<dhhead>MANAGEMENT
DISCUSSION AND ANALYSIS REPORT </dhhead>
INDUSTRY
STRUCTURE AND DEVELOPMENT
Agriculture
is the third largest sector of Indian Economy which contributes around 20.50% of total GDP
of the Country. Fertilizer Industry, with the emerging scenario, plays vital role in the
growth of Agriculture Sector.
Sustainable
development is the need of the time and it can only be achieved through balanced growth of
both agriculture and Industrial sector. There is a popular saying Countries
are known for their greenery, and India is one of those country. Growth of agriculture and
growth of fertilizer Industry supplement each other. India being the second-largest
consumer of fertilizers in the world with an annual consumption of more than 55 million
metric tons. Fertilizer Industry, with the emerging scenario, plays a vital role in the
growth of agriculture sector. The balanced use of chemical fertilizers is important not
only for increasing agricultural productivity but also for sustaining soil fertility.
OPPORTUNITIES
RELATING TO THE BUSINESS
FERTILIZERS
POLYMER
Due
to shortage of working capital and financial crises face by the company since long it may
not be feasible to continue to maintain plant. Further during the year company has
disposed off the inventory lying with the company.
During
the current financial year 2023-24, Company has entered into agreement with Adarsh Agro
Fertilizer, Naiabadi, Mandsour (M.P.) for disposal ofundertaking and entire assets of the
Company situated at Village Sandala Tehsil Badnawar District Dhar (M.P.) Company has
already obtained members approval by way of Special Resolution passing through postal
ballot on 21st March, 2022 and further sale proceed shall be utilized to pay
the outstanding amount of financial institution and creditors. After payment to
outstanding loan of financial institution board may think about to start new business
line.
FINANCIAL
PERFORMANCE
Overview
During
the financial year 2022-23, revenue from operation of the Company is Rs. 241.69 Lakhs as
against Rs. 489.62 Lakhs in the previous year, recording a decrease of 50.64%. Further
during the financial year, Company incurred net loss after tax of Rs. 98.28 lakhs as
against previous year in which Company has incurred net loss amounting to Rs. 26.87 Lakhs.
The
revenue and profitability of the Company was impacted to large extend and due to financial
crunch the Company is unable to maintain even its minimum bearing commitments.
SEGMENT
WISE PERFORMANCE
Your
Company is multi segment Company as it deals in Fertilizers and Polymers. During the year
under review the performances in terms of revenue of the segments were as follows:-
Fertilizers
During
the year Revenue from Fertilizer segment was Rs. 122.03Lacs as compared to previous year
Rs. 41.06Lacs and earned Net Profit of Rs. 5.02 Lacs as compared to previous year Net Loss
of Rs. 31.13 Lacs.
Polymer
During
the year Revenue from Polymer segment was Rs. 119.66 Lacs as compared to previous year Rs.
448.65 Lacs and incurred Net Loss of Rs. 103.30 Lacs as compared to previous year Net
Profit of Rs. 4.26 Lacs.
INDUSTRY
OUTLOOK
India
fertilizer market is expected to grow at a CAGR of 4.7% between 2023 and 2028, reaching a
projected value of USD 1160.18 billion by 2028. The market growth is being driven by
increasing demand for food production and improvements in agriculture processes.
RISK
MANAGEMENT
Risk
Management plays a key role in business strategy and planning discussions. It has in place
a mechanism to identify, assess, monitor and mitigate various risks associated with the
business.
INTERNAL
CONTROL SYSTEM AND THEIR ADEQUACY
The
companys internal control/supervisory system is established to ensure that the board and
management are able to achieve their business objectives in a prudent manner, safeguarding
the interest of companys shareholders and other stakeholders whilst minimizing the key
risk such as fraud, misleading financial statements, breach of legal and contractual
obligations, unauthorized business activities.
DISCUSSION
ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
Financial
and Operational performance forms part of the Annual Report and is presented elsewhere in
the report.
HUMAN
RESOURCES
The
focus is on the capability development, performance management and employee engagement.
This is expected to improve the cost competitiveness through greater levels of employee
participation, commitment and involvement. As at 31st March, 2023, Company had
only five employees.
DETAILS
OF SIGNIFICANT CHANGES IN THE KEY RATIOS AND RETURN ON NET WORTH
As
per the amendment made under Schedule V to the Listing Regulations read with Regulation
34(3) of the Listing Regulations, details key financial ratios and any changes in return
on net worth of the Company are given below:
Particulars |
2022-23 |
2021-22 |
Change
(in %) |
5.4pt> Debtors
turnover |
1.40 |
2.13 |
34 |
Inventory
turnover |
1.19 |
2.28 |
48 |
Interest
coverage Ratio |
0 |
0 |
0 |
Current
Ratio |
0.29 |
0.30 |
3 |
Debt-Equity
Ratio |
-2.09 |
-3.19 |
34 |
Operating
profit margin (%) |
0% |
0% |
0 |
Net
profit margin (%) or sector-specific equivalent ratio as applicable |
-0.16% |
-0.09% |
83 |
Change
of more than 25% in Key Financial Ratios is due to operating losses incurred by the
Company.
DETAILS
OF CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR
There
was change of -18.30% in Return of Net Worth from the previous financial year.
CAUTIONARY
STATEMENT
Statements
in the Management Discussions and Analysis Report and Boards
Report describing the Companys
objectives, expectations, or predictions may be forward looking within the meaning of
applicable laws and regulations. Actual results may differ materially from those expressed
or implied. Important factors that could influence the Companys
operations include competition, government policies and regulations.
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