Vardhman Concrete Ltd Management Discussions

The key issues of the Management Discussion and Analysis are given below.

Industry Structure and Developments

The Government of India is promoting affordable housing in India, the Management is expecting a boost in the overall development of Industry. The Management is determined to take benefits of the growing demand in the industry.

Opportunities and Threats

Continuing increase in demand of low housing, and slum rehabilitation projects are opportunity of growth to the Company. The major barrier to the growth of the Company is the cost of procurement of input materials and labour.

Risk and Concerns

As per the Management of the Company, the major risk and concerns that might affect the overall Growth and Development of the Company is the inflation and interest rates.

Segment wise performance

The Company is operating in only one segment.

Business Outlook

The Management of the Company is optimistic towards working on capitalizing the opportunities while side-stepping the dangers.

Risk Mitigation

Although the Company has been following the principle of risk minimization as is the norm in every industry, it has now become a compulsion. Therefore, in accordance of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board members were informed about risk assessment and minimization procedures after which the Board formally adopted steps for framing, implementing and monitoring the risk management plan for the Company through Audit Committee. The main objective of this policy is to ensure sustainable business growth with stability and to promote a pro-active approach in reporting, evaluating and resolving risks associated with the business. In order to achieve the key objective, the policy establishes a structured and disciplined approach to Risk Management, in order to guide decisions on risk related issues.

Management Perception and Initiatives

We are taking multi-pronged initiatives to strengthen our capabilities, including securing raw material linkages, augmenting captive green energy capacities, and enhancing efficiencies. The Year 2024 will be both challenging and opportunistic and the ones likely to succeed are those who embrace the changing market dynamics. Apart from elections, credit growth and improvements in infrastructure will set the tone for economic growth in the future. The Management of the Company is optimistic towards the growth and future of the Company by trying to pursue the business of building, bridges and manufacturing of precast concrete girders, slabs, beams and Bed Blocks.

Internal control systems and their adequacy

Considering the size of the Company, the Management of Company is of the opinion that the internal control systems are adequate. However the Management of the Company is always striving to improve and develop the Internal Control Systems.

Discussion on financial performance with respect to operational performance

During the year under review the Company not incurred any revenue from its operations and the management is of the opinion that the Company will be able to generate the revenues in near future.

Material developments in Human Resources / Industrial Relations front, including number of people employed

The Company has in place a policy for Human Resource Management and the Board of Directors is assigned with the responsibility to maintain Industrial relationship.

The Company currently has single employee/KMP.

There are no changes of more than 25% in any of the significant key financial ratios.

^ Key Financial Ratios

By Order of the Board