Page Industries Ltd Management Discussions

ECONOMIC OVERVIEW

The financial year 2023 continued to face the snowballing effects from continued headwinds, most notably the COVID-19 pandemic and its newer variants, geopolitical turmoil with the Russia-Ukraine war entering its second year, energy crises in Europe, among others. All these challenges have manifested in unforeseen ways.. Spurred by pent-up demand, lingering supply disruptions, and commodity price spikes, inflation reached multidecade highs last year in several economies across the globe, leading central banks to tighten aggressively to bring it back toward their targets and keep inflation expectations anchored.

The baseline forecast for global output growth estimated at 3.4 percent in 2022 is likely to fall to 2.8 percent in 2023, before rising to 3.0 percent in 2024. For advanced economies, growth is projected to decline by half in 2023 to 1.3 percent, before rising to 1.4 percent in 2024. About 90 percent of advanced economies are expected to see a decline in growth in 2023. For emerging market and developing economies, economic prospects are on average stronger than advanced economies, but these prospects vary more widely across regions. On an average, growth is expected to be 3.9 percent in 2023 and is likely to rise to 4.2 percent in 2024.

Overview of the World Economic Outlook Projections (%):

	2022	Projections
		2023	2024
World Output	3.4	2.8	3.0
Advanced Economies	2.7	1.3	1.4
Emerging Market and Developing Economies	4.0	3.9	4.2
Emerging and Developing Asia	4.4	5.3	5.1
China	3.0	5.2	4.5
India	6.8	5.9	6.3

The baseline forecast for global headline (consumer price index) inflation is reported to decline from 8.7 percent in 2022 to 7.0 percent in 2023. Disinflation is

expected in all major country groups, with about 76 percent of economies expected to experience lower headline inflation in 2023. Initial differences in the level of inflation between advanced economies and emerging market and developing economies are, however, expected to persist. The projected disinflation reflects declining fuel and nonfuel commodity prices as well as the expected cooling effects of monetary tightening on economic activity. At the same time, inflation excluding that for food and energy is expected to decline globally much more gradually in 2023.

Source: World Economic Outlook, IMF

INDIAN ECONOMIC OVERVIEW

Global developments have posed downside risks to Indias growth and overall macroeconomic stability. The impact was seen in the first half of 2022-23 in the widening of the current account deficit (CAD), uptick in retail inflation, the outflow of portfolio investments, and the appreciation of the US$ against the INR. In the second half of 2022-23, retail inflation fell below the tolerance ceiling, with portfolio investments starting to return, the INR stabilising against the US$, but export growth declining with the slowing of global growth. Despite unfavourable developments and external challenges, the latest IMF World Economic Outlook estimates the Indian economy to be one of the fastest growing major economies in 2022-23.

As per the National Statistical Office, Ministry of Statistics and Programme Implementation, Indias Real GDP and Nominal GDP are projected to grow by 7 per cent (YoY) and 15.9 per cent (YoY), respectively, in 2022-23. On the demand side, private consumption has witnessed continued momentum. It is estimated to grow at 7.3 per cent in 2022-23 compared to 11.2 per cent in 2021-22, reflecting the rebound demand witnessed in the current year on account of the release of pent- up demand for contact-intensive services. Exports are projected to grow at 11.5 per cent in 2022-23 despite sustained supply chain disruptions and an uncertain geopolitical environment. The share of exports in GDP (at 2011-12 prices) also increased to 23.1 per cent in 202223 compared to 22.1 per cent in 2021-22.

On the supply side, agriculture, forestry and fishing continue to lend unwavering support to economic growth and are expected to witness YoY growth of 3.3 per cent in 2022-23. The growth in the agriculture sector is likely to remain buoyant, supported by healthy progress in Rabi sowing. This has led to a recovery in the rural economy. The industry sector is likely to witness modest growth of 3.6 per cent in 2022-23 compared to strong growth of 11.6 per cent in 2021-22, possibly because of input cost-push pressures, supply chain disruptions and China lockdown affecting the availability of essential inputs and slowing global economy. The services sector is expected to rebound with YoY growth of 9.4 per cent in 2022-23 compared to 8.8 per cent in 2021-22, driven by a recovery of the contact-intensive service sector (Trade, hotels, transport, communication and services related to broadcasting).

THE TEXTILE AND APPAREL MARKET - GLOBAL AND INDIAN OUTLOOK

The global apparel market shrunk from US$ 1.6 trillion in 2019 to US$ 1.3 trillion in 2020, reflecting a decline of about 22%. However, in 2021, the market recovered by approximately 16% to reach US$ 1.5 trillion and is expected to reach approximately to US$ 2 trillion in 2025, growing at a CAGR of 4% from 2019.

The Indian domestic textile and apparel market was estimated at US$ 99 bn in 2021-22 and has seen a 30% recovery since 2020-21. The market is expected to grow at 10% CAGR from 2019-20 to reach US$ 190 bn by 2025-26.

Source: Wazir Analysis

INDUSTRY STRUCTURE AND DEVELOPMENT

The Indian textile industry is the second largest producer of MMF Fibre after China. India is the 3rd largest exporter of Textiles & Apparel in the world with Indias textiles and clothing industry being one of the mainstays of the national economy. The share of textile and apparel (T&A) including handicrafts in Indias total merchandise exports stood at a significant 10.5% in 2021-22. India has a share of 4.6% of the global trade in textiles and apparel. USA, EU-27 and UK continue to be the major textile and apparel export destinations for India and account for approximately 50% of Indias textiles and apparel exports. The sector holds importance from an employment standpoint as well and provides direct and indirect employment and source of livelihood for millions of people including a large number of women and rural population.

Source: Ministry of Textiles

Indian Apparel Market

The overall apparel segment size in FY 2020 was estimated to be USD 67 bn. The market is projected to grow at 10 percent and reach USD 107 bn by FY 2025. This growth is expected to be driven by factors such as increased purchasing power driving growth in primary discretionary spend, better access and availability of products, acute brand consciousness, increasing urbanization and increasing digitization.

Men?s Innerwear

Mens innerwear contributed 7 percent to the overall mens wear category in FY 2020 (USD 1.9 bn) and is expected to grow at 10.3 percent to contribute nearly USD 3.1 bn in FY 2025.

Kids Wear

The kids wear market in India stood at USD 14 bn (FY 2020) and is expected to grow at a CAGR of 10.5 percent and grow to nearly USD 23 bn by FY 2025. Uniforms, t-shirts/ shirts, and bottom wear are the three biggest categories contributing 37 percent, 24 percent and 18 percent of the overall kids wear market as on FY 2020. Kids denims segment is showing the fastest growth rate of 13 percent among all the other product categories (FY2020 - FY 2025).

The innerwear industry in India is emerging as one of the fastest growing categories in over the last few decades. Once known for being merely an essential innerwear has transformed as a trendsetter in the apparel industry and is associated with style, comfort, and a fashion statement. The Indian innerwear market currently estimated to account for ~9 percent of the total domestic fashion retail market. The pandemic fuelled work from home and hybrid work culture along with increasing awareness on health, fit, and personal hygiene coupled with the growing millennials are factors leading to the growth of

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The Athleisure category was already growing at a rapid pace even in the pre-Covid times. Today, work from home and hybrid work culture blurred boundaries between casual and athleisure clothing allowing consumers to spend their whole day in a comfortable outfit. This coupled with the growing fitness needs of consumers are contributing to a significant growth of this segment. While the retail fashion industry was severely hit by the pandemic and is slowly making a comeback, reports suggest that there is likely a consumer shift from seasonal fashion to all-year-long comfort wear with athleisure fitting the criteria.

The Indian mens casual and activewear category in FY2020 was estimated at USD 7.7 bn and is expected to grow at a CAGR of 13.9 percent to USD 14.9 bn in FY 2025. Womens casualwear category in FY2020 stood at USD 0.9 bn and is expected to grow at a CAGR of 16.1 percent to USD 1.9 bn in FY 2025.

Boston Consulting Group estimates that despite a 27% drop in size of overall apparel market and will be largely driven by the functional athleisure category.

Swimwear

The Asia-Pacific region, and India and China in particular, is expected to experience a higher growth rate for swimwear than other regions in the next five years. Swimming has gained much popularity in the country both as a sporting event as well as a recreational activity. Increasing expenditure on lifestyle goods, coupled with an upsurge in preference for swimming as a leisure and recreational activity, is driving the growth of the swimwear market. Today, most schools in India recognize swimming as an important life skill and have included the sport as a necessary co-curricular activity. Access to swimming in urban India is witnessing a surge as pools are becoming an integral feature / amenity at most high- rise apartment complexes and gated communities.

In the past, the Company had commissioned the global marketing research firm, AC Nielsen to conduct a comprehensive study on the swimwear category & consumer behaviour of swimmers in India. As per the study, 3% of the urban population classified based on income levels across both gender groups take to swimming twice a week in summer season. The research also shows that 24% of the non-swimmers surveyed, demonstrated likelihood to swim in the future which shows that there is a large potential of non-swimmers who are willing to swim.

Source: Yahoo! Finance, Report Linker

E-commerce

The Indian ecommerce market is estimated to grow by 21.5% reaching USD 74.8 billion in 2022 and is likely to reach USD 350 billion by 2030 with grocery and fashion/ apparel likely to be its key growth drivers.

Indias e-commerce festive season sales clocked in a gross merchandise value of US$ 9.2 billion, an increase of 23% compared 2020.

With the number of internet connections in 2021 significantly increasing to 830 million, internet penetration increased from 4% in 2007 to 45% in 2021.

Online penetration of retail is expected to reach 10.7% by 2024 compared to 4.7% in 2019, while online shoppers in India are expected to reach 220 million by 2025.

According to a report published by IAMAI and Kantar Research, India internet users are expected to reach 900 million by 2025 from ~658 million internet users in 2020, increasing at a CAGR of 45% until 2025.

The online retail market in India is estimated to be 25% of the total organized retail market and is expected to reach 37% by 2030.

OPPORTUNITIES AND THREATS

Opportunities

Economic Shift:

• Growth in organized retail providing a larger opportunity for branded play

• Increase in consumption with factors like education, occupation, urbanization, nuclear families, influence of social media, disposable incomes moving in a positive direction

• Increase in fashion and brand consciousness making consumers more aspirational and discerning

• Increasing urban women population and women corporate workforce

Brand:

• In-house manufacturing and a robust distribution chain allow the brand to ensure adequate supply

• Brand footprint expanding across exclusive retail as well as multi-brand retail creating an excellent base for its growth

• The new / first time consumers acquired by the brand during the pandemic in categories such as athleisure will aid in growth

• The hybrid work culture provides excellent opportunities for categories like work-leisure to expand and grow

Consumer Behaviour:

• The stepping-out of consumers post lock-down promises a resurgence of offline retail in FY22-23.

• The hybrid work culture provides excellent opportunities for categories like work-leisure to expand and grow

Threat

Long Term:

• Several international apparel brands have commenced operations in India realizing that the Indian market is likely to emerge as one of the largest apparel markets in the world in the next few decades

• The emergence of D2C startups in the innerwear and athleisure space in the last few years with aggressive discounting as the key USP to acquire customers

STRATEGIC INITIATIVES

The Companys value system and success revolves around the pillars of Quality, Comfort, Integrity, Simplicity, Transparency, People and Customer delight.

Key strategic initiatives taken to maintain market position and profitability:

• Ramp-up capacity in both manufacturing and sales

• Expanding channel presence in distribution, exclusive brand outlets, large format stores & ecommerce

• Expanding investments and spends in sales and marketing at point of sale along with traditional and digital advertising

• Enhance investments in R&D, product development and innovation, automation, and digital transformation

OUTLOOK

In anticipation of growing demand, the Company is looking at capacity expansion with increased infrastructure and facilities which will allow scalability, ramp-up incremental machinery and manpower to meet the expected growth in demand. The Company has also significantly expanded its presence by opening several Exclusive Brand Outlets (EBOs) along with large format stores (LFS), multi brand outlets (MBOs), thereby ensuring brand availability and accessibility across the country.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company is engaged in the business of manufacturing garments and there is no separate reportable segment.

RISK AND CONCERN

The Companys risk management procedure helps identify and evaluate risks on an ongoing basis. Risks are inherent in business activities and to mitigate these effectively and efficiently, the Company has implemented a SCORE framework: -

• Strategic Risks,

• Compliance Risks,

• Operational Risks,

• Reporting obligations and

• Environment, Health and Safety Risks

The identified risks are integrated into the business plan and a detailed action plan to mitigate these risks and concerns is put in place.

Risk Management Committee:

The Board of Directors have constituted a Risk Management Committee in Compliance with SEBI(LODR) Regulations. Following are the Members of the Committee:

1. Mr. Sunder Genomal;

2. Mr. V S Ganesh;

3. Mr. Shamir Genomal;

4. Mr. Varun Berry;

5. Mr. Chandrasekar K; and

6. Mr. Ravikumar P.

INTERNAL CONTROL SYSTEM AND ADEQUACY

The Company has adequate internal control systems commensurate with the size and nature of its business. The Management is entrusted with the overall responsibility of the Companys internal control systems to safeguard assets and ensure reliability of financial records. The Company has a detailed budgetary control system and actual performance is reviewed periodically to align operating cost with business performance.

The Internal audit program covers all areas of activities with periodical reports submitted to the Management. Internal Auditors submit their quarterly report to the Audit Committee and are invited to the meeting to clarify any issues that may be raised by the Committee members. The Audit Committee reviews all financial statements to ensure adequacy of internal control systems. The Company has a well-defined organization structure, authority levels and internal rules and guidelines for conducting business transactions.

Software solutions including cloud-based applications, SAP, ARIBA, labelling applications such as Nice Label, digital supply-chain solutions like Blue Yonder enable the Company to work with disciplined systems, and adopt best practices that improve efficiency, allow smooth planning, monitoring, and control.

HUMAN RESOURCES / INDUSTRIAL RELATIONS

Page Industries Limiteds Human Resource Development team is committed to empowering employees by providing them with adequate skills, the right resources, and support they need to succeed. The team offers a range of development programs and strives to create a positive and supportive work environment where employees feel valued and respected in addition to making it as a Great Place To Work!

Great Place To Work

PAGE has scaled up significantly over the last few years and inducted some exceptionally talented professionals and leaders. The PAGE Culture & Values are essential to the companys continued success and growth.. "Voice of Pageians" is an important initiative to seek feedback from employees on the work culture to make conscious and sustained efforts in improving them.

To implement this Voice of Pageians initiative, the Company has partnered with Great Place to Work? Institute (GPTW), which allows employees to share their feedback on employee experience and culture through completely anonymous surveys. The survey was rolled out to 3200 staff members, and more than 80% of them participated. The survey has revealed overwhelmingly positive feedback, with employees praising the companys leadership, opportunities, diversity, and inclusion. GPTW presented the feedback to the leadership team, who were grateful for the insights. The feedback will be used to improve the companys workplace culture and make it a better place to work for all employees.

Talent Acquisition

Talent Acquisition has been one of the top priorities for the organisation during the first half of the year. We recruited 651 staff members / new talents during 202223 with a focus on strengthening middle and junior management across verticals to aid business growth. As of 31st March 2023, the Company has had 3181 staff members on the roll.

Performance Management for Staff Members and Variable Pay

To drive a culture of performance, teamwork, and collaboration among the departments in line with the organisations goals, we introduced Variable Pay of 10%- 30% of the CTC in the year 2020. The Assistant Manager to Managing Director has been covered under the Variable Pay program. Employees below Asst Manager have been covered under the Bonus / Ex-Gratia. The Variable Pay Program is distinctive as it rewards people based on the overall company performance without any restriction of lower / upper limit. Through our Talent Management Program & Promotions, we have distinguished rewards & recognitions for company performance with Variable Pay and individual performance through Salary Revisions, Developmental Programs, Career Growth Opportunities within the company.

Job Rotation & Career Growth Policy

Page introduced a Job Rotation Policy to provide cross-functional experience to the staff and promote a conducive learning and growth environment within the Company. Through this policy, we aim at empowering managers and building future leaders by leveraging those who have the potential to perform and shoulder larger responsibilities across verticals. This policy also aims at increasing the career span of staff members and retain talent.

Training and Learning & Development

During the financial year, the Company conducted over 250 training programs through multiple virtual and onsite training sessions across manufacturing, sales and other verticals. We have trained over 25,000 (all employees) employees resulting into four lakh training hours. Our organizations training framework includes induction programs, role-based training interventions and career development programs along with need-based technical interventions. Our self-paced learning platform, PACE online learning platform "Page Academy & Centre of Excellence (PACE)" has steadily gained momentum and penetrated to even the sales associates on the field and stores. More than 10,000 employees / associates have learned and benefitted through the training platform which has over 500 Modules.

L&D interventions include functional, behavioural and leadership development, all of which have a clear effectiveness measure stipulated and evaluated periodically. Interventions around Go-to-market campaigns such as Jockey Knows me, Luxury by Design, Stretch with storm etc. have demonstrated the sales impact. Owing to all the efforts and investment, the customer experience at our stores has increased significantly as evidenced in our mystery audit scores.

Developing a growth mindset, problem -solving capabilities and people management skills have been our primary focus this year. All our senior leaders underwent a development intervention called "Why Should Anyone Be Led by You".PAGEians invested their time in upskilling through CXO Masterclasses, Webinars & Self-learning through PACE, achieving a mammoth 20000+ learning hrs in a single day, which is a record to cherish.

We have also introduced "LinkedIn Learning access with a library of 11,000 courses" to around 800 managerial staff members. The employees now have an option to pick and choose any course relevant to their job and sharpen their skills. This program was highly appreciated and leveraged by more than 87% staff members.

Page has introduced three structured Rewards & Recognition (R&R) programs as it has significant relevance to employee motivation, happiness and engagement and productivity.

REAP program is an all-encompassing initiative with Instant / Monthly, Quarterly and Annual recognition features.

WOW Champions is an instant / monthly recognition program that was launched in June 2022. This is a unique peer-recognition program that enables employees to appreciate their peers for their noteworthy contributions. The program has been a tremendous success with 13000 WOW cards shared by Pageians to their peers in 10 months of the launch. With 20% Pageians getting recognised for their efforts and appreciated by their peers and managers stands testimony to its success and popularity. Over 500 Pageians have been recognized and rewarded as Monthly WOW Champions for their consistent efforts.

The other two recognition programs SAGA (Quarterly) MCM Award (Annual) are underway for the launch.

Jockey LEaD- Assessment & Development Centre

The maiden Jockey LEaD - Assessment & Development Centre was organised in September 2022 for a cohort of 23 Sales Officers and Sr. Sales Officers at Bangalore. The selected 23 employees were consistent top performers for the past 2 years across India. This initiative was conceptualized and executed in-house with an objective of:-

a) Scientifically evaluating potential

b) Identifying strengths and areas of development

c) Planning development journey (Short & Long Term)

The 23 employees experienced and participated in a day-long assessment involving individual and group activities in two parallel batches. They were jointly evaluated on identified Page Competencies by both internal and external evaluators. Post assessment centre, each employee was given a detailed feedback report consisting of his/her performance in each activity along with his/her reporting manager.

The development journey was planned on 3E basis, Experience (70%), Exposure (20%) and Education (10%) with a time frame of 6-12 months.

Employee Engagement

Womens Day Celebrations: At Page Industries, we recognise the contribution of the strong women workforce in our business as well as everyday life. We strive to provide a safe and nurturing work environment to our women workforce who are significant contributors to the companys growth. Currently, 80% of our employees are women.

Quality Day Celebrations: World Quality Day is

celebrated globally every year in November and it is observed across all Units at Page. The main purpose of this initiative is to raise quality awareness and adopt high-quality standards.

Safety Day Celebrations: The National Safety Day/Week is celebrated in India every year on the 4th of March to build safety awareness. PAGEians across all units observe safety day with events and competitive games on the theme for the year, followed by a safety pledge taken by all employees.

Employee Assistance Program (EAP)

Page lays significant emphasis on the mental health and wellbeing of its employees. We have partnered with a leading Employee Assistance Program (EAP) provider in India to offer Psychological Counselling and comprehensive Wellness Solutions to help employees deal with various work-life challenges like stress, anxiety, parenting, relationship issues, work-life balance etc. We have Welfare Officers at the Units One for every 500 employees to provide counselling support to our employees.

Performance Management System for Non-staff members (Operators)

We continue to nurture the existing performance appraisal systems to evaluate thousands of machine operators across all the Manufacturing Units. The efficiency and skill levels are captured regularly through SAP, evaluated every month. Employees are graded and rewarded based on their performance annually.

10 Years? Service Award

Year-on-year, the Company presents a Long Service Award to all employees and staff members who have dedicated 10 years of service to Page Industries. During 2022-23, 226 employees were felicitated for their dedication and long-term service to the company. This has been steadily increasing, which reflects employees loyalty, culture and a great place to build their career.

HR Technology & Software

We have been using an on-premises software solution for Payroll Modules (Time, Attendance & Leave) to our on-roll employees. With an aim to upgrade it with SaaS model which is the need of the hour, and improve accuracy, efficiency and have greater control over the payroll process, PAGE piloted an alternate software solution with 200 employees at different units during 22-23.

HR Technology & Software improvement initiative will be a key focus area for the year 23-24 which will enhance employee experience for our 25,000 associates at the shopfloor.

PAGE has implemented HR Management System (HR Mantra Software) for Employee Lifecycle Management modules like Attendance, Leave Management, Employee Self Service, Payroll, Recruitment, Performance Management, Organization Structure, Employee Communication and Employee Feedback.

Compliance Mantra

We have deployed in place, Compliance Mantra Software, an automated robust compliance monitoring tool, since 2013. The software facilities in ensuring prompt performance and on-time completion of compliance tasks under various statutes, as well as additional tasks, and over and above the statutory requirements. The automation has helped us not only in listing out all applicable statues relevant to our industry, but also in generating / updating instant reports from various factories in different locations, e-database, uniform process, licenses and documents, on a regular basis. The software also facilitates in ensuring clear accountability, adherence with timelines and process workflows, and in enabling generation / updation of reports and compliance trackers. At present, 101 users are effectively using the software tool for carrying out various tasks which has ensured that at least 11,655 compliance tasks / areas are captured annually. Our internal compliance team monitors adherences, collates data and reports periodically, to the leadership team.

Wrap Certifications

For the first time, the following 12 manufacturing units have been certified with WRAP Platinum Certificate by Worldwide Responsible Accredited Production (WRAP).

1) Unit-1, Bommanahalli, Bangalore

2) Unit-4, KC Halli, Bangalore

3) Unit-3, Bommasandra, Bangalore

4) Unit-11, Hennagara, Bangalore

5) Unit-12, Hassan, Karnataka

6) Unit-14, Hosa Road, Bangalore

7) Unit-16, Mysore, Karnataka

8) Unit-17, Gowribidanur

9) Unit-20, Tiptur, Karnataka

10) Unit-21, Hassan, Karnataka

11) Unit-22, Hassan, Karnataka

12) Unit-25, KR Pete, Mysore

WRAP is an independent, objective, non-profit team of global social compliance experts dedicated to promoting safe, lawful, humane, and ethical manufacturing practices around the world through certification and education. Based on ILO conventions and United Nations Universal declaration of Human Rights and American Customs CTPAT program, the WRAP audits on the 12 principles of:

1. Compliance with Laws and Workplace Regulations

2. Prohibition of Forced Labor

3. Prohibition of Child Labor

4. Prohibition of Harassment and Abuse

5. Compensation and Benefits

6. Hours of Work

7. Prohibition of Discrimination

8. Health and Safety

9. Freedom of Association and Collective Bargaining

10. Environment

11. Customs Compliance

12. Security

Unit-28, which was recently inaugurated in Mysore for elastic manufacturing and Unit-19 (Stores) & Unit-15 (Warehouse) will also apply for WRAP during this year!

Employee Retention

With over 90% women employees at the shopfloor, the absenteeism and attrition has been a daunting challenge. Employee longevity has direct relevance to skill level and productivity. It became a high priority focus area and during the year, PAGE took several initiatives to address employee absenteeism and attrition which resulted in increased retention and productivity.

Industrial relations

Industrial Relations remained cordial throughout the year across all our manufacturing units and facilities and the Board records its appreciation for the contribution of all employees towards the growth of the company without which the achievements made, would not have been possible.

As of 31 March 2023, the Company has 23853 employees on roll.

FINANCIAL PERFORMANCE AND ANALYSIS

(Rs in Millions)
Particulars	2022-23	2021-22	Change	%
Revenue from operations (net)	47,886	38,865	9,022	23.21%
Profit before Interest, Depreciation & Tax	8,775	8,064	710	8.81%
Less: Finance Cost	413	322	91	28.22%
Profit before Depreciation and Tax	8,362	7,742	619	8.00%
Less: Depreciation	781	655	126	19.27%
Profit before Tax	7,581	7,088	493	6.96%
Less: Tax	1,869	1,722	146	8.48%
Profit for the year	5,712	5,365	347	6.47%

KEY FINANCIAL RATIOS:

S.No	Particulars	2022-23	2021-22	Change (%)
1	Debtors Turnover Ratio	30.78	25.72	19.67%
2	Inventory Turnover Ratio	1.69	2.23	-24.49%
3	Net Profit Margin (%)	11.93%	13.81%	-13.59%
4	Operating Profit Margin(%)	16.69%	19.07%	-12.44%
5	Return on Net Worth	46.45%	54.37%	-14.57%
6	Debt-Equity ratio	18.10%	-	100%
7	Debt service coverage ratios	177.55	-	100%
8	Current Ratio	1.65	1.67	-1.71%

Explanation on Key Financial Ratios:

Debt-Equity ratio & Debt Service coverage ratio: During the year under review, the Company availed working capital loans, so the ratios significantly changed.

Debtors Turnover ratio enhanced with improved efficiency of collection.

Inventory Turnover ratio decline due to higher inventory levels during the year.

Return on Net Worth: Impacted due to lower PAT

CAUTION:

Statements in the Management Discussion Analysis describing the Companys objectives, projections, estimates and expectations may be considered as "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. The factors that might influence the operations of the Company are economic conditions, government regulation and natural calamities over which the Company has no control. The Company assumes no responsibility in respect of the forward-looking statements herein which may undergo changes in future based on subsequent developments, information or events.