gagan gases ltd Management discussions

I) INDUSTRY STRUCTURE AND DEVELOPMENTS

Indian LPG industry is dominated by PSU companies. 90% demand of LPG comes from domestic segment which is catered by PSU companies.

II) OPPORTUNITIES AND THREATS

The domestic LPG provided by PSU companies is subsidized by the Govt of India and private sector is not entitled for the same. Besides company sees major threat from PNG as alternate fuel.

III) SEGMENT-WISE REVIEW

The company operates LPG bottling plant in Pithampur, Distt Dhar in the private sector and markets LPG in 17 / 21 / 33 kg cylinders. The company is also engaged in providing LPG Bottling assistance to Reliance and Aegis Gas.

IV) OUTLOOK

The commercial and Industrial LPG consumption is likely to increase with the growing economic activities in the country.

V) RISKS AND CONCERNS

The company does not foresee major risks besides PNG as alternate fuel.

VI) INTERNAL CONTROL SYSTEM

The Company has developed internal control systems to conduct its business within the framework of Regulations which are adequate and commensurate to the size of operations of your company.

VII) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The operation activities of the company are LPG Bottling and selling LPG for Commercial & Industrial use. The company has earned Net Profit of Rs 187 lac as against profit of Rs. 6 lac during previous year. The accumulated losses as on 31.3.23 are Rs 153 lacs as against Rs 340 lac of last year. The accumulated losses are on account of losses incurred in LPG business.

VIII) MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS

The employee strength of the company is adequate. The company has put in adequate processes, facilities, infrastructure and environment enabling the employees to function in an appropriate manner.

IX) DISCLOSURE OF ACCOUNTING TREATMENT

Your company follows Accounting Standards as prescribed by Institute of Chartered Accountants of India (ICAI) for preparation of financial statements.

X) STATUTORY COMPLIANCE

Your company ensures compliance with provisions of Company Law, SEBI and other corporate laws applicable to the Company.