Maan Aluminium Ltd Management Discussions.

GLOBAL ECONOMIC OUTLOOK

The COVID-19 pandemic continues to have significant implications on the global economy. Industry estimates suggest that the global economy contracted by more than 3% in 2020 but is expected to see a growth of more than 5% this year. Despite this, the growth projections are far short of pre-pandemic levels. However, this growth depends heavily on how rapidly countries can manage further waves of the pandemic through wide scale vaccination programs and continued adherence to COVID-19 guidelines.

Nations worldwide were forcedtoinjectsignificantstimulus packages, including favorable fiscal policies, to keep their economies afloat. If nations fall short on the promise to curb the pandemic by vaccinating large portions of their population or contain waves and slow down COVID-19 transmission, the impact on the economy could be severe with increased financial stress and much slower growth.

INDUSTRY STRUCTURE AND DEVELOPMENT

The outlook for the market continues to be strong driven by increased demand for integrating the latest technologies in the product and solutions offerings, and the growing need to shorten product lifecycles and cutting costs. The growth in the future will be largely driven by spend on innovation. With focus on new delivery models and broader engagement portfolio, the role of outsourcing partners is expected to increase in the future. In this environment, we are very well positioned to deliver accelerated growth with an integrated portfolio that enables us to address the design, build and maintain value chains for clients across industries. While the company has faced certain internal and external headwinds in the last 2 years, we have significantly enhanced our ability to address new opportunities that are now emerging. This has happened through investments in people, technology, training, and innovation.

OPPORTUNITIES AND THREATS

The aluminium business continues to be affected to a large extent by the volatility in the aluminium raw material prices, foreign exchange fluctuations and low quality aluminium products being dumped by neighbouring countries.

BUSINESS PERFORMANCE

During FY 2020-2021, the Company has achieved production of 6960.31 MT as compared to 6535.55 MT during the previous year. Considering the installed capacity of 9000 MT, we have significant spare capacity to increase production and sales level.

Accordingly Company has geared-up marketing activities and production, so as to achieve Production and sale of 9000 MT in coming years.

FUTURE OUTLOOK

Your Company has been able to built-up good order book in all segments and sectors in domestic market. Your Company continues to work towards strengthening domestic order book and improving the international order book going forward. The present order book and the opportunities in the Indian Metal space as well as international market gives good visibility towards a sustainable and profitable growth going forward.

Continuous thrust on using latest technologies, digital platform and better processes would ensure further improvement of margins going forward.

RISK AND CONCERN

The company has an organization-wide ERM framework based on best-in-class standards. It covers various company operations and key criteria such as financial risks, reputation risks, regulatory risks, employee risks, and customer risks. The audit of ERM is periodically carried out by the companys internal auditor, and a report is presented to the Audit Committee.

The company also has an internal risk committee that reviews the risk management process on a periodic basis.

QUALITY CONTROL

Your Company continues to focus on sustained quality control and has build a strong brand image among competition. The Companys manufacturing facility is accredited with the prestigious ISO-9001:2015 certification endorsing its strong quality systems. Your Company continues to focus on sustained quality control and has build a strong Brand image among competition.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The company has adequate systems of internal control commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use or losses, executing transactions with proper authorization, and ensuring compliance with corporate policies. The company has a well-defined manual for delegation of authority, for approving revenue and expenditure. The company uses updated system to record data for accounting, consolidation, and management information purposes, connecting to different locations for the exchange of information.

The internal audit process is designed to review the adequacy of internal control checks andcoversallsignificantareas of the companys global operations.

The company has an Audit Committee of the Board of Directors, the details of which have been provided in the corporate governance report.

REVIEW OF COMPANYS OPERATION

The Companys consolidated revenues during the year are Rs. 405.33 crores, as compared to Rs. 528.06 crores in the previous year. Revenue has declined by 23.24% as compared to the previous year. The Companys profit before exceptional items and tax is Rs. 19.87 crores during the year, as compared to Rs. 9.15 crores in the previous year, a increas of 117.24% over the previous year.

HEALTH & SAFETY

The Company continuously focuses on the health and safety of all its workers and staff. Adequate safety measures have been taken at the plant for the prevention of accidents or other untoward incident. The necessary medical facilities

SUMMARY OF KEY FINANCIAL METRICS AND KEY RATIO

Particulars FY 2020-21 FY 2019-20 Year to Year Change
Debtors Turnover (Times) 7.94 8.66 (0.72)
Inventory Turnover (Times) 20.87 35.90 (15.03)
Interest Coverage ratio (Times) 4.81 2.98 1.83
Current Ratio (Times) 1.35 1.71 (0.36)
Debt Equity Ratio 1.13 0.59 0.54
Operating Profit Margin (%) 6% 3% 0.03
Net Profit Margin (%) 4% 1% 0.03
Return on Net worth (%) 23% 15% 0.08

STATUTORY COMPLIANCE

All the statutory compliance with respect to Securities and Exchange Board of India (Listing obligations and Disclosure Requirements) Regulations, 2015, Income Tax Act, Sales Tax Act, Companies Act, 2013 and all other applicable Acts, and Rules & Regulations are complied with.

INDUSTRIAL RELATIONS & HUMAN RESOURCE MANAGEMENT

The Company has always valued its workforce as their biggest asset. The Company has pool of competitive, dedicated and enthusiastic personnel which is the driving force behind its accelerated growth. The Companys policies and practices ensure a favourable working environment with innovation and motivation. The Company has a dedicated team of around 222 employees as on March 31, 2021 who have been contributing to the process and growth of the Company. The industrial relations continued to remain cordial at all levels of employees during the year. are available for the workers and staff to maintain good health. During the pandemic worldwide, the Company ensures proper sanitisation and safety measures. During the worldwide pandemic situation the Company followed all the norms and advisory issued by the Government of India/State Government.

CAUTIONARY STATEMENT

Statements in the Managements Discussion and Analysis Report describing the Companys objections, estimates and expectations may be "forward looking statements" within the meaning of applicable laws and regulations and futuristic in nature. Actual performance may differ materially from those either expressed or implied. Such statements represent intentions of the management and the efforts put in to realize certain goals. The success in realizing these depends on various factors both internal and external. Investors, therefore, are requested to make their own independent judgment before taking any investment decisions.