Ashoka Refineries Ltd Management Discussions.

During FY 21-2022, the ongoing pandemic Covid-19 continued its impact. Disturbance was witnessed throughout the economy and in the global supply chain and regional production network.

FORWARD- LOOKING STATEMENT

This report contains forward-looking statements based on certain assumptions and expectations of future events. The Company, therefore, cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company’s actual results, performance or achievements can thus 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.

BUSINESS OVERVIEW

Company is engaged in trading of good and providing consulting services. The new line of business has witnessed a slow growth due to the ongoing pandemic. As expected the new line shall proved to be beneficial and efforts opf directors and KMP have slowly started giving fruits. The Directors and KMPs aim to further take forward the business and expand the business barring any unforeseen circumstances. During the year under review, Your Company has witnessed a significant growth as it had started a new line of business. This year Company has recorded a turnover of Rs.2.31 Crores as compared to Rs.75.54 Lakhs and a net profit of Rs.18.38 Lakhs as compared to Rs.0.82 Lakhs. Your directors are making continuous efforts and are hopeful that growth shall continue in the current year barring any unforeseen circumstances.

SEGMENT WISE REPORTING

During the year under review, Company is working in a single segment as already detailed above.

MARKETING

The Company is making all efforts to revamp its marketing in new areas.

SWOT

Our strength is our determination, weakness is the low equity base, opportunities are multiples and threats are practically none.

RISK AND CONCERNS

In any business, risks and prospects are inseparable. As a responsible management, the Company’s principal endeavor is to maximize returns. The Company continues to take all steps necessary to minimize losses through detailed studies and interaction with 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 Company’s audit Committee reviewed the internal control system. All efforts are being made to make the internal control system more effective.

THE FINANCIAL HIGHLIGHTS ARE AS UNDER:-

Fig. in lacs

Particulars 31st March, 2022
Operating Income 231.35
Other Income 2.87
Total Receipts: 234.22
Total Expenses 215.72
Profit/ (Loss) Before Tax: 18.49
Prior Period Expenses 0.12
Tax Expenses 0
Current Tax 0
Less: MAT Credit Entitlement 0
Profit/ (Loss) for the period : 18.38
Paid-up Equity Share Capital as on 31st March2022 340.19

INDUSTRIAL RELATIONS:

There is no change in nature of the business of the company. There are no regular employees employed with 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.

FY 21-22 FY 20-21
A Current Ratio 3.06 Current Asset 7,728,058.19 1.39 Current Asset 3,426,564.11
Current Liabilities 2,521,961.00 Current Liabilities 2,473,204.00
B Debt-Equity Ratio 0.06 Total debt 1,500,000.00 0.08 Total debt 1,500,000.00
Shareholders equity 24,166,048.19 Shareholders equity 19,587,718.11
C Debt Service Coverage Ratio NA NA
D Return on Equity Ratio 8.40% Net income 1,838,252.08 0.43% Net income 81,830.47
Average shareholders equity 21,876,883.15 Average shareholders equity 18,919,253.38
E Inventory turnover ratio NA NA
F Trade Receivables turnover ratio 4.98 Net Credit Sales 23,134,525.43 6.22 Net Credit Sales 7,454,432.89
Average Accounts Receivable 4,644,164.46 Average Accounts Receivable 1,198,495.00
G Trade payables turnover ratio 9.42 Net Credit Purchases 20,515,775.25 6.472159 Net Credit Purchases 6,632,719.95
Average Trade Payables 2,177,611.00 Average Trade Payables 1,024,808.00
H Inventory turnover ratio NA NA E Inventory turnover ratio NA NA
I Net profit ratio 7.85% Net Profit 1,838,252.08 1.07% Net Profit 81,830.47