alfavision overseas ltd Management discussions

INDUSTRY STRUCTURE.

Our Company is engaged in the business of Organic farming, cultivation and herbal medicinal farming. Going organic is synonymous with modern-day Indian living. While India has always had a rich legacy of healthy living influenced by Ayurveda, the pandemic once again accelerated the demand for organic foods and an exponential increase in organic consumers. Today, people are becoming more aware of what they consume than ever before. The science of ‘From Farm to the Table has become part and parcel of everyones lives.

Considering the growing demand for healthy natural products, especially among millennials, the Indian organic market will definitely expect a surge in the coming years. According to Expert Market Research (EMR), the Indian organic food market stood at a value of USD 849.5 million in 2020. The market is further expected to grow at a CAGR of about 20.5% in the forecast period of 2021 and 2026 to reach a value of about USD 2601 million by 2026.

The demand of herbal medicinal products has been increased in domestic and international market, and so exports of herbal medicine have reached a value of 100 million dollars a year. Company is having enough land and for the purpose of making proper use of that land, management is planning to cultivate herbal plants over that land, as the demand of herbal product increased drastically in international as well as domestic market. Cultivation of plants over unused land benefited the company. Company will develop such plants with scientific techniques in order to maximize yield. Company is also planning to undertake integrated project for farming, processing and storage of herbal crops on large scale. Besides the company is also embarking upon trading activities on large scale to maximize its margins.

MARKET SIZE

In recent years, consumers in India have displayed a noticeable shift in their food preferences. They are increasingly concerned about the nutritional value and quality of the food they consume, leading them to explore organic alternatives. This change in behaviour stems from a desire to prioritize their health and well-being, as well as a growing awareness of the detrimental effects of chemical-laden farming practices on the environment.

According to a report, the Indian organic food market reached a value of $1,278 million in 2022. The projections are even more impressive, with estimates indicating that the market is expected to reach a value of $4,602 million by 2028, reflecting a compound annual growth rate (CAGR) of 23.8% during the period of 2023-2028. These figures underline the immense potential and promising future of the organic sector in India.

OPPORTUNITIES

Recognizing the economic and environmental benefits of organic farming, the Indian government has taken significant steps to promote and support the organic food market. With the aim of boosting farmers income and realizing the vision of a $5 trillion economy, the government has established a national-level cooperative society for organic products. This initiative serves to facilitate aggregation, branding, and marketing at a large scale, while also providing farmers with affordable testing and certification services. By creating a supportive ecosystem, the government is empowering farmers to tap into the high demand and premium pricing associated with organic products.

BUSINESS STRATEGY

Our company had always endeavoured to optimize shareholder value. The Company is planning to increase Organic Farming as after considering the Location and resources of the company as there is a huge scope available for the company for Organic farming at a Large scale.

OUTLOOK

Our company is engaged in Organic farming and is planning to expand it at a large scale. Company is taking many steps to increase the Sales Turnover, Quantity and Quality as well as the Profit Margins and expects to achieve the optimums in near future.

Also, our Company has adequate area of land at Bhopal which is suitable for Mega Agro activities like Cultivation of medicinal plants organic manure, farming and also development of green dense resorts for entertaining citizens. Company is exploring the various possibilities of developing the said land.

RISK AND CONCERNS

The competition in global market of herbal products affects the business activities of the Company. The loss of such types of specific jadibhutties in nature, lack of processing method also affects the profitability of the Company.

INTERNALCONTROLANDADEQUACY

The company has proper and adequate system of internal controls to ensure that all activities are monitored against any unauthorized use or disposition of assets. The company also ensure adherence to all internal control policies and procedure as well as compliance with all regulatory guidelines. The effectiveness of internal control was reviewed during internal audits carried by the audit committee of the company. An independent review of the internal control system is also carried out by statutory auditors.

PREVENTION OF INSIDER TRADING

In view of the SEBI (Prohibition of Insider Trading) Regulation, 2015 the Company has adopted a Code of Conduct for Prevention of Insider Trading with a view to regulate trading in securities by the Directors and

designated employees of the Company and amended Code/Policy were also hosted on the website of Company. The Code requires Trading Plan, pre-clearance for dealing in the Companys shares and prohibits the purchase or sale of Company shares by the Directors and the designated employees while in possession of unpublished price sensitive information in relation to the Company and during the period when the Trading Window is closed.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL RELATION

There has been no material development on the Human Resources/ industrial Relation front during the year. Employee relations at all level continue to remain cordial.

FINANCIAL PERFORMANCE

The Company Earn a Profit of Rs 68.18 lakhs against a sale of Rs.3081.13 Lakhs after providing for current Income tax and deferred Tax. The Financial Performances of the Company are explained in detail in the Directors report to Shareholders.

CAUTIONARY STATEMENT

This report may contain "forward looking statements", by company, which are not historical in nature. These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, many of which are beyond our control and difficult to predict. This could cause actual results, performance or achievements to differ materially from those estimated in these statements.