dhoot industrial finance ltd Management discussions


MANAGEMENT DISCUSSION AND ANALYSIS REPORT

1. Industry Structure and developments

The Company has focused basically on trading of chemicals, electronics, paper, commodity, shares and on power generation during the fiscal. And loans, Inter - Corporate Deposits, dividend from investments have contributed to the other income.

2. Opportunities and Threats Opportunities:

The Company is eyeing new products for increasing its trading portfolio.

Threats:

The Company will face general market competition.

3. Segment wise Performance:

The company usually operates three main business segments i.e. Trading, Power Generation and Others. The segment wise information is provided at Note No. 22 in Notes to Financial Statements.

4. Outlook:

Due to increased focus on the trading activities, the company is confident that as the market conditions are improving, the company will gain in the domestic economy.

5. Risk & Concerns:

The company will face market competition.

6. Internal Control Systems and their adequacy:

The Company has an adequate system of internal controls that ensures that all the assets are protected against loss from unauthorized use or disposition and all transactions are recorded and reported in conformity with generally accepted accounting principles.

7. Financial Performance and Operational Performance:

The company has achieved a total income and turnover of INR 5,211.61 Lakhs and net Profit is at INR 1,014.11 Lakhs during the year ended 31st March, 2023 as compared to INR 6,661.29 Lakhs and net profit INR 1,866.74 Lakhs respectively for the last financial year.

8. Human Resources / Industrial Relations: (including number of people employed )

Your Company considers its intellectual capital as its most valuable asset. Personnel policies of the Company are designated to ensure fairness to and growth of all individuals in the organization and aim to provide a challenging work environment. The Industrial Relations remained cordial during the year under review.

9. There have been significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios.

The Key Financial Ratios for the year under review have undergone changes as compared to previous FY 2021-22. All Profitability Ratios like Net Profit Margin has decreased (down to 28.74% from 61.38 % due to decrease in profit after tax, Interest coverage ratio has decreased (down to 3.05% from 4.20%) due to decrease in earnings before Interest and tax & Return on Net worth has decreased (down to 3.56% from 7.83%) due to decrease in profit after tax. The lesser allowance of credit to the Debtors, has reflected in the betterment of Debtors Turnover ( increased to 7.00% from 6.54%), Inventory Turnover (0) &Current Ratio decrease to 0.94 % from 1.12% .The Debt Equity Ratio, however, increased to 0.26% from 0.18%, on account of increase in total equity due to due to decrease in profits and other comprehensive income during the year.

10. Return on Net worth was 7.83% in the previous year while return on net worth in current year is 3.56%. The difference is due to decrease in profit after tax for the financial year 2022-23.

For DHOOT INDUSTRIAL FINANCE LIMITED
Sd/-
Place: Mumbai Rajgopal Dhoot
Date: 18/05/2023 Chairman