The contents of the report discuss in detail about the operations of the company containing director’s report, management discussion and analysis, independent auditor’s report and financial statements for every financial year with relevant information as per the format prescribed by the authorities such as ministry of corporate affairs for the information of shareholders. The soft copy of the annual report is displayed in the company’s website www.thangamayil.com every year for the convenience of the shareholders.
Soft copy of annual report along with notice to the share holders are mailed to all the shareholders whose mail id is available with us and hard copies are posted to those who have not furnished their e-mail id’s
Plan for near future
The company proposes to open 5 showrooms in the financial year 2020-2021 and depending upon the circumstances the company would take appropriate decision in each financial year as per the existing scenario in the industry and subject to government regulations. The board will review the situation and based on available data and other relevant information the operational developments and the business improvement decisions and decide about the expansion and other related activities of the company
Shift of business from unorganized sectors to organized players
Due to the implementation of strict regulatory rules by various Government Authorities including lenders the shift of business from unorganized to organized set up would significantly improve in the forthcoming years. Due to our initiatives to broad base the size of the outlets and also by increased inventory stocking we are confident that the turnover would improve eventually. Moreover mandatory requirement of hallmarking for gold ornaments is likely to be advantageous for the organized sector.
a) Supporting the momentum by deploying relevant strategies in improving the EBITDA (Earnings before Interest, taxes, depreciation and amortization) in absolute quantum.
b) To improve the risk weighted Return on Equity (ROE) by exploring Operating leverage existing in the company.
c) Establishing a strong risk mitigating business model particularly with reference to management of wide fluctuations in gold price movement
d) State of art information technology automation and concurrent review for adoption via Data Analysis.
e) Establish a flexible working capital system and align it with business realities.
f) Develop an Asset less model for further expansion in a calibrated manner with a view to adopt effectively the success of the existing model blends both operation and expansion strategies.
g) Modest leverage on financial front that would ensure a self liquidation model not affecting the core fundamentals of existing financial system.
h) Liberal allocation of capital to shareholders via improved distribution of dividend payouts.
i) Except for unforeseen circumstances the management is confident of performing in the areas prioritized.
FINANCIAL CONDITION OVERVIEW
The financial statements have been prepared in compliance with the requirements of the Companies Act and the generally adopted Indian Accounting Principles (GAAP) and the Accounting Standards notified by the Companies (Accounting Standard) Rules, 2006.
1) Equity Share Capital
The issued, subscribed and paid up capital as at March 31, 2021 stood at Rs.1,371.96 lakhs. There was no fresh infusion of capital during the year.
2) Other Equity
Other Equity stood at Rs.28,420 lakhs as against Rs.20,643 lakhs in the previous year.
3) Property, Plant and Equipment and Intangible Assets
During the year, we capitalized Rs.561 Lakhs to our gross block comprising of Rs.479 lakhs for Plant & Machinery, Furniture & Fittings and other assets and balance of Rs.82 lakhs for Computer Equipments including Software.
Inventories amounted to Rs.64,923 lakhs as at 31st March 2021 as against Rs.56,393 lakhs as at the previous year end.
5) Trade Receivables
Trade Receivables amounted to Rs.258 lakhs as at 31st March 2021 as against Rs.13 lakhs as at 31st March 2020.
6) Cash and Cash Equivalents
Cash and bank balances with banks amounts to Rs.1,030 lakhs as against Rs.199 lakhs in the previous year.
7) Bank Balance other than cash and cash equivalents
Bank balance other than Cash and cash equivalents with banks amounts to Rs.663 lakhs as against Rs.2,940 lakhs in the previous year. The decrease is on account of reduction of gold metal facilities against fixed deposits.
8) Other Current Assets(Net)
Other current assets including advance to suppliers and margin money paid to hedging purpose amounting to Rs.1,300 lakhs as against Rs. 2,612 lakhs in the previous year.
9) Current Liabilities
Current liabilities excluding provisions amounting to Rs.40,686 lakhs ( previous year Rs.43,147 lakhs) includes secured loan from banks, Current Maturities on long term loans and Trade creditors for raw materials and creditors for advertising and promotion spends, packing materials, advance received from customers and creditors for capital purchases.
10) Working Capital
The Company has a Working Capital (including cash and bank balances) of Rs.27,541 lakhs as at 31st March 2021 as against Rs.19,059 lakhs as at 31st March 2020. The increase in working capital is on account of internal accruals.
11) Debt Equity Ratio
Your Company has got Average Net Debt Equity ratio of 1.54 as at 31.3.2021 as against 2.11 as at 31.03.2020.
12) Current Ratio
Your Company is having current ratio 1:1.68 as at 31.3.2021 as against 1:1.44 as at 31.03.2020
13) Interest Coverage Ratio
Your Company is having interest coverage of 6.52 times as at 31.3.2021 as against 4.76 times as on 31.03.2020.
14) Inventory Turnover Ratio
Your Company has got inventory turnover ratio of 2.80 times as at 31.3.2021 as against 3.00 times as at 31.03.2020.