Rubber Products Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Company is principally engaged in the business of manufacturing rubber products. Industrial rubber market is a natural polymer of Isoprene founded in the latex sap of various plants. Rubber is basically a hydrocarbon polymer, which is found naturally in sap of several plants and can also be made synthetically.

During the year ended 31^st March, 2021, the trade was disrupted due to outbreak of Covid-19 in domestic as well as international markets adversely impacting volume growth. FY20 was a witness of the start of the COVID-19 pandemic. However, FY21 was simply about the COVID-19 pandemic and its impact on individuals, communities, companies and nations. India too faced an uncertain FY21. The fiscal year began with a lockdown leading to multiple socio-economic challenges, such as mass exodus of the migrant labour population, subdued demand as consumers became cautious, job losses and reduced salary. These challenges continue to linger during the current year and may continue for a few more quarters. Your company is continuously adapting to the emerging situation with resilience.

2. OPPORTUNITIES AND THREATS:

Opportunities: Asia Pacific leads production of global rubber industry with the automobile sector leading the growth. With the rise in population, large manufacturing base of the automobile industry and the availability of competitive labour, India offers great opportunities for rubber product manufacturers. With increasing R&D investments backed by strong infrastructure, the country is poised to become a leader in rubber products manufacturing in the years ahead.

The management of the Company is well equipped with the vision to take company towards high growth with optimum utilization of resources of the Company in proper manner. Management is taking promotional efforts to boost the operational units of the Company which were shut down since past few years. With the ease of doing business and due to relaxations provided by the government this will accelerates the business of the company in terms of revenue. Company will try its best to have words and solve the problems faced by the stakeholders to create smooth flow of work.

Threats: The 2nd wave of covid-19 has emerged as a global pandemic that has spread across more than 200 countries worldwide and disrupted various industries around the world. The dynamics upon which various industries used to operate are set to change drastically. As the world continues to fight this crisis, multiple industries continue to experience a constant decline. Other Side, The Company was not performing well with respect to business production & making good profits. So the management of the Company facing so many external and internal challenges to streamline the business activities of the Company.

3. SEGMENT-WISE PERFORMANCE:

The Company does not have any segments in its business as of right now. It considers only one segments as of manufacturing of good quality Rubber Products.

4. OUTLOOK:

The Company expects financial year 2021-22 to be a challenging year in view of the second wave of Covid-19 which has caused a slowdown in some sectors during the first quarter of the financial year. To come out of the situation, management will take various measures to generate the target revenue every quarter. Even the Company started its manufacturing activities by following the norms provided by the authorities to have smooth flow of business. The Company will continue to look for opportunities in new adjacent products as well as opportunities for inorganic growth.

5. RISK AND CONCERNS:

1. Change in Government Laws:

Our ability to operate and compete may be adversely affected by any change in government legislation. In particular, price control, taxes and other laws and changesin laws and regulations or introduction of new laws and regulations relating to such matters may affect our operations.

2. We face significant competition in our business from other companies:

There are a number of competitors who have achieved greater market penetration than us. As a result, we may need to accept lower contract margins in order for us to compete against competitors that have the ability to accept the orders at lower prices. If we are unable to compete successfully in such markets, our relative market shareand profits could be reduced.

3. Any failure in our information technology systems could adversely impact ourbusiness:

Any delay in implementation or any disruptions in the functioning could disrupt our ability to track, record and analyze the work in progress, cause loss of data and disruptions of operations, including, among others, an inability to assess the progress of projects, process financial information or manage creditors / debtors or engage in normal business activities. This could have a material adverse effect on our business.

4. We require certain regulatory approvals in the ordinary course of our business, and the failure to obtain them in a timely manner may adversely affect our operations:

We require certain regulatory approvals, sanctions, licenses, registrations and permissions for operating our businesses. In connection with our business, we may require such approvals or their renewal from time to time. We may not receive such approvals or renewals in the time frames anticipated by us, which could adversely affect our business.

5. Natural calamities may have a negative impact on the Indian economy and harm OurCompanys business:

India has experienced natural calamities in recent years, including earthquakes, floods, drought and a tsunami and also a serious threats occurred due to the COVID-19. The coronavirus pandemic has had a far-reaching impact on businesses around the world and consequentially amongst the rubber industries as well. Almost, all sectors across the globe reported decline in demand as containment measures came into effect limiting economic activities and impacting livelihoods. In India, as elsewhere, the domestic rubber industry was hit hard by the onset of the pandemic. The company faced Covid-19 Pandemic which affected the working of the company and in generating revenue due to compulsory lockdown and less man power availability.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has in place Internal Financial Control system commensurate with size, scale and complexity of its operations to ensure proper recording of financial and operational information & compliance of various internal controls, statutory compliances and other regulatory compliances. During the year under review, no material or serious observation has been received from the Statutory Auditor of the Company for inefficiency or inadequacy of such controls. Further, subject to the matters described by Statutory Auditor in their report on the financial statements of the Company, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

During the year under review, total Income of the Company was Rs. 199.76 Lakhs and the Company has earned profit of Rs. 26.31 Lakhs in the current financial year. In previous year total income of company was Rs. 32.57 lakhs and company has suffered a net loss of Rs.210.65 Lakhs.

8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES INDUSTRIAL RELATIONS FRONT,INCLUDING NUMBER OF PEOPLE EMPLOYED:

During year 2020- 21, there was no employee on payroll of the Company.

9. FINANCIAL RATIOS ARE AS FOLLOWS:

On behalf of the Board of Directors

The Rubber Products Limited