bloom industries ltd Management discussions

In compliance with Regulation 34 of SEBI (Listing Obligation and Disclosure Requirements), Regulations, 2015 a detailed Management Discussion and Analysis Report form part of the Annual Report.

1. BACKGROUND

The Management Discussion and Analysis Report sets out the developments in the business, the Companys performance since last Report and the future outlook. This Report is a part of the Directors Report and the Audited Financial Statements, forming part of the Annual Report. However, certain statements made in this Report relating to the projections, outlook, expectations, estimates etc., may constitute ‘forward looking statements within the meaning of applicable laws and regulations and may differ from actual. Several factors could make a significant difference to the Companys operations, including climatic conditions, economic conditions affecting demand and supply, government regulations, revision in government policies, taxation and natural calamities, over which the Company does not have any control.

2. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company is engaged in Trading of Iron & Steel and other items. No Research and development Work has been carried out by the Company and therefore, there is no expenditure on this head, nor has any benefit accrued from it to the Company.

3. OPPORTUNITIES

Since the Company earns income mainly from trading in Iron & Steels and other items. There are ample opportunities in the business of the Company.

4. THREATS

Like any other Business, this business also has a limited exposure to risks and uncertainties including risk inherent in the Companys growth strategy, future plans, and dependence on certain businesses, government policies, dependence on availability of qualified and trained manpower and other factors.

RISKS AND CONCERNS

The company is subject to following broad risks:

Operational Risk-

The Companys business is largely dependent upon people and processes. Any shortcomings in internal processes and system shall result into material adverse impacts on the operation and financial position of the Company.

Market Risk-

The Company is exposed to potential changes in value of financial instruments. Any decline in the price of investment in quoted securities may affect the financial performance and position. Market Risks may pertain to interest bearing securities (interest rate risk). Equities (equity price risk) and foreign exchange ratio risk (currency risk).

The Company continually monitors its portfolio and securities and the usage of derivatives to minimize such risks.

Liquidity Risk-

Severe liquidity crunch in the market and associated market disruptions shall withhold the clients from honoring their commitment towards the Company which would indirectly lead to the Companys inability to perform its financial obligations.

Regulatory and Compliance Risk-

New laws or regulations or changes in the enforcement of existing laws and regulations could invite inadvertent non compliances with the regulations leading to strictures/penalties and even punitive action from the Regulators.

Reputation Risk-

Companys reputation is a vital ingredient to business success, whether in regards to customer trust or employee loyalty. Reputation Risk is a very high risk factor and cause long term or irreparable loss to the business or profitability.

Risk yet to be gauged of the pandemic-

After post Covid crisis, the Company has prioritized immediate financial and operational measures such as protecting liquidity and cash flows, and ensuring that it shall be able to keep core business activities going.

Outlook

Almost all major central banks have pledged to continue an accommodative monetary stance to reinforce the economic green shoots. Economic growth is expected to bounce back strongly in FY 2023-24 on the global as well as the domestic front. However, a lot would hinge on how the pandemic plays out.

5. INTERNAL CONTROL SYSTEM & ADEQUACY

Bloom Industries Limited has an adequate system of internal controls to ensure that the assets are safeguarded, and protected against loss from unauthorized use of disposition, and that transactions are authorized, recorded and reported correctly. The Company engages a detailed process of internal audits, reviews by management, and documented policies, guidelines and procedures to ensure that the financial records are relevant and reliable.

The Companys internal audit systems independently oversee the operations of the organization regularly. The Company management assessed the effectiveness of the Companys internal control over financial reporting as of March 31, 2023. The Companys internal audit systems independently oversee the operations of the organization regularly. M/s. S K Patodia & Associates, the statutory auditors of the Company has audited the financial statements included in this annual report and has issued a report on our internal control over financial reporting (as defined in section 143 of Companies Act 2013.

6. FINANCIAL PERFORMANCE

Rs. In Lakhs

PARTICULARS	2022-2023	2021-2022
Income from Operating	1345.32	1345.11
Other Income	2.12	14.43
Profit before Depreciation and Exceptional Items	49.99	49.73
Less: Depreciation	-	-
Add/(Less): Exceptional items	-	-
Profit/ (Loss) before Tax	49.99	49.73
Less: Provision for Taxation	4.49	5.06
Profit/ (Loss) after Tax	45.50	44.67

7. HUMAN RESOURCES MANAGEMENT

HR at Bloom Industries Limited is focused towards building & reinforcing a foundation for long term sustainability and taking engagement with its employees to a superior level of trust and enduring partnership.

Bloom Industries Limiteds HR policies & practices are in sync with its organizational strategy to drive company values and culture. The policies and practices are continuously monitored, evaluated & fine-tuned to keep them abreast and aligned with changing business dynamics, statutory requirements and in relevance to the jurisdiction. Special efforts and initiatives are undertaken to attract, recruit & select best of the talents to reinforce the skilled resource pool for the Company.

Material Development in Human Resources/ Industrial relation front has been dealt with in the Directors Report, under the head ‘Human Resources, which should be treated as forming part of this management and discussion analysis as at 315 March 2023.

8. KEY FINANCIAL RATIOS

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFORE:

RATIO ANALYSIS	2023	2022	REMARKS
Debtor Turnover	0.19	0.01	Increase by 0.18
Inventory Turnover	NA	NA
Operating Profit Ratio %	3.56%	2.62%	Increase by 0.94% (*)
Net Profit Ratio%	3.38%	3.32%	Increase by 0.06% (**)
Debts Equity Ratio%	0.42	0.48	Decrease by 0.06 (***)
Debt Service Coverage Ratio	1.20	79.91	Decrease by 78.71 (****)
Interest Coverage Ratio%	2.17	88.86	Decrease by 86.69(****)
Current Ratio	8.08	12.47	Decrease by 4.39 (\****)
Return on Net-worth %	7.57%	4.15%	Increase by 3.42% (*****%*)

NOTE:

Due to increase in Debtors at year end.

(*) Majorly due to Business conditions in the market & Operating Profit earned in FY 2022-23. (**) Majorly due to Increase in Profit earned in FY 2022-23.

(***) Due to Long term Loans repaid during FY 2022-23.

(****) Due to Interest on term loans increased during FY 2022-23. (*\**%*) Majorly due to decrease in Current Assets in FY 2022-23.

(\****%) Details of change in return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof :

There has been positive return on Net-worth in the Current year due to profits earned in FY 2022-23 as compared with increase in Net Worth & profits in previous year.

CAUTIONARY STATEMENT

Statement 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.

		By Order	of the Board of Directors
Place: Rourkela
Date: 11/08/2023	Sd/-		Sd/-
	Akash Gupta		Vikash Gupta
	Whole time Director		Director
	(DIN : 01326005)		(DIN : 01326705)