agrimony commodities ltd share price Management discussions


The Indian economy was negatively impacted by an unprecedented health crisis in 2020-21 with the highly contagious corona virus (Covid-19) spreading across the country. In response to the pandemic, Government has taken several proactive preventive and mitigating measures starting with progressive tightening of international travel, issue of advisories for the members of the public, setting up quarantine facilities, contact tracing of persons infected by the virus and various social distancing measures. Government imposed a strict 21 days nationwide lockdown from 25th March, 2020, under the Disaster Management Act, 2005, with subsequent extensions and relaxations, to contain the spread of Covid-19 while ramping up the health infrastructure in the country. The lockdown measures, imposed to contain the spread of Covid-19 pandemic in India, ubiquitously affected employment, business, trade, manufacturing, and services activities. The real Gross Domestic Product (GDP) growth is projected to contract by 7.7 percent in 2020-21 as compared to a growth of 4.2 percent in 2019-20. GDP growth, however, is expected to rebound strongly in 2021-22 owing to the reform measures undertaken by the Government.

The Government announced a special economic and comprehensive package under Atmanirbhar Bharat of Rs. 20 lakh crore - equivalent to 10 percent of Indias GDP to fight the Covid-19 pandemic in India. Several structural reforms announced as part of the package, inter alia, include deregulation of the agricultural sector, change in definition of MSMEs, new PSU policy, commercialization of coal mining, higher FDI limits in defence and space sector, development of Industrial Land/ Land Bank and Industrial Information System, Production Linked Incentive Schemes, revamp of Viability Gap Funding scheme for social infrastructure, new power tariff policy and incentivizing States to undertake sector reforms. Apart from this, various steps were taken to boost consumption which, inter alia, includes cash payment in lieu of the Leave Travel Concessions (LTC) scheme, One-time special Festival advance of 10,000 (interest-free) for central Government employees. Other steps such as Interest-free 50- year loan to states, additional capital expenditure budget for the central Government, launch of Emergency Credit Line Guarantee Scheme (ECLGS) 2.0, 1.46 lakh crore boost for manufacturing through Production-linked incentives for ten Champion Sectors, 18,000 crores additional outlay for PM Awaas Yojana (PMAY) Urban, Equity infusion in National Investment and Infrastructure Fund (NIIF) Debt Platform, Demand booster for Residential Real Estate Income Tax relief for Developers & Home Buyers, Boost for Project Exports, Capital and Industrial Stimulus has been initiated to support economic growth.

As per the first Advance Estimates of annual national income released by the National Statistical Office (NSO), Real GDP is estimated to contract by 7.7 percent in 2 2020-21, as compared to a growth of 4.2 percent in 2019-20. This contraction in GDP growth is mainly attributed to the contraction in industry and services sector. The growth of Gross Value Added (GVA) at constant (2011-12) basic prices is estimated to contract by 7.2 percent in 2020-21, as compared to a growth of 3.9 percent achieved in 2019- 20. Positive growth in real GVA in agriculture & allied sectors at 3.4 percent in 2020- 21 against 4.0 percent in PE of 2019-20 indicates resilience of rural economic activity to the Covid-19 pandemic. From the demand side, private consumption expenditure is estimated to contract at 9.5 percent in 2020-21 as against a growth of 5.3 percent in 2019-20 and fixed investment is estimated to decline by 14.5 percent in 2020-21 as against 2.8 percent in 2019-20. Government consumption final expenditure is estimated to grow at 5.8 percent in 2020-21 as against 11.8 percent in 2019-20. Exports and imports of goods and services are estimated to contract at 8.3 percent and 20.5 percent (at constant prices) respectively in 2020-21.


1. Iron and Steel Industry

India was the worlds second-largest steel producer in 2019. India surpassed Japan to become the worlds second-largest steel producer in 2019, with crude steel production of 111.2 million tonnes (MT). In India, as per Indian Steel Association (ISA), steel demand is estimated to grow 7% in FY20 and FY21.

In FY20, crude steel production and finished steel production in India was 108.5 MT and 101.03 MT, respectively.

Between April 2020 and February 2021, Indias cumulative production of finished steel stood at 85.60 MT while the cumulative production of crude steel stood at 92.78 MT.

Steel companies are looking to restart expansion projects on the back of burgeoning steel processes with a capacity addition of 29 MT. In April 2021, Indias finished steel consumption stood at 6.78 MT.

Also, during the period April 2020 to February 2021 the crude steel production stood at In November 2020, the Steel Authority of India Limited (SAIL) reported 7% YoY growth in crude steel production.

Export and import of finished steel stood at 8.42 MT and 6.69 MT, respectively, in FY20.

Export and import of finished steel stood at 9.49 MT and 4.25 MT, respectively, between

April 2020 and February 2021. In April 2021, Indias export rose by 196% over 2020 and

17% over 2019.

Indias per capita consumption of steel grew at a CAGR of 4.43% from 46 kgs in FY08 to

74.10 kgs in FY19.

Government has taken various steps to boost the sector including the introduction of National Steel Policy 2017 and allowing 100% Foreign Direct Investment (FDI) in the steel sector under the automatic route. According to the data released by Department for Promotion of Industry and Internal Trade (DPIIT), Indian metallurgical industries attracted Foreign Direct Investment (FDI) to the tune of US$ 14.24 billion between April 2000 and September 2020.

The Governments National Steel Policy 2017 aims to increase the per capita steel consumption to 160 kgs by 2030-31. The Government has also promoted policy which provides a minimum value addition of 15% in notified steel products covered under preferential procurement.

In 2019, the Government introduced Steel Scrap Recycling Policy with an aim to reduce import.

The industry is also benefitting from the developments happening across various industries. The new Vehicle Scrappage policy will help in reducing the steel prices since the policy enables recycling the materials used in old vehicles. In the healthcare front, major steel producers are now exceeding their production capacities to produce oxygen cylinders for COVID patients. In 2021, Indian Railways is planning to procure over 11 lakh tons of steel from Steel Authority of India Limited (SAIL) for the track renewal and laying new lines across the country.

In January 2021, the Ministry of Steel, Government of India, signed a Memorandum of Cooperation (MoC) with the Ministry of Economy, Trade and Industry, Government of Japan, to boost the steel sector through joint activities under the framework of India Japan Steel Dialogue.

Under the Union Budget 2020-21, the government allocated Rs. 39.25 crore (US$ 5.4 million) to the Ministry of Steel


2. Textile Industry

The textiles and apparel industry can be broadly divided into two segments - yarn and fibre and processed fabrics and apparel. The domestic textiles and apparel market was estimated at US$ 100 billion in FY19. The textile industry has around 4.5 crore workers including 35.22 lakh handloom workers all over the country. In FY19, growth in private consumption was expected to create strong domestic demand for textiles. Growth in demand is expected to continue at 12% CAGR to reach US$ 220 billion by 2025-26.

Cotton production in India reached 35.4 million bales in FY20*. During FY19, production of fibre in India stood at 1.44 million tonnes (MT) and reached 1.60 MT in FY20 (till January 2020), while that for yarn, the production stood at 4,762 million kgs during same period. The total raw silk production increased by 1% (35,820 MT) in FY20 over the previous year FY19 (35,468 MT) despite COVID-19.

India is the worlds second largest exporter of textiles and clothing. Increased penetration of organised retail, favourable demographics, and rising income level are likely to drive demand for textiles. Cloth production stood at 63.34 billion square meters in FY20 (till January 2020).

Exports of textiles (RMG of all textiles, cotton yarn/fabs./made-ups/handloom products, man-made yarn/fabs./made-ups, handicrafts excl. handmade carpets, carpets and jute mfg. including floor coverings) stood at US$ 29.45 billion, as of March 2021.

The Indian textile and apparel industry is expected to grow to US$ 190 billion by FY26.

The share of the Indias textiles and apparel exports in mercantile shipments was 11% in


Indian apparel market is expected to reach US$ 85 billion by 2021.

India is working on major initiatives, to boost its technical textile industry. Owing to the pandemic, the demand for technical textiles in the form of PPE suits and equipment is on rise. Government is supporting the sector through funding and machinery sponsoring.

Top players in the sector are attaining sustainability in their products by manufacturing textiles that use natural recyclable materials.

Rising Government focus and favourable policies is leading to growth in the textiles and clothing industry. The Ministry of Textiles is encouraging investment through increasing focus on schemes such as Technology Up-gradation Fund Scheme (TUFS). In Union Budget 2020-21, the Government has allocated Rs. 761.90 crore (US$ 109.01 million) for Amended Technology Upgradation Fund Scheme (A-TUFS). The Cabinet Committee on Economic Affairs (CCEA), Government of India has approved a new skill development scheme named Scheme for Capacity Building in Textile Sector (SCBTS). The Government announced a special package to boost export by US$ 31 billion, create one crore job opportunities and attract investment worth Rs. 80,000 crore (US$ 11.93 billion) during 2018-2020. Cumulative FDI (Foreign Direct Investment) inflow in the textiles sector stood at over US$ 3.46 billion between April 2000 to September 2020.

In Union Budget 2020-21, the Government of India has allocated around Rs. 3,515 crore (US$ 502.93 million) to the Ministry of Textiles and Rs. 80 crore (US$ 11.45 million) for the scheme on Integrated Textile Parks. The Ministry of Textiles has announced Rs. 690 crore (US$ 106.58 million) for setting up 21 readymade garment manufacturing units in seven states for development and modernisation of Indian textile sector. National Technical Textiles Mission is proposed for a period from 2020-21 to 2023-24 at an estimated outlay of Rs. 1,480 crore (US$ 211.76 million).

Under the production linked incentive scheme, government has approved Rs. 10,683 crore (US$ 1.44 billion) for manmade fibre and technical textiles manufacturing.

The National Handloom Development Programme has been allocated Rs. 388.21 crore (US$ 55.55 million), whereas, the Integrated Processing Development Scheme has received Rs. 50 crore (US$ 7.15 million) in Union Budget 2020-21.

In March 2021, Minister of Textiles Smriti Irani announced that India will be fully self-reliant in silk production in the next two years.

To support the handloom weavers/weaver entrepreneurs, the Weaver MUDRA Scheme was launched to provide margin money assistance at 20% of the loan amount subject to a maximum of Rs. 10,000 (US$ 134.22) per weaver. The loan is provided at an interest rate of 6% with credit guarantee of three years.

In April 2021, Union Minister Smriti Irani has assured strong support from the Textile

Ministry to reduce industrys dependence on imported machine tools by partnering with engineering organisations for machinery production. She also stated that the PLI scheme for the textile industry is almost ready. The scheme aims to develop Man Made Fiber (MMF) apparel and technical textiles industry by providing incentive from 3-15% on stipulated incremental turnover for five years.

In March 2021, Natco Pharma announced its expansion into pheromone-based technology in order to provide Indian farmers with an integrated pest control solution. The company is planning to introduce its first green-label pheromone product to control ‘pink bollworm in cotton fields. For the pheromone-based mating disruption technology, its Crop Health Science (CHS) division will collaborate with ATGC Biotech Pvt. Ltd. (ATGC).

In March 2021, the state-run Odisha Industrial Infrastructure Development Corporation (IDCO) and Indian Oil Corporation Limited (IOCL) signed an MoU to establish a plastic park in Paradip, Odisha.

In January 2021, the Indian Texpreneurs Federation (ITF) suggested a six-pronged strategy to achieve double-digit growth in the textiles and apparel sector. ITF published the strategy under the theme ‘2021-A year of progress for Indian Textile & Apparel Sector.

In January 2021, the Indo Tibetan Border Police (ITBP) signed an MoU with Khadi and Village Industries Commission (KVIC) for supplying 1.72 lakh cotton khadi durries every year for the Central Armed Police Forces (CAPF).

(Source: analysis-presentation)

3. Agriculture and Allied Industries

India has the second-largest arable land resources in the world. With 20 agri-climatic regions, all the 15 major climates in the world exist in India. The country also has 46 of the 60 soil types in the world. India is the largest producer of spices, pulses, milk, tea, cashew, and jute, and the second largest producer of wheat, rice, fruits and vegetables, sugarcane, cotton, and oilseeds. Further, India is second in the global production of fruits and vegetables and is the largest producer of mango and banana. During 2019-20 crop year, food grain production reached a record of 296.65 million tonnes. In 2020-21, Government of India is targeting food grain production of 298 MT. Consumer spending in India will return to growth in 2021 post the pandemic-led contraction, expanding by as much as 6.6%.

Total area sown with rabi crops was 34.8 million hectares by November 27, 2020, 4% more than the previous season, and 2% above the average of the last five years. According to the Ministry of Agriculture, 44% of wheat and other rabi crops were harvested out of a total of 97 lakh hectares sown area in the 2020-21 rabi season. A total of 50.90 lakh hectares of kharif crops will be sown in the kharif season of 2021-22.

Production of horticulture crops in India reached a record 326.6 million metric tonnes (MMT) in 2020-21 (an increase of 5.81 million metric tonnes over FY20. The production of fruits, flowers, spices and honey is expected to rise. India has the largest livestock population of around 535.78 million, which translates to around 31% of the world population. Milk production in the country is expected to increase to 208 MT in FY21 from 198 MT in FY20, registering a growth of 10% y-o-y.

India can be among the top five exporters of agro-commodities by shifting its focus on cultivation and effectively handholding farmers, according to the World Trade Centre. The total agricultural exports stood at US$ 37.31 billion between April 2020 and February 2021. The principal commodities that posted significant positive growth in exports between FY20 and FY21 were the following:

Wheat and Other Cereals: 727% from Rs. 3,708 crore (US$ 505 million) to Rs. 5,860 crore (US$ 799 million) Non-Basmati Rice: 132% from Rs. 13,130 crore (US$ 1,789) to Rs. 30,277 crore (US$ 4,126 million) Soya Meal: 132% from Rs. 3,087 crore (US$ 421 million) to Rs. 7,224 crore (US$ 984 million) Raw Cotton: 68% from Rs. 6,771 crore (US$ 923 million) to Rs. 11,373 crore (US$ 1,550 million)

Sugar: 39.6% from Rs. 12,226 crore (US$ 1,666 million) to Rs. 17,072 crore (US$ 2,327 million) Spices: 11.5% from Rs. 23,562 crore (US$ 3,211 million) to Rs. 26,257 crore (US$ 3,578 million)

The Agriculture Export Policy, 2018 aimed to increase Indias agricultural export to Rs.

4,19,340 crore (US$ 60 billion) by 2022. Government aims to raise fishery export from India to Rs. 1 lakh crore (US$ 14.31 billion) by 2024-25.

According to Department for Promotion of Industry and Internal Trade (DPIIT), Indian food processing industry attracted Foreign Direct Investment (FDI) equity inflow of about US$ 10.24 billion between April 2000 and December 2020.

Gross Value Added by agriculture, forestry, and fishing was estimated at Rs. 19.48 lakh crore (US$ 276.37 billion) in FY20. Share of agriculture and allied sectors in gross value added (GVA) of India at current prices stood at 17.8 % in FY20.

In November 2020, the agricultural ministry inaugurated the cooperative ‘Nafed programme to help in setting up "Honey Farmer Producers Organisations" for beekeepers in West Bengal, Bihar, Madhya Pradesh, Uttar Pradesh, and Rajasthan.

The Electronic National Agriculture Market (e-NAM), launched in April 2016 to create a unified national market for agricultural commodities by networking existing Agriculture Produce Marketing Committees (APMCs), had 16.6 million farmers and 131,000 traders registered on its platform until May 2020. As per the Union Budget 2021-22, government announced that through e-NAM (National Agriculture Market), ~1.68 crore farmers were registered and trade worth Rs. 1.14 lakh crore (US$ 15.63 billion) was carried out; 1,000 more mandis will be integrated to achieve transparency and bring competitiveness.

The Government of India has introduced several projects to assist the agriculture sector. Pradhan Mantri Gram Sinchai Yojana (PMGSY) aims to irrigate the field of every farmer and improve water use efficiency to achieve the motto, Per Drop More Crop. Overall, the scheme ensures improved access to irrigation. As per the Union Budget 2021-22, Rs. 11,588 crore (US$ 1.5 billion) was allocated to Pradhan Mantri Krishi Sinchai Yojana (PMKSY). As per the Union Budget 2021-22, Rs. 1.33 lakh crore (US$ 18.41 billion) was allocated to the Ministry of Agriculture. The Indian Prime Minister launched the Pradhan Mantri Kisan Samman Nidhi Yojana (PM-Kisan) and transferred Rs. 18,000 crore (US$ 2.45 billion) to bank accounts of >90 million beneficiaries on December 25, 2020. As per the Union Budget 2021-22, Rs. 65,000 crore (US$ 8.9 billion) was allocated to Pradhan Mantri Kisan Samman Nidhi (PM-Kisan). As per the Union Budget 2021-22, Rs. 8,514 crore (US$ 1.17 billion) was allocated to the Department of Agricultural Research and Education.

In April 2021, the Government of India approved a PLI scheme for the food processing sector with an incentive outlay of Rs 10,900 crore (US$ 1,484 million) over a period of six years starting from FY22.

In November 2020, Netafim India, a leading smart irrigation solutions provider, launched FlexNet, a revolutionary mainline and sub-mainline piping for above and below-ground drip irrigation systems for Indian farmers.

In September 2020, the government launched the PM Matsya Sampada Yojana, e-Gopala App and several initiatives in fisheries production, dairy, animal husbandry and agriculture. Under this scheme, an investment of Rs. 20,000 crore (US$ 2.7 billion) will be made in the next 4-5 years in 21 states.

In June 2020, Government introduced Pradhan Mantri Formalization of Micro Food Processing Enterprises (PM-FME) scheme. It is expected to generate total investment of Rs. 35,000 crore (US$ 4.97 billion), generate 9 lakh skilled and semi-skilled employment, and benefit 8 lakh units through access to information, training, better exposure, and formalization.

In May 2020, the Government announced the launch of animal husbandry infrastructure development fund of Rs. 15,000 crore (US$ 2.13 billion).



The Company initially was engaged in the business of imports and exports since 1991 for a period of 19 years but due to the change in management in the Year 2010 it discontinued the import export business and thereafter commenced business of trading in commodities. The Company again underwent a further Change in Management in the Year 2013 after which the company continued the business of trading of commodities but also undertook trading in all types of natural resources, precious metals, textiles and agricultural products on spot basis and from financial year 2014-15 it also entered into Trading of Rice and Pulses.



Experienced management team and a motivated and efficient work force

Our Company is managed by a team of experienced and professional personnel having knowledge of all aspects of marketing, finance and broking. The faith of the management is in the staff and their performance has enabled us to build up capabilities to expand our business.

SWOT Analysis


? Experienced Promoters and management team ? Domain knowledge in dealing in pulses ? Low cost of processing orders and procurement


? Dependence upon Specific Commodities.

? Dependence upon few suppliers and customers for business


? Potential to introduce new commodities and concentrate on higher value addition ? Exiting a particular segment and entering a new segment easier. ? Venturing into Fruits segment


? Commodities are prone to risk changes in natural environment. ? Industry is prone to change in government policies

? There are no entry barriers in our industry which puts us to the threat of competition from new entrants

? Companys Products and Platforms:

The company can carry on the business of buying, selling and trading in all kind of commodities. Company has expertise in Trading in specific commodities such as bullion (gold, silver), energy (crude oil, natural gas), metals, food grains (rice, maize), spices, oil and oil seeds and others. The Subsidiary of the Company offers broking facilities for dealing through the Commodity Exchange of MCX through its membership in MCX.

The Company has entered into the Futures Trading in Commodities since it has opened up spectacular growth opportunities and advantages not only for large cross section of market participants like: producers, processors, traders, corporate, trading centers, importers, exporters, co-operatives, industry associations but for investors community too.

The Company affords us a very dynamic field for diversified investment & trading opportunities in addition to equity markets to the investors.

The Company is in a position to offer comprehensive and prompt service of advising from its expertise and deal in the commodities market through its subsidiary M/s. Advantage Commodities Private Limited, Mumbai which is a TCM (Trading cum Clearing member) of MCX under the Company is entitled to trade on its own accounts as well as on account of its clients.

The company can carry on the business of buying, selling and trading in all kind of commodities.

The Company has a diversified client base that includes HNIs, retail customers, corporate clients and other.


The total operating income of the company for the year under review is Nil as compared to previous years operating income of Rs. 10.40 lakhs /- signifying a drop of 100% in the Turnover. The chief reason for this is the drop-in margin on Steel Products and Fabrics due to which Your Company stopped Trading on these commodities. Your Company further continued its trading on Rice and Pulses.

The companys profit after tax in value terms went up to Rs. 24.83 Lakhs/- during the year as compared to Rs. -75.81 Lakhs/- during previous financial year. The Net Profit ratio is 33.64% in the current financial year 2020-2021 as compared to - 86.06% is previous financial year 2019-20.

The financial performance of the company is as follows:

Particulars As on March 31, 2021 As on March 31, 2020
Revenue from Operation - 10.40
Purchases - -
NP Ratio 33.64 -86.05%
Other Income 73.82 77.68
Finance Cost -13.45 10.26
Employee benefit expenses -11.92 35.91
Net profit before tax 40.60 -75.80
Net profit after tax 24.83 -75.81

Financial Position

Standalone Consolidated
Particulars 31st March 2021 31st March 2020 31st March 2021 31st March 2020
Equity share capital 1139.00 1139.00 1139.00 1139.00
Reserves and surplus 126.05 101.22 79.94 79.94
Gross block (property, plant and equipment including intangible assets) 26.82 26.65 48.80 48.80
Total investments 747.55 721.49 738.70 738.70
Net current assets 597.68 570.60 590.87 590.87
Earnings per share in EPS:
Basic earnings (loss) per share from continuing and discontinued operations: -- -- -- --
Diluted earnings (loss) per share from continuing and discontinued operations: -- -- -- --

The Profitability of the different commodities and other income year-wise are as follows:





S S Pipes



Income 0
Expense 0
Net 0
% 0
Other Exp 0
Net Profit
Before Tax and Exceptional Items 0




S S Pipes



Income 0
Expense 0
Net 0
% 0%
Other Exp 0
Net Profit
Before Tax and Exceptional
Items 0

The above table reveals the performance of different commodities during the current and the previous year.

As far as the Other income by way of Interest Income is concerned the Company has earned an amount of Rs. 73.82 Lakhs in the current year as compared to Rs. 77.68 Lakhs in the previous year showing decrease of 4.97% of the previous year.


The Company has adequate internal control systems for the business processes in respect of all operations, financial reporting, compliance with laws and regulations etc. Internal Control Systems have been designed to provide reasonable assurance that assets are safeguarded and, transactions are executed in accordances with managements authorization and properly recorded and accounting records are adequate for preparation of financial statements and other financial information. Regular internal audits ensure that responsibilities are executed effectively. The Audit Committee reviews the adequacy of internal controls on regular basis. Internal check is conducted on a periodical basis to ascertain the adequacy and effectiveness of internal control systems. It has aligned its current systems of internal financial control with the requirement of Companies Act, 2013. It is intended to increase transparency and accountability in an organizations process of designing and implementing a system of internal control.

Its internal control commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use, executing transactions with properauthorisation and ensuring compliance of corporate policies.

The company has a well-defined delegation of power with authority limits for approving revenue as well as expenditure. Processes for formulating and reviewing annual and long term business plans have been laid down.

Our management assessed the effectiveness of the Companys internal control over financial reporting (as defined in Clause 17 of SEBI Regulations 2015) as of March 31, 2021.

V. R. BHABHRA & Co., the statutory auditors of Agrimony Commodities Limited has audited the financial statements included in this annual report and has issued an attestation report on our internal control over financial reporting (as defined in section 143 of Companies Act 2013).

Based on its evaluation (as defined in section 177 of Companies Act 2013 and Clause 18 of SEBI Regulations 2015), our audit committee has concluded that, as of March 31, 2021, our internal financial controls were adequate and operating effectively.


The Board of Directors has identified various elements of risks which in its opinion may threaten the existence of the Company and have formulated measures to contain and mitigate risks. The Company has adequate internal control systems and procedures to combat identified risks. The audit committee periodically reviews the risks which may potentially affect the companys operations or performance.

Listed below are our key risks with its anticipated impact on the company and mitigation plans.

Key Risks Impact on the Company Mitigation
Business model changes Rapidly evolving technologies are changing technology consumption patterns, creating new classes of buyers within the enterprise, giving rise to entirely new business models and therefore new kinds of competitors. This is resulting in increased demands on the Companys agility to keep pace with the changing customer expectations. Failure to cope may result may result in loss of market share and impact business growth. Focus on Research and Innovation efforts leveraging in house expertise, alliance partnerships, and strong connections in the academic start-up ecosystem, and launching multiple new services Strong customer-centricity which results in organization structures (and reorganizations) that are always aligned to customer needs
Litigation risks Given the scale and geographic spread of the companys operations, litigation risks can arise from commercial disputes and employment related matters. Our rising profile and scale also makes us a target to litigations without any legal merit. In addition to incurring legal costs and distracting management, litigations garner negative media attention and pose reputation risk. Adverse rulings can result in substantive damages. Internal processes and controls adequately ensure compliance with contractual obligations and also that potential disputes are promptly brought to the attention of management and dealt with appropriately
The company has at aim of in-house counsels in all major geographies it operates in. There is a robust mechanism to track and respond to notices as well as defend the Companys position in all claims and litigation
Currency volatility Volatility in currency exchange movements results in transaction and translation exposure. Its functional currency is the Indian Rupee. Appreciation of the Rupee against any major currency could impact the reported revenue in Rupee terms, the profitability and also result in collection losses. It follows a currency hedging policy that is aligned with market best practices, to limit impact of exchange volatility on receivables and earnings Hedging strategy is monitored by the Risk Management Committee on a regular basis
Cyber Attacks Risks of cyber attacks are forever a threat on account of the fast evolving nature of the threat. In addition to impact on business operations, a security breach could result in reputational damage, penalties and legal and financial liabilities Investments in automated prevention and detection solutions Continued reinforcement of stringent security policies & procedures Collaboration with Computer Emergency Response Team (CERT) and other private Cyber Intelligence agencies, and enhanced awareness of emerging cyber threats Enterprise-wide training and awareness programs on Information Security Periodic rigorous testing to validate effectiveness of controls through Vulnerability Assessment and Penetration Testing Internal and external audits


The Employee Relations with the Management continued to be cordial. The Company regards its employees as a great asset and accords high priority to training and development of its employees. The Company recognizes that its human resource is its strength in realizing its goals and objectives.


This report contains forward-looking statements extracted from reports of Government Authorities / Bodies, Industry Associations etc. available on the public domain which may involve risks and uncertainties including, but not limited to, economic conditions, government policies, dependence on certain businesses and other factors. Actual results, performance or achievements could differ materially from those expressed or implied in such forward-looking statements. This report should be read in conjunction with the financial statements included herein and the notes thereto. The Company does not undertake to update these statements.

By Order of the Board of Directors
For Agrimony Commodities Limited
Anandrao Gole
Chairman & Managing Director
DIN: 06668955
Place: Mumbai
Date: September 09, 2021