jumbo bag share price Management discussions

Tentative signs in early 2023 that the world economy could achieve a soft landing with inflation coming down and growth steady have receded amid stubbornly high inflation and recent financialsector turmoil. Although inflationhas declined as central banks have raised interest rates and food and energy prices have come down, underlying price pressures are proving sticky, with labour markets tight in a number.

In parallel, the other major forces that shaped the world economy in 2022 seem set to continue into this year, but with changed intensities. Debt levels remain high, limiting the ability of fiscal policy makers to respond to new challenges. Commodity prices that rose sharply following Russias invasion of Ukraine have moderated, but the war continues, and geopolitical tensions are high. Infectious COVID-19 strains caused widespread outbreaks last year, but economies that were hit hard—most notably China—appear to be recovering, easing supply-chain disruptions. Despite the fillips from lower food and energy prices and improved supply-chain functioning, risks are firmly to the downside with the increased uncertainty from the recent financial sector turmoil.

The anemic outlook reflects the tight policy stances needed to bring down inflation,the fallout from the recent deterioration in financial conditions, the ongoing war in Ukraine, and growing geoeconomics fragmentation. Global headline inflation is set to fall from 8.7 percent in 2022 to 7.0 commodity prices, but underlying (core) inflation is likely to decline more slowly. Inflations return to target is unlikely before 2025 in most cases.

Financial sector stress could amplify and contagion could take hold, weakening the real economy through a sharp deterioration in financing conditions and compelling central banks to reconsider their policy paths.

Pockets of sovereign debt distress could, in the context of higher borrowing costs and lower growth, spread and become more systemic. The war in Ukraine could intensify and lead to more food and energy price spikes, pushing inflation up. Core inflation could turn out more persistent than anticipated, requiring even more monetary tightening to tame. In most cases, governments should aim for an overall tight stance while providing targeted support to those struggling most with the cost-of-living crisis.

Measures to address structural factors impeding supply could ameliorate medium-term growth. Steps to strengthen multilateral cooperation are essential to make progress in creating a more resilient world economy, including by bolstering the global financial safety net, mitigating the costs of climate change, and reducing the adverse effects of geoeconomics fragmentation.

Global Trade Slowdown, with Narrowing Balances

Growth in the volume of world trade is expected to decline from 5.1 percent in 2022 to 2.4 percent in 2023, echoing the slowdown in global demand after two years of rapid catch-up growth from the pandemic increases triggered by the war in Ukraine, which caused a widening in oil and other commodity trade balances. Over the medium term, global balances are expected to narrow gradually as commodity prices decline. Creditor and debtor stock positions remained historically elevated in 2022, reflecting the offsetting effects of widening current account balances and the dollars strength, which caused valuation gains in countries with long positions in foreign currency. Over the medium term, elevated positions are expected to moderate only slightly as current account balances narrow.

Downside Risks Dominate

The balance of risks remains tilted to the downside, with the outlook for the global economy depending critically on following key factors:

a. A severe tightening in global financial conditions:

In many countries, the financial sector will remain highly vulnerable to the realized rise in real interest rates in the coming months, both in banks and in nonbank financial institutions. In a severe downside scenario in which risks stemming from bank balance sheet fragilities materialize, bank lending in the United States and other advanced economies could sharply decline, with macroeconomic effects amplified by a number of channels. Household and business confidence would deteriorate, leading to higher household precautionary saving and lower investment. Depressed activity in the most affected economies would spill over to the rest of the world through lower demand for imports and lower commodity prices. As in past episodes of global financial stress, a broad-based outflow of capital from emerging market and developing economies could occur, causing further dollar appreciation, which would worsen vulnerabilities in economies with dollar-denominated external debt. The dollar appreciation would further depress global trade, as many products are invoiced in dollars. In an environment of elevated financial fragility, contagion could

b. Sharper monetary policy impact amid high debt:

The interaction between rising real interest rates and historically elevated corporate and household debt is another source of downside risk, as debt servicing costs rise amid weaker income growth. This can lead to debt overhang, with lower-than-expected investment and consumption, higher unemployment, and widespread bankruptcies, especially in economies with elevated house prices and high levels of household debt issued at floating rates. In such a case, inflation would decline faster and growth would be lower than in the baseline forecast.

c. Stickier inflation:

With labour markets remaining exceptionally tight in many countries, the incipient decline in headline and core inflation could stall before reaching target levels, amid stronger-than-expected wage growth. An even-stronger-than-predicted economic rebound in China could especially if combined with an escalation of the war in Ukraine reverse the expected decline in commodity prices, raise headline inflation, and pass through into core inflation and inflation expectations. Such conditions could prompt central banks in major economies to tighten policies further and keep a restrictive stance for longer, with adverse effects on growth and financial stability.

d. Systemic sovereign debt distress in emerging market and developing economies:

Several emerging market and developing economies still face sovereign credit spreads above 1,000 basis points. The easing in spreads since October, which partly reflects the depreciation of the US dollar and lower import bills from declining commodity prices, has provided some relief. some vulnerabilities are more acute. A higher share of external debt is now issued at variable interest rates and in US dollars, implying greater exposure to monetary tightening in advanced economies. And for low-income countries, comparisons with the situation in the mid-1990s are increasingly relevant. A new wave of debt-restructuring requests could take place, but the creditor landscape has become more complex, making restructuring potentially more difficult than in the past. The share of external debt owed to Paris Club official bilateral creditors fell from 39 percent in 1996 to 12 percent in 2020, and that owed to non Paris Club official bilateral creditors rose from 8 percent to 22 percent; the share of private creditors doubled from 8 percent to 16 percent.

e. Faltering growth in China:

With a substantial share of economies exports absorbed by China, a weaker-than-expected recovery in China would have significant cross-border effects, especially for commodity exporters and tourism-dependent economies. Risks to the outlook include the ongoing weakness in the Chinese real estate market, which could pose a larger-than-expected drag on growth and potentially lead to financial stability risks.

f. Escalation of the war in Ukraine:

An escalation of Russias war in Ukraine now in its second year could trigger a renewed energy crisis in Europe and exacerbate food insecurity in low-income countries. For the winter of 2022 23, a gas crisis was averted, with ample storage at European facilities thanks to higher liquefied natural gas imports, lower gas demand amid high prices, and atypically mild weather. The risks of price spikes, however, remain for next winter. A possible increase in food prices from a failed extension of the Black

Sea Grain Initiative would weigh further on food importers, particularly those that lack fiscal space to cushion the impact on households and businesses. Amid elevated food and fuel prices, social unrest might increase.

g. Fragmentation further hampers multilateral cooperation:

The ongoing retreat from cross-border economic integration began more than a decade ago after the global financial crisis, with notable developments including Brexit and China-US trade tensions. The war in Ukraine has reinforced this trend by raising geopolitical tensions and splitting the world economy into geopolitical blocs. Barriers to trade are steadily increasing. They range from the imposition of export bans on food and fertilizers in response to the commodity price spike following Russias invasion of Ukraine to restrictions on trade in microchips and semiconductors (as in the US Creating Helpful Incentives to Produce Semiconductors and Science Act) and on green investment that are aimed at preventing the transfer of technology and include local-content requirements. Further geoeconomic fragmentation risks not only lower cross-border flows of labour, goods, and capital but also reduced international action on vital global public goods, such as climate change mitigation and pandemic resilience. Some countries may benefit from an associated rearrangement in global production, but the overall impact on economic well-being would likely be negative, with costs particularly high in the short term, as replacing disrupted flows takes time.

Indian Economic Conditions

India to witness GDP growth of 6.0 per cent to 6.8 per cent in 2023-24, depending on the trajectory of economic and political developments globally. The optimistic growth forecasts stem from a number of positives like the rebound of private consumption given a boost to production activity, higher Capital Expenditure (Capex), near-universal vaccination coverage enabling people to spend on contact-based services, such as restaurants, hotels, shopping malls, and cinemas, as well as the return of migant workers to cities to work in in housing market inventory, the strengthening of the construction sites leading to a significant balance sheets of the Corporates, a well-capitalised public sector banks ready to increase the credit supply and the credit growth to the Micro, Small, and Medium Enterprises (MSME) sector to name the major ones. As per Economic Survey 2022-23 which was tabled in Parliament by the Honble Union minister for Finance & Corporate Affairs the expected baseline GDP growth of 6.5 per cent in real terms in FY24. The projection is broadly comparable to the estimates provided by multilateral agencies such as the World Bank, the IMF, and the ADB and by RBI, domestically. which says, growth is expected to be brisk in FY24 as a vigorous credit disbursal, and capital investment cycle is expected to unfold in India with the strengthening of the balance sheets of the corporate and banking sectors. Further support to economic growth will come from the expansion of public digital platforms and path-breaking measures such as the National Logistics Policy, and the Production-Linked Incentive schemes to boost manufacturing output. Despite the three shocks conflictand theof COVID-19, Russian-Ukraine

Central Banks across economies led by Federal Reserve responding with synchronised policy rate hikes to curb inflation, leading to appreciation of US Dollar and the widening of the Current Account Deficits in net importing economies, agencies worldwide continue to project India as the fastest-growing major economy at 6.5-7.0 per cent in FY23.

According to Survey, Indias economic growth in FY23 has been principally led by private consumption and capital formation and they have helped generate employment as seen in the declining urban unemployment rate and in the faster net registration in Employee Provident Fund. Moreover, Worlds second-largest vaccination drive involving more than 2 billion doses also served to lift consumer sentiments that may prolong the rebound in consumption. Still, private capex soon needs to take up the leadership role to put job creation on a fast track. It, however, cautions that the challenge of the depreciating rupee, although better performing than most other currencies, persists with the likelihood of further increases in policy rates by the US Fed. The widening of the CAD may also continue as global commodity prices remain elevated and the growth momentum of the Indian economy remains strong. The loss of export stimulus is further possible as the slowing world growth and trade shrinks the global market size in the second half of the current year.

Therefore, the Global growth has been projected to decline in 2023 and is expected to remain generally subdued in the following years as well. The slowing demand will likely push down global commodity prices and improve Indias CAD in FY24. However, a downside risk to the Current Account Balance stems from a swift recovery driven mainly by domestic demand, and to a lesser extent, by exports. It also adds that the CAD needs to be closely monitored as the growth momentum of the current year spills over into the next. The Survey brings to the fore an interesting fact that in general, global economic shocks in the past were severe but spaced out in time, but this changed in the third decade of this millennium, as at least three shocks have hit the global economy since 2020. It all started with the pandemic-induced contraction of the global output, followed by the Russian-Ukraine conflict leading to a worldwide across economies led by the Federal Reserve responded with synchronised policy rate hikes to curb inflation.

The rate hike by the US Fed drove capital into the US markets causing the US Dollar to appreciate against most currencies. This led to the widening of the Current Account Deficits(CAD) and increased inflationary pressures in net importing economies. The rate hike and inflation also persistent led to a lowering of the global growth forecasts for 2022 and 2023 by the IMF in its October 2022 update of the World Economic Outlook. The frailties of the Chinese economy further contributed to weakening the growth forecasts. Slowing global growth apart from monetary tightening may also lead to a financialcontagion emanating from the advanced economies where the debt of the non-financial sector has risen the most since the global financial crisis. With inflation persisting in the advanced economies and the central banks hinting at further rate hikes, downside risks to the global economic outlook appear elevated.

Indias Economic Resilience and Growth Drivers

Major factors like monetary tightening by the RBI, the widening of the CAD, and the plateauing growth of exports have essentially been the outcome of geopolitical strife in Europe. As these developments posed downside risks to the growth of the Indian economy in FY23, many agencies worldwide have been revising their growth forecast of the Indian economy downwards. These forecasts, including the advance estimates released by the NSO, now broadly lie in the range of 6.5-7.0 percent Despite the downward revision, the growth estimate for FY23 is higher than for almost all major economies and even slightly above the average growth of the Indian economy in the decade leading up to the pandemic.

IMF estimates India to be one of the top two fast-growing significant economies in 2022. Despite strong global headwinds and tighter domestic monetary policy, if India is still expected to grow between 6.5 and

7.0 per cent, and that too without the advantage of a base effect, it is a reflection of Indias underlying economic resilience; of its ability to recoup, renew and re-energise the growth drivers of the economy. Indias economic resilience can be seen in the domestic stimulus to growth seamlessly replacing the external stimuli. The growth of exports may have moderated in the second half of FY23. However, their surge in FY22 and the first half of FY23 induced a shift in the gears of the production processes from mild acceleration to cruise mode. Manufacturing and investment activities consequently gained traction. By the time the growth of exports moderated, the rebound in domestic consumption had sufficiently matured to take forward the growth of Indias economy. Private Consumption as a percentage of GDP stood at 58.4 per cent in Q2 of FY23, the highest among the second quarters of all the years since 2013-14, supported by a rebound in contact-intensive services such as trade, hotel and transport, which registered sequential growth of 16 percent in real terms in Q2 of FY23 compared to the previous quarter.

Although domestic consumption rebounded in many economies, the rebound in India was impressive for its scale. It contributed to a rise in domestic capacity utilisation. Domestic private consumption remains buoyant in November 2022. Moreover, RBIs most recent survey of consumer confidence released in December 2022 pointed to improving sentiment with respect to current and prospective employment and income conditions.

The Survey also points to another recovery and adds that the "release of pent-up demand" was reflected in the housing market too as demand for housing loans picked up. Consequently, housing inventories have declined, prices are firming up, and construction of new dwellings stimulated innumerable backward and forward linkages that the construction sector is known to carry. The universalisation of significantrole in lifting the housing market as, in its vaccination coverage also has absence, the migrant workforce could not have returned to construct new dwellings. Apart from housing, construction activity, in general, has significantly risen in FY23 as the much-enlarged capital budget (Capex) of the central government and its public sector enterprises is rapidly being deployed. Going by the Capex multiplier estimated for the country, the economic output of the country is set to increase by at least four times the amount of Capex. States, in aggregate, are also performing well with their Capex plans. Like the central government, states also have a larger capital budget supported by the centres grant-in-aid for capital works and an interest-free loan repayable over 50 years. Also, a capex thrust in the last two budgets of the Government of India was not an isolated initiative meant only to address the infrastructure gaps in the country. It was part of a strategic package aimed at crowding-in private investment into an economic landscape broadened by the vacation of non-strategic PSEs (disinvestment) and idling public sector assets.

RBI has projected headline inflation at 6.8 per cent in time, it is not high enough to deter private consumption and also not so low as to weaken the inducement to invest.

Packaging and FIBC Industrial Trend

Packing is a critical aspect of the logistics and supply chain industry. Driven by the increase in e-commerce, the growth of the food and beverage industry, and the demand for sustainable and eco-friendly packaging solutions.

In recent years, there has been a growing trend towards the use of Flexible Intermediate Bulk Containers (FIBCs) due to their durability, cost-effectiveness, and eco-friendliness. According to a report by Technavio, the global FIBC market size is expected to reach USD 3.56 billion by 2025, growing at a CAGR of 5% during the forecast period 2021-2025. The report cites the increasing demand for FIBCs in the chemical industry, the rise in construction activities, and the growth of e-commerce as some of the key factors driving the market growth.

Furthermore, a report by Allied Market Research indicates that the demand for FIBCs is expected to increase in developing countries such as India, China, and Brazil, due to the growth of industries such as agriculture, construction, and chemicals. The report estimates that the global FIBC market will reach USD 6.3 billion by 2027, growing at a CAGR of 6.1% from 2020 to 2027.

Looking ahead to 2023, the FIBC trend is expected to continue its growth trajectory. The demand for FIBCs is projected to increase due to their versatility and suitability for various applications. With the demand for FIBCs on the rise, manufacturers are also expected to focus on developing new and innovative products that cater to the specific needs of various industries. The global flexible intermediate bulk container market size reached US$ 5.2 Billion in 2022. Looking forward, the analyst expects the market to reach US$ 7.1 Billion by 2028. Flexible intermediate bulk containers (FIBC), or bulk bags, refer to industrial packaging materials used for storing dry, granular and semi-liquid products. They are large, cubic, bendable containers manufactured using coated or uncoated woven fabric with loops to facilitate convenient storage and movement. U-panel, circular, four-panel and baffle bags are among the most commonly used FIBCs.

These bags are used to contain toxic, non-toxic and free-flowing products, such as chemicals, petrochemicals, pharmaceuticals, rubber and agriculture and food products. As a result, they find extensive applications across various industries, such as transportation, mining, manufacturing, agriculture and waste handling. Rapid industrialization across the globe is one of the key factors driving the growth of the market. Chemical and agriculture product manufacturers are increasingly using FIBCs to handle grains, rice, potatoes, cereals and liquid chemicals. These bags are also used to store and transport construction materials, such as carbon black, steel, alloys, minerals, cement and sand. Furthermore, increasing environmental consciousness among the masses and the rising demand for lightweight, biodegradable and bulk packaging material for pharmaceutical products, is also stimulating the market growth. Pharma-grade FIBC bags are used for storing various medical products and preventing contamination. In line with this, product innovations, such as the development of FIBC variants as hygiene packaging solutions, is acting as another growth-inducing factor. Food-grade FIBC bags are manufactured using virgin polypropylene resins that aid in preventing spoilage of perishable goods and are suited for storing packaged products in bulk quantities.

Looking ahead to 2024, the FIBC market is expected to maintain its growth momentum. The market is projected to grow at a CAGR of approx. 6.5% from 2023 to 2024, driven by factors such as the increase in industrialization, growing demand for food and pharmaceutical products, and the rise in construction activities. With the emergence of new technologies and the demand for sustainable and eco-friendly packaging solutions, the FIBC market is poised for significant growth in the coming years.

Strengths and Opportunities:

The demand for FIBC is growing due to the rising logistics demand due to increase in population, consumptions, increased media penetration through the internet, and growing economy. Moreover, it is one of the strongest growing sectors in the country. Few Key Strengths of the FIBC Bags are:-

• Durability and Cost-effectiveness: FIBCs are known for their durability and cost-effectiveness, making them an attractive option for many industries.

• Versatility: FIBCs can be customized to fit specific needs and applications, making them suitable for a wide range of products, including powders, granules, and liquids.

• Eco-Friendliness: FIBCs are reusable and recyclable, making them a sustainable option for packaging and reducing the environmental impact.

• High Load Capacity: FIBCs can handle high load capacities, making them ideal for transporting and storing large quantities of goods, such as chemicals, minerals, and food products.

• Reduction in Transportation Costs: FIBCs are lightweight and easy to handle, leading to a reduction in transportation costs, as more products can be shipped in a single load.

• Compliance with Industry Regulations: FIBCs are designed to comply with industry regulations, such as those for hazardous materials, ensuring safe and secure transportation of products.

Whereas few of its strengths are

• Growing Demand in Developing Countries: The demand for FIBCs is expected to increase in developing countries due to the growth of industries such as agriculture, construction, and chemicals.

• Rise in E-commerce: The rise in e-commerce is expected to increase the demand for FIBCs as they are ideal for shipping and storing large quantities of products.

• New Technologies and Innovations: Advances in technology and materials are expected to lead to the development of new and innovative FIBC products, providing new opportunities for manufacturers and suppliers.

• Focus on Sustainable Packaging: As the demand for sustainable and eco-friendly packaging solutions increases, FIBCs offer a viable alternative to traditional packaging materials such as plastic and paper.

• Diversification of Product Offerings: Manufacturers can diversify their product offerings by developing new FIBC products that cater tospecificindustries, such as food and beverage, pharmaceuticals, and agriculture.

• Expansion into New Markets: The FIBC industry has the potential to expand into new markets, such as the oil and gas industry, where FIBCs can be used to transport drilling fluids and other materials.

With the above mentioned opportunity and market strength for FIBC Bags and having an experience for more than three decades with a strong supply chain network and reputed customers both in domestic and international market, your Companys vast experience in the industry for more than three decades provides the opportunity to serve its customers in diverse sectors from different geographical regions in accordance to their requirements.

The knowledge gained from vast experience in the industry is been invested in Research and Development activities. Through these activities the Company is developing new range of bags to match the needs of the customers. This gives an edge to the Company over its competitors in the market.

Weakness and Threats:

Due to the ongoing geopolitical tension in Europe over Ukraine war, Cost of crude oil has increased and exchange rates have been too volatile which might have an adverse impact on the Company, Since exports to variouscountrieswillcarrytheriskoffluctuationin currency value which may affect the realization. The following are also the general weakness in the industry:-

• Limited Compatibility: FIBCs may not be compatible with certain products, such as those that require airtight packaging or those that are highly sensitive to moisture.

• Potential for Contamination: FIBCs are reusable, which increases the risk of contamination, and improper cleaning can result in contamination that can affect the quality and safety of the products being transported.

• Limited Visibility: FIBCs can make it difficult to visually inspect the contents, which can be a concern for some industries, such as food and pharmaceuticals.

Whereas few of its market Threats are:

• Price Volatility of Raw Materials: The price of raw materials used to manufacture FIBCs, such as polypropylene, profitability of manufacturers and the price of can be volatile, which can affect the

FIBCs for customers.

• Competition from Alternative Packaging Solutions: FIBCs face competition from alternative packaging solutions such as drums, barrels, and cardboard boxes, which can be more suitable for certain products and applications.

• Increase in Regulations and Standards: The FIBC industry is subject to various regulations and standards that can impact the design and manufacturing process, and changes to these regulations and standards can increase costs and affect product development.

Segment Wise Performance:

Your Company is into the manufacturing of Flexible Intermediate Bulk Bags (FIBC bags) generally used for industrial purposes and also a Del – Credere Associate cum Consignment Stockist (DCA/DOPW) of Indian Oil Corporation Limited (IOCL) for polymer trading for a decade now.

Financial Performance of the Company

The following table gives an overview of the financial results of the Company. (Rs. in Lakhs)

Particulars	Results	Results	Growth %
	2023	2022
Sales and other income	11,144.24	13113.80	(15.02)
Profit before interest, Depreciation, taxes & exceptional items	722.43	983.92	(26.58)
Profit before tax & exceptional items	220.52	518.49	(57.47)
Profit/ (Loss) before tax	188.93	127.49	48.20
Profit/ (Loss) after tax	147.06	106.09	38.62

The revenue of the Company for the financial year 2022-23 has down by year ended 2021-22. The dip in sales is due to global slow down, recession fear and geopolitical tension in Europe.

The profit before tax & exceptional items is down by 57.47% mirroring the increase in the total revenue of the Company and increase in profit after tax of 38.62%.

In the upcoming financial year 2023-24 your company will be looking to strengthen its overseas customer base around the globe and look to replicate its growth though main challenges like recession and global economy continues to be bigger challenges.

Your Company is working on various cost cutting measures and also reaching out to other stakeholders including its customers to deal with challenges together.

Your company is a Del – Credere Associate cum Consignment Stockist (DCA/DOPW) of Indian Oil Corporation Limited for Tamil Nadu, Pondicherry and Kerala since 2009. We are able to achieve constant level of sales throughout the year The trading division has been able to add new customers its order book. Your company managed to increase its trading revenue though there was supply side restriction for almost three months.

The Financial and Operational performance of the Company are on growing trend and details of the same are mentioned in the Financial Statements as well as Board report.

Internal Control System

Your Company has an efficient inbuilt system to monitor the compliance of standards at each stage of the production process. The system enables the management to quickly identify any deviations from the required standards and to take appropriate action for correction. The compliance to the standards is also reviewed by the management at the monthly meetings.

The above system is further audited by the internal auditor appointed by the Board of Directors who gives quarterly reports to the Audit Committee on the level of compliance. The deviations if any are also reported further to which the committee recommends necessary course of action.

The system helps the company to identify the risks at an early stage so that required action is taken for control.

Material developments in Human Resources / Industrial Relations front, including number of people employed.

The FIBC industry is highly labor intensive and attrition rate is also high, hence recruiting right talent, providing quality training and retaining them is the primary focus of the Company. Your Company is equipped with inbuilt infrastructure to provide continuous training to the workers for achieving efficiencyin production.

The implementation of Total Productive Maintenance (TPM) system is one such initiative for maintaining and improving the production, workers safety and quality systems through the machines, equipment, processes, and employees that add business value. The Administration employees are given opportunities to learn and up skill them by inviting trainers to the Company who are specialist in various fields.The employees and workers are provided competitive compensation, growth opportunities and other benefits for their association with the Company for a longer period.

The Company has employed total of 929 as on 31^st March, 2023. There have been no major disputes during the financial year and the Company enjoys cordial relationship with all its employees.

Risks and Concerns

The Company has in place a Risk Management Policy duly approved by the board which is periodically reviewed by the management. The main objective of the companys risk management policy is to ensure the effective identification and reporting of risk exposures, involvement of all departments and employees in risk management, to ensure continuous growth of business and protect all the stakeholders of the Company. Based on the current business environment below are the major risks and its impact identifiedby the Company and the measures taken for mitigation.

Risks	Impact on the Company	Mitigation Strategy
Uncertainty in the business environment.	FIBC is a labour intense industry.	The company is trying to collaborate with various skill development programmes.
Exchange Risks	The Company is into export of FIBC bags to different countries. There is high risk of forex loss due to volatility in currency market caused by ongoing geopolitical tension around Ukraine war.	Company follows a comprehensive Forex Policy for hedging against such volatility in the currency market. Forex Contracts will be executed based on the current market conditions and future outlook.
Supply Chain Disruption	There is also the risk of the supply chain disruption due to geopolitical and various other factors.	Company has engaged multiple entities in the supply chain to ensure that there is no disruption in the network and there is always an alternative. Further, the company is working with multiple suppliers and trying to encourage suppliers from nearby suppliers to avoid non-availability of materials.

Key Financial Ratios

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018) (Amendment)

Regulations, 2018, the Companyisrequiredtogivedetailsofsignificantchanges (change of 25% or more as compared to the immediately previous financial year) in key sector specific financial ratios.

Key financial ratios as per the above mentioned regulation

Financial ratios	FY 2022-23	FY 2021-22
Net Profit Margin	1.32%	0.81%
Return on Net Worth	4.48%	3.35%

The increase in above ratios is due to better profit of realisation and writing off of stock claims last year to the extent of Rs. 31.59 Lakhs.

Future Outlook:

FIBC manufacturing companies are poised for growth in the coming years, with increasing demand from various industries for bulk packaging solutions. Few of the factors that will likely contribute to the future outlook of FIBC manufacturing companies are Increasing Demand for Sustainable Packaging Solutions, Growth in Emerging Markets, Advancements in FIBC Technology, Increasing Regulations and Standards. Your company have a promising future outlook, driven by increasing demand for sustainable packaging solutions, growth in emerging markets, advancements in FIBC technology, adoption of automation and Industry, and increasing regulations and standards. your company can leverage these trends and adapt to changing market conditions will be well-positioned for success in the future.

Cautionary Statement:

Statements contain in this report describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable laws and regulations. The actual results may differ materially from those expressed in this statement because of many factors like economic condition, availability of labour, price conditions, domestic and international market, etc.

	For and on behalf of the Board
Place: Chennai	RENUKA MOHAN RAO
Date : 28.04.2023	Chairman
	DIN: 07542045