ASL Industries Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Your directors take pleasure in presenting the Management Discussion and Analysis Report for the year ended on March 31, 2023.

Industry structure and development

ASL Industries Limited was engaged in the business of manufacturing of forged products and press shop for sheet metal products used in various industries like railway, defence, and automobile.

Opportunities

Debt free company: Your Company has repaid existing bank loan and now working as debt free Company.

Threats

Regulations: The Government of India (GoI) and the State Governments can majorly impact the Indian economy and our business in several ways.

Outlook

The Company has not carried our any business during the financial year 2022-2023. It has disposed off its entire plant and machineries and used the sale proceeds for given short-term loans and advances to generate income.

Risk and Concerns

The risk factors are classified as under for the sake of better clarity and increased understanding:

Internal risk factors

The number of key personnel, including our senior management, and our inability to attract or retain such persons adversely affect our business, results of operations, cash flows and financial condition.

We are dependent on the demand of the products manufactured by us. Low demand of our products in the market bears a huge risk to the Company.

External Risk Factors

Political, economic or other factors that are beyond our control may have an adverse effect on our business and results of operations.

Changing laws, rules and regulations and legal uncertainties in India, including adverse application of corporate and tax laws, may adversely affect our business and financial results.

Corporate Social Responsibility

The provision of the Corporate Social Responsibility is not applicable to the Company.

Material developments in human resources/ industrial relations front, including number of people employed

As on March 31, 2023, the Company has a total number of 2 permanent employees on its roll.

Internal control system and their adequacy

The Company has adequate systems of internal control meant to ensure proper accounting controls, monitoring cost cutting measures, efficiency of operation and protecting assets from their unauthorized use. The Internal Audit department of the Company reviews control measures in the management of risks and opportunities and ensures adherence to operating guidelines and compliance with regard to regulatory and legal requirements.

The Internal Audit is carried by the M/s. Harnathka & Associates, internal auditors of the Company for the Financial Year 2022-23. The reports, thereby prepared, are reviewed in the audit committee meetings. Corrective measures to strengthen the internal controls are suggested and also taken in consideration.

Discussion on financial performance with respect to operational performance

The financial highlights with respect to operational performance: