Yash Optics & Lens Ltd Management Discussions

Overview:

Our Company was originally incorporated on July 23, 2010 as "Yash Optics & Lens Private Limited" under the provisions of the Companies Act, 1956 with the Registrar of Companies, Mumbai, Maharashtra. Subsequently our Company was converted into Public Limited Company and name of company was changed from "Yash Optics & Lens Private Limited" to "Yash Optics & Lens Limited" vide fresh certificate of incorporation dated January 29, 2024 issued by the Registrar of Companies.

Established in the year 2010, Our Company provides wide array of vision correction solutions. Our Company is primarily engaged in the business of manufacturing, trading, distribution and supplying of comprehensive range of spectacle/optical lenses. We are offering from single vision lenses to advanced progressive lenses, customized progressive lenses to personalized progressives for professionals along with wide range of coatings. Our products are available across the entire range of price points enabling us to serve the entire gamut of customers from economy to the luxury segment. Our company manufacture the lenses based on order and prescription received from the customers. Under the trading space, our company sources the spectacle/optical lenses and market the same under its own brands for further sale through distributors and own retail channels.

We have started our journey in the year 2002 with trading and supplying spectacle / optical lenses under the name of M/s Yash Optics, a proprietary firm of one of our Promoter, Mr. Chirag Manharlal Doshi. In the year 2007 we have started importing the lenses under M/s Yash Enterprises, a proprietary firm of one of our Promoter, Mr. Dharmendra M Doshi. In the year 2012 we have started manufacturing of prescription lenses under M/s Yash Lenses, a proprietary firm of one of our Promoter, Mr. Tarun Manharlal Doshi.

In order to achieve the synergy benefits from combining the proprietary concern, our Company has acquired M/s Yash Lenses in the year 2021-22 through business transfer agreement dated April 1, 2021 with ongoing concern basis along with all assets and liabilities. Before the said acquisition, our Company was engaged only in trading and distribution of a wide range of optical and spectacle lenses. Post the said acquisition, our Company has started manufacturing of spectacle / optical lenses in its own name which was earlier manufactured by Yash Lenses.

Our Company is also appointed by HOYA Lens India Private Limited, as an exclusive distributor to sell, market and distribute the "Pentax" brand of Ophthalmic lenses in India pursuant to agreement dated October 01, 2022 as per the terms and condition laid down in the said agreement.

Our manufacturing facility is situated at 71-C, Government Industrial Estate, Ganesh Nagar, Kandivali (West), Mumbai-400067, India, is well equipped with required facilities including machinery, other handling equipments to facilitate smooth manufacturing process and easy logistics. We endeavor to maintain safety in our premises by adhering to key safety norms, established through our internal health and safety manual, accompanied by regular safety meetings. Our manufacturing facility is accredited with ISO 9001:2015 for quality management system for the manufacturing, import, export, trading, stockiest and supplier of ophthalmic lens and ophthalmic products.

Industrial Structure and Developments:

Yash Optics & Lens Limited, a NSE Emerge Portal Registered Company (formerly known as Yash Optics & Lens Private Limited) is the fastest emerging technology-driven optical and lens company. from India. Having carved out a niche for its expertise in manufacturing optical lenses over the last 24 years today Yash O&L stands at the forefront of delivering hi-tech digital vision healthcare solutions.

The total income of Company stood at Rs. 4120.38 Lakhs in the current year as compared to Rs. 3978.94 Lakhs in the previous year.

I. Organizational Structure:

Our organizational structure is designed to support our strategic objectives, enhance operational efficiency, and drive innovation within the optics and lens industry. The structure ensures clear lines of authority and responsibility, enabling us to effectively manage complex operations and respond swiftly to market changes.

Executive Management:

? Chief Executive Officer (CEO): The CEO of our Company provides overall strategic direction and leadership for the company and is responsible for setting long-term goals, engaging with the Board of Directors, and ensuring the alignment of organizational efforts with the companys vision and mission and is also responsible for Strategic planning, high-level decision-making, stakeholder communication.

? Chief Financial Officer (CFO): The CFO of our Company manages the companys financial health, including financial planning, risk management, and reporting and is responsible for financial strategy, budgeting, forecasting, and financial reporting.

Functional Management:

? Manufacturing and Production: Manager of Manufacturing and Production department oversees all manufacturing operations, ensuring efficiency and adherence to quality standards and is responsible for managing production lines, scheduling, and workforce supervision and this department has various teams such as Quality Assurance Team and Supply Chain and Logistics Team for managing the affairs related to manufacturing and production.

? Sales and Marketing: Manager of Sales and Marketing department directs the sales and marketing strategy and oversees both departments and other teams of this department focuses on sales on B2B and B2C sales and handles market research, digital marketing, and brand promotion.

? Finance and Administration: Controller manages financial reporting, budgeting, and internal controls and Treasurer oversees cash flow management, investments, and financing.

? Human Resources: HR Managers focus on recruitment, employee relations and organizational development and does various employee training programs and professional development.

II. Our strategy:

Yash Optics & Lens Limited (O&L) is an optical lens company that manufactures, trades, distributes, and supplies a variety of spectacle and optical lenses. The companys strategy has been to transition from a trading entity to a manufacturer and supplier, while leveraging its industry experience and operational efficiency to expand and solidify its market leadership. Our mission is to provide high-quality vision correction solutions that are tailored to each individuals lifestyle, work, and leisure.

Some of Strategies of Company:

Expand product portfolio

Company has increased its product portfolio by adding brands like IRIS and Seto, and has expanded its distribution network into Maharashtra, Gujarat, and Rajasthan.

Focus on quality

Company aims to provide superior quality products, service, and technical support to its customers.

Adapt to sunlight

Lenses are designed in such a way to adapt to sunlight intensity and reduce eyestrain and glare. They also offer UV protection lenses for outdoor use and anti-glare blue block lenses for indoor use.

III. Our Competitive Strengths:

We believe that we have a number of competitive strengths that will allow us to capitalize on the current trends in our industry, including:

? Advanced Technology and Innovation: The ability to develop and incorporate cutting-edge technology in lens design and manufacturing, such as adaptive optics, high-precision coatings, and novel materials, provide significant advantage to our company.

? Quality and Precision: We have great reputation for producing high-quality, precise lenses and optical systems that attract customers who prioritize performance and reliability, whether in scientific instruments, consumer electronics, or medical devices.

? Customization Capabilities: We offer tailored solutions to meet specific customer needs, such as bespoke lenses for specialized applications or custom coatings, that set a company apart from competitors.

? Comprehensive Product Range: By providing a wide variety of optical products and solutions, from basic lenses to complex optical systems, can appeal to diverse markets and applications.

? Expertise and Skilled Workforce: We have a team of highly skilled engineers, scientists, and technicians who enhance the companys ability to solve complex problems and develop high-performance optical products.

? Strong Intellectual Property Portfolio: Our proprietary technologies protect our innovations and provide a competitive advantage by preventing others from copying key technologies.

? Excellent Customer Support and Service: We provide exceptional customer service, including technical support, after-sales service, and easy-to-navigate support channels, can enhance customer satisfaction and loyalty.

Our competition

Yash optics and lens face a range of competitive challenges that impact their market position and profitability. Here are some key aspects of competition in our industry:

? Price Pressure: Intense competition can drive prices down, especially in commoditized markets like consumer optics. Companies must balance competitive pricing with maintaining quality and profitability.

? Global Competition: The optics and lens industry is highly globalized, with competitors from different regions offering similar or lower-priced products. We must navigate varying regulatory standards, economic conditions, and market dynamics across countries.

? Emerging Startups: New entrants and startups with innovative technologies or disruptive business models can pose a significant threat. These companies may introduce novel products or more efficient processes that challenge established players.

? Substitute Products: Alternative technologies or products that can perform similar functions to optical lenses (e.g., digital imaging technologies or virtual reality systems) may impact demand for traditional optical components.

?Technological Advancements: Rapid technological changes can be both an opportunity and a threat. We must continuously innovate to keep up with advances in lens design, materials, and manufacturing processes, or risk falling behind competitors who are more technologically advanced.

? Quality Differentiation: Maintaining high standards of quality and precision is crucial. Competitors who offer superior optical performance or reliability can attract customers who are willing to pay a premium.

? Regulatory Compliance: Compliance with varying international standards and regulations can be challenging. Ensuring products meet safety, environmental, and quality standards across different markets is essential for maintaining market access and avoiding legal issues.

IV. Opportunities and threats

Opportunities

Our company have numerous opportunities to grow and thrive in a rapidly evolving market. Here are some key opportunities for our Company:

1. Automotive Industry

? Advanced Driver Assistance Systems (ADAS): Lenses used in cameras and sensors for ADAS and autonomous vehicles are in high demand, driven by the growing focus on vehicle safety and automation.

? Head-Up Displays (HUDs): Developing lenses for HUDs in vehicles provides opportunities in the automotive sector.

2. Emerging Markets

? Healthcare and Medical Devices: Expanding into medical optics, such as endoscopy, optical coherence tomography (OCT), and vision correction technologies, offers growth potential.

? Augmented and Virtual Reality (AR/VR): With the rise of AR and VR, there is a growing demand for high-quality lenses that enhance immersive experiences.

3. Consumer Electronics

? Smartphones and Tablets: Increasing demand for high-resolution cameras in consumer electronics creates opportunities for lens innovation and improvement.

? Wearable Technology: Expanding into optics for wearables, such as smart glasses and fitness trackers, offers new revenue streams.

4. Technological Innovation

? Advanced Optics: Development of new optical technologies, such as adaptive optics, metamaterials, and quantum optics, can lead to breakthrough products and applications.

? Miniaturization: Creating smaller, more compact lenses for use in smartphones, wearables, and other portable devices opens up new markets.

5. Renewable Energy

? Solar Energy: Developing lenses and optical systems for concentrating solar power (CSP) technologies can contribute to the renewable energy sector.

6. Global Expansion

? Emerging Economies: Expanding into emerging markets with growing demand for optical technologies, such as Asia-Pacific and Latin America, can drive growth.

? Local Manufacturing: Setting up local manufacturing or assembly operations in key regions can reduce costs and improve market responsiveness.

7. Enhanced Customer Experience

? Digital Solutions: Leveraging digital platforms for e-commerce, virtual try-ons, and customer engagement can enhance the customer experience and drive sales.

? After-Sales Services: Offering comprehensive after-sales support, including maintenance and repair services, can build customer loyalty and drive repeat business.

Threats

Our Company faces several potential threats that could impact on operations, market position, and profitability of our Company. Here are some of the key threats:

1. Intense Competition

? Price Wars: Aggressive pricing strategies by competitors can erode profit margins, particularly in commoditized markets.

? Technological Advancements: Competitors with more advanced technologies or innovative products can capture market share and challenge established players.

2. Rapid Technological Change

? Obsolescence: Fast-paced technological advancements may render existing products obsolete, requiring continuous investment in research and development.

? Innovation Pressure: The need to stay ahead of technological trends can strain resources and impact profitability if not managed effectively.

3. Economic Fluctuations

? Recession Risks: Economic downturns can reduce consumer and industrial spending on optical products, affecting sales and revenue.

? Currency Fluctuations: For companies with global operations, changes in exchange rates can impact costs and profitability.

4. Intellectual Property Risks

? Patent Infringement: Risks of patent disputes or infringement by competitors can lead to costly legal battles and impact innovation.

? Counterfeiting: The presence of counterfeit products in the market can damage brand reputation and lead to financial losses.

5. Regulatory Challenges

? Compliance Costs: Navigating complex regulatory environments across different countries can increase compliance costs and impact operations.

? Product Safety and Standards: Failure to meet safety and quality standards can result in recalls, legal issues, and damage to the companys reputation.

6. Cybersecurity Threats

? Data Breaches: Cyberattacks or data breaches can compromise sensitive information, leading to financial losses and reputational damage.

? Intellectual Property Theft: Cyber threats can target valuable IP, including proprietary designs and manufacturing processes.

V. FUTURE OUTLOOK:

The future outlook of our Company is shaped by several evolving trends and opportunities across various sectors. Heres a comprehensive look at the key factors influencing the future of the Company:

1. Technological Advancements

? Miniaturization and Integration: Advances in miniaturization will continue to drive demand for smaller, high-performance lenses that can be integrated into compact devices such as smartphones, wearables, and medical instruments.

? Emerging Technologies: The growth of augmented reality (AR), virtual reality (VR), and mixed reality (MR) will require advanced optical solutions for immersive experiences. Innovations like adaptive optics, wave front sensing, and optical metamaterials will play a significant role.

2. Healthcare and Medical Applications

? Medical Imaging: The demand for high-resolution imaging and diagnostic tools in healthcare is expected to grow. Applications like optical coherence tomography (OCT), endoscopy, and microscopy will see continued advancements.

? Vision Correction: Innovations in contact lenses, intraocular lenses, and corrective eyewear will cater to the growing need for personalized vision solutions.

3. Automotive Industry

? Advanced Driver Assistance Systems (ADAS): The expansion of ADAS and autonomous driving technologies will drive demand for high-quality optical sensors and cameras.

? Head-Up Displays (HUDs): Development in HUDs will enhance driver safety and information accessibility, increasing the need for precision optics.

4. Consumer Electronics

? High-Resolution Cameras: The demand for advanced camera systems in smartphones, drones, and other consumer devices will continue to grow, driving innovation in lens design and manufacturing.

? Wearable Tech: Smart glasses and other wearable technologies will require innovative optical solutions, creating new opportunities for growth.

5. Industrial and Scientific Applications

? Precision Measurement: Optical systems for industrial measurement, inspection, and quality control will remain crucial, particularly as manufacturing technologies become more sophisticated.

? Scientific Research: Continued investment in scientific research will drive demand for advanced optical instruments and systems.

6. Renewable Energy and Environmental Applications

? Solar Energy: Lenses and optical systems for concentrating solar power (CSP) and photovoltaic systems will play a role in advancing renewable energy technologies.

? Environmental Monitoring: Optical sensors for environmental monitoring and pollution detection will become increasingly important.

7. Global Market Expansion

? Emerging Markets: Growth in emerging economies, particularly in Asia-Pacific and Latin America, will offer new opportunities for market expansion and revenue growth.

? Localization: Establishing manufacturing and distribution facilities in key regions can reduce costs and improve market responsiveness.

8. Regulatory and Compliance Considerations

? Global Standards: Adapting to evolving global regulations and standards will be crucial for maintaining market access and avoiding legal issues.

? Product Safety: Ensuring compliance with safety and quality standards will remain a priority to protect consumers and uphold brand reputation.

VI. RISK AND CONCERNS

1. Quality Control Risks

? Defects and Failures: Manufacturing defects can result in faulty lenses, which could lead to returns, recalls, and damage to the companys reputation.

? Consistency: Maintaining high quality across large production runs and different product lines can be challenging.

2. Regulatory and Compliance Risks

? Industry Standards: Failure to meet industry standards or regulatory requirements can result in legal consequences, fines, and loss of market access.

? International Regulations: Different countries have varying regulations regarding optical products, adding complexity to global operations.

3. Competitive Risks

? Market Saturation: The optics market can be saturated, leading to intense competition and pressure on prices and margins.

? New Entrants: Emerging companies with innovative technologies or lower costs can disrupt established market dynamics.

4. Intellectual Property Risks

? Patent Infringement: Risk of unintentionally infringing on existing patents, which can lead to legal disputes and financial penalties.

? IP Theft: Risk of intellectual property theft or unauthorized use, which can undermine competitive advantage and lead to financial losses.

5. Economic Risks

? Economic Downturns: Economic recessions can reduce consumer spending on high-end optical products, impacting sales.

? Currency Fluctuations: For companies with international operations, currency exchange rate fluctuations can affect profitability.

6. Technological Risks

? Obsolescence: Rapid changes in technology can make current products outdated. For instance, advancements in lens coatings or new optical materials can render older designs less competitive.

? Innovation Pressure: Constant need for innovation requires substantial investment in research and development, which can be risky if new technologies dont meet market expectations.

7. Supply Chain Risks

, ? Material Shortages: Optical lenses require high-precision materials that may be subject to shortages or fluctuations in availability.

? Production Delays: Issues with suppliers or production facilities can lead to delays, affecting delivery schedules and customer satisfaction.

VII. Financial condition

Internal Financial Control Systems and their Adequacy:

Internal financial control systems are essential for managing an optics and lens companys financial health, ensuring compliance, and maintaining operational efficiency. They involve a set of processes, procedures, and controls designed to safeguard assets, ensure accurate financial reporting, and prevent fraud.

The Company has adequate and efficient internal control system, which provides protection to all its assets against loss from unauthorized use and ensures correct reporting of transactions. The Company has put in place proper controls, which are reviewed at regular intervals to ensure that transactions are properly authorized, correctly reported and assets are safeguarded.

The Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

Segment wise or product-wise performance: The Company is presently engaged in manufacturing, trading and distribution of optics and lens and also provide technology innovation.

The performance of Company for the financial year 2023-24 is summarized below:

(Amount in Lakhs)

Particulars	31/03/2024	31/03/2023
Revenue from operations and Other Incomes	4120.38	3978.94
Profit/Loss before Interest, Depreciation and Tax	1469.75	1256.33
Less: Finance Cost	170.45	101.65
Net Profit/Loss before Depreciation and Tax	1299.3	1154.68
Less: Depreciation and amortization for the year	87.39	69.57
Net Profit/Loss before exceptional and extraordinary items and tax	1211.91	1085.11
Less: Exceptional Items	0.00	0.00
Profit before extraordinary items and tax	1211.91	1085.11
Less: Extraordinary Items	0.00	0.00
Profit before tax	1,211.91	1085.11
Less: Tax Expenses	-	-
Current tax expense	292.33	274.64
Deferred tax expense	17.31	7.67
Profit/Loss for the period from continuing operations	902.27	802.80
Tax expense of discontinuing operations	0.00	0.00
Profit/Loss from discontinuing operations (after tax)	0.00	0.00
Profit/Loss transferred/adjusted to General Reserve	902.27	802.80
Basic earnings per equity share	18.76	8028.03
Diluted earnings per equity share	18.76	8028.03

1. Revenue from operations: Revenue from operations mainly consists from Sales of products.

2. Other Income: Other Income Consist of Interest Income, Discount Received & Other Misc. Incomes etc.

3. Expenses: Companys expenses consist of, Cost of Material Consumed, Changes in Inventories of Finished Goods WIP & Stock in Trade, Depreciation Expenses, Employee Benefit Expenses, Finance Cost & Other Expenses.

4. Cost of Material Consumed: Cost of Material Consumed consist of Opening Stock, Purchase of Raw Material, Direct Expenses & Closing Stock.

5. Changes in inventories of Finished Goods, Semi Finished Goods & Stock in Trade: Changes in inventories of Finished Goods, Semi Finished Goods & Stock in Trade consist of difference between opening & closing Value of Stock.

6. Employee Benefits Expense: Employee benefit expenses includes Salaries and Wages, Directors Remuneration & Contribution to Statutory Funds, Gratuity Expenses etc.

7. Finance Cost: Finance Cost includes Interest paid on borrowings & Bank Charges.

8. Depreciation and Amortization Expense: We recognize Depreciation and Amortization expense on a SLM Basis as per the rates set forth in the Companies Act, 2013/ Companies Act, 1956, as applicable.

9. Other Expenses: Other expenses include Rent, Repair & Maintenance. Commission Expenses, Travelling & Conveyance etc.

Review of Operations for the period ended on March 31, 2024:

1. Revenue from Operation

Revenue from operations for the period ended on March 31, 2024 amounting to 4110.99 lakhs representing 99.72% of Total Revenue.

2. Other Income

Other Income consisting of Discount Received, Interest Income & Duty Drawback amounting to 9.39 Lakhs representing 0.22% of Total Revenue.

3. Cost of Material Consumed

Cost of Material Consumed for the period ended on March 31, 2024 amounting to 1635.55 lakhs representing 39.70% of Total Revenue.

4. Changes in Inventories of Finished Goods, Semi Finished Goods & Stock in Trade

Changes in Inventories of Finished Goods, Semi Finished Goods & Stock in Trade amounting to (278.21) Lakhs representing (6.75) %of Total Revenue.

5. Employee Benefit Cost

Employee benefit expenses includes Salaries and Wages, Directors Remuneration & Employee Insurance, Gratuity Expenses etc. amounting to 571.87 Lakhs representing (13.87) %of Total Revenue.

6. Finance Cost

Finance Cost includes Interest on Borrowings & Bank Charges amounting to 170.45 Lakhs representing 4.13 %of Total Revenue.

7. Depreciation and Amortization

Depreciation is charged on Straight line method amounting to 87.39 Lakhs representing 2.13 %of Total Revenue.

8. Other Expenses

Other expenses include Custom clearing and Forwarding Charges, Chemical Testing Expenses Rent, Repair & Maintenance, Commission Expenses, Travelling & Conveyance etc. amounting to 721.42 Lakhs representing 17.50 % of Total Revenue.

9. Profit Before Tax

The Profit before tax for the period ended on March 31, 2024 was 1211.91 Lakhs representing 29.41% of Total Revenue.

10. Tax Expenses

Tax Expenses consisting of Current Tax & Deferred Tax for the period ended on March 31, 2024 was 292.33 Lakhs and 17.31 Lakhs respectively, representing 7.09% and 0.42% respectively of Total Revenue.

11. Profit After Tax

The Profit after tax for the period ended on March 31, 2024 was 902.27 Lakhs representing 21.89% of Total Revenue.

Fiscal 2024 compared with Fiscal 2023:

1. Revenue from Operation

Revenue from operations had increased from 3970.21 lakhs in Fiscal 2023 to 4110.99 lakhs in Fiscal 2024. This increase was due to increase in sales of products during the year. Since in the year 2024 company has increased its business promotion and marketing operations due to which the order book of the company has increased & in result the revenue of the company has also increased in year 2024 as compared to the fiscal year 2023.

2. Other Income

Other income had increased from 8.73 lakhs in Fiscal 2023 to 9.39 lakhs in Fiscal 2024 due to increase in Discount and Rebates received.

3. Cost of Material Consumed

Cost of Material Consumed had increased from 1495.43 lakhs in Fiscal 2023 to 1635.55 lakhs in Fiscal 2024.This increase was due to increase in sales during the year.

4. Changes in Inventories of Finished Goods, Semi Finished Goods & Stock in trade

Changes in Inventories of Finished Goods, Semi Finished Goods & Stock in Trade had increased from (35.76) lakhs in Fiscal 2023 to (278.21) lakhs in Fiscal 2024.

5. Employee Benefit Expenses

Employee benefit expenses had increased from 611.38 lakhs in Fiscal 2023 to 571.87 lakhs in Fiscal 2024.

6. Finance Cost

Finance Cost had increased from 101.65 lakhs in Fiscal 2023 to 170.45 lakhs in Fiscal 2024. This increase was primarily due to increase in Interest on borrowings during the year.

7. Depreciation and Amortization Expenses

Depreciation had increased from 69.57 lakhs in Fiscal 2023 to 87.39 lakhs in Fiscal 2024.

8. Other Expenses

Other expenses had increased from 651.56 lakhs in Fiscal 2023 to 721.42 lakhs in Fiscal 2024.

9. Tax Expenses

The Companys tax expenses had increased from 282.31 lakhs in the Fiscal 2023 to 309.64 lakhs in Fiscal 2024. This was primarily due to increase in current tax expenses during the year which got increased from 274.64 Lakhs in the year 2023 to 292.33 lakhs in the year 2024 & increase in Deferred Tax Expenses from (7.67) Lakhs in the year 2023 to 17.31 lakhs in the year 2024.

10. Profit after Tax

After accounting for taxes at applicable rates, our Company reported a net profit of 902.27 lakhs in Fiscal 2024 as compared to a net profit of 802.8 lakhs in Fiscal 2023 which got increased due to higher revenue from operation during the year.

VIII. MATERIAL DEVELOPMENT IN HUMAN & OTHER RESOURCES /

INDUSTRIAL RELATIONS FRONT:

1. Recruitment and Talent Acquisition

Strategies for Recruitment

? Recruitment Platforms: Utilizing specialized job boards and industry networks to attract skilled professionals. Leveraging social media and professional networks for targeted recruitment.

Recent Developments

? Remote Work Opportunities: Increasing acceptance of remote work options for roles that do not require physical presence.

2. Training and Development

Training Programs

? Technical Training: Providing training programs to enhance employees skills in optics technology, lens manufacturing techniques, and quality control.

? Leadership Development: Implementing programs to develop leadership skills and prepare employees for managerial roles within the company.

Recent Developments

? Cross-Training: Encouraging cross-training to provide employees with a broader understanding of different functions within the company.

3. Employee Engagement and Retention

Engagement Strategies

? Recognition Programs: Implementing employee recognition programs to reward outstanding performance and contributions.

? Feedback Mechanisms: Establishing regular feedback and communication channels to address employee concerns and improve job satisfaction.

Recent Developments

? Flexible Work Arrangements: Offering flexible work schedules and remote work options to enhance work-life balance and retain talent.

4. Compensation and Benefits

Compensation Strategies

? Competitive Salaries: Offering competitive salaries based on industry standards and regional benchmarks.

? Performance-Based Incentives: Implementing performance-based incentive programs to align employee goals with company objectives.

Recent Developments

? Benefits Packages: Expanding benefits packages to include comprehensive health insurance, retirement plans, and other perks such as educational assistance.

? Equity Compensation: Exploring stock options or other equity compensation plans for key employees to align their interests with company performance.

5. Workforce Management and Employment Trends

Health and Safety Programs

? Safety Protocols: Implementing and maintaining safety protocols specific to manufacturing and laboratory environments to ensure a safe workplace.

? Compliance: Adhering to health and safety regulations and standards to prevent accidents and injuries.

Recent Developments

? Enhanced Safety Measures: Adapting safety measures in response to emerging risks and regulatory changes.

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefore:

Sr. No. Ratios	Numerator	Denominator	31- Mar- 24	31- Mar- 23	% Change	Reason for Variance
1 Current Ratio	Current Assets	Current Liabilities	2.49	7.48	(66.73) %	Sub-note (i)
2Debt-Equity Ratio	Total Debts	Shareholders Equity	0.85	0.57	48.7%	Sub-note
3Debt Service Coverage Ratio Return on	Earning available for Debt Service Profit after	Debt Service Average	7.20	9.75	(26.14) %	(ii)Sub-note (iii) Sub-note
4 Equity Ratio Inventory	Tax Total	Shareholders Equity Average	36.92	53.41	(30.88) %	(ii)
5 turnover ratio	Turnover	Inventories	2.30	3.04	(24.31) %	-
6Trade Receivables	Total	Average Accounts	3.93	4.78	(17.66) %	-
Turnover Ratio	Turnover	Receivable
7Trade payables turnover ratio	Total Purchases	Average Account Payable	4.38	3.26	34.59%	Sub-note (iv)
8 Net Capital Turnover Ratio	Total Turnover	Net Working Capital	2.07	1.77	17.20%
9Net Profit Ratio	Net Profit	Total Turnover	21.95	20.22	8.54%
10Return on Capital Employed	EBIT	Capital Employed	24.97	39.56	(36.89) %	Sub-note (ii)

Sub-note (i): Current Ratio has been impacted owing to increase in current liabilities as compared to last year.

Sub-note (ii): Debt-Equity Ratio, Return on Equity Ratio and Return on Capital Employed ratios have been impacted in excess of 25% owing to increase in issued and paid up share capital

Sub-note (iii): Debt Service Coverage Ratio has been impacted due to increase in finance cost. Term loans were obtained during the year for purchase of immovable property.

Sub-note (iv): Trade payables turnover ratio has been impacted owing to increase in trade payable as compared to last year.

Disclosure of Accounting Treatment:

The company prepares financial statements in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) including the Accounting Standards notified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on accrual basis. The accounting policies are applied consistently to all the periods presented in the standalone financial statements

The standalone financial statements are presented in Indian Rupee (INR), the functional currency of the Company. Items included in the standalone financial statements of the Company are recorded using the currency of the primary economic environment in which the Company operates (the ‘functional currency). Foreign currency transactions are translated into the functional currency using exchange rates at the date of the transaction.

Date: 31/08/2024

Place: Mumbai

 

	Sd/-	Sd/-
Name	Tarun Manharlal Doshi	Chirag Manharlal Doshi
Designation	Managing Director	Whole-Time Director
DIN	03067691	07935498