Monind Ltd Management Discussions

The global economy showed more resilience than expected in 2023-24 despite the after-effects of the prolonged Russia-Ukraine conflict, though the growth outlook remained weak. Despite the cost-of-living crisis in several countries, sharp currency devaluations and a spike in commodity prices driven largely by the attacks on container ships in the Red Sea, the global economy grew by 3.1% in 2023. With deflation and steady growth, International Monetary Fund (“IMF”) stated that the likelihood of a hard landing has receded, and risks to global growth are broadly balanced. While faster deflation could lead to further easing of financial conditions on the one hand, new commodity price spikes from geopolitical shocks like the Red Sea conflict and resultant supply chain disruptions could prolong tight monetary conditions. In its World Economic Outlook released in January 2024, the IMF stated that the worlds economy would match 2023s growth of 3.1% in 2024 and rise to 3.2% in 2025. Global headline inflation is expected to fall to 5.8% in 2024 and 4.4% in 2025.

The fast pace of infrastructure development in the country over the past decade and the countrys agile response to the COVID pandemic by way of a broad range of fiscal, monetary, and healthcare support coupled with the deft management of crude oil supply at reasonable prices together with the digital revolution put India on a stronger wicket. There is now greater optimism and confidence in the Indian economy, which surpassed UK to become the fifth-largest economy in FY 2022-23.

In the next three years, India is expected to become the third-largest economy in the world, with a GDP of USD 5 trillion. The government has set a higher goal of becoming a ‘Developed Country by 2047.

As per the National Statistical Office (NSO), the Indian economy is estimated to grow by 7.3% in 2023-24, marginally ahead of the 7.2% growth a year ago, mainly due to good showings by mining and quarrying, manufacturing and certain segments of the service sector. The NSO estimates are higher than the 7% GDP growth projection of the Reserve Bank of India (RBI) for the fiscal. This is also higher than the IMFs December 2023 projected growth of 6.3%.

The business/object of the Company is the production of various Ferro alloys, such as Silico Mangenese, Ferro Mangenese and Ferro Chrome that are used in the production of different grades of steel. Steel producers use Ferro manganese, Silico Manganese and Ferro Silicon, while stainless steel units use Ferro alloys and Ferro chrome. Ferro alloys are one of the important inputs in the manufacture of alloys and steel. They are used as deoxidizers and alloy additives in the steel manufacturing process.

As informed in the previous report, the Company owned a plant for production of various Ferro alloys situated at Plot No. 216, Plot No. 217 (part) and Plot No. 218 (part) Sector-C, Urla Industrial Complex, Raipur - 493221, Chhattisgarh situated at leasehold land from Chhattisgarh State Industrial Development Corporation (“CSIDC”) a Govt. of Chhattisgarh Undertaking. Due to non-renewal of the lease of the land by the CSIDC, the company gave its consent to the CSIDC for the disposal of the same at a price being determined by CSIDC. Consequently, the company has received sale consideration of Rs. 1,27,48,861/- (One Crore Twenty Seven Lakhs Forty Eight Thousand Eight Hundred and Sixty One Rupees Only) from CSIDC. Your Company is looking for the various opportunities available and will inform the members at the appropriate time.

The business/object of the Company is the production of various Ferro alloys that are used in the production of different grades of steel. However as informed at the point number 2, the company has sold its plant.

Although, risk/threat is associated with the every business but such risks are mitigated by:

A. Risk Identification (source, event & cause of risk)

B. Risk Assessment (analyzing risk and its implications)

C. Monitoring (developing, implementing and regular following up on risk management)

Following types of risks are involved in the manufacturing/production industries:

A. External/Industry volatility/Competition Risk

B. Pandemic Risk

C. Quality Risk

D. Logistic Risk

E. Regulatory Risk

F. Financial Risk

Risk Management is followed across all the management levels, functions and project areas of the company.

In view of the aforesaid discussion on “Industry Structure & Developments” at point no. 2 to provide and report segment-wise or product-wise performance is not applicable on the company during the Financial Year 2023-2024.

The Company has in place systems and procedures of internal control and checks in operation commensurate with the size and the nature of its business for optimum utilization of available resources. The mechanism of internal control and checks are reviewed by the management, internal and statutory auditors from time to time and suitable changes/modifications are implemented so as to ensure that an effective scheme of checks and balances exists at all times. The Audit Committee of Board of Directors also reviews these matters from time to time in their meetings.

Total revenue of the company for the Financial Year 202-24 is nil. Further, the company has recorded a net Loss after tax of Rs. (197.14) Lakhs for Financial year 2023-2024 as compared to net Loss of Rs. (296.16) Lakhs for the Financial Year 2022-2023.

The Financial Statements of the company are prepared as per the Indian Accounting Standards (Ind AS) and reflects true and fair view of the business transactions and there is no deviation in following the accounting treatment prescribed in the Indian Accounting Standards (Ind AS) for the preparation of Financial Statements of the Company.

During the year under review the Inventory turnover ratio and Debtor turnover ratio has not been computed due to NIL turnover of the Company in the financial year 2023-24 and 2022-23. Further, the Debt equity ratio has not been computed due to negative equity, the Operating Profit Margin has not been computed as there is no revenue from operations in the Company and the net Profit Margin and Interest Coverage Ratio cannot be computed due to losses in the financial year 2023-24 and 2022-23.

10. Details of any change in Return on Net Worth as compared to the immediately previous Financial Year along with a detailed explanation thereof

11.Human Resources

The Company considers its employees as its most valuable asset and key driver in making our brand prominent and promising. The Company is professionally managed with senior management personnel having decades of experience assisted by a team of highly skilled and dedicated professionals. The Company is committed to provide its employees an enabling workplace, ensuring their welfare and offering opportunities to develop and grow. We inspire our employees with meaningful work and passionate teams and enable them to find purpose and make an indelible impact. We focus on promoting a collaborative, transparent and participative organization culture, and have developed strong performance management practices wherein innovation and meritocracy is recognized and rewarded. The Company has been running a successful engagement calendar including various wellness initiatives to help employees in their physical and mental well-being. All these efforts help the Company perform its function in a smooth and efficient manner and focus on achieving greater peaks of success.