Became What You Believe Global Outlook
The Global Economy: The global economy is set to face another
challenging year, with growth rates forecasted to fall from
3.4% in 2022 to 2.8% in 2023 before evening out at 3.0% in 2024. While
this may appear as a huge slide, the reality is quite the opposite.
Global headwinds: In FY23, global economic activity experienced a
broad-based slowdown beyond anticipation owing to a number of factors. Globally, energy
costs increased due to geopolitical tensions and supply-side disruptions distorted
consumer prices. As a result, most economies faced very high in?ation with the global
average being around 9% and consequentlycentral banks hiked interest rates to restore
price stability, which led to fewer investments.
However, in?ation is being tamed in most countries and the IMF
anticipates global headline in?ation to fall from 8.7% in 2022 to 7%in 2023 and 4.9% in
2024. It also anticipates core in?ation to decline slowly and most countries to reach
their in?ation targets by 2025.
The World Bank expects investment growth in emerging markets and
developing economies to remain below its average rate of the past two decades. The IMF has
also laid stress on multilateral cooperation between countries for fast-tracking the
process of global green-energy-transition and preventing
fragmentation owing to geopolitical tensions.
The IMF anticipates that any further adverse shocks could impede global
progress. Well-concerted global and national level e?orts are necessary to mitigate the
risks of global recession and debt distress in EMDEs and to support a major increase in
EMDE investment.
There are, however, chances of a faster than-expected recovery of the
global economy due to reduced in?ation, structural reforms by governments, an increase in
overall demand and the
reopening of China. The overall scenario calls for cautious optimism.
Indian economic review
Source: IMF, World Economic Outlook April 2023
As per the IMF, for FY 2023 India was one of the fastest growing
economies with real GDP growing at 6.8% year-on-year. During the year, the growth was
fueled by private consumption, growing manufacturing activity and the revival of the
service sector. The Government of Indias sustained focus on infrastructure investment
drove economic growth leading to employment generation. The service sector was observed to
have fully recovered from the weakness su?ered during the pandemic.
Like many other Central Banks across developed economies, the Reserve
Bank of India (RBI) increased the repo rate on multiple occasions since May 2022 amounting
to a cumulative increase of 250 bps in FY 2023. These e?orts managed to bring retail
in?ation below the upper tolerance target set by the RBI in November-December, 2022 before
breaching the threshold of 6% in January-February, 2023. In the most recent review, the
Monetary Policy Committee unanimously decided to keep policyrepo rate
unchanged.
Annual GST collection in the ?nancial year 2022-23 was at C18 lakh
crore, clocking a growth of 22% over last year. It shows the resilience of the Indian
economy amid several global headwinds. Net Direct Tax collections (provisional) for the
FY23 stood at C16.61 lakh crore marking a growth of 17.63% on a y- o-ybasis.
India was ranked 63rd in 2022 in ease of doing business across the
world among 190 countries, by the World Bank, improving its rank from 142 in 2014 and is
expected to move a few notches higher in the coming years. This augurs well for India
Inc.
Source: IMF, World Economic Outlook April 2023
1 Astron Paper & Board Mill Limited : Annual Report 2022-23
INDUSTRY
OUTLOOK
Indian population is around 15% ofworld population but consumes only 5%
of the total paper produced in the world. Indias growing FMCG sector with growth in
organized retail and demand for better quality paper as well as more health consciousness
of people, etc., are triggering factors of growth prospects of Indian Paper Industry. The
estimated annual turnover of the industry is INR 80,000 Crore and its contribution to the
exchequer is around INR 5,000 Crore. The industry provides direct employment to 0.5
million persons, and indirectlyto around 1.5 million.
Most of the paper mills are in existence for a long time and hence
present technologies fall in a wide spectrum ranging from oldest to the most modern. The
mills use a variety of raw material viz. wood, bamboo, recycled ?ber, bagasse, wheat
straw, and grasses. In terms of share in total production, approximately 18% are based on
wood, 73% on recycled ?ber and 9% on agro- residues. The geographical spread of the
industry, as well as market, is mainly responsible forthe regional balance ofproduction
and consumption.
The domestic paper industry witnessed encouraging growth during the
year, driven by rising demand for all types of paper products across various sectors such
as education, FMCG, packaging, pharma and e-commerce. This momentum is expected to
continue in the coming year as well. The paper industry has witnessed substantial growth
over the years due to several factors. There is an increase in demand for paper products,
including packaging materials, stationery, and specialty papers. Factors such as
population growth, urbanization, and evolving consumer preferences have contributed to
this rising demand.
Sustainable packaging solutions have emerged as a crucial growth driver
in recent years. With growing environmental concerns, there is a strong shift towards
eco-friendly packaging alternatives. Paper-based packaging, being renewable and
recyclable, has gained prominence as a sustainable choice, driving the demand forpaper
materials.
The paper industry consumes a large amount of energy and water. Energy
costs that account for about 16-18 per cent of costs, vary depending on the fuel used for
generating power. The cost of power has increased as a result of inadequate supply and
increase in tari? for industrial consumers. The prospect of availability of good quality
fuel is diminishing. This has been o?set by your company by establishing a
state-of-the-art captive Co-Gen Plant to meet its power requirements, thereby reducing its
dependency on the grid power.
According to the IMF, India, along with China, is expected to
contribute 50% of the global growth in CY 2023.
STRATEGIC GROWTH DRIVERS:
Paperboard demand is expected to growsharply, primarilyfueled
bymoderate demand from end-use sectors:
FMCG volumes are expected to witness a surge, which is the major growth
driver for the paperboard segment. Over the long-term, a rise in population and gradually
increasing private expenditure would keep demand from the FMCG segment a?oat.
Demand for consumer durables is expected to improve, which will be
marked by better a?ordability, shorter replacement cycles, multiple ownership (in the case
of CTVs) and low penetration levels (in the case of other appliances such as room ACs).
The requirement ofthe ready-made garment industry, too, is expected to
report growth involume terms.
E-retail growth is expected to register a healthy expansion rate and
rapidly rising shipments in the e-retail industry and a rise in penetration levels in
overall retail will provide a ?llip to the volumes within the segment over the
medium-term.
Similarly, the pharma sectors demand is also expected to spike, mainly
driven by vaccination shipments and deliveries across the country, supporting the paper
board demand
OPERATIONALPERFORMANCE:
During the Financial Year ended 31st March, 2023, your Company has
achieved on standalone basis an operational revenue of Rs. 39,473.39 Lakhs as compared to
Rs. 51,283.33 Lakhs in the previous Financial Year and the Loss after Tax is Rs. 2,070.44
Lakhs as compared to Pro?t after Tax of Rs. 868.30 Lakhs in the previous Financial Year
and on Consolidated basis Loss After Tax of Rs. 2,394.67 Lakhs as compared to Pro?t after
Tax of Rs. 811.04 Lakhs in the previous Financial Year.
The Company has reported a net loss on account of market volatility and
escalation over raw materials and ancillary material prices during the last ?nancial year,
raw material prices were soaring very high as against Sales prices due to downtrend in the
paper industry, demand for Kraft paper at international market is also volatile due to
which we have faced challenges in exporting the ?nished goods so that sales volume and
sales price could not be met out as compare to earlier years, underutilization in the
production capacity because of Boiler modi?cation and Turbine upgradation and adverse
foreign currency ?uctuations.
During the Previous Financial, Company has gone into Boiler modi?cation
and Turbine upgradation. With the help of upgradation & modi?cation there is huge
savings in fuel cost as expected. Requirements of power units from Outsiders get reduced
and due to modi?cation, we are generating more units from turbine as well. Earlier steam
generated from turbine was not utilized properly but now onwards it is utilized fullest
& used in dryer for production of?nished goods.
3 Astron Paper & Board Mill Limited : Annual Report 2022-23
Information Technology
Company has in place adequate internal control system to commensurate
with its size and scale of Operations. Company is using Microsoft Navision (ERP system
)which has been developed to fulfil maker checker concept at every point. Company has also
established proper authorization concept at every point. Company also have adequate daily
back up system and antivirus software to prevent any data loss. And for better chain of
transactions, company is using same ERP system from gate inward till gate outward i.e.
everything is properly centralized and can have real time check. Company has also
maintained role centers (access control) as per employees requirement to keep
security of data.
Internal Control System:
- Maker-Checker Concept-
To reduce the risk of errors in work, Company has introduced new
concept of Maker and Checker. Under which work of an employee is reviewed by either
another employee or their reporting person. This is how any of the smallest error would be
traced and solved.
- Physical Controls-
Company has adequate system for its inventories, machines, and other
assets. This can occur using locks, safes, or other environmental controls. Access is
restricted to those with authority to handle them.
Transactions and Physical verification
Company has formed different committees to take collective decisions
e.g., company has purchase committee to authorize the purchase transaction, value of which
is in excess of specified limit. Company is also maintaining barcoding in finish inventory
to properly physical check at any time and identify inventory properly. All transactions
are being made by maker checker concept to avoid mistakes and control all transactions.
Quality Controls
Company has in-house Lab to test finished goods for quality control and
quality check for purchase items so that quality can be maintained in purchase as well as
sales.
CCTV Network
Company has adequately established CCTV network to cover every location
in the office and factory premises and it can be accessed from anywhere by authorized
personnel.
Internal Audit
Company has proper third-party internal audit system to check every
transaction and monthly report of the same is also discussed with authorized personnel for
better improvement in internal control systems.
HUMAN RESOURCE
Human resource management is the management of an organizations
workforce, or human resources. It is responsible for the attraction, selection, training,
assessment, and rewarding of employees. HR also oversees organizational leadership culture
and ensures compliance with employment and labor laws. Human resource development combines
training and career development to improve the effectiveness of the individual, group, and
organization. A performance appraisal (PA) or performance evaluation is a systematic and
periodic process that assesses an individual employees job performance and
productivity in relation to certain pre-established criteria and organizational
objectives. Total around 292 plus employees were on the pay rolls of the Company in the FY
2022-2023.
RISK MANAGEMENT
It is important to note that risk management is an ongoing process and
does not end once risks have been identified and mitigated. An organizations risk
management policies should be revisited every year to ensure policies are up-to-date and
relevant.
RATIO ANALYSIS *
Particulars |
2022-23 |
2021-22 |
Variance
% |
Reasons for variance (in
excess of 25% compared to preceding year) |
| Debtors turnover ratio |
4.92 |
5.71 |
-14% |
- |
| Inventory turnover ratio |
8.92 |
10.48 |
-15% |
- |
Interest coverage ratio |
-1.95 |
2.63 |
-174% |
On Account of Increase in Short
Term Borrowings and Decline in Operating Profit during the year. |
| Current Ratio |
1.09 |
1.35 |
-19% |
- |
Debt Equity ratio |
0.47 |
0.36 |
31% |
On Account of Increase in Short
Term Borrowings and Operational Losses Incurred during the year. |
|
Operating profit margin |
-3.36% |
5.53% |
-161% |
On Account of increase in raw
materials cost and other cost, lower capacity utilization constrained by lower market
demand of finished goods and oth- er market related factors compared to previous fi-
nancial year. |
Net profit margin |
-5.25% |
1.73% |
-403% |
On Account of decline in
operational activities and operational profits during the year |
|
Return on Net worth |
-12.09% |
4.90% |
-347% |
Resulting from operation- al
losses on account of increase in raw materials cost and other cost, lower capacity
utilization con- strained by lower market demand of finished goods and other market
related factors compared to pre- vious financial year. |
Following are most significant risks and the Companys approach to
managing them.
Astron Paper & Board Mill Limited • Annual Report 2022-23 8
BOARD OF DIRECTORS.
CORPORATE INFORMATION
SECRETARIAL AUDITORS
Kirit Ghanshyambhai Patel Chairman & Managing Director Ramakant
Kantibhai Patel Whole Time Director
Karshanbhai Hirabhai Patel Director
Sudhir Omprakash Maheshwari Independent Director Dhiren Narendrakumar
Parikh Independent Director Dhyanam Sunilkumar Vyas Independent Director (from 20th May,
2022)
Anand Maheshwari Independent Director (from 14th July, 2022)
KEY MANAGERIAL PERSONNEL
Vashishath Raval Chief Financial Officer
(from 21st April, 2021 to 11th April, 2022)
Amit Mundra Chief Financial Officer (from 11th April, 2022)
Uttam Patel Company Secretary & Compliance Officer (upto 13th
January, 2023)
Hina Patel Company Secretary & Compliance Officer (from 14th
February, 2023)
AUDIT COMMITTEE
Anand Maheshwari Chairman (From 14th July, 2022)
Sudhir Maheshwari Member
Dhyanam Vyas Member (from 20th May, 2022)
Kirit G. Patel Member
NOMINATION & REMUNERATION COMMITTEE
Anand Maheshwari Chairman (From 14th July, 2022)
Dhyanam Vyas Chairperson (from 20th May, 2022)
Kirit Patel Member
STAKEHOLDERS RELATIONSHIP COMMITTEE
Dhyanam Vyas Chairperson
(from 20th May, 2022)
Sudhir Maheshwari Member
Ramakant Patel Member
Anand Maheshwari Member (From 14th July, 2022)
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
With reference to MCA Notification dated 28th September,2020, where the
amount required to be spent by a company on CSR does not exceed fifty lakh rupees, the
requirement for constitution of the CSR Committee is not mandatory and the functions of
the CSR Committee, in such cases, shall be discharged by the Board of Directors of the
company, Hence, CSR stand dissolved w.e.f 14.02.2023.
STATUTORY AUDITORS
M/s SNDK & Associates, LLP, Chartered Accountants, Ahmedabad.
INTERNAL AUDITORS
M/s S. N. Shah & Associates Chartered Accountants, Ahmadabad
M/s. GKV & Associates, Practicing Company Secretaries, Ahmedabad.
REGISTERED OFFICE
Astron Paper & Board Mill Limited D-702, Ganesh Meridian,
Opp. High Court, S G Highway, Ahmedabad-380060
- mail: info@astronpaper.com , Website: www. astronpaper.com
Phone No : 079- 40081221
BANKERS
Union Bank of India ICICI Bank
SBM Bank (India) Axis Bank Bank of Maharashtra
REGISTRAR & SHARE TRANSFER AGENT
Link Intime India Pvt. Ltd. 5th Floor, 506 TO 508,
Amarnath Business Centre–1(ABC-1), Beside Gala Business Centre,
Nr. St. Xaviers College Corner, Off. C G Road, Ellisbridge,
Ahmedabad - 380006.
079 - 2646 5179
Email: ahmedabad@linkintime.co.in
PLANT LOCATION:
UNIT-I
PM - 1 & 2
Unit-I At Halvad : Survey No. 52/1-2, 53/1-2, 49/1-2, 50, 51/1-2-3, 54,
55, Village Sukhpar, Ta. Halvad, Dis. Morbi, Gujarat : 363 330.
UNIT-II
Survey No 64/1, Chubadak, Nr. Ratnal Essar Petrol Pump, Bhuj-Anjar
Highway, Bhuj– 370 105
Balaram Papers Pvt. Ltd.
(Wholly Owned Subsidiary Company acquired in July, 2018)
Plant Address: Survey No : 256 and 258, Dhanali Road, Nr. Deem Roll,
At. Ganeshpura, Ta. Kadi,
Dist. Mehsana-384001 Gujarat, India
PAID UP EQUITY SHARE CAPITAL
4,65,00,000 Equity Shares of INR 10/- each
LISTED ON (SINCE 29TH DECEMBER, 2017)
BSE Ltd (Code: 540824)
National Stock Exchange of India Ltd (Code: ASTRON)
+91-9892691696
