V R Woodart Ltd Management Discussions

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.

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.

Opportunities:

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.

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.

Business and Financial Review:

The Company is not in operations since 2011.

Risk (internal and external) and threats envisaged by the management:

Since the Company is not in operations since 2011, 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 commensurate with the size and operations of the Company. Checks & balances are in place to ensure that transactions are adequately authorized and recorded and that they are reported correctly. The Company follows all Indian Accounting Standard for maintaining the books of accounts and reporting of financial statements.

Outlook/Company updates:

Pursuant to the preferential issue of equity shares and convertible warrants and, the re-classification of the existing Promoters/Promoter Group as Public Category/Non Promoters & classification of Ms. Maddukuri Mounica and Mrs. Minal Patil as the Promoters/Promoter Group of the Company more particularly described in the Directors Report, the Company, under the new management, plans to utilize the proceeds raised therefrom for meeting the working capital requirements, expansion and diversification of business and other objects as mentioned in the Explanatory Statement of the ExtraOrdinary General Meeting dated April 04, 2025 approving the said Preferential Issue.

Human Resources and Industrial Relations:

As stated above, since the Company has been non-operational, there are no employees in the Company.

Key Financial Ratios: