adarsh mercantile ltd share price Management discussions

This Management Discussion and Analysis report has been prepared in compliance with the requirements of Securities & Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 and contains expectations and projections about the strategy for growth, product development, market position, expenditures and financial results. The Companys actual results, performance or achievements could differ from those projected in such forward looking statements on the basis of any subsequent development, information or events for which the Company do not bear any responsibility.

a) Opportunities and threats/Risk and concerns:

Your Companys growth and profitability are dependent on the functioning of Commodity & Capital Markets. Your Company expects a favourable market in the years to come. Your Company on its part is also well poised to seize new opportunities as they come.

b) Segment wise or product wise performance:

The Company is engaged primarily in the business of trading activities. Accordingly there are no separate reportable segments. In view of the slackened economy there has been a substantial decline in the commodity trading. In its endeavor to look for better opportunities, the company has now entered into trading of securities.

c) Outlook:

Your Company is making all efforts to accelerate the growth of its business. In spite of the market risk faced by your Company, your Directors are optimistic about the future prospects of the Company.

The company is taking appropriate steps to keep the costs under control. The outlook for the current year remains positive.

d) Internal control systems and their adequacy:

Your company has an adequate system of internal control, which provides reasonable assurance with regard to safeguarding the companys assets, promoting operational efficiency and ensuring compliance with various statutory provisions. The Audit Committee of the Board plays a significant role in the internal control system and reviews the scope of internal audit work and internal audit reports, financial performance of the company and suggests improvements in the internal control systems wherever required.

e) Discussion on financial performance with respect to operational performance:

The discussions in this section relate to the consolidated financial results pertaining to the year that ended March 31, 2023. The financial statements of Adarsh Mercantile Limited and its associate (collectively referred to as ‘the Company) are prepared in accordance with the Indian Accounting Standards (referred to as ‘Ind AS) prescribed under section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, as amended from time to time. Significant accounting policies used in the preparation of the financial statements are disclosed in the notes to the consolidated financial statements.

The following table gives an overview of the consolidated financial results of the company:

(Rs. in 00)

Particulars	FY 2023			FY 2022
	Amount	% of Revenue	Growth	Amount	% of Revenue
Revenue from operations	26,407	100.00	(69.24%)	85,848	100.00
Earnings before interest, tax, depreciation and amortization (EBITDA)	6,137	23.24	(51.43%)	12,635	14.7
Profit Before Tax (PBT)	(22,292)	(84.42)	(61.01%)	(13,845)	(16.1)
Profit after tax attributable to shareholders of the company	(1,222)	(4.63)	(103.14%)	38,910	45.3
Earnings per share	(0.75)		(725)%	0.12

f) Developments in Human Resources

The Company believes that its human resources as core strength. While the technology and product is fairly standardized in the present scenario, the results achieved by the Company are related primarily to the talent, spirit, commitment and contribution of its employees at all levels.

The Company consistently nurtures a transparent and empowered work environment, which fosters meritocracy and incentivizes employees for high levels of delivery.

g) Cautionary statement:

Statement made in this section of the report is based on the prevailing position in the market conditions. Actual results could however differ materially from those expressed or implied with regard to Companys Outlook and Performance.