Ramgopal Polytex Management Discussions

Management Discussion and Analysis Report on the business of the Company as applicable and to the extent relevant is given below: The statements in the "Management Discussion and Analysis Report" describe the Companys objectives, projections, expectations, estimates or forecasts which may be "forward-looking statements" within the meaning of the applicable laws and regulations. Actual results may differ substantially or materially from those expressed or implied therein due to risks and uncertainties. Important factors that could influence the Companys operations, inter alia, include global and domestic demand and supply conditions affecting selling prices of goods, availability and prices, changes in government regulations, tax laws, economic, political developments within the country and other factors such as litigations and industrial relations.


The global economy is going for a gradual recovery from the powerful blows of the pandemic and of Russias unprovoked war on Ukraine. China is rebounding strongly following the reopening of its economy. Supply-chain disruptions are unwinding, while the dislocations to energy and food markets caused by the war are receding. Simultaneously, the massive and synchronous tightening of monetary policy by most central banks should start to bear fruit, with inflationmoving back toward its targets. In IMFs forecast, global growth will bottom out at 2.8 percent in 2023 and would rise modestly to 3.0 percent in 2024. Global inflation will decrease, although more slowly than initially anticipated, from 8.7 percent in 2022 to 7.0 percent in 2023 and 4.9 percent in 2024. Notably, emerging market and developing economies are already powering ahead in many cases, with growth rates jumping from 2.8 percent in 2022 to 4.5 percent in 2023. The slowdown is concentrated in advanced economies, especially the euro area and the United Kingdom, where growth is expected to fall to 0.7 percent and –0.4 percent, respectively, in 2023 before rebounding to 1.8 and 2.0 percent in 2024. (Source: IMFs World Economic Outlook-2023 APR)


The Indian economy, however, appears to have moved on after its encounter with the pandemic, staging a full recovery in FY22 ahead of many nations and positioning itself to ascend to the pre-pandemic growth path in FY23. Yet in the current year, India has also faced the challenge of reining in inflation that the European strife accentuated. Measures taken by the government and RBI, along with the easing of global commodity prices, have finally managed to bring retail inflationbelow the RBI upper tolerance target. However, the challenge of the depreciating rupee, although better performing than most other currencies, persists with the likelihood of further increases in policy rates by the US Fed. The widening of the CAD may also continue as global commodity prices remain elevated and the growth momentum of the Indian economy remains strong. The loss of export stimulus is further possible as the slowing world growth and trade shrinks the global market size in the second half of the current year. Despite these, agencies worldwide continue to project India as the fastest-growing major economy at 6.5-7.0 per cent in FY23. These optimistic growth forecasts stem in part from the resilience of the Indian economy seen in the rebound of private consumption seamlessly replacing the export stimuli as the leading driver of growth. The uptick in private consumption has also given a boost to production activity resulting in an increase in capacity utilisation across sectors. The rebound in consumption was engineered by the near-universal vaccination coverage overseen by the government that brought people back to the streets to spend on contact-based services, such as restaurants, hotels, shopping malls, and cinemas, among others. (Source: RBI Economic Survey 2022-23)


During the financial year ended March 31, 2023, your Company was mainly engaged into the wholesale trading of commodities such as yarn and polymer etc.


The high volatility and low market prices contribute to reduced business activity and profitability in the polymer products industry.

In simpler terms, when prices for polymer products are both unstable and low, it can negatively impact businesses in this industry. This is because the uncertainty and low pricing can make it challenging for companies to make money and operate effectively.


Due to considerable volatility in cotton prices and low demand for fabrics, the yarn prices fell substantially. In some cases, the traders quoted prices below the contribution level.


The Company is in the business of trading in commodities for last three decades, which has made it a well known business house in the market in which the Company trades.

The business of the Company is affected mainly because of intense competition in the Global Markets.

The major threat would be slow down in the Indian as well as Global Economy or change in Economic Policies of the Indian Government.

Government Policies:

The Companys business also has a threat of sudden change in government policies like policies relating to import of certain products, change in customs duty structure, change in GST rates, etc. The Company monitors the changes in government policies on day-to-day basis and forms appropriate strategies to mitigate the impact on the Company while ensuring adequate compliances.

The Company hopes that once volatility in the prices of the commodities becomes stable, the Company will be able to get good business.


The Companys current business activity has only one primary reportable segment, namely trading in Commodities such as yarn, polymer, etc.


We are one of the oldest Companies in the field of Yarn & Polymers. Your Directors are confident and optimistic of generating additional revenues. The demand for this product will never be in slump due to the sheer size of the Domestic Market.

The Company hopes that once volatility in the prices of the commodities becomes stable, the Company will be able to get good business.


Business risk evaluation is an ongoing process within the Company. The assessment is periodically examined by the Board. Your Company has devised and implemented a mechanism for Risk management and has developed a Risk Management Policy. The

Policy provides for identification of internal and external risks and implementing risk mitigation steps. The said Policy is available on the website of the Company www.ramgopalpolytex.com.

Yarn and Polymer Industry has certain specific set of risk characteristics, which needs to be carefully evaluated and mitigated. In order to effectively manage the same, the Company has evolved proactive Risk Management System, which is adhered to. The risk management covers the entire process from competitors activities, new entrants etc.

This section lists forward-looking statements that involve risks and uncertainties.

1. Our revenues and expenses are difficult to predict and can vary significantly from period to period.

2. We may not be able to sustain our profit margins or levels of profitability.

3. The economic environment, pricing pressures etc. can negatively impact our revenues and operating results.

4. Currency fluctuations may affect the results or our operations.

5. Intense competition in the market can affect our pricing.

6. Changes in the policies of Government or political instability could impede liberalization of the Indian Economy andadversely affect economic conditions in India generally, which could impact our business and prospects.


The Company has an ideal internal control system in every area of its operations. The internal control system is commensurate with the size and nature of its business. Further, the Company has appointed M/s. Ravi Seth & Co. as "Internal Auditors" to ensure effectiveness of internal control system. The Company mitigate the lapses in internal control system, if the same are observed by the Internal Auditors.


Financial Results and performance for the year are elaborated in the Directors Report.


The Companys philosophy is to establish and build a high performing organization, where each individual is motivated to perform to the fullest capacity: to contribute to developing and achieving individual excellence and departmental objectives and continuously improve performance to realize the full potential of our personnel. Industrial relations are cordial and satisfactory. The employee strength as on March 31, 2023 was 7 (Seven).

The Key Financial Ratios of the Company are given as below:

Sr. No. Particulars

2022-23 2021-22
i. Debtors Turnover ratio (Times) 8.09 24.15
ii. Inventory Turnover (Times) 2.64 6.25
iii. Interest coverage ratio (9.65) (10.96)
iv. Current ratio 11.26 9.55
v. Debt equity ratio 0.04 0.05
vi. Operating margin ratio% (16.59)% (5.03)%
vii. Net Profit Margin (18.30)% (5.49)%

Explanations for variation of 25% or more in Key Financial Ratios:

Debtors Turnover ratio decreased due to average trade receivable for the year is higher than that of previous year.

Inventory Turnover ratio decreased due to decrease in turnover and maintenance of average inventory.

The changes in interest coverage ratio is due to increase in losses in the Current year.

Current ratio increased due to impact of decreased in Current Assets and Current Liability.

Improvement in Debt Equity ratio due to repayment of borrowings.

The changes in operation margin ratio is decreased due to lower selling price than the purchase cost in the current year.

The changes in Net profitratio is decreased mainly because of lower selling price than the purchase cost in the current year.



2022-23 2021-22
Return on net worth (%) (9.80)% (3.20)%

Reason for significant change:Return on equity decreased as the Company incurred huge loss in the current year.


Some of the statement contained within this Report may be "forward looking" in nature and may involve risks and uncertainties. The statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Companys actual results,performance or achievements could thus differ materially from those projected in any such forward-looking statements.

The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

By Order of the Board of Directors For Ramgopal Polytex Limited

Sanjay Jatia

Chairman & Managing Director (DIN: 00913405)

Place: Mumbai

Date: August 14, 2023

Regd. Office:

Greentex Clearing House, B-1, 2 & 3,Gosrani Compound, Rehnal Village, Bhiwandi, Thane – 421302.

CIN: L17110MH1981PLC024145 Tel: 22-61396800 Fax: 22-22851085

E-mail Id: rplcompliance@ramgopalpolytex.com Website: www.ramgopalpolytex.com