Your Company is engaged in the business of manufacture of Spirally wound HDPE/PP shells/ sleeves and pipes are of two types, one is Profile pipes and another is solid wall pipes and also manufacturing combination of the both. The manufacturing facilities of the Company are at Daman, U.T.
These Pipes ranging from 300 MM to 3600 MM diameter and Profile pipes are used in water sewerage & effluent disposal schemes, ocean out-fuel, etc. Your Company can also manufacture HDPE/PP Tanks of sizes ranging from 5000 Liters to 80000 Liters with varying wall thickness depending on load distribution and application.
The main objects of your Company to carry on the business of manufactures , dealers, importers, exporters, buyers & seller of all kinds plastic, polypropylene, polyethylene and polymers. As stated elsewhere, the immediate object of the Company is to set up facilities for the manufacture of large diameter non-pressure HDPE/PP tanks and vessels.
The year 2022-2023 has been progressive and it is hoped to scale greater heights.
BUSINESS OUTLOOK:
The industry of moulded plastic products is facing various constraints. The margins are at lowest level and acute competition from un-organised sector and local small players adversely affected the revenue of the Company. The opportunities for new investment and expansion in the moulded plastic products during present time of Covid-19 pandemic, which is yet to subside and in the wake of uncertainty of revival of the industry, are not encouraging.
OPPORTUNITIES AND THREATS:
The Companys products depend on the growth of the Global economy and rise in the purchasing power of the population. Lack of Govt. backing, frequent policy change, changes in raw material prices are major constraints. In view of the anticipated growth in the demand for the products of the company in the years to come, opportunities for the company to improve its performance is bright.
RISK MANAGEMENT:
Risk Management is an important business aspect in the current economic environment and its objective is to identify, monitor and take mitigation measures on a timely basis in respect of the events that may pose risks for the business.
The Company has a robust Risk Management Policy and Procedure in place for effective identification and monitoring of risks and implementation of mitigation plans. The Risk Management Committee reviews and monitors the identified risks and mitigation plans at regular interval. Some of the risks identified and analyzed by the Management are as under:
The Audit Committee and the Board are apprised of the significant risks and mitigation efforts made by the Management in its quarterly meetings.
SEGMENT REPORTING UNDER ACCOUNTING STANDARDS 17:
Your Companys main business is "Polymer Processing" and all other activities of the company revolve around this main business. As such there are no separate reportable segments within the Company and hence, the segment wise reporting as defined in Ind AS 108-Operating Segments (Accounting Standards 17) is not applicable to the Company.
HUMAN / INDUSTRIAL RELATIONS:
The Company is well managed by Managing Director of the Company assisted by highly technical professionals. Since the very inception of the company, the industrial relation aspect of the company has been very cordial at all locations of the company. The Company believes that manpower is the most valuable primary resource for the growth of the organization. Therefore the company has recruited competent managerial personnel and taken steps for strengthening their efficiency and competency, through their involvement in the companys development and by installation of effective system for improving productivity.
The Number of permanent employees on the rolls of the Company as on 31st March, 2023 was 23 Nos. as against 26 Nos. on 31st March, 2022.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:
The company maintains adequate internal control systems, which provide among other things, reasonable assurance of recording the transaction of its operations in all material respects and of providing protection against significant misuse or loss of Companys assets. Apart from self monitoring of internal controls, Internal Auditors have expressed their satisfaction about the adequacy of the control systems and the manner in which the Company is updating / upgrading its systems and procedures.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
Highlights :
2022-23 | 2021-22 | |
Sales & other receipts | 1289.87 | 1307.20 |
Gross Profit/(Loss) before depreciations | 427.79 | 572.61 |
Less: Depreciation | 11.74 | 7.15 |
Profit (Loss) from regular Activities | 179.17 | 181.03 |
Extraordinary/Exceptional items | 1.15 | -- |
Profit / (Loss) before taxation | 180.32 | 181.03 |
Provision for tax | 42.97 | 37.32 |
Profit /(Loss) after taxation | 137.36 | 143.71 |
Earnings Per Share | 1.99 | 2.09 |
During the year the sales turnover of the Company was 1289.87 lacs against 1307.20 lacs the sales of the previous year.
CAUTIONARY STATEMENT:
Statement in this report on management Discussion and Analysis describing the companys objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of applicable security laws or regulations. These statements are based on certain assumptions and expectation
of future events. Actual results could however differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and domestic demand and supply conditions, finished goods prices, raw material costs and availability, change in Government regulations and tax structure, economic developments within India and the countries with which the company has business contacts and other factors such as litigation and industrial relations.
The Company assumes no responsibility in respect of forward looking statements which may be amended or modified in future on the basis of subsequent developments, information or events.
On behalf of the Board
Soniya P. Sheth Managing Director
DIN:02658794
Place: Mumbai Date: 12th August, 2023
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