indian link chain manufacturers ltd Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

(As per Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

(a) Overview:

The financial year under review continued to remain challenging. An unprecedented and unexpected post pandemic scenarios the world, after the lockdown across the country has lead to many opportunities and a dynamic business environment. Your Directors also wish to record their appreciation for the continued co-operation, support and commitment received from the stakeholders of the Company in rising up to the challenges thrown at them due to COVID-19 crisis and associated shutdown. It was due to their untiring efforts that the Company could resume operations swiftly without delay while following all the required safety procedures as per protocol.

During the year under review, your Company has incurred a loss of Rs. 45.63 lacs as against loss of Rs. 46.17 lacs incurred during the previous year. The Company expects the situation to improve in the year 2023-24. The Company is in the process to enter new line of operations relating to trading in agricultural and organic goods.

(b) Industry Structure and development:

Your Company is currently engaged in the trading and distribution of steel chains & chemicals. While there are handful manufacturers of steels chain and consumption is also limited to limited segments of economy, manufacturing and consumption of chemicals is a very big field. Further company is proposed to enter into the trading for all kinds of crops, Grains, pulses, spices, dry fruits, other edible products etc.

(c) Opportunities and Threats:

Your Company was originally a chain manufacturer. After the manufacturing operations were closed, the Company is trying to develop trading business. Both chains and chemicals offer good opportunity for developing trading activity. However it is very competitive business. Your Company is hopeful of slowly establishing a sustainable business. Further the company has proposed to enter into the business of trading in order to grow and establish more in upcoming year 2023-2024.

(d) Segment wise or product-wise performance:

Name	F.Y. 2022-2023	F.Y. 2021-22
	Rs. In Lakhs	Rs. In Lakhs
Chains	-
Chemicals	-	-

(e) Outlook:

The economy has been passing through a recessionary phase both in Indian and Internationally. The Government is taking several steps to boost the economy and one has to wait and watch for any significant signs for positive sentiment to emerge.

(f) Risks and concerns:

The broader trends in the economy are expected to have a direct impact on your Companys growth prospects as well. Consequently, market demand and supply chains have been affected, significantly increasing the risk of a global economic recession. The impact of the global health pandemic may be different from that estimated as at the date of approval of the financial statements and the Company will continue to closely monitor any material changes to future economic conditions.

Every business has inherent elements of uncertainties and risks e.g. disruption in supply and consumption pattern as also payment delays and bad debts. The Company has to be very careful in selecting its suppliers and consumers. Rising prices and changing government regulations can also affect Companys performance.

(g) Internal control systems and their adequacy:

Your Company has adequate internal Controls commensurate with the size and nature of business. The Audit Committee regularly monitors the business activity and performance.

(h) Discussion on financial performance with respect to operational performance:

Your company has proposed to diversify its business line for the purpose of growth hence the financial performance is average in this year.

(i) Human Resources and Development:

As at present the Company has one employee, i.e. Company Secretary, there are no issues regarding human resources or development. The COVID-19 pandemic has impacted, and may further impact, all of our stakeholders - employees, clients, investors and communities we operate in. The Company would implement a phased and safe return-to-work plan as and when lockdown restrictions are relaxed.

(j) Disclosure to the Board:

Senior Management shall make the disclosure to the Board relating to all material financial and commercial transactions, and where they have personal interest, that may have potential conflict with the interest of the Company at large.

Also your Company is paying rent for the premises it is using for the office purpose to another group concern in which Director is interested. The dealings are at arms length and at prevailing market.

(k) Details of significant changes in key financial ratios along with detailed explanations therefore:

Details of significant changes (25% or more as compared to the immediately previous Financial Year) in key financial ratios in 2022-23

Particulars	Variation (%) Increase/ (Decrease) over previous Financial Year
Debtors Turnover Ratio	Not applicable since the company is not having any sales or trade receivables
Inventory Turnover Ratio	Not applicable since the company is not having any sales or Inventories
Interest Coverage Ratio	Not applicable as Company does not paid any interest
Current Ratio	4.33: 1
Debt Equity Ratio	Not applicable as Company does not have any borrowed funds
Operating Profit Margin (%)	Not applicable since the company is not having any sales
Net Profit Margin (%)	Not applicable since the company is not having any sales

(l) Details of changes in return on net worth as compared to the immediately previous financial year along with a detailed explanation thereof

The Return on Net Worth for the year was -14.57% as compared to -12.87%in the immediate previous financial year.

The Companys operations for the financial year have been impacted by spread of Covid-19. The management of the Company has assessed the impact of the pandemic on its financial results/position such as trade receivables, trade payables and based on its best judgement and reasonable estimate, has concluded that there are no material adjustments required in the Financial Statements. However the impact assessment of Covid-19 is a continuous process, given the uncertainties associated with its duration and nature, it is not possible to estimate the future impact as at the date of approval of this financial statement. The Company continues to monitor the economic effects of the pandemic while taking steps to improve its execution efficiencies and the financial outcome.

(m) Cautionary Statement

Above statements are made looking to business environment and outlook. The actual results may vary depending upon several factors beyond the control of the management.

Place: Mumbai	For The Indian Link Chain Manufacturers Limited
Date: 04-09-2023
	Sd/-	Sd/-
	Vishal Thakkar	Bhavika Thakkar
	Managing Director	Director
	DIN:09798551	DIN:09854905