synthiko foils ltd Management discussions

INDUSTRY STRUCTURE & DEVELOPMENTS

Globally, aluminum is one of the fastest growing metal. This continued demand growth is generated from various sectors like Power, Transport, Construction, Consumer durable & Packaging. The consumption of aluminum in these sectors will have a steady growth & growth rate in these sectors are expected to be aligned with GDP growth rate.

OPPORTUNITIES & THREATS

Opportunity

With the continued interest of general population for well packaged food & the properties of aluminum foils to keep products away from sunlight & in preserved environment, the consumption of Aluminum Foils & other packaging material has continued to grow in recent time, the growth has been constant & all the Pharma Products & FMCG products have chosen Aluminum Foil & other packaging material to further their products in market. The continued trends indicate strong demands in the future with growth prospective in demand Year on Year.

Threats

With opportunities owing to the growing markets, equated amount of threats are also posed by way of new players entering the market segment & packaging industry is no stranger to similar threats, the challenges by way of enhanced competition in market place & changing dynamics of packaging requirements do pose threat to existing product folio, while also at times importations at much cheaper prices in some of the packaging material & also the Forex Fluctuations do play some challenges which will need to be met by packaging industry.

RISK AND CONCERNS

Your company in the packaging industry does faces equated risks like any other company in Non-Ferrous Metal industry, involving facing competition with existing manufacturers & also challenges brought forward by new entrants in the industry. The challenges by way of cheaper imports also needs to be alert with & the additional challenge brought out by Covid-19, the demand may be affected with negative growth in the industry.

SAFETY, HEALTH & WORK ENVIRONMENT

With introduction of Modern Manufacturing Techniques, motivation to small group activities, housekeeping competition etc. helps us to keep track of performances of individual departments. Our company will continue to invest in their employees for better environment in the plant.

Your Company conduct regular monitoring of work environment within the facility & i.e. noise level checks, illumination level checks, work environment air quality monitoring, air emission levels, etc. to ensure that best possible work environment is offered to all of employees & to ensure that we do not deviate from our responsibilities towards the society.

ENERGY

The Company has a strong commitment towards energy conservation for the benefit of the nation and itself. Efforts to optimize process parameters modernize & upgrade technology as well as equipments, with the objective of increasing energy productivity are continuous and ongoing.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company views Internal Control as a tool for improving operational performance and ensuring reliability of reporting mechanism. The Company is equipped with adequate internal control systems for its business operations which determine the efficiency of its operational strengths in financial reporting and ensure compliance with applicable laws and regulations.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Employees are vital and valuable assets for any organization. They always been part of success stories experienced by organizations. Your Company recognizes people as the primary source of its competitiveness and continues to focus on people development by leveraging technology and developing a continuously learning human resource base to unleash their potential and fulfill their aspirations. It believes in creating a favorable work environment which can lead to innovative ideas. The Company has an optimum process of recruitment and awarding its human resource which leads to attraction and retention of highly qualified and productive individuals in the organization.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, expectations and estimates regarding future performance may be "forward looking statements" within the meaning of applicable securities laws and regulations and are based on currently available information. The management believes these to be true to the best of its knowledge at the time of preparation of this report. However, these statements are subject to future events and uncertainties, which could cause actual results to differ materially from those that, may be indicated by such statement.

RATIO ANALYSIS:

Particulars	2022-23	2021-22	Change %
Debtors Turnover Ratio	4.65	5.13	-10.00
Inventory Turnover Ratio	7.72	6.92	11.32
Interest coverage Ratio (%)	0.54	5.05	-89.31
Current Ratio	2.09	1.79	16.75
Debt Equity Ratio	0.73	0.72	1.38
Operating Profit Margin Ratio (%)	2.75	6.55	-58.00
Net Profit Margin Ratio (%)	0.65	3.09	-79.00
Return on Net worth (%)	2.93	16.29	-82.00

Debtors Turnover Ratio: Reduced due to increase in payment days from debtors. Inventory Turnover Ratio: Increased due to decrease in stock level as per business requirement. Interest Coverage Ratio: Reduced due to reduction in profit margins.

Current Ratio: Improved as compared to last year. Debt Equity Ratio: Remains at same level as last year.

Operating Net Profit Margin Ratio: Decreased due to market fluctuation in Raw material prices. Net Profit Margin Ratio: Decreased due to margin reduction because of volatility in Raw Material prices.

Return on Net Worth: Decrease due to low profit margins.

	For and on behalf of the Board
	of SYNTHIKO FOILS LIMITED
	Sd/-
	Ramesh Dadhia
Date: 14.08.2023	Managing Director & Chairman
Place: Jawhar
	(DIN 00726044)