polycon international ltd share price Management discussions

Annexure- IV Overview

The Financial statements have been prepared in compliance with the requirements of the companies Act,2013 and adopted "IND AS" with effect from 1^st April 2017. Accordingly the, financial statements for the year 2022-23 have been prepared in compliance (Indian Accounting Standard) Rules,2015. The estimates and Judgments relating to the financial statements have been made on a prudent and reasonable basis, so that the financial statements reflect in a true and fair manner.

Industry Structure & Development

The Indian Economy is standing on a relatively strong path. Polycon International Ltd. is a manufacturing company offering high quality products and services to its clients. The company has been focusing on satisfying the customers by supplying the quality products well in time. This will bring your company in sync with the requirements of buyers and in turn, will bring great profits and values to its stakeholders.

Opportunity

The company supplies PET containers like bottles, jars Caps, to Industrial Buyers including some multinational companies for packing their products mainly engaged in Confectionery, liquor, pharma hair oil etc. Usage of plastics is increasing in automobiles, consumer packaging and impact of increased infrastructure spending, the plastics industry is expected to continue growth. The Company is also win tender from HPCL for supply of caps.

The State Government is also allowed plastic bottles in Country Liquor. The industry grew annually and expected to continue double-digit growth beyond 2022-23.

Our company is quick in realizing the latest trends and opportunities in the industry and has been in sync with the latest happenings in the market.

Polycon International Limited is continuously working over its capacity and effectiveness to increase its production and aims to provide better quality products to its consumers along with making strong position in domestic market.

Threats

- Cut-throat competition from the new entrants in the market, thereby squeezing the Companys profit margins.

- Price volatility of key raw material and fuel.

- Uncertainty in the economic environment.

- Unavailability of skilled manpower.

- Threat of substitutes.

- Introduction of new technologies.

Outlook

Your company is constantly striving to provide quality products and is looking forward to use improvised technology and innovative methods to increase its sales. Companys endeavor to provide high quality products aiming to grant full value of money to the customer, expected to place in light of its refreshed mission and vision and clear strategic framework. Our Company will seize the opportunities and face the challenges prevailing in the industry and is confident to remain the market leader in the organized plastic industry. There is ample scope and opportunity for companies having business in these sectors not to mention the potential of our company and its large presence in these sectors for many years.

Risks and Concerns

It must be clearly understood that each company has its own risk, from which it cannot be fully isolated but mitigated by means of proper risk management. Our company foresees certain areas of risk, concerns and threats in its arena of operations.

In the normal course of business, the Company is exposed to external risks such as overall demand fluctuation in the market segment in which it operates reduction in relative market share for its products due to the impact of competition as well as internal risks such as limited product range, variation in operational efficiency and cost structure. The company is also exposed the financial risk in the form of interest rate variation. The Company is taking appropriate steps to guard itself against these identified risks.

In order to overcome such situations company is fully devoted in the preparation of appropriate programs, adoption of suitable policies and to take corrective and precautionary measures for safeguarding the companys market position and further to strengthening it.

Adequacy of Internal Control System

Our Company has adequate system of internal controls commensurate with its size and scale of operation, to ensure that all the assets of the Company are safeguarded and protected and that all the transactions are authorized, recorded and reported appropriately. The annual internal audit plan and internal audit reports are also shared with the statutory auditors.

Your company adheres to the following internal control system:-

• Properly conducts Board and general meetings

• Records data discussed during the meeting in proper manner.

• Properly constitutes committees in compliance with the acts, rules and regulations.

• Timely prepares records, reports, minutes and other financial and statutory documents.

It ensures that every employee of the Company is heard, in which decisive and standard reporting structure help the management to reach to all the classes of employees.

Discussion of financial Performance:

Our Companys net turnover for the year ended March 31, 2023 is Rs.2624.70Lacs. The Profit before interest, depreciation and tax is Rs.308.58 lacs. However profit after tax is Rs.6.43lacs.

Your Company is engaged in the manufacturing of plastic containers since 1991 and the income also derived from the sale of these products. Your Company is hopeful of sustaining its performance through calibrated steps. Your directors are confident of the long-term business prospects of the Company.

Human Resource

The Company believes that employees are the most valuable assets of the Company; hence the key focus is to train and develop its employees. The Company aims to create a motivated team and to provide them with unlimited opportunities for career enhancement and growth.

CAUTIONARY STATEMENT

Some statements in this management discussion and analysis describing the Companys objectives, projections, estimate, and expectations may be "forward looking" statement within the meaning of applicable laws and regulations. These Statements are likely to address the companys growth strategy, financial results etc.

Actual results would differ substantially or materially from those expressed or implied. Important factors that could affect the companys operations include domestic and international economic conditions in the industry, significant changes in political and economic environment in India, changes in government regulations, tax regimes, litigation, labour relation and other statutes.