MANAGEMENT DISCUSSION AND ANALYSIS REPORT A. INDUSTRY STRUCTURE AND DEVELOPMENT Your Company has registered satisfactory performance during the financial year ended on 31st March 2015 with a turnover of Rs. 49.93 Cr with EBITDA of Rs. 3.02 Cr. The Profit after Tax for the year ended amounted to Rs. 2.16 Cr. During the year the management has successfully completed its new project for expansion of capacity and up-gradation of plant. The Management's proactive measures for efficiency and productivity improvements will over a period of time benefits to the operations of the Company in terms of higher productivity, new grades of the products, optimization of plant capacity and increase in exports.. First quarter of the year has also witnessed volume growth, increase in turnover and margins for the operations of the Company. Your Company maintained its position as one of the market leader in quality Phthalocyanine blue producer and exporter. Your Company's current products include various kinds of Phthalocyanine Blue range of products like CPC Blue, Pigment Alpha Blues and Pigment Beta Blue. All these products are having wide applications for various industrial purposes. B. OPPORTUNITIES, THREATS, RISK AND CONCERNS Your Company has gained its position in the domestic as well as international markets due to its quality products and continuous improvements which in turn has helped us to develop and maintain long term relationship with the clients and further supported us to spot for the new opportunities. This systematic approach has delivered favorable results for the Company to grow at the steady rate by creating sustainable demand from satisfied customer base and repetitive orders from them and in turn increased profitability. Going forward, your Company considers challenges and threats mainly on account of fluctuation in the prices of various raw materials which are linked to world petro products and commodity prices, foreign exchange fluctuations, environmental regulations, and general global demand situation. Availability of skilled manpower and contract work force would be another set of challenges to be managed carefully for the growth of the Company. Your Company has identified the major thrust areas of sensitive business factors to concentrate on, which it believes to be critical for achievement of organizational goals. A well-defined structure has been laid down to assess, monitor and mitigate risk associated with these areas on a continuous basis. C. OUTLOOKS FOR 2015-16 With the fall in crude oil and commodity prices, the management is of the view that overall cost of production will come down which in turn will support demand and opening up of growth in export market due to reduced pricing. The first quarter has delivered good results and the Company is having good order book position which will support volume growth in coming quarters of the year. Also fall in key raw material prices will benefit the Company due to reduction in cost of production. The management of the Company has charted out growth plan and anticipates volume growth and increased export business during current financial year. Barring unforeseen circumstances, the management is confident of delivering better results during current financial year. D. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY We have a strong integrated internal control system which is deemed to be adequate considering the nature and scale of our class of business. E. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO THE OPERATIONAL PERFORMANCE During the year under review, your Company has achieved satisfactory financial results and details are provided in directors' report. The Company was also successful to increase export business during the year ended by achieving export turnover of Rs. 23.55 Cr. F. MATERIAL DEVELOPMENTS ON HUMAN RESOURCES Human Resource programs and initiatives in the Company are aligned to meet the future business plans and needs. Your Company believes in investing in people to develop and expand their capability. The Company has been able to create a favorable work environment that motivates performance, customer focus and innovation. The Company's strategies are based, inter alia, on processes of continuous learning and improvements.. By order of the Board of Directors For ISHAN DYES & CHEMICALS LIMITED Piyush N. Patel Chairman & Managing Director Ahmedabad 10th August, 2015 |