Macroeconomic Overview
Throughout 2022, the global economy demonstrated resilience in its
growth momentum, positioning itself towards a positive outlook. However, the year started
with certain obstacles, including the ongoing Russia-Ukraine geopolitical crisis, supply
chain disruptions, rising energy prices, and mounting inflationary pressure. Globally,
central banks raised policy rates to stimulate economic activities and curb inflation.
According to the International Monetary Funds April 2023
forecast, the global economy witnessed a growth rate of 3.4% in 2022 as supply chain
issues eased and headline inflation decreased due to lower energy and food prices.
Emerging economies continued to outperform advanced economies, and are
projected to expand from 3.9% in 2022 to an estimated 4.2% in 2023. Increased
international trade and the rise in commodity prices have played crucial roles in
supporting the economies of many emerging countries. These economies are expected to
experience further growth and a potential economic recovery in the second half of 2023.
Conversely, advanced economies are anticipated to undergo a decline in growth to 1.3% in
2023, followed by a modest increase to 1.4% in 2024.
On a global scale, India emerged as one of the fastest-growing
economies, achieving a GDP growth rate of 7% in 2022-23. Despite maintaining a robust
growth momentum, India has faced challenges posed by inflationary pressures since the
beginning of 2022-23. In response, the Reserve Bank of India implemented a series of rate
hikes to alleviate inflationary pressures. The repo rate was raised five consecutive
times, reaching 6.50% in 2022-23. In April, during the first bi-monthly monetary policy
for 2023-24, the RBI decided to keep the repo rate unchanged, indicating a gradual
decrease in inflationary pressure on the economy.
As indicated by S&P Global Ratings, Indias economic growth is
expected to maintain a solid foundation, with a projected growth rate of 6% in 2023-24.
The positive trajectory will be driven by Government policy support, increased
infrastructure spending, increased capital expenditure by the Government, and a focus on
self-reliance through the Atmanirbhar Bharat initiative, shaping Indias long-term
economic outlook positively. It is primarily aimed at achieving a target where
manufacturing contributes 25% to the economys output by
2025. With 17% of the nations GDP and employing over 27.3 million
workers, the manufacturing sector holds immense importance in the Indian economy.
According to the monthly poll released by S&P Global, the seasonally adjusted India
Manufacturing Purchasing Managers Index (PMI) surged to 57.2 in April 2023. This
marked an increase from 56.4 the previous month, indicating a significant improvement in
the sectors health. While the Indian economy is poised to witness strong GDP growth
ahead, hiring trends are also anticipated to sustain their steady pace in 2023. In
December 2022, the all-India unemployment rate, as reported by CMIE, stood at 8.3%.
However, there has been a decline in January, with the
30-day moving average unemployment rate reaching 7.13% in
January 2023. This indicates a positive trend of decreasing
unemployment rates, reflecting improved employment opportunities and market conditions.
Source: https://www.ibef.org/industry/manufacturing-sector-india
https://economictimes.indiatimes.com/jobs/mid-career/indias-workforce-to-see-consistent-hiring-in-2023-despite-economic-uncertainties-survey/articleshow/98453508.cms
https://pib.gov.in/PressReleasePage.aspx?PRID=1903091
https://www.thehindu.com/business/Economy/expecting-slowdown-in-indian-economy-to-61-in-2023-from-68-in-2022-says-imf/article66452776.ece
https://www.hindustantimes.com/india-news/retail-inflation-shoots-up-to-3-month-high-of-6-5-in-jan-as-food-prices-bite-101676312602815.html
Global Chocolate Industry Overview
The global chocolate market has experienced significant growth,
reaching a remarkable size of USD 127.7 billion in 2022. Dark
chocolatestandsoutasasignificant popularity and strong consumer preference. In 2022, the
annual global chocolate consumption stood at roughly 7.5 million tons.
The allure of chocolate goes beyond its delectable taste. Chocolate
consumption can lower stress hormones, such as cortisol, and its inclusion in a regular
diet can reduce health problems. This association of chocolate with happiness and its
calming effect on the mind are anticipated to be the driving forces behind the continued
growth of chocolate sales and the global chocolate the market. Another significant usage
of chocolate as a vital ingredient in desserts and baked products, which remains quite
consistent. An emerging trend in the chocolate market contributing to this growth is the
surging demand for organic chocolates. Health-conscious and well-informed
consumerspresence in theare increasingly opting for organic options, due to their natural,
sustainable characteristics and minimal environmental impact. There is also growing
awareness of the harmful effects of synthetic products, pushing consumers to seek
healthier and eco-friendly alternatives. Moreover, the utilization of novel packaging
solutions is attracting more customers, while rising disposable incomes and increasing
consumer living standards will motivate people to continue to seek indulgence and
higher-quality chocolate products.
The global chocolate market is projected to register a CAGR of 4.4% to
reach USD 165.35 billion by 2028. This growth trajectory is fueled by several factors,
including the increasing research on the health benefits of chocolate consumption and the
rising demand from various end-users. North America is expected to maintain a significant
market, driven by changing lifestyles and the high purchasing power of consumers in the
region. Meanwhile, the Asia-Pacific region, particularly emerging economies like India and
China, is poised for rapid growth. This growth is driven by factors, such as increasing
disposable incomes and evolving consumer preferences. https://www.expertmarketresearch.com/reports/chocolate-market
Global Confectionary Industry Overview
Confectionery products encompass a wide range of food items that are
rich in sugar and other sweeteners. These products utilize various ingredients that
enhance texture, appearance, and elasticity, while also serving as
stabilizers,emulsifiers,gelling agents, and thickening agents. The global sugar and
confectionery products market grew from USD 357.12 billion in 2022 to USD 376.01 billion
in 2023. This growth represents a growth rate of 5.3%, reflecting the widespread appeal of
these delectable treats.
One of the key drivers fueling the growth of the confectionery market
is consumers preference to use confectionery products as gifts, such as cookies,
chocolates, and bakery items. This urges manufacturers to put a higher emphasis on
expanding their product portfolios to offer a wide range of confectionery items, such as
those infused with tropical, nut-based, and exotic flavors, to attract consumers and
provide product distinction.
Confectionery products with low-calorie, high-cocoa, and functional
ingredient-based formulations have become an emerging trend. Health-conscious individuals
actively seek confectionery options that offer indulgence with better nutritional
profiles.
Concerns surrounding the high sugar content in confectionery products
and its association with obesity have prompted a growing demand for sugar-free, low-carb,
and high-protein confectionery foods. These include chocolates, snack bars, and sugar-free
chewing gums. Additionally, portion-controlled packaging and snack bars are also gaining
popularity as healthier alternatives to traditional chocolates. The global sugar and
confectionary market is projected to reach a value of USD 441.31 billion by 2027,
exhibiting a moderate CAGR of 4.1% between 2023-2027.
To meet the changing consumer landscape propelling this expansion,
confectionery businesses are also focusing on digital marketing, product branding, and
online distribution channels to enhance their marketing and selling strategies. These
evolving consumer preferences, coupled with rising to incomes, are also influencing
leverage opportunities in emerging markets like China and India to expand their revenue
base. source: https://www.imarcgroup.com/confectionery-market
https://www.mordorintelligence.com/industry-reports/ confectionery-market-industry
Global Cosmetics Industry Overview
The global cosmetics market amounted to USD 326.4 billion in 2022.
Among the various types of cosmetics, the skincare segment emerged as the largest
contributor. The development of awareness of exterior beauty, along with an
individuals inner intellect, has become one of the major driving reasons for
cosmetics consumption in the worldwide market. It has become an essential element of the
modern individuals lifestyle. As lifestyles change, the cosmetics industry expands
to meet the evolving needs of consumers. This expansion is also influencedby rising
disposable income, greater interest in personal hygiene and physical beauty, and rapid
urbanization.
The skincare and personal care market is experiencing significant
popularity of these products, the increasing global aging population, and enhanced brand
recognition with visibility on social platforms. This demand is being primarily fueled by
risingfashiontrendsand product innovations in hair color, skincare formulations, and
packaging. The aging are population plays a significant increasingly seeking anti-aging
treatments and hair dyes to enhance their appearance. However, the industry continues to
address the challenge of cosmetic products containing harmful chemicals by providing
natural and organic solutions.
The global trend towards organic cosmetics presents a significant for
organic cosmetics, driven by growing awareness of the benefits they offer for the skin,
further propels market expansion. Consumers are becoming increasingly inclined towards
natural products and have a better understanding of the impact of natural ingredient-based
cosmetics on their bodies. To this end, not just women, but even men are seeking cosmetic
products and boosting additional demand across this market. Continuous innovation and
product development by cosmetic manufacturers will significantly shape the future market
potential. With these factors in mind, the global cosmetics market is anticipated to reach
a value of USD 448.43 billion by 2028, exhibiting a promising CAGR of 5.2% during the
forecast period.
(Source: https://www.expertmarketresearch.com/reports/cosmetics-market
https://www.grandviewresearch.com/industry-analysis/cosmetics-market
https://www.cognitivemarketresearch.com/cosmetic-industry-market-report )
Indian Chocolate Market Overview
The Indian chocolate market has experienced remarkable growth, with a
market size of USD 2.4 billion in 2022. This growth can be attributed to various factors
that are interconnected and driving the industry forward. The availability of a wide
variety of chocolates, catering to different dietary preferences and needs, has fueled
consumer interest and exploration of these alternatives. Furthermore, sugar-free, organic,
vegan, and gluten-free chocolates have gained popularity among health-conscious consumers.
is Indias robust economic Another significant growth, which has
positively impacted the per capita disposable incomes of its population. As a result, the
effect is also evident in the Indian chocolate industry, with consumers increasingly
incorporating chocolates into their daily lives, expanding the market beyond occasional
indulgence. The young population in India, comprising the total, serves as a crucial a
significant consumer segment for chocolates. Factors, such as changing lifestyles,
westernization, the growth of the food services sector, and increased value addition
further contribute to market growth.
Dark chocolates, with their lower sugar content, are a popular choice
among consumers. It specifically suits health-conscious consumers, who are increasingly
aware of the link between high sugar intake and chronic diseases like diabetes.
Additionally, there is a growing preference for sustainable and environmentally friendly
packaging in the market, reflecting the shift towards more eco-conscious consumer choices.
The premium chocolate segment is thriving, particularly in the gifting
industry. Indian consumers perceive chocolate selection boxes as more hygienic, luxurious,
and durable, leading to increased sales for gifting purposes. Manufacturers are actively
responding to the demands of health-conscious consumers by producing low-calorie
chocolates to cater to their preferences and boost sales.
According to IMARC Group, the Indian chocolate market is projected to
register a CAGR of 8.8% from 2023 to 2028, reaching USD 4.1 billion by 2028. This
optimistic outlook reflects the continued demand for chocolates, driven by evolving
consumer preferences, increased disposable incomes, and the industrys response to
health and sustainability concerns.
Source: https://www.imarcgroup.com/india-chocolate-market
https://www.mordorintelligence.com/industry-reports/india-chocolate-market)
Indian HoReCa Market Overview
The HoReCa market primarily focuses on the preparation and service of
food and beverages for customers, with two main sectors: organized and unorganized. The
organized sector consists of hotels, restaurants, caf?s, clubs, and similar
establishments, while the unorganized sector includes dhabas, street vendors, food stalls,
and roadside food carts, among others. According to a report by the Federation of Hotel
and Restaurant Associations of India, the HoReCa (Hotels, Restaurants, and Catering)
industry contributes approximately USD 78 billion annually, making up more than 7% of
Indias GDP.
In recent years, the HoReCa market has seen a rise in organized food
processors, particularly those specializing in frozen foods. These processors have
established a strong presence in the industry, with significant contributions from this
channel. The industry is predicted to grow by an impressive
6% by 2022-23, reaching Rs. 341,877 Cr.
The HoReCa industry, also known as the hospitality industry, has
emerged as one of the fastest-growing markets worldwide.
As the organized food services segment demands high-quality raw
materials, this trend has led to the adoption of improved practices and technology
transfers. Additionally, this segment accounts for 75% of sales compared to retail,
contributing to both industry growth and the evolution of modern consumer lifestyles.
By 2025, the HoReCa industry is projected to exceed USD
280 billion, making it one of the fastest-growing sectors. To unlock
its full potential, appropriate Government policies and regulations should be implemented
for the unorganized sector.
Furthermore, students aspiring to join the industry should be made
aware of the job opportunities and vast potential it holds. The implementation of FSSAI
norms and regulations across all sectors, including the unorganized sector, will ensure
safer food and contribute to an improved overall health index for the country. https://hospitality.economictimes.indiatimes.com/news/speaking-heads/the-immense-growth-potential-of-the-indian-horeca-industry/95418714
Indian Confectionary Market Overview
In 2022, the Indian confectionery market value reached Rs. 338.2
billion. The growth of the Indian confectionery market is primarily driven by the
increasing consumer demand for sweet treats and snacks, often sought after as indulgent
and comforting foods. Additionally, the rising trend of gifting confectionery products for
special in occasions and holidays is playing a significant driving market growth. The
market is positively influenced by the wide range of flavors and varieties available to
consumers, including both traditional and exotic options. Furthermore, the constant
innovation and creativity in product development, leading to the introduction of new and
unique confectionery items, are expected to further fuel market expansion. The
confectionery industry also benefits manufacturers to develop new products and expand
their offerings, thereby bolstering the overall market.
In recent times, the market is being catalyzed by ongoing changes in
consumer behavior and dietary habits. Consumers are increasingly inclined towards
confectionery products made with natural ingredients. This shift in preference aligns with
the growing trend of healthier choices among consumers. In addition, key market players
are heavily investing in advertising campaigns to promote their products, and there is a
rising demand for premium chocolates. The wide availability of confectionery products
across various retail channels also contributes to the overall boost in product demand.
As the Indian confectionery market continues to evolve, driven by
factors such as consumer preferences, innovation, and marketing efforts, it is projected
to further expand and reach Rs. 485.9 billion by 2028, registering a
CAGR of 6.3% during the period from 2023 to 2028.
Indian Confectionery Market 2023-2028: Key Industry Highlights,
Competitive Structure, Top Companies Share, Size, Report (digitaljournal.com) India
Confectionery Market 2023: Size Worth RS. 485.9 Billion by 2028 : Growth Rate (CAGR) 6.3%
EIN Presswire (einnews.com)
Company Overview
Manorama Industries Limited (referred to as ‘Our Company or
‘MIL) has been at the forefront of the forest products industry since its
establishment in 2005. As pioneers, our Company has successfully developed an extensive
regional procurement network that spans India for Sal seeds, mango kernel and other Indian
exotic seeds, reaching even the most remote locations. Furthermore, on a global scale, we
proudly import Shea nuts from West Africa.
MILs expertise lies in being a leading supplier of specialty fats
and butter, catering to the demands of the chocolate, confectionery, and cosmetics sectors
globally. In addition to this, we are renowned for our production of sal, shea & mango
based CBE, speciality fats & butters, a remarkable chocolate, confectionary &
cosmetic that exemplifies our commitment to delivering excellence.
At MIL, we take great pride in our global recognition and
industry-leading reputation. Our Company has earned this acclaim through our firm focus on
raw material sustainability and traceability, ensuring the highest standards of quality in
everything we deliver.
Founded in March 2019, Manorama Africa Limited is committed to sourcing
and exporting shea-nuts. Situated in Tema, Ghana, it strategically accesses shea
heartlands through maritime and roadway links. With robust industrial infrastructure,
electricity, water, and skilled workforce, it thrives for industrial production, amplified
by Temas industrial prowess and export-ready port.
Manorama Africa holds Africas finest nuts, prized for their
unblemished quality, high oil content, free from moisture, smoke, and impurities.
Global Footprint
At MIL, we enjoy a global leadership position in the manufacturing and
exporting of our products.
Manufacturing Capacity: Expansion and Enhancement
As of 31 March, 2023, MIL has invested Rs. 1,013.5 million towards an
extensive capital expansion initiative.
Our Company has achieved significant installation and commissioning of
crucial plants and projects. Notably, a 300 TPD solvent extraction plant has been
successfully implemented, leading to cost savings, enhanced yields, improved production
control, efficient inventory management, and a streamlined working capital cycle.
Additionally, our Company has made substantial progress by establishing
a new boiler plant, constructing warehouses, and storehouses within the factory premises
for storing seeds and de-oiled cake. This strategic commissioning has rationalized costs
related to rentals and logistics. The commissioning of a 30, 000-ton capacity refinery
plant and de-gumming plant along with a 15,000 tonnes inter-esterification plant has
successfully addressed the global market demand for our products. This has resulted in an
increase in the total refinery plant capacity to 45,000 tons per annum.
Our fractionation plant, accompanied by necessary infrastructure, is
expected to be operational in H1 2023-24, followed by gradual ramp-up. While facing
macroeconomic challenges in the European region and experiencing increased machine costs
and steel prices, our Company successfully navigated these hurdles. Moreover, the
integration of automation, design, and the assimilation of the new capex with the existing
facility resulted in minor time overruns. Looking ahead, this expansion will significantly
contribute to robust top-line and bottom-line growth. It will allow us to manufacture
specialized and tailored products in accordance with customer requirements.
Indias Rapidly Growing Cosmetic Industry
Rapid growth of Indias cosmetic industry driven by heightened
awareness of beauty products among the youth Increasing demand for beauty services due to
the rising number of working women investing in beauty treatments Expansion of salons and
spas contributing to the growth of the industry Introduction of new products and
innovations fueling market growth
Growing penetration of international players in the
Indian cosmetic market creating opportunities for industry advancement
Health-Conscious Trends and Functional Foods
Health-conscious consumers drive the demand for functional chocolate
and confectionery products that offer added benefits, such as antioxidants, natural
ingredients, and reduced sugar content without hydrogenation and zero transfat
The demand for organic, sugar-free, and low-calorie alternatives is on
the rise, as consumers prioritize healthier options in their diets The prevalence of
high-stress lifestyles and a desire for better nutrition contribute to the growth of
functional and healthier confectionery options
Convenience and Snacking Culture
The busy lifestyles and on-the-go eating habits of consumers,
particularly in emerging nations, have fueled the demand for convenient snacking options,
including chocolate bars, bite-sized confectioneries, and ready-to-eat products The
convenience factor and indulgent nature of chocolate and confectionery make them popular
choices for on-the-go snacking and quick indulgence
Premium and Artisanal Segment
The increasing purchasing power of consumers, coupled with their desire
for unique and high-quality products, has led to a surge in demand for premium and
artisanal chocolates and confectioneries Consumers are willing to pay a premium for
handcrafted, gourmet, and luxury chocolate products, vors, exotic ingredients, and fla
which offer distinct visually appealing packaging
Financial Overview
MIL continued business momentum i n Q4, 2022-23, registering the
highest-ever quarterly results, crossing the milestone of Rs. 1,000 million. Revenues for
2022-23 stood at Rs. 3,508.0 million, registering a growth of 26% year on year as compared
to Rs. 2,791.2 million last year. This performance was despite the rise in prices of one
of the raw materials globally
(Shea nuts), along with lower realizations of olein products.
However, our Company will be able to sell olein-based value-added
products with the commissioning of the new refinery. We reported a very strong absolute
EBITDA growth of 45% year on year, which stood at Rs. 564.5 million as compared to Rs.
389.4 million in the last year. EBITDA margins too improved by ~2.1 bps year, on year
which stood at 16.1%. This improvement in margins reflects our Companys commitment
and focus on operational efficiency and cost controls. PAT the quarter grew by 23% to Rs.
297.4 million as compared to Rs. 241.5 million same last year, while PAT Margins for 2022-
23 stood at 8.5%, marking a rise despite hike in interest cost and
depreciation charged.
The Board hasrecommended finaldividend of Rs. maiden
2 (20%) per equity share on the paid-up equity capital for the year
2022-23, subject to the approval of shareholders.
Particulars |
Numerator |
Denominator |
As of 31 March 2023 |
As of 31 March 2022 |
% Variance |
CuRREnT RATIO |
Current Assets |
Current |
2.82 |
2.95 |
(4.70) |
The current ratio indicates a
companys overall liquidity position. It is widely used by banks in making decisions
regarding the advancing of working capital credit to their clients |
|
Liabilities |
|
|
|
DEBT-EquITy RATIO |
Total Debt |
Total |
0.37 |
0.40 |
(8.76) |
Debt-to-equity ratio compares
a companys total debt to shareholders equity. Both of these numbers can be found in
a companys balance sheet |
|
Shareholders Equity |
|
|
|
DEBT SERvICE COvERAGE RATIO |
Net Profit After |
Interest + |
3.46 |
3.47 |
(0.26) |
Debt service coverage ratio
is used to analyze the firms ability to pay-off current interest and instalments |
Taxes + Depreciation and
Amortizations + Interest +Loss/ (Profit) on Sale of PPE etc. |
Principal Repayments |
|
|
|
RETuRn On EquITy RATIO |
Net Profit AfterTaxes |
Average |
10.51% |
11.69% |
(10.11) |
It measures the profitability
of equity funds invested in the Company. The ratio reveals how profitability of the
equityholders funds have been utilized by the Company. It also measures the
percentage return generated to equity-holders |
|
Shareholders Equity |
|
|
|
InvEnTORy TuRnOvER RATIO |
Sales |
Average |
4.03 |
3.36 |
19.63 |
This ratio also known as
stock turnover ratio and it establishes the relationship between the cost of goods sold
during the period or sales and average inventory held during the period. It measures the
efficiency with which a company utilizes or manages its inventory |
|
Inventory |
|
|
|
TRADE RECEIvABlES TuRnOvER RATIO |
Net Credit Sales |
Average Trade |
13.22 |
11.71 |
12.93 |
It measures the efficiency at
which the Company is managing the receivables |
|
Receivables |
|
|
|
TRADE PAyABlES TuRnOvER RATIO |
Net Credit Purchases |
Average Trade |
34.37 |
27.24 |
26.16 |
It indicates the number of
times sundry creditors have been paid during a period. It is calculated to judge the
requirements of cash for paying sundry creditors. It is calculated by dividing the net
credit purchases by average creditors |
|
Payables |
|
|
|
nET CAPITAl TuRnOvER RATIO |
Net Sales |
Working |
2.00 |
1.50 |
33.00 |
It indicates a companys
effectiveness in using its working capital |
|
Capital |
|
|
|
nET PROFIT RATIO |
Net Profit |
Net Sales |
8.49% |
8.65% |
(1.88) |
It measures the relationship
between net profit and sales of the business |
|
|
|
|
|
RETuRn On CAPITAl EMPlOyED |
Earning Before |
Tangible |
12.52% |
10.38% |
20.61 |
Return on capital employed
indicates the ability of a companys management to generate returns for both the debt
holders and the equity holders. Higher the ratio, more efficiently is the capital being
employedbythe Company to Liabilities generate returns |
Interest and Taxes |
Net Worth + Total Debt +
Deferred Tax |
|
|
|
Risks and Concerns
Environmental and Social Risks in Tribal Areas
MIL operates in tribal regions located in the forests of central India
and West Africa. Our Company is exposed to potential risks arising from adverse
developments in these areas. These risks can have an unpredictable and negative impact on
our Companys operations, including disruptions in the supply chain, damage to
infrastructure, and potential reputational damage. To mitigate this risk, we comply with
local laws and regulations, regularly interact with the tribal population, ensure supply
chain transparency, assess our environmental impact, and implement community development
initiatives.
Regulatory and Compliance Risks
MIL operates in a highly regulated industry, subject to various local,
regional, and international regulations. Compliance with product quality standards,
labeling requirements, safety regulations, and environmental regulations is crucial to
avoid penalties, fines, product recalls, and reputational damage. Additionally, changes in
regulations or the introduction of new regulations can impact our Companys
operations and require costly adjustments to production processes or formulations. Our
Company complies with all relevant laws and regulations to mitigate this risk.
Shifts in Consumer Behavior
Our Company recognizes that changes in consumer preferences, spending
patterns, economic downturns resulting in reduced income levels, and other factors have
the potential to result in a decline in demand for lifestyle-specific products. This
includes high-end chocolates and cosmetics, which are among our offerings. To mitigate
this risk, we have strategically expanded our geographic reach into multiple economies. At
MIL, our aim is to minimize the likelihood of negative changes in one market significantly
affecting our overall business.
Supply Chain Disruptions
MIL operates within a complex global supply chain, relying on multiple
suppliers, transportation networks, and logistics providers. Disruptions in the supply
chain, such as natural disasters, political instability, labor strikes, or disruptions in
transportation, can impact our Companys ability to source raw materials, manufacture
products, and deliver them to customers. We have established diversified sourcing options
and maintain strong relationships with reliable suppliers. At MIL, we actively monitor and
address supply chain issues to mitigate associated risks.
Foreign Exchange (Forex) Risk
Given our Companys status as an export-oriented company,
fluctuations in foreign exchange rates hold considerable influence over our financial
performance.
To effectively manage this risk, at MIL, we have implemented a
comprehensive risk management policy. This policy entails identifying, quantifying, and
mitigating forex risks through the utilization of advanced contract booking techniques.
Internal Financial Control System
At MIL, we place significant emphasis on maintaining an effective
internal financial control system, encompassing both business operations and financial
reporting systems. To ensure its efficiency, regular audits are conducted by management
and internal auditors. The internal control mechanisms are tailored to the size and
complexity of our
Companys operations, ensuring their appropriateness. Integral to
the internal control systems are the comprehensive documentation of policies, guidelines,
and standard operating procedures (SOPs). These serve as vital components, contributing to
our Companys robust internal control framework. We regularly conduct checks and
audits, performed by our internal auditors, to identify any deviations from the
established SOPs. In such instances, we promptly recommend remedial actions for
resolution.
The Audit Committee takes proactive measures by initiating and adopting
the recommendations put forth by the internal auditors. This ensures swift remedial action
and strengthens the overall effectiveness of the internal control systems within our
Company.
HR/Industrial Relations
At MIL, we place a strong emphasis on the well-being and development of
our workforce. Our Company empowers employees to acquire new skill sets that align with
evolving industry demands through rigorous training programs and a proactive approach to
adopting emerging technologies.
Our ‘people-first policy drives us to recruit top talent
from the industry, recognizing the vital role they play in navigating todays rapidly
changing socio-economic landscape.
While continuous skill-building activities contribute to high
production levels, it can be a challenge to sustain a skilled workforce over time. To
address this, at MIL, we prioritize maintaining positive working relationships with our
employees. Our Company strives to provide equal opportunities for growth and implement
robust policies to prevent sexual harassment, particularly among our female employees. By
fostering a healthy work environment, we not only ensure the long-term viability of our
business but also create a culture that values and respects every individual. As of 31
March, 2023, our Company proudly employed a total of 239 dedicated workers who contribute
to our collective success.
Cautionary Statement
Statements made in this Management Discussion and Analysis
Report may contain certain forward-looking statements based on various
assumptions about our Companys present and future business strategies and the
environment in which we operate. Actual results may differ substantially or materially
from those expressed or implied due to risks and uncertainties. These risks and
uncertainties include the effects of economic and political conditions in India and
abroad, volatility in interest rates and in the securities market, new regulations and
Government policies that may impact our Companys businesses, and the ability to
implement strategies. The information contained herein is as of the date referenced, and
our Company does not undertake any obligation to update these statements. Our Company has
obtained all market data and other information from sources believed to be reliable or its
internal estimates, although its accuracy or completeness cannot be guaranteed.
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