msr india ltd share price Management discussions


ANNEXURE-II

Industry Structure and Developments:

Industry Structure and Developments: Your Companys major business activities include Manufacturing of Copper water bottles, vermicelli, Atta and special purpose components for ISRO. The Company has added slew of new clientele for its copper smelting unit. This financial year has been promising in the First two quarters with lot of enquiries coming for our products. Further the company has cleared its all dues to the Banks and Financial Institutions and now the Company can further focus on improving the business of the Company.

Opportunities

The Board is of the view that FMGC sector has tremendous scope and the future outlook seems bright. High inflation and changing government policies are threat to the Company, but the Company is confident that it can absorb such threats. After the down trend of pandemic there is a huge demand for our FMCG products like vermicelli, Atta and pasta. Keeping the demand in mind the company is planning to expand its market out of Telangana & Andhra Pradesh and groundwork for same has already been started.

Threats:

The Raw Material cost increased morethan 100% as compared to previous year and to that extent we cannot increase our selling price.

Transporting costs have also increased due to raise in Fuel costs which are eating into the profits.

Segment wise Or Product wise performance:

During the year under review, the Company has recorded revenue of Rs. 453.99 Lakhs and incurred a loss 1227.81 Lakhs against revenue of Rs1,365.36 Lakhs and made loss of Rs.585.26 Lakhs in the previous financial year 2021-22.

Outlook:

the company wants to focus on copper smelting and FMCG products in the current year to get over the loss created due to the pandemic. Accordingly, Company is investing in marketing to increase the reach of its products and is expecting to double its growth by F.Y 2023-24. The Company is also looking at cutting costs of raw material by renegotiating prices with suppliers.

Risk and Concerns:

The Major concerns at present is the safety issue, maintaining safety of the employees is the top priority of the company. Apart from that the company is also facing a risk of slowdown in the economy.

Internal Control systems and their Adequacy:

The system of internal control has been established to provide reasonable assurance of safeguarding assets and maintenance of proper Accounting Records and its accuracy. The business risks and its control procedures are reviewed frequently. Systems audit is also conducted regularly to review the systems with respect to Security and its Adequacy. Reports are prepared and circulated to Senior Management and action taken to strengthen controls where necessary.

Discuss on financial performance with respect to operational performance:

Prudent Financial Planning, effective resource allocation and tight financial control have ensured that the cash flows of the Company remain healthy. The ability of the Company to raise credit remains unimpaired.

Material developments in Human Resources / Industrial Relations, including number of people employed:

Capability building, Talent Management and Employee Engagement remain the key focus of your companys Human MSR India Limited.

Resource Strategy. Your Company has continued to build on its capabilities in getting the right talent to support the different technology areas. They are backed by robust management training schemes, hiring of key management personnel, and sales training.

Human Resources are the most valuable asset for the Company and MSR India continues to seek, retain and enrich the best available talent. The Human Resource plays an important role in the growth and success of the Organization. Y our Company has maintained cordial and harmonious relations with all the employees.

The Company provides an environment which encourages initiative, innovative thinking and rewards performance. The Company ensures training and development of its personnel through succession planning, job rotation, on-the-job training and various trainings and workshops.

DETAILS OF SIGNIFICANT CHANGES (I.E CHANGES OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) ON KEY FINANCIAL RATIOS ALONG WITH DETAILED EXPLANATIONS THERE FOR:

Ratios:
Particulars 2022-23 2021-22
Debtors Turnover Ratio 4.77 12.14
Stock Turnover Ratio 3.06 5.17
Interest Coverage Ratio 2.95 -0.03
Current Ratio 0.12 0.18
Net Debt / Equity 1.70 -5.33
Net Profit Margin 4.52 -0.13
Return on Net worth 1.51 0.26

DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF

During the year under review, the Return on Net Worth is only 1.51 when compared to the previous year of 0.26.

DISCLOSURE OF ACCOUNTING TREATMENT:

The Company has not carried out any treatment different from that prescribed in Accounting Standards.

Cautionary Statement

Statements in the "Management Discussion and Analysis" describing the companys objectives, estimates, expectations or projections may be "forward looking statements" within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations; include Government regulations, patent laws, tax regimes, economic developments within India and countries in which the Company conducts business, litigation and other allied factors