Indian Toners & Developers Ltd Management Discussions

INDUSTRY AND OUTLOOK

The Company manufactures Compatible Toners for Photocopiers, Laser Printers and Digital Multi-function printers. The Company has two manufacturing plants in Rampur (U.P.) and Sitarganj (Uttarakhand) and caters to the needs of both the domestic and export markets.

The long term aim of the Company is to strengthen its established brand image by offering customers quality products at reasonable prices. The aim of the Quality Policy of the Company is to provide satisfaction to its customers. To achieve this, the Company is committed to develop, produce and market products that cater continuously to the need and expectations of customers and giving the Company competitive advantage. The R & D team of the Company is giving good results as the Company has developed several new products at competitive prices which helps in facing competition and boosting export.

KEY STRENGTHS :

ITDL - SUPREMO the flagship brand of the Company for compatible toner products has a strong presence in the market and a high recall among customers. The products have a reputation of being highly superior quality.

A dedicated team of engineers and scientists always strive to improve existing products or create new products. They also ensure quality control.

A wide distribution network of more than 130 distributors and retail dealers.

A dedicated customer care team for prompt and quality after-sales service, informing customers about new technologies and helping them choose products based on their specific needs through scientific analysis.

Exploring avenues for product differentiation and innovation to stay competitive in the face of import challenges.

Dedicated Management initiatives are being taken to diversify our market presence, including exploring opportunities in the toner market segment.

A team of highly qualified professionals and top management who tirelessly work to maintain quality and enhance customer satisfaction.

Cost saving projects in every field to control costs.

RISKS & CONCERNS

Risk of heightened competitive activity from existing players at home and overseas.

Since substantial raw materials of the Company is imported, Foreign Exchange fluctuations, increase in oil prices and international freight etc. may have adverse impact on the cost of manufacture of the Co.s products. The Companys ability to pass on the cost increase by corresponding increase in the selling prices of its products is a constraint due to tough competition. However, our imports and exports are almost equal and therefore, we are more or less naturally hedged and are not much affected.

MITIGATION

The Company has been regularly assessing the threats, risks and concerns it is exposed to as well as keeping adequate strategy in place to mitigate the same.

The top management has extensively monitored, involved and continuously evolved effective strategies for mitigation of above mentioned risks.

The Company invests in technology to ensure it stays ahead of competition.

Continuous focus on R&D has led to development of innovative products and use of scientific analysis to assist customers in choosing right products.

The Company procures its key raw materials in bulk quantity leveraging its huge scale of operations. This helps it to source the raw materials at most competitive rates.

The Company enjoys long-standing relationship with large suppliers ensuring unhindered supply of materials at competitive rates

OPPORTUNITIES & THREATS

Exports present a big opportunity for the Company for increasing the capacity utilisation and improving profitability. The Company has taken several steps to increase its presence in many countries.

On the domestic front also, there is an opportunity to further increase the market share because of the well-established brand image and support due to anti-dumping duty.

The Company has increased its production capacity to 5400 MT as planned.

Risk of imports of low priced toners coming into the domestic market has always been there. Imposition of Anti-Dumping Duty by the Govt. on black toner in powder form during the year has covered the risk to some extent.

The company is expected to keep up the current momentum in terms of its business projections.

No major threats are envisaged and the company is quite optimistic on future growth opportunities.

QUALITY :

ITDL has continuously invested in processes, people, training, information systems, quality standards, frameworks, tools and methodologies to mitigate the risks associated with compatible Toner Trade. Adoption of quality models and practices for processes have ensured that risks are identified and mitigated at various levels in the planning and execution process.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

There is only one segment in the company i.e. manufacturer of compatible toner.

DISCUSSION ON FINANCIAL PERFORMANCE

The revenue from operations for the year were Rs. 15675 Lacs. The Company earned a profit before tax of Rs. 3405 Lacs. The nearly debt free status of the Company and improved liquidity resulted in significantly lowering the finance cost.

For the Financial Year 2023-24, the Board had recommended an interim dividend of Rs. 4.50/- per equity share (45% of face value of Rs. 10), which is also the final dividend for the year.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has proper and adequate Internal Control System to ensure that its assets are safeguarded and that transactions are properly authorized, reported and recorded. The Company has also a system of internal audit and management reviews to ensure compliance with the prescribed procedures and authority levels and compliance with all rules, regulations and guidelines of the various Authorities.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES/ INDUSTRIAL RELATION FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Industrial relations remained cordial during the year. The total number of employees as on 31.03.2024 was 229 nos.

DISCLOSURE OF ACCOUNTING TREATMENT

The financial statements of the Company have been prepared to comply in all material respects with the accounting standards notified under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India. The management accepts responsibility for the integrity and objectivity of these financial statements, as well as for various estimates and judgments used therein. The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, so that the financial statements reflect in a true and fair manner the form and substance of transactions, and reasonably present the state of affairs, profits and cash flows for the year.