Just as the world was on the mend post multiple waves of COVID, the Russia-Ukraine
conflict induced a trail of irreversible economic, social and political effects. Global
inflation touched an all-time high of >8% with many developed economies witnessing
double digit inflation figures for the first time in many decades. This led the central
banks across the globe to simultaneously hike interest rates in a bid to tame inflation.
As supply chain disruptions and rise in commodity prices posed a temporary retardant to
this growth story, bulk of low-carbon investments were directed towards building resilient
supply ecosystems along with renewable capacities. Having weathered the storm in 2022,
this year the economies will be seen establishing their redefined pathways.
Indias growth continues to be resilient despite some signs of moderation in growth,
although significant challenges remain in the global environment, India was one of the
fastest growing economies in the world. As per The International Monetary Fund (IMF)
report, Global growth will slow down from last years 3.5 percent to 3 percent this year
and Global inflation is projected to decline from 8.7 percent last year to 6.8 percent
this year and 5.2 percent in 2024.
The (IMF) forecast a dip in Indias GDP growth over the next two years. It indicated
that Indias GDP growth would fall from 7.2% in FY23 to 6.1% in the current financial
year, and then rise slightly to 6.3% in FY25. An RBI bulletin released earlier in July,
2023 also said that India could become a developed country by 2047 with an average annual
real GDP growth of 7.6% over the next 25 years.
Meanwhile, World Bank President recently opined that domestic consumption of India
provides a natural cushion to the countrys economy against global slowdown as bulk of the
GDP depends on local demand in India.
Your Company achieved revenue from operations (net of GST) of Rs. 46462 lakhs as
against the previous years revenue from operations (net of GST) of Rs. 40902 lakhs i.e.
an increase of Rs. 5560 lakhs (13.60 %). The export sale of the Company has been increased
from Rs. 8200 lakhs in previous year to Rs. 10440 lakhs in current year i.e. Increase of
Rs. 2240 lakhs ( 27.31%).
Your Company has achieved total comprehensive income of Rs. 1174 lakhs as against the
previous year of Rs. 1487 lakhs.
Your Company has been working with regulatory bodies to develop packaging standards and
increase demand of prime tinplate in our country through BIS (Bureau of Indian Standards).
Your Company is also investing in digitalisation of supply chain, finished goods tracking
and better inventory control practices to improve customer compliances and shorter lead
times.
OPPORTUNTIES & THREATS
Our Company is one of the leading and established Companies in Metal packaging
industry. We are keenly conscious of the emerging opportunities in the can-manufacturing
sector in India as well as abroad and we shall endeavor to take benefit of every good
opportunity in the very best interest of our members. Following are the opportunity and
threats of our Company:
OPPORTUNITIES
1. Historical established performance.
2. Established customer profile and wide customer base.
3. Reputation for quality, well established brand.
4. Edge in raw material procurement.
5. Ability to expand and diversify.
6. Expansion in export market.
7. Professionally & technically qualified Human Resource.
8. Priority of the Government to promote Food Processing Industry.
9. Innovation and new product development.
10. Environmental concerns against plastic products
THREATS
1. Global & Domestic competition
2. Lower recovery in Global Economy.
3. Volatility in exchange rate (with rupee depreciation).
4. Competition from unorganized sector.
5. Thin margin.
6. Development and innovation in alternate packaging materials
7. Uncertainty in availability of seasonal fruits & vegetables
8. Finance Cost
9. Increased cost of inputs like Tinplate & Labour Cost.
10. US & China Trade War
11. Impact of Quality Control Order dated 17/07/2020 on Steel and Steel Products. 12.
Antidumping Duty on EOE
PRODUCT WISE PERFORMANCE
The Company had been mainly focusing on food products and now gradually expanding its
base in non food sector also. In addition, Company is also developing new innovative
products for domestic and global market.
OUTLOOK
The outlook of the Company seems to be progressive. The management of the Company is
engaged in the task of reducing overheads and other costs. Company has a vision to
consolidate its position as leader in metal packaging segment.
RISK
There is a trend towards alternate packaging which is cheaper as compared to metal
packaging with shorter shelf life inspite of the fact that metal packaging has an edge
over them in terms of shelf life, sustainability etc.
CONCERN
The main concern is the high inflation in the Indian economy resulting into increase in
cost of various inputs particularly Tinplate and lower recovery in Indian and global
economy.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company has adequate internal control systems commensurate with its size and
complexity of operations. The Internal Control systems are aimed at monitoring efficiency
of operation, ensuring protection of resources, accuracy and promptness of financial
reporting and compliance with statutes and regulations. All the vital internal control
systems in the Company are working satisfactorily. Our statutory and Internal Auditors
have not reported any serious departure in any of the internal control systems. The Audit
Committee of the Company regularly reviews internal control systems of the Company and
continuous improvements are being made in the same. Budgets are prepared every year and
the actual performance is compared to the budgeted performance. The variances are reviewed
on a monthly basis and corrective actions are taken accordingly.
FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE.
Inspite of fierce competition & extremely challenging domestic and international
business environment, your Company delivers and achieves revenue from operations (net of
GST) Rs. 46462 lakhs as against the previous years revenue from operations (net of GST)
of Rs. 40902 lakhs i.e. Increase of Rs. 5560 lakhs (13.60%). The Export Sales has been
increased from Rs. 8200 lakhs in previous year to Rs. 10440 lakhs in current year i.e.
Increase of Rs. 2240 lakhs (27.31%).
The Company has achieved total comprehensive income of Rs. 1174 lakhs as against the
previous year of Rs. 1487 lakhs
STATUTORY COMPLIANCE
All the statutory compliance with respect to SEBI regulations, provisions of the
Listing Regulations, 2015 with the Stock Exchanges, Income Tax Act, Goods and Services Tax
Act, 2017, Companies Act, 2013 and all other applicable Acts, and Rules & Regulations
are complied with.
HEALTH & SAFETY
The Company continuously focuses on the health and safety of all its workers and staff.
Adequate safety measures have been taken at the plant for the prevention of accidents or
other untoward incident. The necessary medical facilities are available for the workers
and staff to maintain good health and also COVID related necessary precautions are being
properly followed.
CORPORATE SOCIAL RESPONSIBILITY
The Company recognizes the fact that, beyond the day-to-day conduct of its business, as
a responsible corporate citizen, it has to discharge its duties towards the larger society
in which it operates.
The core areas identified by your Company and CSR Committee in order to improve the
society are Promotion of education & skill development, Healthcare, Rural Development,
Drinking Water Project and Clean Environment.
MATERIAL DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL FUND
The Companys ability to deliver value products to clients depends largely on its
ability to attract, train, motivate, empower and retain the best professionals. Annual
performance appraisal system is already in place to evaluate the operational performance
of each employee on the basis of predefined Key Responsibility Area. The Company has 492
permanent employees as on 31st March, 2023.
Industrial relation front continued to be peaceful with no working day loss due to any
activity.
DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED
EXPLANATIONS THEREOF
|
2023 |
2022 |
|
| Debtors Turnover |
4.28 |
3.74 |
Ratio has improved as compared to previous year |
| Inventory Turnover |
5.36 |
4.44 |
Ratio has improved as compared to previous year |
| Interest Coverage Ratio |
4.57 |
4.45 |
Ratio has improved as compared to previous year |
| Current Ratio |
2.67 |
1.97 |
Ratio has improved as compared to previous year |
| Debt Equity Ratio |
0.39 |
0.47 |
Ratio has improved as compared to previous year |
| Operating Profit Margin (%) |
6.41 |
6.76 |
The operating profit margin slightly decreased due to increase in Raw
Material cost |
| Net Profit Margin (%) |
3.55 |
3.71 |
due to lower operating margin, the Net Profit |
DETAILS OF ANY CHANGE IN RETURN ON NET WORTH
The return on net worth is in line with return on sales.
| Return on Net Worth (%) |
8.72 |
8.50 |
The Return on Net Worth is Increased as compared to previous year |
CAUTIONARY STATEMENT
The statements in the "Management Discussion and Analysis Report" section
describes the Companys objectives, projections, estimates, expectations and predictions,
which may be "forward looking statements" within the meaning of the applicable
laws and regulations. The actual performance may differ materially from those expressed or
implied, depending upon the economic and climatic conditions, Government policies and
other incidental factors. Such statements represent intentions of the management and the
efforts put in to realize certain goals. The success in realizing these depends on various
factors both internal and external. Investors, therefore, are requested to make their own
independent judgment before taking any investment decisions.
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