandemic real GDP level of 2019-20, according to the provisional estimates of GDP released on May 31, 2022. Real GDP growth in FY 2021-22 stands at 8.7%, which is 1.5% higher than the real GDP in FY 2019-20. These figures are associated with stronger growth momentum, indicating increased economic demand. The investment rate in the fourth quarter increased to its highest level in the previous nine quarters. Moreover, capacity utilization in the manufacturing sector rose in the fourth quarter, as against the third quarter, implying a build-up in demand, which is consistent with the growth objectives of the Indian economy.
Future capital spending of the government in the Indian economy is expected to be supported by factors such as tax buoyancy, streamlined tax system, thorough assessment and rationalization of the tariff structure and digitization of tax filing. In the medium term, an increase in capital spending on infrastructure and asset-building projects is set to increase growth multipliers. Furthermore, revival in monsoon and Khari sowing helped the agriculture sector gain momentum. As of July 11, 2022, the South-West monsoon has covered the entire country, resulting in 7% higher rainfall than the normal level.
India has emerged as the fastest-growing major economy in the world, and is expected to be one of the top three economic powers globally over the next 10-15 years, backed by its robust democracy and strong partnerships.
In the last decade, India has been one of the fastest-growing economies, with annual growth rate averaging 6-7%. The increase in GDP can be attributed to a variety of reasons, including favorable demographics, influx of investment capital and technological efficiency and productivity gains.
C. Industry structure and development:
The growth of Company?s Services is based on the push-and-pull effects of Demand and Supply determinants like the economic trends in India & Outside, growth of infrastructure. It always remains key area of the Company to provide innovative Service in design and finishing to the customers without compromising with quality. Today, per head income in India is increased which converted into purchasing power of a person. However, looking to the stability of Central Government, clear vision and mission of Government to provide Stable income to every family at possible level etc. the growth rate of this industry is expected around 7 to 8% in coming year. The population in India has the youngest persons in the world. The mixture of newness and economic productivity is result into investments in interior as well as exterior decoration. In India urbanization is the big matter which may generate more demand for Decoration Services and will result into increase in demand of associated products. The growth rate of this industry in the country is expected to increase with the people?s preferences now leaning towards a safer, cleaner and more secure environment.
D. Opportunities and Threats:
> Good Brand Image: Company has a good brand image and quality Services in the Indian market.
> Wide Service range: Company has very wide service coverage for social and cultural events.
> Superiority over its competitors: Company remains eager in providing latest designs and Service to its customers.
> Online Services: Company provides Online Services to its Customer. The company will take effective steps to take benefit of this opportunity.
> Expand Market Network: The Company continues to expand its marketing networks by appointing Consignment Agent, branches, distributors, dealers etc. in various states in all over the country.
> Vaccination: The Government of India has been providing free vaccination for Covid-19, employees and other concerned persons can continue to work from the office which is in the interest of both Company and its employees.
> High Competition Era: The Decor 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.
> Under cutting of price: Due to high competitions 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.
> Third wave of Pandemic: As the third wave of pandemic is expected, the Country?s economy will be adversely affected resulting into imposition of lockdowns and safety guidelines. Due to which the Company has to implement guidelines and ensure that the environment of workplace is safe, clean and secure.
E. Segment-wise or Product-wise performance:
The Company operates in single segment i.e. Special Consumer services.
The Turnover of the Company for the Financial Year 2021-22 is Rs. 118,504,000/-.
F. Future Outlook:
The Company?s outlook for the year 2021-22 is to add more products in the product range as per requirement in the market. Due to unexpected effects of Covid 19 pandemic, all social and cultural events can be restricted in future and as a result FY 2021-22 may prove to be very tough for the Company.
G. Internal control system and their adequacy:
Company has an adequate Internal Controls system aimed at achieving efficiency in operations, optimum utilization of resources and compliance with all applicable laws and regulations. Your company has internal control Department which carried following activities on regular basis.
> Reviewing accounting system and related controls.
> Examining management of financial and operating information.
> Examining the economy, efficiency, effectiveness and proprietary of operations.
> Identifying the risks in relation to key business processes and verify whether an effective control exists to mitigate these risks.
> Suggesting measures for optimizing the Business Process Controls.
> Reviewing adherence to corporate policies.
> To examine and audit the areas in consultation with the management and to report on critical issues the internal controls Department headed by Internal Auditor of the company. The Company?s internal control system is designed to ensure management efficiency, measurability and verifiability, reliability of accounting and management information, compliance with all applicable laws and regulations, and the protection of the Company?s assets and so that the main company risks (operational, compliance-related, economic and financial] are properly identified and managed over time. The Board of Directors, responsible for the internal control system, sets the guidelines, verifying its adequacy, effectiveness and application.
H. Discussion on financial performance with respect to operational performance
The financial performance of the Company for the Financial Year 2020-21is described in the report of the Board of Directors? of the Company.
I. 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.
J. 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|
|44, Sharad Flats, Opp. Dharnidhar Temple,||Shangar Decor Limited|
|Paldi, Ahmedabad - 380 007||Sd/-||Sd/-|
|Place: Ahmedabad||Managing Director||Director|
|Date: 7thSeptember, 2021||DIN: 00787630||DIN:01601299|