CRP Risk Management Ltd Management Discussions

INTRODUCTION

Company Background

Our company, with a proud legacy spanning 20 years, has been at the forefront of planning and implementing large-scale projects across India for some of the biggest corporate entities of India and also Global MBCs.

Our expertise has enabled us to successfully execute numerous projects, contributing significantly to Indias operational and risk management landscape.

Vision for the Future

In line with our commitment to evolving and adapting to the changing economic landscape, we are now transitioning to an agro-based business model. This has come after evaluations of multiple sectors in the post covid era & Agro, with its growing global focus on food security in these volatile times, has come up as the most dominant sector for the next decade. This, along with the fact that we have developed the model around our existing strengths makes us very optimistic about this transformation.

Our vision is to emerge as a leading player in Indias agro sector, leveraging our experience to drive growth in Contract Farming, Food Processing, Domestic Trade, and Exports.

OPPORTUNITIES:

Growing Demand for Agro Products

The increasing population and rising disposable incomes are driving demand for diverse agricultural products. This trend offers a lucrative market for high-quality, processed, and fresh agricultural goods.

Government Support

The Indian government has been proactive in supporting the agro sector through various schemes and subsidies, making it an opportune time to invest in agriculture and allied activities.

Technological Advancements

Innovations in agricultural technology, such as precision farming, biotechnology, and digital agriculture, present opportunities to enhance productivity, reduce costs, and improve product quality.

Export Potential

The global market for agro products is expanding, providing opportunities for exporting high-quality Indian agricultural goods to international markets, particularly in regions with high demand for organic and exotic products.

STRENGTHS:

Established Legacy

Our two-decade-long experience in large-scale project management equips us with the necessary skills to handle complex agro projects efficiently.

Pan-India Presence

Our extensive network across India allows us to implement our agro-based initiatives effectively, ensuring reach and scalability.

Strong Planning Position

Our robust planning enables us to invest in advanced technologies, infrastructure, and R&D, ensuring a competitive edge in the agro sector.

Export Potential

The global market for agro products is expanding, providing opportunities for exporting high-quality Indian agricultural goods to international markets, particularly in regions with high demand for organic and exotic products.

Skilled Workforce

Our team comprises seasoned professionals with diverse expertise, capable of driving innovation and excellence in the agro business.

THREATS:

Climate Change

Unpredictable weather patterns and climate change pose significant risks to agricultural productivity, potentially affecting crop yields and quality.

Market Volatility

Fluctuations in market prices for agricultural products can impact profitability, necessitating effective risk management strategies.

Regulatory Challenges

The agro sector is subject to stringent regulations and compliance requirements, which can pose operational challenges and increase costs.

Pest and Disease Outbreaks

The agro sector is vulnerable to pest infestations and disease outbreaks, which can severely impact crop production and quality.

RISKS AND CONCERNS:

Supply Chain Disruptions

Disruptions in the supply chain, whether due to logistical challenges, transportation issues, or geopolitical factors, can impact the timely delivery of products.

Resource Scarcity

Limited availability of key resources such as water and arable land can constrain agricultural activities, necessitating efficient resource management practices.

Labor Issues

Dependence on seasonal labor and potential labor shortages can affect agricultural operations, highlighting the need for mechanization and automation.

Financial Risks

Investments in the agro sector involve significant financial outlays, and any adverse market conditions or operational setbacks can impact financial stability.

Based on all these factors, our transition to an agro-based model is a strategic move aimed at capitalizing on emerging opportunities in the agro sector. While there are inherent risks and challenges, our strengths and strategic initiatives position us well to navigate these effectively. With a focus on innovation, sustainability, and growth, we are poised to become a major player in the Indian agro sector.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Details of financial performance of the Company is given below:

PARTICULARS	2023-24	2022-23
Revenue from Operations	13,04,93,425	16,63,10,168
Other Income	-	-
Total	13,04,93,425	16,63,10,168
Profit Before Interest, Tax & Depreciation	92,82,506	1,05,71,672
Less: Financial cost	1,09,941	3,00,428
Less: Depreciation	89,28,557	96,71,750
Profit before Tax	4,63,890	5,99,494
Less: Current Tax	2 ,50,000	1,99,650
Less: Deferred Tax Asset / (Liability)	(1,48,307)	(78,637)
Profit after Tax	3,62,197	4,78,481

During the year the Company has generated revenue from operations of Rs. 13,04,93,425/- (including other income) and earned net profit after tax Rs. 3,62,197/- as compared with the corresponding figures in the previous year of Rs. 16,63,10,168/- and Rs. 4,78,481/- respectively. The total revenue is decreased by Rs. 3,58,16,744/- as compared with last year as well as net profit after tax also decreased by Rs. 1,16,285/- as compared with last year.

Key Financial ratios:

The Key Financial ratios are as per below table:

PARTICULARS	2023-24	2022-23
Debtors Turnover ratio	0.25	0.31
Inventory Turnover ratio	4.88	6.18
Interest Coverage ratio	86.43	35.19
Current ratio	3.15	2.90
Debt Equity Ratio	0.38	0.38
Operating Profit margin	0.07	0.06
Net Profit margin	0.00	0.00
Return on networth	0.00	0.00

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

An appropriate and adequate system of internal control exists in your company to ensure that all assets are safeguarded and protected against loss or from misuse or disposition, and that the transactions are authorized, recorded and reported suitably. Internal control systems are ensuring effectiveness of operations, accuracy and promptness of financial reporting and observance with laws & regulations.

The internal control is supplemented on an ongoing basis, by an extensive program of internal audit being implemented throughout the period. The internal audit reports along with management comments thereon are review by the Board. Implementations of the suggestions are also monitored by the Board. The internal control is designed to ensure that the financial and other records of the company are reliable for preparing financial statements and other data, and for maintaining accountability of assets.

HUMAN RESOURCES:

At CRP our HR philosophy is centered on empowerment with a strong sense of respect. In this direction our organization constantly encourages and supports freedom of ideas and enterprise. We encourage employees to:

Develop relationships that celebrate diverse ideas, and perspectives.

Have a sense of enterprise with rewards for results

Celebrate achievements and reward for superior performance

Provide appropriate working conditions and resources to enable people to do their work.

Respect co-workers irrespective of nature of work and responsibilities

DISCLOSURE OF ACCOUNTING TREATMENT

The Companys board of directors are responsible for the matters stated in section134 (5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting standards specified under section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities;

In preparing the financial statements, management is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The board of directors are also responsible for overseeing the Companys financial reporting process.

CORPORATE GOVERNANCE REPORT:

Company is not required to submit the Corporate Governance Report with this Annual Report. However, keeping in view the objective of encouraging the use of better practices, your Company has decided voluntarily to adopt and disseminate disclosure of Corporate Governance which not only serve as a benchmark for the corporate sector but also help the Company in achieving the highest standard of Corporate Governance.

CAUTIONARY STATEMENT:

Statement in this Management Discussion and Analysis Report, Describing the Companys Objectives, estimates and expectations may constitute Forward Looking Statements within the Meaning of applicable laws or regulations. Actual results might differ materially from those either expressed or implied.