The Management of Lexus Granito (India) Limited Presenting Management
Discussion and Analysis Report covering the operational and financial performance of the
company for the year 2022-23, the core business of the company is manufacturing, trading
and marketing of vitrified ceramic tiles and wall tiles.
BUSINESS OVERVIEW
Our Company is promoted and managed by Anilkumar Babulal Detroja,
Hitesh Babulal Detroja, Nilesh Babubhai Detroja and Pavan Blackrock Private Limited. Our
individual promoters manage and control the major affairs of our business operations.
Our Company is engaged in manufacturing, trading and marketing of
vitrified ceramic tiles and wall tiles for the domestic and international markets. Our
manufacturing facility is situated at Morbi, Gujarat and is spread over more than 4
hectares. Our manufacturing facility is well equipped with requisite plant and machineries
and other facilities. We also have an in-house laboratory, enabling the company to develop
new colors, besides facilitating conducting of tests and analysis of various products. Our
quality system with respect to manufacture of our products has been ISO 9001:2008
certified. Further we have also been issued Certificate of Compliance by UK Certification
& Inspection Ltd for our quality systems covering the design, manufacture and final
inspection of the products. We manufacture and market our products under the brand name
-LEXUS.
During the financial year 2022-23, the total revenue was Rs. 10206.89
Lakhs as compared to Rs. 14,958.06 Lakhs in the previous financial year 2021-22. The
Company has incurred a loss after tax of Rs. 1182.76 Lakhs as compared to the previous
financial year profit after tax of Rs. 1157.65 Lakhs.
The significance of surge in natural gas price cannot be understated as
it is used in the production process of tiles. The increase in gas price had a negative
impact on the overall growth of the company leading to loss in the financial year ending
2022-23.
Your management is striving hard to address all the issues coming in
the company and is confident that new strategies now being pursued by the company to focus
on low cost tiles is appropriate for achieving the desired result. Your company is hopeful
for the much better performance in the current financial year.
Our Company has been operating in both domestic and international
markets. Our revenue from domestic and export operations contributed 66.13% and 33.87%
respectively of our total revenue from operations for the year ended March 31, 2023.
During FY 2022-23, we exported our products to various countries such
as Benin, Canada, Dubai, Guatemala, Hong Kong, Israel, Kenya, Libya, Mauritius, Portugal,
Qatar, Republic of Kosovo, Saudi Arabia, Taiwan, Thailand, UAE, UK, Sultanate of Oman,
United States of America, Uzbekistan, Yemen etc. We intend to continue to mark a presence
in global markets in our industry by supplying innovative products at competitive prices.
For marketing of our products, we have a dedicated marketing team who
continuously interacts with customers and evaluate the market dynamics. We have also set
up a corporate office at Morbi for marketing our products. Our customers are mostly
importers, distributors, dealers and project fabricators. We also cater to retail users as
per their requirement.
OPPORTUNITIES
The Company has carved a niche for itself in the industrial shoe/
uppers segment both internationally and in the domestic market. The quality of the
Companys products and services provided is well recognized. Embarking on this strength we
are constantly working towards expanding the market for Companys products to other
countries apart from our present work areas.
THREATS
(i) Growing unorganized sectors
(ii) Shortage of resources
RISK & CONCERNS
To sustain and grow in global market one must be ready for some level
of uncertainty. Greater the uncertainty, higher the risk. The risk management function is
integral to the Company and its objectives include ensuring that critical risks are
identified, continuously monitored and managed effectively in order to protect the
Companys business. The Company operates in an environment which is affected by various
factors some of which are controllable while some are outside the control of the company.
The
Company proactively takes reasonable steps to identify and monitor the
risk and makes efforts to mitigate significant risks that may affect it. Some of the risks
that are potentially significant in nature and need careful monitoring are listed here
under:
- Macroeconomic Factors
- Political Factors
- Changes in government policy and legislation
- Raw Material Price Increase
- Foreign Exchange Fluctuation
INTERNAL CONTROL SYSTEM AND ADEQUACY
The Company has a well-established and comprehensive internal control
system. Documents, policies and authorization comply with the level of responsibility and
standard operating procedures specific to the respective businesses. Observation made in
internal audit reports on business processes, systems, procedures and internal control and
implementation status of recommended remedial measures by Internal Auditors are regularly
presented to and reviewed by the Audit Committee of the Board. The system of internal
control is being improved to ensure that all assets are safe and protected against loss
from unauthorized use or disposition, and that all transactions are authorized, recorded
and reported correctly. The Company regularly conducts internal check, using external and
internal resources to monitor the effectiveness of internal control in the organization.
It strictly adheres to corporate policy with respect to financial reporting and budgeting
functions. The Audit Committee of the Board of Directors deals with significant control
issues and instructs further areas to be covered.
FINANCIAL PERFORMANCE
The summarized financial performance of the Company as compared to last
year is shown as under:
ALIGN=RIGHT>6.03
| Particulars |
2022-23 |
2021-22 |
% change |
| Revenue from operations |
Rs. 1,0097.75 |
Rs. 1,3872.67 |
-27.21 |
| Other Income |
Rs. 109.15 |
Rs. 1085.39 |
-89.94 |
| Profit before tax |
Rs. (1156.95) |
Rs. 1073.55 |
-207.77 |
| Net Profit after tax |
Rs. (1182.76) |
Rs. 1157.65 |
-202.17 |
| Payment of Dividend (including Interim and DDT) |
- |
- |
- |
| EPS |
-6.16 |
-202.16 |
| Current Ratio |
1.21 |
0.97 |
24.74% |
| Debt Equity Ratio |
3.41 |
1.84 |
85.33% |
| Debt Service Coverage Ratio (in times) |
0.58 |
0.72 |
-66.28% |
| Return on Equity Ratio |
-0.58 |
0.36 |
-261.11 |
| Inventory Turnover Ratio (in days) |
1.40 |
2.01 |
-30.35% |
| Trade Receivables Turnover Ratio |
4.16 |
4.65 |
-10.53% |
| Trade Payables Turnover Ratio |
1.85 |
2.70 |
-31.48% |
| Net Capital Turnover Ratio |
4.96 |
4.32 |
14.81% |
| Net Profit Ratio |
-0.12 |
-0.08 |
-250% |
| Return on Capital Employed |
-0.58 |
0.36 |
-261.11 |
| Return on Investments |
-0.40 |
0.52 |
-176.92% |
Reason for variance more than 25%
Debt Equity ratio (in %)
In current financial year secured loans has increased as compared to
previous year. Further total net worth is decreased as compared to previous year due to
company has been incurred losses in current financial year.
Debt Service Coverage ratio
It decreased primarily due to the company has been earned losses in the
current financial year.
Return on Equity ratio
It decreased due to company has been earned losses during the year
therefore net worth also decreased simultaneously.
Inventory Turnover ratio
Purchase of raw material and stock in trade are decreased as compared
to previous year.
Trade Payables Turnover Ratio
Purchase of raw material and stock in trade are decreased as compared
to previous year.
Net Profit ratio
It decreased primarily due to the company has been earned losses in the
current financial year.
Return on Capital Employed
It decreased primarily due to the company has been earned losses in the
current financial year.
Return on Investments
It decreased tremendously mainly on account of losses earned of Rs.
1178.36 lakhs in FY 2022-23 as compared to profit of Rs. 1169.34 Lakhs earned in FY
2021-22 which has decreased the networth of the company.
HUMAN RESOURCE
Human resource remains a valuable asset of our business. The Company
continues to lay emphasis on attracting and retaining talent. Personnel developmental
initiatives including training, both technical and managerial, are regularly conducted to
enhance human potential. As on 31st March, 2023 the Company has 60 employees.
The Company recognizes that its employees are its principal assets and that its continued
growth is dependent upon the ability to attract and retain quality people. The company has
established a full-fledged Human Resources Department, which is entrusted with the
responsibility of retaining and developing the skills of all its employees. The Company
also recognizes the importance of providing training and development opportunities to its
people to enhance their skills and experiences, which in turn enables the Company to
achieve its business objectives. The industrial relations in all units of the company
continue to be cordial.
HEALTH, SAFETY AND ENVIRONMENT PROTECTION
Companys Health and Safety policy commits to comply with
applicable Legal and other requirements connected with occupational Health, Safety and
Environment matters and provide a healthy and safe work environment to all employees of
the Company.
FORWARD LOOKING STATEMENT
The success of our business depends substantially on our ability to
implement our business strategies effectively. Company is planning to expand its
operations in the domestic tiles market of India by appointing its dealers throughout in
India. The company also planning to acquire other business involved in the same line of
business activity. This will result in increasing the market capturing of the company and
will also increase the turnover and as a result the profits of the Company.
OCCUPATIONAL HEALTH, SAFETY, AND ENVIRONMENT
The emphasis on Occupational Health, Safety and Environment continues
at all of the operations of the Company throughout India. The Company is committed to the
best standards in safety and continuously monitors matters related to this.
CORPORATE SOCIAL RESPONSIBILITY
As per the Criteria of Section 135 of Companies act, 2013, the board is
required to constitute a corporate social responsibility committee of members, who will
manage the CSR activities applicable on the company to be undertaken by the company as
specified in Schedule VII to the Companies Act, 2013 and duly approved by the board as
well as fix the amount of expenditure to be incurred on the activities and monitor the CSR
policy from time to time. Our company constituted the CSR Committee for undertaking the
CSR activities as per the provisions of Companies Act, 2013 and SEBI (LODR), 2015.
However during the year under review FY 2021-22, the company is not
falling under the criteria for fulfilling the CSR activities this year.
The company has not incurred any sum on CSR activities during the year
under review.
CAUTIONARY STATEMENT
Statements in the Management Discussions and Analysis report describing
the Companys objectives, projects estimate, expectations or predictions may be forward
looking statements within the meaning of applicable security laws and regulations. Actual
results could differ materially from those expressed or implied. Important factors that
could make a difference to the companys operations include economic conditions affecting
demand and supply and price conditions in domestic and overseas market in which the
company operates, changes in Government regulations, tax regimes, economic developments
within India and the countries in which the Company conducts business and other incidental
factor.
| Sd/- |
| AnilKumar Babulal Detroja |
| (Chairman and Managing Director) |
| (DIN: 03078203) |
| Place: Morbi |
| Date: 26.08.2023 |
+91-9892691696
