D.K. Enterprises Global Ltd Management Discussions

Our Company was incorporated in the year 2019 as "D.K. ENTERPRISES GLOBAL HUB LIMITED" under the provision of the Companies Act, 2013 in Panchkula, Haryana. The name of our company was subsequently changed to "D.K. ENTERPRISES GLOBAL LIMITED" pursuant to special resolution passed by the Shareholders dated March 20, 2019 of the company and a fresh certificate was issued by the Registrar of Companies, NCT of Delhi & Haryana dated April 04, 2019. Our Company was incorporated with the main objects as mentioned below:

1) Manufacturing of Packaging material

2) To carry on the business of manufacturing of all types of Primary and Secondary Packaging Materials, including self adhesive tapes like BOPP, Banding, Masking and other specialty tapes, extrusion Iamination and other laminated products for the soaps and food industry and corrugated rolls and boxes for sale in domestic as well as foreign markets.

INDUSTRY STRUCTURE AND DEVELOPMENTS

Changing economic and business conditions, rapid technology, innovation and adoption and globalization are creating an increasingly competitive market environment that is driving corporations to transform the manner in which they operate. Companies in this environment are now focusing even more on their business objectives such as revenue growth, profitability, and asset efficiency.

OPPORTUNITIES AND THREATS

1) Strength

Growth in the Indian economy and demand creates unprecedented opportunities for company to invest significantly in each of its core businesses. Outlook for the overall industries is positive. In keeping with the philosophy of continuous consumer centric approach which is the hall mark of any organization, several developmental activities have been planned for the next fiscal year.

2) Opportunities

Vast Industrial Presence in both Public and Private Sectors Huge demand for Domestic services Avail of Low-cost, Skilled Human Resources. Proactive government continued thrust on reforms- Further liberalization under process.

3) Threats

We operate in a competitive atmosphere. Some of our competitors may have greater resources than those available to us. While product quality, brand value, distribution network, etc are key factors in client decisions among competitors, however, price is the deciding factor in most cases. We face fair competition from both organized and unorganized players in the market. We believe that our experience in this business and quality assurance will be key to overcome competition posed by such organized and unorganized players. Although, a competitive market, there are not enough number of competitors offering services like us. We believe that we can compete effectively in the market with our quality of services and our reputation. We believe that the principal factors affecting competition in our business include client relationships, reputation, and the relative quality and price of the services.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

Our product mix has evolved over the past several years as we have entered new product categories. Our product portfolio includes industrial speciality self-adhesive tapes, which are made from film, foam, foil, fabric and paper, with different kind of adhesive system to suit industrial application and specification oriented adhesive tapes. We make Filament tapes, Fiber glass fabric tapes, polyester tapes, cotton fabric tapes, Double sided tapes, scrim tapes, reinforced foil tape, reinforced paper tape, high temperature resistant polyester tapes, Aluminum foil tapes, ECO friendly paper tapes, BOPP Packaging tapes, Protection tapes, Masking tapes, Foams Tapes etc.

DKEGL having a comprehensive range of high-quality laminated packaging solutions designed to meet the diverse needs of various industries. Our laminates provide superior product protection, extended shelf life, and excellent printability for enhanced brand presentation. e.g 2/3/4 Ply Printed Laminates, Extrusion Coated Paper, Soap Wrappers (Full HMA And Registered HMA), Soap Wrapper (Bopp/Bopp) (High Speed Lines), ORS Pouches (Sandwich Laminates), Banderoles For High Speed HFFS Machines (Dairy), Lidding Films For High Speed HFFS Machines (Dairy), Stand Up And Pillow Pouches.

DKEGL having a comprehensive range of corrugated packaging solutions designed for optimal protection, efficiency, and sustainability. Our corrugated products are manufactured using premium- quality materials and advanced technology to ensure superior performance across various industries and applications. e.g. Trays for High Speed Lines, Corrugated Boxes, Corrugated Sleeve Rolls.

OUTLOOK

The Continual growth in the in India sector is necessary to give necessary support to the industry. The company is making all effort to accelerate the growth of its business. It Expect to improve its position in the market by focusing in the technologically advanced and more profitable Product and market segment and working aggressively in the area of productivity, efficiency, and cost reduction.

RISKS AND CONCERNS

The industry is exposed to the following risk and concerns:

1) Complex Global Supply-Chain

Companies have to juggle internal and external resources while staying within international standards. Issues such as traceability and compliance are increasing operational burdens.

2) Uncertain Demand

Aggregately, economic volatility and cyclical demand cause fluctuations in production. On a more granular level, consumer preference can cause spikes in demand for an individual products or company. Efficient lean capabilities must be in place to keep inventory aligned with demand.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an effective and reliable internal control system commensurate with the size of its operations. At the same time, it adheres to local statutory requirements for orderly and efficient conduct of business, safeguarding of assets, the detection and prevention of frauds and errors, adequacy and completeness of accounting records and timely preparation of reliable financial information. The efficacy of the internal checks and control systems is validated by self-audits and internal as well as statutory auditors.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Your Company follows a policy of building strong teams of talented professionals. People remain the most valuable assets of your Company. The Company recognizes people as its best employees and the Company has kept a sharp focus on Employee Engagement. The Companys Human Resources is commensurate with the size, nature and operations of the Company.

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

Ratio	Unit of measurement	FY-2024-25	FY-2023-24
(a) Current Ratio	No. of times	1.97	2.14
(b) Debt Equity Ratio	No. of times	0.27	0.24
(c) Debt Service Coverage Ratio	No. of times	5.43	5.32
(d) Return on Equity Ratio	Percentage (%)	18.96%	17.84%
(e) Inventory Turnover Ratio	No. of times	16.30	16.29
(f) Trade Receivable turnover Ratio	No. of times	6.32	5.81
(h) Trade Payable turnover Ratio	No. of times	10.93	9.24
(i) Net Capital Turnover Ratio	No. of times	2.56	2.54
(j) Net Profit Ratio	Percentage (%)	6.83%	6.45%
(k) Return on Capital Employed	Percentage (%)	22.63%	21.59%
(l) Return on Investment	Percentage (%)	N.A.	N.A.

CAUTIONARY STATEMENT

Statements in the Management Discussion & Analysis, describing the Companys objectives, projections and estimates are forward looking statement and progressive within the meaning of applicable laws & regulations. Actual result may vary from those expressed or implied. Important developments that could affect the Companys operations are significant changes in political and economic environment in India, tax laws, exchange rate fluctuation and related factors.