Annexure D
Your Directors have pleasure in presenting the management discussion and analysis
report for the year ended on March 31, 2023.
INDIAN ECONOMY:
Post pandemic, Indian PU industry has been growing steadily thanks to rapid
urbanization, higher disposable incomes and flexible financing options. In the present
age, refrigerators, mattresses and similar life style goods have come to be considered as
essentials. PU is a preferred material in the coatings segment on account of its
superiority and other advantages over similar products. Thus, there has been major growth
in the demand, but the Indian market has been dominated by impozts. Indian PG market also
has all along been dominated by imports, except during the pandemic period.
During the year under review, for the most part, demand for Polyols and PG continued to
fluctuate, with imports reaching the pre-pandemic levels. Logistics issues have been
sorted out with ease of material availability at cheaper prices. Initially, downturn
started with higher inflation arising from the Russia-Ukraine stand-off, Chinas zero
covid policy, weakening rupee etc. Later on, with European countries fearing recession and
economic turmoil in Sri Lanka and other neighboring countries impacted heavily on our
pricing as more imports came into the market at cheaper prices and brought down our
margins considerably.
Advance Petrochemicals Limited being the only green petrochemical Company of its kind,
figures in the list of leading chemical manufacturers in the country Subsidiary Companies:
Nil
FINANCIAL RESULTS:
During the year under review, your company managed to achieve consolidated revenue of
Rs.37.18 Crores as against Rs. 28.02 Crores which is Increased by 24.64% as compared to
last year. Net profit after tax increased by 68.71 % to Rs. 94.43 Lacs as compared to
Rs.29.55 Lacs during the last year.
The entire net profit after tax of Rs. 94.43 lacs is proposed to be transferred to the
Statement of Profit & Loss in the form of Surplus of the Company.
The final product of the Company is used as raw material in many manufacturing
industries like automobile industries, paints, refineries and has evergreen demand. The
Company has continued its effort to tap the export market beside improving the market for
its product domestically also and popularizing its use.
PRODUCTS:
Advance Petrochemicals Limited is one of the leading manufacturers of Glycols, Ethylene
Oxide Derivatives, Amines, Anti Cooling Agents and Brake fluids. APL have also started the
range of surfactant for which it has increase manufacturing capacity of 780 Metric ton Per
Annual. The Ethylene Oxide Derivatives produced by the Company are used by diverse
industries like Textile, Agrochemicals, Detergents, Pharmaceuticals & Personal Care,
Oil Field and Automotive industry, paint & coating industry etc. Glycol Ether is used
in Paints, Pharma and Aviation fuel. Brake fluid and Anti-Freeze Coolant is used in
passenger and commercial vehicles. Amines are used in refineries.
PERFORMANCE OF PRODUCTS:
| Sr.no Products |
2022-2023 |
2021-2022 |
|
(In Quantity) |
(In Quantity) |
| 01 Brake Fluid |
19231 |
18791 |
| 02 Methyl Cellosolve |
826315 |
837836 |
| 03 Methyl Carbitol |
211770 |
176180 |
| 04 Butyl Cellosolve |
355827 |
139513 |
| 05 P.E.G. 4000 |
269725 |
179250 |
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Glycol Ether
Increasing demand from the automotive industry
Automotive parts are coated with paints and coatings to protect them from moisture,
abrasion, chemicals, and high temperature. Glycol ether-based solvents are used in paints
and coatings to improve their blush resistance, evaporation rate, solvent release,
solubility, and flow out and leveling properties. The demand for automotive paints and
coatings will grow among consumers who invest in maintaining their vehicles utmost
appearance.
The high growth of the automotive industry especially in APAC will fuel the demand of
automotive paints and coatings and consequently drive the growth of the glycol ethers
market at a CAGR of almost 5% during the forecast period.
Rising demand for cosmetics products
Glycol ethers are increasingly being used as a low-cost replacement of fatty acid
isopropyl esters and as a solvent for ingredients in cosmetics. The demand for cosmetic
skin care products is increasing because of factors such as rapid urbanization, the
growing popularity of social networks, growth of the upper middle class, and increasing
online beauty spending.
With the rising demand for cosmetics products, the demand for glycol ethers is also
expected to grow in the forthcoming years. Glycol ethers has also increase demand in agro
industries. It has jump it demand to double and it will be upward trend in future. Looking
to the some APL after plan to expand its capacity.
Market Dynamics
The report looks at factors such as the rising demand from the construction industry,
growing demand from emerging economies, and increasing demand from the automotive
industry. However, fluctuation in raw material cost, stringent regulations and policies,
and safe handling and transportation of glycol ethers may hamper the growth of the glycol
ethers industry over the forecast period.
Awards / Recognition:
Company has accredited ISO 9001-2001 in year 2001 & other certifications are in
progress. Advance Petrochemicals Ltd. products ate committed to create premium product
that offer superior performance without disturbing environment. Our fundamental aim is to
satisfy our customer with the best possible product & service to enjoy our work.
Internal Financial Controls And Their Adequacy, Risk Management
The Company has in place adequate internal financial controls commensurate with the
size, scale and complexity of its operations. The Company periodically discusses and
reviews at its Audit Committee and with its auditors the effectiveness of the internal
financial control measures implemented by the Company including with reference to the
Financial Statements of the Company.
The Company has a proper and adequate system of internal financial controls which
includes the policies and procedures for ensuring the orderly and efficient conduct of its
business, including adherence to Companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information.
The systems, procedures, checks and controls are routinely tested and certified by our
Statutory as wellas Internal Auditors. Moreover, Company continuously upgrades these
systems in line with best practices and standards on internal control systems and
procedures.
The Company has constituted a Risk Management Committee consisting of Directors and the
senior management personnel of the Company to monitor the Risk Management Plan, to
identify and mitigate the risk attached to the business of the Company.
Your Companys objective of risk management is to have a meaningful identification,
measurement, prioritization of risks or exposures to potential losses on a continual basis
through active participation of all members of the Company and accordingly establish
controls and procedures to build a visible & structured enterprise-wide tisk
management framework; reduce the tisk levels and mitigate their effects in the likelihood
of a risk event with an aim to protect our Company from harm; and have a contingency plan
to manage risks having high probability and high impact.
HUMAN RESOURCE/INDUSTRIAL RELATIONS
Company continues to focus on training its employees on a continuous basis both on the
job and through training program to face challenges in the business/industry. During the
year, industrial relations have been cordial. Total Number of Employees on Companys role
has been around 65 as on 31% March, 2023.
CAUTIONARY STATEMENT
The statement made in this report describing the Companys expectations and estimations
may be a forward looking statement within the meaning of applicable securities laws and
regulations. Actual results may differ from those expressed or implied in this report due
to thein fluence of external and internal factors which ate beyond the control of the
Company.
Annexure E
NOMINATION AND REMUNERATION POLICY
1 PREAMBLE
Pursuant to the Section 178 of the Companies Act, 2013 (hereinafter refer as “the
Act”) read with the rule 6 of the Companies (Meeting of the Board and its
powers)Rules, 2014 and Regulation 19 of the SEBI(listing Obligations and Disclosures
Requirements) Regulations,2015 signed by the Company with the Stock Exchanges, The
Nomination and Remuneration committee of the Board of the Company has formulated a
remuneration policy to decide the criteria for the appointment and for the remuneration to
the Directors, key managerial personnel and other employees.
OBJECTIVE
1. To guide the Board in relation to appointment and removal of Directors, Key
Managerial Personnel and Senior Management
ii. To evaluate the performance of the members of the Board and provide necessary
report to the Board for further evaluation of the Board
iii. To recommend to the Board on Remuneration payable to the Directors, Key Managerial
Personnel and Senior Management.
iv. To provide to Key Managerial Personnel and Senior Management reward linked directly
to their effort, performance, dedication and achievement relating to the Companys
operations
v. To retain, motivate and promote talent and to ensure long term sustainability of
talented managerial persons and create competitive advantage
. vi. To devise a policy on Board diversity.
vii. To develop a succession plan for the Board and to regularly review the plan
CONSTITUTION OF NOMINATION AND REMUNERATION COMMITTEE:
The Board has constituted the “Nomination and Remuneration Committee” of the
Board which is in line with the requirement under the Companies Act, 2013. The Board has
authority to reconstitute this Committee from time to time. The Committee shall, while
formulating the policy ensure that:
• the level and composition of remuneration is reasonable and sufficient to
attract, retain and motivate the Whole time Directors, Key Managerial personnel and Senior
executives of the quality required to run the Company efficiently;
• relationship of remuneration to performance is clear and meets appropriate
performance benchmarks; and
• Remuneration to Whole time Directors, Key Managerial Personnel and senior
management involves a balance between fixed and variables pay reflecting short and long
term performance objectives appropriate to the working of the company and its goals.
The meeting of the Committee shall be held at such regular intervals as may be
required. Necessary disclosures of this policy shall be made in the Annual Report of the
Company in terms of Section 178 of the Companies Act, 2013 and Regulation 19 of SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015.
4. CRITERIA FOR BOARD MEMBERSHIP AND BOARD DIVERSITY
a) The Director must have relevant experience in Finance /Law /Management/ Sales/
Marketing/ Administration/ Corporate Governance/ Human Resources or the other disciplines
related to Companys business.
b) The Director should possess the highest personal and professional ethics, integrity
and values
c) The Director shall not have any material interest with the Company or any of its
officers, other than as a director or shareholder of the Company. Wherever required the
Director should disclose the nature of his interest, if there are reasons to believe there
is or a likely hood of potential conflict of interest.
5. REMUNERATION CRITERIA:
The Policy is largely based on industry benchmarks, the Companys performance vis-
a-vis the industry, peer group comparison, factors like inflation rate in the country and
performance of the employees.
a) For the Whole Time Directors/ Executive Directors:
• Nomination and Remuneration Committee shall recommend to the Board, the
remuneration, within the maximum limits as set under the Companies Act, 2013, and Rules
made there under and subject to the approval of the shareholders as and where applicable.
• Remuneration to whole time director/Executive Director would also depend on the
performance and profitability of the company during the year as decided by Nomination and
Remuneration committee from time to time. However, no remuneration or any other payments
are made to any directors of the company and hence company does not require to have
criteria for the same.
b) For the Key Managerial Personnel and Other Employees:
• The remuneration of other KMP and other employees largely consists of basic
salary, perquisites, and allowances (both fixed and variable). Perquisites ate paid
according to the Company policy.
• The components of the total remuneration vary for different grades and are
governed by the industry pattern, qualification & experience/merits, performance of
each employee. The Company while deciding the remuneration package takes into
consideration current employment scenario.
6. POLICY REVIEW & FUTURE AMENDMENT
This policy shall remain in force unless modified by the Remuneration committee.
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