empyrean cashews ltd share price Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The Company is into the business of processing, selling and trading of dry fruits and nuts. The key issues of the Management Discussion and Analysis are given hereunder:

Industry Structure and Development

Current market is characterized by inflationary pressure in fast moving consumer goods (FMCG). Input cost inflation was the challenge and it was aggregated by the recent global events like Ukraine war. Indian economy has seen robust consumption especially in packaged food segments. Nuts and dried fruit industry has been growing continuously in recent times and this year was not exception. Post covid surge in preference to have healthy foods has continued and rather consolidated.

Discussion on financial performance with respect to operational performance

Krishival Foods Limited (formerly known as Empyrean Cashews Limited) was originally incorporated in 2014 and has commenced operations in same year under the name and style of the brand "Krishival". Our Company is engaged in processing nuts and dried fruits into finished kernels in different flavours.

Segment wise or product-wise performance

The Company is into single reportable segment only.

Outlook

Krishival Foods Limited (formerly known as Empyrean Cashews Limited) remains confident of the long-term growth prospects & opportunities ahead of it in its business.

Internal control system and adequacy

The system of internal control has been established to provide reasonable assurance of safeguarding assets, maintenance of proper accounting records in compliance with applicable Laws and Regulations to ensure reliability of financial statements and reports. The Statutory Auditors and the Audit Committee review all financial statements and ensure adequacy of internal control systems.

Opportunities and Threats

India has commence journey towards per capita income from USD 2600 USD 5000. Globally there is huge jump in discretionary spending in this period. India is on the cusp of new consumption boom from aspirational middle class. This augurs well for nuts and dried fruit segment. Company has been expanding its reach in tier 2 and tier 3 towns across India. The brand ‘Krishival has been presence in more than 100 towns and places across India. The company will keep expanding its presence across India. The epidemic like Covid-19 and external security situation like Ukraine war can be attributed as major threats.

Risks Management

Risk evaluation and management of risk is an ongoing process in the company.

Human Resources

Since your Company is in to the business of processing, selling and trading of dry fruits and nuts, the criticality of talented man-power and their retention needs no emphasis. Your company is in the process of working out a comprehensive plan to attract, motivate and retain highly skilled and technically competent man-power.

Details of Significant Changes

- Debtors Turnover: 29.62

- Inventory Turnover: 3.84

- Interest Coverage Ratio: 10.21

- Current Ratio: 12.89

- Debt Equity Ratio: 0.15

- Operating Profit Margin: 14.61%

- Net Profit/Loss Margin: 10%

Details of change in Return on Net Worth as compared to immediately previous financial year along with the detailed explanation thereof

-Return on networth FY 2019-20: 3.51%

FY 2020-21: 3.43%

FY 2021-22: 8.04%

Cautionary Statement

Statements in the 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. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the companys operations include economic conditions affecting demand/supply and prices, conditions in the domestic and overseas markets in which the company operates/ going to operate, changes in government regulations, tax laws and other statutes and other incidental factors.

	For and on Behalf of the Board of Directors of
	Krishival Foods Limited
	(Formerly known as Empyrean Cashews Limited)
Aparna Morale Bangar	Nana Mhaske	Anant Kulkarni
Chairperson & MD	Director & CEO	Director & CFO
DIN: 05332039	DIN: 01911731	DIN: 01887356
Place: Mumbai
Date: June 24, 2023