1. INDUSTRY STRUCTURE AND DEVELOPMENTS
We are engaged in the business of Manufacturing Wires & Cables in India. Our
Company was incorporated in the year 2007 and is engaged in the manufacture and export of
wires and cables in India. We are using advanced technology and machineries for
manufacturing quality products. We started our business with PVC cables and wires in India
which are now supplied across different networks worldwide. Our quality products are sold
not only in India but also in countries like UK, UAE, Africa, Singapore etc. Our
manufacturing facility is situated at Shapar (Rajkot, Gujarat) India. Our facility
involves modern technology, tools, high-tech machines which spin out the quality standard
of cables.
We have a well-equipped research and development unit that helps us immensely to offer
innovative products to our clients. R & D is always a boon for staying ahead of others
in this extremely competitive environment and our cables and wires have always assisted in
the growth of a substantial segment of Indian industry. Our manufacturing facility, spread
over 11483.19 sq m area and has 100 per cent in house facility from wire drawing machine
until testing on finished products. Our Company has purchased additional Machinery to
enhance the production capacities of power and control cables twice.
2. OPPORTUNITIES AND THREATS
Our Company has adequate production capacity to meet an increase in demand. We have
more than 1300 products in cable segments, and we are continued to do so. We are approved
by various Government authorities to supply them regularly to meets their requirements. We
are also approved vendor of various Large Public and Private sector Industries. Increasing
overseas demand, Infrastructure development, transmission needs, Growth in sectors other
than power like, Mechanical cables, Auto cables, Special cables and Power cables. The
company has vast opportunities to expand its product base and also to extend its
operations across globe including untapped countries.
Governments focus on Infrastructure developments such as roads, railways, ports,
housing, smart cities is expected to create demand for electrical Wires and Cables.
Slowdown in the infrastructure activities may impact the near to mid-term growth prospects
for Industrial and Infra segments.
The world market is evaluating Indian companies as an alternative to other Asian
countries. Having a wide product range and state of the art manufacturing facilities,
gives an opportunity to capture the export market especially the developing countries in
Africa and South East Asia. Global economic slowdown led due to pandemic or other factors
might reduce the growth opportunity.
3. FINANCIAL PERFORMANCE
It was an unprecedentedly challenging year. But our agile management of the business
environment and focused approach to fulfillment needs helped us record strong growth.
The key highlights of financial performance are as under:
Revenue from operations: Revenue from operations stood at Rs. 10735.98 Lacs in FY
2023 against Rs. 8513.46 Lacs in FY 2022, registering growth of 26.11%.
EBIDTA: Earnings before interest, depreciation, tax, and amortization (EBIDTA) for
the FY 2023 was Rs. 1244 Lacs compared to Rs. 890.33 Lacs in the previous FY 2022 which
increased by 39.72% as compared to last year.
Profit before Tax: Profit before tax for the FY 2023 was Rs.777.13 Lacs compared to
Rs.448.54 Lacs in the previous FY 2022.
Net Profit Margin: Profit after tax (PAT) for the year was Rs.581.70 Lacs which is
higher by 85.15% as compared to the Profit after Tax (PAT) of Rs.314.17 Lakh in 2021-22.
4. RISK & CONCERNS
Our performance in the year is testimony of the strength of our risk management system
that helped us sail through the turmoil successfully. The Company has a Risk Management
Manual in place that defines the policies, strategies to decide on the risk taking ability
of the organization. Company acknowledges risks, not limited to operational, financial or
compliance that could affect the future performance and market positioning of your
Company. The Company constantly reviews its exposure to various types of risk, whether it
be regulatory, operational, environmental, financial.
The Companys well-established process of risk management includes identification of
design gaps, analysis and assessment of various risks, formulation of risk mitigation
strategies and implementation of the same to minimize the impact of such risks on the
operations. The process ensures that new risks, which might arise, or the impact of
existing risks which might have increased, are identified and a strategy is put in place
for mitigating such risks.
Company embraces a risk management portfolio for forecasting and mitigating the impact
of internal and external risk factors. The internal risks which are mainly associated with
the operations of the Company and the external risks which are linked with the economic
and market volatilities are stated below:
Internal Risks:
? Policy Risk: Company integrates the risk control measures into the
organizations overall governance by periodically assessing the risks of the
policies for internal operations and the statutory issues. Based on the risk assessment,
the policies are amended from time to time.
? Employee Turnover Risk: Company retains a team of qualified and experienced
personnel where the attrition rate is lower than the industry average. The loss of key
personnel to competition is a risk where your Companys technical information would be
acquired by the competitors. Company is motivating and rewarding employees to retain
talent. Your Company also maintains a policy to acquire talent as a succession plan to
support the Companys growth strategy.
? Working Capital Risk: Company caters to the infrastructural and industrial
segments, which largely depends on the economy. Therefore, any setback in the economy
directly impinges on the demand emerging from the infrastructural and industrial segments.
The risk of economic downturn could lead to fund scarcity and delayed realization of
receivables which in turn would affect the working capital requirements of Company.
Company gives priority to the customers who have sound financial locus standing. Company
closely monitors the working capital requirements by constant follow up on receivables and
maintaining lean and symmetric inventories.
? Operational Risk: It related to people, processes, systems and external
factors have a potential risk on your Companys performance. To reduce such risk, your
Company has a risk-review policy in all areas of operations.
? Technology Risk: Company is agile on the technology frontier by constantly
reviewing new technology in terms of product and process to avoid obsolescence. The
Company has a background of constantly upgrading the technology to maintain its position
at par with international players and remain ahead of its peers in the home-turf.
? Product Development Risk: Company has been consistently developing new and
higher range products. The products have to be validated by type testing and long-term
accelerated ageing test from a recognized independent testing laboratory. As these tests
have significant cost involvement, any failure in the product development results
to financial and opportunity loss. The R&D and in-house testing laboratories of
Company have equipped with comprehensive testing facilities which can verify and assess
the quality of the product during the process and final stage prior to conducting
the certification tests at an independent laboratory.
External Risks:
? Competition Risk: The nature of competitive risk is distinct for each product
group. The risk involves entry barriers which are gradually being made more stringent by
the customers to screen out several players. It is imperative for Company to acquire
performance record credentials from the user on supply and installation to qualify as an
eligible bidder. It is also necessary to repeat test and revalidate test reports for
specific type & design of the product. Company has to keep at par with the development
and innovation introduced by the multinational companies to avoid the risk of
obsolescence. Company is addressing to the quality conscious customers to retain its
market share.
? Market Demand Risk: Company is dependent on the infrastructural sector, industries
and original equipment manufacturers. The Government policies have a direct bearing on the
demand from the various market segments. Company has a broad base clientele, wide
product range and flexible manufacturing set-up, therefore, it can somewhat off-set
the cyclical or depressed demand of affected segment with the other segments. From
time-to-time, the Company makes changes in its product-mix to suit the order and
demand pattern.
? Customer Risk: To mitigate these risks, your Company maintains constant
touch with its clientele to understand and deliver products and services aligned to
its changing priorities. Your Company maintains strong business relationship with large
customers by providing technical guidance and information, support on urgent and
crisis requirements to remain virtually in dispensable to the client. Your Company has
built a reputation as a preferred supplier with most of its customers by creating a
quality trust in a bid to protect itself from competition and entry of new players.
? Raw Material Price Risk: The prices of international commodities e.g., copper,
aluminum and polymers, which are the key raw material components, are subject to
considerable price volatility. Since the market prices of cables are generally on firm
price basis, the seesawing prices of these commodities can severely impact the cost
of the product where the consequential risk must be borne by Company. Company gives
priority to customers who allow price variation on input raw materials.
5. INTERNAL CONTROL SYSTEMS
The Companys internal control systems are commensurate with the nature of its business
and the size and complexities of its operations. These systems are designed to ensure that
all assets of the Company are safeguarded and protected against any loss and that all
transactions are properly authorized, recorded and reported. The Company has an adequate
system of internal control in place, which assures of:
Authorization, recording, analyzing and reporting of transactions. Recording and
adequate safeguarding of assets.
Upkeep of accounting records and trustworthiness of financial information.
Corporate policies for financial reporting, accounting, information security,
investment appraisal and corporate governance. Audit Committee of the Board which monitors
and reviews all risks and control issues and financial matters. Computerized and
integrated financial and accounting functions, information feedback system of process
parameters and backtracking from finished products to raw material stage. Routine
evaluation of all financial operating and information technology system. Laying down risk
assessment and minimization procedures and regular review of the same.
6. CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis Report describing the Companys
objectives, projections, estimates, expectations may be "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 economic conditions affecting
demand/supply and price conditions in the domestic and overseas markets in which the
Company operates, changes in the Government regulations, tax laws and other statutes and
incidental factors.
+91-9892691696
