saptarishi agro industries ltd Management discussions

Annexure B To the Directors Report

A. INDUSTRY STRUCTURE ANDDEVELOPMENTS a) INDUSTRYSTRUCTURE

• Saptarishi Agro Industries Ltd is established in 1994 and Tamil Nadu Industrial Development Corporation (TIDCO) is one of its promoter. It has been a Pioneer Company set up in India for manufacturing Button Mushroom.

• Saptarishi Agro Industries Ltd is a Zero Debt Company. b) DEVELOPMENTS

• Covid-19 Pandemic situation has made company to re-strategize project implementation plan after evaluating market prospects and critical issues.

B. BUSINESS ANALYSIS

Various business aspects such as Manpower, Logistic and retail & delivery are not yet back to normal and needs proper survey and estimations.

C. OPPORTUNITIES AND THREATS & SEGMENT WISE ANALYSIS

The impact of COVID-19 being evident cannot be ignored and has/is affecting the operation.

D. OUTLOOK & RISKS AND CONCERNS

Companys outlook is to analysis Risk and create a sustainable project after reassessment and evaluation.

E. INTERNAL CONTROL SYSTEMS AND THE ADEQUACIES

The Company has adequate system of internal control relating to purchase of stores, raw materials, including components, plant and machinery, equipment and other similar assets and for the sale of goods. The company has suitable internal control system commensurate with the size of the Company and nature of its business.

F. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE.

The Company is not required to have debt servicing. The company has sold scrapped assets situated at the premises. Discussion on financial performance with respect to operational performance has been dealt in the Directors Report

G. LIKELY DEVELOPMENTS IN HR/INDUSTRIALRELATIONS

Company has not recruited employees in place of the relieved ones in absence of any regular activity as they will be idle and wasted. Company has the experience of facing industrial dispute and settlement, etc. Company will be proactive to strengthen its HRD department as a perquisite to restart manufacturing.

H. CAUTIONARY STATEMENT:

Details given herein above to various activities and future plans may be forward looking statements within the meaning of applicable laws and regulations. The actual performance may vary from those expressions implied.

I. KEY FINANCIAL RATIO

Pursuant to amendment made in Schedule V to the SEBI Listing Regulations, details of signifcant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in Key Financial Ratios and any changes in Return on Net Worth of the Company (on standalone basis) including explanations therefore are given below:

Sr. Particulars	FY 2022-23	F.Y. 2021-22	Change in %	Explanation
PROFITABILITY RATIOS (%)
1. Operating Profit Margin	2.75	2.54	8.21	Due to increase in revenue of the
2. Net Profit Margin	1.54	1.27	21.26	Due to increase in revenue of the
3. Return on Net Worth	11.22	11.84	-5.21	Decreased due to change in Profitability of the Company
WORKING CAPITAL RATIOS
4. Debtors Turnover (Days)	21	31		Debtors Turnover Ratio has improved on an account of realization from Debtors.
5. Inventory Turnover (Days)	2	5		Inventory Turnover Ratio has Improved on account of Change in turnover and change in revenue.
GEARING RATIOS
6. Interest Coverage	N.A	N.A	N.A
7. Debt / Equity	N.A	N.A	N.A	-
LIQUIDITY RATIO
8. Current Ratio	1.2	1.1

 

	For & By order of the Board,
	Saptarishi Agro Industries Limited
Date : 14th August, 2023	Krunal R Patel
Place : Ahmedabad	Chairman
	DIN- 02517567