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 20^th March, 2019 of the company and a fresh certificate was issued by the Registrar of Companies, NCT of Delhi & Haryana dated 04^th April, 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.

Opportunities and Threats

The company is taking maximum efforts to capitalize on business opportunities & further expect a better outlook in the coming years. The threats to the segment in which the company operates are pricing pressure arising due to competition from low cost suppliers, technology up gradation, severe competition and newly emerging competitive nations and stricter environment laws. This competition has been getting tough and the last year was more tough as the pricing conditions were not conducive and the tough competition in the international market especially related to the raw material made the working environment more stiff. The Management has been consistently monitoring these threats and the persistent efforts have made it possible that the Company has been able to sail through tough times.

Segment-wise or product-wise performance.

Total revenue of our company is derived from BOPP Tape and laminates, Corrugated sheets and boxes, eliminations. Indian plastic & beverage and textile market is highly competitive. But our company has always put great emphasis to sustain satisfactory performance by focusing on quality product to its customers and by performing reasonably well on export front.

Outlook

In recent years Indian economy under the new government has gathered strong momentum. The company is optimistic about the recovery of Indian economy and the capital market. The country has to grow economically to with stand any international pressures from foreign countries. The way to economic growth begins with capital market development. The capital market industry in other words is backbone to economic growth in country.

Risks and concerns.

Here are some identified risks, their impact, and mitigation strategies:

Competition Risk: The market being volatile and regular fluctuations in the raw material prices and further to this the ever changing needs and requirements of the customers gets to the nerves and the stiff competition ever increasing. Steps are taken at each level to minimize such risks and regular updating and both internal and external audits help in reduction of the risk factors.

Global Economic Volatility Risks: The Global Economic Volatility leads to huge differentiation in the prices in a short span of times. This not only effects the cost of production but also hampers the production process. Keeping all this in mind the regular efforts are being made to counter this. The regular and continues efforts lead to overcome this volatility.

Raw Material Import Risks: D.K. Enterprises is actively working to broaden its vendor base and develop vendors so that these types of risks do not pose a threat.

People Risks: D.K. Enterprises effective HR strategy covers various aspects such as learning and development, recruitment, benefits administration, compensation management, performance appraisal, employee and labour relations, and compliance management, ensuring stability and continuous growth.

Financial Risks: D.K. Enterprises addresses financial risks through high standards of corporate governance and compliance, cash management services to manage liquidity risk, creditworthiness assessments, provisions for bad debts, and prudent measures for foreign exchange and interest rate management.

Commodity Risks: The volatility of commodity prices can impact the business. D.K. Enterprises tackles this challenge by procuring materials against specific orders and maintaining a strong export base, providing a safety net for raw material procurement.

Internal Control Systems and their Adequacy:

The Company has put in place internal control systems and a structured internal audit process vested with the task of safeguarding the assets of the organisation and ensuring reliability and accuracy of the accounting and other operational data. The internal audit team reports to the Audit Committee of the Board of Directors.

Similarly, Company maintains a system of a monthly review of the business as key operational control, wherein the performance of units is reviewed and corrective action is initiated. We also have in place a capital expenditure control system for authorizing spends on new assets and projects. Accountability is established for implementing the projects on time and within the approved budget.

The Audit Committee is regularly apprised of the internal audit findings and regular updates are provided on the action taken on the internal audit reports. The Audit Committee reviews the quarterly, half-yearly and annual financial statements of the Company. A detailed note on the functioning of the Audit Committee and of the other committees of the Board forms part of the Annual Report.

During the year, we carried out a detailed review of internal financial controls. The findings were satisfactory and suggestions for improvement have been taken up for implementation. Policy guidelines and Standard Operating Procedures (SOPs) continue to be updated where required, to keep pace with business requirements.

Our Strengths

• Experienced Promoters and Management Expertise & Pool of Experienced and Technically trained Manpower.

• Good Presence in MNCs and having own Exclusive Brand: Sankyo

• Infrastructure and Integrated capabilities to deliver quality products and services

• Objective is to satisfy customer on Quality, Cost & Commitment of timely supplies & In house test facilities.

• Diversity of Products

Material developments in Human Resources / Industrial Relations front, including number of people employed.

The Company values and appreciates the dedication and drive with which its employees have contributed towards improved performance during the year under review. The relations with workers and staff are cordial during the year under review. All issues pertaining to staff matters are resolved in harmonious and cordial manner.

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-2023-24	FY-2022-23	% Change
(a)	Current Ratio	No. of times	2.14	2.26	-5.41%
(b)	Debt Equity Ratio	No. of times	0.24	0.18	34.04%
(c)	Debt Service Coverage Ratio	No. of times	5.32	4.60	15.76%
(d)	Return on Equity Ratio	Percentage (%)	17.84%	18.99%	-5.91%
(e)	Inventory Turnover Ratio	No. of times	16.29	14.21	14.67%
(f)	Trade Receivable turnover Ratio	No. of times	5.81	10.41	-44.71%
(h)	Trade Payable turnover Ratio	No. of times	9.24	9.85	-6.15%
(i)	Net Capital Turnover Ratio	No. of times	2.54	3.05	-16.73%
(j)	Net Profit Ratio	Percentage (%)	6.45%	5.80%	11.40%
(k)	Return on Capital Employed	Percentage (%)	21.59%	22.32%	-3.19%
l(l)	Return on Investment	Percentage (%)	N.A.	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.

By order of the Board For D.K. ENTERPRISES GLOBAL LIMITED

	Sd/-
	Mr. RAKESH KUMAR
Date: 27.06.2024	Chairman cum Managing Director
Place: Panchkula	DIN 08374550