national plastic technologies ltd Directors report

To the Members

Your Directors are pleased to present their 34th Annual Report on the business and operations of the Company for the financial year 2022-23. This report is being presented along with the Audited Financial Statements for the year ended 31.03.2023.

Financial Results

(Rs. in Lakhs)

Particulars	Year Ended 31.03.2023	Year Ended 31.03.2022
Revenue (inc. Other income)	21010.71	13373.31
EBITDA	1775.50	1310.42
(-) Finance Cost (I)	533.06	442.68
(-) Depreciation (D)	378.66	373.44
Profit Before Tax (PBT)	863.78	494.30
(-) Taxation	248.39	131.06
Net Profit/(Loss)	615.39	363.24

Performance Overview

During the year, your Company registered Total Income of Rs. 21010.71 lakhs as against Rs. 13373.31 Lakhs during the previous year, thus registering a growth of 57%. The EBITDA for the year stands at Rs. 1775.50 Lakhs as compared to Rs. 1310.42 Lakhs during the previous year, thus registering a growth of 35%. The profit before tax during the year is Rs. 863.78 Lakhs as compared to Rs. 494.30 lakhs, up by 75%. The consumer durable segment (i.e. plastic parts supplied to consumer durable industry) registered a turnover of around Rs. 78 Crs in FY 23 compared to around Rs. 58 Crs in FY 22, registering a growth of around 34%. The other segment constituting mainly the Auto components segment registered a turnover of around Rs. 132 Crs in FY 23 as against Rs. 76 Crs in FY 22 thus growing at around 74%. The company was able to achieve broad based growth in FY 23.

Material Changes affecting the Financial Position of the Company

There are no material changes affecting the financial position of the Company subsequent to the end of the financial year till the date of this report.

Transfer to Reserves

During the year under review, your Company has not transferred any amount to general reserves from the current year profit. Amount is retained to meet the operations and growth prospects of the Company.

Dividend

The Board of Directors have, at their meeting held on 11.05.2023, recommended a dividend of Rs. 1.00 (10% on face value of Rs. 10 each) per share for the financial year ended 31.03.2023. The divided, if approved, by the shareholders in the AGM, will be paid to the shareheloder whose name appears in the Register of Memebrs as on the record date within 30 days from the date of the AGM.

Share Capital

The paid up Equity Share Capital as on 31.03.2023 was Rs. 6,07,83,300. During the year under review, the Company has not issued any shares or convertible instruments.

Deposits

The Company has neither received deposits in the previous year nor invited/accepted any deposits from the public during the year under review.

Directors and Key Managerial Personnel (KMP)

The Board of Directors consists of six Directors.

The Board of Directors consists of six Directors. During the financial year 2022-23, the Board met 5 times on 30.05.2022, 09.08.2022, 22.09.2022, 10.11.2022 and 08.02.2023.

Mr. Arihant Parakh, Managing Director (Key Managerial Personnel)

The Board at its Meeting held on 04.08.2021 appointed Mr. Arihant Parakh as Managing Director and subsequently, the shareholders had in the AGM held on 17.09.2021, approved the appointment of Mr. Arihant Parakh as Managing Director. His term expires on 24.09.2023. He is proposed to be reappointed as Managing Director for a further period of 3 years w.e.f 25.09.2023 at the ensuing Annual General Meeting. He manages and looks after the operations of the Company. The remuneration payable to Mr. Arihant Parakh is fixed in nature and there is no stock option, pension etc.

Mr. Sudershan Parakh, Director:

Mr. Sudershan Parakh was redesignated as a Non-executive Director of the Company w.e.f 04.08.2021. He along with Mrs. Manju Parakh are Directors who are liable to retire by rotation at every Annual General Meeting. There is no remuneration payable to Mr. Sudershan Parakh and he is not entitled to stock options, commission, pension etc.

Mr. Venkatesan N, Executive Director:

Mr. N Venkatesan, was appointed as Executive Director of the Company w.e.f. 12.04.2023. The remuneration payable to Mr. Venkatesan N is fixed in nature and there is no stock option, pension etc. He was initially appointed as additional director designated as Executive Director w.e.f 10-11-2022 and resigned w.e.f. 09.02.2023. Subsequently, the shareholders have appointed Mr. N Venkatesan as Executive Director w.e.f 12.04.2023 for a period of 3 years vide shareholders resolution dt. 26.05.2023 passed through postal ballot.

Mr. Sudhir K Patel, Independent Director:

Mr. Sudhir K Patel was appointed as an Independent Director of the Company for a period of 5 years w.e.f. 24.09.2019 at the Annual General Meeting held on 11.09.2019. He is the Chairman of the Board. He receives only sitting fees and does not hold any shares in the Company.

Mr. Ajit Kumar Chordia, Independent Director:

Mr. Ajit Kumar Chordia was appointed as an Independent Director of the Company for a period of 5 years w.e.f. 24.09.2019 at the Annual General Meeting held on 11.09.2019. He is the Chairman of the Nomination & Remuneration Committee. He receives only sitting fees and does not hold any shares in the Company.

Mrs. Manju Parakh, Non-Executive Director

Mrs. Manju Parakh is a Non-executive Director liable to retire by rotation at the ensuing Annual General Meeting. She is eligible for reappointment and her appointment is being sought at the ensuing Annual General Meeting. She does not receive any remuneration. She is the woman Director in the Company.

Key Managerial Personnel:

Mr. Manikandan R was appointed as Chief Financial Officer of the Company w.e.f. 20.04.2019 and is in charge of the financial operations of the Company.

Mr. Abishek S was appointed as Company Secretary and Compliance Officer of the Company w.e.f. 24.09.2018.

Statement on Declaration given by the Independent Director

As required under Section 149(7) of the Companies Act 2013, all the Independent Directors have given their respective declarations that they meet the criteria of independence as specified in Section 149(6) of the Companies Act, 2013.

Board Committees

In compliance with the provisions of Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, the Company has constituted various Committees of the Board. The details on composition of the Committees, attendance of the Directors at the Committee Meetings and terms of reference of the Committees form part of this Annual Report.

Related Party Transactions

As per the requirements of the Companies Act 2013, all the Related Party Transactions are placed before the Audit Committee for review and approval. Prior omnibus approval / ratification of the Committee have been obtained for transactions which are of foreseen and repetitive in nature. The details of transactions proposed to be entered into with Related Parties on an annual basis are placed before the Committee. Besides, the Related Party Transactions entered during the year are also reviewed by the Board on an annual basis.

Contracts and Arrangements with Related Parties

All transactions entered by the Company during the financial year with Related Parties were in the ordinary course of business and on arms length basis. The particulars of transactions entered with Related Parties, as referred to in Section 188(1) of the Companies Act, 2013, are provided in AOC-2 which is given as Annexure to this report. Also, Note No.33 of Notes to Accounts contains the disclosures in compliance with the Accounting Standard on Related Party Disclosures.

Particulars of Subsidiary, Associate or Joint Venture Company

The Company does not have any Subsidiary or Associate or Joint Venture Company and hence disclosure about Subsidiary, Associate and Joint Venture Company does not arise.

Internal controls system and their adequacy

The Company has designed and implemented a process driven framework for internal financial controls within the meaning of explanation to Section 134(5)(e) of the Companies Act, 2013 and the necessary control systems considering the business requirements, scale of operations and applicable status of the Company are in place in the organisation. The system includes the policies and procedures, delegation of authority, internal check, segregation of duties, internal audit and review framework, safeguarding of its assets, the prevention and detection of frauds and errors, ensuring of accuracy and completeness of the accounting records and the timely preparation of reliable financial information. The company has fully followed the prescribed Accounting Standards.

Details of recommendations of Audit Committee which were not accepted by the Board along with reasons:

The Audit Committee generally makes recommendations to the Board of Directors of the Company at its meetings held to consider any financial results (unaudited and audited) and such other matters placed before the Audit Committee as per the Companies Act, 2013 and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. During the year, the Board of Directors have considered and accepted all the recommendations made by the Audit Committee.

Auditors

Statutory Auditors

The Members of the Company at the 32nd Annual General Meeting (AGM) approved the appointment of Messrs. CA Patel & Associates, Chartered Accountants, as the Auditors of the Company for a period of five years from the conclusion of the said AGM till the AGM to be held in the year 2026. CA Patel & Associates have given their consent to act as the Auditors of the Company and have confirmed that the said appointment is in accordance with the conditions prescribed under Sections 139 and 141 of the Act.

The Auditors Report for the year ended 31.03.2023 does not contain any qualification, observation or adverse remark. No instance of Fraud has been reported by the auditors under Section 143(12). The report given by the Auditors on the financial statements of the Company is provided in the financial section of the Annual Report. The Statutory Auditors of the Company are also the Statutory auditors of the Group Firm Viz. National Autoplast. The remuneration paid to the Stautory Auditors for all services is mentioned in the Notes to Accounts of the Annual Report.

Cost Auditors

Since the business activities do not fall under the scope of cost audit, the Company has not appointed Cost Auditor to audit the records of the Company. Also, maintenance of cost records is not applicable to the Company.

Secretarial Auditors

Pursuant to provisions under Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors of the Company have appointed M/s. P Muthukumaran & Associates, Company Secretaries to undertake the Secretarial Audit of the Company for the financial year ended 31.03.2023.The Secretarial Audit Report is attached. There are no qualifications, reservations or disclaimers given by the Secretarial Auditor for the year ended 31.03.2023.

Particulars of remuneration of Directors and Employees u/s 197(12) of the Companies Act, 2013

Details pertaining to remuneration as required under Section 197(12) of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 have been provided as Annexure to this report. There was no employee who received remuneration in excess of prescribed threshold limit u/r 5(2) of Companies (appointment & Remuneration of Managerial Personnel) Rules, 2014 as amended, during the year under review.

Particulars of Loans or Guarantees and Investments U/S 186(4) of the Companies Act, 2013

The Company has not given Loans, Guarantees u/s 186 of Companies Act, 2013. The Company has not made any investments during the financial year. Please refer Notes on Accounts for Investments as on 31.03.2023.

Conservation of energy, technology transfer and foreign exchange earnings and outgo

(i) Conservation of energy

The Company understands the significance of conservation of energy which is also seen as a method for cost reduction. The Company has taken following steps for conserving the energy:

Change of circuitry in the machines developed in house to reduce power consumption.

Power saving equipments have been installed on machines and there has been considerable reduction in power consumption.

Heater insulation jackets have been provided on the machines to prevent the energy losses. Timers have been installed to reduce the idle running of the motors preventing energy losses. Natural lighting is being used in plants to avoid usage of industrial lamps in the day.

APFC Panels have been installed in all plants to maintain power factor, thus ensuring efficient energy management.

LED Lamps and Fittings have been installed in place of Metalhylide to save precious energy and costs.

The company purchases renewable power through group captive scheme at its plant at Irrungattukottai.

Gardening has been done so as to enhance air quality and improve environment and minimise pollution.

(ii) Research and Development and Technology absorption

During the year under review, the Company continued to improve the quality of products through its normal development systems. The Company has not acquired any imported or indigenous technology.

(iii) Foreign Exchange Earnings and Outgo

(a) Foreign Exchange Earnings - Rs. Nil

(b) Foreign Exchange Outgo - Rs. 116.50 Lakhs

Corporate Governance Report

The report on Corporate Governance for the year ended 31.03.2023 pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is annexed hereto and forms an integral part of this Report. The certificate from the Auditors/PCS regarding the compliance of conditions of Corporate Governance is attached to the report on Corporate Governance as an Annexure.The Company has complied with all the requirements specified in regulation 17 to 27 and clause b) to (i) of sub-regulation (2) of regulation 46. The discretionary requirements as specified in Part E of Schedule II have not been adopted.

Management Discussion & Analysis Report

Management Discussion & Analysis Report for the year under review, as stipulated under Regulation 34(3) read with Schedule IV of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 forms part of the Annual Report.

Extract of Annual Return

As required by Section 134(3)(a) of the Companies Act, 2013 read with Companies (Account) Rules, 2014, the Annual Return in Form MGT-9 for the financial year ended March 31, 2023 is available on the Companys website www.nationalgroup.in/investors-relations.

Significant and material orders passed by the Regulators

There is no significant and material order passed by the Regulators or Courts or Tribunals impacting the going concern status of the Companys operations in future.

Risk Management Policy

The Company has developed and implemented Risk Management Policy. The Policy framework enables the Company to identify and evaluate risks, appropriately rate these risks and grade the same in accordance with their potential impact and likelihood. The two key components of risks are the probability (likelihood) of occurrence and the impact (consequence) of occurrence, if the risk occurs. Risk is analysed by combining estimates of probability and impact in the context of existing control measures. This framework seeks to create transparency, minimize adverse impact on business objective and enhance the Companys competitive advantage. The risk framework defines the risk management approach across the Company at various levels including documentation and reporting.

The various key risks to business objectives are as follows:

Liquidity Risk: It is the risk that the Company will be unable to meet its financial commitment to a Bank/Financial Institution in any location, any currency at any point in time. Liquidity risk can manifest in three different dimensions for the Company.

Funding Risk: To replace net outflows due to unanticipated outflow.

Time Risk: To compensate for non-receipt of expected inflows of funds.

Call Risk: Due to crystallization of contingent liabilities or inability to undertake profitable business opportunities when desirable.

Interest Rate Risk: It is the risk where changes in market interest rates might adversely affect the Companys financial condition. The short term/immediate impact of changes in interest rates are on the Companys Finance Cost. On a longer term, changes in interest rates impact the cash flows on the assets, liabilities and off-balance sheet items, giving risk to a risk to the net worth of the Company arising out of all repricing mismatches and other interest rate sensitive positions.

Board Evaluation

The Directors appointed on the Board are from diverse fields with considerable experience in their fields for decades. Non-Executive Director(s) add substantial value through the deliberations at the Meetings of the Board and Committees thereof. To safeguard the interests of the investors, they play a crucial role in important Committees of the Board such as Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee etc. Besides contributing at the Meetings of the Board and Committees, the Non-Executive Directors also have offline deliberations with the Management of the Company and add value through such deliberations. The Non-Executive Directors are only paid Sitting Fees for attending Meetings of the Board. They are not paid any remuneration apart from Sitting Fees.

In a separate Meeting of Independent Directors held on 22.09.2022, performance was evaluated, taking into the account the views of Executive and Non-Executive Directors. All Independent Directors were present at the Meeting.

Directors Responsibility Statement

In accordance with the provisions of Section 134(5) of the Companies Act 2013, your Directors confirm:

1. That in the preparation of the annual accounts for the year ended 31.03.2023, the applicable accounting standards have been followed by your Company and there were no material departures.

2. That the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period.

3. That the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

4. That the Directors have prepared the annual accounts for the year ended 31.03.2023 on a going concern basis.

5. That the Directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.

6. The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Disclosures as per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

The Company has in place an Anti-Sexual Harassment Policy in line with the requirement of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Adequate measures have been taken to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy. During the year under review, there were no complaints received and no compliant was pending as on 31.03.2023 pursuant to the Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013.

Corporate Social Responsibility (CSR)

The mandatory provisions of CSR under Section 135 of the Companies Act, 2013 are not applicable to the Company. However, the mandatory provisions of CSR is applicable to the Company w.e.f 01.04.2023. The Company has constituted CSR committee headed by Mr. Arihant Parakh, Managing Director with Mr.Sudhir K Patel and Mr.Sudershan Parakh as members. Copy of the CSR policy is available on the website of the Company viz. https://nationalgroup.in/investors-relations/.

Acknowledgement

Your Directors place on record their appreciation of the co-operation and support extended by the Customers, Suppliers, Employees and assistance received from Bankers, Local Bodies and other Government Authorities.

Management Discussion and Analysis Report

The Management Discussion and Analysis Report sets out developments in the business environment and the Companys performance. The analysis supplements the Boards Report, which forms part of this Annual Report.

Economy Overview

The Indian Economy registered an impressive GDP growth of 7.20% in 2022-23 despite challenging external environment. In line with the GDP growth various sectors of the Economy grew at a health rate last year. In spite of the global challenges due to higher inflation and interest rates, the Indian Economy is showing resilience and is expected to grow at a decent pace over the medium to long term.

Plastics Industry Scenario and Development

Indian plastic industry market is one of the leading sectors in the countrys economy. The production and consumption of plastics in India have increased manifold in the last three decades. In 2021-22 the consumption of plastics was approximately 22 MMT, compared to 0.9 MMT in 1990. The industry gives jobs to over 4 million people and comprises over 35,000 processing units, 80% of which are small and medium-sized enterprises. This sector is predicted to achieve 9.1 lakh crore by 2025. During April 2022-February 2023, Indias plastic exports stood at US$ 10.9 billion. Also, Indias plastic exports is expected to reach US $25.00 Billion by 2025.

The Government of India intends to take the plastic industry from a current level of Rs. 3 lakh crore (US$ 37.8 billion) of economic activity to Rs. 10 lakh crore (US$ 126 billion) in four-five years. 10 Plastic Parks have been approved in the country by The Department of Chemicals and Petrochemicals. Among these, six plastic parks have received final approval from the following states Madhya Pradesh (two parks), Assam (one park), Tamil Nadu (one park), Odisha (one park), and Jharkhand (one park). These parks are intended to boost employment and attain environmentally sustainable growth.

The Indian Consumer Durable Industry

India is set to become the fifth-largest consumer durables market and is one of the largest growing electronics markets in the world. This demand is on the onset of rising incomes in urban and rural areas, increasing urbanization, and changing lifestyles. Over the last few years, the domestic consumer electronics and durables market has witnessed significant growth. In 2021, the Indian appliances and consumer electronics industry stood at US$ 9.84 billion and is expected to double these figures to reach US$ 21.18 billion by 2025.

The consumer durables market is undergoing a significant transformation, with more and more consumers investing in their homes and seeking innovative and time-saving solutions. The fast-paced lifestyle of todays working woman, who is constantly multitasking between home, and office, managing the house, and looking after the children, is driving the demand for appliances that can make her life easier. This has resulted in a highly competitive market, with dozens of local and foreign players vying for market share. The pandemic has altered consumer behavior, with people becoming more house-proud and investing more in their homes and appliances.

According to a report by CRISIL, the consumer durables sector in India will see the revenue grow 15-18% to Rs. 1 trillion this financial year supported by 10-13% increase in volumes. The industry has already crossed the pre-pandemic mark in value terms by FY22. The sector plays a crucial role in the Indian economy as it is expected to fuel Indias US$ 5 Trillion economy growth. There is a huge scope of untapped rural markets for the new industry players who are trying to set their foot in the industry. This gives immense opportunities for the existing players to tap into this untapped market to increase sales in India.

While there are immense opportunities for the consumer durables markets, there are some inherent challenges that the industry faces, which needs to be addressed, in order to ensure the uninterrupted growth of the sector. Chinese manufacturers create strong competition for Indian manufacturers as they have a huge supply base and numerous manufacturing subsidies. Because of this, the cost of production is significantly lower in China as compared to India. Changing efficient manufacturing norms also requires significant investments to be made in the sectors. With the utilities at disposal in China, investments become far easier, thus attracting investor interest. Raw materials needed to manufacture goods also are largely procured from China, making them less cost-effective.

With China plus One strategy being implemented by leading global economies, the opportunities for India are strong. Geographically as well, India presents an attractive opportunity to the manufacturers, as companies pivot towards India. India has immense potential to emerge as the future of manufacturing hub for consumer durables not just for our own country, but also for the overall globe. The Indian markets have shown sustained growth over the long term and coupled with favorable consumer demographics and infrastructure growth in rural India, several Indian and MNC players will be looking forward to strengthening their presence in the worlds largest economy.

The Indian Auto Component Industry

The auto components industry accounted for 2.3% of Indias GDP and provided direct employment to 1.5 million people. By 2026, the automobile component sector will contribute 5-7% of Indias GDP. The industry is a leader in exports and provides jobs to over 3.7 crore people. From FY16-FY22, the industry registered a CAGR of 6.35% and was valued at US$ 56.50 billion in FY22. The industry is expected to stand at US$ 200 billion by FY26. Indias auto components industrys market share has significantly expanded, led by increasing demand for automobiles by the growing middle class and exports globally. Due to the remarkable growth in demand for Indian auto components, several Indian and international players have entered the industry. Indias auto component industry is broadly classified into organised and unorganised sectors. While the unorganised sector consists of low-valued items and mostly serves the aftermarket category, the organised sector serves OEMs and includes high-value precision instruments. The rapidly globalising world is creating newer opportunities for the transportation industry, especially while shifting towards electric, electronic and hybrid cars, which are deemed more efficient, safe and reliable modes of transportation. Over the next decade, this will lead to newer verticals and opportunities for auto component manufacturers. To help them adjust to the shifting dynamics of the sector, the Indian government has already offered various production incentives. India is also investing heavily in electric car infrastructure. By 2025, 4 million of EVs could be sold each year and 10 million by 2030. Industry body Automotive Component Manufacturers Association of India (ACMA) estimates total turnover in the industry to increase 10-15% in FY24.

Company Overview & State of Affairs

The Company has posted a very good revenue and profit growth during the year 2022-23 despite several challenges like raising interest rates, competition etc. The Company expects to grow at a healthy rate during the current financial year as well. Also, the long term growth prospects of the Company are well intact. Usage of plastic products in Automotive and Consumer Durable industries is rising due to its advantages in designing cost reduction and weight reduction. Further, the Industry itself is growing at a good pace thus creating opportunities for the Company. The Company is predominantly into manufacture of products for Automotive and Consumer Durable industries and is already a major supplier of plastic products to the above mentioned industries. Also, The raising adoption of EVs presents a great opportunity for the Company to increase its volume and provide value added products to the EV manufacturers especially, the two wheeler manufacturers like TVS Motors, etc. The Company has already started supplies for EVs to two wheeler manufacturer and expect to grow in this segment over the next few years. The Company is well positioned to capitalize on the opportunities over the next few years.

Opportunities and Threats

While increasing demand is an opportunity for the Industry, increased competition in the processing sector, change in Government regulations and fragmented nature of the plastic processing units are a threat to the Company. However, with multiple barriers to entry, the company, being an organized player, is well placed to outpace competition.

Business Outlook

Current low per capita consumption level of plastic products as compared to developed countries suggests that India offers a huge opportunity over long term. Company has ample opportunities to grow by producing more products to meet the demand and achieve growth.

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor, including:

Particulars of Ratio	F.Y. 2021-22	F.Y. 2022-23	Change in %	Reason (if more than 25% change)
Debtors Turnover Ratio	6.14 times	6.61 times	8%	Not Applicable The improvement is because of better
Inventory Turnover Ratio	3.35 times	5.32 times	59%	inventory management.
Interest Coverage Ratio	2.12 times	2.62 times	24%	Not Applicable
Current Ratio	1.11 times	1.05 times	-5%	Not Applicable The reduction in ratio is because of
Debt Equity Ratio	1.93 times	1.44 times	-25%	Increased repayment and improved profitability.
Operating Profit	9.58%	8.37%	-13%	Not Applicable
Margin % Net Profit Margin %	2.72%	2.93%	8%	Not Applicable

Details of any change in Return on Net Worth as compared to the immediately previous financial year.

Particulars	F.Y. 2021-22	F.Y. 2022-23
Net Worth
Share Capital (A)	607.83	607.83
Reserve & Surplus (B)	2332.90	2928.87
Net Worth (A+B)	2940.73	3536.70
Profit after Tax	363.24	615.38
Return on Net Worth	12.35%	17.40%

Note: Due to higher sales and increased profitability, the Return on networth has improved.

Discussion on financial performance, Internal control systems and their adequacy, risks and concerns and developments in Human resources/ Industrial Relations are given elsewhere and forms part of the Directors Report.

Cautionary Statement

Statement made herein describing the Companys expectations or projections are "Forward looking statements". The actual results may differ materially from those expected or forecast depending on market conditions, input costs, economic development, Government policies and other external factors.