contil india ltd Management discussions

Global Economy

The exports of agricultural and processed food products rose by 13% in the first nine months of the current Financial Year 2022-23 (April-December) in comparison to the corresponding period of FY 2021-22. The initiatives taken by the government have helped in achieving 84% of the total export target for the year 202223 in the first nine months of the current fiscal.

The export of pulses has witnessed an increase of 80.38% in nine months of the current fiscal in compare to the same months of the last fiscal as the export of lentils increased from $242 million (April-December 2021-22) to $436 million (April-December 2022-23).

Basmati Rice exports witnessed a growth of 40.26% in nine months of FY 2022-23 as its export increased from $2379 million (April-December 2021) to $3337 million (April-December 2022), while the export of non-Basmati rice registered a growth of 4% in nine months of current fiscal. Non-basmati rice export increased to $4663 million in nine months of the current fiscal from $4512 million in the corresponding months of the previous year.

On the achievement, M Angamuthu, Chairman, APEDA, said, "we have been engaged with all the stakeholders such as farmers, exporters, processors and Indian missions to ensure that quality and high value agricultural and processed food products are exported from the country."

APEDA has also taken several initiatives to promote products having registered geographical indications (GI) in India by organising virtual Buyer Seller Meets on agricultural and food products with the United Arab Emirates and on GI products, including handicrafts with the US.

INDUSTRY STRUCTURE AND DEVELOPMENT

M/S.CONTIL INDIA LIMITED is engaged in the business of export of the Foods and grocery and the shipment of the containers are loaded regularly for export to Canada, North American Continents. All the important decisions are drawn from time to time from the registered office of the company.

EMERGING TREND AND FUTURE OUTLOOK

India is expected to be 3rd largest economy by 2030. Studies indicate a near tripling of household disposable income and burgeoning middle class which will comprise over 40% of India population. If the international commodity markets are improved and the economic and fiscal policies with trade liberalization by importing countries are stabilized the export market in the foods and grocery substances can register the remarkable rise benefitting to our company in India by export profits.

We can therefore, expect that would be manifold increase in footfall in foods and grocery substances in India.

FORWARD LOOKING STATEMENTS

The report contains forward-looking statements identified by words like plans, expects, will, believes, Projects, estimates and so on. All statements that address expectation or projection about the future, but not limited to the Companys strategy for growth, Market position, expenditure and financial results are forwardlooking statements. Since these are based on certain assumptions and expectation of future events, the company cannot give guarantee that these are accurate or will be realized.

BUSINESS STRATEGY

Your company is in business of foods and grocery substances and in that direction has integrated the investment process into the Canadian conglomerate through which the export is expanded.

The Board of Directors of your company has charted the visionary plan to fasten the economical and effective broad base line of export of foods and groceries in ever growing Gujarat State to grab the opportunity of increase in demand in foreign countries. Your promoter Directors with their good will and brand image of CONTIL has articulated inroads in to the super markets, malls, hotel, restaurants, motels, Indian stores in the smart cities in Canada & USA.

RISKS AND CONCERNS

"Visitors safety" being of utmost concern, your company continuously ensures high quality maintenance of all its quality foods and grocery substance export to meet with the legal obligations of the governing laws.

Even though the promoter Directors of your company takes absolutely well engineered caution and visionary planning the demand recession if any, foreign government policies, foreign exchange fluctuations, trade and commerce position etc. will directly have impact in the export trade of foods and groceries.

Recognizing the needs associated with the various facts of the business of your company, your company has already formulated a Risk management Framework in consultation with various functional heads to identify, assess and mitigate the major areas of risk associated with the business of the company. The Risk Management framework is reviewed by the Audit committee and Board of Director on regular basis

INTERNAL FINANCIAL CONTROL SYSTEM AND THEIR ADEQUACY:

Your company has adequate internal procedure commensurate with the companys size and nature of the business. The objects of these procedures are to ensure efficient use and protection of the companys resource, accuracy in Financial Reporting and due compliances of statute and company procedure.

The existing system provides for structured work instruction, clearly laid down procedures of authorization and approvals for purchase and sale of goods, providing accurate services, reserve responsibility of custodial control with identified personnel, and used of computerized system to ensure control at source.

HUMAN RESOURCE MANAGEMENT

Ours is a continuous quest to offer the finest guest experience and we are constantly reinventing ourselves in the sector that is on the move.

Your company firmly believes that its greatest strength lies in the quality of its manpower. The companys "People philosophy" has given it a competitive edge as its guest are served by bright, enthusiastic and committed employees who anticipate guests needs and deliver exceptional services with genuine warmth.

There is a conscious effort on the part of the management to develop the knowledge, skills and attitudes of its people through variety of training interventions specifically aimed at as individuals need with a specific thrust on enhancing functional / domain knowledge across disciplines.

The employees and management relations remained cordial through 2022-23.

OUTLOOK

With aggressive marketing schemes, good numbers of booking of export orders for foods and grocery substance barring unforeseen developments your company is confident to expand the horizons of the business in other countries also with well-engineered caution and risk.

CAUTIONARY STATEMENTS

Statement in the Directors Report and The Management Discussion & Analysis describing the companys objectives, projections, claims, disclaims, estimates, achievements are forward looking statements and progressive within the meaning of applicable security laws, and regulations. Actual results may vary from these expressed or implied depending on the economic conditions, global recessionary trends Governmental policies, cost inflations, crude oil price movements and all other incidental factors affecting the performance of your company. Industry information contained in the Report, have been based on information gathered from various published and unpublished report and their accuracy, reliability and completeness cannot be assured.