INDUSTRY STRUCTURE & DEVELOPMENT:
The Indian plastics industry made a promising beginning in 1957 with the production of
polystyrene. Thereafter, significant progress has been made, and the industry
hasgrownanddiversifiedrapidly. The industry spans the country and hosts more than 2,000
exporters. It employs about 4 million people and comprises more than 30,000 processing
units, 85-90% of which are small and medium-sized enterprises.
Indias gross domestic product (GDP) at current prices stood at Rs. 51.23 lakh crore
(US$ 694.93 billion) in the first quarter of FY22, as per the provisional estimates of
gross domestic product for the first quarter of 2021-22. The manufacturing GVA at current
prices was estimated at US$ 77.47 billion in the third quarter of FY22. India has
potential to become a global manufacturing hub and by 2030, it can add more than US$ 500
billion annually to the global economy.
Indias manufacturing exports for FY22 reached an unprecedented US$ 418 billion, an
overall growth of more than 40% compared to the US$ 290 billion from the previous year.
By 2030, Indian middle class is expected to have the second-largest share in global
consumption at 17%.
The manufacturing sector has seen some major developments, investments and support from
the Government in the recent past.
In FY23 (until September 2022), the combined index of eight core industries stood at
142.8 driven by the production of coal, refinery products, fertilizers, steel, electricity
and cement industries. In September 2022, the Manufacturing Purchasing Managers Index
(PMI) in India stood at 55.1 In FY23 (until September 2022), export of top 10 major
commodities (Engineering goods, Petroleum products, Gems and Jewellery, Organic and
Inorganic chemicals, Drugs and Pharmaceuticals, Electronic goods, RMG of all Textiles,
Cotton Yarn/Fabs./Madeups, Rice, Plastic and Linoleum) stood at US$ 187.2 billion.
In October 2022, EPFO added 16.94 lakh net subscribers.
According to Department for Promotion of Industry and Internal Trade (DPIIT), India
received a total foreign direct investment (FDI) inflow of US$ 58.77 billion in FY
2021-22.
In the Union Budget 2022-23, Ministry of Defence has been allocated Rs. 525,166 crore
(US$ 67.66 billion). The government allocated Rs. 2,403 crore (US$ 315 million) for
Promotion of Electronics and IT Hardware Manufacturing.
The PLI for semiconductor manufacturing is set at Rs. 760 billion (US$ 9.71 billion),
with the goal of making India one of the worlds major producers of this crucial
component.
Electronics, vehicle, and solar panel production account for around 80% of total
manufacturing expenditure, with semiconductors/electronics value chain accounting for 50%
of total expenditure in February 2022.
As per the survey conducted by the Federation of Indian Chambers of Commerce and
Industry
(FICCI), capacity utilisation in Indias manufacturing sector stood at 72.0% in the
second quarter of FY22, indicating significant recovery in the sector.
In September 2021, Prime Minister Mr. Narendra Modi approved the production-linked
incentive (PLI) scheme in the textiles sector for man-made fibre (MMF) apparel, MMF
fabrics and 10 segments/ products of technical textiles at an estimated outlay of Rs.
10,683 crore (US$ 1.45 billion). The ‘Operation Green scheme of the Ministry of the
Food Processing Industry, which was limited to onions, potatoes and tomatoes, has been
expanded to 22 perishable products to encourage exports from the agricultural sector. This
will facilitate infrastructure projects for horticulture products.
To propagate Make in India, in July 2021, the Defence Ministry issued a tender of Rs.
50,000 crore (US$ 6.7 billion) for building six conventional submarines under Project-75
India.
Production-linked incentive (PLI) was launched to establish global manufacturing
champions across 13 sectors with an allocation of ~Rs. 1.97 lakh crore (US$ 27.02 billion)
over the next five years
(starting FY22).
Indias display panel market is estimated to grow from ~US$ 7 billion in 2021 to US$ 15
billion in
2025.
The future outlook of the manufacturing sector looks on track with pandemic easing out.
The manufacturing sector of India has the potential to reach US$ 1 trillion by 2025. The
implementation of the Goods and Services Tax (GST) will make India a common market with a
GDP of US$ 2.5 trillion along with a population of 1.32 billion people, which will be a
big draw for investors. With impetus on developing industrial corridors and smart cities,
the Government aims to ensure holistic development of the nation.
RISKS AND CONCERNS:
Since, risks in any organization is the most crucial and the integral matter to be
looked into therefore, your company has taken every possible measures to overcome the risk
whether it is related to internal or external matters. Your Company in order to ensure
certain risk mitigation including internal and external has availed Policies related to
the Fire, Burglary, Vehicle theft, Intellectual Property, etc. All the leased out
properties have been leased out by way of signing a Leave & Licence Agreement.
Necessary Government and Statutory approvals for the operational hereby availed. Policies
in relation to the code of conduct to be followed by the Board of Directors of the
Company, Protection of the Employees against sexual harassment, strict vigilance over the
wrong doing or any misconduct by any of the employees, etc., Pollution control equipment,
fire safety measures, water supply, power supply and its alternatives have been
maintained. External risks are most of the times uncontrollable and unpredictable still
the company has ensured to keep a thorough check on the following matters:
Demand and Supply;
Unhealthy competition;
Government tax policies, schemes and other regulatory norms;
Political factors;
Contentment of the customers;
Climate change;
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
Your Company maintains a vigorous internal control system in terms of the Financials,
Productions, Safety, Hygiene, Human Resource, Inspection, Quality Control Check by
conducting and organizing regular meetings, training in order to provide true, fair,
transparent, reliable and efficient status of the Company. The system focuses on the
applicability and compliances of the Laws from time to time and framing various policies
to be followed by the employees of the company and to ensure to get the optimum
utilization of the available resources with no or minimum wastage so that the investors
get the fair return of their investment.
DEVELOPMENTS IN HUMAN RESOURCES
Human resource is an asset to any industry. We believe that our employees are the key
to the success of our business and hence we have a structured organization plan to take
care of the growth and motivation aspects of our team. Our manpower is a prudent mix of
experienced and young personnel which gives us the dual advantage of stability and growth.
Our work processes and skilled resources together with our strong management team have
enabled us to successfully implement our growth plans. We believe in retaining the
resourceful talent to achieve its goal. Therefore, we provide uniform opportunity to all
the employees, ensures safe and harmless environment free of discrimination and
harassment.
SEGMENT WISE OR PRODUCT WISE PERFORMANCE & DISCUSSION ON FINANCIAL PERFORMANCE WITH
RESPECT TO OPERATIONAL PERFORMANCE :
The company is currently engaged in one line of business through various distributors
and brand name such as Gold Flex, Leno Flex, Tiger, Tiranga, Kisan. The company continued
to grow in the Financial Year 2022-2023 with an increase of 13.34% in revenue from
operations. For detail analysis refer note 18 of the Financial Statements.
Following is the key highlight of the performance of the company:
Particulars |
Current Year |
Previous Year |
Increase/ (Decrease) % |
| Revenue from operation |
5268.55 |
4646.83 |
11.80 |
| EBIT |
298.2 |
374.47 |
(25) |
| PAT |
214.91 |
265.92 |
(24.73) |
Detailsofsignificant in key financial ratios and Return on Net Worth Pursuant to
amendment made in Schedule V to the SEBI Listing Regulations,detailsofsignificantchanges
(i.e. change of 25% or more as compared to the immediately previous financial year) in Key
Financial Ratios and any changes in Return on Net Worth of the Company (on standalone
basis) including explanations therefore are given below or sector specific equivalent
ratios, as applicable:
Particulars |
FY ended March 31, 2023 |
FY ended March 31, 2022 |
Changes between Current FY & Previous FY |
Explanation |
Debtors Turnover Ratio |
141.47 |
72.12 |
92.16% |
Due to significant increases in commodity prices, revenue from
operations increased significantly against average trade receivables |
Inventory Turnover Ratio |
8.52 |
7.31 |
16.56 % |
Increase in production compare to the last FY |
Interest Coverage Ratio |
68.26 |
114.33 |
42.29% |
Decrease in loan |
Current Ratio |
11.28 |
6.17 |
82.82% |
Fund raised in ipo held as current assests |
| Debt Equity Ratio |
NIL |
NIL |
NA |
NA |
Operating Profit Margin (%) |
5.66 |
8.05 |
-29.69% |
Revenue from operations increased but the Operating Profit decreased
due to the IPO issue Expenses |
Net Profit Margin (%) |
4.07 |
5.72 |
-28.85% |
Revenue from operations increased but the EBIT decreased due to the
IPO issue Expenses |
Change in Return on Net Worth |
0.20 % |
1.51 % |
-86.75% |
Due to the IPO issue Expenses |
3. DISCLOSURE OF ACCOUNTING TREATMENT:
Where in the preparation of financial statements, a treatment different
from thatNo such prescribed in an Accounting Standard has been followed, the fact shall be
disclosed treatment
in the financial statements, together with the managements explanation as
to why it followed believes such alternative treatment is more representative of the true
and fair view of the underlying business transaction :
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