Managements discussion and analysis of the financial condition and
results of operations include forward looking statements based on certain assumptions and
expectations of future events. The Company cannot assure that these assumptions and
expectations are accurate. Although the Management has considered future risks as part of
the discussions, future uncertainties are not limited to Management perceptions.
1. Review of Indian Economy:
India has emerged as the fastest growing major economy in the world and
is expected to be one of the top three economic powers in the world over the next 10-15
years, backed by its robust democracy and strong partnerships. Indias nominal gross
domestic product (GDP) has touched the $3.75 trillion-mark in 2023. India is the
third-largest unicorn base in the world with over 100 unicorns with a total valuation of
US$ 332.7 billion. India needs to increase its rate of employment growth and create 90
million non-farm jobs between 2023 and 2030s, for productivity and economic growth
according to McKinsey Global Institute. The net employment rate needs to grow by 1.5% per
year from 2023 to 2030 to achieve 8-8.5% GDP growth between 2023 and 2030. According to
data from the Department of Economic Affairs, as of as of March, 2023, foreign exchange
reserves in India reached the US$ 578 4 billion mark. To cushion rupee depreciation, RBI
has been intervening in the forex market via both spot and forward positions.
2. Industry Structure and developments:
Infrastructure sector is a key driver for the Indian economy. The
sector is highly responsible for propelling Indias overall development and enjoys
intense focus from Government for initiating policies that would ensure time-bound
creation of world class infrastructure in the country. According to the Department for
Promotion of Industry and Internal Trade (DPIIT), FDI equity inflow amount for
infrastructure industries in India for the period 2016-2023 was not so good. In the
financial year 2023, the infrastructure industries in India saw a foreign direct
investment equity inflow of approximately 1.7 billion U.S. dollars. This was a decline
compared to the previous years.
3. Strength, Opportunities, Threats Strength:
Established operations and proven track record Smooth flow of
operations and Business Model yvvy Experienced Management Team Satisfied customer with
quality and service
Opportunities:
yvyyyy Potential to provide other value-added services
Expanding new geographical area Enhancing functional efficiency Opportunities in Indian
Market
Government thrust for growth in Indian Economy will boost the logistics
& Infrastructure Industry
Threats:
Increased Competition from Big Players Change in Government Policies
Rising labour wages yyvyy Margins may be constrained in the future
There are no entry barriers in our industry which puts us to the threat
of competition from new entrants
4. Segment Wise - Product wise performance:
During the year under review, the Company operated in only one segment
which is production of Iron and Steel Products.
Details of Segment wise Revenue of the Company:
e Iron & Steel Products: The Total Revenue from Iron & Steel
Products is Rs. 10,709.75/- Lakhs.
5. Outlook
The Continual growth in the Indian sector is necessary to give
necessary support to the industry. The company is making all efforts to accelerate the
growth of its business. It expects to improve its position in the market by focusing in
the technologically advanced andmore profitable and market segment and working
aggressively in the area of productivity, efficiency and cost reduction.
6. Risks and Concerns
The Industry is exposed to the following risk and concerns:
e Political instability or a change in economic liberalization and
deregulation policies could seriously harm business and economic conditions in India
generally and our business in particular.
The Government of India has traditionally exercised and continues to
exercise influence over many aspects of the economy. Our business and the market price and
liquidity of our Equity Shares may be affected by interest rates, changes in Government
policy, taxation, social and civil unrest and other political, economic or other
developments in or affecting India. The rate of economic liberalization could change, and
specific laws and policies affecting the information technology sector, foreign investment
and other matters affecting investment in our securities could change as well. Any
significant change in such liberalization and deregulation policies could adversely affect
business and economic conditions in India, generally, and our business, prospects,
financial condition and results of operations, in particular.
? Global economic, political and social conditions may harm our ability
to do business, increase our costs and negatively affect our stock price.
Global economic and political factors that are beyond our control,
influence forecasts and directly affect performance. Factors include interest rates, rates
of economic growth, fiscal and monetary policies of governments, inflation, deflation,
foreign exchange fluctuations, consumer credit availability, fluctuations in commodities
markets, consumer debt levels, unemployment trends and other matters that influence
consumer confidence, spending and tourism. Increasing volatility in financial markets may
cause these factors to change with a greater degree of frequency and magnitude, which may
negatively affect our stock prices.
e Any downgrading of Indias sovereign rating by an independent
agency may harm our ability to raise financing.
Any adverse revisions to Indias credit ratings for domestic and
international debt by international rating agencies may adversely impact our ability to
raise additional financing, and the interest rates and other commercial terms at which
such additional financing may be available. This could have an adverse effect on our
business and future financial performance, our ability to obtain financing for capital
expenditures and the trading price of our Equity Shares.
7. Internal Control systems and its adequacy
The Company has an effective and reliable internal control system
commensurate with the size of its operations. At the same time, it adheres to local
statutory requirements for orderly and efficient conduct of business, safeguarding of
assets, the detection and prevention of frauds and errors, adequacy and completeness of
accounting records and timely preparation of reliable financial information. The efficacy
of the internal checks and control systems is validated by self-audits and internal as
well as Statutory Auditors.
8. Discussion on financial performance of the Company with respect to
operational performance. e Share Capital
The Paid-up Share Capital of the Company as on 31% March, 2023 is Rs.
10,89,54,500/- (Rupees Ten Crore Eight-Nine Lakhs Fifty-Four Thousand Five Hundred Only)
divided into 1,08,95,450 (One Crore Eight Lakhs Ninety-Five Thousand Four Hundred Fifty)
Equity Shares of Rs. 10/- (Rupees Tenonly).
eo Reserves and Surplus
The reserves and surplus is Rs. 5,014.69 Lakhs as on the end of the
current year.
eo Total Income
During the year under consideration, the total income was Rs. 11,005.51
Lakhs as against Rs. 1,187.21 Lakhs during the previous year.
9. Material developments in Human resources / industrial Relations
front, including number of people employed
Human Resources and an effective and efficient human resource are a key
to the success of any organization and our company has been well focused in adopting the
best standards in the Industry which not only gives us the benefit of attracting good
talent but gives us an edge towards providing best qualitative services to our customers.
Our manpower is a mix of experienced and young talent pool of resources which gives us the
dual advantage of stability and growth. Our work processes and skilled resources together
with our strong management team have enabled us to successfully implement our growth
plans.
10. Key Financial Ratios:
| Ratios |
2022-23 |
2021-22 |
Variance (in %) |
| Current Ratio |
42.10 |
48.34 |
-12.90% |
| Debt-Equity Ratio |
0.02 |
0.05 |
-64.34% |
| Debt Service Coverage Ratio |
- |
59.94 |
NA |
| Return on Equity Ratio |
15.17% |
1.01% |
1406.70% |
| Inventory turnover ratio |
20.45 |
- |
NA |
| Trade Receivables turnover ratio |
3.02 |
0.17 |
1725.36% |
| Trade payables turnover ratio |
252.47 |
- |
NA |
| Net capital turnover ratio |
2.24 |
0.33 |
579.52% |
Reason for variance: Figures for the Financial Year 2021-22 are after
implementation of the approved Resolution Plan whereupon operational & financial
liabilities were extinguished and advances, Trade & other receivables were written off
and are not comparable with the figures for the current financial year and hence the
variance.
11. Cautionary Statement
This report contains forward- looking statements based on the
perceptions of the Company and the data and information available with the company. The
company does not and cannot guarantee the accuracy of various assumptions underlying such
statements and they reflect Companys current views of the future events and are
subject to risks and uncertainties. Many factors like change in general economic
conditions, amongst others, could cause actual results to be materially different.
| Place: Kolkata |
On behalf of the Board of Directors |
| Date: 4% September,2023 |
For DHATRE UDYOG LIMITED |
|
(Formerly known as Narayani Steels Limited) |
SD/-
Sumit Kumar Agarwal Managing Director DIN:02184000
+91-9892691696
