adarsh plant protect ltd share price Management discussions

Global Economic Outlook

Global economy has returned to normal, after three years of pandemic and the start of 2023 has showed signs of recovery with China ending its Zero-Covid Policy, easing of inflation and energy prices and correcting commodity prices. However, the global economy continues to struggle various other macro factors like geopolitical issues, high inflation, rising rates, in stable financial sector etc. In a way, the world has witnessed a paradigm shift since Covid.

Your Company is continuously striving to give best services and products to its Customers and show best financial performance as well.

Economic Outlook - India

India became the fifth largest economy in the world, beating UK and France, with a GDP growth rated among the highest in the last decade. Reports suggest that primarily a domestic demand-driven economy, the countrys GDP is set to double over the next seven years, aided by several inherent demographic advantages and policy-led changes. India has now overtaken China to become the most populous country in the world. However, the positive aspect in this is the median age which is 28.4 years providing India the demographic advantage of young population.

Over the past few decades, the country has made considerable progress in terms of economic development, poverty reduction, and social welfare. As countrys per capita is increasing, India has become the hub of the largest middle class in the world, boding well for the overall consumption of the country. Another key demographic change working in favor of India is increasing participation of women workforce in the overall economic activities.

Performance for the period

The year started on positive note with COVID vaccination being a huge success normalising the supply of Raw material and Labor. This year your company has spent more on marketing activities to increase market penetration in the industrial packaging segment. Despite a good start to the year, political instability in various states has delayed certain government orders for the company. The period has performed better than the previous year and company is forecasting to continue the growth trajectory.

A. Industrial Packaging Segment

The Industrial packaging segment of your company is the major contributor to the revenue of the company. The number of units sold by the company has increased by ~20% Y-o-Y basis despite not much growth in absolute number due to volatility in price of steel. Increase in marketing spent and sales team has resulted in increase in number of customers which project a string growth for the coming year. The division has been net profitable at the end of the year

B. Agriculture and Plant Protection Segment

The agriculture and plant protection segment witnessed growth in sales compared to last year. The growth expected was much higher, but due to decreased rural spending orders in second half of the year slowed down. The margins were in line with the managements budget.

C. Smokeless Chulha / Ecostove

This segment has yet not performed up to its potential but the management is confident that it shall do well in the coming years. The year has seen minimal growth but has remained profitable.

Opportunities and Threat Industrial Packaging Segment


1. Growth in the Chemical and specialty sector.

2. Growth in Exports due to the governments push for increasing domestic production.

3. Adding new products in the product portfolio

4. Tapping new domestic markets.


1. Volatility in Steel prices

2. New entrants in the market

3. Substitute and alternative products

Agriculture and Plant Protection Segment


1. Innovation in Products.

2. Development of new sales and distribution channels.

3. Adoption of new Technologies


1. New entrants in the market

2. Substitute and alternative products.

3. Fluctuation in commodity prices.

4. Political Instability

Smokeless Chulha and Ecostove


1. Innovation in Business Model.

2. Export Market.

3. Development of new sales and distribution channels.


1. New entrants in the market.

2. Political Instability.

3. Government Regulations.


The Management of your company expects the year 2023-24 to have a similar growth trajectory as was seen in the previous year. Business have resumed to normalcy but macro economic concerns still concern the fluctuations in raw material prices. The management is confident to bring in growth in all 3 segments overcoming all the challenges coming their way.

Industrial Packaging Segment

The management has thoroughly discussed the possible risks and concerns to take appropriate countermeasures. The effort put in the last couple of years to increase the customer pool has given a long term revenue visibility which further helps in efficiently managing the overheads and working capital to increase the overall profitability of the company. The packaging industry is one of the growing industries in India as well as dynamic in nature. Your directors are conscious about the same and periodically reviews are done to adapt new strategies and plans for the same.

Agriculture and Plant Protection Segment

The Management is of the opinion that this segment shall see revival in the current year due to regular monsoon and increase in government spending on agriculture sector. In addition, increase in spending capacity, easy availability of funds and increase in disposable income can also lead to growth in this segment.

Smokeless Chulha and Ecostove

The Management has increase their focus on this segment by taking vital steps in terms of increasing marketing campaigns and create awareness of the product. Government channels and export channels, both are under penetrated for the product manufactured by the company. The company is positive on increasing sales in this segment with a string sustainable business


Risks and Concerns:

1. Availability of raw materials.

2. Fluctuation in price of raw materials.

3. Inconsistency of overhead cost such freight, electricity and labor.

4. Regulatory or political changes and their policies.

However, the Company plans to procure the raw materials and reduce the overhead cost so as to maximize profit. Your directors are now rigorously looking for measures to pursue all available infrastructural, manufacturing and financial resources to the fullest extent and in the best interest of the Shareholders of the Company.

Internal control systems and their adequacy

The Company has adequate internal control systems commensurate with its size. Internal Auditors of the Company is entrusted the work of reviewing adequacy of internal control system and frequency of Audit compliance with the existing Accounting Standards. The duty of the Internal Auditors is to report to the Board of Directors and Audit Committee and place its report at every Audit Committee Meeting and also remain present to interact with Board and Audit Committee for any suggestion of improvement in the Internal Control / Audit Systems and steps to be taken thereon to improve the internal control system. Also, from this year our Statutory Auditors scope also have expanded to Internal Financial Control and report on it forms part of this report.

Financial Performance with respect to Operational Performance

Share Capital: Share Capital of the Company is Rs. 991.15 Lakhs divided in 9911500 shares of Rs. 10/- each.

Net Worth: Net Worth of the Company is Rs. 97.58 lakhs Secured Loan: Secured Loan taken is Rs. 205.98 Lakhs.

Total Income: Total income this year is Rs. 1722.05 Lakhs as compared to Rs. 1714.08 Lakhs Last year.

Other Income: Other income this year is Rs. 1.76 Lakhs as compared to Rs. 2.57 Lakhs last year. Tax liability

Though Profit this year but your Company was in loss since last many years, your Company was not falling in to liability to pay taxes and this year too as there is large amount of carried forward losses your Company is not liable to pay any tax.

Material development in Human Resources

Mr. Ketan P. Maheshwari resigned as the CFO of the company in January 2023. Mr. Ashokbhai Padhiyar has been appointed as CFO since February 2023.

Disclosure of Accounting Treatment

Pursuant to the notification, issued by the Ministry of Corporate Affairs dated February 16, 2015 relating to the Companies (Indian Accounting Standard) Rules, 2015, The Company adopted Indian Accounting Standards (Ind AS) from 1st April, 2017 with the comparatives for the periods commencing from 1st April, 2016.

Cautionary Statement

The report of the Board of Directors, Management Discussions and Analysis Report are forward looking and affirmative statements within the meaning of the applicable securities and regulations. The actual performance in the coming years could differ from what is expressed or implied. The factors that could affect the Companys performance are the economic and other factors that affect the demand-supply balance in the domestic market, changes in governmental regulations, policies, and tax laws and other statues and host of other incidental factors.

By Order of the Board of Directors For Adarsh Plant Protect Limited

Place: Vitthal Udyognagar

Date: 29th April, 2023

Naishadkumar N. Patel
DIN: 00082749