dekson castings ltd Management discussions

Industry Structure and Outlook:

Since Last 2 years, your company was trying to balance tight rope by increasing revenue and reduce the debt and we are happy to share that our long term borrowing has reduced by 16% last year. We have paid up almost 1 crore in our Solar loan taken from SIDBI. However, with current uncertain situation in two wheelers industry, we have taken host of measures to increase customers and also products. We expect this, will need capital investment, tough your company will try to utilize all the current capacity even for new customer / products.

This would impact our goal of reducing debt immediately, but eventually in few years the Company is hoping to become debt free.

Segment wise performance:

Segment wise sales breakup of the Company for the Financial Year 2022-23 is as follows:

Segment wise Sales - F.Y.2022-23

Type of Crop	Sales	% as to the Total Sales
	31.03.2023
Aluminium Outer Tube Casting	543054820	99.81%
Job Work	985929	0.18%
Total	544040749	100%

Internal Control Systems and their adequacy:

The Company has an adequate system of internal controls in place. It has documented policies and procedures covering all financial and operating functions. These controls have been designed to provide a reasonable assurance with regard to maintaining of proper accounting controls for ensuring reliability of financial reporting, monitoring of operations and protecting assets from unauthorised use or losses, compliances with regulations. The Company has continued its efforts to align all its processes and controls with global best practices.

Financial Performance with respect to Operational Performance::

Particulars	2022-2023	% to revenue	2021-2022	% to revenue	Growth rate
I Revenue from Operations	427859432	100%	343159156	100%	24.68%
II Expenses:
Cost of Materials Consumed	294320141	68.78%	190323142	55.46%	13.32%
Purchases of Stock-in-Trade
Changes in Inventories of Finished goods,	(38516612)	-9.00%	930078	0.27%	-9.27%
work-in- progress and Stock-in-Trade
Employee Benefit Expenses	23584154	5.51%	21030679	6.12%	-0.61%
Finance Costs	27613319	6.45%	22519048	6.56%	-0.10%
Depreciation & Amortization Expenses	31090320	7.26%	23569456	6.86%	0.39%
Other Expenses	110612142	25.85%	98426955	28.68%	-2.83%
Total Expenses	448703464	104.87%	356799357	103.97%	0.89%
III Profit/(Loss) before exceptional and extraordinary items and tax
Exceptional Items
IV Profit/(Loss) before extraordinary items and tax
V Profit before tax	(20844032)	-4.87%	(13640202)	-3.97%	0.89%
VI Tax Expense:
(1) Income tax
(2) Current tax			385806	0.11%	0.11%
(3) Deferred tax charge / (credit)	(714028)	-0.16%	480342	0.13%	0.11%
(4) MAT Credit
(5) Wealth Tax
VII Profit after Tax	(20130003)	-4.70%	(14506350)	-4.22%	-0.30%
VII I Earning per equity share:
Basic & Diluted	(532.64)		(383.84)

Material Developments in Human Resources / Industrial Relation:

The Company believes that the success of any organisation depends upon availability of human capital. Our assets are our people who work to innovate beyond and challenge established boundaries. Thus, employees are vital to the Company. We have favourable work environment that encourages innovation and meritocracy. We focus on attracting the best and brightest talent and the meritocracy is the sole criteria for selection. The Company firmly believes that manpower is the most important asset, above all.. No Strikes, Lock outs or any anarchy occurred during the period under review and Company enjoys cordial industrial relations with its employees.

Cautionary Statement:

Statements in the Management Discussion and Analysis describing the Companys objective, projections, estimates, expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, among others, economic conditions affecting demand / supply and price conditions in the domestic market in which the Company operates, changes in the Government regulations, tax laws and other statutes and incidental factors.

	By order of the Board
Date: 4th September 2023	Vikram Dekate (Chairman)
Place: Aurangabad	DIN:00530296