ashish polyplast ltd Management discussions

A Industry Structure and Developments, Opportunities and Threats, Performance, Outlook, Risks and Concerns and Financial and Operational Performance.

The global economy showed signs of slowed down during 2022-23 by growth rate falling to 2.7% But the Indian economy showed growth rate of around 6.4% from the previous year. In spite of this, Global Polymers demand showed marginal growth. Indias Polymers demand remained stagnant. High prices of Polymers during the year, particularly of PVC, affected the demand. Infrastucture Projects from the government will help boost the demand. Overall, polymer demand is likely to grow in future.

B INDUSTRY STRUCTURE AND DEVELOPMENTS:

Easy availability of polymer raw materials and processing machinery, well-known manufacturing methods, moderate investment requirements have made plastic pipe manufacturing an easy proposition for small scale entrepreneurs in India. With large domestic production capacities along with good quantity of imports of plastic raw materials make it a commodity business in India. The demand of HDPE, PVC & CPVC Pipes witnessed positive growth during the year. With situation back to normal after recovering from pandemic, country is going in for economic growth. This will help Plastic Pipe industry in India. The global plastic pipe industry is growing at about 2-3% annually. In recent years, government schemes such as affordable housing for all, water supply for every village, and now, plans for piped water for every household are helping and contributing the growth of plastic pipes in India.

C OPPORTUNITIES AND THREATS:

The Governments various welfare schemes in irrigation, drinking water, affordable housing and Smart City projects will give an excellent opportunity to increase the business of your company in the coming years. Replacement of metal plumbing pipes with plastic pipes is already taking place in India. Significant risks and threats to your company are related to threat of third Covid wave, Global Economic Situation, volatile plastic raw material prices, uncertain import transit time to India. The situation of economic downturn, if it comes, may affect building and construction, farming and industrial sectors; and these may affect the demand of your companys products.

D BUSINESS, OPERATIONAL AND FINANCIAL RISKS:

The major risks and concerns which may have an impact on the Companys business are as follows:

1 Indian Economy and International Economic trends

2 Interest rate fluctuations and high rates on inflation

3 Unforeseen circumstances like natural calamities- floods, earthquakes, closure due to violence, pandemic

4 Delay in government spending on infrastructure and welfare schemes

5 Plastic Pipes manufacturing industry is a competitive industry. It reflects with demand-supply chain, trusted quality, and customer confidence is directly linked with economic factors like consumer reliance, technology and its up-gradation etc.

E INTERNAL CONTROL SYSTEMS:

The Company has built adequate systems of internal controls towards achieving efficiency and effectiveness in operation, optimum utilization of resources, and effective monitoring thereof as well as compliance with all applicable laws. The internal control mechanism comprises of well-defined organization structure, documented policy guidelines, pre-determined authority levels and processes commensurate with the level of responsibility.

F FINANCIAL PERFORMANCE:

The highlight of financial performance is discussed in the Directors Report. The Audit Committee also reviews the financial performance of the Company from time to time.

G HUMAN RESOURCES MANAGEMENT:

The Companys ongoing objective is to create an inspirational work climate where talented employees engage in creating sustained value for the stakeholders. The Company has developed an environment of harmonious and cordial relations with its employees.

H CAUTION STATEMENT:

Statements in this Management Discussion and Analysis Report describing the Companys objectives, estimates etc. may be "forward-looking statements" within the applicable laws and regulations. Actual results may vary from those expressed or implied; several factors that may affect Companys operations include Dependency on telecommunication and information technology system, Government policy and several other factors. The Company takes no responsibility for any consequences of the decisions made, based on such statement and holds no obligation to update these in future

I DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIO

Standalone

Sr No.	particular	Basis	As at 31st March, 2023	As at 31st March, 2022	% Variance	Reasons
1	Debt-Equity Ratio	times	0.27	0.17	63.07%	Increase in borrowing is resulted into deteriorate in the ratio.
2	Return on Equity Ratio	%	3.07%	5.76%	46.70%	Decrease in other income is resulted into deteriorate in the ratio.
3	Net Profit Ratio	%	1.06%	1.88%	43.59%	Decrease in other income is resulted into deteriorate in the ratio.
4	Return on Capital Employed	%	4.25%	8.55%	50.28%	Decrease in other income is resulted into deteriorate in the ratio.
5	Return on Investment.	%	0.00%	18.29%	100.00%	Due to unfavourable equity market and increase in interest rate, there is no return for the year.

 

	By Order of the Board
	For Ashish Polyplast Limited
	Ashish D. Panchal	Kantaben D Panchal
	Chairman & Managing Director	Director
Ahmedabad, 30th May, 2023	Din : 00598209	Din : 00598256