Sarthak Industries Ltd Management Discussions

Industrial Structure and Developments

Your Company is primarily engaged in manufacturing of LPG Cylinders. The LPG Cylinders are supplied to Oil Companies like Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Ltd., Bharat Petroleum Corporation Ltd. etc. and also to Private Companies. Apart from this, Company is also engaged in trading of agri-commodities, non agri-commodities and other businesses on opportunity basis. As a major of diversification, the Company also decided to enter into IT sector through acquisition by equity investment in existing IT Company. The Company searching out suitable investment opportunities in existing IT Sector Company.

During the year 2023-24, the Companys performance showing decreasing trend in turnover and in profitability as compared to last year. Looking at global economic slowdown and other factors, the performance of Company is satisfactory. The Management is hopeful that Companys future is bright in the coming years.

Accordingly as of 31 March 2024, based on the facts and circumstances existing as of that date, the Company does not anticipate any material uncertainties which affects its liquidity position and also ability to continue as a going concern. The management will continue to closely monitor the evolving situation and assess its impact on the business of the Company.

Depending on market opportunities the Company is undertaking Merchant Trading activities of various commodities.

Based on the facts and circumstances existing as of that date, the Company does not anticipate any material uncertainties which affects its liquidity position and also ability to continue as a going concern. The management will continue to closely monitor the evolving situation and assess its impact on the business of the Company.

The future performance of your Company would depend to a large extent on its ability to successful diversification, market of commodities. We are hopeful that through the combination of market developments and expansion activity, there will be healthy growth over the next few years.

Your Company has identified two business segments in line with the Accounting Standard on Segment Reporting. These are:

The segment wise performance in detail is given in Note No. 44 to the audited accounts of the Company as available in this Annual Report.

Looking ahead to 2024, Indias economic activity and GDP growth are expected to remain resilient despite ongoing geopolitical uncertainties. As a result, India is poised to become one of the major economies in the world with a promising growth outlook. The Management is hopeful that in future, the Company will grow its manufacturing and trading activities and will get good orders for the manufacturing of cylinders as well as repairing of old cylinders.

Your Company anticipates sustained demand growth. The outlook for 2024 has been examined closely by your Company through the broad dimensions of demand drivers.

Profitability may be affected on account of competition from existing and prospective manufacturers of the Companys products. The Company is exposed to risks from Change in policy of similar companies which are major buyers for the Companys product, further increase in input costs, higher levies, and changes in Govt. Policies/laws of land, etc. may affect profitability of the Company.

The Company maintains adequate internal control systems, which provide reasonable assurance of recording the transactions of its operations in all material respects and of providing protection against significant misuse or loss of Company assets and compliance with applicable laws and regulations, etc.

The adequacy of the same has been reported by the statutory auditors of your Company in their report.

The performance of the Company for the financial year 2023-24 is summarized below:

(Rs. in Lacs)

(Rs. in Lacs)

Your Company considers the quality of its human resources to be the most important asset and constantly endeavors to attract and recruit best possible talent. Our training programs emphasize on general management perspective to business. The Company continues to empower its people and provide a stimulating professional environment to its officers to excel in their respective functional disciplines.

The industrial relations of the Company continue to remain harmonious and cordial with focus on improving productivity and quality.

The number of permanent employees on the rolls of Company as on 31.03.2024 is 20.

Details of key financial ratios are as follows:

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may constitute "forward looking statements" within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.