jigar cables ltd Management discussions

OVERVIEW OF THE INDUSTRY STRUCTURE AND OUTLOOK:

"JIGAR CABLES LIMITED" is one of the largest manufactures of "SIGMA" brand electric wires & cables in India. We have been associated with manufacturing of Electric Wires & Cables for a period of 20 Years. We are an ISO 9001:2015 complied Companies and follow strict quality standards during manufacturing process. Once the product is ready, it is again checked for safety and quality assurance.

Quality being the integral part of our Companys manufacturing policy, we always stands committed to ensure quality starting from the usage of raw material to the final product which are available for our valuable customers and clients. The Companys manufacturing unit is well equipped with the up-to date plant and machinery and modern laboratory. Testing of products takes place during different levels of our manufacturing process to make assured that any errors or quality defects in the products can be rectified on a immediate basis and the final production is again checked by our testing laboratory prior to its dispatch. In nutshell, customer satisfaction has been our prime focus.

We have a Wholly Owned Subsidiary Company under the name of Jigar Polymers Limited, for manufacturing of PVC and XLPE. Thus, we strive to achieve operational efficiency by backward integration. Post commencement of business of Jigar Polymers Limited, all major raw materials required in manufacturing of our products would be in house which would allow us to provide utmost quality and consistency to our customers.

WIRES & CABLES (W&C) INDUSTRY:

The Indian W&C industry is estimated to have grown in low teens in FY23 to Rs. 680-730 billion in size, contributing to 40-45% of the Indian electrical industry. Sectors like Power, Railways, Infrastructure, Oil & Gas, Telecom, Real Estate, Renewables, Defence, Automobiles, etc. are the largest demand drivers for the industry

SEGMENT WISE PERFORMANCE:

During the year under review, Company has achieved all sales through only one segment and hence segment wise break up is not required.

STRENGTHS, WEAKNESSES, OPPORTUNITY AND THREATS:

Company is in growing stage and the power sector is also developing so that the demand for cables will increase in the years to come. Furthermore the Company has long standing relation with its clients and the main goal is quality which justify the Value For Money for them. As besides the market being a competitive market and the frequent change of government laws, rule and regulation may become threat for Company. Also the natural risks cant be stopped or in the hands of Company. But with the combine efforts of all the employees and other stakeholders of the Company we can achieve our goals and overcome any hurdles come across in our path of success.

STRETAGY GOING AHEAD:

The Indian W&C market is projected to grow in the upcoming years, on the basis of several megatrends, including Government focus on infrastructure, residential real estate, dynamic and evolving Indian railways market, increasing demand for renewable power generation, telecom upgradation and demand for data centres due to IT boom, FMEG industry and many more sectors. With the help of these factors Company will try to grow with the demanding market. It will make available these products to its clients at a competitive rate along with the best services and quality.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The total turnover of the Company for the year ended March 31, 2023 was Rs. 2,726.39 Lakhs. The profit after taxation for the year under review was Rs. 99.27 Lakhs.

The total consolidated turnover and Profit after taxation for the year under review were Rs. 2,845.57 Lakhs and Rs. 102.64 Lakhs respectively.

INTERNAL CONTROL SYSTEMS:

The Companys internal control systems are commensurate with the nature of its business, the size and complexity of its operations and such internal financial controls with reference to the Financial Statements are adequate. These have been designed to provide reasonable assurance that all assets are safeguarded and protected against loss from unauthorized use or disposition and that all transactions are authorized, recorded and reported correctly and the business operations are conducted as per the prescribed policies and procedures of the Company.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT:

The Company believes that the quality of our employees is the key to its success and is committed to providing necessary human-resource development and training opportunities to equip employees with additional skills to enable them to adapt to contemporary technological advancement and evolving workplace requirements.

SAFETY AND ENVIRONMENT COMPLIANCE:

We continuously seek to improve safety and reliability at all our production facilities. Company is in continuous efforts in ensuring high product quality standards and compliance with environmental laws and regulations.

STATUTORY COMPLIANCE:

Board of Director makes sure regarding compliance with provisions of various statutes after obtaining confirmation from all the operating activities of the Company. The Company Secretary ensures compliance with SEBI Regulations and provisions of the Listing Agreement and with the guidelines on insider trading for prevention of the same.

CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis, relating to the Companys objective, projections, estimates, expectations, may be forward-looking statements. The Companys actual results, performance or achievements could thus differ from those projected in any forward-looking statements. Important factors that could make a difference to the Companys operations include economic and political conditions in India, volatility in interest rates, changes in government regulations and policies, tax laws, statutes, and other incidental factors.