tecil chemical hydro power ltd share price Management discussions

Your Directors have pleasure in presenting the Management Discussion and Analysis report for the year ended on 31^st March 2023.

OPERATING AND FINANCIAL PERFORMANCE:

Operating & Financial performance has been given in details in Directors Reports.

INDUSTRY STRUCTURE, DEVELOPMENT:

Kerala has good opportunity in the hotel and hospitality sector.

OPPORTUNITIES AND THREATS:

The Company under its new management has plans to start an industrial and recreational park at the existing land of the Company at Chingavanam, Kottayam, Kerala comprising of hotel, hospital, shopping complex etc.

SEGMENT-WISE PERFORMANCE & PRODUCT-WISE PERFORMANCE:

Company has not started it

BUSINESS OUTLOOK:

Our Company has altered the object clause of the Company in the Extra-ordinary General meeting held on 23rd February, 2018 to include new objects in the line of tourism and hospitality industry. The commencements of new activities are pending for approval from the Department of Revenue, Government of Kerala.

RISKS AND CONCERNS:

The commencements of new activities are pending for approval from the Department of Revenue, Government of Kerala.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has in place well defined and adequate internal controls commensurate with the size of the Company and the same were operating effectively throughout the year. The Company has an in-house Internal Audit Function (IA). To maintain its objectivity and independence, the IA Department evaluates the efficacy and adequacy of internal control system, its compliance with operating systems and policies of the Company and accounting procedures at all locations of the Company. Based on the report of IA function, process owners undertake corrective action in their respective areas and thereby strengthening the controls. Significant audit observations and corrective actions thereon are presented to the Audit Committee of the Board. The Company has in place adequate internal financial controls commensurate with the size, scale and complexity of its operations. The Company has policies and procedures in place of ensuring proper and efficient conduct of the business, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and timely preparation of reliable financial information Pursuant to Section 138 of the Companies Act, 2013, the Company has appointed Mr. MK Suresh, Chartered Accountant, Kochi as Internal Auditor of the Company. Pursuant to Section 134 (5) (e) of the Companies Act, 2013, the Board of Directors has adopted Internal Financial Control Policy which has also been hosted on Companys Website.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATION PERFORMANCE:

The Company will see envisage its growth in future because of continuous hard core efforts put by your Companys management to start the operations.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT INCLUDING NUMBER OF PEOPLE EMPLOYED:

The Company values and appreciates the dedication and drive with which its employees have contributed towards performance during the year under review.

CAUTIONARY STATEMENT:

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be ‘forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of their dates.

KEY FINANCIAL RATIOS

Particulars	FY2023	FY2022	%Change
Return on Capital employed	0.31	0.10	21.40
Return on Equity Ratio	8.03	2.39	5.64
Current ratio	0.20	0.25	-4.82
Debt equity ratio	(0.74)	(0.75)	0.99
Return on investment	31.01	9.60	21.40

MOVING AHEAD

Your Company is confident to continue to outperform the current achievements and provide sustainable growth to all the stakeholders in the future.

	BY ORDER OF THE BOARD OF DIRECTOR
	For Tecil Chemicals and Hydro Power Limited
	Sd/-	Sd/-
Place: Kochi	Varghese Kurian	Shaji K Mathew
Date: 31st August 2023	Chairman and Manging Director	Director
	(DIN: 01114947)	(DIN: 01866682)