The Management of VISTAR AMAR LIMITED presents its Analysis report covering performance
and outlook of the Company. The Management accepts responsibility for the integrity and
objectivity of the nancial statements. However, investors and readers are cautioned that
this discussion contains certain forward looking Statements that involve risk and
uncertainties.
Economic Review
1.1 Global Economy
Throughout the scal year 2022-23, the global economic situation remained challenging.
The rise in in ation, which began in early 2021, accelerated signi cantly throughout 2022.
In response to the spike in in ation, which reached between two and seven decade highs in
the majority of developed nations in 2022, there has been a rapid global increase in
policy interest rates. While in ation reached its peak in most countries during the last
scal year and has declined signi cantly since then, current in ation rates in the majority
of nations remain well above the average for the decade preceding the pandemic. As a
result, monetary policy tightening continues in most countries. In addition, the majority
of central banks have begun withdrawing the liquidity that was injected during the
pandemic, resulting in a tightening of the nancial markets. Despite the fact that actual
growth in many countries in 2022 was higher than had been anticipated, with aggressive
policy tightening, geopolitical uncertainties, rising protectionism, and deteriorating
business and consumer sentiments, the global growth outlook for the current and the
subsequent year remains subdued.
The most recent projections from the World Economic Outlook of the International
Monetary Fund indicate that the global economy is not likely to enter a recession in the
current or the following year. However, with two consecutive quarters of negative GDP
growth, there could be a technical recession in Europe and possibly even in the United
States. However, according to the IMFs projections, the US economy is unlikely to
experience a GDP contraction in the current or following year.
1.2 Indian Economy
Indias economy has now become the fth-largest in the world on nominal GDP (US dollars)
and is set to become the second fastest growing economy in FY 2023, despite the slower
global demand and tightening of monetary policy to manage in ationary pressures.
The Indian economy is projected to record a relatively healthy Gross Domestic Product
(GDP) growth of 6.1% (Source: IMF) in FY 2023 and is showing signs of moderation.
GDP growth is expected to decline to 5.7% in FY 2024, as exports and domestic demand
growth moderate. In ation will slow private consumption but moderate along with improved
global conditions, to accelerate growth to 6.9% in FY 2025. The key drivers for
medium-term growth are increasing public sector expenditure on infrastructure, supply-side
and nancial reforms (GST and better tax compliance, bankruptcy court, bad bank, etc.),
Indias digital architecture that includes the universal payment systems, nationwide
identi cation framework, distribution of welfare schemes, healthcare o cial data stack
intended to solve social, inclusion needs, and logistics and favourable demographics are
expected to set the economy on the path of recovery.
Retail in ation prints peaked in September 2022 and have since begun to ease, helped by
favourable base e ects. In ation is expected to remain sticky in the coming months before
gradually rolling o in 2023-24 as growth slows and input price pressure abates. The USD/Rs
expected to consolidate between 80 and 84 over the next two years.
Industry structure and developments
The India sh market is driven by the huge export potential it o ers. The market
accounts for about 6% of the global production. Currently, the country represents one of
the largest producers of sh in the world. In recent years, India has witnessed a huge
growth both in domestic consumption, as well as the export of shes, consequently enhancing
the India sh market. Also, the per capita consumption of sh has increased over the past
several years.
At present, the consumption of the product in India is being driven by a number of
factors. These include lifestyle changes, the rising cost of meat, and the rising
awareness of sh as a healthy food containing high levels of digestible protein,
cholesterol-lowering capability, and PUFA.
Fish is a limbless cold-blooded vertebrate animal, which has gills and ns. It is
enriched with calcium and phosphorus and are a good source of minerals, like iron, iodine,
magnesium zinc, and potassium. It is a low-fat high-quality protein and is lled with
omega-3 fatty acids and vitamins, including D and B2 (ribo avin).
The global sh meal market is expected to exhibit a growth rate (CAGR) of 7.2% during
2023-2028. Fish meal refers to a feed ingredient that is primarily manufactured by
cooking, pressing, drying, and milling raw sh or sh trimmings.
Growing demand for naturally sourced protein additives in animal feed, rising
consumption of sh as a main food in di erent regions and increasing number of individuals
inclined towards non-vegetarian dishes are some of the key driving factors for the market
growth. However, high cost uctuations and rising substitutes of shmeal products are some
of the factors hindering the market growth. Moreover, the market players have enough
opportunity to come up with new and improved products which is going to boost the share of
shmeal in the global market.
Our Company, "Vistar Amar Limited" is engaged in processing of sh and sh
related activities and is continued to progress in utilizing all the opportunities during
2022-2023.
Opportunities and Strength
i. The Company is expecting a good season ahead.
ii. Experienced Promoters and Management
iii. Strong Relationship with reputed institutional customers
iv. Fully indigenous plant. Experienced Marketing Team
v. Operational Excellence
vi. Quality Control
Threats and risk
High oil prices cause many shermen to reduce their shing activities which may cause raw
material shortage and through past experiences there have been a lot of cyclones delaying
shing.
Other threats and risk
i. Signi cant Economic changes
ii. Seasonal factors
iii. Technological advancement and changes
iv. Real or perceived Product Contamination
v. Signi cant changes in Government or regulatory policies
vi. Competitive prices and desired Quality
Segments
The Company does not have multiple segments. Hence, comments on segments are not
required.
Outlook
With a rapid growthin the aquacultureindustry, your Company believes the use of sh meal
for feed will have a big demand going ahead.
In order to meet the changing market realities, your Company has been following the
philosophy of providing the highest quality products and services at the lowest possible
prices. All endeavours are made to achieve possible cost reduction in every area of
operations. Your Companys philosophy to provide high class quality products i.e. full
value for money, to consumers would greatly bene t in the long run. In the otherwise
increasing cost arena, every expense, whether capital or revenue is minutely reviewed to
achieve all possible savings.
Risks and areas of concern
The Company has a robust Risk Management process in place, which is a holistic,
integrated and structured approach to manage risks with the objective of maximizing
shareholders value.
The risk management process at our Company broadly consists of identi cation,
assessment, mitigation, prioritization and monitoring of risks with the following
objectives:
- Enhance con dence in achieving its desired goals and objectives; - E ectively
restrain threats to acceptable levels; - Take informed decisions about exploiting
opportunities;
The health of our employees is of paramount importance and in this regard the Company
has also range of Covid-19 awareness, prevention and other risk mitigation controls in
place.
Internal control systems and their adequacy
The Company has proper and adequate systems of internal controls in order to ensure
that all assets are safeguarded against loss from unauthorized use of disposition and that
all transactions are authorized recorded and reported correctly. An Audit
Committee headed by a non-executive independent Director is in place to review various
areas of the control systems.
Discussion on nancial performance with respect to operational performance
The details of the nancial performance of the Company are appearing in the Balance
Sheet, Pro t & Loss Account and other nancial statements etc. appearing separately.
Highlights for the year 2022-2023 are as under:
| Sales for the year 2022-2023 |
Rs.641,679.00 |
| Provision for taxation |
Rs.10,835.00 |
| Pro t / Loss after tax |
Rs.31,651.00 |
| Paid up equity share capital as on 31st March, 2023 |
Rs.32,000.00 |
The nancial performance of the Company has been explained in the Directors Report of
the Company for the year 2022-2023 appearing separately.
Signi cant changes in Key Financial Ratio
The details of signi cant changes in Key Financial Ratio alongwith detailed explanation
thereof for the year 2022-2023 (previous year 2021-2022) are given as under:
| Sr. No. Description |
2022-2023 |
2021-2022 |
Remarks |
| 1 Debtors T/O |
7.17 |
7.91 |
NA |
| 2 Inventory T/O |
14.45 |
23.20 |
Due to increase in year end inventory which was sold later on. |
| 3 Interest Coverage Ratio |
NA |
NA |
|
| 4 Current Ratio |
3.36 |
2.56 |
There was some delays in receivable, which are subsequently received and there is no
change is company policy. |
| 5 Debt -Equity Ratio |
NA |
NA |
|
| 6 Operating Pro t Margin (%) |
14.64% |
16.09% |
Operating Margins have reduced majorly due to increase in Power Cost. |
| 7 Net Pro t Margin (%) |
0.05% |
0.06% |
NA |
| 8 Return on Net-Worth (%) |
0.28% |
0.41% |
Pro tability had reduced due to increase in operational cost. |
Material developments in human resources/industrial relations front, including number
of people employed
The Company had su cient numbers of employees at its administrative o ce. The Company
recognizes the importance of human value and ensures that proper encouragement both moral
and nancial is extended to employees to motivate them. The Company enjoyed excellent
relationship with workers and sta during the last year.
Finding labours for day to day work was tough as there was a fearful situation around
due to the ongoing pandemic.
Even during the hard times, the Company ensured to pay full salary to its employees.
Cautionary Statement
All statements made in Management and Discussion Analysis has been made in good faith.
Many unforeseen factors may come into play and a ect the actual results, which may be di
erent from what the management envisages in terms of performance and outlook. Factors such
as economic conditions a ecting demand/supply and priced conditions in markets in which
the Company operates, and changes in Government regulations, tax laws, other statues and
other incidental factors, may a ect the nal results and performance of the Company.
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