taal enterprises ltd share price Management discussions


Industry Structure and Developments:

Along with the Aviation Services the company has entered into a different vertical of Engineering services. With this, company aims to provide tangible and sustainable benefits and solutions to our clientele.

Opportunities, Threats, Risk and Concerns:

The Civil Aviation policy introduced by government which lays emphasis on regional connectivity is also likely to give a further impetus to this growth.

On the negative side, the industry continues to suffer from a shortage of skilled manpower and there continue to be a number of infrastructural challenges that put pressures on the cost of aircraft operations as well as on the utilization levels of charter aircraft.

Your Company regularly evaluates and reviews potential risk on account of various factors such as government policies, natural / man-made disasters and political risk.

Your company is keeping a close watch on these developments to map a future course of action.

Outlook:

The Company has had a presence in the Air Charter segment of the Aviation Industry. However, since the aircraft accident the Company is not operating with any aircraft. The Company is in process of merging its wholly owned subsidiary i.e., TAAL Tech India Private Limited with the Company and entering into a business of Engineering services, Embedded systems, and IoT solutions.

Internal Control Systems and their adequacy:

Through regular internal review systems, the Companys internal control system is being continuously strengthened to meet adequate standards. The Company is in the process of further strengthening of internal control systems.

Financial Performance:

The financial performance of the Company for Financial Year 2022-23 as Compared to the corresponding previous year is given below

(Rs. In Lakhs)

Particulars 2022-23 2021-22
Gross Income 905.57 904.46
Profit/(Loss) before exceptional items and tax 775.61 858.12
Profit/(Loss) before tax 775.61 846.17
Profit/(Loss) after tax 765.56 800.07
Earnings Per Share 24.57 25.67

The Company has one material subsidiary viz. TAAL Tech India Pvt. Ltd. (TTIPL) engaged in providing Product Engineering Services, R & D Services customized to the specific needs of every individual customer.

The Financial Performance of TTIPL for the Financial Year 2022-23 as compared to the corresponding previous year is given below:

(Rs. In Lakhs)

Particulars 2022-23 2021-22
Total Income 16,611.00 14,040.15
Expenditure 12,152.59 9,426.95
Profit Before Tax 4,458.41 4,613.20
Profit After Tax 3,164.61 3,819.95

Material developments in Human Resources/Industrial Relations:

The Company maintained good industrial relations with its employees and staff. As on March 31, 2023 the Company had two employees.

Key Financial Ratios:

In accordance with the Listing Regulations, as amended, the Company is required to provide 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 the following ratios as key financial ratios:

Particulars 2022-23 2021-22 Change
Debtors Turnover NA NA -
Inventory Turnover NA NA -
Interest Coverage Ratio NA NA -
Current Ratio 5.36% 20.91% -290
Debt Equity Ratio NA NA -
Operating Profit Margin (%) NA NA -
Net Profit Margin (%) 84.54% 88.46% 5%
Return on Net Worth (%) 48.44% 52.77% -9%

Current ratio impacted due to the advance received for sale of salvage/ damaged aircraft reported under current liabilities.

Since, no charter operations were carried out during the year, the operating results and ratios are not comparable.

Cautionary Statement:

Statements in the Management Discussion and Analysis describing the Companys expectations or predictions are forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include demand-supply conditions, changes in Government regulations, tax regime, economic developments within the country and other factors such as litigation.