ans industries ltd Management discussions

The Company is operating only one segment Vis Food Processing .However the company has not processed any green pea during the year.

1. Industry Structure and Outlook

In India, the domestic consumption behavior is undergoing a transformation and this change has been confirmed by an independent study initiated by the Company. These changes bode well for the Indian Frozen Foods industry where current penetration levels are substantially tower than other Asian countries.

In terms of international competitiveness as a supplier, India has strong fundamentals. It has the worlds second largest arable land and its climatic and soil diversity allows it to produce a host of tropical and exotic crops. Internationally trade in processed foods is growing and represents 75% of global agricultural trade.

In recognition of the above, the Government of India and select State Governments are offering a series of incentives to the industry for the establishment and expansion of food processing facilities and food chain.

2. Opportunities and Threats

Frozen products offer a variety of benefits to consumers in terms of reduced time and labour costs, quality, product consistency, reduced prep- time, portion control, convenience, and avoidance of wastage, ease of storage, price stability and economics. The Foods Services Industry is an untapped segment of the market of the emerging frozen food market and presents itself as a significant opportunity.

The major threats to the industry arise out of backward integration of the emerging formats into private labeling, stringent food laws and stiff import duties of these products of importing countries and aggressive export pricing by China that can virtually block exports from India.

3. Risks and concerns

The Food Processing Business is dependent upon an assured supply of quality raw materials at competitive and predictable prices. Fluctuations in raw material prices and crop failures due to adverse climatic conditions present a business risk.

Whilst the country boasts of a large and diverse supply of raw materials, horticulture production in the country is primarily targeted towards production for the wet market. The pace at which the horticulture practices transform is a concern. The products are stored and transported at sub - zero temperature and third party facilities are used extensively. Whilst a risk assessment is carried out in the selection and engagement of these third party facilities are used extensively, therefore the risks exist.

4. INTERNAL FINANCIAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has an internal control system, commensurate with the size, scale and complexity of its operation, the scope and authority of the internal audit function is well defined in the organization.

To maintain its objectivity and independence, internal audit function is laid before the Audit committee of the Board. Based on the report of the internal audit & Audit Committee observation, corrective actions are undertaken by the respective department and thereby strengthen the controls.

5. Segment-wise Financial Performance

Segment wise performance is not applicable as the company is operating in only one segment.

6. Financial & Operational Performance

The total revenue during the year under review was Rs. 25.76 Lacs as against Rs. 2.03 Lacs during the previous year financial year. The Company has registered net loss of Rs. 164.80 Lacs as against the net loss of Rs. 189.99 Lacs during the previous financial year.

7. Human resources development and industrial relations

The current strength of staff is 10. A higher than normal attrition rate was observed primarily on account of changes in the industry and the transformation. Industrial relations at the plant during the year were cordial.

8. Disclosure of Accounting Treatment

In the preparation of the financial statements, the company has followed the Accounting Standards referred to in Section 133 of the Companies Act, 2013.

9. Cautionary Statement:

The statement in the Management Discussions and Analysis Report with regards to the projections, estimates and expectations have been made in good faith. But Achievement of results is subject to the Risks, uncertainty and moreover condition of weather and availability and supply of raw material.

By order of the Board of Directors ANS Industries Limited

	Sd/-	Sd/-
	(Mehinder Sharma)	(Dhruv Sharma)
Date : 28.08.2023	Managing Director	Director
Place : New Delhi	DIN: 00036252	DIN: 07844050