anar industries ltd Management discussions

* INDUSTRIAL STRUCTURE AND DEVELOPMENT:

The company is engaged in the business of trading of Bio fuel and carries out construction and other information technological activities.

The global bio diesel market is expected to witness steady growth in the upcoming years. This growth in market size will be attributed to numerous factors including rising environmental and energy security concerns along with government legislation and regulatory restrictions on fossil fuels. The uncertainty with global fuel prices and constant rising emission levels have resulted in the growing interest in alternative fuels, which will further propel market growth over the next few years. Several emerging trends are expected to gain grip and positively impact the global bio diesel market throughout the forecast period.

"Real Estate" is one of the best growing sectors of the Country, but it is as well a phase vital for Indias economy due to its large potential for employment generation, capital magnetism and revenue generation for the Government. During the year, the real estate sector witnessed a slowdown due to moderate end user demand, rising inventory and high finance costs. However, despite adverse sector dynamics, prices were resilient in most cities and have dropped only in select micro markets. Although the current market situation in the sphere is affected adversely but overall Performance of the Company is satisfactory.

* OVERVIEW:

The Financial Statements have been prepared in compliance with the Indian Accounting Standards (IND-AS) issued by the Institute of Chartered Accountants of India (ICAI) which have been notified under the Companies (Indian Accounting Standards) Rules, 2015 (IND AS Rules), of the Companies Act, 2013. The management of the Company accepts responsibility for the integrity and objectivity of these financial statements made on a prudent and reasonable basis, in order that the financial statements reflect in a true and fair manner the form and substance of transactions, and reasonably presents the Companys state of affairs and profit for the year.

* THREATS:

COMPETITION:

Competition in the domestic as well as international market has intensified and strained the company to adopt aggressive marketing strategy and promotional campaigns to detain and defend their market shares. The Company has the plans to penetrate better in to market, especially through the customer retention and business development in the regions which have not been tapped. The Company is under constant pressure to develop trade and supply new and novel merchandise in shorter time cycles, at condensed cost, and with enhanced quality.

* SEGMENT WISE AND PRODUCT WISE PERFORMANCE:

The Company operates in trading of Bio Diesel and carries out construction, and other information technological activities. In the reporting year, revenue was generated from trading of Bio Diesel & Construction & other technological activites. Hence, segment/product wise report is not given separately.

* RISK AND CONCERN:

The risk management function is integral to the company and its objectives includes ensuring that crucial risk are recognized continuously, scrutinized and administered effectively in order to protect the companys business.

However, the changes in the tax laws, Government policies and regulatory requirement might affect the companys business. Uncontrolled variation in price of input materials could impact the companys profitability to the extent that the same are not absorbed by the market through price increase and / or could have a negative impact on the demand in the market. The company is operating in highly competitive market.

The management has already taken initiatives in advance for mitigating the above mentioned risk and concerns/challenges. The company has taken key programmes like strong promotion efforts, focus on expenditure diminution, and retain endowed employees etc.

* INITIATIVES BY THE COMPANY:

The Company has taken the following initiatives:

• Focus on reduction of costs by undertaking specific exercise in diverse fields.

• Concentration in magnification of proceeds.

The Company is quite confident that the overall profitability would improve in a sustainable manner, as a result of this strategy.

* OUTLOOK:

In todays age of competition, Companies are under steady pressure to develop, trade and supply new and pioneering products in shorter time cycles, at reduced cost, and with superior quality. The profit margins in the industry are under pressure. However, the Company has taken curative measures. The Company is certain to meet the challenges with its potency in market, its strategic planning, upgrading and price decline exercise.

* INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Your Company places significant prominence and efforts on the internal control systems. The Company has appointed Internal Auditor for the same with such powers and responsibilities that are required to ensure the competence of the internal Control System.

* HUMAN RESOURCE:

Your Company strongly believes that employees are the most precious assets and key players of business triumph and continual escalation. Various employee benefits, recreational and team building efforts are made to augment employee skills, motivation as also to cultivate team spirit. Industrial relations were cordial throughout the year.

* HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION:

Your Company has act in accordance with all the applicable laws. The Company has been complying with the relevant laws and has taking all obligatory measures to protect the environment.

* CAUTIONARY STATEMENT:

There are certain Statements which have been made in the "Management Discussion and Analysis Report" describing the estimates, expectations or predictions, may be read as forward-looking statements within the meaning of applicable laws and regulations. The actual results may differ materially from those expressed or implied. The important factors that would make a difference to the Companys operations include demand - supply conditions, changes in Government Policies, Governing Laws, Tax regimes, global economic developments, climatic conditions and other incidental factors.

* DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL REPFORMANCE:

In terms of performance, FY 2022-23 has been a reasonable year. Company is focussed on the task on hand in terms of better reliability of operations and more focussed market efforts. Our financial performance reflected the pragmatic operational performance. The entity earned profit of 38.20 Lakhs and the revenue from operations was 705.95 Lakhs, Cash and cash equivalents at the end of year stood at 1.09 Lakhs.

* DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

Particulars	2022-23	2021-22
Debtors Turnover Ratio	0.77	2.98
Inventory Turnover Ratio	0	0
Interest coverage ratio	3.69	6.63
Current Ratio	2.35	2.71
Debt Equity Ratio	-17.50	-3.67
Operating Profit Margin	16.89	7.09
Net Profit Margin	5.41	4.31
Return on Networth	-0.41	-0.88
P/E Ratio	35.26	12.31

* DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF:

Even though the Company has rational earnings but due to adjustment of past years losses, your Company fall short to earn significant sum as return on Net Worth.

Place: Ahmedabad	For and on behalf of the Board
Date: 8th September, 2023	SD/-	SD/-
	Swetank M. Patel	Hina S. Patel
	Managing Director	Director
	DIN:00116551	DIN:01987053