Introduction:
The Management Discussion and Analysis Report has been prepared in accordance with the
provisions of Regulation 34 (2) (e) of SEBI Listing Regulations, read with Schedule V (B)
thereto, with a view to provide an analysis of the business and financial statement of the
Company for FY 2022-2023 and should be read in conjunction with the respective financial
statements and notes thereon.
a) Economic Overview:
Global Economy: The global economy remains in a perilous condition led by after effects
of the pandemic, continued geopolitical tensions, and the sharp tightening of monetary
policy to contain high inflation. After growing 3.4% in 2022, the global economy is set to
slow in 2023, to 2.8%. Post this a tepid recovery is expected in 2024, to 3%. Tight global
financial conditions and subdued external demand are expected to weigh on growth across
emerging markets and developing economies. Inflationary pressures persist, resulting in
tight monetary control by most central banks which in turn is expected to weigh
substantially on economic activity.
Recent banking sector stress in advanced economies is likely to lead to increased
restrictive credit conditions putting pressure on economic growth. Rising borrowing costs
in advanced economies could lead to financial dislocations in the more vulnerable emerging
markets and developing economies. Comprehensive policy action is needed at the global and
national levels to foster macroeconomic and financial stability. Continued international
cooperation is the need of the hour to tackle climate change, accelerate the clean energy
transition, support populations affected by crises and hunger, and provide debt relief as
necessary.
Indian Economy: Amidst the challenging global macro environment, India’s economy
exhibited strong resilience as compared to other emerging markets and developing
economies, led by a large domestic market and relatively lesser integration with global
value chains and trade flows. Strong domestic consumption, private investment, and fixed
investment growth showed resilience despite global headwinds. This contributed to the
expected 7.2% growth of the Indian economy in FY 2022-23 as against 9.1% in FY 2021 22,
according to the Provisional Estimates by the Ministry of Statistics & Programme
Implementation.
In FY 2022-23, growth in exports was a healthy 6% on account of healthy growth in the
outbound shipments of sectors such as petroleum, pharma, and chemicals and marine. The
exports of goods and services together recorded a new high of 14% growth to USD 770
billion, led by robust growth in services exports, moderation in oil prices, robust
revenue collections and the fall in import-intensive consumption demand, the current
account deficit is expected to decline in FY 2023-24.
b) Company Overview:
Ambitious Plastomac Company Limited, a public limited company incorporated under the
Indian Companies Act, 1956, is listed on the Bombay Stock Exchange. The Company was
incorporated as on 15th September 1992. The company has its registered office
at 405, Royal Square, Nr. JBR Arcade, Science City Road, Sola, Ahmedabad 380060.
Presently, there are no activities / business in the Company. However, the management will
pick the finest accessible solutions for money raising for business activities and new
ideas & strategies for new business model. Furthermore, the management is optimistic
about launching a new model in this year.
c) Opportunities and Threats.
The biggest threats are technological and Artificial Intelligence. In navigating these
opportunities and threats, a proactive and holistic approach is essential. Regularly
reassessing our strategies, fostering a culture of innovation, and being adaptable in the
face of change will empower us to turn challenges into triumphs and capitalize on the
prospects that lie ahead.
d) Segment wise or product-wise performance.:
Company does not have any business activity as on date of these report but directors of
the Company continue looking for new market opportunity.
e) Outlook:
Based on the buoyancy of the Indian Economy, the overall scenario and steps taken by
the management, the future outlook of your company looks good.
f) Risks and concerns:
Company is prone to inherent business risks like any other organization. This document
is intended to formalize a risk management policy the objective of which shall be
identification, evaluating, monitoring, and minimizing identifiable risks. The Board of
Directors of the Company and the Audit Committee of Directors shall periodically review
the risk management policy of the Company so that management controls the risk through
properly denied network. Head of Departments shall be responsible for implementation of
the risk management system as may be applicable to their respective areas of functioning
and report to the Board and the Audit Committee. The risks are broadly categorized into:
| Risk Category |
Description |
|
Market Strategy, Organizational Growth-Market Penetration, Market Share, Volatility in
Commodity Market, Loss of Trade Secret Uncertainty surrounding political leadership in
Domestic Markets Economic condition of the Market, Global recession and Environmental
Issues. |
| t |
|
|
Consistent revenue growth Cost Optimization Manpower retention Disaster |
| Optional risks |
Management and Data security Inefficient working capital management - High Inventory. |
| Compliance risks |
Ensure stricter adherence to laws / rules / regulations / standards |
|
Adherence of company Policies and Procedures. |
| Financial and reporting risks |
Volatility in Currency Maintaining standards of Corporate Governance and public
disclosures |
In adherence to the present regulatory mandates described hereinabove, risk management
policy, to be implemented by departmental heads, for the purpose:
1) Ensure an organization relevant and perpetual risk Management framework for
identifying, assessing, responding to, monitoring or controlling and reporting risks.
2) Apply an organized, thorough approach to effectively anticipate and mitigate the
probable or realistic risks that could endanger achievement of key objectives.
3) Ensure systemic risk evaluation, categorization, and prioritization thereof to
assign relative importance to identified risks to determine where appropriate management
attention is required.
4) Practice the highest level of control measures by installing mechanisms and tools,
with involvement of all process-owners across the organization, to ensure that all
applicable legal, regulatory, and business requirements are up-to-date and met.
5) Develop alternative/ recommended courses of action for critical risks and control
the probability of occurrence of the risk, keeping ready contingency plans for selected
risks where the consequences of the risks are determined to be high.
6) Review the activities, status, and results of the risk management process on a
periodic and event-driven basis with appropriate levels of management and resolve issues
i.e. gauging potential risk exposure and addressing the same with appropriate corrective
action.
Obtaining, wherever required or desirable, the advice, opinion and assistance from
outside legal, accounting, or other advisors, as necessary, to aid informed decision
making.
g) Internal control systems and their adequacy:
Your Company has aligned its current systems of internal financial control with the
requirement of the Act. The Internal Control is intended to increase transparency and
accountability in an organization’s process of designing and implementing a system of
internal control. The Company has successfully laid down the framework and ensured its
effectiveness. Your company’s internal controls are commensurate with its size and
the nature of its operations. These have been designed to provide reasonable assurance
with regard to recording and providing reliable financial and operational information,
complying with applicable statutes, safeguarding assets from unauthorized use, executing
transactions with proper authorization and ensuring compliance with corporate policies.
The Audit Committee of the Board oversees the adequacy of the internal control environment
through regular reviews of the audit findings and monitoring implementations of the
recommendations through compliance reports submitted to the Company.
h) Discussion on Financial performance with respect to operational performance:
The financial performance with respect to the operational performance has already been
given in notes to financial statements which forming parts of these Annual Report.
i) Material developments in Human Resources / Industrial Relation:
Your Company’s industrial relations continued to be harmonious during the year
under review. Your company conducts regular in-house training programs for employees at
all levels. The focus is on maintaining employee motivation at a high level with stress on
leadership development. The Company will be investing appropriately with focus on customer
centricity, human resources will be focused on optimum employment engagement and the
talent will be strengthened vis-a vis the performance.
j) Details of significant changes in key financial ratios are as follows:
| Sr. |
Particulars |
2022-2023 |
2021-2022 |
| No. |
|
|
|
|
|
Profitability Ratios |
|
| a) |
Operating Profit Margin |
0.00% |
0.00% |
| b) |
Net Profit Margin |
0.00% |
0.00% |
| c) |
Return on Net Worth |
(59.72%) |
(37.56%) |
|
Working Capital Ratios |
|
|
| d) |
Debtors Turnover (days) |
0 |
0 |
| e) |
Inventory Turnover (days) |
0 |
0 |
|
Gearing Ratios |
|
|
| f) |
Interest Coverage |
0 |
0 |
| g) |
Debt / Equity |
4.82 |
1.21 |
|
|
Liquidity Ratios |
|
| h) |
Current Ratio |
2.17 |
3.70 |
k) Cautionary Statement
Statement in this report on Management Discussion and Analysis may be forward looking
statements within the meaning of applicable security laws or regulations. These statements
are based on certain assumptions and expectations of future events. Actual results could
however, differ materially, from those expressed or implied. Important factors that could
make a difference to the company’s operations include global and domestic conditions.
And changes in government regulation and tax structure, economic development within India
and the countries with which the company has business contacts and other factors such as
litigation and industrial relations.
The Company assumes no responsibility in respect of forward - looking statements, which
may be amended or modified in future on the basis of subsequent developments, information
or events.
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