Royal Cush. Vin. Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT:

The Company is primarily engaged in business of manufacturing and selling of PVC products which includes PVC floor covering and PVC Leathercloth, which are widely used for household, offices, shops, health club, Automobiles etc. The Company has developed various new products.

OPPORTUNITIES AND THREATS:

With introduction of new products, various productivity improvement initiatives and improved manufacturing processes, the performance of the Company will improve in the following years. Further many new players has entered into the market which are giving stiff competition.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE:

The Company engaged only in one segment i.e. PVC products

OUTLOOK:

With the introduction of high value added products, the Company is optimistic about growth in the coming years.

RISKS & CONCERNS:

Due to shortage of working capital, the operations are not improved. The Company is focusing on shifting the product mix towards the high end product and quick sales realization.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has a well-framed internal control system commensurate with the size and nature of its business. These internal controls ensure safeguarding of assets from unauthorised use or disposition, proper recording and reporting of all transactions and compliance with applicable regulatory requirements. The internal control systems are reviewed and modified continually to keep up with the changes in business environment and statutory requirements. The framework is monitored by the internal audit team of the Company. The Audit Committee of the Board is periodically apprised of the internal audit findings. The Audit Committee reviews the efficacy and effectiveness of the internal control system, takes corrective actions and suggests measures for strengthening it. The finance function of the company is also adequately staffed with qualified and experienced personnel.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

To achieve its business and financial objectives, the Company focuses on initiatives to drive growth. The Company seeks to capture significant opportunities for growth by identifying and meeting consumer needs within its core categories.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCE/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED.

The Company places special emphasis on the human resources function in the organization and building strong relationship and establishing its brand in the market to attract and retain best talent. The Company consistently engages with employee to receive their feedback through group discussions etc. Based on the feedback, several positive changes are introduced in practice to provide a holistic experience. The total number of employees as on 31st March, 2023 stood at 126 .

CAUTIONARY STATEMENT:

Statements in this report describing the Companys objectives, projections, estimates and expectations may constitute "forward looking statements" within the meaning of applicable laws and regulations that involve risks and uncertainties.

Such statements represent the intention of the Management and the efforts being put into place by them to achieve certain goals. Actual results might differ materially from those either expressed or implied in the statement depending on the circumstances. Therefore, the investors are requested to make their own independent assessments and judgments by considering all relevant factors before making any investment decision.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

Key Financial Ratios	March 31,2023			March 31,2022
Current ratio	0.39			0.34
Debt equity ratio	-1.07			-1.09
Debt Service Coverage ratio	-2.00			-2.13
Return on Equity Ratio	-0.05			-0.04
Inventory turnover ratio	6.49			6.29
Trade receivable turnover ratio	20.71			22.05
Trade payable ratio		0.92	0.88
Net Capital Turnover ratio		-1.50	-1.22
Net profit ratio		0.37%	-22.83%
Return on Capital employed		13.75%	-36.37%
Return on investment		1.18%	3.87%