Uniply Decor Ltd Management Discussions.

INDIAN ECONOMIC OVERVIEW

India has retained its position amongst the fast-growing economies in the world. Year 2019-20 in India, has been a year of slowdown in line with global economic developments. In comparison to growing at 6.1% in 2018-19, the Indian economy is estimated to have grown at 4.2% in 2019-20. The commencement of the US-China trade war has opened new opportunities for India but COVID 19 has dampened immediate realization of such potential opportunities. The macro economic environment, however has remained weak for larger part of the financial year and the Indian Economy has demonstrated sustained sluggishness in 2019-20. (Source: CSO, Economic Times, World Bank)

ABOUT THE COMPANY

The Company is headquartered in Chennai with a pan India distribution network of its products. The Company has two manufacturing facilities in Chennai, Tamilnadu and Gandhidham, Gujarat where it manufactures plywood, laminates and veneers. Besides there are other complementary products that the Company manufactures/ sources. However, during the year, with an idea to prune its overall costs and fixed overheads, the company has focusses on consolidating its manufacturing facilities in Gujarat. This has resulted in decreased overall business due to closed manufacturing lines which is momentary.

FINANCIAL REVIEW, 2019-20

? Income for the year was Rs. 52.36 crores compared to Rs. 164.84 crore in the previous fiscal. ? Profit before tax for the year was (Rs. 2.90 crores) compared to Rs. 12.70 crores in the previous fiscal. ? Profit after tax for the year was (Rs. 4.29 crores) compared to Rs. 8.94 crores in the previous fiscal. The Company has utilized the year 2020 to consolidate its manufacturing facilities in Gujarat and bring down its overall fixed overheads. In this process, the company has undertaken a process to trim its work force, make it competitive, productive and lean.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate system of internal control which is line with the size and nature of its operations.

HUMAN RESOURCES

The Company continues to focus on people- development by leveraging technology. During the year the Company has implemented a process to make its human work force agile, lean and competitive and has also consolidated its manufacturing facilities in Gujarat.

QUALITY MANAGEMENT SYSTEM

The Company continues to lay a keen emphasis on qualitative excellence to ensure total customer satisfaction. The Companys mission is to provide customers with products that match international standards and surpass their expectations.

CAUTIONARY NOTE

The above statements are as perceived by the Directors based on the current scenario and the input available. Any extraneous developments and force majeure conditions may have an impact on the above perceptions.

ACKNOWLEDGEMENTS

The Directors place on record their deep appreciation to employees for their hard work, dedication and commitment. The Board places on record its appreciation for the support and co-operation your Company has been receiving from its suppliers, retailers, and all its business partners. The Company will continue to build strong links with its business associates which is consistent with consumer interests. The Directors also take this opportunity to thank all investors, clients, vendors, banks, governmental agencies and regulatory authorities and stock exchanges for their continued support.

For and on behalf of the Board of Directors
Keshav Narayan Kantamneni
Chairman
Place: Chennai
Date: 24.04.2021