IEL Ltd Management Discussions

A. INDUSTRY STRUCTURE AND DEVELOPMENT:

The Company has established trading exports and indenting business for chemicals and commodities and is now concentrating to scale up the same.

The management is concentrating to develop and diversify into various intermediates and derivative products for chemicals and commodities having good potentiality for volume business for sustainable and stable future growth. Also the management is exploring various business opportunities for future growth and stability.

Experience of the present promoters will benefit the Company in scaling up present business and also to venture into a new business for the sustainable operations of the Company The management is committed and desirous to scale up trading and export business with a view to enhance stakeholders values.

Barring unforeseen circumstances, the management is confident of achieving higher turnover and margins in due course of the time.

B. OPPORTUNITIES, THREATS, RISK AND CONCERNS:

The situation arisen due to Russia Ukraine war and also post COVID 2019 pandemic has resulted into challenges for the world economies due to exceptionally high inflations, need for tight monetary policies, high volatility, much increased commodity and industrial product prices besides consumer goods prices. It is anticipated that the major world economies particularly developed economies will face recession or stagnation. All these factors will be having far reaching economical and social impact at a global level in multiple ways. The general business sentiments as prevailing are dull and will have an impact on the operations of the Company since the Company is concentrating on Chemical and Commodity business. The Company is exploring various business opportunities from the present scenario so as to scale up its business and also diversify into new avenues for the sustainable growth of the Company.

The key threat areas for your Company would be global business environment, government policies, and high cost of manufacturing/sourcing, high cost of funding, inflationary pressure, taxation structure, foreign exchange fluctuations and general domestic and global demand situation. Besides all these, the situation of global economic environment arising post pandemic on account of COVID 2019 and also Russia Ukraine war is also likely to have an adverse impact in short terms due to forecast of slowdown in general economies together with contraction of demands across various business segments and shift in consumption pattern and priorities for various industrial and consumer products.

Your Company has identified the major thrust areas of sensitive business factors to concentrate on for successful scale up its business which it believes to be critical for successful diversification and setting up sustainable business model for enhancing stakeholders value. A well-defined structure has been laid down to assess, monitor and mitigate risk associated with these areas on a continuous basis.

C. OUTLOOK FOR THE YEAR 2023-24:

The management is concentrating to develop and diversify into various intermediates and derivative products for chemicals and commodities having good potentiality for volume business for sustainable and stable future growth. Also the management is exploring various business opportunities for future growth and stability.

Barring unforeseen circumstances and at the right available opportunity the management estimates maintain and also scale up its performance during the current financial year.

D. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has reasonable integrated internal control system which is deemed to be adequate considering the nature and scale of the Company and its business.

E. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO THE OPERATIONAL PERFORMANCE:

The management is working out plan to scale up revenues during the current financial year and it is estimated that during the current financial year the Company will be able to increase its revenues and earnings.

F. MATERIAL DEVELOPMENTS ON HUMAN RESOURCES:

The relationship with employees at all level remained cordial and harmonious during the year. We appreciate for committed contribution made by employees of the Company at all the levels to sustain during the challenging business scenario.