pix transmission ltd Management discussions

a) FORWARD LOOKING STATEMENT:

The report contains forward looking statements, identified by words like plans, will expect, will anticipate, intends, estimates, projects and so on. All statements that address expectations or projections about the future, but not limited to the companys strategy for growth, product development, market position, expenditure and financial results are forward looking statements. They are based on certain assumption and expectation of future events, the company cannot guarantee that these are accurate or will be realized. The companys actual results, performance or achievement could thus differ from those projected in any forward looking statements. The company assumes no responsibility to publicly amend, modify or revise any such statement on the basis of subsequent development, information or events.

b) OVERVIEW OF THE ECONOMY:

India continues to remain the bright spot in the global economy with its stable economic policies buoyed by strong domestic consumption. However, capital investment remains a key metric in order for growth to sustain.

Whilst inflation does seem to have taken a back seat, all eyes are now on Central Banks as to whether the current cycle of rate increases persists. We believe that there would be a halt in the near term as inflation seems to have normalized. This would bode well in terms of liquidity for the market at large.

c) REVIEW OF OPERATION:

Your Company posted its highest ever turnover in FY 2022-23 with a record fourth quarter performance. This was in spite of the global headwinds that plagued most industries and economies throughout the course of the year. After witnessing unbated demand for our products in key export markets in the preceding two financial years, there was some normalization seen in FY 23. However, this slump was picked up by robust demand from the domestic market, which exhibited double digit growth as compared to the previous year.

There was some cooling off in the prices of key raw material as well as freight which eased the pressure on margins, but due to the rate increases imposed by the Central Bank there was an uptick in the borrowing costs of the Company.

d) CORPORATE GOVERNANCE:

Corporate Governance sets forth guidelines for maintaining and sustaining a transparent, information oriented culture wherein authority and responsibilities are co-existent and co-extensive. It also provides guidelines on accountability of various positions within the organization. These values govern not only the Board of Directors, but also the management and the employees of the Company. This Governance protects and balances the interests of all stakeholders thereby enhancing shareholder value.

e) INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

Management has put in place effective Internal Control Systems to provide reasonable assurance for

Safeguarding Assets and their usage.

Maintenance of Proper Accounting Records and

Adequacy and Reliability of the information used for carrying on Business Operations.

Key elements of the Internal Control Systems are as follows:

(I) Existence of Authority Manuals and periodical updating of the same for all Functions.

(ii) Existence of clearly defined organizational structure and authority.

(iii) Existence of corporate policies for Financial Reporting and Accounting.

(v) Existence of Annual Budgets and Long Term Business Plans.

(vi) Existence of Internal Audit System.

(vii) Periodical review of opportunities and risk factors depending on the Global / Domestic Scenario and to undertake measures as may be necessary.

The Company has appointed an Internal Auditor to ensure compliance and effectiveness of the Internal

Control Systems.

The Audit Committee is regularly reviewing the Internal Audit Reports for the auditing carried out in all the key areas of the operations. Additionally the Audit Committee approves all the audit plans and reports for significant issues raised by the Internal and External Auditors. Regular reports on the business development, future plans and projections are given to the Board of Directors. Internal Audit Reports are regularly circulated for perusal of Senior Management for appropriate action as required.

Normal foreseeable risks of the Companys assets are adequately covered by comprehensive insurance.

Risk assessments, inspections and safety audits are carried out periodically.

f) HUMAN RESOURCE DEVELOPMENT AND INDUSTRIAL RELATIONS:

Human Resource Development (HRD) is the framework for helping employees develop their personal and organizational skills, knowledge, and abilities. To enrich the skills of employees and enrich their experience, the Company arranges, Practical Training Courses by Internal and External Faculty. The Industrial Relations encompasses the relationship between the management and workmen. IR plays a significant role in todays working scenario where the harmonious relationship between the employers and employees is needed to have an uninterrupted production. During the year under review company employed 732 workers in all its plants located at different places at Nagpur.

g) CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis and Directors Report describing the Companys strengths, strategies, projections and estimates, are forward-looking statements and progressive within the meaning of applicable laws and regulations. Actual results may vary from those expressed or implied, depending upon economic conditions, Government Policies and other incidental factors. Stakeholders are cautioned not to place undue reliance on the forward looking statements.