A B M International Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT:

The Company is primarily engaged in the business of importing plastic raw materials, including PVC Resin, and continued its operations in this segment during the financial year under review.

The plastic and petrochemical industry continues to play an important role in various downstream sectors, including packaging, construction, infrastructure, consumer goods and other industrial applications. The demand for plastic raw materials is influenced by domestic consumption, international commodity prices, crude oil prices, domestic production capacity and the prevailing demand-supply position.

The Company continues to closely monitor developments in the domestic and international plastic and polymer markets and evaluates business opportunities based on market demand, prevailing prices and commercial viability.

OPPORTUNITIES AND THREATS:

The plastic and petrochemical industry continues to offer opportunities on account of sustained demand from various downstream industries. The Company believes that the continuing demand for plastic raw materials and the prevailing gap between domestic demand and indigenous production and supplies provide opportunities for importers and traders of such materials.

The Companys business, however, remains exposed to fluctuations in international prices of petrochemical products, crude oil prices, foreign exchange rates, global economic conditions, domestic demand and supply conditions and competition from other importers and domestic manufacturers.

The volatility in international commodity prices and foreign exchange rates may have a direct impact on the Companys procurement costs and margins. The Company therefore continuously monitors domestic and international market conditions and takes appropriate business decisions based on prevailing circumstances.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE:

The Company is primarily engaged in the import and trading of plastic raw materials, with PVC Resin being one of its principal products.

During the financial year under review, the Company continued to import PVC Resin based on prevailing domestic market demand and commercial considerations. The Company closely monitors international prices, domestic market demand and selling prices and the prevailing demand-supply position.

The Company also keeps a close watch on the production and supply levels of indigenous manufacturers and evaluates import opportunities with due consideration to the prevailing demand-supply gap, international prices, foreign exchange movements and other relevant commercial factors.

OUTLOOK

The Company remains cautiously optimistic about the prospects of its business. Plastic raw materials continue to witness significant demand from various downstream industries in India.

The Companys business prospects will, however, depend upon various factors, including domestic demand, international polymer prices, crude oil prices, foreign exchange movements, domestic production and supply, competition from other importers and overall economic conditions.

The Company will continue to closely monitor developments in the domestic and international markets and undertake imports based on prevailing market demand, pricing conditions and commercial viability.

RISK AND CONCERNS:

The Companys business is exposed to various risks, including volatility in international prices of plastic and petrochemical raw materials, fluctuations in foreign exchange rates, changes in domestic demand and supply, competition, changes in economic conditions and developments in international markets.

Foreign exchange fluctuations are particularly relevant to the Companys import business and may affect the cost of imported materials and consequently the Companys margins. The management closely monitors foreign exchange market movements and has subscribed to the services of a leading foreign exchange experts for receiving relevant market inputs on a daily basis. The management evaluates such information and takes appropriate commercial decisions in accordance with prevailing market conditions.

The Company has also subscribed to a leading plastic and polymer industry information service and receives regular alerts, news and market updates relating to the industry. These developments are closely monitored by the management on a regular basis.

The Company believes that domestic demand for plastic raw materials continues to remain significant vis-a-vis indigenous production and supplies. The prevailing demand-supply position and the requirement for imports to meet domestic demand provide opportunities for the Companys business. However, the Company continues to closely monitor market conditions and associated risks while undertaking its business operations.

INTERNAL CONTROLSYSTEM ANDTHEIR 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:-.

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

HUMAN RESOURCE DEVELOPMENT:

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

Significant Financial Ratio

Disclosure of Accounting Treatment:

In preparation of the financial statements, the applicable provisions of Companies Act, 2013, Indian Accounting Standards and other applicable Laws have been strictly adhere to the Financial Statements of the Company along with the notes are further discussed in this Report