Maan Aluminium Ltd Management Discussions.
INDUSTRY STRUCTURE AND DEVELOPMENT
"The aluminium industry is not only growing due to increasing demand for its products but is also in a state of structural transition towards new centres of production; driven by access to long term, economically attractive energy, the growth of new markets and availability of raw materials."
Nearly all branches of global industry consume aluminum. Mechanic engineering, defense industry, aircraft engineering and shipbuilding, power production industry, fabrication of construction materials should be especially mentioned. Thus, aluminum is somewhat a "strategic metal" , possibilities to meet the needs for this metal by means of own capacities directly influence on national energetic, economic, military and transport safety.
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.
During 2018-19, the Company has achieved production of 5955.12 MT as compared to 5204.23 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 1 years time.
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 identifies all type of risk at an early stage which helps it to control them better. The risks are normally perceives from Price fluctuation, government policies, market competition and retention of manpower.
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.
REVIEW OF COMPANYS OPERATION
The Companys consolidated revenues during the year are Rs. 651.99 crores, as compared to Rs. 449.07 crores in the previous year.
Consolidated Revenue Net of Excise, at Rs. 651.99 crores, grew by 45.19% as compared to Rs. 449.07 crores in the previous year. The Companys profit before exceptional items and tax on a consolidated basis is Rs. 14.45 crores during the year, as compared to Rs. 9.77 crores in the previous year, an increase of 47.90% over the previous year.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has internal control system commensurate with its size and nature of business, to ensure that all assets are safeguarded and protected against unauthorized use and that all transactions are authorized, recorded and correctly reported. The internal risks are identified which in turn are allocated to respective designated owners to manage and control the risks. Assets are fully insured against all threats to mitigate risks against unforeseen events.
All the statutory compliance with respect to SEBI regulations, provisions of the listing agreement with the Stock Exchanges, regulation of 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 favorable working environment with innovation and motivation. The Company has always put great emphasis on training and honing the skills of staff at various levels.
The industrial relations continued to remain cordial at all levels of employees during the 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 are available for the workers and staff to maintain good health.
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.