rammaica india ltd Management discussions

This Management Discussion and Analysis report provides the analysis of financials and business of previous year future budget, expectation, planning of the company and may contain "forward looking statements" within the meaning of applicable laws and regulations and actual results may differ.

Industry overview

Our Company works in the in the field of all kinds of printing consumables items like flex, vinyl wallpapers, sun board, sun pack etc. The industry is fragmented in many unorganized players. While your company has been one of the big players in the Industry, overall the Industry performance is marred by the increase in raw material prices and stiff competition.

Review of financial and operating performance

During the financial year ending March 2023, the Company revenues went down as compared to the last year, because of PVC impacted as our all rate fluctuation products base material is PVC, though profit is up in terms of absolute numbers. Oil prices have gone up significantly and it has impacted the performance.

1. Paid up share capital: The Company has a paid-up capital of Rs. 14.275 crores as on 31^st March 2023 consisting of 2,85,50,000 equity shares of Rs. 5 each.

2. Reserves and Surplus

Reserves and Surplus it has increased Rs. 3.48 crores as compared to last year Reserves and Surplus Rs. 3.0285 crores. However the overall net worth of the Company is Rs. 17.76 crore.

3. Secured Loan: For maintaining our business in present situation the Company has availed secured OD facility and commercial vehicle loans from ICICI Bank as on March 31, 2023.

4. Turnover: The Company had been able to achieve revenue of Rs. 25.02 crores focusing on profit margin.

5. Profits /Loss: As per the present situation Company try to maintain the profits corresponding to the turnover and the profit after tax stood at Rs. 45.63 lakhs as compared to Rs.9.49 lakhs of previous year.

BUSINESS ANAYSIS

Our Company is trading in the printing consumables Raw material i.e. flex, banners and hoardings, vinyl, sun board, wallpapers etc. Advertisement activity is growing day by day. The Company is however, realigning the focus on profitable deals only as the margins in the industry are under pressure.

Opportunities and risks

Opportunities

Various new products are entering the market with better quality. The demand of products is expected to grow because the advertisement is back bone of the new business scenario. It is expected that the demand of our products will increase in near future. Risks In the present situation there several digital platforms available to advertisement so the demand of the physical advertisement may be decrease which the major risk for the Company. Further, margins are under pressure, due to small players working on wafer thin margins and increase in price by Suppliers.

Outlook: The Company aims to focus in profitable deals only and growth of profits and increase its market share in the market.

Internal Controls and its adequacy: The Company has been reviewing its internal control systems and processes continuously and company has a strong internal controls for continuously monitoring all operations. The Company had 65 employees on its rolls as on 31^st March 2023 ratios. The Return on Net Worth for the FY 2022-23 stood at 2.56 percent Therewerenosignificant as compared to 0.54 percent for the FY 2021-22.