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
The company was mainly engaged in the business of manufacturing and selling LPG
Cylinders, Valves & Regulators and rendering refilling services of LPG Gas. The
Companys financial performance had started dropping 2-3 years ago. The working of our
company was adversely affected in previous 3 years due to Covid 2019 and oil companys
unsupportive policies. The Production of the Company got down which resulted heavy losses
and working capital of company was eroded. To come over this situation, and to meet
working capital requirement the company infused some funds by selling its investments
during the financial year 2021-22. The Business was operating under challenging
environment during the financial year 2022-23 due to various factors such as high cost of
raw material /supplies, high Interest Cost and the banks reducing the borrowing powers and
then stopping abruptly funding of the working capital have led to the recent negative
performance of the Company.
2. OPPORTUNITIES AND THREATS
Considering the unsatisfactory performance of the Cylinder and Valves & Regulators
Unit with continued operational losses in spite of attempts to turn it around, making it
unviable to continue running the Units and due to paucity of funds to run the
manufacturing unit and challenges being faced by the management in running the business
and the operations of the Company, the board of director of the Company considered and
approved the proposal for closure of operations at the Companys manufacturing unit
located at SP - 825, Road No. 14, V K I Area, Jaipur -302013. The LPG Gas Filling Plant
which was non-core additional activity of the Company given on Job work Basis to third
party was also disposed during FY 2020-21. The Companys manufacturing unit has been
closed with effect from 09th December, 2022.
The Plant and Machinery of the Company had remained close and hence getting obsolete
with the period of time. Hence it was not yielding any benefit to the Company. To reduce
the interest burden of the Company and pay off its creditors, the substantial Plant and
Machinery of the Factory Situated at SP-825, Road No. 14, VKI Area, Jaipur-302013 was
disposed off.
However, The Company is in process to appoint a consultant for setting up a new
business.
3. SEGMENT WISE OR PRODUCT WISE PERFORMANCE
The Performance of the company during the year is as under: -
(Rs. in lakhs)
PARTICULARS |
2022-23 |
2021-22 |
PBDAT |
(93.96) |
490.87 |
Profit After Depreciation |
(146.80) |
432.87 |
Profit After Tax |
30.92 |
400.11 |
During the year under review the production of Cylinders was 52,336 Nos. as compared to
the production of 65,689 Nos. during the previous year. There was no production of
regulators and valves during the year. During the year under review the sale of Cylinders
was 52,336 Nos. During the year under review the sale/consumption of Valves and Regulators
were 52,464 Nos. and 494 Nos. respectively. The Gross Sales during the year were recorded
as Rs. 931.51 lakhs against Rs. 1139.98 lakhs in the previous financial year.
4. OUTLOOK
The Companys manufacturing unit has been closed with effect from 09th
December, 2022. Plant and Machinery of the Factory Situated at SP-825, Road No. 14, VKI
Area, Jaipur-302013 was disposed off in one and more tranches. The Company might appoint a
consultant for setting up a new business and the company is in process of appointment of a
consultant for setting a new project.
Total income for the FY 2022-23 under review was Rs. 1401.68 Lakhs as against Rs.
2239.95 Lakhs in the previous FY 2021-22. The loss before tax for the FY 2022-23 is Rs.
-146.80 Lakhs as against Profit of Rs. 432.87 Lakhs in the previous FY 2021-22. The profit
after tax is Rs. 30.92 Lakhs for the FY 2022-23 as against Profit of Rs. 400.11 Lakhs in
the previous FY 2021-22.
5. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The internal control framework is designed to ensure proper safeguarding of assets,
maintaining proper accounting records and providing reliable financial information and
other data. This system is supplemented by internal audit, reviews by the management,
guidelines and procedures. 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. During the year under review, S.S. Surana & Co (FRN: 001079C),
were engaged as Internal Auditors of the Company. Internal auditor evaluated the
functioning and quality of internal controls and provided assurance of its adequacy and
effectiveness through periodic reporting. Internal audit was carried out as per internal
audit plan, which was reviewed by the Audit Committee of the Company
To maintain its objectivity and independence, auditor directly reports to the Chairman
of the Audit Committee of the Company. Further, the Statutory Auditors have also, in
compliance with the requirements of the Companies Act, 2013, issued an opinion with
respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls details of which may be referred
to in the Auditors Report attached to the Audited Financial Statements of Financial Year
2022-23.
6. RISKS AND CONCERNS
The management continues to monitor the risks concerning the company and take actions
as appropriate to the situation. The company is exposed to credit risk, liquidity risk,
market risk and commodity risk. The company has a risk management policy which covers
risks associated with the financial assets and liabilities. The companys risk management
is managed in close cooperation with the Board of Directors and focus is to assess the
unpredictability of the financial environment and to mitigate potential adverse effects on
the financial performance of the company. The Audit Committee has also been delegated the
responsibility for monitoring and reviewing risk management, assessment and minimization
procedures, developing, implementing and monitoring the risk management plan and
identifying, reviewing and mitigating all elements of risks which the Company may be
exposed to. The Board also reviews the risk management assessment and minimization
procedures.
The company has closed the operations at the Companys manufacturing unit located at SP
- 825, Road No.14, VKI Area, Jaipur -302013 w.e.f 9th December, 2022 due to
unsatisfactory performance of the company with continued operational losses. The company
has disposed off substantial Plant & Machinery in one or more tranches. These events
or conditions, indicate that a material uncertainty exists that may cast significant doubt
on the Companys ability to continue as a going concern. However, The Company is in
process to appoint a consultant for setting up a new business.
7. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING
NUMBER OF PEOPLE EMPLOYED
As on March 31, 2023 the company had 11 permanent employees at its manufacturing plants
and administrative office. The company have strong, motivated and dedicated team of
employees who is working continuously with great zeal and enthusiasm towards the growth of
the company and hence, as a token of gratitude the Directors wish to express their sincere
appreciation to all the employees for their support, co-operation and dedicated services.
During the year under review the Company has reduced its Human Power as the Company has
closed its operations and to reduce the cost of the company and also there were no
Contract labour for manufacturing activity employed after 9th December, 2022
due to inoperative manufacturing unit. Your Directors express their inability to retain
the employees due to the adverse and negative circumstances.
8. (i) Details of significant Changes (i.e. change of 25% or more as compared to
immediately previous year) in key financial ratios, along with detailed explanations
therefore:-
(ii) Detail of any change in Return on Net Worth as compared to immediately previous
financial year along with detailed explanations thereof:
Ratio |
2021-22 |
2022-23 |
Change (%) |
Debtors Turnover Ratio |
7.86 |
13.03 |
65.77% |
Inventory Turnover Ratio |
2.12 |
2.49 |
17.01% |
Interest Coverage Ratio |
3.98 |
-10.92 |
-174.37% |
Current Ratio |
1.82 |
2.10 |
15.71% |
Debt Equity Ratio |
0.75 |
0.02 |
97.32% |
Operating Profit Margin |
-16.81 |
-41.56 |
-147.23% |
Net Profit Margin |
35.10 |
3.27 |
-90.68% |
The return on Net worth during the year is 5.21% as compared to 5.27% in previous year.
The return on net worth has decreased due to loss incurred during the year.
9. CAUTIONARY STATEMENT
The statements in the "Management Discussion and Analysis Report" describe
your Companys objectives, projections, estimates and expectations which may be
"forward-looking statements" within the meaning of the applicable laws and
regulations. The actual results could differ materially from those expressed or implied,
depending upon the economic and climatic conditions, government policies, taxation and
other laws and other incidental factors. Company takes no responsibility for any
consequences of the decision made, based on such statement and holds no obligation to
update these in future.
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For and on behalf of the Board of Directors |
|
Sd/- |
Sd/- |
Place: Jaipur |
(Avinash Bajoria) |
(Preetanjali Bajoria) |
Date: 14.08.2023 |
Chairman cum Managing Director |
Whole-time Director |
|
DIN:01402573 |
DIN: 01102192 |
Registered Office: |
Address: 404, Nemi Sagar Colony, |
Address: 404, Nemi Sagar Colony, |
SP-825, Road No.14, |
Queens Road, Jaipur-302021 |
Queens Road, Jaipur-302021 |
VKI Area, Jaipur-302013. |
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CIN- L28101RJ1980PLC002140 |
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+91-9892691696
