padmanabh alloys polymers ltd Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

(a) Industry Structure and Developments:

Padmanabh is a public limited company established in 1994 for manufacturing filled and reinforced thermoplastic compounds and master batches. Company manufactures mineral filled thermoplastic, mineral master batches, synthetic paper master batches, glass reinforced thermoplastic and other specialty master batches.

Company also offers special additive master batches to enable plastic processors themselves to create tailor made products. All our products have varied applications in one form or other they will make their appearance in every household, automobile, offices, practically everywhere. Naturally, the demand for these products is always on higher side. Company is supported by a well equipped quality control laboratory and a very advanced research & development section. Company also produces tailor made products as per specifications given by customer.

(b) Opportunities and Threats:

Opportunities:

1. Increase in demand across the country for high quality premium products.

2. Large and potential domestic and international market. Promising export potential.

Threats:

1. Pricing pressure.

2. Enhanced competition.

3. Rising production cost from increasing wages, power and interest cost.

(c) Segment-Wise or Product-Wise Performance:

Company operates in single segment and segment wise reporting is not applicable, Product -wise performance is expected to improve.

(d) Outlook:

The Company shall continue to explore the possibilities of expansion based on availability of resources and opportunity.

(e) Risks and Concerns:

Risk is an inherent part of any business. There are various types of risks, that threat the existence of a company like Strategic Risk, Business Risk, Finance Risk, Environment Risk, Personnel Risk, Operational Risk, Reputation Risk, Regulatory Risk, Technology Risk, Political Risk etc. Your company aims at enhancing and maximizing shareholders value by achieving appropriate trade -off between risk & returns.

(f) Internal Control Systems and their Adequacy:

The company has adequate internal control systems and is in process of further strengthening the existing internal control systems. The financial statements are reviewed periodically by the management. The company has set up an internal Audit trail whereby deviations, if any, can be brought to the notice of the management quickly and remedial actions are initiated immediately.

(g) Performance Analysis:

Particulars	As on 31/03/2023	As on 31/03/2022
	(Amount in Thousands)
Turnover and other income	414994.00	289826.00
Finance Cost	3836.00	2888.00
Depreciation and Amortisation Expense	1368.00	1460.00
Profit /Loss(-) Before Tax for the year	3931.00	713.00
Net Profit /Loss(-) After Tax for the year	2603.00	281.00

(h) Material developments in Human Resources / Industrial Relations front, including number of people employed:

The industrial relations remained cordial throughout the year. The employees of the company have extended a very productive co-operation in the efforts of the management to carry the company the greater heights. Continuous training down the line is a normal feature in the company to upgrade the skills and knowledge of the employees and workmen of the company.

(i) Key Financial Ratios:

(i) Debtors Turnover: Debtors Turnover Ratio for the year ended 31/03/2023 is 3.96 and for the year ended 31/03/2022 is 2.59. Debtors Turnover Ratio has improved on account of efficient collection of funds.

(ii) Inventory Turnover: Inventory Turnover Ratio for the year ended 31/03/2023 is 8.40 and for the year ended 31/03/2022 is 7.12.

(iii) DSCR Ratio: For the year ended 31/03/2023 is 2.48 and for the year ended 31/03/2022 is 1.80. DSCR Ratio has improved due to increased profitability during the year as compared to previous year.

(iv) Current Ratio: Current Ratio for the year ended as on 31/03/2023 is 1.66 and for the year ended as on 31/03/2022 is 1.67.

(v) Debt Equity Ratio: Debt Equity Ratio for the year ended as on 31/03/2023 is 1.21 and for the year ended as on 31/03/2022 is 1.19.

(vi) Gross Profit Margin: Gross Profit Margin for the year ended as on 31/03/2023 is 16.25% and for the year ended as on 31/03/2022 is 15.68%.

(vii) Net Profit Ratio: Net Profit Ratio for the year ended as on 31/03/2023 is 0.63% and for the year ended as on 31/03/2022 is 0.10%. Net Profit Ratio has increased due to increased profit and increased turnover.

(viii) Details of any change in Net Worth as compared to the immediately previous financial year:

Net worth of the company during the year ended 31/03/2023 is Rs.82,57,9000/ whereas during the year ended as on 31/03/2022 Net worth was Rs.79,97,9000/-

Return on Capital Employed for the year ended as on 31/03/2023 is 6.20% and for the year ended as on 31/03/2022 is 2.80%. Return on Capital Employed Ratio has improved due to increased profitability during the year as compared to previous year.

Disclosure of Accounting Treatment:

Financial statements have been prepared in accordance with applicable Accounting Standards, hence Para B (2) of Schedule V of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 is not applicable to the company.

C. Corporate Governance Report: Pursuant to Regulation 15(2) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the provision of Para C of Schedule V of SEBI (LODR) relating to Corporate Governance Report is not applicable to the company.

D. Declaration signed by the chief executive officer stating that the members of board of directors and senior management personnel have affirmed compliance with the code of conduct of board of directors and senior management: Pursuant to Regulation 15(2) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the provision of Para D of Schedule V of SEBI (LODR) relating to Declaration by CEO is not applicable to the company.

E. Compliance certificate from either the auditors or practicing company secretaries regarding compliance of conditions of corporate governance shall be annexed with the directors report: Pursuant to Regulation 15(2) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the provision of Para E of Schedule V of SEBI (LODR) relating to Compliance Certificate is not applicable to the company.

F. Disclosures with respect to demat suspense account/unclaimed suspense account: Nil

	By Order of the Board
	For Padmanabh Alloys & Polymers Limited
	sd/-
	Chetankumar Mohanbhai Desai
Place: Surat	Chairman and Whole time director
Date: 24/08/2023	(DIN: 00051541)