Amal Ltd | Annual Report 2022-23 Management Discussion and Analysis The Company manufactures bulk chemicals such as Sulphuric acid and Oleum and their downstream products such as Sulphur dioxide and Sulphur trioxide at its manufacturing site at Ankleshwar. These chemicals find their use in several industries like Dyestuff, Fertiliser, Personal care, Petrochemical, Pharmaceutical, Textile, etc. These chemicals are generally sold locally within a radius of 200 km from the manufacturing site. During 2022-23, revenue from operations decreased by 10% from ` 4,348 lakhs to ` 3,916 lakhs. The world market for Sulphuric acid is estimated at about 283 million tones per annum and the Indian market at about 16 million tones per annum. Both, the world and Indian markets are growing at about 3% per annum. The manufacturing plant of the Company at Ankleshwar has an installed capacity of 140 tones per day of Sulphuric acid (including downstreamproducts). Optimising the product mix is a key factor. The way to succeed in these products is to ensure high capacity utilisation, excellent conversion efficiency and full deployment of the steam. The Company incorporated a wholly-owned subsidiary namely, Amal Speciality Chemicals Ltd (ASCL), in 2020-21. ASCL commenced its operations in the second quarter of 2022-23 and has a capacity to manufacture 300 tones per day of Sulphuric acid (including downstream products). This will help the Company to have a higher market share. The products manufactured by the Company are commodity in nature whose prices and contributions fluctuate significantly. The price of the key raw material Sulphur, varies from month to month. INTERNAL CONTROL SYSTEMS The internal control systems of the Company are commensurate with the nature of its business and size and complexity of its operations. These are routinely tested, certified and upgraded wherever required by the Statutory as well as the Internal Auditors covering all key areas of business. Significant audit observations and follow-up actions and recommendations there on are reported to the Senior Management and Audit Committee for their review. The Company is working with reputed firms specialised in internal audit function. The combined efforts are helping the Company to introduce best practices required to manage its business. HUMAN RESOURCES The Company believes that people are the foundation on which the business is built, and this remains a key focus area. It continued with its drive to institutionalise and upgrade HR processes. In particular, it focused on improving its processes related to recruitment, training and development, performance management and succession planning in order to manage a dynamic and growing business. The training needs are identified based on selfassessment and L+1 assessment. In addition, there are certain standard courses which everyone is expected to go through, depending upon his (her) grade.
RkJQdWJsaXNoZXIy MjA2MDI2