Matra Kaushal Enterprise Ltd Management Discussions.
Pursuant to PARA B of Schedule V of the SEBI (listing Obligation and Disclosure Requirement) Regulation, 2015, a report on Management Discussion and Analysis Report is given below:
Industry Structure And Developments:
Your Company is engaged in Electrical Industry which is into voltage stabilizers under the brand "UNISTAB" and the products are having its different broad range.
The industry has seen growing trend in requirements in last few years with continued capacity expansions/newer investments in the user industries and the force placed by the Government on the sector and the increasing participation of private sector in electricity generation. The demand for the Companys products continues to improve considerably. The margins however, are low due to rising input costs and intense competition. We are however trying to reduce the impact by improving operational efficiencies. The actual performance may however differ as it is dependent on several factors beyond control of the Company.
Opportunities and Threats
Threats: the change in customer requirements, customer preferences, and the vendor landscape of the overall market.
Segment wise -or product wise performance
The thrust placed on the power sector and the improved demand from the user industries, bodes well for us. The margins may however be lower due to increasing raw material costs and intense competition.
Risks & Concerns
Rising input costs are a matter of concern as it may not be possible to pass them on fully to the customers. The industry is turning highly competitive. Timely availability of inputs is also uncertain.
Internal Control System
The Company has in place an adequate internal control system commensurate with the size of the Company and the nature of business to ensure efficacy of operations and also to ensure that assets are safeguarded against loss and for compliance with applicable legislation. There exists an adequate management reporting system comprising managerial reporting and analysis on various performance indicators, for corrective action as necessary. Further, the Company has review systems of the performance against agreed financial parameters to assess the strengths and areas of improvement at all the place of Work.
Human Resources And Industrial Development
The Company believes that the quality of its employees is the key to its success in the long run and is committed to provide necessary human resource development. Industrial Relations during the year were cordial and the Company is committed to maintain the same in future.
Discussion on financial performance with respect to operational performance
Statements in the Boards Report and the Management Discussion & Analysis describing the Companys objectives, expectations or forecasts may be forward-looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include demand and supply conditions affecting selling prices of finished goods, input availability and prices, changes in government regulations, tax laws, economic developments within the country and other factors such as litigation and industrial relations.
Key Financial Ratios
Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefore, including:
(i) Debtors Turnover -(21.55%)
(ii) Inventory Turnover -NIl
(iii) Interest Coverage Ratio -Nil
(iv) Current Ratio -7:1
(v) Debt Equity Ratio -1:1
(vi) Operating Profit Margin (1%)
(vii) Net Profit Margin (7.3%)
(j) details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof.] -Nil
|By the Order of the Board|
|For Matra Kaushal Enterprise Limited|
|Place: Secunderabad||Ramesh chandraPartani||Suresh Chandra Partani|
|Date: 05.09.2019||Managing Director||Director|
|(DIN: 02260773)||(DIN: 01941799)|