taaza international ltd share price Management discussions

1. a. Industry structure, developments and performance

The company is into Trading of Building Material, Bio Pesticides and Bio Fertilizers and pulses. There is a huge demand of trading materials, pesticides in the Country. One of the industry having faced maximum impact of the pandemic in 2020, the building materials segment, during the year 2021-22, the Company could not get much business because of inadequate working capital. However, there is much scope in this industry and the Company believes to generate more business in the future.

With the increasing food safety awareness among the households, coupled with rising environmental issues, in 2019, the Government of India has banned around 18 active chemical ingredients, including ammonium sulphamate, azinphos-ethyl, and dicrotophos, which are widely used across the country to control plant pests. The ban on pesticides in developed nations is also likely to affect the Indian agricultural commodity export market, leading to a further ban on pesticides in the country in the coming years. For instance, rice export from India to European countries plunged by 40% in 2018, as rice samples failed to meet the minimum residue level in the European region. Such factors are likely to boost the usage of biopesticides in the country.

b. Opportunities and Threats:

Today, the building material industry stands at around $225 Billion in terms of market size. The projected growth rate for 2022 is around 10%, and it is estimated to clock a CAGR growth of 8% to 9% in the next five years. In fact, sub-segment within this industry like Ready-Mix- Concrete, uPVC, Tiles are all gearing up for an exciting 2023. This results in a need for a partnership between government and the business sector, namely, government facilitating an enabling environment for private sector delivery, living up to its delivery commitments, and creating a climate for business confidence.

While demand forecasts and consumer buying trends look promising, this growth can only be made seamless by supportive government policies. There should be provisions to allow housing loans for all segments, irrespective of financial status. More often than not, affordable housing schemes and loans have to pass through tedious scrutiny because customer credit profiles may not meet standard financing norms. Factors such as interest rates, mining rights, labor regulations, transportation systems, power generation, crime are under the influence of other government and semi-government departments.

The increasing cost of input materials is still impacting the overall demand and cash flow, the industry remains hopeful that the scenario will change and the coming year will see the prices and the situation stabilising.

c. Segment-wise or product-wise performance:

The Company could not generate any revenue during the year.

d. Outlook:

The Ready-Mix-Concrete, uPVC and aluminium doors and windows, and the tiles segments are expected to recover and become stronger by gaining most of the pre-pandemic momentum back. The business and the demand looks promising. With people shifting to Work-from- Home/Hybrid working, and thus spending more time within the vicinity of their homes, there was an increase in the demand for building materials this year and this optimism will grow in 2022, where quality conscious customers will be further driving the demand and sales especially for high end products in these categories.

The industry has increased its investments in digital, including through mergers and acquisitions (M&A), as it prepares to shift toward connected construction capabilities. These technologies can help E&C firms support initiatives such as smart cities, urban air mobility, and climate change programs and help enhance internal operational efficiencies, reduce costs, and improve margins. 2022 is likely to be an exciting year for the engineering and construction industry, and our annual outlook explores five key themes to watch closely.

e. Risks and concerns:

a) The product is at once subjected to local, national and international competition.

b) Any adverse change in the policies of the Government, Recession etc may further adversely affect the profitability.

c) Internal Control System and its adequacy.

d) The Company has a proper and adequate internal control system commensurate with its size and

e) nature of business to meet the following objectives:

• Providing assurance regarding the effectiveness and efficiency of operations;

• Efficient use and safeguarding of resources;

• Compliance with policies, procedures and applicable laws and regulations; and.

• The Audit Committee actively reviews the adequacy and effectiveness of internal control systems and suggests improvements for strengthening them time to time.

• Risk assessment reports received from various departments are reviewed periodically and steps are initiated for elimination whenever needed.

f. Internal control systems and their adequacy:

The Company has an adequate internal control system which commensurate with the size and nature of its business. The internal control system is being supported by regular reviews by management with suitable review mechanisms in place to ensure reliability of financial and all other records to prepare financial statements and other data. Further the Audit Committee of the Board review the findings and suitable implementations are affected.

g. Discussion on financial performance with respect to operational performance:

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and international markets in which the Company operates, changes in the Government regulations, tax laws and other statues and other incidental factor.

h. Material developments in Human Resources / Industrial Relations front, including number of people employed.

The Company has a group of able and experienced employees. The Company believes that the quality of its employees is the key to its success in the long run. The Company continues to have cordial relations with its employees and provides personal development opportunities for all round exposure to them. Further, we also encourage individual and team awards to sustain and institutionalize the various workforce practices. This helped in giving lots of encouragement to the workforce who have been striving hard to achieve various goals.

i. Details of changes in key financial ratios, along with detailed explanation thereof

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor, including:

RATIOS:

Particulars	2021-22	2020-21
Debtors turnover ratio	-	-
Inventory turnover ratio	-	-
Interest coverage ratio	-	-
Current ra tio	10.6 Times	10.8 Times
Debt equity ratio	0.08 %	0.082 %
Operating profit margin (%)	-	-
Net profit margin (%)	-	-
Return on Networth	(0.03%)	(0.053%)

j. Details of any change in return on net worth as compared to the immediately previous financial year along with a detailed explanation thereof: There is (0.023%) change on return on net worth as compared to the immediately previous financial year.

2. Disclosure of Accounting Treatment:

The Company has not carried out any treatment different from that prescribed in Accounting Standards.