CAVEAT
This section of the Annual Report has been included in adherence to the spirit
enunciated in the Code of Corporate Governance approved by the Securities and Exchange
Board of India. Shareholders and Readers are cautioned that in the case of data and
information external to the Company, though the same are based on sources believed to be
reliable, no representation is made on its accuracy or comprehensiveness. Further, utmost
care has been taken to ensure that the opinion expressed therein contain its perceptions
on most of the important trends having a material impact on the Companys operations.
The opinions expressed by the management may contain certain forward-looking statements
in the current scenario, which is extremely dynamic and increasingly fraught with risk and
uncertainties. The Company undertakes no obligation to publicly update or revise any of
the opinions or forward-looking statements expressed in this report, consequent to new
information, future events, or otherwise. Estimation and expectation made in the Report
may differ from actual performance due to various Economic conditions, Government Policies
and other related factors.
Global Economy:
The global economy enters 2022 in a weaker position than previously expected. Rising
energy prices and supply disruptions have resulted in higher and more broad-based
inflation than anticipated in many emerging markets and developing economies. Global
growth is expected to moderate from 5.9 in 2021 to 4.4 percent in 2022—half a
percentage point lower for 2022 than in the October World Economic Outlook (WEO), largely
reflecting forecast markdowns in the two largest economies.
Monetary policy in many countries will need to continue on a tightening path to curb
inflation pressures, while fiscal policy operating with more limited space than earlier in
the pandemic—will need to prioritize health and social spending while focusing
support on the worst affected. In this context, international cooperation will be
essential to preserve access to liquidity and expedite orderly debt restructurings where
needed. Investing in climate policies remains imperative to reduce the risk of
catastrophic climate change.
Indian Economy:
According to Organization for Economic Co-operation and Development, the economic
Forecast Summary published in December 2021 highlighted that, after the second infection
wave that peaked in May 2021, the recovery was gaining momentum, and GDP was projected to
grow at 9.4% in the fiscal year (FY) 2021-22 before reverting to 8.1% in FY 2022-23 and 5%
percent in FY 2023-24. Inflation remained close to the upper band of the Reserve Bank of
India (RBI) but should ebb as supply chain disruptions are overcome.
The appearance of a new virus variant, especially if combined with a relaxation of
attitudes, is the major downside risk, together with a less supportive global economic and
financial environment.
The macroeconomic policy mix is well-balanced. The RBI stands ready to act forcefully
if increases in global commodity prices feed into wages and then to core prices. The
government is also committed to investing more in social and physical infrastructure,
although well-targeted, direct fiscal support to vulnerable households and firms should
also be increased.
Industry Structure and Development:
India Woodwork Industry is one of the fastest-growing industries in Indias economy.
India possesses around 100,000 registered wood-ware units and more than 200,000 artisans
along with countless other woodworking-related units in the sector. Wood has always been a
major part of Indian handicrafts and various beautiful things are crafted out of it. India
Woodwork Industry has not only specialized in serving an architectural purpose but also
manufactures furniture both in traditional as well as ultramodern styles.
In the rural areas of India, furniture and other household utensils are carved out of
wood in different shapes and styles.
The wood furniture market in India is competitive due to the presence of a large number
of small and local manufacturers in the market, accounting for a larger share in
production. Southern and Northern India has a high demand for furniture products, but it
is in the South where most manufacturers and distribution networks exist. The need for
kiln-dried hardwood lumber exported from the United States has been rising by the
importers and manufacturers in the market.
The Indian wooden furniture market has enormous opportunities for manufacturers to
innovate and deal with growing demand in the wood furniture market. Local manufactures are
partnering with foreign manufacturers to improve their quality and designs in the market.
The need for modular furniture provides immense opportunities for wooden furniture and
hardware owners in the market. Furniture manufacturers are considering several factors
while designing furniture, such as the furnitures functionality, look, feel, and value
while designing furniture.
Business review:
The Company is not operating since 2011.
Financial Review:
| Particulars |
Year ended 31st March, 2022 |
Year ended 31st March, 2021 |
| Total Income |
-- |
-- |
| Loss (after tax) |
(13.19) |
(15.56) |
Risk (internal and external) and threats envisaged by the management:
The Company is not operating since 2011 and therefore there are no Risk (internal and
external) and threats envisaged by the management.
Internal Control Systems & their Adequacy:
The Company has proper and adequate systems of Internal Control to ensure that all the
assets are safeguarded from loss, damage or disposition. Checks & balances are in
place to ensure that transactions are adequately authorised and recorded and that they are
reported correctly. The Board of Directors considers internal controls as adequate.
Key Financial Ratios:
| Sr. No. |
Ratios |
2021-22 |
2020-21 |
Explanation for significant change |
| 1. |
Debtor Turnover Ratio (times) |
- |
- |
Not applicable as the turnover of the Company is nil. |
| 2. |
Inventory Turnover Ratio (times) |
- |
- |
Not applicable as the turnover of the Company is nil. |
| 3. |
Current Ratio (times) |
0.04 |
0.00 |
Surplus fund available in bank funded through incremental borrowings leading to
increase in ratio. |
| 4. |
Debt Equity Ratio (times) |
(1.04) |
(1.00) |
Not applicable |
| 5. |
Interest Coverage Ratio (times) |
- |
- |
Not applicable as there is no finance cost |
| 6. |
Operating Profit Margin (%) |
- |
- |
Not applicable as the turnover of the Company is nil. |
| 7. |
Net Profit Margin (%) |
- |
- |
Not applicable as the turnover of the Company is nil. |
| 8. |
Return on Net Worth (times) |
0.07 |
0.09 |
Not applicable |
|
On behalf of the Board of Directors |
|
Sd/- |
|
Rashmi Anand |
| Place: Mumbai |
Chairperson & Whole-time Director |
| Date: 24th May, 2022 |
DIN: 00366258 |
+91-9892691696
