a b m international ltd share price Management discussions

(As per Regulation 34 of the SEBI Listing Regulations)

INDUSTRY STRUCTURE AND DEVELOPMENT:

The company is primarily engaged in import of plastic raw materials and has continued with this business in the current year also.

OPPORTUNITIES AND THREATS:

The petrochemical industry is seeing increased growth despite volatile conditions in several sectors and volatile crude oil prices and global economic uncertainties.

The fluctuating market conditions both international and domestic coupled with erratic foreign exchange scenario has great impact on the companys business.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE:

The company is presently importing PVC Resin regularly and closely watching both international prices and domestic market demands. The company has also to keep an eye on the indigenous manufacturers production and demand supply gap in view of the increased demand for this product.

OUTLOOK

The outlook for imports of plastic raw material continues to be bright inspite of stiff competition from other importers as the material is freely importable as per the governments policy. There is a consistent demand for a careful analysis of day-to-day monitoring both in terms of domestic demand of the raw material and its domestic selling price which has to be compared with supplies and rates.

RISK AND CONCERNS:

Careful study of foreign exchange market fluctuations are necessary on a daily basis and to this end, the company is subscribing to a leading foreign exchange experts and receives their inputs on a daily basis.

The company is also subscribing to a leading plastic/polymer industry website and receives daily alerts/emails/news in this regard. All these activities are directly supervised by the management on a daily basis.

The outlook for the companys business is very bright as the domestic demand for the plastic raw material is very high compared indigenous manufacturers production and supplies. The plastic industry is dependent on imports to meet its demand and as long as the demand-supply gap is maintained, there is very good scope for the companys future business.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has in place adequate internal control systems, commensurate with its size and nature of operations and compliances so as to ensure smoothness of operations and compliance with applicable legislation. The Company has well defined system of management reporting and periodic review of businesses to ensure timely decision making.

It has an internal audit team with professionally qualified financial personnel, which conducts periodic audits of all businesses to maintain a proper system to checks and control. All assets are safeguarded and protected against loss from unauthorized use or disposition and those transactions are authorized, recorded and reported correctly. The internal control is exercised through documented policies, guidelines and procedures. It is supplemented by an extensive program of internal audits conducted by in house trained personnel. The audit observations and corrective action taken thereon are periodically reviewed by the audit committee to ensure effectiveness of the internal control system.

The internal control is designed to ensure that the financial and other records are reliable for preparing financial statements and other data, and for maintaining accountability of persons.

FINANCIAL PERFORMANCE:

The financial statements have been prepared in the true and fair view of the state of affairs of the company, complying with the Accounting Standards notified under section 133 of the Companies Act, 2013 and are in the form as provided in Schedule III. The Financial and Operational Performance of the company is as provided below:-.

PARTICULARS	CURRENT YEAR	PREVIOUS YEAR
	2022-2023	2021-2022
Turnover	8537.33	12698.54
Profit before depreciation	-872.40	232.67
Depreciation	4.84	5.93
Net Profit after depreciation	-877.24	226.74
Provision for taxation (Net)	208.68	87.82
Net Profit(Loss) for the year after tax	-668.56	138.92
Surplus brought forward from previous year	709.08	570.16
Surplus available for Appropriation	40.52	709.08
Proposed Dividend	--
Tax on proposed dividend	--
Balance carried over to next year	40.52	709.08

The Consolidated Financial and Operational Performance of the company with its Associate are as provided below:-

Turnover	8537.33	12698.54
Profit before depreciation	-872.40	232.67
Depreciation	4.84	5.93
Net Profit after depreciation	-877.24	226.74
Provision for taxation (Net)	208.68	87.82
Net Profit(Loss) for the year after tax	-668.56	138.92
Add: Share of profit/(loss) in Associates	(1.34)	(1.74)
Surplus brought forward from previous year	1096.27	959.09
Surplus available for Appropriation	426.38	1096.27
Proposed Dividend	--
Tax on proposed dividend	--	--
Utilised for issue of Bonus Shares	--	--
Balance carried over to next year	426.38	1096.27

HUMAN RESOURCE DEVELOPMENT:

The company has focus to retain its manpower by providing good working conditions thereby reduce turnover ratio.

Rajneesh Gandhi

Managing Director