hind aluminium industries ltd share price Management discussions

FOR FY 2022-23

Industry Sector and Development

Your Company is primarily involved in two sectors of business, namely aluminium and renewable energy (Solar & Wind Power Generation).

Opportunities & Threats

The Company plans to look for new lines of business. Hence the management has decided to phase out the existing manufacturing activities and has commenced sale of its equipment. The industry in which the company was operating was plagued by over capacity, low margins and continuous delays in the business cycle.

Further, your company has entered into an agreement for disposal of assets of its subsidiary namely, Hind Aluminium Industries (Kenya) Limited (based in Kenya). This process is expected to be completed in June 2023.

The Board of Directors regularly overview external and internal risks associated with the Company and carry out its impact assessment & effective implementation of the mitigation plans.

Segment-wise performance

The Aluminium division of the Company contributed a total of Rs. 133.45 Lakh in the revenue of Company as compared to Rs. 2228.87 Lakh in the previous year. The Company Wind Turbine Generators (WTG) & Solar Power Plants with total power generation capacity of 3.77 Mega Watts contributed Rs. 176.42 Lakh in the total revenue of the Company as compared to Rs. 200.95 Lakh in the previous year.

Outlook

Going ahead your company plans to look for new opportunities in other lines of business.

Risk and concern

The Company recognises that risk is an integral part of business and is committed to managing the risks in a proactive and efficient manner.

Internal control system and their adequacy

The Company has an Internal Financial Control system in place, commensurate with size, scale and its operations to ensure proper recording of financial and operational information and compliance of various internal controls, statutory compliances and other regulatory compliances.

Performance

Your Company has phased out manufacturing activities in its premises situated at Survey No.1/1 & 1/2, Village Khutali, Khanvel- Doodhani Road, Silvassa - 396230 (UT of DNH) and has commenced equipment sale in the said location. Further, decisions relating to the Company premises are still under consideration.

Once this is done, we will look at new opportunities to get into. This will translate to better performance in the coming years.

Development in human resource / industrial relations

The company places high importance on the development of its human resources. It imparts regular training to its employees to make them more focused to adapt to the constant change in the business environment. Industrial relation in the units was satisfactory.

Key Financial Ratios with details of significant changes:

Consolidated Ratio	Consolidated
	2022-23	2021-22
Debtors Turnover	0.43	3.21
Inventory Turnover	1.29	3.53
Interest Coverage	8.41	0.77
Current Ratio	6.75	2.63
Debt Equity	0.04	0.30
Operating Profit Margin (%)	-	(0.16)
Net Profit /(Loss) Margin (%)	(212.35%)	(3.28%)
Change in Net Worth as compare to previous year	16.87%	(13%)