Maximus International Ltd Management Discussions.

The financial year 2020-21 - the year of the pandemic - , the Indian economy was advantageously poised, relative to peers. India was at the foothills of a strong recovery, having regained positive growth, but more importantly, having flattened the infections curve. In a few weeks since then, the situation has altered drastically. Today, India is fighting a ferocious rise in infections and mortalities. New mutant strains have emerged, causing severe strains on healthcare and medical facilities, vaccine supplies and frontline health personnel. The fresh crisis is still unfolding. India has mounted a valiant defense, domestically and globally, to ramp up vaccines and medical support, and save lives.

Simultaneously, shoring up livelihoods and restoring normalcy in access to workplaces, education and incomes becomes an imperative. The devastating speed with which the virus affects different regions of the country has to be matched by swift-footed and wide-ranging actions that are calibrated, sequenced and well-timed so as reach out to various sections of society and business, right down to the smallest and the most vulnerable.


The global economy is exhibiting incipient signs of recovery as countries renew their tryst with growth, supported by monetary and fiscal stimulus. Still, activity remains uneven across countries and sectors. The outlook is highly uncertain and clouded with downside risks. In April 2021, the International Monetary Fund (IMF) revised up its global growth projection for 2021 to 6.0 per cent on the assumption that vaccines would be available in advanced economies (AEs) and some emerging market economies (EMEs) by the summer of 2021 and in most other countries by the second half of 2022.


Now as far as domestic developments, aggregate supply conditions are underpinned by the resilience of the agricultural sector. The forecast of a normal monsoon by the India Meteorological Department (IMD) is expected to sustain rural demand and overall output in 2021-22, while also having a soothing impact on inflation pressures.

Aggregate demand conditions, particularly in contact-intensive services, are likely to see a temporary dip, depending on how the COVID situation unfolds. With restrictions and containment measures being localised and targeted, businesses and households are learning to adapt. Reports suggest that the disruption in manufacturing units so far is minimal. Consumption demand is holding up, with sales of consumer goods rising in double digits. Overall, the high frequency indicators are emitting mixed signals. However, we need to see the impact of the second wave on macro-economic and financial conditions.

CPI inflation edged up to 5.5 per cent in March 2021. The inflation trajectory over the rest of the year will be shaped by the COVID-19 infections and the impact of localised containment measures on supply chains and logistics.

In the external sector, Indias merchandise exports and imports rose sharply in March 2021. For the year 2020-21 as a whole, the merchandise trade deficit shrank to US $98.6 billion from US $ 161 billion a year ago. Indias merchandise exports and imports continue to witness broad-based robust growth performance in coming time.

Small businesses and financial entities at the grass root level are bearing the biggest brunt of the second wave of infections. RBI is doing continuing assessment of the macroeconomic situation and financial market conditions and takes suitable measures.


On the whole, Indias economic outlook looks promising. Government officials and industry experts claim that this year, India will witness an increase in the employment rate, particularly in the banking sector and the IT sector is expected to rise, with an increase in the demand for outsourcing in the US and other developed countries..

And this is exactly what is happening in India - there has been an increase in the export value of engineering goods and readymade garments and textiles and it is expected that Indias current account deficit might get reduced.

In the conclusion, the economy was on declining trend in FY 2020 (April 2020-March 2021) as Covid-19 containment measures hamper domestic activity and external demand. Moreover, the ongoing spread of the virus and potential snap-back of lockdown measures, coupled with fiscal stimulus measures falling well short of the mark, continue to pose a downside risk to the outlook and however GDP is expected at 9.2% in FY 2021.


Your Company has earned total revenue of Rs. 554.24 Lakhs with a net profit of Rs. 24.40 Lakhs during the Financial Year 2020-21.

Your Companys performance during the Financial Year 2020-21 is as follows:

(Rs. in Lakh)

Standalone basis

Particulars 2020-21 IGHT>2019-20
Revenue from Operations 470.18 498.64
Other Income 84.06 104.09
Total Income 554.24 602.73
Cost of materials consumed
Purchase of stock - in - Trade 363.41 384.37
Changes in inventories to finished goods and stock in trade (0.43)
Employee benefits expense 34.52 36.16
Finance Cost 20.27 28.70
Depreciation and amortization expense 25.74 22.13
Other expenses 71.62 57.86
Total expenses 515.14 529.22
Profit /(Loss) before Tax 39.10 73.51
Less: Tax Expenses
Current Tax 12.54 19.43
Deferred Tax 0.86 (2.70)
Excess or short provision of earlier years 1.30
Net profit/(loss) for the year 24.40 56.78
Other Comprehensive income / (loss) (net of tax) (89.11) 16.77
Total Comprehensive income / (loss) for the year (64.71) 73.55



The following factors present specific opportunities across our businesses viz.

a) Increasing Demand from Customers

b) Large Potential

c) Opening up of new markets


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;


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.


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 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.


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.