Shri Gang Industries & Allied Products Ltd Management Discussions.


FY 2019-2020 was a year of synchronized slowdown in both the advanced as well as developing economies across the world. The escalation of the tariff war between the US and China for major part of the year led to significant pressure on global trade. The US economy grew at a relatively strong rate of 2.3%. The Chinese growth engine too slowed down with exports under pressure. However, due to its Government supported infrastructure investment drive, the economy recorded a moderate growth rate and stood at 6.1%. At the same time, the Eurozone continued to witness staggered growth with pressures from the Brexit uncertainty as well as political uncertainty in some of its member states. The trade truce or partial deal between the US and China in the second half of the year brought along expectations of a revival in global trade and overall economic growth.

However, the rapid spread of the COVID-19 pandemic across the world and the ensuing lockdown in several countries brought unprecedented testing times for the entire global economy as the financial year ended.


The Indian economy continued with its slow growth trend, with quarterly growth rates trending downwards through the year. The decline was led by a slowdown in the key construction sector, a restricted real estate space and persistent downturn in the automotive sector. The fourth quarter witnessed a growth rate of 3% - the lowest in almost a decade. It aptly highlighted the concern of deceleration in the domestic economy even before the impact of COVID-19 shock. The reasons for this consistent downward growth trajectory are multi-fold. The large-scale defaults and governance issues in few large non-banking financial Institutions resulted in liquidity squeeze in the corporate debt markets. This not only hurt some of the larger corporates, but also severely impacted the mid and small-size companies as the lending channels practically froze. At the same time, the vagaries of the monsoon - extended monsoon in some regions and deficit rainfall in others - also adversely impacted the rural sector. The easy monetary policy regime implemented by the Reserve Bank of India as well as measures taken by the Central Government like sharp reduction in corporate tax rates have not helped the economy get back to its growth trajectory.

On a relative basis, the Indian currency was stable for most part of the year. It faced significant downward pressure in the last quarter on bouts of increased volatility across global financial markets with the rising uncertainty around COVID-19.


Shri Gang Industries and Allied Products Limited is engaged into the business of manufacturing and Sale of Vanaspati, Refined Oils and Bakery Shortening. It manufactured these products under its brands “Apna” and “Mr. Baker” and the sales were mainly in the State of Uttar Pradesh. The manufacturing activities at factory premises was suspended with effect from March 25, 2010 and accordingly “Lay Off” was declared.

Thereafter the company had submitted a Modified Rehabilitation Scheme to Honble BIFR so that the company could resume its operations and come out of sickness. Honble BIFR and Government of Uttar Pradesh had sanctioned a rehabilitation scheme for the revival of the company. As per the scheme, the company has to pay only the principal past dues of Commercial Tax Department, PICUP and Paschimanchal Vidyut Vitran Nigam Ltd (PVVNL) over a period of 12 years.

Based on these developments the company resumed its manufacturing operations in its Vanaspati unit on a limited scale. However in the current year no production was carried out in the unit as the plant requires technological up gradation and addition of new equipment so as to economize on the cost of production based on the prevailing industry standards. Otherwise company would have incurred more losses..

As a part of the rehabilitation scheme the company is setting up a grain based Distillery unit with Bottling Plant for IMFL & Country Liquor at Sandila, Dist. Hardoi. The company has already been allotted land by UPSIDC in Sandila Industrial Area for setting up the unit.

The company has received Environmental Clearance for the Distillery Unit from the State Level Environment Impact Assessment Authority, Uttar Pradesh. As regards, the Bottling Unit, the company has obtained Consent to Establish from the UP Pollution Control Board and the commercial production was expected to be commenced in the FY 2019-2020 in the Bottling Unit but due to the outbreak of COVID-19 pandemic, the same was delayed by about 3 months.

The setting up of the new unit would help in the revival of the company.


The risks and opportunities of all corporations are inherent and inseparable elements. Directors and management of the Company take constructive decisions to protect the interests of stakeholders.

The inconsistent Government policies relating to import duties on edible oils as well as Vanaspati and Bakery shortening is biggest threat to the industry.


Particulars FY 2019-2020 FY 2018-2019
(Amount in Rs.) (Amount in Rs.)
Revenue from operation/ segment performance 2,802,914 50,477,750
Total Expenditure 38,937,553 74,067,295
Earnings before interest, tax, depreciation and amortization [EBITDA] (9,544,487) 38,024,069
Profit after Tax [PAT] (36,134,639) (25,501,637)


The company in near future would technologically upgrade its manufacturing unit for Vanaspati and Refined Oils so that it can compete with its peers in the market. Apart from this, company is setting up a Distillery and Bottling Unit for IMFL & Country Liquor at Sandila, Dist. Hardoi and the production in the bottling unit of the company has commenced in the month of July 2020. All this would aid the revival of the company.


Every business has inherent element of uncertainties owing to uncertain factors and managing risk is very critical for success of the enterprise. The Company has defined risk management policy at the Board level, based on the pre-identified types of risks, the risk events or factors that require regular assessment.

The company does not foresee any major risks except for the change in Government Policy with respect to alcohol production and consumption in India.


Your Company recognizes that people are the prime assets of the organization. Your Companys talent pool plays a key role in commitment to deliver quality products and services. The Company continues to focus on attracting and retaining right talent with right opportunities to employees.

Industrial relations during the year has been cordial and contributed to mutual development. Company maintained healthy, cordial and harmonious industrial relations at all levels. The Board of Directors and management wish to place on record their appreciation of the efforts put in by all employees to achieve good performance.

There was not any case pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 was reported during the year.


The Cash Flow Statement of the Company for the year under review, in terms of Regulation 34(2) of the (Listing Obligations and Disclosures Requirements) Regulations, 2015 is annexed to the Annual Accounts of the company which forms part of the Annual Report.


The financial charges for the financial year ended on March 31, 2020 were Rs. 244.35 lakh. This is mainly on account of interest payable on the unsecured loan taken by the company.


As on March 31, 2020 the Reserves and Surplus in the Balance Sheet were negative at Rs.7,748.39 Lakh as compared to the negative balance of Rs. 7,387.04 Lakh during the Financial Year 201819.


Earnings per share of the company is negative at (4.56) as against the Earning Per Share of (3.22) of last year.


The Company has well-equipped and effective internal control systems in place that match the scale of its sector and the complexity of the market it works in. Such stringent and detailed controls ensure the effective and productive use of resources, to the degree that the Companys assets and interests are safeguarded, transactions are approved, registered and properly reported, and checks and balances guarantee reliability and consistency of accounting data.

The Audit Committee and the Board reviews the performance of the audit and the adequacy of internal control systems and compliance with regulatory guidelines. The Management takes corrective actions on basis recommendations received from internal auditor and the audit committee.


Statements in the Management Discussion and Analysis, describing the Companys growth prospects, are forward-looking statements. The actual results may vary, depending upon economic conditions, raw-material prices, government policies, regulations, tax laws and other incidental factors.

By Order of the Board

For Shri Gang Industries and Allied Products Limited

Sd/- Sd/-
Syed Azizur Rahman Sunil Goel
Whole Time Director Whole Time Director
DIN: 00242790 DIN: 01229459
Add: Flat B-104 (FF), Ananda Apartments, Add: 81-A/41, Punjabi Bagh,
Sector-48, Noida, Delhi- 110026
Uttar Pradesh- 201301