<dhhead> MANAGEMENT DISCUSSION AND ANALYSIS REPORT
</dhhead>
1 . Economic overview
1. 1 Global
Global economic growth slowed down to 3.4% in 2022 as per
International Monetary Fund (World Economic Outlook Apr 2023) compared to 6.2% in 2021. A
gradual recovery posts the pandemic was beginning to take shape with unwinding of supply
chain disruptions, however, the Russia-Ukraine conflict resulted in inflationary pressure
and slowed the pace of recovery.
1.2 India Foreign Trade policy 2023
In a departure from tradition, India’s Foreign Trade Policy
(FTP) 2023 will not have a five-year target date. The policy will instead be long-term and
dynamic, as the government will make amendments as necessary.
The goal is to reach US$2 trillion exports by 2030 by shifting
from an incentive to remission and entitlement-based regime.
India is expected to end the fiscal year 2022-23 with a total of
US$760-770 billion worth exports, an improvement over the FY 2022 figure of US$676
billion. This was achieved despite various global headwinds that have disrupted supply
chains,slowed export demand, and put pressure on trade shipments. (Source: Ministry of
trade and commerce)
1.2 India
The agriculture sector is the largest source of livelihood in
India. The country is one of the largest producers of agriculture and food products in the
world. In 2022-23, India’s agriculture sector growth rate was estimated to be at 3.5%
and it was 3.0% in 2021-22. The country produces many crops and food grains such as rice,
wheat, pulses, oilseeds, coffee, jute, sugarcane, tea, tobacco, groundnuts, dairy
products, fruits, etc.
The largest importers of India’s agricultural products are
Bangladesh, UAE, USA, Vietnam, Saudi Arabia, Nepal, Malaysia, and Indonesia. The other
importing countries are Iran, Egypt, Iraq, and China. During 2021-22, Bangladesh was the
largest importer of Indian agricultural products at US$ 2.83 billion with a share of
11.46% of the total exports. Bangladesh is the major importer of Agri & allied
products at US$ 3.8 billion followed by UAE at US$ 2.3 billion. USA and China are major
importers of India’s marine products.
1.3 Total Import
India imports Edible Fruit and Nuts; Peel or Citrus Fruit or
Melons. Amounting to Rs. 3,459,826.02I(In lakhs) approx. constitutes i.e., 0.6034 percent
of total imports of the country.
(Source: Ministry of trade and commerce)
1.3 Outlook
According to the International Monetary Fund, Indian economy is
projected to deliver robust growth of 5.9% for 2023, highest amongst the emerging
economies, driven by strong domestic demand and healthy consumption growth supported by an
improvement in labor market conditions, increasing consumer confidence, an expected
recovery in rural demand and higher purchasing power with moderating of inflation. In the
Union Budget for FY2023-24, the government announced a 33% increase in capex allocation to
INR 10 trillion, which is expected to boost private investments. The Budget has also
targeted a lower fiscal deficit in FY2023-24 at 5.9% and the government has committed to
bring it down to below 4.5% by FY 2025-26.
2. Description of our Business and Operations
Growington Ventures India Limited (Previously known as
VMV Holidays Ltd.) marked the completion of 12 years since the date of its incorporation
i.e August 03,2010, under Companies Act, 1956 having its registered office in Navi Mumbai,
State of Maharashtra. During the year the Company has diversified its main business
activities towards trading in import and exports of fruits and we focused to expand the
base of agro-products to spices etc. This will give us more verticals to service our
valued clients and improve market hold. We will provide these products on worldwide basis
and aim to emerge as a global import -export trader. We focused on covering the maximum
possible locations by expanding our network of our own Office and agents.
We get associated with agents by entering into agency agreements
with fix terms to have limited cost and better revenue for handling our import and export
operations at India, Indian Sub-continent, South Africa, Turkey, Gulf, Upper Gulf, South
East Asia like Vietnam and Thailand and Far East etc. so that we have worldwide coverage
in cost effective manner. The Company constantly make an effort to add more value to our
products and services, thereby providing ultimate customer satisfaction.
The brief road map for activities undertaken by the company is
illustrated below:
? Identification of suppliers in with capacity to supply large
volume of generic products at competitive prices.
? Negotiating the terms of sale and delivery of products. ?
Financing and assurance of payment to the supplier. ? Managing logistics and transport.
? Distribution and sale of the products through its network.
As the economy, consumer and channel landscapes rapidly evolve,
we continue to be agile to leverage our strengths, capture opportunities and navigate
through the challenges. Our strategy is constantly evolving in line with the trends and
forces shaping our markets and impacting our multi-stakeholders. We remain committed to
delivering growth.
3. Opportunities and Threats
The Company bears the normal risk in terms of inherent business
risk in the kind of business the company is into. The Board of the company has taken a
balanced approach for investing in these activities and evaluating the potential as well
as the risk to return on capital.
4. Industry & Business Outlook
A gradual recovery posts the pandemic was beginning to take
shape with unwinding of supply chain disruptions, however, the Russia-Ukraine conflict
resulted in inflationary pressure and slowed the pace of recovery. Your Management is
evaluating various business opportunities and evaluating the potential as well as the risk
to return on capital. In the backdrop of a challenging operating environment in this
fiscal, we dynamically managed our business to deliver strong bottom-line performance and
made significant progress on our strategic priorities. We will continue to take approach
in financial year 2022-23 where operating environment is expected to remain challenging
with further input cost inflation and market growth.
Our strategic
clarity, the strength of ourbrands, our execution prowess, agility and adaptability will
continue to hold us in good stead.
5. Risks and Concern
Company has a Risk Management Committee to look after the risk
related matters of the Company. Risk Committee meetings are held to address the risk
issues relating to various businesses and support areas and monitor critical risk factors
in order to effectively address them. Risk Management limits on foreign exchange exposure
and credit limits for counter parties are set and reviewed periodically. Your Company
considers reviewing current practices on risk management initiativesto strengthen the risk
management frame work.
6. Internal Control System and their Adequacy
Internal Control Systems are embedded in all processes across
all functions in your Company. These systems are being reviewed regularly and whenever
necessary, they are modified or redesigned to ensure better efficiency, effectiveness and
improved controls. The application systems for individual businesses are backed by an
integrated Accounting System. These integrated systems form part of the overall control
environment. Process and systems are subject to Internal Audit through an annual internal
audit plan. These are further supported by the Statutory Auditors who validate that the
financial reporting is true and fair. The results of all audits are discussed with the
Senior Management and reviewed by the Audit Committee. The Audit Committee meetings are
held every quarter.
7. FINANCIAL PERFORMANCE
Our revenue increased billed by higher volumes and higher
pricing. The EBITDA increased during the year by 40.08 times. PBT for the year was
increased by 48.12 times from a year ago, on account of higher profitability.
Particulars |
FY 2023 (In Lakhs) |
FY 2022 (in Lakhs) |
Total Revenue |
2056.31 |
165.90 |
Total Expenses |
(1885.49) |
style=width:98.65pt;padding:0in 5.4pt 0in 5.4pt> (162.35) |
EBITA |
188.46 |
4.61 |
Profit Before Tax |
170.82 |
3.55 |
Profit after Tax |
125.88 |
(2.80) |
FINANCIAL RATIOS:
Particulars |
FY2023 |
FY 2022 |
Current Ratio |
4.41 |
62.88 |
Debt Equity Ratio |
NA |
NA |
Return on Equity Ratio |
0.097 |
0.0038 |
Inventory turnover Ratio |
NA |
NA |
Trade Receivable turnover Ratio |
5.37 |
4.33 |
Trade payable Turnover Ratio |
7.65 |
4.24 |
Net Capital Turnover |
1.53 |
0.17 |
Net Profit Ratio |
0.06 |
(0.02) |
Return on Capital Employed |
0.0989 |
0.0041 |
8. HUMAN RESOURCES
The strength of any Company lies in the competencies and skill
of its employees. Human Resources in Company strive to enable the organization to achieve
its objectives by constantly focusing the business needs. This creates a need for
constantly evolving and stimulating the systems and processes in the context of
organizational culture. These are challenging times, and to retain a competitive edge, a
company must direct individual accomplishment toward organizational objectives. The
Company has a healthy mix of senior and junior team members which creates a good skilled
and trained work force working towards success of the Company. Peaceful and cordial
relations continue with the employees. The Company strives to promote an open culture and
provide a vibrant work environment to its employees. For constant skill and knowledge up
gradation the Company imparts training to all the employees based on individual needs and
also encourages them to attend external seminar and workshops.
9. INFORMATION TECHNOLOGY
Our company constantly upgrades its technology both in terms of
hardware and software. In requirement of SEBI Circular SEBI/CIR/CFD/DCR1/CIR/P/2020/181
dated September 23, 2020 the company has invested in implementing SDD software system as
required under SEBI (SAST) Regulations, 2011. Moreover, we have invested in installing a
good management information system for the management to get timely information for
decision making.
10. CAUTIONARY STATEMENT
Statement in Management Discussion & Analysis describing the
Company’s objectives, projections, estimates, expectations may be “forwarded
looking statement” within the meaning of applicable securities laws and regulations.
Actual results could differ materially from those expressed or implied.
Important factors that could make difference to the Company’s
operation includes economic conditions affecting the demand and/or price conditions in the
domestic and overseas markets in which the Company operates,changes in Government
regulations, tax laws and other states and other incidental factors.
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