COMPANY OVERVIEW:
Ganga Papers India Limited is engaged in manufacturing of paper and paper products. The company offers wide range of paper including Newsprint Papers, Writing paper and Kraft paper. The products manufactured by your company are primarily used for industrial, packaging, stationery & textbook purpose. The products have wide acceptability across the globe. Your Company generates wealth out of waste by using recycled grades of waste paper as prime source of raw material & making 100 % eco-friendly paper. Ganga Papers India Limited believes that social responsibility comes with corporate development. Therefore, from the very beginning, we have been investing into environmental protection facilities, aiming at minimizing our impact to the environment.
OPERATIONS & FINANCIAL PERFORMANCE:
The operations of the Company are satisfactory considering the present slowdown in the economy and the management is striving to achieve better results. The management is taking all necessary steps including various modifications in the plant to ensure the full and efficient running of the plant. The summarized performance of Company during the year was as under:
(Rs. In Lakhs)
| Particulars | Current Year (2022-23) | Previous Year (2021-22) |
| Sales | 29,794.72 | 28,225.08 |
| Profit for the year (after | 325.40 | 535.52 |
| tax) |
OPPORTUNITES
Large and growing domestic paper market and increasing export market for its products. Strong customer base and dealers/distributors network. Governments thrust for education and literacy coupled with increasing disposable income and overall economic growth of the nation. Sufficient infrastructure available with the Company for future expansion. Steady increase in preference to branded products by consumers, booming e-commerce and healthy growth in organized sector are the driving force for robust demand for paper and paperboard.
THREATS
Increasing coal cost
Increasing competition from electronic media and digitalization.
Numerous Regional Trade scheme (RTs)/Free Trade Agreement (FTAs) without adequate safeguard to the domestic industries.
RISKS & CONCERNS
The paper industry is cyclical in nature and its performance depends on the global pulp and paper demand supply situation. The industry is presently witnessing slowdown in demand. The Company has well-diversified product portfolio which insulates it from the cyclical impact to some extent. However, given the growth potential, outlook for companys products looks promising.
INTERNAL CONTROL SYSTEM & ITS ADEQUACY
The effort of the Company to strengthen its internal control systems and their adequacy has yielded fruitful results. The system of internal control is working towards development of transparent and efficient policies for strict adherence to management rules and policies as well as ethical conduct within the organization. The internal control systems are further designed to ensure reliability in financial records and other records for preparing financial information.
OUTLOOK:
During the year under review, we have succeeded to a greater extent in fulfilling the demands of our consumers and we hope that in the financial year 2022-23, we continue with our endeavors and grow even faster. Ganga Papers India Limited (GPIL) commits you that we will put all efforts in successfully running this plant and to make your Company one of the biggest papers producing Company in India as we say that “Making Paper is our Passion”. HUMAN RESOURCE DEVELOPMENT:
The Company has drawn specific programme to improve the skill of the workers so as to rationalize the manpower. Further it is providing necessary training to the manpower. There is a continuous interaction between the management, union and workers. The Company employs 103 people as on 31.03.2023.
KEY FINANCIAL RATIOS:
| Particulars | 2022-23 | 2021-22 |
| Debtors Turnover Ratios (times) | 43.16 | 42.65 |
| Inventory Turnover Ratio (times) | 22.91 | 12.02 |
| Current Ratio (times) | 1.15 | 1.28 |
| Interest Coverage Ratio (times) | 3.32 | 4.71 |
| Debt Equity Ratio (times) | 1.61 | 1.70 |
| Operating Profit Margin (%) | 2.41 | 3.49 |
| Net Profit Margin (%) | 1.49 | 2.55 |
| Return On Net Worth (%) | 11.78 | 21.97 |
The Return on Net Worth decreased from 21.97% in the previous year to 11.78% in the current year owing to major fluctuations in raw material prices.
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CAUTIONARY STATEMENT:
The management of Ganga Papers India Limited (GPIL) has prepared this report and is responsible for the same. Statements in this Management Discussion and Analysis, describing the Companys objectives, projections, estimates and expectations may be “forward looking statements” within the meaning of applicable laws and regulation and the management has based them on its current expectations and its projection about future events. Actual result might differ materially from those either expressed or implied
| Place : Pune | |
| Date : 11th August, 2023 | |
| By Order of the Board of Directors | |
| Sd/- | |
| Ramesh Kumar Chaudhary | |
| (Chairman & Director) | |
| DIN: 00080136 |
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