Kkalpana Plastick Ltd Management Discussions.

World Economic Overview:

The world GDP growth decelerated to 2.9% in 2019. It is expected that world GDP for 2020 will be (-) 3%.

The world economy has been very badly hit by COVID-19 and there is no sign of the pandemic receding for now.

Indian Economic Overview:

The Indian economic growth rate for 2019-20 was 3.2%. It trodded downwards journey by more than 3%.

The IMF has projected Indias GDP growth rate for 2020-21 at 1.9%. The Indian economy is sure to face establishment closure, massive job loss and purchasing power erosion (both individual and corporates).

Industry Overview:

Your Companys customers are wide based and it caters mainly to cable and wires industries.

Industry Structure and Developments:

India will need to generate .5KW of electricity per person to provide reasonable level of living for its population. Based on current population, projection for 2027 will be 710GW as against 280GW at present. Therefore, the capacity increase for generating power electricity must increase by 2.5%.

The government of India is very sincere in its approach towards increase in generation of electricity and your Company will be benefitted because it caters mainly to wires and cable industries. The increase in electricity generation will also require increased infrastructure for power distribution through cables n wires.

Companys Performance:

Financial Performance for 2019-20 is summarized below:-

Particulars 2019-20 2018-19
Sales & other Income 44.66 47.11
Profit/ (Loss) before Depreciation , Interest & Tax 3.02 10,94
Less : Depreciation 0.17 0,09
Interest 0.00 0,00
Profit/ (Loss) before Tax 2.86 10,85
Less : Provision for Tax
Current Tax 2.35 3,89
Deferred Tax (0.01) 0,00
Tax Expense for earlier years 0.00 0,00
Profit/ (Loss) After Tax 0.52 6,96
Add: Profit brought forward from previous year 93.88 86,92
Balance Carried to B/S 94.40 93,88

Important Ratios in respect of the year ended 31st March, 2020 are as below:

a) Debt Equity Ratio - 0.00% in F.Y. 2019-20 (it was 0.00% in F.Y. 2018-19)

b) Current Ratio - 50.51% in F.Y. 2019-20 (it was 68.66% in F.Y. 2018-19)

c) Interest Coverage Ratio - 0.00% in F.Y. 2019-20 (it was 0.00% in F.Y. 2018-19)

d) Debt Service Coverage Ratio - 0.00% in F.Y. 2019-20 (it was 0.00% in F.Y. 2018-19)

e) Stock Turnover Ratio - 0.00% in F.Y. 2019-20 (it was 0.00% in F.Y. 2018-19)

f) Return on equity (RoE) - 0.08% in F.Y. 2019-20 (it was 1.04% in F.Y. 2018-19)

Future Outlook:

The overall scenario is very bleak mainly due to COVID-19. Further, because of expected cash crunch in the market (although banks have surplus funds) the purchasing power (both for individual and corporates) will erode significantly.

Opportunity and Threats:


The Company sees light at the end of the tunnel because India will have to generate 710GW from the present level of 280GW. Increase in level of generation of electricity will require increase in distribution through wires and cables and your Company mainly caters to wires and cable industry.


Since it is expected that Indias GDP growth rate is 1.9%, the Indian economy as a whole will see glooming scenario. This position will affect Kkalpana Plastick Industries Limited also.

Segment wise or Product wise Performance:

The Company operates in single business segment of plastic compounds. However, the company has not undertaken any operation during the Financial Year 2019-20.

Risks and Concerns:

Based on operations of the Company, new risks, if any, are identified and steps are taken to mitigate the same. At Kkalpana Plastick, management ensures that risks are adequately measured, estimated and enrolled to enhance shareholders value.

Internal Control System:

The Company has a well-established internal control systems and procedures covering all functional areas. It provides, among others, a reasonable assurance that transactions are executed with management authorization and ensures preparation of financial statements in conformity with established accounting principles and that the assets of the Company are adequately safeguarded against significant misuse or losses.

The Audit Committee of the Board periodically reviews the terms of reference and the adequacy of internal control system, significant observations and their disposals and remedies if any.

Human Resources and Industrial Relations:

The Company appreciates performance of the employees for the year and anticipate the much more for the years to come. Your Company believes in employee empowerment across the entire organization in order to achieve organizational effectiveness. The Industrial relations of the Company was cordial and there were no instances of employee disputes arising during the year.

Cautionary Statement:

Certain statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, estimates, and expectations and others may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws, natural calamities and so on over which the company does not have any direct control.

For and on Behalf of the Board

Registered Office:
2B, Pretoria Street,
Date: 26th June, 2020 Deo Kishan Kalwani Samir Kumar Dutta
(DIN:03363450) (Din: 07824452)
Whole Time Director Director