Ishan Dyes & chemicals Ltd Management Discussions.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

A. INDUSTRY STRUCTURE AND DEVELOPMENT

The year under review started with a challenging situation arising due to outbreak of pandemic and resulted nationwide lockdown. The business operations for the Company during the year remained very volatile and dynamic due to shortage of manpower, disrupted raw material supplies, delays in international shipping cargo and other factors associated with lockdowns and outbreak of pandemic. However, systematic and proactive efforts of the management of your Company has supported its operations with a minimum disruptions. Inspite of various challenges and effect of the pandemic the operations of your Company has shown satisfactory performance and growth in terms of its turnover and profit. The Company has recorded turnover of Rs. 8398.70 Lakhs as compared to Rs. 8249.08 Lakhs for the previous financial year. Also the Company has recorded Profit after Tax of Rs. 1280.79 Lakhs as against Rs. 820. 84 Lakhs for the previous year.

Your Companys current product includes Phthalocyanine Blue range of products like CPC Blue, Pigment Alpha Blues and Pigment Beta Blue. All these products are having wide applications for various industrial purposes with good export demands. The products are being widely used in paints, textiles, inks, plastics, rubber and other industries and with the increased demand for essential products and also day to day fast moving consumer products the demand for the products of the Company has remained high and also likely to maintain the growth trend and stable demand going forward. The Company is working out plans to expand its market and its customer base as well as to introduce new grades of the products for increasing turnover and profitability. Also the Company is successfully in expanding export base and new clienteles.

B. OPPORTUNITIES, THREATS, RISK AND CONCERNS

Your Company has gained its position in the domestic as well as international markets due to its quality products and continuous improvements which in turn has helped us to develop and maintain long term relationship with the clients and further supported us to spot for the new opportunities. This systematic approach has delivered favorable results for the Company to grow at the steady rate by creating sustainable demand from satisfied customer base and repetitive orders from them and in turn increased profitability.

The situation arisen due to COVID 2019 has resulted into contradictions in GDP of most of the nations and also shown far reaching impact in global economies and trade in multiple ways. The global sentiments and economics will have an impact on the operations of the Company since the Company is concentrating on export markets. However with the rise in government spending, various fiscal incentives rolled out by large countries and high demand for the essential commodities are likely to benefit the business of the Company in terms of high and stable demand for the products of the Company. Besides that going forward, your Company also considers challenges and threats mainly on account of fluctuation in the prices of various raw materials which are linked to world petro products and commodity prices, foreign exchange fluctuations, environmental regulations, and general global demand situation. Availability of skilled manpower and contract work force would be another set of challenges to be managed carefully for the growth of the Company.

Your Company has identified the major thrust areas of sensitive business factors to concentrate on, which it believes to be critical for achievement of organizational goals. A well-defined structure has been laid down to assess, monitor and mitigate risk associated with these areas on a continuous basis.

C. OUTLOOKS FOR 2021-22.

The management of the Company is putting all efforts to maintain and increase the demand for the products of the Company. Also various cost control measures at all level of operations have been designed and implemented. During past couple of years, the Company had incurred significant amount of capital expenditure on modernization of plant and factory building which will result in overall efficiency improvement, cost savings, increased tonnage of production. All these factors will drive the growth during coming years for the benefits of the Company. Barring unforeseen circumstances, the management is confident of delivering improved results during the coming years. The management is also exploring various expansion plans and opportunities to diversify for creating value chain of business.

D. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

We have a strong integrated internal control system which is deemed to be adequate considering the nature and scale of our class of business.

E. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO THE OPERATIONAL PERFORMANCE

During the year under review, your Company has achieved satisfactory financial results and details are provided in Directors report. The Company was also successful in export business during the year ended by achieving export turnover of Rs.4823.57 Lakhs.

F. MATERIAL DEVELOPMENTS ON HUMAN RESOURCES

Human Resource programs and initiatives in the Company are aligned to meet the future business plans and needs. 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, customer focus and innovation. The Companys strategies are based, inter alia, on processes of continuous learning and improvements.

G. CAUTIONARY STATEMENT

The Management Discussion & Analysis describing the Companys objectives, expectations or forecasts may be forwardlooking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include the impact of Covid- 19 Pandemic, global and domestic demand and supply, input costs, availability, changes in government regulations, tax laws, economic developments within the country and other factors such as litigation and industrial relations

By order of the Board of Directors
14th August, 2021 For ISHAN DYES & CHEMICALS LIMITED
Ahmedabad
Piyush N. Patel
Chairman & Managing Director
DIN: 00450807