Bandaram Pharma Management Discussions

1. Industry Structure and Developments Summary

The India Packaging Market size is estimated at USD 71,90 billion in 2023, and is expected to reach USD 130.14 billion by 2028, growing at a CAGR of 12.60% during the forecast period (2023-2028).

According to the Indian Institute of Packaging (IIP), packaging consumption in India is increased by nearly 200% in the last decade, from 4.3 kilograms per person per annum (pppa) in 2010 to 8.6 kilograms pppa in 2020. Despite the sharp growth over the last decade, this industry remains a large space for growth compared to other developed countries worldwide. Furthermore, India is emerging as an organized retail destination globally. The presence of e-commerce is increasing rapidly and is bringing around a revolution in the retail sector, driving the need for packaging. Retailers are now leveraging digital retail channels, thus enabling wider reach out to customers with fewer amounts of money spent on real estate. Thus, organized retail services and the boom in e-commercc offer enormous potential for the future growth of retailing in India, which in turn is promoting the growth of the packaging sector.

2. Opportunities and Threats

The market is expected to be significantly challenged due to fluctuation in raw materials pricing, dynamic changes in regulatory standards, growing environmental concerns, limited effective recycling of mixed plastic waste, ineffective plastic recovery, and a lack of modem and advanced machinery in India for the packaging sector. The volatile trend in crude oil and demand for polymers in competing applications has been increasing pressure on input costs that fluctuate raw materials prices. Recent disruptions due to Russias invasion of Ukraine and Chinas stringent Zero Covid policy caused substantial supply chain difficulties and aggravated the challenges for the packaging sector in India.

3. Segment-wise Performance

The Company deals only in one segment i,e. procurement and supply of recycled paper. During the four months operations in the FY 22-23, the company achieved a turnover of Rs. 10.09 cr. (Previous year Nil) and earned a net profit after tax of Rs, 20.42 lakhs.

4. Outlook

Currently, the company is supplying the basic raw material for producing the paper and paper board. With the market experience of 4 moths, the encouragement from the different paper mills is very good and lucrative. During the FY 2023-24, the Company is planning to put up a grading and bailing unit in Banglore. Once this facility is come into operation, the quality of material will be improved and sales quantities also will be increased significantly.

5. Risks and Concerns:

Packaging product in paper packaging comprises folding cartons, corrugated boxes, paper bags, and liquid paperboard. With the considerable increase in organized retail, the demand for paper packaging is anticipated to increase due to the rapid increase in supermarkets and modem shopping centers. In June 2022, the Central Pollution Control Board (CPCB), a federal agency under the Ministry of the Environment, released a list of steps to outlaw specific single-use plastic products by June 2022. Such measures are delayed due to the different options adopted by the State Governments which considerably effect the demand for paper packaging in the country

6. Internal Control systems and their Adequacy

The Company has adequate control systems commensurate with its business activities.

7. Financial Performance with respect to Operational Performance Revenues - Standalone

During the year under review, the Company on a standalone basis has recorded an income of Rs, 1009.39 Lakhs and earned a profit after tax of Rs. 20.42 Lakhs as against the no income and incurred a loss of Rs. 1.01 Lakhs respectively in the previous financial year ending 31.03.2022.

Revenues - Consolidated

During the year under review, the Company on a consolidated basis has recorded an income of Rs. 1892.21 Lakhs and earned a profit after tax of Rs. 25.73 Lakhs. The Company has no subsidiary company for the financial year ending 31M Mar, 2022. Hence, consolidated data for the year ending 31s March, 2022, is not applicable.

8. Material developments in Human Resources / Industrial Relations from, including number of people employed.

There are no material developments in Human Resources / Industrial Relations from FY 22 to FY 23.

9, Details of any change in Return or Net Worth as compared to the immediately previous Financial year.

Particulars 2022-23 2021-22 Remarks (If change % is more than 5)
Current Ratio N.A. N.A. No Working Capital Loan from the Banks
Debt Equity Ratio N.A. N.A. No Term Loan from the Banks
Debt Service Coverage Ratio N.A. N.A. No Loans the Banks
Return on Equity 6.81% (-) 0.34% There is no business in 2021-22
Inventory Turnover Ratio 35.78% N.A. There is no business in 2021-22
Trade Receivables Turnover Ratio 26.66% N.A. There is no business in 2021-22
Trade Payable Turnover Ratio 5.48% N.A. There is no business in 2021-22
Net Capital Turnover Ratio 336.46% N.A. There is no business in 2021 -22
Net Profit Ratio 6.81% N.A. There is no business in 2021 -22
Return on Capital Employed 3.64% N.A. There is no business in 2021-22
Return on Investment 0.1% N.A. There is no investment in 2021-22
Return on Net worth 6.81% N.A. There is no business in 2021-22

Change in Return on Net worth as compared to the immediately previous Financial year along with a detailed explanation thereof; The Company went on Corporate Insolvency Resolution Process in the year 2019. During the year 2021-22, the Company had been come under the new Management as per the NCLT order dated 7lh February, 2022. Hence, the Company did not carry out any business till 31" March, 2022.

10. Any other Sector Spcciflc ratios, as applicable:


11. Disclosure of Accounting Treatment

During the preparation of Financial Statement of F.Y. 2022-23 the treatment as prescribed in an Accounting Standard has been followed by the Company. There arc no significant changes in Accounting Treatment as followed by the Company in current financial year as compared to previous financial year.

12, Cautionary Statement

Although we believe we have been prudent in our projections, estimates, assumptions, expectations or predictions while making certain statements, realization is dependent on various factors. Should any known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information.

For Bandaram Pharma Packtech limited
(formerly known as Shiva Medicare Limited)
B. Deepak Reddy
Place: Bengaluru Managing Director
Date: 01.09.2023 (DIN: 07074102)