Gujarat Petrosynthese Ltd Management Discussions

ANNEXURE III

Industry Structure and Development

We are one of the major sources for polymer compounding, coloring, alloying and blending of engineering plastics in south India catering to the demands and needs of our customers for their specific applications.

Opportunities&Threats

The polymer alloys and blends unit was set up with the technical collaboration and equity participation of Chenguang Research Institute of Chemical Industry (CRICI). The products of your company have diverse uses and applications in several industries right from automotive, telecommunication and medical to electrical, electronic and home applications. The Company has loyal pan- India customers and enjoys a good reputation in the industry owing to the consistency, reliability and quality of its products. It has a full-fledged testing laboratory along with the latest equipment. The Company has started providing products to the growing market for e- vehicles and medical equipment. The company has obtained the ISO 9001:2015 and ISO 1400:2015 certification maintaining its pursuit in consistently providing high quality products while observing effective environment management systems.

Segment/Product Wise Performance

Your company is engaged in manufacture of polymer alloys and blends which is considered as a single segment. During the year 2024-25, the Company achieved a turnover of 920 MT. The Company developed 17 new customers and 78 new products.

Market and Outlook

The Company is developing import substitution and specialty products to suit the needs of its customers which has helped in increasing the customer base. The Company is targeting a better product mix, operational efficiency and stringent control on the cost in order to increase productivity and operating margins. Continuous efforts are being made for efficient energy and raw material consumption. There has been a conscious effort in modernizing the plant and machinery which will lead to the production of newer and varied products to cater to the requirements of its customers.

Risks and Concerns

Some of the raw materials are imported from other countries. The volatility of exchange rate of rupee against US dollar accompanied by the problems in supply chain could have a significant impact on the supply and cost of raw Material.

However, the company has managed to mitigate the risk to an extent by stocking some quantities of the raw materials.

Internal Control Systems and their Adequacy

The Company has an adequate Internal Control System commensurate with the size and nature of its business. The preparation, designing and documentation of Policy on Internal Financial Control have been finalized and implemented which is being reviewed periodically and modified suitably to ensure controls. The internal audit functions are carried out by a separate firm of Chartered Accountants. This is supplemented through an extensive internal audit programme and periodic review by the management and Audit Committee.

Discussion on Financial Performance with respect to operational performance

The total revenue from the operations for the year ended March 31, 2025 amounts to Rs. 16.92 Crores as against Rs. 13.84 Crores in the previous financial year. The Company is taking efforts to reduce consumption, energy cost and wastage & get higher yield to achieve maximum profits.

Human Resources

Human Resources are always the most important and valuable asset to the Company. The Company has 29 permanent employees as on March 31, 2025 at factory and office level. Your company believes in investing in people to develop and expand their capability. The Company has been able to create a favorable work environment that motivates performance and customer focus. The Human Resource Department had arranged a number of training programs on Safety and Emergency preparedness and Awareness and Environmental policy training.

Key Financial Ratios

Return on Net Worth

The return on net worth has decreased to 2.93% as against 3.42% in the previous year due to decrease in the net profit during the year by the company.

Cautionary Statement

Statements in the Management Discussion & Analysis Report describing the Companys expectations, opinion, and predictions may please be considered as “forward looking statements” only. Actual results could differ from those expressed or implied. Companys operations should be viewed in light of changes in market conditions, prices of raw materials, economic developments in the country and such other factors.