<dhhead>MANAGEMENT DISCUSSION AND ANALYSIS REPORT </dhhead>
ANNEXURE II
INDUSTRY STRUCTURE AND DEVELOPMENT:
The company is in the manufacturing business of Chemicals. The Company has suffered heavy losses in the past few years due to hefty competition from China Market and has suspended its manufacturing activities as well. Due to which your Company could not do anything, but to wait for the market and other conditions to revive.
OPPORTUNITIES & THREATS:
Due to the heavy competition and hefty losses, the Company has stopped itsmanufacturing activities and closed its plant as well. The Company is now waiting for an opportunity to make good all the losses and restart its manufacturing activities.
SEGMENT WISE OPERATIONAL PERFORMANCE:
This reporting does not apply to the Company since your Company has revenues/losses coming from only one segment. The management of the Company is planning to come out of this situation.
OUTLOOK:
Your Company, keeping pace with the overall market scenario, has grown significantly inthe past years. However, the financial performance of the Company has been declining in the past financial years. The Management expects to improve the growth in the coming years, subject to the favorable market conditions, and stable economic policies.
RISKS AND CONCERNS:
All the promises which management is making depends on the strength of the shareholders and the confidence, which they have bestowed on the management. There were many complaints received by us from the shareholders, but the Company has now complied with all the compliances and all complaints of shareholders were solved.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has in place adequate internal control systems covering all its operations. Proper accounting records highlight the economy and efficiency of operations, safeguarding of assets against unauthorized use or losses, and the reliability of financial and operational information.
Some of the significant features of internal control system are:
• Financial and Commercial functions have been structured to provide adequate support and control of the business.
• The Risk Management policy has been adopted by the Company.
• The Company has an Internal Audit System conducted by the internal auditor of the Company. Standard operating procedures and guidelines are reviewed periodically to ensure adequate control.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
The company has incurred huge losses and financial liabilities, however is confident to come out of all the problems and will try to restart its manufacturing activities in the nearfuture.
HUMAN RESOURCES:
Your Company continuously endeavors to improve the work environment for its employees. Competitive compensation package, innovative and challenging environmentto work, transportation facilities, etc., are some of the steps taken by the Company for thewelfare of its employees.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
RESULTS OF OPERATIONS
1. Net Revenue from Operations:
(In Rupees)
Particulars |
FY 2022-23 |
FY 2021-22 |
Change |
% of Change |
Sale of Products & Other Operating Revenue |
Nil |
Nil |
Nil |
Nil |
2. Other Income
(In Rupees)
Particulars |
FY 2022-23 |
FY 2021-22 |
Change |
% of Change |
Other Income |
Nil |
nil |
Nil |
Nil |
3. Gross Profit
(In Rupees)
Particulars |
FY 2022-23 |
FY 2021-22 |
Change |
% of Change |
Revenue from Operations |
Nil |
Nil |
Nil |
Nil |
Less: Cost of Consumption |
ER>Nil |
Nil |
Nil |
Nil |
Gross Profit |
||||
Changes in Inventory |
Nil |
Nil |
Nil |
Nil |
4. Profit before Tax
(In Rupees)
Particulars |
FY 2022-23 |
FY 2021-22 |
Change |
% of Change |
Profit Before |
(5,99,716) |
(10,26,488) |
- |
- |
Tax |
5. Total Comprehensive Income (After Taxation) (In Rupees)
Particulars |
FY 2022-23 |
FY 2021-22 |
Change |
% of Change |
Total Comprehensive Income (After Taxation) |
(5,99,716) |
(10,26,488) |
- |
- |
Key Financial Ratios:
Sr. No Particulars of Ratio |
31.03.2023 |
31.03.2022 |
1. Debtors Turnover Ratio = Average Accounts Receivable/Net Credit Sales |
- |
- |
2. Inventory Turnover Ratio = Sales/Average Inventory |
- |
- |
3. Interest Coverage Ratio= EBIT/Interest Expense |
- |
- |
4. Current Ratio = Current Assets/Current Liabilities |
0.37 |
0.37 |
5. Debt Equity Ratio =Total Liabilities/Total share holders Equity |
0.02 |
0.02 |
6. Operating Profit Margin (%) |
- |
- |
7. Net Profit Margin (%) = Net income / sales |
- |
- |
Details pertaining to Net-worth of the Company: (In Rupees)
Particulars |
31.03.2023 |
31.03.2022 |
Net-worth |
(4,35,83,744) |
(4,29,84,028) |
CAUTIONARY STATEMENT:
Statements in the Management Discussion & Analysis Report describing the Company’s expectations, opinion, and predictions may please be considered as "forward looking statements" only. Actual results could differ from those expressed or implied. Company’s operations should be viewed in light of changes in market conditions, prices of raw materials, economic developments in the country and such other factors.
For Garodia Chemicals Limited
SD/-
Mahesh Garodia
Whole-time director
DIN: 01250816
Address: Namakwala, M. G. Road,
Ghatkopar (East), Mumbai-400077
Date: 30th May, 2023
Place: Mumbai
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www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.