Victory Paper & Boards (India) Ltd Management Discussions.

Management Discussion and Analysis mainly comprise of the statements which, inter-alia, involve predictions based on perceptions and may, therefore, he prone to uncertainties. It is the sum total of the Companys expectations, beliefs, estimates and projections which are forward looking within the meaning of applicable laws and regulations. The actual results could differ materially from those expressed herein specifically or impliedly.

INDUSTRY SECTOR AND DEVELOPMENT

Your Company is primarily involved in the business such as Garments and Aluminium roofing sheets.

OPPORTUNITIES

The major opportunity for the Company is demand and usage of garments has increasing and it will create huge the opportunity for the company, Aluminium, the "Metal of Future" is the fastest growing metal, Production and Consumption of Aluminium in India has increased during FY 2020- 21.

THREATS

The major threat is always change in Government policy. Any adverse change will affect the industry. Another major threat to the Industry is the shortage of labor, Shortage of skilled labor and the increase in demand resulting in increased wages & overhead costs.

SEGMENT-WiSE PERFORMANCE.

For Aluminium division of the Company, there has been a significant increase in revenue contributing a total of Rs, 7,18 Crores compared to Rs. 4.25 Crores in the previous year. The garments division of the Company has contributed Ks. 10.28 Crores during the reporting period.

OUTLOOK

The whole world has fallen into economic recession consequent to the COVID pandemic and aluminium and garments industry is also not going to be an exception from the effects, Textile is one of the majorly affected industry world over and being a Company catering to this segment, it could be a real challenge for the company to maintain the growth in the periods to come.

The new financial year has started with a country wide lock down due to the pandemic resulting loss of production and sales. Though production has resumed after the lock down was lifted there are challenges in the market due to continuing uncertainty on regional restrictions of movement etc, With new markets for exports being explored, the company is hopeful of utilising the whole capacity and make up for the lost time

RISK AND CONCERN

The Company recognises that risk is an integral part of business anti is committed to managing the risks in a proactive and efficient manner. As always, volatility in the price of aluminium will affect the performance of the Company.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has proper and adequate internal control systems to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and those transactions are authorized, recorded and reported correctly.

PERFORMANCE

Your Company has constantly trying to increase its sales as well as profitability. The detail of financial and operational performance is provided in the Boards Report,

LONG TERM AND SHORT TERM STARTERGY

The Company sells its products directly to the customers and its strategy is to work closely with its major customers and align its business operations and investment decisions according to their requirements. The Company will also make continuous efforts to explore other growth opportunities

SIGNIFICANT CHANCES IN FINANCIAL RATIOS

There is no significant change in key financial ratios as if compared to the ratios of previous financial year,

DEVELOPMENT IN HUMAN RESOURCE / INDUSTRIAL RELATIONS

The company places high importance on the development of its human resources. It imparts regular training to its employees to make them more focused to adapt to the constant change in the business environment, The Company is giving direct employment to 578 employees Industrial relation in the units was satisfactory.

CAUTIONARY STATEMENT

Estimates and expectations stated in this Management Discussion and Analysis may be "forward- looking statement" within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed of implied. Important factors that could make a difference to your Companys operations include economic conditions affecting demand / supply and price conditions in the domestic and international markets, changes in the Government regulations, tax laws, other statutes and other incidental factors.