Product Line

SUPPLIERS
• Geetanjali Paints & Hardware Store ,Haldwani UK
• Shree Ram Industries,Maharashtra
• Ghanshyam Hardware Stores , Gujarat
• Aditya Enterprises,Delhi
• Swati Paul & Co. , West Bengal
• Goodwill Hardware,Chennai
• Hari Om Agencies ,Delhi
• S.A.R Distributors , Lucknow

• Goodwill Hardwares

• Goodwill Hard
 Construction companies

MAJOR
Plumbing contractors

Customers Hardware stores

Government agencies
Exporting Countries
• United States
• Canada
• United Kingdom
• Australia
• New Zealand
• Kenya
• Zambia
• Malawi
• Rwanda
 EMPLOYEES

The Company has around 8.2k or 8200 employees

Importance :

• Resource Allocation and Planning

• Workforce Productivity and Efficiency
• Organizational Structure and Hierarchy
• Staffing Strategies
• Human Resource Man4agement
• Business Expansion and Growth
• Labour Costs and Budgeting
• Employee Well-being and Organizational Culture
• Legal and Compliance Considerations
Non-
Financial Statement's

• Customer-centricity
• Introduction of new products
• Expansion of geographical reach

The information provided in the 'NFS' items includes details about the company's customer-centric
approach, new product introductions, expansion strategies, and additions to their product offerings. This
information is useful for understanding the company's focus on customer satisfaction, product innovation,
and market expansion. The intended audience for this information could be investors, stakeholders,
business partners, and potential customers. While the information may be technical in nature, it is
presented in a way that is accessible to the intended audience, who are likely familiar with the industry and
business terminology.
Notes to the financial
statements

• Clarification and Explanation

• Disclosure of Significant Accounting Policies
• Fair Value Measurements

Information in the notes provides essential context, transparency, and additional details that enable
investors, creditors, regulators, and other stakeholders to make informed decisions and assessments about
a company's financial performance and position.
They complement the information presented in the main financial statements and are a critical component
of financial reporting.
Key Sources of information
Useful Lives and Residual Values of
Assets
• Company reviews property, plant, and equipment
and intangible assets' useful lives and residual
values at each reporting period.
• No changes were made to these estimates during
the current financial year.
Impairment of Investment in Subsidiaries
and Joint Venture*
• Testing for impairment follows non-financial asset
impairment provisions.
• Determination of recoverable amounts involves
significant judgments.
• Market-related information and estimates used.
• Key assumptions include weighted average cost
of capital and estimated operating margins.
Provisions and Contingent Liabilities
• Provisions and Contingent Liabilities are reviewed
at each Balance Sheet date.
• Adjusted to reflect current best estimates.
Impairment of Goodwill*
• Goodwill of ₹192 Million assessed for impairment.
• Determined based on value in use calculations.
• Recoverable amounts calculated using cash flow
forecasts and discount rates (12.5% to 15%).
• Values reflect experience and align with
management's market-focused plans.
• Management believes planned market share
growth is reasonably achievable.
 People responsible for
financial statements
• Board of Directors: The Board of Directors is
responsible for overseeing the company's management
and for ensuring that the company's financial
statements comply with all applicable laws and
regulations.
• Management: They are responsible for ensuring that
the financial statements are accurate and that they
fairly represent the company's financial position and
performance.
• Accounting staff: They are responsible for analyzing and
interpreting transactions into monitory terms.
• Internal audit department: The internal audit
department of Astral Pipes is responsible for evaluating
the company's internal controls and for identifying any
areas where improvement is needed.
 Company's Market Share
One piece of information that could be useful but is not disclosed in
the financial statements is the company's market share in the
Important plastic pipes industry. Knowing the company's market share would
provide insights into its competitive position and its ability to
Information capture a larger portion of the market compared to its competitors.

Yet not Confidential Nature of the information

Disclosed in The reason this information may not be disclosed in the financial
statements is that market share is often considered sensitive and
Financial competitive information. Companies may choose not to disclose it
to maintain a strategic advantage and prevent competitors from
Statement gaining insights into their market position. Additionally, market
share can fluctuate over time, and disclosing it in financial
statements may require frequent updates, which can be
impractical. Therefore, companies often choose to keep this
information confidential and share it selectively with stakeholders
on a need-to-know basis.
COMPANY'S AUDITOR

S. R. Batliboi & Co. LLP

is led by a robust team comprising 25
Partners with rich experience,
supported by over 1,000 talented
professionals focused on providing
high-quality audits, integrated with
strong technical expertise,
technology, and data- driven insights.
AUDITOR'S CONCERN
• Inventory: The auditors have expressed concerns
about the company's inventory accounting practices.
They have noted that the company's inventory valuation
is based on estimates, and that there is a risk of
overstatement of inventory value.
• Receivables: The auditors have also expressed
concerns about the company's receivables. They have
noted that the company has a high level of trade
receivables, and that there is a risk of bad debts.
• Internal controls: The auditors have noted that the
company's internal controls over financial reporting are
not fully effective. They have recommended that the
company take steps to improve its internal controls.
The auditors have also noted that the company is facing
increasing competition from other players in the industry.
They have recommended that the company take steps to
maintain its competitive advantage.
Overall, the auditors have raised some concerns about
the company's accounting practices and internal controls.
However, they have also stated that the company's
financial statements present a true and fair view of its
financial position and performance in accordance with
the applicable accounting standards.
SIGNIFICANT ITEMS IN MDA

• Financial Performance: Astral Pipes has a strong track record of

financial performance. In the fiscal year 2022-23, the company's
revenue grew by 25% and its net profit grew by 30%. The
company's balance sheet is also healthy, with a debt-to-equity
ratio of 0.02 .
• Industry Outlook: The Indian plastic pipes and fittings market is
expected to grow at a CAGR of 10% over the next five years. This
growth is being driven by factors such as increasing urbanization,
rising disposable incomes, and government investments in
infrastructure.
• Competitive Landscape: Astral Pipes is the leading player in the
Indian plastic pipes and fittings market. The company has a strong
brand presence and a wide distribution network. Astral Pipes also
has a number of technological advantages over its competitors.
These three items are significant because they indicate that Astral
Pipes is a well-managed company with a strong market position and
a bright future.
FY 2019-2023

Financial Analysis
 Astral's current ratio has remained stable over the past five years, ranging
from 1.34 in March 2019 to 1.84 in March 2023, indicating a healthy balance
CURRENT RATIO between current assets and liabilities to meet short-term obligations.
However, the ideal current ratio varies by industry and company
circumstances.

Mar- Mar-
Mar-23 Mar-22 Mar-21
20 19
Current 1,578.70 1,216.00 903.00 681.80 616.33
assets

Current 859.2 685 529 481.2 462

liabilities

Current
1.84 1.78 1.71 1.42 1.34
ratio
 Astral's debt to asset ratio has consistently remained low, ranging from
0.25 to 0.35 over the past five years. This signifies a robust balance sheet
DEBT with minimal reliance on debt, typically considered healthy. However, the
TO ASSET RATIO ideal ratio varies by industry and company circumstances. In Astral's case, a
low ratio is positive for investors, indicating financial strength and
comfortable debt management capabilities.

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Total
908.3 751.6 577 610 631
Debt

Total
3,587.60 2,758.00 2,222.10 1,941.70 1,784.99
Assets

Debt to
asset 0.253 0.272 0.259 0.314 0.353
ratio
 Astral's quick ratio has been steady over five years, ranging from 0.54 to
0.94, indicating a decent ability to meet short-term obligations without
relying heavily on selling inventory. While a quick ratio above 1 is typically
QUICK RATIO healthy, it can vary by industry and circumstances. High inventory turnover
industries may have lower quick ratios, while low turnover industries may
have higher ones.

Mar- Mar- Mar- Mar- Mar-

23 22 21 20 19
Current 1,578. 1,216. 903 681.8 616.33
assets 70 00
Invento 769.7 547.5 360.4 422.1 299.56
ry
Current 859.2 685 529 481.2 462
liabiliti
es
Quick
ratio 0.942 0.976 1.025 0.539 0.686
 Astral's debt to equity ratio has consistently remained very low, ranging from
0.03 to 0.07 over the past five years. This indicates strong capitalization and
minimal debt reliance, typically a healthy sign with a ratio below 1. However,
DEBT EQUITY RATIO the ideal ratio varies by industry and specific circumstances. Overall, Astral's
low debt to equity ratio is a positive indicator of financial stability and debt
management capacity for investors.

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Total
Debt 908.3 751.6 577 610 631

Equity 3,587.6 2,758 2,222,1 1,941.7 1,784.99

Debt
equity
ratio 0.25 0.27 0.25 0.31 0.35
 Astral maintains very low financial leverage with a debt-to-equity ratio
consistently below 0.1 and a debt-to-assets ratio below 0.35 over the past
FINANCIAL five years. This reflects a healthy balance sheet and lower risk for
LEVERAGE RATIO investors. However, remember that financial health involves multiple
factors like cash flow, earnings growth, and industry trends, so consider
these alongside leverage ratios in investment decisions.

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

3,587.60 2,758 2,222.10 1,941.70 1,784.99

Total assets
2,679.30 2,006.40 1,645.10 1,331.70 1,153.97

Shareholder's
funds

FL ratio 1.339 1.374 1.350 1.458 1.546

 DSCR of Astral has been well above 3.0 for the past five years. This
indicates that the company has a strong ability to meet its debt
DEBT SERVICE COVERA obligations. A DSCR of 3.0 or higher is generally considered to be
GE RATIO healthy. A high DSCR is a positive sign for investors, as it suggests that
the company is less likely to default on its debt. It also indicates that the
company has the capacity to take on more debt, if needed.

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

EBITDA 738.40 651.60 535.3 344.4 285.31

(Interest
+ Loan
Repaym
ent) 2.1 23.2 8.9 89.1 121.28

Ratio 351.619 28.086 60.146 3.865 2.352

 The asset turnover ratio for Astral Company has been declining over the
ASSET TURNOVER past five years, meaning that the company is using its assets less
efficiently to generate sales. This could be due to increased investment in
RATIO OF ASTRAL fixed assets, decreased sales, changes in the composition of assets, or
poor asset management practices.

MA MAR MAR MAR MAR

R-23 -22 -21 -20 -19

Total
income 4,611 3,443 2,486 2,042 1,915

Total
asset 3,587 2,758 2,222 1,941 1,784

Asset
turnove
r ratio 1.29 1.25 1.12 1.05 1.07
 In March 2019, the fixed asset turnover ratio was 2.52. In March 2023,
FIXED ASSET the fixed asset turnover ratio was 2.05. This decline in the fixed asset
turnover ratio shows that Astral is becoming less efficient at generating
TURNOVER RATIO sales from its fixed assets. There are a few possible reasons for this
decline in the fixed asset turnover ratio.

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Total
income 4,635.5 3,470.7 2,507.0 2,053.7 1,927.18

Fixed
Assets 1,657.5 1,160.5 927.1 864.9 763.48

Asset
turnove
r ratio 2.80 2.99 2.70 2.37 2.52
 Astral Limited's working capital turnover ratio (WCT) has steadily increased
over the past five years, from 6.44 in Mar-23 to 12.46 in Mar-23. This signals
WORKING CAPITAL improved efficiency in using working capital to generate sales, which is
positive for profitability and cash flow. A higher WCT ratio indicates the ability
TURNOVER RATIO to generate more sales with the same working capital. Overall, Astral is
enhancing its working capital efficiency, a positive development for the
company.

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Total
income 4,635.50 3,470.70 2,507.00 2,053.70 1,927.18

Working
Capital 719.50 531.00 374.00 200.60 154.69

Working
Capital
Turnover
Ratio 6.44 6.54 6.70 10.24 12.46
 The receivable turnover ratio for Astral Company has been declining, meaning
that the company is taking longer to collect its receivables. This could be due to
RECEIVABLE increased competition, changes in consumer payment habits, poor credit and
TURNOVER RATIO collection policies, or an economic downturn. Management needs to take steps to
address the decline in the receivable turnover ratio, such as improving credit and
collection policies and offering discounts to customers who pay their bills early.

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Accounts
Receivabl
e 235 153 180 139 223

Credit
sales per
day 20.5 1.3 1.2 1.2 1.25

Ratio 0.087 0.008 0.007 0.009 0.006

DSO 25.22 28.38 25.4 28.97 34.28

 This decline in ITR shows that Astral is taking longer to sell its inventory. There are a few
INVENTORY possible reasons for this decline in ITR. One possibility is that Astral is stocking more
inventory than it needs. However, it is a sign that the company needs to monitor its
TURNOVER RATIO inventory levels carefully. If a company is stocking more inventory than it needs, this
could lead to increased costs. Astral needs to monitor its inventory levels carefully to
ensure that they are being managed efficiently.

MA R - MA R - MA R - MA R - MA R -
23 22 21 20 19

Cost of Goods 3,064. 2,314. 1,554. 1,297. 1,281.

Sold 80 00 60 70 84

Average
658.60 453.95 391.25 360.83 149.78
Inventory

Ratio 4.65 5.10 3.97 3.60 8.56

Days
Inventory 78.44 71.60 91.86 101.49 42.65
Outstanding
 The creditors turnover ratio for Astral Company has been declining over the
CREDITORS past five years, meaning that the company is taking longer to pay its creditors.
The decline in creditors turnover ratio could have a number of negative
TURNOVER RATIO implications for the company, including increased risk of default, damage to
relationships with creditors, and increased cost of borrowing.

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Credit
Purchases 60.4 82.6 62.3 67.1 79.14

Average
Trade
Payable 659.35 502.7 412.7 364.83 302.625

Ratio 0.091 0.164 0.150 0.183 0.261

AVERAGE The average accumulated receivables (DSO) for Astral Company has
been declining over the past five years. This is a positive sign, as it
COLLECTION PERIOD means that the company is collecting its receivables more quickly.
This could lead to improved cash flow and profitability.
(DSO)

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Average
Accountabl
e
Receivable 194.25 166.6 159.5 181.225 222.175

Total
Income 4,635.50 3,470.70 2,507.00 2,053.70 1,927.18

DSO 15.29 17.52 23.22 32.20 42.079

 The average payable period (DPO) for Astral Company has been
increasing over the past five years. This is a negative sign, as it means
AVERAGE PAYABLE P that the company is taking longer to pay its suppliers. The increase in
ERIOD (DPO) DPO could have a number of negative implications for Astral Company,
including increased risk of default, damage to relationships with
suppliers, and reduced profitability.

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Average 659.35 502.7 412.7 364.83 302.625

account
payable

3,064.80 2,314.00 1,554.60 1,297.70 1,281.84

COGS

78.52 79.29 96.89 102.61 86.17

DPO
 There is an increase in DIO shows that Astral is taking longer to sell its inventory.
AVERAGE HOLDING There are a few possible reasons for this increase in DIO. If a company is stocking
more inventory than it needs, it could increase costs. If a company is selling its
PERIOD inventory at a slower rate, this could lead to decreased sales. Overall, the image
shows that Astral's DIO has been increasing steadily over the past five years. Astral
(DIO) needs to monitor its inventory levels carefully to ensure that they are being managed
efficiently.

Mar- Mar- Mar-

Mar-23 22 Mar-21 20 19

Average
Inventory 658.60 453.95 391.25 360.8 282.3

2,314. 1,297. 1,281.

COGS 3,064.8 0 1,554.6 7 8

101.4
DIO 78.43 71.60 91.86 8 80.39
 Astral Company's cash conversion cycle (CCC) has decreased over the
CASH CONVERSION past five years, indicating improved efficiency in turning inventory into
cash, potentially boosting profitability and cash flow. To sustain this
CYCLE positive trend, management should prioritize inventory and receivables
management.

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

DIO 78.43 71.60 91.86 101.48 80.39

DSO 15.29 17.52 23.22 32.20 42.09

DPO 78.52 79.29 96.89 102.61 86.17

Ratio 172.25 168.41 211.97 236.31 208.66

DIVIDEND PAYOUT Astral Company is increasing its dividend payout, signaling confidence
in its future and a commitment to shareholders. This is positive for
RATIO investors, but sustainability should be closely monitored.

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Total
Dividend 60.3 45.2 15.1 24 9.39

Net
Income 4,598.30 3,436.80 2,482.30 2,038.50 1,912.10

Ratio 0.013 0.013 0.006 0.011 0.0049

 Astral Company boasts a remarkably high retention ratio of 98.69% in March 2023,
indicating substantial reinvestment of earnings into the business, potentially for growth
RETENTION RATIO initiatives, R&D, or acquisitions. While this reflects confidence in future prospects, it's
important to note that a high retention ratio may dilute earnings per share (EPS) if
revenue growth doesn't offset it. Overall, Astral's strong retention ratio is a positive sign,
but monitoring EPS growth is crucial to ensure the reinvestment benefits shareholders.

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Net
Income 4,598.30 3,436.80 2,482.30 2,038.50 1,912.10

Dividen
d 60.3 45.2 15.1 24 9.39

Retaine
d
Earning
s 4,538.00 3,391.60 2,467.20 2,014.50 1,902.71

Ratio 0.986 0.986 0.993 0.988 0.995

RETURN ON ASSETS
• Astral Company's return on assets (ROA) has steadily risen
over five years, from 7.92% in March 2019 to 12.48% in March
2023, indicating improved efficiency in generating profits from
assets. This ROA of 12.48% surpasses the industry average of
10%, signifying strong relative performance.

• However, Astral's return on equity (ROE) stands at 16.72%

in March 2023, also above the industry average but lower
than its ROA. This suggests that the company is using leverage Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
to finance assets, boosting its ROE. While this is not a major PAT 447.9 404.8 326.9 200.8 141.45
concern, prudent debt management is essential to ensure
sustainability. Total
assets 3,587.6 2,758.0 2,222.1 1,941.7 1,784.9

Return
• In summary, Astral Company performs well with a strong on
ROA, but careful monitoring of debt levels is necessary. assets 12.48% 14.68% 14.71% 10.34% 7.92%
 Astral Company's net profit margin significantly improved from 4.47% in the previous year
to 9.71% in March 2023, showing steady growth over the past five years. The operating
margin is robust at 169.01%, surpassing the industry average of 15%, with a similar upward
NET PROFIT trend. However, the gross profit margin has been declining over five years, from 32.69% in
MARGIN March 2019 to 20.08% in March 2023, falling below the industry's 25% average. This
decline is a concerning trend that requires management's attention. Despite this, Astral
Company exhibits strong net profit and operating margins, indicating overall good
performance.

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Net
Profit 447.9 404.8 326.9 200.8 141.45

Revenu
e 4,611.60 3,443.30 2,486.30 2,042.80 1,915.71

Ratio 9.712 11.756 13.148 9.829 7.383

 Astral's revenue has steadily risen over the past five years, from Rs. 4,611.60 million
OPERATING in March 2019 to Rs. 7,794.10 million in March 2023, reflecting business growth. The
MARGIN increasing operating margin indicates improved profit generation efficiency. In
summary, Astral is a profitable and expanding company.

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Gross
Profit
after
Expense
s 7,794.1 5,963.1 4,094.0 3,485.5 3,289.4

4,611.6 3,443.3 2,486.3 2,042.8 1,915.7

Revenue 0 0 0 0 1
Ratio 169.01 173.17 164.66 170.62 171.70
BASIC EARNING Astral Ltd. is becoming more efficient at using its assets to generate profits,
likely due to factors like better management, tech investments, or market
POWER RATIO conditions. This bodes well for investors, indicating strong management and
a robust business model.

Mar- Mar-
Mar-21 Mar-20 Mar-19
23 22

Gross
Profit
after
Expenses 7,794.1 5,963.1 4,094.0 3,485.5 3,289.4

Total
Asset 3,587.6 2,758.0 2,222.10 1,941.70 1,784.99

Basic
Earning
Power
Ratio 217.25 216.21 184.24 179.50 184.28
 Astral Ltd.'s increasing ROE over the past five years indicates improved efficiency
in generating profits from its equity. This positive trend can result from factors like
better management, tech investments, or a favorable market. High ROE is
RETURN ON EQUITY generally good for investors, signifying strong management and a robust business
model. Yet, keep in mind that ROE can be influenced by industry, leverage, and
accounting practices. Overall, Astral Ltd.'s rising ROE suggests enhanced equity
utilization for profit generation.

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Earnings
after taxes 447.9 404.8 326.9 200.8 141.45

Stockholder
's Fund 2,679.3 2,006.4 1,645.1 1,331.7 1,153.9

Return on
equity 16.72% 20.18% 19.87% 15.08% 12.26%
 Astral Limited's gross profit margin has decreased over the past five years,
from 13.14% in March 2019 to 11.75% in March 2023, likely due to factors
GROSS PROFIT like rising input costs and competition. Despite the decline, its margin
remains relatively high compared to the industry average of around 10%.
MARGIN While still profitable, Astral Limited needs to address cost reduction or sales
increase to sustain profitability.

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Net
Profit 447.9 404.8 326.9 200.8 141.45

Reven
ue 4,611.60 3,443.30 2,486.30 2,042.80 1,915.71

Ratio 9.71 11.75 13.14 9.82 7.38

Thank You