Wim Plast Management Discussions


Overview

Despite of a few global challenges India continued to be strong in terms of growth. India being among the Top 10 in terms of growth and economy, GDP is also estimated to grow around 7% in the current financial year and is expected to maintain in the coming years. The financial year 2022-23 proved to be a diverse operating environment. Again, the polymer prices were volatile this year, mainly in the 1st quarter where it was at its peak and started melting down post September.

Post Covid this was the first financial year, which was operational throughout, however the year continued to remain challenging in terms of business. Brands with quality focus were badly affected due to the volatility of prices and was benefited to the unorganized players that have inferior but identical products.

The company has its presence on all major online platforms and also on its own e-commerce portal for sale and market penetration. To cater Government supplies the company has enrolled its products on GEM Portal (Government E Marketplace) that will certainly give a great success in terms of sale and visibility of our products in the market and end users.

Brands always have the edge in the market particularly for consumer products. Your company brand "CELLO" is preferred in plastic consumer items, known for its quality and wide range of products for more than four decades. The Company is being innovative and regularly adding new products in all categories including Seating System, School Furniture, Horeca, Cabinets, Kids furniture etc. During the year under review the Company remained debt free. The Companys Capex and its working capital requirements have been entirely funded through internal accruals. The excess cash accruals during the year have been judiciously deployed from time to time in safe and secure investment avenues with the objective of generating optimal returns, while maintaining the assurance of liquidity at short notice.

The Company continues to enjoy favourable terms with its vendors / customersforeffectivelymanaging its working capital requirements at optimum cost. The Company continue to focus on timely collections & also planning procurement optimally to mitigate fluctuations in raw materials prices and for minimising the logistic costs.

The Company has its well-defined policy to protect the infrastructure and secure its information. The policy clearly stands to safeguard all information in the interest of the Company. The Company has a robust security mechanism designed to defend and protect its infrastructure from external threats or vulnerabilities.

In the short to medium term the Company expects strong revenue growth, better operating margins, healthy liquidity surpluses, increasing contribution of value added products & continued focus on efficient working capital management.

Internal Control

The company has adequate, proper and well placed Internal Financial Control System, which ensures that all the assets are safeguarded and all the transactions are authorized, recorded and reported correctly in a timely manner.

Internal Auditors comprising of professional firms of Chartered Accountants have been entrusted to conduct regular internal audits and report to the Management, the lapses, if any. Both Internal Auditors and Statutory Auditors independently evaluate the adequacy of Internal Control System. Based on the Audit observations and suggestions, follow-up, remedial measures are being taken including review and increase in the scope of coverage, if necessary.

Independence of the Audit and Compliances is ensured by direct reporting of Internal Auditors to the Audit Committee of the Board. The Audit Committee of Directors in its periodical meetings, review the adequacy of Internal Financial Control System and procedures and suggest areas of improvement.

Risk Management

The Company is exposed to various potential risks like Economical Risk, Compliance Risk, Cyber risk, and Geopolitical risk, Operational Risk, Environmental Risk and Financial Risk, etc. Senior management regularly and systematically reviews the key risk areas while the Risk Management committee also reviews and provides input to mitigate the risk.

Human Resources

From its early days, Company remained an equal opportunity employer and has embedded these values in its employee life cycle management from hiring, retaining to retirement. The Company provides a work environment that fosters collaboration, lateral thinking and innovative ideation for employees to create value.

The Company continued to put in place people friendly policies and practices in the past year and continues to focus on adopting best practices for its HR policies. The Company also has a strong focus on ensuring that employees are adequately trained in their job functions and on all compliance related trainings. The HR function also ensures all statutory compliances with labour laws and other relevant statutes and ensures that strong background screening standards are in place to minimize any risk of fraud from incoming employees.

The total staff strength of the Company as on 31st March, 2023 stood at 269.

Disclosure on Accounting Treatment

In the preparation of financial statements for F.Y. 2022-23, there is no treatment of any transaction different from that prescribed in the Accounting Standards notifiedby the Government of India under Section 133 of the Companies Act, 2013 read with Rule 7 of the

Companies (Accounts) Rules, 2014; guidelines issued by the Securities and Exchange Board of India and other accounting principles generally accepted in India.

Key Financial Ratios

Particulars

F.Y. 2022-23 F.Y. 2021-22 Change (%)
Debtors Turnover 4.63 4.73 (2.11)
Inventory Turnover 2.01 1.88 6.91
Interest Coverage Ratio 0.00 0.00 -
Current Ratio 9.96 15.54 (35.91)
Debt Equity Ratio The Company is debt free. Hence, this is Not applicable.
Operating Profit Margin (%) 13.40 11.56 15.92
Net Profit Margin (%) 12.38 11.16 10.93
Return on Net Worth 0.10 0.09 11.11

Detailed explanation of ratios:

i. Current Ratio

Increase in Current Ratio is due to advance received against Assets held for Sales.

Cautionary Statement

The content provided for Management Discussion and Analysis Report may vary with the anticipation made in the discussion statements. It describes the Companys objectives, projections and estimates progressive within the meaning of applicable security laws and regulations. Actual results may vary from those expressed or implied, depending upon economic conditions, Government Policies and other incidental factors. Taxation laws, Economic Development, Cost of Raw Materials, Interest and Power Cost are among the few extraneous variables that influence the Companys operations.