meera industries ltd Management discussions

WORLD ECONOMY:

According to the International Monetary Fund (IMF), global economic outlook is uncertain again given the financial sector turmoil, high inflation, geopolitical developments and the COVID pandemic. Geopolitical developments triggered high energy costs in 2022 Also, supply-side disruptions distorted consumer prices. As a result, unreasonable inflation prevailed across the globe - averaging around 9%.

Majority of the global central banks lightened the monetary policy torestore price stability

OUTLOOK:

Rising interest rates and the developments in Eastern Europe will continue to cast a grim shadow on global economic stability. On the positive side however. Ihe reopening of Chinas economy, higher global demand and slowing inflation projected across certain countries in the year ahead have seemingly paved the way for a healthy recovery

According to the World Bank, investment growth in emerging markets and developing economies is likely to remain below its average rate of the past two decades

Smaller nations are particularly vulnerable to such shocks because of their reliance on external trade and financing, limited economic diversification, elevated debt, and susceptibility to natural disasters. In order to mitigate the risks of global recession and debt distress in emerging markets fi developing economies and to support a major increase in investment, well-concerted global and national level efforts are necessary

INDIAN ECONOMY:

India recovered from the pandemic in FY22 and positioned itself to ascend to the pre-pandemic growth path. According to the Economic Survey, the nominal GDP of India was estimated at US$ 3.5 trillion in March 2023.

Indias industrial output as measured by the Index of Industrial Production (IIP), stood at 5.6 per cent on an annual basis in February 2023. according to recent National Statistical Office (NSO) data That marked an improvement of 40 basis points sequentially from growth of 5 2 percent in factory output in January The

rise in industrial production was mainly driven by the manufacturing sector. Given these developments. India with a GDP growth estimated at around 7.2% in FY23 retained its position as the fastest-growing major economy

India is expected to sustain a 6.5 per cent-plus GDP growth in FY24.The economic progress in FY24 will be supported by robust domestic demand and a healthy pick-up in capital formation

OVERVIEW:

The financial statements have been prepared the information required by the Companies Act. 2013 ("the Act*) in the manner so required and give a true and fair view in conformity with the Accounting Standards prescribed under section 133 of the Act read with the Companies (Accounting Standards) Rules. 2006 and as per IND-AS . as at March 31. 2022 and the profit, and its cash flows for the year ended on that date The management of the company accepts responsibility for the integrity and objectivity of these financial statements, as well as for various estimates and judgments used therein. The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, in order that thefinancial statements reflect in a true and fair manner the form and substance of transactions, and reasonably present the companys state of affairs and prof it for the year

THETEXTILE INDUSTRY:

Globally.Textile. Carpets.Threads. and Apparel sector is an important sector making a sizeable contribution to economic progress Being a basic product, its output has grown consistentlyovertheyears.

The Indian textile machine industry is one among the most important industries for the Indian economy considering its contribution to employment generation, industrial output, and foreign exchange earnings India incidentally is one among the largest consumer and exporter of textile machines and clothing in the world.

Meeras ability to stay at the cutting-edge of technology ensures that its sophisticated equipment generates quality output consistently year afteryear.

The Companys customer-centric DNA is reflected in its

ability to offer a comprehensive basket of value-added services (which continues to expand) that ensures optimum utilisation of the machine throughout its useful life

Born out of the Make in India and Atmanirbhar Bharat ideology more than six decades ago the textile machinery division stands out as a global unit that plays a pivotal role in placing India on the global textile map The Company has evolved into one of the very few manufacturers of the entire range of spinning solutions for textile companies globally. This business segment operates on the single phrase customer centricity.This culture has transformed into the DNA of the business. It has positioned MEERA as one of the leading manufacturers of Textile Spinning Machinery globally, with a healthy presence across geographies. The customer-centric business model reflected in the ever expanding basket of value added services.The services basket includes handholding the clients shop floor team post-installation, installed machine monitoring and audit, and providing spares and accessories for maximising machine uptime.

New Product Development

CT-240 Carpet Cabler has undergone improvements in productivity, energy efficiency, yarn quality, and ergonomic design. The latest model is stronger and more widely accepted than its closest global competitor

DTX-300 For UHMWPE Yarns. Ultra-High Molecular Weight Polyethylene (UHMWPE) is used in very sensitive technical textile applications due to its high strength, high wear-resistance, ductility, and biocompatibility. Meeras DTX-300 has been improvised to run more UHMWPE yarns like Dyneema. Armaid. Kevler etc. There are only a handful of suppliers who can twist such yarns with accuracy and excellence, and we are among them. We have already served numerous customers in this sector from the USA. Europe. South America, and other regions.

TPRX-50 - For Bater Twines. MEERAs patented technology called TPRS (Twisting Plying and Reverse Twisting in One Step) which has been successfully used for Muttifilament and staple yarns has now been enhanced to accommodate Tape Yarns such as PP Fibrillated and Polyethylene (PE) Yarns for Baler Twines.

This innovation represents a significant shift in the baler twine industry.The increasing acceptance of this model within the market will be advantageousfor producers as it wilt help lo lower their capital and operational expenses Additionally, it will open up a new market for us

CWX-250 - High Speed Winders with Precision Winding

making them ideal for various textile processes and compatible with a diverse range of yarns.

Winders play a crucial role in textile manufacturing processes. While Meera already offers drum winders, there was a tack of precision winders in our product lineup To address this, we introduced new models such as CWX-250. RWX-250. and CWXX-25Q in FY2023. These models are designed to provide high-speed winding solutions for a variety of Multifilaments. Staple. Tape. UHMWPE Carbon. Glass. Steel Yarns etc.

Winders that are specialized are highly desired machines in our field, and offering these models will significantly enhance the companys sales. This presents an excellent opportunity for the upcoming years..

COMPETITION:

Competition in the domestic as well as international market has intensified and forced the players to adopt aggressive marketing strategy and promotional campaigns to capture and protect their market shares The Company has the plans to penetrate better into global market, especially through the customer retention and business development in the regions which have not been tapped

The Company sells its products through a well- established network in different countries, which are supported by the Companys strong marketing force. The Companys broad product range and frequent visits by its marketing people to the outlets and the importing countries ensure that the Companys products receive a maximum response and are adequately promoted.

OPERATIONS:

• Installed New automatic machines in the workshop to reduce component manufacturing time andincreaseproductivityandquality

• Provided intensive training (classroom and shop floor) tothe team.

Created a team dedicated to work with key suppliers on aligning their processes and products to Meeras requirement

• Streamlined the supply of components to assembly lines for faster and accurate assembly operations, updated and provided in-detail Standard Operating Procedures (SOP) to the assembly operators for error-free mechanics

Renovated certain important mother equipment with the latest technology and automation 5olutionsforimproving product quality and productivity

• Automated the part screening process to check components on parameters critical to quality and customer requirement: data captured provides

traceability of each component to Its batch and operator

R&D:

R&D stands as a cornerstone of MEERA Industries, driving continuous innovation throughouttheyear Our dedicated efforts cater to customized customer requirements, reducing costs, enhancing efficiency, and improving ergonomics Here are a few key highlights.

Diverse Expertise. Meera Industries has a multidisciplinary R&D team covering design, mechanics. 3D tech, electronics, and more.

• Cross-Disciplinary Innovation Their varied expertise enables innovative solutions that blend different fields.

Efficient Product Development: Proficiency in design, mechanics and 3D tech allows swift product ideation and prototyping

• Electronics Proficiency Competence in electronics ensures advanced, technology-driven solutions

Problem Solving: Their adaptable team excels at critical thinking and creative problem-solving, staying ahead in innovation

CUSTOMER SERVICE:

Intensified the provision of audit service to existing clients to facilitate maximising of machine uptime: kept a close watch on timely preventive maintenance

through a dedicated team.

COMPANY OVERVIEW:

Our Company was originally incorporated as Meera Industries Private Limited on July 05. 2006. Our Company is a growing textile machine manufacturer dealing in twisting, cabling, winding, and heat setting machines We design, develop and sell high- performance machines lo various processing and manufacturing units in the textile industry The huge repository of knowledge and technology base that our Company has developed since inception is a strong base to outperform the competition and be abreast in the market This supports our Company to constantly upgrade the technologies lo meet present and futuristic requi rements of ourcustomers We ensure the quality of our products through rigorous testing including testing of sub system before integration and followed by testing of the entire system when assembled. We provide a combination of designing, manufacturing, testing facilities and aftersales support that provides customer delight to the equipment offered by us.

The Companys continued focus on Machine division is expected to continue to drive its performance and the company remain committed to maintaining high operating standards

Key Highlights of the Companys Standalone and consolidated performs nee for the year are as under

Performance of your company for FY 2022 23 is summarized as under.

	Standalone Results					Consolidated Results
	2022-23			2021-22		2022-23	2021-22
Income from Operations	1871.93			3176.89		2033.76	3166.29
Other income	27.39			22.75		27.39	22.75
Total Income	1899.32			3199.64		2061.15	3189.04
Less: Total Expenditure before Int.,Depreciation & Tax	1978.90			2714.99		2079.12	2698.58
Profit/(Loss) before Int., Depreciation & Tax	-79.58			484.65		-17.97	490.46
Less : Interest	9.98			11.51		10.39	11.51
Profit/(Loss) before Depreciation & Tax	-89.56			473.14		-28.36	478.95
Less: Depreciation	108.67			101.26		109.19	101.74
Profit/(Loss) before Exceptional and extraordinary items and Tax	-198.23			371.88		-137.55	377.21
Less : exceptional items	13.44			19.72		0	0
Profit/(Loss) before Tax	-184.79			391.60		-137.55	377.21
Less: Current Tax		-	94.55		-		94.55
: Deferred Tax		-0.31	15.59		-0.31		15.59
: Prior period items		4.20	-0.62		4.20		-0.62
Profit/(Loss) after Tax		-180.28	280.84		-133.04		266.45
Add: Surplus/Deficit B/F. from Pre. Year		808.26	655.57		813.03		674.73
Less: Amount Transferred From Sundries (Others)		0	0		0		0
Less: Interim Dividend		0	128.15		0		128.15
Less: Provision for Final Dividend		0	0		0		0
Less: Dividend Distri. Tax		0	0		0		0
Balance Carried to B/s.		627.98	808.26		679.99		813.03

STATE OF COMPANYS PERFORMANCE (STANDALONE):

During the year under review.

• The revenue of the company of Rs. 1899.32 Lakhs as compared to Rs. 3199.66 Lakhs in the previous year.

• The net loss after Tax to Rs -180.28 Lakhs as compared to profit of Rs. 280.86 Lakhs in the previous year.

STATE OF COMPANYS PERFORMANCE (CONSOLIDATED):

The consolidated total revenue of your Company for FY 2022 23;

• The revenue of the company to Rs. 2061.15 Lakhs as compared to Rs 3189.06 Lakhs in the previousyear.

• The net loss afterTaxtoRs -133.04 as compared toRs.266 45 in the previous year

MOVEMENTIN KEY RATIOS

0 n accou n t of decrease in turn over by 36% in FY 2022-23. the net profit margin ratio has been decreased from 8.84 % in FY 2021-22 to (6.75%) in FY 2022-23. The return on capitalemployed also decreased from 14.84% in FY2021- 22 to (4 90%) in FY 2022-23 Return on equity decreased from 10.21% in FY2021-22 to (5.54%) in FY22-23, debtors* turnover has been increased from 97.48 in FY 2021-22 to 156.31 in FY 2022-23 the inventory turn ratio has also decreased from 1 79 in FY 2021-22 to 1.21 in FY 2022-23. Current ratio decreased from 2.08 in FY 2021-22 to 1.68 times in FY 2022-23 on account of increase in operations

INITIATIVES BYTHE COMPANY:

MEERA has taken the following Marketng initiatives to attainitsgrowth targets

Market Expansion:

Established local marketing base in Barcelona. Spain, targeting the European Union market

Cost Reduction:

Conducting cost reduction exercises across various fields.

Product Development:

Adding versatility to existing products to expand market opportunities, Introduced precision winder segments to tap into a previously untapped market.

Internet Marketing:

Increased internet-based marketing activities. Enhanced customer interaction tools for improved engagement and conversions.

Modernization of Manufacturing Processes:

Prioritizing modernization to enhance product quality and reduce costs. Expect sustainable improvements in productivity and profitability Customer Engagement:

Actively engaging with customers lo capitalize on modernization project opportunities.

Regular participation in international machine exhibitions tostrengrhen connections

Product Awareness and Revenue Generation:

Focusing on raising awareness about new products in the preparatory segment Increasing spare parts sates and generating knowledge-based revenue through customer-centric initiatives

RISKMANAGEMENT:

The Company has adopted a comprehensive and integrated risk appraisal, mitigation and management

process The risk mitigation measures of the Company are placed before the Board periodically for review and improvement.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has a benefit of Internal Control Systems developed over years which ensured that alt transactions are satisfactorily recorded and reported and all assets are protected against loss from an unauthorized use or otherwise The nternal control system is adequate and commensurate with the nature of its business and size of its operations, though continues efforts are being made to strengthen the same. The management also reviews the internal control systems and procedures to ensure its application

MATERIAL DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

The Company enjoys the support of a committed and well satisfied human capital. Compensation packages offered by the Company, best-of class methods in recruitment, training, motivation, and performance appraisal, attract and retain the best talents. These practices enable the Company to keep the attrition rate well below the industry average The Company had 150 permanent employees as on 31st March 2023.

The number of employees engaged during the year was in line with operational requirement of the Company.The relation with labour was cordial during the year.

CAUTIONARYNOTICE (DISCLAIMER):

The statements in the "Management Discussion and Analysis Report" section describes the Companys objectives, projections, estimates, expectations and predictions, which maybe "forward looking statements" within the meaning of the applicable laws and regulations The annual results can differ materially from those expressed or implied, depending upon the economic and climatic conditions. Government policies andotherincidentalfactors

For and on behalf of Board of Directors of.

Meera Industries Limited

Place: Sachin, Surat Date :14/08/2023

Dharmesh V. Desai

Chairman and Managing Director DIN: 00292319