lakhotia polyesters india ltd Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

This report covers the operations and financial performance of the Company for the year ended March 31, 2023 and forms part of the Annual Report.

Overview of the Economy:

The company specializes in lacquered metallised Polyesters film which finds application primarily in the textile and apparel industry. The grade of coated Polyesters film produced is used extensively in the manufacture of metallic yarns.

The process of metalizing Polyesters or polymer films leads to a product that is glossy and shiny in its appearance. The process of metalizing involves the layering or coating of polymers with aluminium. The result is a reflective surface which reduces the vulnerability of the material to sunlight, moisture and air. Polyesters coated films are available in different grades and specifications and find use across a varied number of industries from flexible packaging, shrink labels, cable insulation, and magnetic media to textiles and decorations.

Industry, Structure & Developments:

In the early days metallic yarns were limited to silver and gold variants. However, today every conceivable shade of colour is reproducible. The ability to read market trends and cater to unique shades, differentiates one company from another and determines the demand pull for metallic yarns.

While the industry is fairly organized, there exist a large number of players within the metallic yarn segment. There are few companies that specialize solely in catering to the metallic yarn segment, with most players producing a large array of metallised Polyesters films which cater primarily to the needs of the flexible packaging industry.

Operational Performance

The revenue from operations of your Company for the year ended March 31, 2023 stood at Rs. 1408.03 Lakhs as against Rs. 2021.19 Lakhs for the year ended March 31, 2022. The Company has incurred a loss of Rs. 191.64 Lakhs for the Year ended March 31, 2023 as compared to Rs. 46.41Lakhs for the year ended March 31, 2022.

Risk and Concerns

The largest component of costs involved in making flexible packaging film is attributable to raw materials.

Given the volatile trend in Polyesters and demand for Polyesters for competing applications the pressure on input costs can be expected to fluctuate.

Adequacy of Internal Control System

The Company has adequate internal control systems for the business processes in respect of all operations, financial reporting, compliance with laws and regulations etc. The management information system forms an effective and sound tool for monitoring and controlling all operating parameters. Regular internal audits ensure that responsibilities are executed effectively. The Audit Committee reviews the adequacy of internal controls on regular basis.

Human Resource Development

The Company recognizes that its human resource is its strength in realizing its goals and objectives.

Cautionary Statement

The Statement in this Management Discussion and Analysis report, describing the Companys outlook, projections, estimates, expectations or predictions may be "Forward looking Statements" within the meaning of applicable securities laws or regulations. Actual results could differ materially from those expressed or implied

	By Order of the Board of Directors of
	Lakhotia Polyesters (India) Limited
	Jayshri Lakhotiya	Madhusudan Lakhotiya
	Director	Managing Director
	DIN: 05357609	DIN: 00104576
Place: Nashik
Dated: August 09, 2023