Industry Structure and Developments
A) Covid-19 update -
In March April, 2021 India has witness major cases of second wave commonly known as Delta Variant" of COVID 19 with destructive consequences. Vaccination programme in the country began on 16th January. 2021 which has had a crucial role in reducing the number of deaths, restoring confidence in the economy, and decreasing the effects of the second wave on Indias economy. The CoWIN portal has enabled real time monitoring of status of vaccination drive, vaccine availability and utilization. It helps in registration, tracking of every beneficiary for second dose, generation of digital certificates etc As on 25th November 2021 (7 am), a total of 119.38 crore doses had been administered across the country resulting in a coverage of more than 82% of the adult population with at least one dose of COVID-19 vaccine while around 45% of the adult population has been fully vaccinated against COVID 19. Vaccination has played a very important role in restoring the economy from the outbreak of first wave.
B) Agro industry-
Indias agriculture sector was among the few segments that posted a noticeable growth despite the pandemic concerns India is the largest producer of spices, pulses, milk. tea. cashew and jute, and the second-largest producer of wheat, nee, fruits and vegetables, sugarcane, cotton and oilseeds. It is currently the worlds fourth largest producer of agrochemicals.
The economic growth rate for the Financial Year 2021 22 accounts for ~ 8.7% as compared to Financial year 2020 21 which stood for 7.3%. The growth rate for the financial year 2022-23 is estimated for -9.2%. which is the highest among all economies. The Budget has provided Rs. 2.37 lakh crore direct payment to 1.63 crore farmers for procurement of wheat and paddy. Further, start-ups for agricultural and rural enterpnses will be funded by NABARD. It is also proposed to provide Kisan Drones for crop assessment, digitization of land records, spraying of insecticides and nutrients. A network of 729 Krishi Vigyan Kendras has been established at the district level across the country to ensure that newer technologies such as improved variety seeds of crops, new breeds/ strains of livestock and fish, and improved production and technologies reach to the farmers.
India is among the largest manufacturers of farm equipment like tractors, harvesters and tillers. It accounts for nearly one-third of the overall tractor production globally. Your Company has a wide range of agricultural products ranging from Sprinklers. Bio-fertilizer & natural nutrients. HDPE and PVC pipes, etc. which has contributed significantly in the financial position of the Company. The revenue from the Agro division of the Company amounted to Rs. 22.742 Lacs during the financial year ended on 31 st March. 2022
Strength & Opportunities in the Agricultural Industries:
• Large population and rising urban and rural income have added to growth in demand for agriculture products.
• Changing lifestyle and increasing expenditure on health and nutritional foods have also added to growth in the agricultural sector.
• The Government announced a PLI scheme for the food processing sector with an incentive outlay of Rs 10.900 crore (US S1.484 million)over a period of six years from Financial Year 2022.
• The Krishi UDAN 2.0 scheme proposes assistance and incentive for movement of agri-produce by air transportation.
• In December 2019, the Department of Agriculture. Cooperation and Farmers Welfare created a task force to develop a complete farmers database for better planning, monitoring, strategy formulation and smooth implementation of schemes for the entire country.
C) FMCG Sector -
Fast moving consumer goods (FMCG) sector is Indias fourth largest sector with household and personal care accounting for 50% of FMCG sales in India. Growing awareness, easier access and changing lifestyles have been the key growth drivers for the sector. There are 3 main segments of FMCG i.e. Food & Beverages (F&B). Healthcare and Household & personal care. Indias increasing internet penetration and rising digital maturity along with developing infrastructure has helped to boost online transactions. Many FMCG brands partner with e-commerce platforms such as Dunzo, Flipkart. Grofers and BigBasket to deliver products at the doorstep of consumers during the COVID 19 pandemic.
Introduction of GST as a unified tax regime will lead to re^jvaluation of procurement and distribution arrangements. The rate of GST lies between 0 18% on services and 0-28% on goods. The GST is not applicable in the products like milk. rice. eggs, wheats, etc whereas the products like butter, ghee, dry fruits, etc are chargeable to GST with a rate of 12%.
Your Company also has strong emphasis on TMCG sector with an overall revenue from healthcare division amounted to Rs. 197.35 Lacs during the financial year2021 -22.
Strengths and Opportunities in FMCG sector
• Rising digital connectivity in aties and rural areas is driving the demand for FMCG (through e-commerce portals).
• Indian and multinational TMCG players can leverage India as a strategic sourcing hub for cost competitive product development and manufacturing to cater to international markets.
• With the nse in disposable income, mid and high-income consumers in urban areas have shifted their purchase trend from essential to premium products.
- Indian consumers are highly adaptable to new and innovative products which have provided a wider platform to new entrepreneurs.
• Leading players of consumer products have a strong distribution network in rural India. They also stand to gain from the contnbution of technological advances like internet and e-commerce to better logistics
D) Aluminium Sector-
Aluminum is the second most used metal in the world after steel with an annual consumption of approximately 65 million tonnes (including scrap). India is the fourth-largest producer of aluminium in the world with a share of around 5.33% of the global aluminium output. Demand for aluminium is expected to pick up as the scenario improves for user industries like power, infrastructure and transportation. During the year. Indias primary aluminium demand grew at an average of 14%. However, overall export sales of aluminium grew by 6% during F. Y. 2022.
Your Company has successfully acquired Varron Alumimumm Private Limited (VAPL) under the provisions of Insolvency & Bankruptcy Code (IBC), 2016 vide an order of Honble National Company Law Tribunal (NCLT). Mumbai dated 19th January. 2022. The Corporate Insolvency Resolution Process (CIRP) of VAPL was initiated on 06th November. 2019 under Section 9 of the Insolvency and Bankruptcy Code 2016. wherein Ms. Tanuja Jalan was appointed as Interim Resolution Professional (IRP). who was replaced by Mr. Avil Jerome Menezes.
The manufacturing unit of VAPL is located at Ratnagiri MIDC and is spread over the 11 acres of land. VAPL is engaged in manufacturing and supply of Aluminium alloy. Casting Extrusion. Steel Forging. High Pressure Die Casting. Hot Steel Forging/ Machining and Aluminium. CIAN already has a Manufacturing unit for aluminium based products/ components, therefore in order to expand the existing business, it have showed interest in the Corporate Insolvency Resolution Process (CIRP) of VAPL.
Currently. CIAN is under process of complying with the approved order of Honble National Company Law Tribunal (NCLT). Mumbai and the terms mentioned in the Resolution Plan.
E) Audit and Internal Controls*
CIAN has well-established processes and cleariy defined roles and responsibilities for people at various levels. This, coupled with adequate internal information systems embedded in business automation software, ensures proper information flow for the decision making process. Adherence to these processes is ensured through frequent internal audits. The Executive Committees monitors business operations through regular reviews of performance vis-a vis budgets. An extensive program of internal audit conducted by the internal audit team, reviewed by the Audit Committee, and requisite guidelines and procedures augment the internal controls. The internal control system is designed to ensure that financial and other records are reliable for preparing financial statements and other information. These procedures ensure that all transactions are properly reported and classified in the financial records.
F) Risk Management -
The Company has a well-defined process in place to ensure appropriate identification and treatment of risks. Risk identification exercise is inter woven with the annual planning cycle which ensures both regularity and comprehensiveness. The identification of risk is done at strategic, business, operational and process levels. While the mitigation plan and actions for risks belonging to strategic, business and key critical operational risks driven by senior CIAN leadership, for rest of the risks, operating managers drive the conception and subsequent actioning of mitigation plans.
The key strategic, business and operational risks which are significant in terms of their impact to the overall objectives of the Company along with status of mitigation plans are periodically presented and discussed in the Board Meetings. The Company, through its risk management process, aims to contain the risks within its appetite. There are no risks which in opinion of the Board threaten the operations and existence of the Company.
G) Human Assets-
The Company continued to make significant progress on strengthening HR Processes and Practices to build organization for current as well as future sustainability during the year. The Company focuses on providing individual development and growth in a professional work culture that ensures high performance. The Company has concentrated on enhancing capability of employees that ultimately helps achieving better standards of operations. The Company organizes various Seminars for the upgradation of Employees working skills and management of workload.
H) Forward Looking Statement-
Cautionary Statement Forward looking statements in the Management Discussion and Analysis section are based on certain assumptions/ expectations of future events and are stated as required by applicable laws and regulations. Actual results could differ materially from those expressed or implied. Major factors that could make the difference to the Companys operations could be agro-climatic conditions, government policy, domestic & international market conditions and such other factors, which are beyond control of the management.
For and on behalf of the Board of Directors
Place: Nagpur Date : 29th August 2022
Chairperson DIN: 07143914