beekay niryat ltd Management discussions

The management presents its analysis report covering performance and outlook of the Company. The report has been prepared in compliance with corporate governance requirements as laid down in the listing agreements. The management accepts responsibility for the integrity and objectivity of the financial statements. However, investors and readers are cautioned that this discussion contains certain forward looking statements that involve risk and uncertainties. The performance of the Company showed decreasing trend as compared to the previous years. The company is trying and searching for better growth avenues of sales revenues and net profits. Your Company planned and implemented expansion in automation of its various business processes in operational levels. All this will benefit the Company by reducing human intervention in operational processes, accurate product analysis for speedy and efficient results.

INDUSTRY STRUCTURE AND DEVELOPMENT

During the year under review, Government of India increase the reservation norms from 90% to 100% for packing food grains and retained the norms at 20% in respect of packing of Sugar under the Jute Packaging Materials (Compulsory use in packing commodities) Act, 1987 (JPMA). This decision is in the larger interest of the workforce engaged in the Jute Industry and will give a fillip towards the development of the Jute Industry. Due to a short crop in 2022-23 season, the availability of raw jute during the year under review was under pressure, leading to higher average cost of raw jute as compared to previous year. Reward in the form of duty free scrips of 7% of realised FOB value in free foreign currency under Merchandise Exports from India Scheme (MEIS) is providing much needed assistance in promoting exports of Jute Goods from India. In order to boost and sustain demand for Jute Goods, diversification of Jute Sector, improving the quality and productivity of raw jute, continuous research and development are essential.

OPPORTUNITIES AND THREATS/ RISKS & CONCERNS

Opportunities

In view of rising concern for environment and global warming, jute products are getting preference over other substitutes. Demand for diversified jute goods is increasing due to its functional value and increasing awareness for use of biodegradable products. There may be opportunities for export of jute products at attractive prices, which in turn may result in an increase in demand for raw jute.

Risks & Concerns / Threats

Due to low production, the price of raw jute generally prevails over the MSP determined by the Government as a result it is becoming difficult for your Corporation to procure raw jute underMSP.

It is also risky to procure raw jute at ruling price for commercial operation.

There are various threats to the Company such as the market Competitors, which indulge in cost cutting of the product, which forces the Company to sell its product as low cost. This also led to loss to the Company. On the other hand, Companys raw material is based on agro product which is affected by calamities, which deteriorate the quality of the product, which is the major threat to the Company.

SEGMENT WISE OR PRODUCT-WISE PERFORMANCE

The performance of the Company during the year is as under:-

(Rs. /Lakhs)

PARTICULAR	2022-23	2021.22
PBDAI	130.71	59.48
PAD	130.4	59.48
PAT	97.37	41.86

OUTLOOK

Jute crop for the season 2022-23 is expected to be better in the light of favorable weather conditions and initial encouraging reports of higher sowing. Accordingly, availability of raw jute is expected to be higher. Consequently, the prices of raw jute are expected to remain stable or may come down from present level.

There has been regular flow of Government orders keeping good domestic demand. On export front, we are exploring to increase our customer base in Hessian and consumer products. Considering overall market scenario, demand of jute goods will remain buoyant. Looking to the overall market conditions, the outlook for the current year appears to be promising.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has adequate internal control system to safeguard the companys assets from any loss or damage, to control cost, prevent revenue loss and required financial and accounting controls and to effectively implement the applicable accounting standards.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES/ INDUSRIAL RELATIONSFRONT

Your Company maintained good industrial relation during the year under review. We believe that the people are the most valuable assets of the company as they contribute significantly to the achievement of business objectives. During the year, various HR measure were taken to make the HR policies up to the required business needs. The Company has strong dedicated term of employees and they have shown commitments, competence and dedication in all area of business.

DETAILS OF SEGNIFICANT CHANGES IN KEY FINANCIAL RATIO

During the year under review, the Company has earned a profit before Interest, Depreciation & Tax of Rs. 130.71 lacs as compared to profit 59.48 lacs in previous year. The net profit for the year under review has been Rs 97.37lacs as compared to the previous year net profit of Rs. 41.86 lacs. Your Directors are continuously looking for avenues for future growth of the Company in Jute Industry.

CAUTIONARY STATEMENT

Statement in the Management Discussion and analysis Report describing the Companys objectives, estimates etc. may be "forward looking statement" within the applicable laws and regulations. Actual results may vary from these expressed or implied; several factors that may affect Companys operations include Raw Material prices, Government policies and several other factors. The Company takes no responsibility for any consequences of the decision made, based on such statements and holds no obligation to update these in future.