Today's Top Gainer
Note:Top Gainer - Nifty 50 More
The Management presents its analysis report covering performance and outlook of the Company. The report has been prepared in compliance with corporate governance requirements as laid down in the listing agreement. The management accepts responsibility for the integrity and objectivity of the financial statement. However, investors and readers are cautioned that this discussion contains certain forward looking statements that involve risk and uncertainties.
1. INDUSTRY STRUCTURE AND DEVELOPMENT
During the year 2016-17 there is improvement in the working of the company and it able to have profit after Tax. The production and sales of cylinders and valves increased as compared to previous year and overall turnover of the company has increased. The cost control majors taken by the company has enabled it to lower the losses during the year.
2. OPPORTUNITIES AND THREATS
The Companys manufacturing unit is situated at Jaipur.
Under Pradhan Mantri Ujjwala Yojana (scheme) of the Central Government which was launched on May 1, 2016 and which aims to provide free LPG connections to the women belonging to BPL ( below poverty line) families in the country, company expect to get good flow of the orders from the government which provide a good opportunity for growth.
However, the technology up-gradation and propose use of alternate material for LPG cylinders along with supply of LPG through pipelines are the challenges to the Cylinders manufacturer. The location disadvantage of the manufacturing unit at Jaipur result into increased freight component on HR Coils also having a bigger challenge for the Company. Further delay in implementation of GST is affecting the Net realization price of Companies end products.
The Performance of the company during the year is as under: -
Management is expecting that as per present policy of the Central Government to provide LPG connection in rural areas under Pradhan Mantri Ujjwala Yojana (scheme), there would be continuous flow of the orders. However, the increase in input cost will put pressure on the company to quote competitive rates to match the prices of other cylinder manufacturer who are having the location advantage. With the implementation of GST w.e.f. 01st July, 2017 Company is hopeful that net NDP prices of its finished goods likely to be favourable.
5. INTERNAL CONTROL SYSTEM
The Company has adequate internal control system to safeguard the companys assets from any loss or damage, to control cost, prevent revenue loss and required financial and accounting controls and to effectively implement the applicable accounting standards.
6. RISKS AND CONCERNS
The management continues to monitor the risks concerning the company and take actions as appropriate to the situation.
7. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLEEMPLOYED
As on March 31, 2017 the company had 29 permanent employees at its manufacturing plants and administrative office.
We believe that people are the most valuable assets of the company as they contribute significantly to the achievement of business objectives. During the year, various HR measures were taken to make the HR policies up to the required business needs. The Company has strong and dedicated team of employees and they have shown commitment, competence and dedication in all area of business.
8. CAUTIONARY STATEMENT
Statement in this Management Discussion and Analysis Report describing the Companys objectives, estimates etc. may be "forward Looking Statement" within the applicable laws and regulations. Actual results may vary from these expressed or implied; several factors that may affect Companys operations include Raw Material