Duropack Ltd Management Discussions.

OVERVIEW

Duropack Limited is engaged in the field of manufacture and export of multi-layer laminate films, pouches and bags, wide width Holographic Films, Stickers, etc. Our vision is to be preferred supplier for packaging to Customers across India and Overseas maximizing value for all stakeholders.

This Management Discussion & Analysis Report presents the key performance highlights of the year 2019-20 pertaining to the Companys business. This review should be read in conjunction with the Integrated Report presented in the earlier sections of this Annual Report, the Companys financial statements, the schedules and notes thereto and the other information included elsewhere in this Annual Report. The Companys financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS), complying with the requirements of the Companys Act 2013 and the guidelines issued by Securities and Exchange Board of India (SEBI).

Our ultimate objective is to meet Customers dynamic packaging needs and to achieve excellence in all concerned areas to produce cost effective packaging with highest quality & standards for our esteemed Customers.

INDUSTRY STRUCTURE & DEVELOPMENTS

The Company operates in the single business segment of manufacture of Multilayer Films, Flexible Laminated Films, Plastics bags and pouches, Holographic Films products Etc. This sector of packaging is witnessing intense competition from numerous players in the country. The competition in the market place has also intensified as a result of low cost competition and opening up of the economy.

COVID-19 IMPACT ON BUSINESS OUTLOOK

As COVID-19 spread rapidly, both in terms of number of cases and the affected countries, it is characterised as a pandemic. Even though there was a complete lockdown from March 2020 and considering the situation of Manpower and Labour required and involved, the Company briefly started its operation from May 2020 with all the safety measures in place. In view of the pandemic, the business of the Company is adversely affected due to the lockdown and the exact impact of COVID-19 as of now is hard to ascertain. The Company has adopted Work from Home Policy for the Banking/ Accounting and Regulatory Compliances while other departments were non-functional due to COVID-19.

OPPORTUNITIES, THREATS, RISKS AND CONCERNS

The Company had the opportunity to increase the sales as there was growing demand coupled with price rise of the products. The Company seeks lots of opportunities in the packaging market in future. The Company anticipates the increasing demand of flexible packaging because of development of retail selling in the country. However a price fluctuation in the raw material prices is a concern.

SEGMENT PERFORMANCE

Due to the intense competition in the segment of flexible laminate there are number of players in this segment of business. The Company is striving to have the competitive position in the business segment of flexible laminates and making all efforts to increase the turnover in this segment.

INTERNAL CONTROL SYSTEM & THEIR ADEQUACY

The Company has a good system of internal controls in all sphere of its activity. The internal control system is supplemented by effective Internal Audit. The audit committee regularly reviews the findings of the internal auditors and effective steps to implement the suggestion /observation of the auditors are taken and monitored regularly. In the opinion of the Board, an effective internal control system commensurate to the size of the Company exists.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Company has achieved total income (including other income) of Rs. 17.17 Crores and Net Profits after tax is Rs. 85.21 Lacs. The Sales turnover has decreased from Rs. 17.32 Crores to Rs. 17.06 Crores, the quantity of sales is lesser than last year.

ENVIRONMENT, OCCUPATIONAL HEALTH & SAFETY

Your Company is committed to conducting its operations with utmost concern towards the environment and ensuring a safe and healthy workplace for all employees. The collective endeavour of the Companys employees at all levels is directed towards sustaining and continuously improving standards of environment management, and occupational health & safety in an endeavour to meet and exceed international benchmarks.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES /INDUSTRIAL RELATIONS FRONT, INCLUDING THE NUMBER OF PEOPLE EMPLOYED.

The Company has employees and the cordial relations were maintained with all of them throughout the year. The Board of the Company wishes to place on record its appreciation to all the employees for their sustained efforts in improving the capacity utilization and operational efficiency.

The Company has initiated many steps in career and personality development of the employees belonging to different departments. The employees attended seminars and other training programs to enhance their skills and knowledge.

To motivate and to get the best results from the employees, the Company has the performance based incentive scheme for its entire management & office cadre.

CAUTIONARY STATEMENT

Statement in the Management Discussion and Analysis describing the Companys objectives, expectations, predictions and assumptions may be forward looking within the meaning of applicable Securities Laws and Regulations. Actual result may differ materially from those expressed herein. Important factors that could influence the Companys operations include global and domestic economic conditions affecting demand, supply, price conditions, change in Governments regulations, tax regimes, other statutes and other factors such as litigation and industrial relations.

For and on behalf of Board of Directors

For Duro Pack Limited

Date: 02.09.2020
Place: New Delhi
Sd/- Sd/-
Vivek Jain Vineet Jain
Managing Director Whole time Director& CFO
DIN: 01753065 DIN: 01823758