(As per Regulation 34 of the SEBI Listing Regulations)
INDUSTRY AND OUTLOOK:
The Company is the largest integrated producer of Carton Sealing Tapes in the country and having production facilities for making BOPP Adhesive Tapes with both Acrylic and Hot-Melt technology. It also has its own adhesive making facility along with facilities for making paper cores and cartons in-house, besides multiple printing equipments, slitting and spooling facilities to make many value added import substitute products for both the domestic and international markets. The Company also produces many types of specialty tapes like Filament Tapes, Carry Handle Tapes, Tear Tapes, Tamper evident Tapes and many more.
OPPORTUNITIES AND THREATS:
With the focus towards becoming a leading International supplier of its products and with our efforts in supporting the vision of the Honorable Prime Minister of India for “Atmanirbhar Bharat”, as also for Make in India and supply to the world, the Company has ample opportunities to utilize full capacities for production of Self Adhesive Tapes and be able to focus on building its Brand and Image as a quality supplier of Adhesive Coated Products globally.
Actual results could differ materially from those expressed or implied. Important factors that would make a difference to the Companys operations include economic conditions affecting demand- supply and price conditions in the markets in which the Companys operates, raw material availability and its prices, changes in the Governmental regulations, labour negotiations, tax laws and other statues and economic development within India.
RISKS & CONCERNS:
The Company is taking proactive steps in implementing management principles well adapted to the demands of the changing environment. The company has the policy of assessing the risk and managing the business. The company is operating on a well defined plan and strategy; hence we are equipped to face any change in regulatory risk.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:
The Company has a well placed proper and adequate internal control system commensurating with the size and nature of its business. The Board has appointed Internal Auditors to strengthen the internal control system.
The primary objective of the internal control system is to ensure that all its assets are safeguarded and protected and prevent any revenue leakage and losses to the Company. The Company has proper system of checking and/or review of functioning of the employees. The present reporting structure ensures independence of the internal audit function and embodies best corporate governance practices.
FINANCIAL PERFORMANCE:
Please refer Directors Report for financial performance of the company. Segment/product wise performance is not applicable to the company.
HUMAN RESOURCE DEVELOPMENT:
The company has focus to retain its manpower by providing good working conditions thereby reduce turnover ratio.
SIGNIFICANT FINANCIAL RATIO |
|||||
Name of the Ratio |
Formula | 2022-23 | 2021-22 | % change | Reason for change |
(a) Current Ratio |
Current Assets/Current Liabilities | 1.00 | 1.06 | (0.05) | Due to decrease in current Assets/Increase in Current Liability. |
(b) Debt-Equity Ratio |
Total debt/Shareholders Equity | 1.11 | 1.47 | (0.36) | Due to decrease in debts from internal accrual. |
(c) Debt Service Coverage Ratio |
Net Operating Income/ Debt Service | 0.92 | 1.51 | (0.58) | Due Decrease in operating revenue. |
(d) Return on Equity Ratio |
Net Income/ Shareholders Equity | 8.14 | 22.83 | (14.69) | Decrease in profit during the current year |
(e) Inventory turnover ratio |
COGS/Average Inventory | 4.98 | 9.48 | (4.50) | Slow Sales/More than sufficient Inventory |
(f) Trade Receivables turnover ratio |
Net credit Sales/ Ave. Trade Receivable | 8.78 | 11.30 | (2.52) | Due to reduction in operating revenue. |
(g) Trade payables turnover ratio |
Net credit purchase/ Ave. Trade payable | 13.67 | 11.70 | 1.97 | Due to better credit utilisation |
(h) Net capital turnover ratio |
Net Sales/Avg Working Capital | 102.59 | 52.41 | 50.17 | Due to reduction in operating revenue. |
(i) Net profit ratio |
Net profit/Total Revenue | 1.51 | 2.79 | (1.28) | Due to Decreased Turnover with reduced margin |
(j) Return on Capital employed |
EBIT/Capital Employed | 13.58 | 27.13 | (13.55) | Due to Decrease in Profit |
(k) Return on investment |
Income earn on Investment/ Value of the Investment | NA | NA | NA | NA |
DISCLOSURE OF ACCOUNTING TREATMENT:
In preparation of the financial statements, the applicable provisions of Companies Act, 2013, Indian Accounting Standards and other applicable Laws have been strictly adhere to. The Financial Statements of the Company along with the notes are further discussed in this Report
Madhusudan Bagla
Managing Director
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