BN Holdings Ltd Management Discussions

Management Discussion & Analysis (MDA) is a report which enables the investors to see the company “through the eyes of Management” MDA provides material, historical and Prospective disclosure that enables the Investors and other user of information to access the financial condition, change in financial condition and result of operations of public Company, especially the companys Prospectus for the future.

Presently, India is the top consumer and importer of edible oil worldwide. The demand for edible oil in India is driven by several important reasons, such as rising rate of urbanisation, changing dietary preferences, and the expansion of the food processing industry sector represent some of the key factors driving the demand of edible oil in India. The need for healthy edible oil in India is mainly driven by the growing consumer health concerns around the increasing prevalence of coronary heart diseases, diabetes, obesity, and gastrointestinal problems. The industry is also being stimulated by the increased public awareness of the numerous health advantages of organic and low-cholesterol edible oil. The domestic availability of edible oil has risen from 86.30 lakh tonnes in 2015-16 to 121.33 lakh tonnes in 2023-24. The total area coverage of all oilseeds has increased from 25.60 million hectares in 2014-15 to 30.08 million hectares in 2023-24(17.5 percent growth). This has reduced the percentage share of imported edible oil, from 63.2 per cent in 2015-16 to 57.3 percent in 2022-23, despite rising domestic demand and consumption pattern. The countrys market is expanding due to the increased demand for edible oil in the food processing industry as food preservatives and avoring agents as well. In addition, the market is being spurred by the growing agricultural sector and the introduction of several efforts to increase the nations output of oilseeds. Additionally, the Indian government is working continuously to reduce its reliance on imports and improve the domestic edible oil supply.

India produces a wide range of edible oils like palm, soybean, mustard, sun ower, and groundnut, that match its diverse food cultures and agricultural practices. Mustard oil is popular in the northern and eastern regions, while the southern part of India prefers coconut oil. Additionally, the country is also seeing an increase in soybean oil production, catering to both domestic needs and increasing demand from the international market.

During the year under review, your company has proposed new frontiers for its growth. Your company has invested and will invest in the companies dealing with agricultural produce, edible oils etc in lieu to increase the share of FMCG, edible oils business of the group companies. The Indian market continues to remain the primary focus of business for your Company. Your company has also step in to International market for expansion of its business.

There are certain internal and external risk factors which are associated with the opportunities taken by the Company like business risk, industry risk, currency risk, regulatory risk etc. However, the management of the company has taken an adequate steps to safeguard the company from such risks before exploring the opportunities.

Your company has put in place elaborate strategic framework with an objective of creating value for stakeholders. Your company has created multiple growth drivers and has taken several initiatives to create high growth business with an aspiration to be internationally recognized leading Food, FMCG Company.

Inspired by this Vision, your directors look forward to the future with con dence and stand

committed to create an even brighter future for all stakeholders.

During the year under review, Company has generated the revenue from its trading activities. Moving ahead, the Company will focus on positioning the revenues and lead towards high growth path in future.

The Company is only operating in one segment.

Your Company ensures that appropriate risk management limits, control mechanisms and mitigation strategies are in place through its ecien t and effective Internal Control System and the same completely corresponds to its size, scale and complexity of operations. The Company strives to put several checks and balances in place to ensure that confidentiality is maintained. E ective procedures and mechanisms are rolled out by a full- edge Internal Audit System to ensure that the interest of the Company is safeguarded at all times. In addition to this, the Risk Assessment policy of the organization is reviewed by the Audit Committee / Board of Directors of your Company.

The Company has carried out the internal audit in-house and has ensure that recording and reporting are adequate and proper, the internal controls exist in the system and that sucien t measures are taken to update the internal control system. The system also ensures that all transaction are appropriately authorised, recorded and reported. Exercises for safeguarding assets and protection against unauthorised use are undertaken from time to time. The Companys audit Committee reviewed the internal control system. All efforts are being made to make the internal control systems more effective. All these measures are continuously reviewed by the management and as and when necessary improvements are affected.

The financial statements have been prepared in compliance with the requirements of IND AS under Section 133 of the Companies Act, 2013 and other accounting principles generally accepted in India.

Pursuant to the Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, that there were significant changes in key financial ratios and Return on Net Worth of the company compared with immediately previous financial year. Detail of the same is mentioned under the financial statements annexed with this report.

Sustainability lies at the heart of BN Groups identity, ingrained in your companys DNA. We are resolutely committed to fostering a culture of sustainable practices that extend throughout every facet of our business operations. From supply chains to production processes, packaging and customer interactions, we prioritize environmentally conscious choices to ensure a positive impact on our planet and the communities we serve.

BN group embark on a new path of diversi cation of your company by exploring the investment opportunities in sectors like FMCG.

The company appreciates the contribution of its human capital and recognizes them as a key asset for the business performance. The Company is committed in ensuring that the work environment is safe and fair. Discrimination and harassment of any type are strictly prohibited.

The company is evolving and has started adopting global best practices in HR domain. HR is becoming more of a strategic partner by ensuring that the company hires the right talent, identifying future core capabilities and making a more focused approach towards the growth of the company. The company is focusing on HR deliverables by continuously improving and automating the HR system, effectively reskilling and upskilling of the employees through continuous improvement programs, driving leadership, culture and experience.

The statements in the "Management Discussion and Analysis Report" section describes the Companys objectives, projections, estimates, expectations and predictions, which may be "forward looking statements" within the meaning of the applicable laws and regulations. The annual results can differ materially from those expressed or implied, depending upon the economic and climatic conditions, Government policies and other incidental factors