Datiware Maritime Infra Ltd Management Discussions

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Datiware Maritime Infra Ltd Share Price Management Discussions

This section of Annual Report has been included in adherence to the spirit enunciated in the code of Corporate Governance approved by the Securities and Exchange Board of India. Though, utmost care has been taken to ensure that the opinions expressed by the Management herein contain its perceptions on most of the important trends having a material impact on the Companys operations, no representation is made that the following presents an exhaustive coverage on and of all issues related to the same. Further, the discussion following herein reflects the perceptions on major issues as on date and the opinions expressed here are subject to change without notice. The Company undertakes no obligation to publicly update or revise any of the opinions or statements expressed in this report, consequent to new information, future event, or otherwise.

1) Industry Structure and Developments

In 2022, Food & Agriculture Organization ("FAO") of United Nations, realizing the prevalence of moderate raising food insecurity exacerbated by COVID-19, has identified 17 Sustainable Development Goals (SDGs) and their related targets and indicators, central to the achievement of inclusive, sustainable economic growth that encompasses environmental, and economic and social concerns. “The Sustainable Development Goals and Fisheries and Aquaculture” play a significant role in mitigating the global food shortage

The Fisheries & Aquaculture Sector are increasingly recognized for their essential contribution to global food security and nutrition in the 21st Century. Further, expansion of this contribution requires the acceleration of transformative changes in policy, management, innovation and investment to achieve sustainable and equitable global Fisheries and Aquaculture.

The Shrimp Feed consumption in India decreased to 11 Lakhs MTs in Financial year 2022-23 as compared to 12 Lakhs MTs in Financial year 2022. The forecast is that the consumption would further decrease by about 10%-15% in Financial year 2023-24.

Global shipbuilding market is valued at more than $200 Bn comprising Naval ships, Commercial ships and recreational vessels. The Military ship market is poised to be a $907 Bn worth cumulative industry by 2027 with demand driven primarily by Asia Pacific, eastern Europe and sub-Saharan African countries. The global naval shipbuilding market is being driven by international events and developments such as growing tensions in the Asia-Pacific region that have already resulted in an increased emphasis on naval modernization programs and a resurgence of submarine inventory proliferation by countries in the region as well as NATO and the United States. Market growth is expected, also given the need to replace older vessels in the naval fleet of major economies and the increase in the level of sophistication in combat technology. The global naval shipbuilding market would peak during the first half of this decade, driven by demand for both surface combatants and submarines. Globally, the average age of warships is as high as twenty-five (25) years and around 180 procurement programs are under execution in various countries .

2) Opportunities and Threats

The global seafood market has been witnessing a continuous uptick in recent years riding on recognition of its benefits to health. The growing awareness of the health benefits of seafood, with its nutritional and protein content, presents a favorable environment for increased consumption.

The aqua culture activity is dependent on climatic conditions prevailing during season to season, which is unpredictable. Natural calamities like floods, cyclones, during the culture season can have serious impact on the prospects of successful culture. Inspite of technical advancement and development of Specific Pathogen Free (SPF) seed, the possibilities of the shrimps getting affected by virus and diseases cannot be ruled out.

So far as Shipyard activity is concerned Acquisition plan of Indian Navy and Indian Coast Guard aimed at significant Expansion of fleet size . Competition from Private and Public Shipyards is major threat to shipayard acivity

3) Segment-wise or product-wise performance

Particulars

2022-23 2021-22
(Audited) (Audited)

I. Segment Revenue

(a) Segment A (Fishery)

93.72 209.13

(b) Segment B (Shipyard)

0.00 0.00

Net sales/income From Operations

93.72 209.13

2 Segment Results (Profit)(?)/ Loss (-) before tax and interest from Each segment)

(a) Segment A (Fishery)

-35.37 -27.31

(b) Segment B (Shipyard)

-1.23 -5.35

Total

-36.60 -32.66

Less: i) Interest**

-46.87 -43.51

ii) Other Un-allocable Expenditure net off

-19.57 -24.45

(iii) Un-allocable income Total Profit Before Tax

Total

-103.04 -100.62

3 Capital Employed

Segment Assets

(a) Segment A (Fishery)

111.25 158.25

(b) Segment B (Shipyard)

84.77 88.26

(c) Unallocated

462.89 443.24

Segment Assets Total

658.91 689.75

Segment Liabilities

(a) Segment A (Fishery)

82.79 96.90

(b) Segment B (Shipyard)

7.08 9.23

(c) Unallocated

676.46 614.75

Segment Liabilities Total

766.33 720.88

4) Outlook Threat from the virus is major concern hence we are going ahead slowly with aquaculture operations. We are actively scouting new business for shipyard activities

5) Risks and concerns Change in government policies, COVID Pandemic and rising labour cost can have adverse effect the business of the company.

6) Internal control systems and their adequacy The Companys Internal Financial Controls encompass policies and procedures adopted by the Board for ensuring the orderly and efficient conduct of business, including adherence to its policies, safeguarding of its assets, prevention and detection of frauds and errors, the accuracy and completeness of accounting records and the timely preparation of reliable financial information. Appropriate review and control mechanisms are built in place to ensure that such control systems are adequate and are operating effectively.

The systems/frameworks include proper delegation of authority, operating philosophies, policies and procedures, effective IT systems aligned to business requirements, an Internal Audit framework, a comprehensive Code of Conduct & Business Ethics framework, a Risk Management framework and adequate segregation of duties to ensure an acceptable level of risk. Documented Standard Operating Procedures are in place for all business processes. Key controls are tested to assure that these are operating effectively.

7) Discussion on financial performance with respect to operational performance During the year under review (2022-23) the company has earned Total Income of Rs. 97.46 Lakhs as against Rs. 212.06 Lakhs in previous year. Further Company has incurred net loss of Rs. 103.04 as against loss of. Rs. 100.61 Lakhs in previous year. In view of the no orders in maritime infrastructure no sales has been made by Maritime Infrastructure Division.

So far as aquaculture business is concerned Company has revamped 12 Numbers of ponds, deepen water channel, purchased a 250kva electricity connection, built pond gates, done new cabling and electric panels, labour rooms and purchased capital equipment like aerators, and pumps. However presently we are facing problem of virus infection thereby the we are going slowly with the production of aquaculture which led to lower turnover

8) Developments in Human Resources / Industrial relations Aquaculture and shipyard business needs qualified and trained staff for these operations. In this direction, the Company imparts expert training in the respective field and develops Human Resource capabilities. During the year under review Company has not hired new employees. As on 31.03.2023 Company has 6 employees. Once operations begin adequate manpower will be employed.

9) Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations, therefore, including:

Sr no.

Particulars

2021-22 2021- 22

Explanation

i.

Debtors Turnover

40.95 0.61

Company was inoperative since last several years and restarted its activities 2019-20. Further there are no orders for shipyard business.

ii.

Inventory Turnover

4.58 3.98

iii.

Interest Coverage Ratio

-0.64 -0.50

iv.

Current Ratio

0.84 1.82

v.

Debt Equity Ratio

-6.56 -20.88

Threat of infection led to decrease in turnover of aquaculture activity.

i.

Operating Profit Margin

-37% -17%

ii.

Net Profit Margin

These are main reason for significant changes in financial ratios

-110% -48%

10) Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof : In view of the losses there has been no returns on net worth

11) Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. There is no certainty that these forward looking statements will be realized, although care has been taken in making these assumptions. There are no obligation to publicly update any forward looking statements, whether as a result of new information, future events or otherwise.

DATIWARE MARITIME INFRA LIMITED

Jayashree Patil

Ashok Patil

Managing Director

Director

(DIN 02419826)

(DIN 00766354)

Place: Pune

Date: 02-09-2023

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