pressman adv Management discussions

Industry Structure and Development, Opportunities and Threats

Competitive forces affect strategy because your competitors react to the strategic actions you take in the marketplace, and your company has to react to their strategic moves. You have to make sure this interplay works to your advantage by using SWOT analysis to identify your companys strengths, weaknesses, opportunities and threats, and by performing the same analysis for your competition.

Outlook

The future of print advertising in India is evolving in response to changing media consumption habits and the digital landscape. With the rise of digital media and online advertising, there has been a shift in advertising spending towards digital platforms. Advertisers are increasingly allocating budgets to digital channels, including online display ads, social media advertising, and search engine marketing, apartfrom OOH media.

Print circulation has been witnessing a gradual decline in recent years. As more people access news and information through digital platforms, the reach and influence of print media have been impacted. This shift has led some advertisers to reduce their print advertising budgets.

Despite the overall decline, print media still offers advantages for certain advertising needs. Print publications with specific target audiences or niche markets can be effective for advertisers seeking to reach those segments. Print advertising can still be impactful when it focuses on creativity, innovation, and delivering a unique experience. Utilizing eye-catching visuals, interactive elements, and engaging storytelling can help print advertisements stand out and capture audience attention.

Many advertisers are adopting integrated advertising strategies that combine print and digital channels. By leveraging both print and digital media, advertisers can maximize their reach and engage with audiences across various platforms. Its important to note that the advertising landscape is dynamic, and different industries and companies may have varying preferences and strategies.

In keeping with the changing times, the management felt that it was imperative that the company expands in the digital and other alternative media segments. It is in this context that in February last year, the company decided to join hands with Signpost India Limited, one of Indias leading Digital OOH companies. On 24th June 2022, the board decided to merge your company with Signpost India Limited. It felt that the merger will bring two of Indias well-known brands to deliver unmatched bouquet of services.

With the merger process progressing well, it is expected that the approval for merger will be received shortly. The company will then be on a fast-track growth path.

Business Overview

The companys business has four major segments - Advertising, Public Relations, Design and Digital. The business is carried out through a network of offices located in Kolkata, Mumbai, Delhi and Bangalore.

Performance Overview

The Company posted revenue of X 1632.90 lakh and Profit before tax of X 547.71 lakh during the year. Business revenues are derived from a mix of advertising, public relations, design and digital services.

Details of significant changes in key financial ratios:

Particulars	2022-23	2021-22
Debtors Turnover	6.89	5.94
Inventory Turnover	-	-
Current Ratio	11.49	11.54
Net Profit Ratio (%)	32.39	32.18
Return on Net Worth (%)	12.17	11.95

* Debt-equity ratio is not applicable since there is no Borrowings. The details of key financial ratios with explanation is provided in note no. 40 offinancial statements.

Adequacy of internal controls

The Company, through internal controls, aims at achieving operational efficiency and optimum resource utilization. The Company ensures strict compliance with all the applicable laws and regulations. A qualified and independent Audit Committee of the Board, comprising non-executive directors, reviews the compliance process and adequacy of internal controls.

Human Resources

The Company has a team of experienced professionals who are able to manage the company efficiently. The total number of permanent employees is 16.

Disclaimer

Certain statements made in this report relating to the Companys objectives, projections, outlook, estimates, etc. may constitute ‘forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such estimates or projections etc., whether expressed or implied. Several factors including but not limited to economic conditions affecting demand and supply, government regulations and taxation, input prices, exchange rate fluctuation, etc., over which the Company does not have any direct control, could make a significant difference to the Company operations. The MD&A should be read in conjunction with the Companys financial statements included herein and the notes thereto.