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The Board of Directors presents hereunder an analysis of performance of the Company for the year 2017-2018 and its outlook for the future. This outlook is based on current business environment which may vary due to future economic and other developments
Indian Economy is continuing to be one of the fastest growing economies in the world, thanks to the GST and the Demonetization done by the Government.
Indian Paper industry also continues to be the fastest growing market globally as the economy is growing. There are much better times to come in near future.
The industry major challenge is to manufacture better quality of paper at competitive rates. Due to the zero rate import of paper the paper industry has been suffering. So the Government should make proper policies to curb down imports or to impose duty so that there is an equivalency between the price of Indian paper and imported paper.
The competition is increasing due to the fact of the liberalization policy of the Government with respect to imports. If we have to sustain in the market we have to improve our quality and reduce our prices to be more competitive. That will have good overall effect on the market and will be a welcome move for the customers
The demand for paper is growing at an average rate of 7-8 percent per annum. Indian population is growing, has half of its people below 25 years of age and a large number of this young population would be studying in schools and higher educational institutions which inherently consume paper. At the same time state and central government is giving a lot of thrust on the education along with releasing huge funds to achieve targets for educated and skilled youth. So this sector has a huge demand for paper which will increase on yearly basis.
The other major factor is the phenomenal growth of economy that is today pegged at around 7-8 percent per annum, which has consequential demand increasing in paper. So due to these factors for education and economy, there is a good potential for the Indian pulp and paper industry.
Even on the environment side, paper scores high over e-media. Paper is bio degradable, whereas to manage the e-waste has become a big head-ache. Credentials of Paper are very high when compared with e-media.
Government should enable some policy framework to enable the industry with the availability of the raw material at reasonable prices and the industry should also be protected against cheap imports.
Indian Economy is growing very fast. Its ratings in the world have improved.The world is showing keen interest in the Indian Market. So Indian Paper Industry is at an advantageous position to make the most of the opportunity offered by changing economic order.
Your Company is always in search of such opportunities and is in the process of increasing its capacity and quality improvement.
In the near future the Company is in the process of increasing its capacity.
Your company had successfully entered into manufacturing of Poster Paper in the year.
Your Company is also in the process of Commissioning Chlorine- Di-Oxide Plant which will increase the realization of paper and is also good environmentally.
The inherent threats for the paper industry are scarcity of raw-material, high fuel prices, and new challenges thrown at us in the form of increasing imports which will impose on us to look for avenues for greater efficiencies.
There are also challenges with respect to scarcity of water and energy. We have to constantly look into the technology up-gradation so that we should use the water and energy at the optimum levels.
There are threats with respect to the shortfall of the raw material as there is no adequate pulp-wood available in the country to meet the growing needs of the industry. The dependence on recycled fiber is increasing due to inadequate availability of conventional fibre.
Measures of improvement for the paper industry:
1. Strong R& D for improving technology & automation.
2. Energy and Water should be used in a judicious way.
3. Effluent Standards should be improved by adopting green technologies.
4. Social Forestry methods should be used for improving the shortages in raw-material.
5. Specialized training should be imparted to enhance the skills and knowledge of man-power.
Segment wise Performance
During the year the company has achieved the good level of capacity utilization with respect to the manufacture of the paper and it was done due to the expertise of the Managing Director, the technical staff and the hard-work of our labourers.This is a good example of proper utilization of the capacity with minimum resources.
During the year Sales and other income have increased from Rs 93.72 crores to Rs 102.69 crores. Net Profit before tax increased from Rs132.93 Lakhs to Rs 138.81 Lakhs.Production have increased from 25486.48 M.T. To 28234.668 M.T. and further the Company have started production of Poster Paper in the last quarter of the year and have produced 902.509 M.T. of it.
Internal Control System and Their Adequacy
Your Company possesses a good internal control system to ensure that all the assets are safe guarded and protected against the unauthorized use or disposition and that transactions are authorized recorded and reported correctly.
The Audit Committee of the Board of Directors review the internal control system and their adequacy from time to time.
Discussion of Financial Performance with respect to operational performance
The Financial Statements have been prepared in accordance with the requirements of the Companies Act, 2013 and applicable Indian Accounting Standards issued by the Institute of Chartered Accountants of India. The Management of Mohit Paper Mills Limited accepts the integrity and objectivity of these financial statements as well as the various estimates and judgments used therein. The Statement has been made on prudent basis and reflects in a true and fair manner.
|Highlights for the year are as follows.|
|Particulars||Amount (Rs In Lakhs)|
|Sales & Other Income||10269.06|
|Profit before Interest, Depreciation and Tax||784.50|
Human Resources/ Industrial Relations
Human resource is the best resource of all the resources because it is the one which can properly take advantage of the other resources.
It is the Companies belief that Human Resources is the driving force towards progress and success of the company. The Company seek to motivate and retain its professionals by offering reasonable compensation and opportunity to grow in the organization. The total permanent employees strength of the company was 150 as on 31st March, 2018. Industrial relations remain cordial during the year.
Statements in the management discussion and analysis describing the Companies objectives, projections, estimates, expectations may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results may differ from those expressed and implied. Important matters that effects the companys performance is the economic conditions of demand and supply and price conditions in the domestic and overseas market in which the Company operates, changes in the government regulations, tax laws and other statutes and other incidental factors.