Industrial Structure and Development
India is the largest producer of black tea and produced about 1367 million Kgs in 2022 against 1329 million Kgs of Tea during calendar year 2021. The average sale price during 2022-2023 is Rs.180 per kg in comparison to Rs. 190 per kg in the 2021-2022. India is the second largest producer of tea after China. The climate change continues to affect the Tea Industry as it is still dependent on the vagaries of nature. The climate in the tea growing areas continues to be erratic, adversely affecting the productivity of the plantation at its Tea Estate.
The Contribution of small Growers in Indian Tea Production continues to swell every year and is now more than 50% of the Total Crop whereas production from the Organized Sector is declining consistently. Global Tea Consumption is likely to grow due to Tea being recognized as a health drink. Indian Tea Consumption continues to grow steadily.
The companys main business is plantation, processing and sale of tea. The crop yield depends on the climatic condition to a very large extent. Steps are being taken by your company for increasing the yield by implementing improved agricultural practices.
Outlook
The health of our industry depends to a large extent on the geographical conditions which are outside the realm of the control of the company. The tea industry is a highly labour intensive. The wages of workers are determined according to periodic wage settlement agreement which often increase the labour cost to a significant extent irrespective of any improvement in productivity and realization. Due to continued conflict between the Russian-Ukraine exports have been affected along with various other disruptive forces which has adversely affected prices. The Companys Policy of continuous uprooting and planting with high yielding quality clones along with regular upgradation of its manufacturing facility will enable the Company to face future challenges.
Internal Control System and Its Adequacy
The Company has an adequate Internal Control system to ensure proper and efficient use of the companys resources, accuracy in financial reporting and due compliance of the company policy procedure as well as the statutes. Statutory and internal auditors also review its implementation and progress at periodic intervals and take corrective action where any short comings are identified. The audit committee similarly reviews the internal control system and provides guidance for improvement. The committee also discussed with statutory auditor to ascertain, inter alia, their views on the adequacy of internal control system and inform their observation to the Board of Directors.
Financial and Operational Performance
During the year 2022-2023 the company reported a net sale of Rs. 42.36 Crores in comparison to previous year Rs.39.33 Crores and profit for the year ended 31st March 2023 (after tax) is Rs.351.17 Lakhs in comparison to Profit of Rs. 720.68 Lakhs last year. Decrease in average price realization and increase in input cost has significant adverse impact on bottom line of companys profit.
Human Resources and Development
The company has around 1366 permanent employees employed at the tea estate. The labour welfare officer employed specifically for the purpose monitors the welfare of the workers.
The Tea Estate of your Company is certified under Trustee indicating firm commitment towards sustainability as well as workers health, hygine and safety. It is your companys endeavor to provide safe, healthy and sustainable working environment to the employees and their families.
Your company runs a hospital, ambulance and dispensaries at its out divisions providing medical care to the employees. Personnel
Your Company believes in employee empowerment in order to achieve organizational effectiveness.
Details of Significant Changes in Key Financial Ratios & Change In Return on Net Worth Along With Details Explanation Thereof
Refer Note No.-40 of Notes to Accounts.
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www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.