Kiran Print Pack Ltd Management Discussions

Overall Review

The world economy continues to face challenges on the road to sustained recovery. Advanced Economies that seemed towards the fag-end of the year and this uncertainty is clouding the prospects for global growth during 2025. The growth momentum was impacted as the protracted debt crisis in the euro area.

The economic crisis and its ramifications have accelerated the shift of economic power from the developed to the emerging nations and exposed a fragile world with limited capacity to respond to systemic risks.

Operating Environment:

Global economic growth remained healthy at 3.3% in CY24 consistent with the prior year. Global inflation eased to 5.7% in CY24 from 6.7% in CY23, supported by the stabilisation of supply chains post-COVID and a moderation in commodity prices. This enabled major central banks to ease monetary policy, lowering benchmark rates by 50 to 100 bps in CY24

Business Outlook

The print industry has been plunged into a perfect storm. COVID-19 has propelled digital transformation and shifted its paradigm to “web-to-print”, implying that industry players can no longer wait. As we know, every crisis comes with opportunities. The challenge of operating during the lockdown has affected the hierarchy of operations. While some of the restrictions may recede over time, others could have a long-lasting impact. Advanced print technology has a far-fetched future, embracing innovative media and communication waves that go beyond imagination. Though print is not much in use, the industry is all set to expand due to privacy issues and oversaturation that digital platforms experience. The consensus reveals that significant changes are ahead. The Company is adapting to innovative ways and adopting digital printing technology for customization.

The retail industry has seen significant growth driven by the internet and e-commerce. Businesses now reach global customers quickly, facilitating cross-border transactions through their portals, websites and social media presence. Smartphones and online shopping convenience have spurred growth, with numerous options and competitive pricing driving demand for retail e-commerce. Therefore, the company is also exploring new ideas for entering into e-commerce.

Impact of Ukraine War

The Ukraine war has further complicated the situation for our printing business. The conflict has disrupted global supply chains, leading to shortages of essential materials and increased costs. Additionally, the war has resulted in economic instability, affecting consumer and business spending on printed materials. Some of the specific challenges faced by businesses in Ukraine include:

- Operational Uncertainty: SMEs are operating in an environment of strategic and tactical uncertainty, focusing on conserving resources and cutting costs.

- Supply Chain Disruptions: Disruptions to global supply chains have affected the availability of raw materials and increased costs.

- Economic Instability: Economic instability has reduced consumer and business spending on printed materials.

Opportunities and Threats:

Company is continuously looking for opportunities of growth in new areas and ventured into some revenue generating services that can boost financial health of the company. As regards threat, various economic factors may pose threats to the business of the Company.

Segment-wise/Product-wise Performance:

Your Company has only one reporting segment. The revenue for the year was 9021.89 (Rs. in thousands).

Outlook:

During the year under review, the company has carried out business operations and the directors are hopeful of exploring more and more business avenues in the coming days.

Risk and Concern:

Economic downturn in recent month, which could pose a risk, should it not be tamed quickly. The entry permit regime for trade within country should end immediately. The Government should continue its initiative of Ease of Doing Business. During the year your Company under its well planned and defined risk management policy gave attention to all the risk areas. The Board of Directors is apprised of the development in risk management in periodical meetings where the quarterly results are approved.

Internal Control System:

Your Company has a planned internal control system through internal checks and reviews it periodically to strengthen it and safeguard Companys assets. Management Information System is given upmost importance.

Financial Performance w.r.t. Operational Performance:

During the year under review, the revenue from operations of your Company was 9021.89 in comparison to 8734.62 during the previous year. The Company has Profit After Tax of 596.50 in comparison to 331.91 during the previous year.

Safety, Health and Environment:

Your Company as a matter of policy gives greater importance to safety, health and environment and also ensures compliance with applicable legislative requirements.

Human Resources:

Your Company recognizes the importance of Human Resource in achieving its objectives and strategies as human resource plays an important role in the success and growth of Company. Your company gives priority in honing and utilizing their skills through in house training programs.

Key Financial Ratios:

In accordance with the Securities and Exchange Board of India (Listing Obligations and disclosures Requirements) Regulations 2018 (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in Key sector-specific financial ratios.

Cautionary Statement:

The report contains forward looking statements describing expectations, estimates, plans or words with similar meaning. Your Companys actual result may differ from those projected depending on various factor. Your Company cannot guarantee that the assumptions and estimates in the forward-looking statements are accurate or will be realized.