Shashwat Furnis. Management Discussions

The Management of the Company is pleased to present its report on the Industry Scenario including on the Companys performance during the financial year 2022-23.


Global Economic Outlook

Global growth is projected to fall from an estimated 3.5 percent in 2022 to 3.0 percent in both 2023 and 2024. While the forecast for 2023 is modestly higher than predicted in the April 2023 World Economic Outlook (WEO), it remains weak by historical standards. The rise in central bank policy rates to fight inflation continues to weigh on economic activity. Global headline inflation is expected to fall from 8.7 percent in 2022 to 6.8 percent in 2023 and 5.2 percent in 2024. Underlying (core) inflation is projected to decline more gradually, and forecasts for inflation in 2024 have been revised upward.

The recent resolution of the US debt ceiling standoff and, earlier this year, strong action by authorities to contain turbulence in US and Swiss banking reduced the immediate risks of financial sector turmoil. This moderated adverse risks to the outlook. However, the balance of risks to global growth remains tilted to the downside. Inflation could remain high and even rise if further shocks occur, including those from an intensification of the war in Ukraine and extreme weather-related events, triggering more restrictive monetary policy. Financial sector turbulence could resume as markets adjust to further policy tightening by central banks. Chinas recovery could slow, in part as a result of unresolved real estate problems, with negative cross-border spillovers. Sovereign debt distress could spread to a wider group of economies. On the upside, inflation could fall faster than expected, reducing the need for tight monetary policy, and domestic demand could again prove more resilient.

In most economies, the priority remains achieving sustained disinflation while ensuring financial stability. Therefore, central banks should remain focused on restoring price stability and strengthen financial supervision and risk monitoring. Should market strains materialize, countries should provide liquidity promptly while mitigating the possibility of moral hazard. They should also build fiscal buffers, with the composition of fiscal adjustment ensuring targeted support for the most vulnerable. Improvements to the supply side of the economy would facilitate fiscal consolidation and a smoother decline of inflation toward target levels.


Our company is engaged in processing of semi-finished furniture products into finished products. Our company specialize in developing a qualitative range of Industrial Furniture and Restaurant and Cafe Furniture, Garden and Outdoor Furniture Vintage Furniture, Mirror Frames, Wall clocks and various other decoration & handicrafts objects. We are instrumental in presenting a wide assortment of exclusively designed products, such as Restaurant Furniture, Cafe Furniture, and Metal Furniture. Our expert professionals are devoted to developing an exclusive product range capable to gain a nationwide appreciation for its remarkable finish, unique designs, trendy colour combinations, flawless detailing, unbreakable quality and higher durability. It is one of the Trade Indias verified and trusted sellers providing satisfactory range of all kind of furniture.

Our Companys proficiency lies in understanding the specific requirement of our customers and based on which we place the order of our products to manufacturer having requisite manufacturing facilities. We source our products from reliable manufacturers of the market. We purchase the order in semi-finished condition and then process the same by finishing, assembling and repairing turning them into finished products. Our company make further sales to wholesalers, retailers and customers through online platforms such as Indiamart, Trade India, Exporter India and Trade Pooja etc.

We are committed to gain a distinguished repute and as an emerging company, our objectives towards differentiation are further strengthened by our rigorous research and analysis activities. We have implemented advanced technology that equips us to design and develop decorative items with computerized processes. Our products are cherished by the corporate sector and widely utilized for gifting and decorative purpose in the hospitality industry. We owe our rapid growth to the allied support of leading vendors who underpin our vigilant approach to source premium quality raw products. Besides, our production efficiency gained us huge acclamation across the country.


We believe that the following are our primary competitive strength:

Experienced Management Team: -

Our management team is experienced in the industry in which we are operating and has been responsible for the growth of our operations and financial performance. Our Promoter Mr. Hitesh Karnawat leads the company with his vision. They are having an adequate experience in the line of the business undertaken by the Company and look after the strategic as well as day to day business operations. The strength and entrepreneurial vision of our Promoter and management have been instrumental in driving our growth and implementing our strategies. We believe that the experience of our management team and its in depth understanding of the furniture market in the region will enable us to continue to take advantage of both current and future market opportunities.

Existing Supplier Relationship: -

Our existing supplier relationship protects the business with terms of supply and pricing of the products, the quality of the products offered etc. We, being a small and medium size organisation, rely on personal relationships with suppliers. Our company enjoys existing relationship with our suppliers. Further we also leverage the past experience of our management in maintaining effective supplier relationship.

Scalable Business Model:-

We believe that our business model is scalable. Our business model is customer centric, and requires optimum utilization of our existing resources, assuring quality supply and achieving consequent economies of scale. The business scale generation is basically due to development of new markets both domestic and international by exploring customer needs and by maintaining the consistent quality output.

Quality Assurance and Standards: -

We believe in providing our customers the best quality products. Our ability to maintain and improve the products we offer to customers enables us to generate stable revenue and minimize customer complaints. We are very particular from usage of right quality of material for production. Our dedicated efforts towards the quality of material have helped us gain a competitive advantage over others. We believe that our quality production has earned us a goodwill from our customers.


Leveraging our Market skills and Relationships

Our Company believes that our business is a by-product of relationships. This is a continuous process in our organization and the skills that we impart in our people give importance to customers. We aim to enhance the growth by leveraging our relationships and further enhancing customer satisfaction. We plan to increase our customers by meeting orders in hand on time, maintaining our customer relationship and renewing our relationship with existing buyers.

Improving functional efficiencies

Our Company intends to improve functional efficiencies to achieve cost reductions to have a competitive edge over the peers. Our employees are regularly motivated to increase efficiency with error free exercise. We believe that this can be done through continuous process improvements. Further we believe that this can be done through domestic presence and economies of scale. Increasing our penetration in existing regions with new range of products, will enable us to penetrate into new catchment areas within these regions and optimize our infrastructure. As a result of these measures, our company will be able to increase its market share and profitability.

Enhance customer base and to establish long-term relationships

We intend to cater to the increasing demand of our existing customers and also to increase our existing customer base by enhancing the distribution reach of our products in different parts of the country. We propose to increase our marketing and sales team which can focus in different regions and also maintain and establish relationship with customers. Enhancing our presence in additional regions will enable us to reach out to a larger population. Further our company believes in maintaining long term relationship with our customers in terms of increased sales. We aim to achieve this by value adding value to our customers through innovation, quality assurance and timely delivery of our products.

To build-up a professional organization

As an organization, we believe in transparency and commitment in our work and with our customers. We have an experienced team for taking care of our day-to-day operations. We also consult with external agencies on a case-to-case basis on technical and financial aspects of our business. We will consistently put efforts among its group of experienced employees to transform them into an outstanding team of empowered professionals which helps in further accelerating the wheels of development of the Organization.

Expand geographical reach

We intend to expand our presence by identifying markets where we can provide cost-effective and quality products to prospective customers. Further, we seek to capitalize on our existing experience, established contacts with customers and manufactures.


^ Potential to provide other value assed services ^ Expanding new geographical area ^ Opportunities in Indian Market

^ Government thrust for development will boost in rise in demand.


^ Increased Competition from Big Players ^ Change in Government Policies

^ Rising labour wages

^ There are no entry barriers in our industry which puts us to the threat of competition from new entrants


The Company is primarily engaged in the processing of semi-finished furniture products into finished products and manufacturing through job work of furniture and handicraft items, which in the context of AS 117 on "Operating Segments" constitutes a single reporting segment. Further, there are no reportable geographical segments.


Handicrafts is one of the most important sectors in the Indian economy employing more than seven million people. The country produces woodware, artmetal wares, handprinted textiles, embroidered goods, zari goods, imitation jewellery, sculptures, pottery, glassware, attars, agarbattis, etc. The handicraft industry in India is dominated by female artisans with over 56% of the total artisan. The country has 744 handicraft clusters employing nearly 212,000 artisans and offering over 35,000 products.

India is one of the largest handicrafts exporting country and a clear leader in the homemade carpet segment both in terms of volume and value. During April 2022-February 2023, the total exports of handicrafts stood at US$ 3 billion. In 2021-22, the total exports of Indian handicrafts were valued at US$ 4.35 billion, a 25.7% increase from the previous year.

India boasts of a rich heritage of unique craftsmenship, woodwork, carpentry & furniture with regions like Jodhpur emerging as demand centers for the local industry. Indias Furniture Exports witnessed a 220% increase from USD 810 Mn in 2018-19 to USD 2.6 Bn in 2022-2023.


The Company is concerned about prevailing exposure norms, financial position, entry of new players in the market, rising competition from banks & multilateral agencies, uncertain business environment, fluctuation in rupee, likely increase in cost of capital due to volatile market conditions. Further, the state of business and policy environment in the country also has a cascading effect on the interest-rate regime, cost and availability of raw materials and gestation period & capital outlays required for raw material.


The Company maintains an adequate system of Internal Controls including suitable monitoring procedures to ensure accurate and timely financial reporting of various transactions, efficiency of operations and compliance with statutory laws, regulations and Company policies. Suitable delegation of powers and guidelines for accounting have been issued for uniform compliance. In order to ensure that adequate checks and balances are in place and internal control systems are in order, regular and exhaustive Internal Audit of Office/plant are conducted by the in-house Internal Audit Division and external professional audit firm. The Internal Audit covers all major areas of operations, including identified critical/risk areas, as per the Annual Internal Audit Programme. The Audit Committee of Directors periodically reviews the significant findings of different Audits, as prescribed in the Companies Act, 2013 and in the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.


Revenue from the operations of your Company for the year 2022-23 was Rs.456.80 Lakhs which is 69.88% more than Rs.137.60 Lakhs in the previous year. Profit before Depreciation Interest & Tax for the current year was Rs. 22.57 Lakhs against Rs. 15.75 Lakhs in the previous year. Profit after tax for the current year at Rs. 21.15 Lakhs was increased by 50.26% over Rs. 10.52 Lakhs in the previous year. Detailed report on operations of and structure of Business of the Company has been included in Management Discussion and Analysis Report, which forms part of this Annual Report.


The Company gives utmost importance to the capacity-building and well-being of its employees. The Industrial Relations in the Company continued to be on a cordial note. There are regular interactions between the management and the representative-associations on issues pertaining to employee welfare. The Company has an atmosphere of trust and cooperation, which results in a motivated work force and consistent growth in the performance.


As per the recent amendments to the SEBI Listing Obligations & Disclosure Requirements (LODR), we give below additional information in respect of financial parameters that are applicable to our company:

Detail of Significant changes (i.e. change of 25% of more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanation therefore as under:

a) Debtor Turnover Ratio: The Debtor Turnover ratio as on March 31, 2023 is 4.33 times as compared to 3.07 times in the previous year.

b) Inventory Turnover Ratio: The Inventory Turnover Ratio as on March 31, 2023 is 5.26 times as compared to 7.65 times in the previous year.

c) Interest Coverage Ratio: The Interest Coverage Ratio as on March 31, 2023 is 3.88 times as compared to 0.00 times in the previous year.

d) Current Ratio: The Current Ratio as on March 31, 2023 is 9.21 times as compared to 4.21 times in the previous year.

e) Debt Equity Ratio: The Debt Equity Ratio as on March 31, 2023 is 0.29 times as compared to 0.00 times in the previous year.

f) Operating Profit Margin: The Operating Profit Margin Ratio as on March 31, 2023 is 4.94% as compared to 11.45% in the previous year.

g) Net Profit Margin: The Net Profit Margin Ratio as on March 31, 2023 is 4.63 % as compared to 7.65% times in the previous year.

Cautionary Note

Certain statements in "Management Discussion and Analysis" section may be forward looking and are stated as required by applicable laws and regulations. Many factors may affect the actual results, which could be different from what the Management envisages in terms of future performance and outlook.