bartronics india ltd share price Management discussions

Pursuant to the Regulation 34 read with the Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015 your Directors wish to report as follows:

Overview:

This is your company?s 30th Annual Report and highlights of the journey thus far are mentioned below:

Incorporated in Hyderabad, India in 1990, Your Company started with providing solutions based on Bar Coding, one of the oldest Automated Identification and Data Capture (AIDC) technologies. Since then, in the past three decades, it has been pioneering in introducing newer technologies and solutions in India based on Biometrics, RFID, POS, EAS, and Smart Cards etc.

Your company had streamlined its abilities and technologies to enter Financial Inclusion business and has emerged as a formidable player in this field. Today, most of company?s revenues is contributed by this division.

Business Scenario

During the year, entire world continued to face un-precedented challenges thrown by Covid-19. The challenges businesses faced varied from supply chain constraints to inflation. Governments across the globe are relentlessly trying to get the inflation back in control. All major economies showed marked improvement in their GDP growth; However, one must note that this was on a lower base of previous year.

Towards the end of the year, Geo-Political tensions spiraled supply chain disruptions which affected manufacturing industry. However, Financial Inclusion Business was more resilient in nature due to exposure to Government Initiatives. Amidst these challenging times, the focus of your company was to ensure that its customers are served properly while its employees remained safe. To keep its employees safe, your company implemented Work-From-Home culture without compromising on any of its deliverables.

The year passed by was important for the company from the Resolution Process point of view as well. The Resolution Plan which was approved by COC was approved by Hon?ble NCLT on March 10, 2022. Successful implementation of Resolution Plan is materially important for the company to keep itself as a "Going Concern". This is evident from the fact that the Company could not participate in few tenders and continue a Financial Inclusion project owing to its ineligibility on account of some factors like Negative Networth, ‘Non-Performing Asset? Status (NPA) amongst others. Manufacturing unit too needs investments & upgradation together with management focus to turnaround and revive the manufacturing facility which the Successful Resolution Applicant can provide after the implementation of Resolution Plan.

Foreign Currency Convertible Bonds (FCCB):

Bartronics India Ltd. had issued Foreign Currency Convertible Bonds (FCCB) for an aggregate sum of USD 50mn in January 2008. These bonds got matured in February 2013. In this regard the company had filed a request for an extension of the maturity of the bonds to May 4, 2014 with Reserve Bank of India which was granted by them vide their letter dated February 21, 2014. The Company has applied for further extension of the maturity with Reserve Bank of India and is waiting to hear from RBI to move forward.

However, On December 2, 2019 your company got admitted under CIRP and the court appointed Shri. Chinnam Poorna Chandra Rao as ‘Resolution Professional? for the company. Some Bondholders who accessed company disclosures and public announcements made by the Resolution Professional have submitted their claim. Addressing these claims was a part of the "Resolution Plan". This "Resolution Plan" submitted by "Resolution Applicant" was approved by Hon?ble NCLT, Hyderabad Bench on March 10, 2022. As laid by the law, this matter will now be settled during the implementation of Resolution Plan.

Bank Dues:

As the company got admitted under CIRP, Banks and other financial institutions have submitted their claim to the ‘Resolution Professional?. As laid by the law, this matter too will now be addressed during the implementation of Resolution Plan.

Information with regard to various actions & steps taken under CIRP, details of claims received and admitted etc. have been uploaded to the company?s website. http://www.bartronics.com/CIRP.html

Key Developments

As mentioned above, during the year "Resolution Plan" was approved by Hon?ble NCLT, Hyderabad Bench on March 10, 2022. Furthermore, after the approval of Resolution Plan by Hon?ble NCLT, Hyderabad Bench; the role of Sri. Chinnam Poorna Chandra Rao changed from being a ‘Resolution Professional? to ‘Monitoring Agent?.

Opportunities & Threats

The slowdown caused by the outbreak of pandemic due to coronavirus is more transient than structural. Economy is expected to revive as the risk due to the outbreak recedes. Any revival in the economy will be an opportunity for the company to grow. However, Company?s inability to protect its operations owing to several headwinds will increase threat from its competitors.

Risks & Concerns

Currently, the Company is under CIRP wherein a Resolution Plan is already approved by Hon?ble NCLT, Hyderabad Bench on March 10, 2022. Successful implementation of this Resolution Plan is materially important to keep the Company as "Going Concern".

Human Capital

Your company believes that the value of any enterprise is only as good as its Human Capital. The Resolution Professional is also putting valiant efforts to ensure that the employees do not face any adverse situation due to the ongoing Resolution Process faced by the Company.

There were no cases of sexual harassment of woman at work place. Also, there are no instances of Child Labour/ Forced Labour/ involuntary labour and discretionary employment during the year.

Discussion on financial performance with respect to operational performance:

Your Directors herby report that the Company has achieved a turnover of Rs. 6,556.18 lakhs upto March 31, 2022, consisting of Twelve (12) months, as against the turnover of Rs 6,343.90 lakhs for the previous year ended March 31, 2021 consisting of Twelve (12) months. The highlights of the financial results are given below:

CONSOLIDATED FINANCIAL RESULTS:

Rupees in Lakhs

Consolidated Financial Results
Particulars	Year	Year
	2021-22	2020-21
Net Sales	6,556.18	6,343.90
Other Operating income	12.85	23.80
Total Income	6569.03	6,367.71
Total Expenditure	5,991.94	5,748.06
EBITDA	577.09	619.64
Interest	5,238.27	5,239.53
PBDT	(4,661.19)	(4,619.88)
Depreciation & Amortization	426.99	428.29
PBT	(5,088.18)	(5,048.17)
Tax Expense	58.06	124.95
Other Comprehensive In-come	1,181.75	(778.84)
PAT	(3,848.37)	(5,702.06)

Segment wise product wise performance of the company:

The activities of the Company relate to only one segment i.e. the business of providing Automatic Identification & Data Capture (AIDC) Solutions.

Internal Control Systems:

The Company has an adequate system of internal controls in place. It has documented policies and procedures covering all financial and operating functions. These controls have been designed to provide a reasonable assurance with regard to maintaining of proper accounting controls for ensuring reliability of financial reporting, monitoring of operations, and protecting assets from unauthorized use or losses, compliances with regulations. The Company has continued its efforts to align all its processes and controls with global best practices.