A G Universal Ltd Management Discussions

<dhhead>MANAGEMENT DISCUSSION AND ANALYSIS REPORT </dhhead>

Company Overview:

A G Universal Limited is an SME listed company engaged in the trading of steel products and manufacturing of Aluminium Profiles. With a commitment to delivering high-quality steel products to our customers, we operate in a dynamic market that is influenced by economic trends, global demand, and supply chain dynamics.

Industry Overview:

The steel trading industry has been a significant contributor to the global economy. It plays a pivotal role in various sectors, including construction, manufacturing, and infrastructure development. The demand for steel products is closely linked to economic growth and urbanization trends, which can impact our business operations.

Financial Performance:

During the year under review, your company has achieved Revenue from Operations of Rs. 6122.98 lacs as compared to Rs. 7837.29 lacs in the previous year. After deducting Expenses there was profit of Rs. 184.05 lacs as compared to profit of Rs. 256.05 lacs during the previous year. After adjusting Exceptional Items there was profit of 184.05 lacs as compared to profit of Rs. 256.05 lacs during the previous year. After providing for other adjustments/comprehensive income, the current year profit stood at Rs. 135.74 lacs as compared to profit of Rs. 191.97 lacs during the previous year.

Market Trends:

During the Year, the steel industry experienced fluctuations in pricing due to shifts in global supply and demand dynamics. Factors such as trade policies, raw material costs, and geopolitical events influenced market sentiment. Despite these challenges, Company managed to maintained a competitive edge with the help of efficient management policies and employee’s hard work.

Operational Highlights:

Throughout the year, Company focused on optimizing operational efficiency. We successfully implemented some initiatives which led to cost savings and improved customer satisfaction. Our commitment to maintaining a robust supply chain allowed us to promptly respond to customer demands and market changes.

Risk Management:

In today’s economic environment, Risk Management is a very important part of business.

The main aim of risk management is to identify, monitor and take precautionary measures in respect of the events that may pose risks for the business. Your Company’s risk management is embedded in the business processes. Your Company has identified the certain risks such as uncertain economic environment, competition, compliance and industrial risk & safety risks. The Company has planned to manage such risk by adopting best management practices.

Outlook and Future Prospects:

Looking ahead, Company is cautiously optimistic about the future. While market uncertainties persist, we are confident in our ability to leverage our strengths, adapt to changes, and capture emerging opportunities. We will continue to focus on the existing (trading of steel and manufacturing of aluminium extrusion) of business together that enabling us to sustain growth and deliver value to our stakeholders.

In conclusion, Company has navigated the steel trading landscape with determination and resilience and started to make the manufacturing plant a success. Our financial performance, operational initiatives, and commitment to sustainability reflect our dedication to long-term success. As we move forward, we remain steadfast in our pursuit of excellence and value creation.

Internal Control System and their adequacy

The Company has in place adequate internal control systems and procedures commensurate with the size and nature of its business. We believe that the Internal Control System must tend to develop a strong culture of Internal control for which it must encourage all personnel to understand its importance and to commit actively with the process and the management shall also promote high ethics and integrity standards in the staff. The systems adopted by the Company provide a reasonable assurance in respect of providing financial and operational information, complying with applicable statutes, safeguarding of assets of the Company, prevention & detection of frauds, accuracy & completeness of accounting records and ensuring compliance with corporate policies.

Details of significant changes in key financial ratios:

Cautionary Statement:

Statements in Management discussion and analysis report with regard to projections, estimates and expectations have been made in good faith. Many unforeseen factors may come into play and affect the actual results, which could be different from what the management envisages in terms of performance and outlook. Market data and product information contained in this report have been based on information gathered from various published and unpublished reports and their accuracy, reliability and completeness cannot be assured.