garware marine industries ltd Management discussions

INDUSTRIAL STRUCTURE & DEVELOPMENT:

Your Company continues to operate its Ship Repair Division.

OPPORTUNITIES:

The Company continued to be profitable during the year, as a result of control over costs. The Company strives to improve its customer base and will hopefully be able to achieve the same, as vessel upkeep requirements become more affordable as industry conditions improve.

THREATS:

The Companys main Customer has sold its 4 Vessels and therefore revenue from repairs for the Company will come under pressure with less vessels to repair.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

The Company operates in a single segment viz. ship repairs.

OUTLOOK:

While, during the current year, Revenue from operations declined, profit rose as a result of a control over costs.

In the short term the Company will face challenges since the Companys main customer has reduced the strength of its fleet from 6 to 2 Vessels. As a result, the scope to cany our repairs has also reduced. Therefore, the Company will strive to widen its customer base as well.

On a the medium to long term horizon, the Company hopes that it is successful in widening its Customer base so that it can generate sufficient revenue to defray all costs and earn a healthy profit

INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY

Your Company has an Internal Control System commensurate with its business. Adequate measures have been taken to mitigate all types of unforeseen risks and to protect the Company from any potential risks which may affect the existence of the Company and the Board of Directors. Utmost care has also been taken to ensure preservation of interest of all its stakeholders. The Audit Committee reviews the report of Internal Auditors and recommends steps for future improvement with respect to internal control.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013 and as per Indian Accounting Standards (IND AS) for the year ended 31st March, 2023.

Revenue from operations (including other income) for the year ended 31st March, 2023 stood at Rs. 122.53 lakhs as against Rs. 158.92 lakhs for the previous year ended 31st March, 2022 (a decrease of 29.70%).

While revenue declined, Profit for the year ended 31st March, 2023 increased to Rs. 11.58 lakhs as against a profit of Rs. 1.42 lakhs for the previous year in view of a substantial reduction in expenses.

Total Comprehensive Income - as a result of a decrease in market price of listed investments - stood at a loss of Rs.327.72 Lakhs as against a profit of Rs. 544.18 Lakhs in the previous year.

The Company does not have any debt outstanding.

There were no material changes and commitments affecting the financial position of the Company which occurred between and at the end of the financial year to which this financial statement relate on the date of this report

FINANCIAL RATIOS:

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018) (Amendment) Regulations, 2018, following are the details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key financial ratios.

Key Financial Ratios	F.Y. 2022- 23	F.Y. 2021-22	Change in %	Remark
Current Ratio	16.08%	23.04%	-30.23%	Substantial increase in current liabilities.
Net Profit Ratio	9.46%	0.90%	947.44%	Increase in profit
Return on equity Ratio	1.21%	0.17%	618.01%	Increase in profit
Trade payable Turnover Ratio	6.10%	9.66%	-36.89%	Increase in trade payable.
Return on capital employed	1.51%	0.17%	771.14%	Increase in earnings.

RISKS AND CONCERNS

While in the short term the Company will take challenges. We hope the medium /short term will bring good opportunities for growth of the Company.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

Cordial relations were maintained at all the levels. All the Statutory dues were paid.

FORWARD-LOOKING STATEMENTS:

Statements in this Management Discussion and Analysis report describing the Companys objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events. The Companys actual results could differ materially from those expressed or implied. 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. Further, important factors that could make a difference to the Companys performance are circumstances in the industry, tax regimes and acts of God. We are gradually leveraging our competencies to solve for our clients issues. As we look ahead to the future, we are optimistic about the opportunity that awaits us.