Techno Forge Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Steel Industries under core sector and basic requirement for industrial and country development. Being capital intensive government public expenditure with private partnership is essential.

a) Industry Structure

Government has to increase IMPORT Duty on Imports of steel and Government projects to be execute immediately, so, Demand will be increase.

b) Corporate Governance

Being steel process industry is in transmission stage of adoption of international technology, so, cost effective and mass production will be key factor in process industries.

Our company has adopted corporate governance and corporate responsibilities such as no discrimination of cast/sex/religion/culture, conservation of energy, education, training for staff for handling disaster management, human face of economics etc.

c) Opportunities and Threats

The improvement in the world wide economy has fuelled greater demand for infrastructure developments which have, in turn, led to increase in the steel demand all over the world. India as a major steel producer offers an excellent business opportunity which is expected to continue for some more years to come.

The major threats that affect the performance of the steel industry are often attributed to low steel consumption, higher cost of various inputs, higher transportation cost, cheaper imports of finished products etc.

Your Company has, however, analyzed the trends in the steel industry and rapid development occurring in the world of steel. Strategies are constantly reworked to minimize the adverse implications.

Further due to COVID-19 epidemic, there is uncertainty in Industry, which is considered to be one of threats.

d) Outlook

It is expected that the Government would remain committed to development in infrastructure facilities, globalization and carrying out third generation economic reforms which would lead to rise in demand for steel and other related products. Consistent growth in global as well as Indian economy points out to a bright future for the steel and other related industries.

e) Risks and Concerns:

Your Company has taken a number of steps with a view to keep its position intact in the market. Your Company has been in constant touch with its valuable Customers and has been attempting to rope in new customers and widen its customer base which will all help the Company when it restarts its operations.

Your Company has also been in touch with major suppliers so that non-availability of any critical inputs on time does not pose any problem in future.

All the fixed and current assets have been insured on the basis of market value (indemnity) and as per expert opinion of an approved valuer, and security has been stepped up at plant premises to safeguard the properties of the Company.

For exports exchange rate risk is very closely monitored and with currencies such as US Dollar and Euro being volatile the company is also forward booking and making options against the exports. However, the total exports of the company are not more than 10% of entire sales.

f) Adequacy of Internal Control

The Company has an adequate internal controls system commensurate with its size and the nature of its business. The Audit Committee of the Board of Directors reviews the adequacy of internal controls.

g) Human Resource Development

Your Company continued to have cordial and harmonious relations with its employees.

h) Discussion on financial performance with respect to operational performance

During the year Company registered a turnover of Rs. 4219.07 Lacs as compared to previous year of Rs. 2748.85 Lacs.