Gujarat Petrosynthese Ltd Management Discussions.

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 14001:2015 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.

Your company has been showing a continuous and steady growth in Turnover over the past few years from 1113 MT in the year 2015 -2016 to 1727 MTs in 2019-2020. During 2020-2021, the company was shut down from March 24, 2020 to May 4th 2020 during the first quarter due the covid 19 lockdown and sold only 88 MTS. The year ended with a sales of 1563 MTs

In the last financial year, the Company has developed 15 new customers and 57 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. It is waiting for customer approval for some of the products which will boost the sales.

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. Your company, barring unforeseen circumstances, expects to further improve the turnover and performance.

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 due to the Covid 19 pandemic 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 31,2021 amounts to Rs. 19.35 Crore as against Rs. 20.21 Crore 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 32 permanent employees as on 31st March, 2021 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

Particulars of Ratio 31.03.2021 31.03.2020
Debtors Turnover 9.21 9.88
Inventory Turnover 14.28 23.99
Interest Coverage Ratio - -
Current Ratio 5.83 6.86
Debt Equity Ratio - -
Operating Profit Margin (%) (5.57) (5.22)
Net Profit Margin (%) 25.92 7.38

Return on Net Worth

The return on net worth has escalated to 18.5 % as against 6.75 % in the previous year due to exceptional gain 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.

For and on behalf of the Board of Directors
Ms. Urmi N. Prasad Ms. Charita Thakkar
Jt. Managing Director Jt. Managing Director
DIN :00319482 DIN :00321561
Date : 12th August, 2021 Place : Hyderabad. Place : San Francisco