maximus international ltd share price Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Noteworthy thing is that economies of world are now settled at a better level. Indian economy has advantageously poised, relative to peers and saw a strong recovery, having regained positive growth.

Our livelihoods are now showing better signs and restored normalcy in workplaces, education and incomes have become imperative. The Governments actions that are calibrated, sequenced and well-timed enable us to reach out to various sections of society and business and right down to the smallest.

GLOBAL ECONOMIC CONDITIONS

World economic activity has proven more resilient than expected causing us to raise our growth forecasts for 2022 - but the outlook for global growth in 2023 has deteriorated. This reflects the prospect of faster-than-anticipated monetary policy tightening and a darkening outlook for the property sector. We expect global growth to fall to 1.4% next year which would, abstracting from the pandemic in 2020, be the weakest expansion since 2008.

Although most of the countries are coming out with better show, various downside risks cloud the outlook, including simultaneous Omicron-driven economic disruptions, further supply bottlenecks, a de-anchoring of inflation expectations, financial stress, climate-related disasters, and a weakening of long-term growth drivers.

Now as far as domestic developments, aggregate supply conditions are underpinned by the resilience of the agricultural sector and that financial sector is also badly affected. The forecast of a normal monsoon by the India Meteorological Department (IMD) is expected to sustain rural demand and overall output in 2022, while also having a soothing impact on inflation pressures.

Global growth is projected to slow significantly amid high inflation, tight monetary policy, and more restrictive credit conditions. The possibility of more widespread bank turmoil and tighter monetary policy could result in even weaker global growth and lead to financial dislocations in the most vulnerable emerging market and developing economies (EMDEs). Comprehensive policy action is needed to foster macroeconomic and financial stability. Among many EMDEs, and especially in low-income countries, bolstering fiscal sustainability will require generating higher revenues, making spending more efficient, and improving debt management practices. Continued international cooperation is also necessary to tackle climate change, support populations affected by crises and hunger, and provide debt relief where needed.

Small businesses and financial entities at the grass root level are doing better. RBI is doing continuous assessment of the macroeconomic situation and financial market conditions and takes suitable measures.

Outlook

India will need a strong rebound in investments to attain sustainable growth. Global uncertainties will weigh on growth this year, but India is poised to grow by 6.5% in the medium term.

Policymakers the world over are currently facing a predicament. The last two years have seen the global economy struggling to deal with overlapping crises, the latest being the liquidity troubles after a series of global bank crises. While the impact appears to have been contained, these uncertainties continue to undermine the confidence among consumers and businesses to spend, therefore impacting economic growth.

# Reported by IMF/WB/Deloitte

REVIEW OF OPERATIONS

Your Company has earned total revenue of 1894.12 Lakhs with a net profit of 55.49 Lakhs during the Financial Year 2022-23. Your Companys performance during the Financial Year 2022-23 is as follows: (Rs. in Lakh)

	Standalone basis
Particulars	2022-23	2021-22
Revenue from Operations	1769.07	429.58
Other Income	125.05	91.87
Total Income	1894.12	521.45
Cost of materials consumed
Purchase of stock - in - Trade	T>1685.13	388.70
Changes in inventories to finished goods and stock in trade	(0.55)	0.07
Employee benefits expense	41.72	37.80
Finance Cost	16.22	16.23
Depreciation and amortization expense	23.23	24.16
Other expenses	59.23	75.22
Total expenses	1824.98	542.18
Profit /(Loss) before Tax	69.14	(20.73)
Less: Tax Expenses
Current Tax	19.37	3.28
Deferred Tax	0.03	(0.93)
Excess or short provision of earlier years	(5.75)	(0.81)
Net profit/(loss) for the year	55.49	(22.27)
Other Comprehensive income / (loss) (net of tax)		58.46
Total Comprehensive income / (loss) for the year	55.49	36.19

OPPORTUNITIES & THREATS

OPPORTUNITIES

The following factors present specific opportunities across our businesses viz. a) Increasing Demand from Customers; b) Large Potential; c) Opening up of new markets

THREATS

Despite the Lubricants and Oils being a global industry, there are significant factors presenting threats to our businesses viz. a) Increased competition from various domestic and international importers, exporters, manufacturers and traders; b) Number of competitors offering products similar to us; c) Continuous pressure on providing high quality, consistent and time bound products and value added services; d) Increased competition from small as well as big players in the lubricant oils and agro-product industry

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an adequate internal control system commensurate with its size and the nature of its business in order to achieve efficiency in operation and optimum utilization of resources. These controls ensure safeguarding of assets, reduction and detection of fraud and error, adequacy and completeness of the accounting records and timely preparation of reliable financial information. Internal audits are conducted in the Company on regular basis.

RISKS AND CONCERNS

Every business has both Risk and Return and they are inseparable. As a responsible management, the Companys principal endeavor is to maximize returns. The Company continues to take all steps necessary to minimize its expenses through detailed studies and interaction with experts. Our senior management identifies and monitors the risk on regular basis and evolves process and system to control and minimize it. With regular check and evaluation business risk can be forecasted to the maximum extent and thus corrective measures can be taken in time.

HUMAN RESOURCES

Human resources are valuable assets for any organization. The employees of the Company have extended a very productive cooperation in the efforts of the management to carry the Company to greater heights. The Company is giving emphasis to upgrade the skills of its human resources and continuous training down the line is a normal feature in the Company to upgrade the skills and knowledge of the employees of the Company.

CAUTIONARY STATEMENT

Statement in this Report describing the Companies objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results may differ materially from those either expressed or implied.