ritesh intl Management discussions

Industry Structure, Developments, Opportunities and Threats

The Rubber and PVC industry is growing at a faster pace. Our product range includes Stearic acid, Fatty Acids; the ultimate users of our products are Rubber and PVC industries. Since our inception, we are providing superb quality products to our valued customers at national level. The raw materials are procured from reliable vendors and each product is tested on several parameters to ensure optimum quality Therefore the demand of our products is set to grow at much faster rate. Your company is trying its best to increase the market share of its products and to economize its production.

Further, the Company is now actively taking steps to improve the knitwear division business. The Company has made sales of Rs. 11,419.51 lakh from stearic acids & other non-edible oils (Previous year Rs. 12,746.91 lakh) and sale of garments Rs. 1,244.85 lakh (Previous year Rs. 1,299.66 lakh). Company is in process to increase the market for knitwear division.

OPPORTUNITIES AND THREATS

OPPORTUNITIES

Production of Rubber and PVC industry is on an increasing trend day by day due to increase in the demand of Rubber and PVC and its allied products. Since our products are mainly consumed by these industries, demand of our products is also set to increase.

Company is now focusing in the Knitwear Division too. As company has income from sale of garment is Rs. 1,244.85 lakh (Previous year Rs. 1,299.66 lakh) which has resulted in increased(decrease) sales by -4.22 % from the last year income of knitwear division. So, the Company is actively involved to increase the market share of its knitwear division in coming years.

THREATS

There is lot of competition in the market in these segment and continuous increases in raw material cost are main threats. Shortage of stable and skilled man-power, increasing input cost i.e. power, finance & logistics, striking a balance between the quality and price of products etc are basics risks in the industry. Further there can be risks inherent in meeting unforeseen situation, not uncommon in the industry. Company also recognizes the risks associated with business and would take adequate measures to address the associated risks and concerns.

Segment Wise performance

As the Companys business activities fall within a single primary business segment, Hence, the reporting on Segment wise Performance of the Company as per the provisions is not applicable / required. However, the Company has made sales of Rs. 1,244.85 lakh (Previous year Rs. 1,299.66 lakh) of Knitwear Division.

Financial Performance of the Company

The companys overall operational performance has been good during the financial year 2022-23. Revenue of the Company is generated mainly from sale of Stearic Acids and Other Non-edible Oils. Companys achieved sales The Company has made sale of Rs. 12,746.91 lakh from stearic acids & other non-edible oils (Previous year Rs. 6569.73 lakh) and sale of garments Rs. Rs. 1,244.85 lakh (Previous year Rs. 1,299.66 lakh). The Company has earned profit of Rs. Rs. 105.32 lakh during the Financial Year.

Risk and Management Perception

The operations of your company are subject to general business risks and competition in the industry, which can affect the growth of the company. Your company continuously updates its systems and procedures to reduce uncertainties and risks and explore new market to cope with the competition.

Internal Control and their adequacy

The Company has adequate system of internal control and internal audit system and management has access of all its assets and proper procedure is adopted for disposal of any assets of the company.

The Company has appointed an Independent Auditor to ensure compliance and effectiveness of the Internal Control Systems in place.

The Audit Committee is regularly reviewing the Internal Audit Reports for the auditing carried out in all the key areas of the operations. Additionally the Audit Committee approves all the audit plans and reports for significant issues raised by the Internal and External Auditors. The Scope of the Internal audit is not limited to accounts only but also includes operations, inventories, costing records, physical verifications of immovable and movable assets etc. on regular basis. Regular reports on the business development, future plans and projections are given to the Board of Directors.

Material development in human resources and industrial relation front, including No. of people employed

Human Resources Development, in all its aspects like training in safety and social values is under constant focus of the management. Relations between the management & the employees at all levels remained healthy & cordial throughout the year. The Management and the employees are dedicated to achieve the corporate objectives and the targets set before the company. Industrial relations remained cordial and harmonious during the year under review and there was no working day loss due to any adverse activities. The company had employed 215 persons during the financial year 2022-23.

Cautionary Statement

Statement in the management discussion and analysis describing the companys objectives, estimates, projections and expectation may be forward looking statements within the meaning of applicable laws and regulations. Actual results could differ materially due to economic conditions effecting demand, supply, prices, changes in government policies, tax laws and other incidental factors.

1. Management

The Management Discussion and Analysis Report have been included in this Annual Report and include discussion on the matters specified in the Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

2. Code of Conduct

The Board has laid down a code of conduct for all Board members and Senior Management of the Company. All Board Members and Senior Management Personnel have complied with the Code of Conduct. Declaration to this effect signed by the Chairman Cum Managing Director is enclosed with this Annual Report.

3. SHAREHOLDERS

a) Disclosures regarding appointment or re-appointment of Directors

According to the Articles of Association of the Company, one third of such of the Directors for the time being are liable to retire by rotation shall retire and, if eligible, offer themselves for re- election at the Annual General Meeting. Accordingly, Mr. Rijul Arora, Wholetime Director of the company hereby retires by rotation in the ensuing Annual General Meeting and being eligible offered himself for re-appointment.

b) Communication to Shareholders

The quarterly, half yearly and annual results are generally published in Business Standard (English Language) and Desh Sewak (Punjabi Language).

?) Compliance Officer

Ms. Neha Chhabra (A-30546) is the Compliance Officer of the Company. She can be contacted for any investors related matter relating to the Company. Her contact number is 91-0161- 50591286, fax no. is 91-01675-240372 and e-mail ID is cs_riteshinternational@yahoo.com.