Shangar Decor Ltd Management Discussions.


A. Overview of the Indian Economy:

The Indian economy was negatively impacted by an unprecedented health crisis in 2020-21 with the highly contagious corona virus (Covid-19) spreading across the country. In response to the pandemic, Government has taken several proactive preventive and mitigating measures starting with progressive tightening of international travel, issue of advisories for the members of the public, setting up quarantine facilities, contact tracing of persons infected by the virus and various social distancing measures. Government imposed a strict 21 days nationwide lockdown from 25th March, 2020, under the Disaster Management Act, 2005, with subsequent extensions and relaxations, to contain the spread of Covid-19 while ramping up the health infrastructure in the country. The lockdown measures, imposed to contain the spread of Covid-19 pandemic in India, ubiquitously affected employment, business, trade, manufacturing, and services activities. The real Gross Domestic Product (GDP) growth is projected to contract by 7.7 percent in 2020-21 as compared to a growth of 4.2 percent in 2019-20. GDP growth, however, is expected to rebound strongly in 2021-22 owing to the reform measures undertaken by the Government.

The Government announced a special economic and comprehensive package under Atmanirbhar Bharat of 20 lakh crore - equivalent to 10 percent of Indias GDP - to fight the Covid-19 pandemic in India. Several structural reforms announced as part of the package, inter alia, include deregulation of the agricultural sector, change in definition of MSMEs, new PSU policy, commercialization of coal mining, higher FDI limits in defence and space sector, development of Industrial Land/ Land Bank and Industrial Information System, Production Linked Incentive Schemes, revamp of Viability Gap Funding scheme for social infrastructure, new power tariff policy and incentivizing States to undertake sector reforms.

B. Outlook:

Indias GDP is expected to contract in FY 2020-21, attributing the downward revision to Covid-19 induced supplydemand shocks. Although, the Governments commitment toward structural reforms and social welfare measures will help in economic recovery. Further, resolution for Atmanirbhar Bharat along with collective effort of all stakeholders will contribute to rebuilding a strong economy.

C. Industry structure and development:

The growth of Companys 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 peoples 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.

> Manpower: The one of the common problem emerged for finding talent with competence or even skilled man power for Decor industries irrespective of the company Brand or Size.

> 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 Countrys economy will be adversely affected resulting into imposition of lockdowns and safety guidelines. Due to which the Company has to implement guidelinesand 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. Decorative, commercial and other Service division has been adversely affected due to pandemic Turnover of the company has decreased from Rs. 6.93 Cr to Rs. 3.44 Cr.

The company has also planned course of action for achieving more improved margins by better control over fixed overheads and better resource management in the next year. Directors are hopeful for higher turnover and improved margins for the next year.

F. Future Outlook:

The Companys 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.

After at the time, the strict actions taken by the government for restricting the spread of third wave of COVID- 19 Pandemic, may result in normalcy.

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 Companys 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 Companys 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/-
SamirbhaiShah Saumil Shah
Place: Ahmedabad Managing Director Director
Date: 7thSeptember, 2021 DIN: 00787630 DIN:01601299