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Responsive Industries Ltd Management Discussions

Jul 22, 2024|02:09:56 PM

Responsive Industries Ltd Share Price Management Discussions



Your Company is primarily engaged in the business of manufacturing and selling of articles made out of PVC/ polymers. Your Company is a leading India-based manufacturer of polyvinyl chloride (PVC)-based products. The Companys main product verticals are Vinyl Flooring, Synthetic Leather, Luxury Vinyl Tile (LVT) and Shipping Ropes. It has a state-of-the-art manufacturing facility in 65 acres park area located at Boisar, 120 km, north of Mumbai. Your Company dominates in manufacturing across flooring and synthetic leather related PVC products. It has established itself as a leading player in India as well as in the world by completing more than 5,000 projects, exporting the products to over 70 countries across the globe and has a wide network of over 300 active distributors spread across India. Your Companys products are marketed both in India and outside.

The Company produces 24 different type of flooring catering to every section of the society, ranging from hospitals, healthcare, transportation, real estate - offices and residences, which not only giving safety but aesthetic look to the surrounding where it is used. The major segments includes Vinyl flooring, Synthetic leather, LVT, Shipping ropes.

Your Company operates in the segments which include healthcare, safety and transport, education, sports, retail and offices, hospitality, commercial industry, residential, etc. Your Company is the only Asian producer of homogeneous vinyl flooring. With experience in over 40 countries, our flooring is a well-established choice for healthcare practitioners. Our flooring sets the benchmark for hygiene and performance standards in healthcare environments.

The Company has introduced new type of IMPACT flooring which is hard layer interlocking flooring in vide range of looks substituting wooden flooring, marble, granite and tiles. It is very easy to use and fast to lay, environment friendly as well as good in cost and looks. It is so easy and fast to install, full large area can be covered in hours where it would take days to do so.


India is currently witnessing an unprecedented phase of urbanization, with a significant number of people moving from rural to urban areas. Furthermore, the rapid economic growth has resulted in a considerable rise in disposable income, particularly among the middle-class population, which led to an increased demand for improved living standards and housing facilities. Apart from this, the significant growth in the construction industry is resulting in a heightened demand for durable, stylish, and cost-effective flooring solutions, such as vinyl flooring. Moreover, the expanding commercial sector, which includes offices, retail spaces, and the hospitality industry, also fuels this demand as businesses seek to enhance the aesthetics and functionality of their spaces. Besides this, vinyl flooring provides the ability to mimic materials, such as wood and stone, which is further contributing to the market growth. The vinyl flooring market in India is expected to exhibit a CAGR of 6.7% during 2023-2028.

The rising development of modern housing facilities, along with the introduction of vinyl flooring with high aesthetic value and sharper textures, is currently driving the India vinyl flooring market.


The Company is among the market leaders in Polymer products segment. The consumption of PVC products like PVC leather cloth is increased with reasonable percentage in both commercial and household purposes and for other PVC products like PVC sheeting, flooring the consumption in commercial purposes has been increased. With this growing demand of Polymer products in the domestic market as well as the overseas markets for commercial and household application, the Company is expecting several opportunities for profitable growth. The Company has all geared up to meet these challenges and continue to be among the leaders in this sector.

Certain aspects may impede the markets growth. The primary parameter restricting the markets growth is the high installation cost. There is a threat due to the change in the following that could impact the Companys operations in long run, these threats are change in government or regulatory policies, change in economic growth changes in physical infrastructure, changing laws, rules and regulations and legal uncertainties, etc. Your Company continuously adopt the new change and environment in the organisation in order to efficiently run its business and adheres to the rules and regulations as applicable to the Company from time to time.


The Company is engaged only in single segment of products i.e. Polymer products. The Company produces various types, grades and form of PVC flooring, PVC leather cloth, and PVC sheeting. Your Company has achieved Revenue from Operations of Rs. 5376.26 as compared to previous year which was Rs. 4905.27 million and recorded net profit after tax of 109.30 as compared to previous year which was Rs. 153.04 million for the year ended March 31,2023.

In terms of geographical market, performance of the Company is as follows.

(Rs. in Million)


Year ended 31.03.2023 Year ended 31.03.2022


2618.42 2057.20


2757.84 2848.07


5376.26 4905.27


With Companys increased capacity utilization, strong product development, market efforts, the Company is optimistic about its growth in the coming years.


Your Company has internal control procedures to evaluate, monitor and review the risks impacting the Company. The major risks identified by the Board of Directors / Committees of the Board. The Company has laid down a well-defined risk management mechanism covering the risk mapping and trend analysis, risk exposure, potential impact and risk mitigation process. A detailed exercise is being carried out to identify, evaluate, manage and monitor business and non-business risks. The Audit Committee and the Board periodically review the risks and suggest steps to be taken to manage/mitigate the same through a properly defined risk management framework in the Risk Management Policy.


There is an adequate internal control procedure commensurate with the size of the Company and nature of the business for inventory, fixed assets and for the sale of goods or services. The Company has implemented proper and adequate systems of internal control to ensure that all assets are safeguarded and protected against loss from any authorized use or disposition and all transactions are authorized, recorded and reported correctly. The system ensures appropriate information flow to facilitate effective monitoring. The internal audit system also ensures formation and implementation of corporate policies for financial, reporting, accounting and information security.

All operating parameters are monitored and controlled. Regular internal audits and checks ensure that responsibilities are executed effectively. The Audit Committee of the Board of Directors periodically reviews the adequacy and effectiveness of internal control systems and suggests improvement for strengthening these.

The Company has designed and implemented a process driven framework for Internal Financial Controls (“IFC”) within the meaning of the explanation to Section 134(5) (e) of the Companies Act, 2013. For the year ended March 31, 2023, the Company has sound IFC commensurate with the nature and size of its business operations and is operating effectively and no material weakness exists. The Company has a process in place to continuously monitor the same and identify gaps, if any, and implement new and/or improved controls wherever the effect of such gaps would have a material effect on the Companys operations.

The Committee members review performance of the Statutory Auditors and Internal Auditors and take note of adequacy of the Internal Financial Control System.


This has been explained in the Directors Report.


Your Company believes that a motivated and empowered employee base is the key to our operations and business strategy, and has developed a large pool of skilled and experienced personnel.

Your Companys administrative employees play an important role in our centralized support services such as accounting, information technology, marketing and human resource functions. We have developed a decentralized senior management structure in order to ensure timely decision making which is the key to our operations. The recruitment, training and retention of qualified employees are essential to our growth and to meet the service requirements of our customers.

The organisation has established a proactive Grievance handling mechanism and addressed issues at the very initial stage, to ensure industrial peace and higher productivity. The Company is also sensitizing its people to maintain all around wellness to ensure the safety of themselves, their families and society at large in the era of new pandemics.

The Industrial Relations at the Factory have remained cordial.

As on March 31, 2023, the Company had 231 employees it includes the Whole-Time Director and the Executive Director.


Human Resource Management (HRM) plays a crucial role in ensuring smooth functioning of your Company industry. The HR department closely monitors all ongoing activities, including recruitment and your Company follows a rigorous and comprehensive recruitment process to ensure that it hires the best talent in the industry. Your Company ensures diversity in its hiring practices and strives to create an inclusive and welcoming work environment for all its employees. Your Company provides regular training and development programs to its employees at factory and corporate level to ensure that they are equipped with the necessary skills and knowledge to perform their roles efficiently.


Your Company is committed to provide a safe and healthy workplace by minimizing the risk of accidents, injury and exposure to health risks and it complies with applicable laws and regulations with respect to safety at workplace. Various facilities are available at the Companys offices and at factory level such as proper ventilation, hygiene and sanitation, safety audit, emergency exits, first aid box, etc.

The manufacturing unit is maintaining an occupational health and safety management system and environment management system based on the rigorous standards set forth by ISO 45001 & ISO 14001 respectively. The unit has designated safety personnel, safety committees, regular safety training, and they collaborate with external partners to ensure that health and safety standards are integrated in prevailing production processes.

Your Company believes in providing the best Health, Safety & Security measures to its employees and workers is its prime responsibility, and all employees are accountable for it. Your Company is committed to building an environment which is friendly, healthy, safe, and secure culture for its employees to make them comfortable at workplace which benefits them to deliver their work and results in increase in their performance more efficiently and productively.

Your Company is taking several strategic steps towards achieving safest operation in its manufacturing unit. A free health check-up services is provided by your Company to its permanent and contractual workers every year at the factory. Hospitals are one of the essential institutions that must continue to function when an emergency event occurs and your Company has tied up with one of the hospital which is located at the vicinity to the factory where the casualties are sent directly in case of any emergency. These health check-ups help to ensure occupational safety and health of factory workers and compliance with the mandatory laws and regulations framed by the Government from time to time.


In accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key sector specific financial ratios. The Company has identified following ratios as key financial ratios:

Sr. No.


FY 2022-23 FY 2021-22 Comments (If Change >25%) % Changed (performance)


Debtors Turnover (in days)

99 116 NA (15)


Inventory Turnover (in days)

162 174 NA (7)


Interest Coverage Ratio (in times)

2.23 3.46 NA (18)


Current Ratio (in times)

1.32 1.20 NA 10


Debt Equity Ratio (in times)

0.51 0.53 NA (4)


Operating Profit Margin (%)

9.16 9.82 NA 7


Net Profit Margin (%)

2.03 3.12 Reduction in export sales due to macroeconomic factor -35


The Return on Net Worth of your Company for the FY 2022-23 was 1.59% as against 2.26% in the Previous Financial Year. The reason for change is mainly due to decrease in net profit.


In preparation of financial statements, the Company has not followed a treatment different from that prescribed in the Accounting Standards.


The statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and domestic demand supply conditions, finished goods prices, raw material cost and availability, changes in Government regulations, tax regimes, economic developments within India and other factors such as litigation and industrial relations. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.

For and on behalf of the Board of Directors

Mehul Vala

Sadanand Morab

Place: Mumbai

Whole-Time Director & CEO

Executive Director

Date: May 04, 2023


DIN: 09790817

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