Today's Top Gainer
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[Schedule V - Regulation 34(3) of SEBI (LODR) Regulations, 2015]
Management Discussion and Analysis mainly comprises of the statements which, inter-alia, involve predictions based on perceptions and may therefore, be prone to risks and uncertainties. It is the sum total of the Companys expectations, beliefs, estimates and projections which may be forward looking within the meaning of applicable laws and regulations.
The actual results could differ materially from those expressed herein specifically or impliedly.
a) Industry structure and developments
The corrugated packaging industry consists of about 300-400 automatic plants with substantial investment and thousands of smaller semi- automatic unit catering to various types of industry. Packaging is used to cover or wrap a product to preserve its quality and extend the shelf life of its contents by reducing the risk of contamination.
Packaging plays a very significant role in transportation, warehousing, logistics, and sales of products. Apart from providing convenience to customers, packaging also plays a major role in attracting customers to purchase the product. It also controls the size and quantity of the content.
b) Opportunities & Threats
The packaging industry is going through the most substantial transformation in many years. Companies have realized that packaging needs to add value to the product in order to stand out among competition.
A recent study shows that consumer are more inclined toward purchasing products online, which is increasing the demand for packaging to protect goods from shock, vibration, and other damaging effects of shipping and handling.
Increasing e-commerce sector is one of the main drivers and supports gains for packaging products.
The key challenges that the packaging industry is facing today include lack of regulatory clarity in packaging, insufficient consumer awareness of sustainable packaging and uncertainty about green packaging materials. Whereas, the main challenges faced by packaging machine industry are: lack of sources of credit, high cost of packaging materials, lack of skilled labour and irregular power supply.
The shortage faced by paper mills in getting their raw material of wood pulp and corrugated box wastes, and the increase in price of those materials are leading to rise in prices of corrugated boxes.
c) Segment-wise performance
The Company is a single product Company and hence, segment-wise or product-wise performance is not provided.
Your company was able to meet the performance requirement in the Current Financial year as compared to previous financial year. Our priorities have always revolved around service to our customers and maintaining the quality of our end product. We continue to work towards making these strategies our priority. Moreover highly favorable demographic patterns in India such as increasing working age population, growing disposable income, growth in middle class, ongoing urbanization and changing lifestyles etc will further drive the growth of packaging industry in India.
e) Risks & Concerns
The Companys Board of Directors has overall responsibility for the establishment and oversight of the Company risk management framework. The Company has framed a Risk Management Policy to identify and access the key business risk areas and a risk mitigation process. The policy aims to ensure resilience for sustainable growth and sound corporate governance by having an identified process of risk identification and management in compliance with the provisions of the Companies Act, 2013
The corrugated box industry is highly fragmented and has poor bargaining power on both sides of the supply chain i.e. with its vendors and customers.
f) Internal control systems and their adequacy
The Company has appointed M/s Sapra Sharma & Associates, LLP (Chartered Accountants), an outside agency as its Internal Auditors, who conduct internal audit for various activities. The Company has developed adequate internal control system commensurate to its size and business. The reports of Internal Auditors are submitted to the Audit Committee which further reviews the adequacy of Internal Control System.
g) Financial performance with respect to operating performance
The business performance of the Company has improved in terms of reduction in cost and effective utilization of available resources of the Company. Your Directors are expecting for more improvement in the performance of the Company in the next financial year.
The summarized financial results are given hereunder:-
|(Rs. in Lakhs)|
|Revenue from Operations||8,184.67||7,843.13|
|Profit before tax||386.33||291.32|
|a) Current Tax (including Prior Period Tax Adjustment and net of MAT Credit Entitlement)||(135.39)||(104.81)|
|b) Deferred Tax||5.99||(1.91)|
|Profit for the period||256.93||184.60|
h) Material developments in Human Resources / Industrial Relations front, including number of people employed
The Company attaches importance to the dignity of employee irrespective of position and highly values the cultural diversities of employees. Human Resource is valued as an extremely important and strategic resource and your Company believes in employee empowerment across the entire organization in order to achieve organizational effectiveness.
i) Overview of the companys performance
The Companys performance has shown considerable improvement over the previous year with growth in revenues and profit. The Managements focus is on improving the sales as well as operational efficiencies to boost the profitability of the Company.
j) Cautionary Statement
Estimates and expectations stated in this Management Discussion and Analysis may be "forward-looking statement" 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 your Companys operations include economic conditions affecting demand / supply and price conditions in the domestic and international markets, changes in the Government regulations, tax laws, other statutes and other incidental factors.
|for and behalf of the Board|
|Dated :May 26, 2018||Rajendra Kumar Rajgarhia|
|Place : New Delhi||Chairman|