ashiana ispat ltd Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

I. Overview:

The Management of Ashiana Ispat Limited presents its analysis report covering performance and outlook of the Company. The core business of the Company is manufacturing TMT Bar. It has its registered office located at RIICO Industrial Area, Bhiwadi, Alwar, Rajasthan.

This should be read in conjunction with the Companys financial statements, the schedules and notes thereto and other information included elsewhere in the Annual Report. The Companys financial statements have been prepared in accordance with Indian Accounting Standards (‘Ind AS) complying with the requirements of the Companies Act, 2013, as amended and regulations issued by the Securities and Exchange Board of India (‘SEBI) from time to time. The Management accepts responsibility for integrity and objectivity of the Financial Statements of the Company.

II. External Environment Economic Scenario:

Demand for steel has a strong correlation with global economic development. The steel industry contributed 0.7% to global GDP (World steel, May 2019) and employs over 6 million directly and over 40 million indirectly.

India continues to be the second largest producer of crude steel in the world. However, Indias per capita steel consumption of 74.1 kg is only a third of the global average. The Government of India has implemented policy interventions to more than double the consumption to 160 kg by FY 2030-31, in line with the nations growth ambitions. This bodes well for the growth of the Indian steel industry over the next decade.

iii. Opportunities, Threats, Risks and Concerns:

The growing demand for steel is notably driving the TMT steel bar market growth, although factors such as increasing iron ore prices may impede market growth.With the rising demand for steel in modern architectures, the growth of the global TMT steel bar market is expected to grow significantly in the forecast period. Advantages of TMT steel bar over other steel bar is another key factor that is expected to impact the thermo-mechanically treated (TMT) steel bars market positively in the forecast period. TMT steel bars have significantly higher tensile strength and are stronger. Furthermore, due to their non-twisted designs, TMT steel bars are less prone to surface defects, such as cracks or abrasion. In addition, these bars can withstand high heat (400-600?C), which makes them a reliable option in terms of fire safety. Such factors will drive market growth in the coming years.

iv. Outlook:

Due to reforms like the "Make in India" campaign, the Smart Cities Project, rural electrification, increased infrastructure development, and a focus on developing renewable energy projects under the National Electricity Policy, the metal sector in India is anticipated to undergo significant change in the coming years. By the end of 2025, the Make in India initiative wants to increase manufacturings share of the GDP from 17% to 25%. The government has chosen 25 industries as part of this plan, including those that use nonferrous metals extensively in the automotive, electricity, and defence sectors. The Ministry of Mines has agreements in place with numerous countries.

v. Risks and Concerns:

One of the key challenges to the global TMT steel bars market growth is the increasing iron ore prices. The US-China trade war has increased the prices of base metals, whereas the iron ore prices are resisting this downtrend due to strong demand and supply of crude iron and associated products, such as steel.

vi. Financial and Operational Performance:

The core business of the Company is manufacturing TMT Bar with target of operational excellence. The company has undertaken numerous operational initiatives to improve performance and reduce material loss. Undertaken impactful actions to make its quality control process robust and reduce cost of production. We have implemented strict control on raw material purchase and implemented productivity measures, both manpower and machine productivity, Also a number of cost control and cost management measures were initiated during the periods of slowdown this year to improve the financial performance.

vii. Key Financial Ratios:

In accordance with the SEBI (Listing Obligations and Disclosure Requirements) Amendment Regulations, 2018 the Company is required to give details of significant changes (changes of 25% or more as compared to immediately previous financial year) in financial ratios are as follows.

Particulars	2022-23	2021-22	Reasons for Deviation
Inventory Turnover Ratio	15.17	18.87
Debt Service Coverage Ratio	0.95	0.49	Due to increase in profit as well as decrease in Repayment of unsecured Loans during the Year in comparison of Previous Year.
Net Profit Margin	0.65	0.23	During the year company has earned profit in comparison of previous year

viii. Manpower Development in HR and Industrial relations:

Over the years Company has maintained consistency in its efforts in training and developing its human resource with a view to face the competition. Industrial relations were in order throughout the year and there was satisfactory cooperation between the management and the workers in working towards the overall objectives of the Company.

ix. 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. The Company assumes no responsibility to publicly modify or revise any forward looking statements on the basis of any future events or new information.

	For and on Behalf of the Board of Directors
Date: 29.08.2023	(Ashita Jain)
Place: Bhiwadi	Chairman
	DIN 09802051