Rathi Graphic Technologies Ltd Management Discussions.


Statement in the Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations may be considered to be forward looking statements within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent development, information or events.

The strong fundamental character of Indian Economy indicating increase in the production activities acts as a fuel for the growth of your Company. Your company with adequate infrastructure and an active eye on the emerging opportunities at domestic and international level is poised to grew and enhance its shareholder value.


As part of our expansion plans, the Company is regularly making efforts for business expansions and diversifications activities.


The long term aim of the Company is to strengthen its established brand image by offering customers quality products at reasonable prices. The aim of the Quality Policy of the Company is to provide satisfaction to its customers. To achieve this, the Company is committed to develop, produce and market products that cater continuously to the need and expectations of customers and giving the Company competitive advantage. The R & D team of the Company is giving good results as the Company has developed several new products at competitive prices which helps in facing competition and boosting export.


Since 100 % of raw material of the Company is imported, Foreign Exchange fluctuations, increase in oil prices and international fright etc. may have adverse impact on the cost of manufacture of the Co.s products. The Companys ability to pass on cost of increase by corresponding increase in selling price of its product constrained due to tough competition in the Markets.


The focus of the Company continues to be on strengthening presence in existing markets and to this extent extensive sales and brand building effects have been taken.


Competition whether domestic or international is always a challenge and transforming challenges into opportunities has a practice of our company.


Surging price level poses a major threat to the Company and the economy as a whole. Rising prices reduce the value of money leaving consumers with low purchasing power. Low purchasing power disturbs the demand supply chain which causes serious threat to production roll out.


The sales for the year were Rs. 1,867.95 Lakhs. The

Company earned aprofit before tax of Rs. (7,33.39) Lakhs. This doesnot include the sales and profit of the

Associate Company.


The Company has a proper and adequate system of internal control geared towards achieving efficiency in its various business operations, safeguarding assets, optimum utilization of resources and compliance with statutory regulations.

The Company has continued its effects to align its processes and controls with best practices and has put in place a process wise internal control framework across the Company.

The Internal Auditors of the Company conduct audits of various departments based on an annual audit plan covering key area of operations, including overseas operations. Internal Audit reviews and evaluates the adequacy and effectiveness of internal controls, ensuring adherence to operating guidelines and systems and recommending improvements for strengthening them. The Company has put in place a Risk Assessment and mitigation process across all its business operations, which is reviewed by the Management and Board Audit Committee.


Fund Management is crucial and important for the

Companys growth. The financial system of the organization is responsible for the management of funds. The Companys financial management has held it in good stead but a little bit difficult due to continuous downward fall in rupee and rising prices of commodities over the year and has given it the unbeatable reputation of being one of the most profitable toner manufacturing companies in the Country.

The Company had initiated moves in its right earnest for repaying and swapping the high interest borrowing with low interest rate funds. As on Balance Sheet date the total secured borrowing of Rs. 8.20 crores comprise long terms loans of Rs. 0.23 Crores and working capital loans of Rs. 7.97 crores.


The Company considers industry as its primary segment. Revenue and expenses directly attributable to segments are reported under each segment. The segments revenue in financial year 2018 is Rs. 1867.95 Lakhs against segment revenue in financial year 2017 was Rs. 3166.95 Lakhs.


The Company successfully met the challenges of its business environment due to dedication, competence and commitment displayed by its employees. The human resource function and initiatives of the Company are driven by strong set of values, policies and philosophy Performance orientation and ethics are the cornerstones of our human resource philosophy. Relations between employees and management have remained cordial through out the year. Initiatives are being taken to enhance the productivity of employees. The Company appreciates the contribution made by all employees in ensuring better performance and achievements during the year. The Company continued to implement best practices and innovative initiatives to meet the challenges of acquiring and retaining talent against intense competitive pressures. The Company continued to place emphasis on training, skills enhancement and competency development of its people for meeting future challenges. The Company sustained its emphasis on imparting required training to its employees.


Industrial relations remained cordial during the year. The total number of employees as on 31st March, 2018 were 63.


Accounting standard were followed during the preparation of Financial of the company.


Statement in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be ‘forward-looking statement within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important developments that could affect the Companys operations include a downward trend in the domestic FMCG industry, rise in input costs, exchange rate fluctuations, and significant changes in political and economic environment in India, environment standards, tax laws and litigation and labor relations.