natura hue chem ltd Management discussions

FORWARD- LOOKING STATEMENT

This report contains forward-looking statements based on certain assumptions and expectations of future events. The Company, therefore, cannot guarantee that these assumptions and expectations are accurate or will be realized. The Companys actual results, performance or achievements can thus differ materially from those projected in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify, or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

BUSINESS OVERVIEW

The total income including other income amounted to Rs. 4.75 Lakhs as against expenses of Rs. 21.17 Lakhs. Due to non-favorable conditions and impact of pandemic, the business of the company declined. Company has reported a net loss of Rs. 16.51 lakhs as compared to Rs. 1.69 Lakhs. Your directors are trying to ascertain new opportunities so that the business can be diversified and company as well as stakeholders be in better position barring any unforeseen circumstances.

SEGMENT WISE REPORTING

During the year under review, Company has operated through a single segment i.e. “Management Consultancy Services” only.

MARKETING

The Company is making all efforts to revamp its marketing in new areas and hopes for good results in the current year.

SWOT

Our strength is our determination, weakness is the low equity base, opportunities are multiples and threats are practically none.

RISK AND CONCERNS

In any business, risks and prospects are inseparable. As a responsible management, the Companys principal endeavor is to maximize returns. The Company continues to take all steps necessary to minimize losses through detailed studies and interaction with experts.

INTERNAL CONTROL

The Company has an internal control system, commensurate with the size of its operations, adequate records and documents were maintained as required by laws. The Companys Audit Committee reviewed the internal control system. All efforts are being made to make the internal control system more effective.

The financial highlights are as undents. In Lakhs)

PARTICULARS	31st March, 2023
Operating Income	4.75
Other Income	0.00
Total Receipts:	4.75
Total Expenses	21.17
Profit/Loss Before Tax:	(16.42)
Tax Expenses	0.10
Profit/Loss for the year:	(16.51)
Earnings Per Share (in Rs.)	1.77

INDUSTRIAL RELATIONS

There is no change in nature of the business of the company. There are no regular employees employed with the company. The Management of the Company is cordial with each other and terms of company in the industry remain cordial with other players on the market.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS

The Key financial ratios are given below. Further details of the significant changes in the ratios i.e. change of 25% or more as compared to the immediately preceding financial are given below:

Ratio

Numerator

Denominator

F.Y. 22-23

F.Y. 21-22

% Change

Reasons (if variance is more than 25%)

Current Ratio

Current assets

Current liabilities

0.32

0.20

59.19

Increase in Current ratio

due to decrease in current liabilities during the year.

Debt Equity Ratio

Total debt

Shareholders equity

0.02

0.42

(94.33]

Decrease in Debt equity ratio as company has repaid its debts.

Debt service Coverage Ratio

Earning for debt service

Debt service

NA

NA

NA

NA

Return on Equity

Profit after tax

Average shareholder equity

(1.65%]

(0.18%)

838.88

Decrease in ROE is because of decrease in net income during the current financial year.

Inventory turnover ratio

Revenue from operation

Average Inventory

NA

NA

NA

NA

Trade receivable turnover ratio

Net credit sales

Average trade receivables

0.036

0.044

(19.14]

NA

Trade payable turnover ratio

Net credit Purchases

Average trade payables

NA

NA

NA

NA

Net capital turnover ratio

Net sales

Working Capital

0.005

0.014

(66.86]

Net capital turnover ratio has decreased due to decrease in turnover.

Net Profit Ratio

Net Profit

Total Revenue

-347.61%

-12.71%

2634.95

Decrease in NP Ratio is because of decrease in

net profit during the current financial year.

Return on Capital Employed

Earnings before interest & tax (EBIT]

Average Capital Employed

-1.54%

-0.29%

436.40

Decline in ROCE is because of decrease in net income during the current financial year.

Return on Investment

Net Profit

Average of Cost of the Total Investment in Balance Sheet (Average T otal Assets]

-1.31%

-0.12%

1023.74

Decline in ROI is because of decline in net profit during the current financial year.

Interest Coverage Ratio

Earning for interest service

Interest service

NA

NA

NA

NA

Operating Profit Margin

Operating Profit

Revenue from Operations

(345.60%)

(149.74%)

130.80

Decline in Op. Profit margin is because of decrease in net profit during the current financial year