ahmedabad steelcraft ltd share price Management discussions

a) Industry Structure And Developments

The trading activities of the Company mostly comprises of export of Mild Steel Window Section (Non-Alloy) and other steel items which are subject to Government policies and other Global factor which has direct effect on the operational activities of trading. However the Company has good standing in global market and has enough capacity to face the uneven situation in the course of its operation which is within its control.

The Company has also made capital contribution in Limited Liability Partnership engaged in real estate and may independently start these activities. Considering the fact that the demand for private capital for real estate investment and supporting infrastructure has increased enormously, the outlook is bright. The management also makes the enough provision in respect of Investment held in the name of the Company. The said Provisions/Special Reserves are not included in the Net worth of the Company.

b) Opportunities and Threats

Government focus on strengthening the domestic manufacturing base under the Atmanirbhar Bharat program presents a strong opportunity for steel consumption in India. The production linked incentive scheme, which intends to incentivize the additional production in India, is expected to boost steel demand in automobile & auto components, consumer durables, solar equipment, telecom, etc.

c) Segment-wise or product wise Performance

At Present, the company has business activity within a single primary business segment viz "M. S Steel Window Section and Other Steel Item". There is no other Separate reportable segment.

d) Outlook

Indias conviction in its economic durability has been strengthened in FY23. Without losing impetus for growth, the economy overcame the problems of external imbalances arising from the Russia-Ukraine conflict, rise in commodity Inflation, supply chain issues and volatile crude prices.

The Indian steel industry like its global counterparts belongs to one of those core industries is liking forward for a steady growth in 2023 onward. e) Risks &Concerns

Risk is inherent in every business activity and Steel Industry is no exception. The steel industry displays strong commodity characteristics and is subject to cyclical price movements in business cycles. The Company is exposed to risks from overall market fluctuations, import of steel, changes in government policy, laws of the land, taxation, man-made disaster, political risks and Currency risk arises from exposure to foreign currencies and the volatility associated therewith, etc. which affects the financial performance of the industry as a whole and also of your Company.

f) Internal Control System and its Adequacy

The Company has proper and adequate system of internal controls commensurate with its size and nature of operations to provide reasonable assurance that all assets are safeguarded, transactions are authorized, recorded and reported properly and applicable statutes are duly complied with. The Company has constituted an Audit Committee to monitor the adequacy and efficacy of internal control systems. The adequacy of these compliances and their effectiveness is subject to statutory audit and the same has been adequately reported by the Auditors in their report as required under the relevant provisions of the Companies Act, 2013. The Company also has an Internal Audit System.

g) Discussions on financial performance with reference to operational Performance:

During the year under review, the Companys revenue from operations stood at Rs 220.50 lacs (previous year Rs. 70.13 lacs) and the other income stood at Rs. 79.23 lacs (previous year Rs. 83.92 lacs) and hence the total income stood at Rs 299.73 lacs (previous year Rs. 154.05 lacs). The company has incurred a net loss of Rs (65.74) lacs (previous year net loss of Rs. 60.05 lacs). The Other Comprehensive Income (OCI) for the year stood as Rs 1.24 lacs (previous year Rs. 41.98 lacs). The total comprehensive income for the year stood at Rs (-) 64.50 lacs (previous year Rs. (-) 18.08 lacs).

h) Material Developments in HRD and industrial Relations Front:

j) Cautionary Statements:

Statements in this management discussion and analysis report describing the Companys objectives, projections, estimates and expectations may be termed as forward looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those either expressed or implied. The readers of this report are, therefore, advised to read the same with this caution.

In the preparation of the financial statements for the year ended 31st March, 2023, the applicable Indian Accounting Standards ("Ind AS") have been followed.