Premier Polyfilm Ltd Management Discussions

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% annually. Encouraged by the results the Company has established another factory at its industrial plot at Sikandrabad Industrial Area, Sikandrabad, District Bulandshahar (UP) to manufacture 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 commencement of commercial production at Unit II of the company, demand for products of the company have gone up and are likely to go up further during the current financial year and hence the profitability of the company is expected to improve.

Threats and Risk:

Availability of imported finishedgoods 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 of resin and/or any other raw material may affect the operations of the company adversely.

FINANCIAL PERFORMANCE

Net Turnover for the year was Rs. 29,563/- Lakh which was Rs. 28,790/- Lakh for the previous year. The Cash Profit for the year ended 31st March, 2024 was Rs. 2,576/- Lakh against Cash Profit of Rs. 1,661/- Lakh for the financialyear ended 31st March, 2023.

ABRIDGED AUDITED PROFIT AND LOSS ACCOUNT:

Particulars	March 31, 2024	March 31,2023
Revenue from Operations	29,563	28,790
Other Income	165	81
Total Income	29,728	28,871
Total Expenditure	27,001	27,351
Profit before Tax (PBT)	2,727	1,520
Share of profit/ (loss) of Associate/Joint Venture	-	-
Tax Expenses	667	352
Profit After Tax (PAT)	2,060	1,168
Non-Controlling Interests	-	-
Other Comprehensive Income/ (loss)	96	19
Adjusted Profit After Tax	2,156	1,187
EPS (* /share)	-	-
Basic EPS	9.83	5.58
Diluted EPS	9.83	5.58

ABRIDGED AUDITED BALANCE SHEET

Liabilities	March	March	Assets	March	March
	31, 2024	31, 2023		31, 2024	31, 2023
Shareholder Funds	1,059	1,059	Non Current Financial Assets	5,201	5,455
Other equity	8,384	6,332	Non Current Investments	871	435
Total Equity (A)	9,443	7,391	Other Non Current Financial Assets	226	148
Non Current Financial liabilities	599	1,004	Total Non Current Financial Assets	1,097	583
Provision Non Current	404	353	Deferred Tax Assets (Net)	121	109
Deferred Tax Assets (Net)	102	82	Other Non Current Assets	31	33
Total Non Current Liabilities(B)	1,105	1,439	Total Non current assets (A)	6,450	6,180
Trade Payable	1,040	1,881	Inventories	2,024	2,922
Other current asset	1,368	2,776	Total current financialAssets	4,314	4,103
Other Current Liabilities	357	298	Other Current asset	525	580
Total Current liabilities (C)	2,765	4,955	Total Current Assets (B)	6,863	7,605
Total equity and liabilities	13,785	12,078	Total Assets (A)+(B)	13,785	12,078
(A)+(B)+(C)	13,313	13,785	Total Liabilities(A)+(B)	13,313	13,785

EXPORT PERFORMANCE

The Company has Exported its products to the tune of Rs.3957.76/- Lakh during the current year as against Rs. 3,118.54/- 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 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 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

(Figures Rupees in Lakh)

S.No	Name of the Ratio	2023-2024	2022-2023	Change in ratio	% of change
1	Debtor turnover ratio	8.38	8.89	-0.51	-5.78
2	Inventory turnover ratio	8.42	6.12	2.29	37.45
3	Interest coverage ratio	14.37	6.57	7.80	118.68
4	Current ratio	2.46	1.53	0.95	62.18
5	Debt equity ratio	0.16	0.45	-0.29	-65.37
6	Operating margin (%)	9.86	6.21	3.65	58.76
7	Net profit margin (%)	6.93	4.05	2.88	71.29

Explanations for variances exceeding 25%:

S.No	Explanation
1	Inventory turnover ratio has been increased due to decrease in average closing inventory.
2	Reduction in Finance Cost & increase in PBT resulted higher interest coverage ratio.
3	Reduction intradepayable&otherfinancialliabilitiesresulting . a higher currentratio
4	Reduction in bank term loan & lower utilisation of Cash credit limit resulting a lower debt equity ratio.
5	Reduction in Finance Cost & increase in PBT resulted higher Operating Margin.
6	Net Profit margin has been increased due to increase in profit after tax.

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.

Place: New Delhi

Date : 02/08/2024