MSR India Ltd Management Discussions.

1. Industry Structure, Development and Outlook:

Your Companys major business activities include Manufacturing of Copper water bottles, vermicelli, Atta and special purpose components for ISRO. The Company has started its new plant at Chetlapotharam with new machinery imported from china, the company production capacity has increased to 2.00 lac bottles per month. The Company has also set up Copper smelting unit in this new facility, the company produces various thickness of Copper rods from this unit based on the requirement by clients. The Company has listed itself in Central Police canteen this year for selling Copper water bottles, the Company has acquired orders for its copper rods from some prestigious companys as follows:

1. Hyderabad Batteries Limited

2. G R Power Switch Gears Ltd

3. Toshiba Transmissions Ltd

The future is looking very bright for the company as the copper wastage from manufacturing of copper water bottles can be reused with the help of in-house smelting unit, this brings down the wastage and helps the company increase its profit margin. The Companys new business of manufacturing copper rods is also gaining momentum and is expected to play a major role in the companys growth.

b) Opportunities

• Untapped Market

• Growing Health Conscious

• Huge demand for Copper Rods Threats

• Logistic costs

• Economic Slowdown

• Less Margins in Copper rods Manufacturing

c) Business performance and Segment Reporting:

During the year under review, the Company has recorded revenue of Rs.19138.72 Lakhs and made a net profit of Rs.49.87 Lakhs against revenue of र 14,003.63 Lakhs and net profit of र 177.00 Lakhs in the previous financial year 2017-18.

The following segment wise turnover in percentage wise during the financial year:

DR. Copper 21.10%
FMCG 77.07%
DRDO 0.20%
Copper Melting 1.63%

d. ) Business Outlook:

The Company is planning to increase the production capacity of Dr. Copper water bottles by 50% this year to meet the raising demand. The Company plans to diversify its copper manufacturing segment into various copper products which can be used at industrial and residential level.

e. ) Risks and Concerns:

The Company used to depend on trading activities for major chunk of revenue, the company however has decided to stop all its trading activities as the margins are narrow which are leading to losses, The Company from now on will purely depend on manufacturing sector for its survival. The company has already ramped up its production and has entered into manufacturing copper rods, which have huge demand, this segment is expected to subdue the revenue loss created due to stopping of trading activities.

f) Internal Control System and its 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.

g) Human resources and Industrial relations:

The company always have good HR practices in place to take care of the wellbeing of its employees, the Company has even arranged transport facility for its employees at free of cost. The Company leaves no opportunity to encourage employees, the Company also give away award and monetary benefits to its best performer every month, thereby motivating the employees. Employees are given opportunity to pitch their ideas to the management for developing the company, the company conducts meeting once a week in this regard.

a) Details of significant changes (i.e., change of 25% or more as compared to the immediately previous financial year) in the key financial ratios, along with detailed explanations thereof, including: nil

Debtors turnover 11.92%
Inventory turnover. 14.77%
Interest coverage ratio. 1.36%
Current ratio 1.26%
Debt equity ratio 1.19%
Operating profit margin (%) 0.60%

 

Net profit margin (%) or, sector-specific equivalent ratios, as applicable] 0.37%

 

For and on behalf of the Board of
MSR India Limited
Sd/-
Abhilash Tumula
Place: Hyderabad Whole Time Director
Date: 12.08.2019 (DIN: 06725012)