premier polyfilm ltd share price Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT (ANNEXURE TO DIRECTORS REPORT)

COMPANY PROFILE AND INDUSTRY & OUTLOOK

The company is engaged in the manufacture of vinyl flooring, sheeting and artificial leather cloth. The products of the company are used for a variety of industrial and consumer applications. Overall growth rate of the market size is more than 10% to 12% annually. Encouraged by the results the Company has established another factory at its industrial plot at Sikandrabad Industrial Area, Sikandrabad, District Bulandshahr (UP) to manufacture 4500 M.T. per annum of Soft Touch Cushion type of Artificial PVC Leather cloth, PVC Sheetings and Films, Knitted Fabric etc at this unit annually. The units have been in commercial production and barring unforeseen circumstances it is expected that your company well in the current financial year.

The image of the company, built though quality products is the major strength of the company. The company has a significant share of the vinyl flooring, sheeting and artificial leather cloth market and is the quality leader in the vinyl flooring market.

OPPORTUNITIES AND THREATS:

Opportunities:

After relaxation of restrictions/local lock downs due to the second wave of Covid19, demand for products of the company are likely to go up again like last year and hence the performance in the remaining/upcoming period is expected to be better.

In view of the good demand for products of the company, the profits of the company are expected to improve.

Threats and Risk:

Availability of imported finished goods at cheaper rate in the market due to dumping by the foreign companies may adversely affect the profitability of the company.

RISK AND CONCERNS

PVC resin is the most important raw material for the company. Demand for PVC resin in the country has been increasing every year. However, the supply is still not adequate to meet the demand. Further, for certain grade of resin, there are few manufacturers in the country. Hence any disruption in the supply revisn and/or any other raw material may affect the operations of the company adversely.

FINANCIAL PERFORMANCE

Net Turnover for the year was Rs. 25,350/- Lakh which was Rs. 21,388/- Lakh for the previous year. The Cash Profit for the year

ended 31st March, 2023 was Rs. 1,661/- Lakh against Cash Profit of Rs. 1,397/- Lakh for the financial year ended 31st March, 2022.

ABRIDGED AUDITED PROFIT AND LOSS ACCOUNT:

(Rs. in Lakhs)

Particulars	March 31, 2023	March 31,2022
Revenue from Operations	28,790	24,282
Other Income	81	104
Total Income	28,871	24,386
Total Expenditure	27,351	22,998
Profit before Tax (PBT)	1,520	1,388
Share of profit/ (loss) of Associate/Joint Venture	-	-
Tax Expenses	352	410
Profit After Tax (PAT)	1,168	978
Non-Controlling Interests	-	-
Other Comprehensive Income/ (loss)	19	(4)
Adjusted Profit After Tax	1,187	974
EPS (* /share)	-	-
Basic EPS	5.58	4.67
Diluted EPS	5.58	4.67

ABRIDGED AUDITED BALANCE SHEET

(Rs. in Lakhs)

Liabilities	March 31, 2023	March 31, 2022	Assets	March 31, 2023	March 31, 2022
Shareholder Funds	1,059	1,059	Non Current Financial Assets	5,455	4,201
Other equity	6,332	5,250	Non Current Investments	435	396
Total Equity (A)	7,391	6,309	Other Non Current Financial Assets	148	181
Non Current Financial liabilities	1,004	621	Total Non Current Financial Assets	583	577
Provision Non Current	353	312	Deferred Tax Assets (Net)	109	103
Deferred Tax Assets (Net)	82	129	Other Non Current Assets	33	201
Total Non Current Liabilities(B)	1,439	1,062	Total Non current assets (A)	6,180	5,082
Trade Payable	1,881	1,682	Inventories	2,922	3347
Other current asset	2,776	2,754	Total current financial Assets	4,103	3240
Other Current Liabilities	298	271	Other Current asset	580	409
Total Current liabilities (C)	4,955	4,707	Total Current Assets (B)	7,605	6,996
Total equity and liabilities (A)+(B)+(C)	13,785	12,078	Total Assets (A)+(B)	13,785	12,078

EXPORT PERFORMANCE

The Company could Export the products to the tune of Rs. 3,118.54/- Lakh during the current year as against Rs.2,346.77/- Lakh during the previous year.

CAUTIONARY STATEMENT

Statement in the Management Discussion & Analysis Report describing companies objectives, projections, estimates and exceptions may constitute "forward and looking statements written the meaning of applicable law and regulation. Actual results might differ materially from those either expressed or implied.

INTERNAL CONTROL SYSTEM AND ADEQUACY:

The Company has an adequate internal control system commensurate with its size and nature of its business. Management has overall responsibility for the Companys internal control system to safeguard the assets and to ensure reliability of financial records.

The Company has a detailed budgetary control system and the actual performance is reviewed periodically and decision taken accordingly.

Internal audit programme covers all areas of activities and periodical reports are submitted to the Management. Audit Committee reviews all financial statements and ensures adequacy of internal control systems. The Company has a well-defined organization structure, authority levels and internal rules and guidelines for conducting business transactions.

MEDIUM-TERM AND LONG -TERM STRATEGY

The Company has successfully navigated through up-to-date technology over the last few years, pivoting and adopting each time to build relevant new capabilities and helping our clients realize the benefits of that new technology. Our responsiveness, agility and adaptability to change have been core to our longevity in the competitive market.

The company would continue to explore ways and means to lower the operating cost by modernisation of the equipments, developing new and economical formulations for production and adding new range of products. The company is making all the efforts to increase its market shares both in domestic and in export market by exploring new opportunities through trained manpower and spreading network of dealers and distributors.

Significant changes in the key financial ratios along with explanations: (Changes in more than 25% compared to previous year)

S.No	Name of the Ratio	2022-2023	2021-2022	Change in ratio	% of change
1	Debtor turnover ratio	8.89	10.60	-1.71	-16.13
2	Inventory turnover ratio	6.12	4.56	1.56	34.21
3	Interest coverage ratio	6.57	7.87	-1.30	-16.52
4	Current ratio	1.53	1.49	0.04	2.68
5	Debt equity ratio	0.45	0.42	0.03	7.14
6	Operating margin (%)	6.21	6.52	-0.31	-4.75
7	Net profit margin (%)	4.05	4.01	0.04	1.00

Explanations for variances exceeding 25%:

* Inventory Turnover Ratio- Due to increase in cost of goods sold by Rs. 2,641/- Lakh.

HUMAN RESOURCES

The Company appreciate the efforts of its dedicated team of employees. Industrial relations were cordial during the year. The Company accords very high priority to safety in all aspects of its operations. The employees are trained in various aspects of safety. Regular safety audits are conducted to ensure high safety standards.

For Premier Polyfilm Ltd.

Sd/-

Place: New Delhi (Amitaabh Goenka)

Date : 22/05/2023 Managing Director & CEO

DIN: 00061027

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Risk Disclosure on Derivatives

9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
On an average, loss makers registered net trading loss close to Rs. 50,000.
Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

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ATTENTION INVESTORS

Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

Risk Disclosure on Derivatives

9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
On an average, loss makers registered net trading loss close to Rs. 50,000.
Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

We are ISO 27001:2013 Certified.

This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.

premier polyfilm ltd share price Management discussions

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