mpil corporation ltd Management discussions

• ECONOMIC OUTLOOK

Almost all sectors have been adversely affected as domestic demand and exports sharply plummeted with some notable exceptions where high growth was observed

• OPPORTUNITIES, THREATS, RISKS AND CONCERNS

The Company derives its income primarily from investments in financial instruments. In a falling interest rate environment, there would be impact on level of earning and consequently on the profitability of the Company. Having said that the Company proposes to make best use of its available resources and achieve a steady if not accelerated growth.

• SEGMENT WISE OR PRODUCT WISE PERFORMANCE

The Company does not carry on any manufacturing or sales activity and therefore there are no reportable segments in the Company operations. The surplus funds of the Company are invested in money market instruments which generates investment income. The Company also derives income from lease of its assets and business support services. Details of these incomes are separately disclosed in the financial statements. The revenues are utilized to maintain the assets of the Company.

• INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The company has an appropriate system of internal control. The Company ensures adherence to internal control policies and procedures. Internal audit is conducted on a periodical basis to review internal controls. The Audit Committee of the Board of Directors reviews the reports of the internal audits conducted and the adequacy of internal control systems.

• FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year under review, the Company recorded a profit of Rs 102.46 lakhs before depreciation and tax as compared to profit of Rs 113.90 lakhs in the previous year. After providing for depreciation and tax, the profit for the year under review was Rs 72.87 lakhs as compared to profit of Rs 85.04 lakhs for the previous year.

• EMPLOYEES/ HUMAN RESOURCES

During the year, relations with employees remained cordial. As on 31^st March, 2023, the Company had 2 employees on its roll.

Statements in this Management Discussion & Analysis describing the Companys objective, projections, estimates and expectations may be forward looking statement within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.