Sheetal Universal Ltd Management Discussions

1. INDUSTRY OUTLOOK:

During the period under review economy was growing very fast. There were tremendous potential growth of these industries also pandemic situation is under control and industries are back to work on full pace. As ours is the agriculture based products, there is lot of potential demand for the next years.

2. OPPORTUNITIES AND THREATS

The company envisaged remarkable growth over previous years. Companys turn over shows increasing trends due to expansion. Government is providing various incentives to agricultural industries. Also company is come up with IPO in f.y. 2023-24 and looks for new products and machinery for expansion. At the same time, there is intense price pressure from the competitors and international financial crisis. Due to vast experience in manufacturing and international marketing, the Customers also growing rapidly. We have always maintain high quality standard and also make a good track record.

3. INITIATIVES:

The initiatives are being taken by the Company for improving the quality standards and reduction of costs at appropriate level. New machineries were installed to provide better result and to cope up with changing requirement of the industry. The employees at all levels are being made aware of the changing conditions and the challenges of the open market conditions and to train the personnel to tackle the difficult situations which will improve the overall productivity, profitability. Also initiatives were taken by company to direct touch with farmers and also providing them quality services and knowledge.

4. RISKS AND CONCERNS:

Major fluctuations Rupee price value corresponding to fluctuation in the raw material price and stringent market conditions can affect the companys performance. Product risk, risk of fluctuation in the raw material price, government policies, and financial risk can affect the company, which requires continuous follow up.

5. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Significant financial highlights in F.Y. 2023-2024 are as follows:-

A EBITDA increased by 20.05 % as compared to previous year B The net profit after tax of the company decreased by 0.23% with compared to previous year.

C EARNINGS PER SHARE (EPS)

EPS in the fiscal 2023-24 is at 2.76 as compared to EPS of 0.54 in fiscal 2022-23.

6. INTERNAL CONTROL SYSTEM:

Your Company has a proper and adequate system of internal controls, to ensure the safeguarding of assets and their usage, maintenance of proper records, adequacy and reliability of operational information. The internal control is supplemented by an extensive audit by internal and external audit teams and periodic review by the top management, Audit Committee and Board of Directors.

Audit Committee also seeks views of the statutory auditors on the adequacy of internal control systems in the Company. In compliance with Section 143(3)(i) of the Act, the Statutory Auditors have issued an unmodified report on the Internal Financial Controls over Financial Reporting which forms a part of the Independent Auditors Report also forming part of this Annual Report.

7. PERFORMANCE SNAPSHOT:

The standalone financial highlights for FY 2023-24 are as follows: (Rs in Thousands)

Key Financial Ratios :

Reason for change

Reference 1: Due post covid measure overall increase in total debt has lead to such changes

Reference 2: Due to increase in stock holding during the year to mitigate new demand

Reference 3: Due to post covid recovery measure increase in debtors is more as compare to increase in sale

Reference 4: Due to post covid recovery measure decrease in creditor is more as compare to decrease in purchase

8. HUMAN RESOURCES:

In a competitive economy, the proper utilization of human resources plays a crucial role. It begins with best practices in recruiting people and moves through learning and development, engagement, employee feedback and rewards and recognition. Towards this, your Company took various initiatives and has maintained healthy and harmonious industrial relations at all locations. The dedication and hard work of productive and dynamic goal-oriented team is the key factor to the success of your Company. We believe that hiring the right personnel and proper retaining is key to this success. To keep the Company and its human resource competitive, we organized various training programs and experts were engaged to train the employees at various levels. This active process of learning has allowed employees enhance competence and motivation.

9. FUTURE PLAN:

As a long-term planning strategy, company is planning to operate on a larger scale and achieve the highest portion of market demand of its products. Promoters are working very hard to lead company to new horizons and giving better results.

10. SEGMENTWISE & PRODUCTWISE PERFORMANCE

Company operates only in one segment -Segment-1 : "Manufacturing of Agricultural Products"

The major and material activities of the company are restricted to only one geographical segment i.e. India, hence the secondary segment disclosures are also not applicable. Detailed segment wise performance is forming part of audit report of the company.