GLOBAL ECONOMY OVERVIEW
World economic activity has proven more resilient than expected in the past three
months, but the outlook for global growth in 2023 has deteriorated. This reflects the
prospect of faster-than-anticipated monetary policy tightening and a darkening outlook for
Chinas property sector. The global growth is expected to fall to 1.4% next year which
would, abstracting from the pandemic in 2020, be the weakest expansion since 2008.
Russias war of aggression against Ukraine continues to overshadow the world economy.
Despite recent signs of improvement, recovery over the next two years is expected to be
moderate. The outlook remains fragile and downside risks predominate. High uncertainty
generated by the war could take a heavy toll on activity. Trade tensions are high and
could worsen.
A key factor in the improvement in activity and sentiment in early 2023 was the recent
decline in energy and food prices. While levels are still relatively high compared to
pre-war, this is boosting purchasing power for most firms and households and is helping to
lower headline inflation. The earlier-than-expected re-opening in China is also expected
to have a positive impact on global activity, reducing supply chain pressures and giving a
boost to international tourism.
INDIAN ECONOMY OVERVIEW
India to witness GDP growth of 6.0 per cent to 6.8 per cent in 2023-2024, depending on
the trajectory of economic and political developments globally. The International Monetary
Fund (IMF) expects India to grow by 5.9% in FY 2023-2024 and by an average rate of 6.1%
over the next five years.
Indian economy staging a broad based recovery across sectors, positioning to ascend to
pre-pandemic growth path in Financial Year 2022-2023. Strong economic growth in the first
quarter of FY 2022-2023 helped India overcome the UK to become the fifth-largest economy
after it recovered from repeated waves of COVID-19 pandemic shock.
In spite of strong global headwinds, Indias overall exports were projected to grow at
17.33% in the last Quarter (from January to March 2022-2023) over same period last year
(April-January 2021-2022).
The Indian startup ecosystem is facing several challenges despite recording an increase
in the number of startups to 84,012 in 2022 from 452 in 2016, according to the Economic
Survey Report 2022-2023.The Department for Promotion of Industry and Internal Trade
(DPIIT) recognized that startups have created more than 9 Lakh direct jobs, according to
the report.
HAND TOOLS MARKET
The global hand tools market is classified on the basis of type, distribution channel,
end-user, and region. By type, the market is segmented into wrench, plier, screw drivers,
hammers, cable cutter, and others. By distribution channel, the market is bifurcated into
in store and online. By end user, the market is categorized into DIY, commercial, and
industrial.
The Covid-19 pandemic continues to transform the culture of various industries. The
Hand Tools Market has witnessed a moderate growth over the past few years. The number of
major manufacturing plants and industries has increased significantly in the recent past
where hand tools are majorly utilized for maintenance purpose. After the slow-down of
pandemic wave, the demand for professional hand tools has been increased. The
industrialization and growing investment in the infrastructure sector are key trends in
the Hand Tools Market.
The center-of-gravity of the economic world will further re-balance with by
simultaneous shifts, from west to east, from rural to urban, ageing to young economies.
Asias role in global hand tools demand and trade will be even greater over the next
decade.
Professional market contributes the larger share of power and hand tools. Professional
market comprises of individuals who work in industries such as construction,
manufacturing, and other. Increase in technical jobs and employment is a great opportunity
for the hand tools market to expand in terms of quality and pricing, as professionals use
high end tools and are willing to pay more for such products. Over the last few years,
manufacturers have been focusing on the development of innovative products with high
durability and improved efficiency, which in turn has led to an increase in R & D
spending.
This will further create market for new and innovative products and cater to the
growing demand from customers. The global hand tools market is significantly fragmented
and manufacturers are witnessing strong competition from fellow players.
BUSINESS REVIEW AND PERFORMANCE
The current market conditions are improving in a balanced manner and there are hopes of
steady recovery form the past effects of pandemic situation. The Company will continue to
pursue the long lasting and stable growth based on its philosophy of generating profits
through creation of the" Greatest Value" for its Customers and Stakeholders.
The Company has paid Interim Dividend to its Shareholders @775% for the Financial Year
2022-2023 and also declared Final Dividend Financial Year 2022-2023.Company has always
shared its growth with its Shareholders.
SWOT ANALYSIS
Strengths
Superior Quality of product. s Brand Name of the Company in Hand Tools Market. s
Powerful dealer and service Network. s Strong leadership of Top Level Management. s
Skilful and qualified employees. s Emerging and Challenging New markets.
Readiness to cope up with the advancements emerging in the Market.
Weakness
Increasing production and Operation Cost. s Increasing demand.
Opportunities
Global Market Demand.
Technology improvement.
Digitization of business processes.
s Informative Programme for advancements in Hand Tools.
Threats
Rising cost of raw material.
Competition from domestic and international imports. s Uncertainties due to
global crisis.
OPERATIONAL AND FINANCIAL PERFORMANCE
The Companys working during the year is very satisfactory as compared to last year
performance. The Companys total Revenue was Rs.76887.55 Lakh that represents an increase
of 14.84% over Rs. 66949.85 Lakh in the previous year. The total comprehensive income
after tax is Rs.7208.70 Lakh in the current year represents an increase of 9.9% against
Rs.6559.11 Lakh in the previous year.
The efforts by the Management have lead to very stable and healthy work environment in
the Company and paves way for the future growth. The Management always takes efforts for
its employees for better growth of an organization at all levels. The Board acknowledges
strong commitment and on the ground efforts of all employees towards the growth of the
Organization.
Established in 1969 in India with collaboration with Swedish Company, Taparia Tools
Limited are one stop and most reliable solution to hand tools requirements. The Company is
committed to providing quality products to increase customer satisfaction and provides a
life time guarantee on its products. The Company is continuously expanding its product
line with new innovative products to address the needs of market along with offering ease
of use maintaining the aesthetic look.
| RATIOS |
2022-2023 |
2021-2022 |
% CHANGE |
| Current Ratio (Times) |
4.27 |
3.87 |
10.33 |
| Return on Equity Ratio (%) |
26.75 |
27.38 |
(2.30) |
| Inventory Turnover Ratio (Times) |
3.30 |
4.13 |
(20.10) |
| Trade Receivable Turnover Ratio (Times) |
11.75 |
10.91 |
7.70 |
| Trade Payable Turnover Ratio (Times) |
11.98 |
15.31 |
(21.75) |
| Net Capital Turnover Ratio (Times) |
3.17 |
3.06 |
3.60 |
| Net Profit Ratio (%) |
9.46 |
10.00 |
(5.00) |
| Return on Capital Employed (%) |
35.77 |
37.00 |
(3.32) |
| Return on Investments (%) |
3.25 |
4.00 |
(18.75) |
RESEARCH AND DEVELOPMENT
Taparia Tools Limited has a dedicated Research and development team of Professionals
continuously looking for ways to increase their products effectiveness, conduct study of
market trends and advancement and come up with new ideas that will shape the market.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:
The Company has established proper and effective internal control system to provide
reasonable assurance for safeguarding the Companys assets, promoting operational
efficiency and reliability and ensuing compliance with various legal and regulatory
provisions. The internal control systems are designed to ensure that the financial and
other records re reliable for preparing financial statements and for maintaining
accountability of assets and other records in a systematized manner.
The company has created an effective internal control system, by establishing the
following:
• Policies and procedures including, organizational structure, job descriptions,
authorization matrix;
• Segregation of duties and responsibilities;
• Authorization and approval process;
• Performance monitoring and control procedures;
• Safeguarding assets, completeness and accuracy;
• Manpower management;
• Independent internal audit function;
• Regulatory compliance and risk management;
Company has documented Standard Operating Procedures (SOPs) for procurement, human
resources, sales and marketing, logistics, finance and treasury, financial reporting,
compliances and other areas of its operations.
The compliance to these controls and systems including SOPs is periodically reviewed by
the Internal Audit function and exceptions are reported. All material audit observations
and follow up actions thereon are reported to the Audit Committee. The Committee holds
regular discussions with the auditors to ensure adequacy, efficiency and effectiveness of
the internal control systems and monitors implementation of audit recommendations form
time to time .
ENVIRONMENT, OCCUPATIONAL HEALTH AND SAFETY:
A Health work culture can drive better economic development and a feeling of
well-being. Taparia Tools Limited recognizes the importance health and wellness of its
employees as well as at the Factory and Offices. The Safety, Occupational Health &
Environmental Policy (SH &E Policy), inter alia, covers and ensures safety of public,
employees, plant and equipment, ensures compliance on a monthly basis by developing
compliance systems and imparts training on Safety, Sustainability & Prevention of
Sexual Harassment to all its employees. Due to Companys commitment to improve the
well-being of its employees and contract workmen, it organizes physical fitness activities
like Occupational Health Examination Camps, medical checkups, consultation and counseling.
HUMAN RESOURCES:
Human Resource is a key pillar to the success of manufacturing industries. To ensure
your business can overcome the challenges threatening the industry, you need to make sure
you have a skilled and dedicated work force.
"HR can also help to ensure that staff is retained and create value and
performance-based reward systems. Another important role that HR plays in manufacturing
businesses is that they are able to create better and effective recruitment processes
based on the experience and caliber of the Candidate, on-boarding training which can help
to eliminate the skills shortage gap altogether.
The Company has strongly embedded core values and all employees are trained and
encouraged to use these values in their daily operations and the bases for making
decisions. Taparia Tools Limited have a favorable work environment that encourages
innovation and meritocracy. The Company continued the welfare activities for the
employees, which include Medical Care, Group Insurance, Canteen facility, etc. To enrich
the skills of employees and enrich their experience, the Company arranges Practical
Training Courses by Internal and External Faculty. The Company has good cordial relation
with trade union and employees representatives and views these relationships as
contributing positively to the success of the business.
STATUTORY COMPLIANCE
All declarations and compliances with respect to the applicable statutes, enactments
and guidelines are submitted at every meeting of the Board of Directors of the Company.
The Company Secretary who is also the Compliance Officer gives a declaration of compliance
to the Board with respect to the applicable provisions of Companies Act, 2013 and
Securities and Exchange Board of India (SEBI) Regulations.
CONCLUSION
The Company has posted better results in the financial year 2022-2023 despite of the
existing economic and financial crises. The Company is concentrating to achieve higher
position in the Hand Tools Market in near future and multiply its turnover on launching
new products with superior quality by use of advance technology, effective and qualified
manpower.
Cautionary Statement
Statements in the Management Discussion and Analysis describing the Companys
objectives-r projections, estimates, expectations and predictions may be
"forward-looking statements" within the meaning of applicable securities law
and regulations. Actual results could differ materially from those expressed or implied,
important factors that could make difference to the Companys operations include raw
material availability and prices, cyclical demand and pricing in the Companys principal
markets, changes in the Government regulations, tax regimes, economic developments within
India and countries in which the Company conducts business and other incidental factors.
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