Innovative Tyres Management Discussions


MANAGEMENT DISCUSSION AND ANALYSIS REPORT

In terms of Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 the Management Discussion and Analysis Report (MDAR) is structured as follows:

Industry structure and developments

Opportunities

Segment-wise or product-wise performance

Outlook

Threats, Risk and Concerns

Internal Control System

Financial and operational performance

Material Development in Human Resources

Some Statements in this discussion may be forward looking. The Companys actual results, performance or achievements can thus differ materially from those projected in any such forward-looking statements in the management discussion and analysis on account of various factors such as changes in Government regulations, tax regimes, impact of competition, etc.

INDUSTRY OVERVIEW

The Company is principally engaged in the business of manufacturing and Processing of Automotive Tyres and Tubes. During the year under review the Company continued to remain under the Corporate Insolvency Resolution Process (CIRP). The operations were closed so revenue decreased drastically.

The Resolution Plan submitted by M/s. Ten on Ten Rubtech Private Limited was approved by the Committee of Creditors on December 31, 2022 and the said Resolution Plan was then approved by the Hon ble National Company Law Tribunal, Ahmedabad Bench (‘NCLT) vide its order dated August 09, 2023. Subsequently, the new Board of Directors have been appointed in place of erstwhile Board of Directors of the Company in the current financial year. The new management has taken control of the operations of the Company pursuant to the order of the Hon ble NCLT. The new management is taking efforts to ramp up the business volumes of the Company by way of infusion of adequate Working Capital in the Company and the management is hopeful of a turnaround in the fortunes of the Company in the coming years.

OPPORTUNITIES AND THREATS:

The new management of the Company is well equipped with the vision to take Company towards high growth with optimum utilization of resources of the Company in proper manner. New management is taking diligent efforts to boost the capacity utilization of the Company which remained under utilized in the past few years due to inadequate working capital. The Company is in the process of hiring qualified professionals to stimulate the vision of new management towards the Company. The Company is well placed to encash the opportunity in terms of ease of doing business and the relaxations provided by the government which will accelerate the business of the company in terms of revenue. The Company had not been performing well in the past few years with respect to business operations due to tremendous financial pressure which led to inadequate working Capital. The new management of the Company is trying to streamline the business activities of the Company. The extent of impact on the future operational and financial performance of the Company will depend on the future developments, including duration, spread & gravity of the pandemic, the impact of the same on customers, vendors all of which are uncertain and cannot be predicted at this point in time.

SEGMENT WISE PERFORMANCE

Since, the company operates its business under one segment only the report on segment wise performance is not furnished.

OUTLOOK:

The new management of the Company shall review the existing risk management policy and lay down defined risk management mechanism covering the risk mapping and trend analysis, risk exposure, potential impact and risk mitigation process. Management is yet to set up exercises to be carried out to identify and evaluate, manage and monitor various risk.