Premier Polyfilm 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