Panasonic Carbon India Company Ltd Management Discussions

1. INDUSTRY AND BUSINESS OVERVIEW OPERATIONAL AND FINANCIAL PERFORMANCE:

Our Company sold 2518.17 mln pieces of Carbon Rod, as against 2510.16 mln pieces which is 100.32% Sales of last year.

The Domestic Sales Quantity and Value were 958.97 mln pieces and Rs.14.57 crores respectively which works out to 100.03% of the Sales by quantity and 106.69% by value of last year.

The Export Sales Quantity and value were 1559.20 Mln. Pcs. and Rs.29.33 Crores (FOB basis) respectively in the year under review as compared to last years quantity of 1551.49 Mln. Pcs. and value of Rs.30.24 Crores which works out to 100.50% by quantity and 97.01% by value. Your Company could stabilize the exports to Panasonic Group Battery Factories in Poland, Peru, Thailand, Indonesia, Brazil, Costa Rica, China and other African customers on regular basis. In view of the outbreak of COVID-19 Pandemic, we could not get the orders from outside the Country in the end of March, 2020.

Your Company reduced the impact of the cost increases through Energy and fuel usage reduction and improving overall yield and productivity. By implementing various cost reduction measures, the impact of reduction of price in material and fuel, the profitability compared to previous year increased substantially by Rs. 510.80 lakhs.

2. OUTLOOK ON OPPORTUNITIES AND THREATS, RISKS AND CONCERNS:

The Company has developed skills to In-house design and fabricate special purpose machines/ equipment required for Carbon rod manufacturing. Introducing low cost automations to lift and transfer the materials to reduce operator fatigue, to improve working conditions and to improve productivity.

Your Company is also hopeful of improving its Domestic and Export sales by improving its competitive power compared to Chinese and Indonesia manufacturers by continually putting efforts in developing cost effective new grade carbon rods. Further by manufacturing consistent quality and timely supply, your Company is confident of at least maintaining the domestic and export sales at the current years level in the coming years.

The Directors assure that all steps are being taken by the Company to achieve greater growth in the coming years, in proportion to the growth of the Dry Battery Industry by giving due consideration to the adverse conditions, if any, in the Dry Battery Industry. There are no materially significant threats, risks or concerns to the Company.

3. SEGMENT-WISE PERFORMANCE:

The Company operates in only one Segment (i.e.) Carbon Rod as a component of Dry Cell Batteries. By value, while domestic sales contributed 33% and export sales constituted the remaining 67% out of the total sales.

4. FINANCIAL ARRANGEMENTS AND DEPOSITS:

Your Company continues to be free from debts - both on Long Term and on Working Capital requirements. The surplus funds available with the Company are being invested with Banks in fixed deposits at regular intervals in line with the policy of the Company. This is reflected in increased deposits. Your Company had not accepted any Public Deposits under Chapter V of the Companies Act, 2013 (Act).

Your Company has not accepted any deposits within the meaning of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014

Your Company disclose the following details as per regulation 52 of SEBI (LODR) Regulation, 2015, amended on 7^th May, 2019.

5. INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Directors had laid down internal financial controls to be followed by the Company and such policies and procedures are being adopted by the Company for ensuring the orderly and efficient conduct of its business, including adherence to Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information. The Audit Committee evaluates the internal financial control system periodically. A firm of experienced Chartered Accountants had carried Internal Audit throughout the year. Whenever it is required, the systems and procedures are upgraded.

The details in respect of internal financial control and their adequacy are included in the Management Discussion and Analysis, which is a part of this report.

6. HUMAN RESOURCE DEVELOPMENT:

The relationship with Employees continues to be cordial. The Company always considers its human resources as its most valuable assets. Imparting adequate and specialized training to its employees is an ongoing exercise in the Company.

7. CAUTIONARY STATEMENT:

The cautionary Statement in this Report, more particularly those which relate to Management Discussion and Analysis as explained in the Directors Report, describing the Companys business overview, projections, operational performances , estimates and expectations may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied in the statement depending on the circumstances.