pressure sensitive systems india ltd Management discussions

Overview

Despite of a few global challenges India continued to be strong in terms of growth. India being among the Top 10 in terms of growth and economy, GDP is also estimated to grow around 7% in the current financial year and is expected to maintain in the coming years.

The year began on a positive note as the adverse effect of Covid pandemic was effectively controlled with unprecedented vaccination drive and valuable guidance from Central and State Governments. In India, RBI with its effective monetary measures, managed to contain inflationary pressures much better than the Central banks in most other countries.

Business Overview

The Company is presently engaged in manufacture of salt adhesive tapes like Nylon cloth Tapes, Rayon Cloth Tapes. single sided cotton cloth Tapes, Double sided cotton cloth Tapes and Fiber glass cloth Tapes with Installed Capacity of 3,00,000 sq. mts. per annum at its factory site at Plot No.6, Village Pimpleqaon, Taluka Pen, Dist. Raigad, Maharashtra. Till August 1991 since its incorporation, the Company was in the process of tying-up the necessary infrastructural facilities, term loan, and project was under implementation. Hence no operations were carried out. Though the company started commercial production in August 1991 for the purpose of getting feedback response about the acceptability of the product from market, the full-fledged production was started only in October 1992.

In the earlier FY 2021-22 the company was not able to do business, however in the FY 2022-23 the company has picked up well and has started its operations and engaged in business.

The company looks forward to growing further in terms of profit earning as well as scaling up its operations that would further contribute to employment generation.

Risk and Concerns

Risk management is embedded in your Companys operating framework. The Companys approach to addressing business risks is comprehensive and includes periodic review of such risks and a framework for mitigating controls and reporting mechanism of such risks. Senior management regularly and systematically reviews the key risk areas while the Risk Management committee also reviews and provides input to mitigate the risk.

Apart from the usual risks and concerns that affect any commercial, manufacturing, operational, the key business risks and concern areas identified by the Company are as under:

1) Economical Risk

2) Compliance Risk

3) Cyber Risk

4) Operational Risk

5) Industry Risk

6) Environmental Risk

7) Financial Risk

8) Regulatory Risk

Internal Controls Systems and their Adequacy

The company has adequate, proper and well placed Internal Financial Control System, which ensures that all the assets are safeguarded and all the transactions are authorized, recorded and reported correctly in a timely manner. Internal Auditors comprising of professional firms of Chartered Accountants have been entrusted to conduct regular internal audits and report to the Management, the lapses, if any. Both Internal Auditors and Statutory Auditors independently evaluate the adequacy of Internal Control System. Based on the Audit observations and suggestions, follow-up, remedial measures are being taken including review and increase in the scope of coverage, if necessary.

Independence of the Audit and Compliances is ensured by direct reporting of Internal Auditors to the Audit Committee of the Board. The Audit Committee of Directors in its periodical meetings, review the adequacy of Internal Financial Control System and procedures and suggest areas of improvement

Financial Performance with Respect to Operational Performance

		(Rs. in Lakhs except EPS)
SN PARTICULARS	FY 2022-23	FY 2021-22
1 Revenue from Operations	1352000	NIL
2 Earnings before interest, tax, depreciation and amortization (EBITDA) (before other income)	12000	-1023000
3 Profit Before Tax (PBT)	12000	-1023000
4 Earning per share	0.00	0.01

Human Resources

From its early days, Company remained an equal opportunity employer and has embedded these values in its employee life cycle management from hiring, retaining to retirement. The Company provides a work environment that fosters collaboration, lateral thinking and innovative ideation for employees to create value.

Details of Significant Changes in key financial ratios

As the company did not carry out any operational activity there was no turnover or operational income for the FY 2021-22, therefore there is no comparative analysis for the FY 2022-23. The company will be able to compare, analysis and conclude about its financial position in the subsequent FY 2023-24 as the company has resumed its operations in the FY 2022-23 onwards.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the companys objectives, projections, estimates and expectations may be forward looking statement within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.

	For and on behalf of the Board of Director
	Pressure Sensitive Systems (India) Limited
	Sd/-
	Bhagyesh Jayantibhai Mistry
Place: Ahmedabad	Managing Director
Date: 06/09/2023	DIN: 09832939