Ashoka Refineries Ltd Management Discussions

Management Discussion and Analysis as required under Regulation 34 of SEBI (LODR) Regulations, 2015 read with Schedule-V of die said Regulations, forms part of this Boards Report as follows:

FORWARD- LOOKING STATEMENT

This report contains forward-looking statements based on certain assumptions and expectations of future events. The Company, therefore, cannot guarantee diat these assumptions and expectations are accurate or will be realized. The Companys actual results, performance or achievements can dius differ materially from those projected in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.

INDUSTRY STRUCTURE AND DEVELOPMENTS AND BUSINESS OVERVIEW

Company is mainly engaged in trading of goods. The Directors and KMPs aim to further take forward die busmess and expand die business barring any unforeseen circumstances. During the year under review. Your Company has recorded a turnover of Rs. 148.21 Lakhs as compared to Rs. 190.59 Lakhs and a net profit of Rs. 1.69 Lakhs. Your directors are making continuous efforts and are hopeful that growdi shall continue hi the current year barring any unforeseen circumstances.

SEGMENT WISE REPORTING

During die year under review. Company is workmg in a single segment and thus segment wise report is not required.

SWOT

Our strengdi is our determination, weakness is die low equity base, opportunities are multiples and threat is small level at which company operate.

RISK AND CONCERNS

In any business, risks and prospects are inseparable. As a responsible management, the Companys prmcipal endeavor is to maximize returns. The Company continues to take all steps necessary to minimize losses through detailed studies and interaction widi experts.

INTERNAL CONTROL

The Company has an internal control system, commensurate with the size of its operations, adequate records and documents were maintained as required by laws. The Companys audit Committee reviewed the internal control system. All efforts are being made to make die internal control system more effective.

THE FINANCIAL HIGHLIGHTS ARE AS UNDER:-

Particulars	31st March, 2024	31st March, 2023
Operating Income	148.21	190.59
Other Income	3.97	3.53
Total Receipts:	152.17	194.12
Total Expenses	149.91	183.15
Profit/ (Loss) Before Tax:	2.26	10.97
Prior Period Expenses	-	-
Tax Expenses	0	0
Current Tax	0.57	2.12
Less: MAT Credit Entitlement	0	0
Profit/ (Loss) for the period:	1.69	8.86
Other comprehensive income	(0.19)	31.44
Total Comprehensive Income for the period	(0.19)	31.44

INDUSTRIAL RELATIONS:

There is no change in nature of the business of the company. The Management of the Company is cordial with each other and terms of company in the industry remain cordial with other players on the market.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS

The Key financial ratios are given below. Further there being no significant change i. e. change of 25% or more as compared to the immediately previous financial year therefore no as such explanation is required to be given.

Ratio	Numerator	Denominator	F.Y. 2324	F.Y. 2223	0/ % Change	Reasons (if variance is more than 25%)
Current Ratio	Current assets	Current liabilities	25.34	2.82	797.73	Increase in Current ratio is due to decrease in Trade receivable and payable during the year.
Debt Equity Ratio	Total debt	Shareholders equity	0.05	0.05	0.069	NA
Debt service Coverage Ratio	Earning for debt service	Debt service	NA	NA	NA	NA
Return on Equity	Profit after tax	Average shareholder equity	0.62%	3.44%	(82)	Decline in ROE is because of decrease in net income during the current financial year.
Inventory turnover ratio	Revenue from operation	Average Inventory	NA	NA	NA	NA
Trade receivable turnover ratio	Net credit sales	Average trade receivables	1.75	2.17	(19.30)	Trade Receivables turnover ratio has decreased because of decrease in the turnover and increase in the average trade receivables during the current financial year.
Trade payable turnover ratio	Net credit Purchases	Average trade payables	5.99	4.88	22.77	Trade payables turnover ratio has increased because of increase in the purchases and decrease in the average trade payables during the current financial year.
Net capital turnover ratio	Net sales	Working Capital	0.54	0.70	(22.18)	Net capital turnover ratio has decreased due to decrease in turnover.
Net Profit Ratio	Net Profit	T otal Revenue	1.11%	4.56%	(75.64)	Decline in NP Ratio is because of decrease in net profit during the current financial year.
Return on Capital Employed	Earnings before interest & tax (EBIT)	Average Capital Employed	0.79%	3.81%	(79.32)	Decline in ROCE is because of decrease in net income during the current financial year.
Return on Investment	Net Profit	Average of Cost of the Total Investment in Balance Sheet (Average Total Assets)	0.54%	2.87%	(81.17)	Decline in ROI is because of decrease in net profit during the current financial year.
Interest Coverage Ratio	Earning for interest service	Interest service	NA	NA	NA	NA
Operating Profit Margin	Operating Profit	Revenue from Operations	1.15%	3.90%	(129.51)	Decline in Op. Profit margin is because of decrease in net profit during the current financial year.

INFORMATION AS PER SECTION 134 AND SCETION 197 OF THE COMPANIOES ACT, 2013 READ WITH COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONEL)

RULES, 2014

AND FORMING PART OF THE BOARDS REPORT FOR THE YEAR ENDED MARCH 31, 2024

Name of Director / KMP / Employees

Designation

Nature of Employment Contractual or Otherwise

Qualificati ons and Experience of the employee

Date of Commencem ent of Employment

Age

Last employment held by such employee before joining the company

Sharehold ing in the Company along with Spouse & Dependen t Children

Whethe r, relative of Directo r of Compa ny, if yes name of such Directo r

Remunerat ion in FY 2023-24 (in Rs.)

Remunerat ion in FY 2022-23 (in Rs.)

% increase in remuneration

Ratio of Remunera tion to MRE

1 MR. ADITYA SHARMA

Independent Director

NA**

NR**

NA**

NR**

NA**

NA**

NA**

3,000

4,000

NA **

2 MR. RAVI KAMRA

Independent Director

4,000

5,000

3 MRS. SATYAWATI PARASHAR

Independent Director

4,000

5,000

4 MR. HIFZUL RAHIM

Managing Director

Permanent

28

52,000

-

NA#

0.21

5 MRS. GARIMA MOGHA

Company Secretary

Permanent

B.com; CS

11-02-2023

Zaptax Advisors P Ltd

NIL

NO

2,96,000

14,785

1902.03% ##

NR@

6 MR. LILESH KUMAR SAHU

Employee

Permanent

75,900

1,27,000

-40.24% @@

7 MR. MARADANA VENKATA RAMANA

Employee

Permanent

2,43,000

2,43,000

No Change

8 MR. CHANDRA KUMAR DADAGALA

Employee

Permanent

2,43,000

2,43,000

No Change

** All the Non-Executive Directors, Independent Directors of the Company (not beng an employee) were not paid any remuneration and were paid only sitting fee for attending for attending meetings of the Board/ Committees of directors. Therefore, the said ratio of remuneration of each director to median remuneration of the employees of the company is not applicable.

Since they are not the employees of the company the details of their nature of employment, date of commencement of employment, previous employment, shareholding in the company, and relative of existing directors etc. are not applicable.

Further, since they are not the employees of the company thes details of age, qualification, and experience are not relevant.

# Mr. Hifzul Rahim was appointed during financial year 2023-24, hence comparison cannot be done

## Remuneration paid to Mrs. Garima Mogha during the financial year 2023-24 is not comparable since the concerned person(s) were there only for part of the financial year 2022-23.

@ Ratio of Remuneration to the median remuneration of employees is required to be disclosed for Directors, hence not relevantfor non-director employees.

@@ Remuneration paid to Mr. Lilesh kumar Sahu during the financial year 2023-24 is not comparable since he the concerned person(s) re-joined the company during the financial year 2023-24.

I. The ratio of the remuneration of each director to the median remuneration of the employees of the company for the Financial Year:

Ratio of remuneration paid to the Managing Director to the median remuneration of the employees is 0.21

No remuneration was paid toany other executive directors Therefore, the said ratio of remuneration of such directors to median remuneration of the employees of the company is not applicable.

While calculation of median remuneration the sitting fees paid to Independent Directors has been excluded.

II. The percentage increase in the median remuneration of employees in the Financial Year: 31.35%

While calculation of median remuneration for the current & the past financial year, the sitting fees paid to Independent Directors has been excluded.

III. The number of permanent employees on the rolls of Company :

There were 7 permanent employess on the rolls of company as on March 31, 2024. Out of this 2 Executive Directors, Mr. Tulsi Ram Sahu and Mr. Mansoor Ahmed do not draw any remuneration from the company

IV. Average percentile increase already made in the salaries of employees other than the managerial personnel in the last Financial Year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration : There was no increase in the salaries of employees and thus there is no comparison.

V. Affirmation that the remuneration is as per the remuneration policy of the company: It is hereby affirmed that the remuneration paid is as per the Remuneration Policy of the Company.