GLOBAL ECONOMIC OUTLOOK & RECENT DEVELOPMENT & OVERVIEW
COMPANY PHILOSOPHY ON CORPORATE GOVERNANCE
Corporate governance is a mechanism by which the values, policies and procedures of the
organizations are inculcated and manifested. The essence of corporate governance lies in
promoting and maintaining integrity, transparency and accountability throughout the
organization.
OUTLOOK
The baseline forecast is for growth to fall from 3.4 percent in 2022 to 2.8 percent in
2023, before settling at 3.0 percent in 2024. Advanced economies are expected to see an
especially pronounced growth slowdown, from 2.7 percent in 2022 to 1.3 percent in 2023. In
a plausible alternative scenario with further financial sector stress, global growth
declines to about 2.5 percent in 2023 with advanced economy growth falling below 1
percent. Global headline inflation in the baseline is set to fall from 8.7 percent in 2022
to 7.0 percent in 2023 on the back of lower commodity prices but underlying (core)
inflation is likely to decline more slowly. Inflations return to target is unlikely
before 2025 in most cases.
Global real GDP is forecasted to grow by 2.6 percent in 2023, down from 3.3 percent in
2022. Most of the weakness is concentrated in Europe, Latin America, and the US. Asian
economies are expected to drive most of global growth in 2023, as they benefit from
ongoing reopening dynamics and less intense inflationary pressures compared to other
regions. Global GDP growth is expected to slow further to 2.4 percent in 2024, largely
driven by flat growth for the US.
The 10-year economic outlook signals a prolonged period of disruptions and
uncertainties for businesses, but there are also opportunities. Global growth will return
to its slowing trajectory with mature markets making smaller contributions to global GDP
over the next decade. Nonetheless, there are still opportunities for firms to invest in
both mature markets—given their wealth and need for innovation to compensate for
shrinking labor forces—and emerging markets—given their need for both physical
and digital infrastructure to support their sizable and young labor forces. Keys to
ensuring growth over the longer term include developing new lines of business;
strengthening corporate culture; embracing digital transformation and automation;
recruiting for talent with new skills not currently represented in the company; and
maximizing the hybrid work model where it makes sense.
INDUSTRIAL STRUCTURE AND DEVELOPMENT
Manufacturing is emerging as an integral pillar in the countrys economic growth,
thanks to the performance of key sectors like automotive, engineering, chemicals,
pharmaceuticals, and consumer durables. The Indian manufacturing industry generated 16-17%
of Indias GDP pre-pandemic and is projected to be one of the fastest growing sectors.
The machine tool industry was literally the nuts and bolts of the manufacturing
industry in India. Today, technology has stimulated innovation with digital transformation
a key aspect in gaining an edge in this highly competitive market.
Technology has today encouraged creativity, with digital transformation being a
critical element in gaining an advantage in this increasingly competitive industry. The
Indian manufacturing sector is steadily moving toward more automated and process-driven
manufacturing, which is projected to improve efficiency and enhance productivity.
India has the capacity to export goods worth US$ 1 trillion by 2030 and is on the road
to becoming a major global manufacturing hub.
With 17% of the nations GDP and over 27.3 million workers, the manufacturing sector
plays a significant role in the Indian economy. Through the implementation of different
programmes and policies, the Indian government hopes to have 25% of the economys output
come from manufacturing by 2025.
India now has the physical and digital infrastructure to raise the share of the
manufacturing sector in the economy and make a realistic bid to be an important player in
global supply chains.
A globally competitive manufacturing sector is Indias greatest potential to drive
economic growth and job creation this decade. Due to factors like power growth, long-term
employment prospects, and skill routes for millions of people, India has a significant
potential to engage in international markets. Several factors contribute to their
potential. First off, these value chains are well positioned to benefit from Indias
advantages in terms of raw materials, industrial expertise, and entrepreneurship.
Second, they can take advantage of four market opportunities: expanding exports,
localising imports, internal demand, and contract manufacturing. With digital
transformation being a crucial component in achieving an advantage in this fiercely
competitive industry, technology has today sparked creativity. Manufacturing sector in
India is gradually shifting to a more automated and process driven manufacturing which is
expected to increase the efficiency and boost production of the manufacturing industry.
India is gradually progressing on the road to Industry 4.0 through the Government of
Indias initiatives like the National Manufacturing Policy which aims to increase the
share of manufacturing in GDP to 25 percent by 2025 and the PLI scheme for manufacturing
which was launched in 2022 to develop the core manufacturing sector at par with global
manufacturing standards.
Manufacturing has emerged as one of the high growth sectors in India. Prime Minister of
India, Mr. Narendra Modi, launched the ‘Make in India program to place India on the
world map as a manufacturing hub and give global recognition to the Indian economy.
Government aims to create 100 million new jobs in the sector by 2022.
Indias manufacturing exports for FY22 reached an unprecedented US$ 418 billion, an
overall growth of more than 40% compared to the US$ 290 billion from the previous year. By
2030, Indian middle class is expected to have the second-largest share in global
consumption at 17%.
Indias gross domestic product (GDP) at current prices stood at Rs. 51.23 lakh crore
(US$ 694.93 billion) in the first quarter of FY22, as per the provisional estimates of
gross domestic product for the first quarter of 2021-22. The manufacturing GVA at current
prices was estimated at US$ 77.47 billion in the third quarter of FY22 and has contributed
around 16.3% to the nominal GVA of during the past ten years. India has potential to
become a global manufacturing hub and by 2030, it can add more than US$ 500 billion
annually to the global economy. As per the economic survey reports, estimated employment
in manufacturing sector in India was 5.7 crore in 2017-18, 6.12 crore in 2018-19 which was
further increased to 6.24 crore in 2019-20. Indias display panel market is estimated to
grow from ~US$ 7 billion in 2021 to US$ 15 billion in 2025. As per the survey conducted by
the Federation of Indian Chambers of Commerce and Industry (FICCI), capacity utilisation
in Indias manufacturing sector stood at 72.0% in the second quarter of FY22, indicating
significant recovery in the sector.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
The Company achieved a turnover of Rs.7552.80Lacs as against Rs.7793.21Lacs in the
previous year and the profit/ (Loss) after tax is Rs.(12.46)Lacs as against profit of
Rs.15.48Lacs in the previous year.
Efforts are being made to bring back business on growth path in coming financial year
2022-23, the company expecting tremendous progress with newly in house designed value
added products.
OPPORTUNITIESANDTHREAT
The presence of unorganized players and reprocessed products continues to challenge the
market with unethical practices, providing substandard products made from lower grade
materials, and taking advantage of the consumers lack of awareness. We strive to promote
high quality competitive products thereby pushing ourselves towards growth. In a
fast-evolving Indian market most brands tend to wither, but we ensure that we do not make
any compromises in our long-term business objectives and our brand strength. The growth of
the Company is subject to opportunities and threats as are applicable to the industry from
time to time.
INTERNAL CONTROL SYSTEMSANDTHEIRADEQUACY
The Company has an adequate Internal Control System commensurate with the size, scale
and nature of its operation. TheAudit Committee reviews the adequacy and effectiveness of
Internal Control System.There are stringent internal control systems and procedures to
facilitate optimal resource utilisation by keeping a check on unauthorized use of
products. The Companys regular checks at every stage of its production and dispatch cycle
ensured strict operational and quality compliance. Internal audit is conducted at regular
intervals at all the plants and covers the key areas of operations. It is an independent,
objective and assurance function responsible for evaluating and improving the
effectiveness of the risk management, control and governance process.
The Audit Committee is regularly reviewing the Internal Audit Reports for the auditing
carried out in all the key areas of the operations. The Company has appointed an
Independent Auditor to ensure compliance and effectiveness of the Internal Control
Systems.
RISKAND CONCERN
While risk is an inherent aspect of any business, the Company is conscious of the need
to have an effective monitoring mechanism and has put in place appropriate measures for
its mitigation including business portfolio risk, financial risk, legal risk and internal
process risk. Your Company continuously monitors and revisits the risks associated with
its business.
SEGMENT WISE PERFORMANCE
The Company is operating in a single segment. Hence, no separate segment wise
information is given.
HUMAN RESOURCES DEVELOPMENT AND INDUSTRIAL RELATIONS
The Company recognizes human resources as a key component for facilitating
organizational growth and shareholder value creation. Over a period of years, your Company
has employed, groomed and retained experienced and qualified pool of human resources.
Companys processes are designed to empower employees and support creative approaches in
order to create enduring value. Various initiatives have been taken to strengthen human
resources of the Company. Your Company maintains a cordial relationship with its
employees.As on 31st March, 2023 the Company has 470 employees.
CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis and Directors Report describing
the Companys strengths, strategies, projections and estimates, are forward-looking
statements and progressive within the meaning of applicable laws and regulations. Actual
results may vary from those expressed or implied, depending upon economic conditions,
Government Policies and other incidental factors. Readers are cautioned not to place undue
reliance on the forward looking statements.
|
For And On Behalf of the Board of Directors |
|
Sd/ |
| Place: Mumbai |
Velji L. Shah |
| Date: 12th May, 2023 |
Chairman & Managing Director |
|
DIN: 00007239 |
+91-9892691696
