Gayatri Rubbers and Chemicals Ltd Management Discussions

Annexure-IV

INDUSTRY STRUCTURE AND DEVELOPMENT

Our Company "Gayatri Rubbers and Chemicals Limited" was founded on March 31, 2022 and has swiftly established itself as a key player in the rubber manufacturing and trading industry. The company on its second year since incorporation has demonstrated remarkable growth and resilience, carving out a niche in the competitive marketplace.

Leadership and Expertise:

The company is spearheaded by a trio of promoters: Mr. Manoj Kumar Aggarwal, Mr. Shilp Chotai, and Mr. Utsav Chotai. Collectively, they bring over TWO DECADES of specialized experience in the rubber industry. Their deep understanding of market dynamics and technical expertise in rubber production is a cornerstone of Gayatri Rubbers and Chemicals Limiteds success.

Recently Company have set solid footing in Smart Meter Theme which includes Smart meter manufacturer, RMC Switchgears and SMC Enclosures manufacturer. They also won State Roadways contract of M.S.R.T.C. and completed supplying Rubber Profiles to all Railway zones of Indian Railway.

Companys growth is aligned with governments continues push of MAKE IN INDIA and Atmanirbhar Bharat. The Company ensures not only meeting industry standards but also fostering innovation and maintaining quality.

The Companys independent directors Mr. Sameer Pravinbhai Raninga, Mr. Fahad Abdulaziz

Patel, Mrs. Jaspreet Kaur provide additions to the Board with their expertise and maintain transparency.

Product Range and Market Presence:

Gayatri Rubbers and Chemicals Limited specializes in a diverse range of rubber products. The companys offerings include:

• Rubber Profiles: Tailored solutions for various applications, ensuring durability and flexibility.

• Aluminum Rubber Profiles: Designed to enhance performance in aluminum frameworks.

• Automobile Rubber Profiles: High-quality components essential for automotive assembly and maintenance.

• Rubber Compounds: Essential materials for other manufacturers and original equipment manufacturers (OEMs).

• Clear PVC Profiles: Versatile and transparent profiles used in various industrial and commercial applications.

These products are distributed nationwide, primarily catering to the aluminum and automotive sectors. The companys rubber compounds are supplied to other rubber product manufacturers and OEMs, highlighting its integral role in the supply chain.

Shifting of Registered Office and Production Unit:

During the year, the company has shifted its registered office and production unit from Plot No. 11, Gali No. 3, Opp. Beri Ka Bagh, Malerna Road, Ballabhgarh, Faridabad, Haryana- 121004 to Industrial Shed, Plot No. 675, Sector- 69 Faridabad, Tehsil Ballabgarh, Distt. Faridabad, Haryana- 121004 with effect from 22nd January 2024 to a more expansive and modern facility, which is anticipated to increase the production capacity by up to 300%. This expansion is poised to not only enhance operational efficiency but also meet the growing demands of the market, positioning Gayatri Rubbers and Chemicals Limited for significant growth and success in the coming years.

OPPORTUNITIES AND THREATS

Opportunities and Strengths:

1. Experienced Promoters and Dedicated Management Team: Our leadership team, with their extensive industry experience, provides strategic direction and operational excellence.

2. Strong Relationships with Reputed Institutional Customers: We have established and nurtured strong ties with well-known institutional clients, which enhances our market credibility and business opportunities.

3. Fully Integrated Plant: Our manufacturing facility is fully integrated, allowing for efficient production processes and quality control.

4. Experienced Marketing Team: Our skilled marketing team employs effective strategies to reach and engage with our target market.

5. Operational Excellence: We are committed to achieving operational excellence through continuous improvement and optimization of our processes.

6. Quality Control: Rigorous quality control measures are in place to ensure that our products consistently meet the highest standards.

Threats and Risks:

1. Significant Economic Changes: Economic fluctuations can impact market demand and operational costs.

2. Seasonal Factors: Seasonal variations may affect production schedules and sales volumes.

3. Technological Advancements and Changes: Rapid technological advancements may necessitate continuous updates to our processes and equipment.

4. Real or Perceived Product Contamination: Any issues related to product contamination, whether real or perceived, can impact our reputation and customer trust.

5. Significant Changes in Government Regulations or Regulatory Policies: Changes in regulations may require adjustments to our operations and compliance measures.

6. Competitive Prices and Desired Quality: Competitive pricing pressures and the need to maintain high-quality standards can pose challenges in the market.

7. Warranty Claims Issues: Managing warranty claims effectively is crucial to maintaining customer satisfaction and brand reputation.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

Gayatri Rubbers and Chemicals Limited does not have multiple segments. Hence, comments on segments are not required.

OUTLOOK

At Gayatri Rubbers and Chemicals Limited, our core mission is to meet and exceed customer expectations. We strive to deliver products that align with customer needs, adhere to regulatory standards, and satisfy accreditation requirements. Our goal is to maintain superior standards at every stage of the process, from procurement to dispatch, ensuring complete customer satisfaction.

INTERNAL CONTROL

The Company has an independent Internal Audit function with a well-established risk management framework. There is an adequate internal control procedure commensurate with the size of the company and nature of the business for inventory, fixed assets and for the sale of goods or services. The Company has implemented proper and adequate systems of internal control to ensure that all assets are safeguarded and protected against loss from any unauthorized use or disposition and all transactions are authorized, recorded and reported correctly. The system ensures appropriate information flow to facilitate effective monitoring. The Company has engaged a reputable external firm to support the Internal Audit function for carrying out the Internal Audit reviews.

Further, the Company has constituted Audit committee to overlook the internal control systems and their adequacy. Audit committee regularly reviews and gives recommendations on proper and adequate internal control systems.

OPERATIONAL PERFORMANCE

At Gayatri Rubbers and Chemicals Limited, our commitment to operational excellence drives our success and growth. Our manufacturing facility is equipped with advanced machinery and handling equipment, which supports a seamless and efficient production process. Recent upgrades, including a significant expansion of our production capacity by up to 300%, have positioned us to meet increasing market demands with greater efficiency. Quality control is a cornerstone of our operations; we conduct thorough inspections and testing of raw materials and finished products to ensure they meet the highest standards of safety and performance. Our supply chain management is meticulously designed to ensure timely delivery of products, efficient logistics, and robust relationships with reliable suppliers. We also invest in the continuous development of our workforce through regular training programs, which enhance their skills and adapt to technological advancements. Embracing a culture of continuous improvement, we track key performance indicators, seek feedback, and explore innovative solutions to enhance our processes and product offerings. This comprehensive approach ensures that we consistently deliver high-quality products and services, ultimately leading to high levels of customer satisfaction and supporting our long-term success in a competitive market.

DEVELOPMENT IN HUMAN RESOURCE

At Gayatri Rubbers and Chemicals Limited, we firmly believe that our employees are pivotal to our success and growth. Our human resources strategy is designed to attract, retain, and nurture the best talent, ensuring that each individual contributes effectively to our business objectives. Currently, our company employs around 19 individuals, forming a robust and versatile team. Our workforce includes:

• Experienced Professionals: These individuals bring valuable industry knowledge and expertise, contributing to strategic decision-making and high-level operational oversight.

• Skilled Workers: Employees with specific technical skills and specialized knowledge play a crucial role in maintaining operational efficiency and product quality.

• Semi-Skilled and Unskilled Workers: These team members are integral to day-to-day operations, supporting various tasks that are essential for the smooth functioning of our manufacturing processes.

(i) Debtors Turnover: ratio for the FY 2023-24 is 5.12 as compared to FY 2022-23 which was 9.85. The change is due to less proportionate increase in credit sales compared to trade receivable i.e increase in average trade receivable

(ii) Inventory Turnover: ratio for the FY 2023-24 is 3.40 as compared to FY 2022-23 which was 41.57. The Change is due to less proportionate increase in sales compare to average inventory i.e increase in holding of inventory is more.

(iv) Debt Equity Ratio: ratio for the FY 2023-24 is 0.01 as compared to FY 2022-23 which was 0. The Change is due to company raised funds from borrowing.

FUTURE PROSPECTS:

As Gayatri Rubbers and Chemicals Limited continues to evolve, the company remains committed to innovation, quality, and customer satisfaction. The strategic expansion and robust leadership underscore its dedication to becoming a leading force in the rubber manufacturing industry. The company is well-positioned to leverage its enhanced production capabilities and industry expertise to further solidify its market presence and drive future growth.

CAUTIONARY STATEMENTS

All statements made in Management and Discussion Analysis have been made in good faith. Many unforeseen factors may come into play and affect the actual results, which may be different from what the management envisages in terms of performance and outlook. Factors such as economic conditions affecting demand/supply and priced conditions in domestic & international markets in which the Company operates, and changes in Government regulations, tax laws, other statues and other incidental factors, may affect the final results and performance of the Company.

DIN:09557130

Date: 01.08.2024

Place: Porbandar