Tokyo Plast International Ltd Management Discussions

GLOBAL ECONOMIC OUTLOOK & RECENT DEVELOPMENT & OVERVIEW COMPANY PHILOSOPHY ON CORPORATE GOVERNANCE

Corporate governance is a mechanism by which the values, policies and procedures of the organizations are inculcated and manifested. The essence of corporate governance lies in promoting and maintaining integrity, transparency and accountability throughout the organization.

OUTLOOK

The country ended fiscal year 2023 to 2024 with a big boom, surpassing all market estimates of GDP, with 8.15% year-over-year (YoY) growth. For three consecutive years, Indias economy has exceeded growth expectations (averaging 8.3% annual growth over this period) despite global uncertainties, driven by strong domestic demand and continuous government efforts toward reforms and capital expenditure.

Indias GDP grew 8.15% YoY over fiscal 2023 to 2024, with a sharp growth of 7.8% in the fourth quarter of 2023, beating the governments second advanced estimate of 7.6% and Reserve Bank of Indias (RBI) estimate of 7.3%. Fourth-quarter economic activities pointed to three interesting trends: improvement in private consumption, exports, and manufacturing.

The Thermoformed Plastic Products market is anticipated to exhibit fluctuating growth patterns in the near term, largely influenced by persistent factors contributing to sluggish growth in 2023. However, improvements in the economy and alleviation of supply chain concerns are projected to facilitate a rebound in demand for the Thermoformed Plastic Products market, particularly in the latter half of 2024.

Despite the anticipated challenges in 2024, the Thermoformed Plastic Products industry can leverage valuable opportunities by prioritizing resilience and innovation. This entails maintaining investment discipline, actively engaging in business ecosystems, and demonstrating a strong commitment to sustainability, thereby underscoring the chemicals industrys pivotal role in driving sustainable solutions.

INDUSTRIAL STRUCTURE AND DEVELOPMENT

Recent deals and developments are considered for their potential impact on Thermoformed Plastic Productss future business. Other metrics analyzed include the Threat of New Entrants, Threat of New Substitutes, Product Differentiation, Degree of Competition, Number of Suppliers, Distribution Channel, Capital Needed, Entry Barriers, Govt. Regulations, Beneficial Alternative, and Cost of Substitute in Thermoformed Plastic Products market.

Thermoformed Plastic Products trade and price analysis helps comprehend Thermoformed Plastic Productss international market scenario with top exporters/suppliers and top importers/customer information. The data and analysis assist our clients in planning procurement, identifying potential vendors/clients to associate with, understanding Thermoformed Plastic Products price trends and patterns, and exploring new Thermoformed Plastic Products sales channels. The research will be updated to the latest month to include the impact of the latest developments such as the Russia-Ukraine war on the Thermoformed Plastic Products market.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Company achieved a turnover of Rs.6636.61 Lakhs as against Rs.7552.80 Lakhs in the previous year and the profit/(Loss) after tax is Rs.100.48 Lakhs as against profit of Rs.(12.46) Lakhs in the previous year.

Efforts are being made to bring back business on growth path in coming financial year 2024-25, the company expecting tremendous progress with newly in house designed value added products.

OPPORTUNITIES AND THREAT

The presence of unorganized players and reprocessed products continues to challenge the market with unethical practices, providing substandard products made from lower grade materials, and taking advantage of the consumers lack of awareness. We strive to promote high quality competitive products thereby pushing ourselves towards growth. In a fast-evolving Indian market most brands tend to wither, but we ensure that we do not make any compromises in our long-term business objectives and our brand strength. The growth of the Company is subject to opportunities and threats as are applicable to the industry from time to time.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an adequate Internal Control System commensurate with the size, scale and nature of its operation. The Audit Committee reviews the adequacy and effectiveness of Internal Control System. There are stringent internal control systems and procedures to facilitate optimal resource utilisation by keeping a check on unauthorized use of products. The Companys regular checks at every stage of its production and dispatch cycle ensured strict operational and quality compliance. Internal audit is conducted at regular intervals at all the plants and covers the key areas of operations. It is an independent, objective and assurance function responsible for evaluating and improving the effectiveness of the risk management, control and governance process.

The Audit Committee is regularly reviewing the Internal Audit Reports for the auditing carried out in all the key areas of the operations. The Company has appointed an Independent Auditor to ensure compliance and effectiveness of the Internal Control Systems.

RISK AND CONCERN

While risk is an inherent aspect of any business, the Company is conscious of the need to have an effective monitoring mechanism and has put in place appropriate measures for its mitigation including business portfolio risk, financial risk, legal risk and internal process risk. Your Company continuously monitors and revisits the risks associated with its business.

SEGMENT WISE PERFORMANCE

The Company is operating in a single segment. Hence, no separate segment wise information is given.

HUMAN RESOURCES DEVELOPMENT AND INDUSTRIAL RELATIONS

The Company recognizes human resources as a key component for facilitating organizational growth and shareholder value creation. Over a period of years, your Company has employed, groomed and retained experienced and qualified pool of human resources. Companys processes are designed to empower employees and support creative approaches in order to create enduring value. Various initiatives have been taken to strengthen human resources of the Company. Your Company maintains a cordial relationship with its employees. As on 31st March, 2024 the Company has 412 employees.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis and Directors Report describing the Companys strengths, strategies, projections and estimates, are forward-looking statements and progressive within the meaning of applicable laws and regulations. Actual results may vary from those expressed or implied, depending upon economic conditions, Government Policies and other incidental factors. Readers are cautioned not to place undue reliance on the forward looking statements.