Shrenik Ltd Management Discussions

ANNEXURE- 6

A. Overall Review

The Growth rate is in upward trend as compared to the previous year as company has reported loss in the previous year and company has reported profit of Rs. 22.94 lakhs with favorable market conditions which reflect the positive market.

B. Risks and Concerns

Risks and uncertainties are an inherent part of every business, and yet it is important to identify the risks and take proactive steps to mitigate and minimize them. The Company identifies and evaluates risks as early as possible and limits business losses by taking suitable measures. Depending on the dynamics and severity, risks are categorized functions wise and classified further as High Risk, Medium Risk and Low risk.

The Company targets to avoid risks that pose a threat to its sustainable growth. The Company understands that risks can negatively impact fruition of both short-term operational and long-term strategic goals. Risk management is a part of the Companys business planning and controlling process.

C. Internal control systems and their adequacy

The Company has an adequate and effective Internal Control Mechanism in place to ensure efficient conduct of its operations, security of assets, prevention and detection of frauds/errors, accuracy and completeness of accounting records and the timely preparation of financial information.

The internal control systems are further supplemented by Internal Audit carried out by the Internal Auditor of the Company and periodical review by the management. The Company has put in place Proper controls, which are reviewed at regular intervals to ensure that transactions are properly authorized & correctly reported and assets are safeguarded. The Audit Committee of the Board of Directors periodically reviews the adequacy and efficacy of internal control systems and suggests improvement for strengthening these. The Internal Control Systems are implemented to safeguard the Companys assets from loss or damage.

In addition to above, the Company has formulated a Vigil Mechanism and Whistle Blower Policy for its Directors and Employees of the Company for reporting genuine concern about unethical practices and suspected mal-practices.

D. Discussion on financial performance with respect to operational performance

As a result of the challenges faced during the year under review, the total income of the Company was Rs. 1,34,22,64,035/- as compared to Rs. 64,10,29,581/- in the previous year. Despite all the efforts of the Management, the Company has reported a profit of Rs. 22,94,000/-.

The Company has all the plans for tight budgetary control on key operational performance indication with judicious deployment of funds without resorting to any kind borrowing where ever possible.

E. Material developments in Human Resources / Industrial Relations front including number of people employed

Your Companys biggest asset is its employees. The Company believes that the quality of the employees is the key to its success and is committed to equip them with skills. Hence, the Company hires professionals with adequate experience and knowledge on need to need basis.

The Industrial relation of the Company with various suppliers, customers, financial lenders and employees is cordial. The total number of employees stood at 2 as on 31^st March, 2023.

F. Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios and any change in Return on Net Worth, along with detailed explanations thereof, including

*Reasons for % change of more than 25% to Ratios: Change in the Ratios are favourable and due to the positive financial situation of the company in compare to the last year.

G. Cautionary Statement

Statements made in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations and predictions may be forward looking statements within the meaning of applicable laws and regulations. The Companys actual results, achievements may differ materially from those projected in any such forward looking Statements. The Company assumes no responsibility to publicly amend or revive any forward looking statements on the basis of subsequent developments, information or events.

For and on behalf of the Board